Document and entity information
Document and entity information Document - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Feb. 25, 2019 | |
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-K | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Public Float | $ 771,615,180 | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 24,640,927 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 11,413 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments: | |||
Fixed maturities - available for sale, at fair value (amortized cost: 2018 - $6,856,277; 2017 - $6,757,250) | $ 7,033,045 | $ 7,291,967 | |
Equity securities at fair value (cost: 2018 - $93,564; 2017 - $96,715) | 92,857 | 104,145 | |
Mortgage loans | 1,039,829 | 971,812 | |
Real estate | 1,543 | 1,543 | |
Policy loans | 197,366 | 191,398 | |
Short-term investments | 15,713 | 17,007 | |
Other investments | 33,765 | 42,371 | |
Total investments | 8,414,118 | 8,620,243 | |
Cash and cash equivalents | 19,035 | 52,696 | |
Securities and indebtedness of related parties | 60,962 | 47,823 | |
Accrued investment income | 74,524 | 76,468 | |
Amounts receivable from affiliates | 3,812 | 3,561 | |
Reinsurance recoverable | 102,386 | 108,948 | |
Deferred acquisition costs | 418,802 | 302,611 | |
Value of insurance in force acquired | 10,385 | 4,560 | |
Current income taxes recoverable | 4,807 | 6,764 | |
Other assets | 163,518 | 177,764 | |
Assets held in separate accounts | 561,281 | 651,963 | |
Total assets | [1] | 9,833,630 | 10,053,401 |
Future policy benefits: | |||
Interest sensitive products | 5,403,125 | 5,299,961 | |
Traditional life insurance and accident and health products | 1,802,346 | 1,750,504 | |
Other policy claims and benefits | 51,298 | 44,475 | |
Supplementary contracts without life contingencies | 303,627 | 322,630 | |
Amounts payable to affiliates | 260,252 | 267,023 | |
Amounts payable to affiliates | 1,461 | 1,164 | |
Long-term debt payable to non-affiliates | 97,000 | 97,000 | |
Deferred income taxes | 75,449 | 130,425 | |
Other liabilities | 93,532 | 111,131 | |
Liabilities related to separate accounts | 561,281 | 651,963 | |
Total liabilities | 8,649,371 | 8,676,276 | |
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 | 91,318 | 284,983 | |
Retained earnings | 937,097 | 935,423 | |
Total FBL Financial Group, Inc. stockholders’ equity | 1,184,139 | 1,377,067 | |
Noncontrolling interest | 120 | 58 | |
Total stockholders’ equity | 1,184,259 | 1,377,125 | |
Total liabilities and stockholders’ equity | 9,833,630 | 10,053,401 | |
Common Class A | |||
FBL Financial Group, Inc. stockholders' equity: | |||
Common stock, without par value | 152,652 | 153,589 | |
Common Class B | |||
FBL Financial Group, Inc. stockholders' equity: | |||
Common stock, without par value | $ 72 | $ 72 | |
[1] | Prior period amounts have been adjusted to reflect the accounting change for LIHTC investments. See Note 1 to our consolidated financial statements for additional information. |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parenthetical disclosures - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | $ 6,856,277 | $ 6,757,250 | |
Equity Securities, Cost | $ 93,564 | $ 96,715 | |
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 stock, shares outstanding | 24,718,815 | 24,930,526 | |
Common Class A | |||
Common stock, shares authorized | 88,500,000 | 88,500,000 | |
Common Stock, Shares, Issued | 24,707,402 | 24,919,113 | |
Common stock, shares outstanding | 24,707,402 | 24,919,113 | |
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 | [1] | 11,413 | 11,413 |
Parent Company [Member] | |||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | $ 24,936 | $ 29,210 | |
Equity Securities, Cost | $ 3,764 | $ 2,942 | |
[1] | There is no established market for our Class B common stock, although it is convertible upon demand of the holder into Class A common stock on a share-for-share basis. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenues: | ||||
Interest sensitive product charges | $ 122,789 | $ 112,936 | $ 111,928 | |
Traditional life insurance premiums | 198,312 | 195,330 | 196,914 | |
Net investment income | 394,618 | 415,199 | 404,170 | |
Net realized capital gains on sales of investments | (7,276) | 599 | 3,106 | |
Total other-than-temporary impairment losses | (5,072) | (1,553) | (7,320) | |
Non-credit portion in other comprehensive income/loss | 74 | 0 | 2,451 | |
Net impairment losses recognized in earnings | (4,998) | (1,553) | (4,869) | |
Other income | 16,181 | 15,400 | 15,165 | |
Total revenues | 719,626 | 737,911 | 726,414 | |
Benefits and expenses: | ||||
Interest sensitive product benefits | 253,753 | 251,878 | 238,586 | |
Traditional life insurance benefits | 175,209 | 173,023 | 177,682 | |
Policyholder dividends | 10,130 | 10,140 | 10,574 | |
Underwriting, acquisition and insurance expenses | 152,055 | 134,878 | 135,967 | |
Interest expense | 4,851 | 4,850 | 4,850 | |
Other expenses | 22,595 | 18,382 | 16,966 | |
Total benefits and expenses | 618,593 | 593,151 | 584,625 | |
Income from continuing operations before equity income, income taxes and noncontrolling interest | 101,033 | 144,760 | 141,789 | |
Income taxes | (11,650) | 39,983 | (41,220) | |
Equity income, net of related income taxes | 4,439 | 2,590 | 2,269 | |
Net income from continuing operations | 93,822 | 187,333 | 102,838 | |
Net loss (income) attributable to noncontrolling interest | (29) | (28) | 4 | |
Net income attributable to FBL Financial Group, Inc. | [1] | $ 93,793 | $ 187,305 | $ 102,842 |
Earnings per common share: | ||||
Earnings per common share | $ 3.76 | $ 7.47 | $ 4.11 | |
Earnings per common share - assuming dilution: | ||||
Earnings per common share - assuming dilution | $ 3.75 | $ 7.47 | $ 4.10 | |
[1] | Prior period amounts have been adjusted to reflect the accounting change for LIHTC investments. See Note 1 to our consolidated financial statements for additional information. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Net income | $ 93,822 | $ 187,333 | $ 102,838 | |||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Change in net unrealized investment gains/losses | [1] | (190,114) | 88,685 | 38,077 | ||
Non-credit impairment losses | (58) | [1] | 0 | (1,476) | [1] | |
Change in funded status of the other postretirement benefit plans | [1] | 1,987 | (1,483) | (1,578) | ||
Total other comprehensive income, net of tax | [1] | (188,185) | 87,202 | 35,023 | ||
Total comprehensive income, net of tax | (94,363) | 274,535 | 137,861 | |||
Comprehensive income (loss) attributable to noncontrolling interest | (29) | (28) | 4 | |||
Comprehensive income attributable to FBL Financial Group, Inc. | $ (94,392) | $ 274,507 | $ 137,865 | |||
[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 Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common stocks | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | ||
Balance at beginning of period at Dec. 31, 2015 | $ 1,134,474 | $ 3,000 | $ 149,320 | $ 114,532 | $ 867,574 | $ 48 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative Effect on Retained Earnings, Net of Tax | Accounting Standards Update 2014-01 [Member] | (322) | (322) | ||||||
Net income | 102,838 | 102,842 | (4) | |||||
Other comprehensive income | 35,023 | [1] | 35,023 | |||||
Issuance of common stock under compensation plans | 3,718 | 3,718 | ||||||
Purchase of common stock | (586) | (63) | (523) | |||||
Dividends on preferred stock | (150) | (150) | ||||||
Dividends on common stock | (91,452) | (91,452) | ||||||
Noncontrolling Interest, Period Increase (Decrease) | 12 | |||||||
Receipts related to noncontrolling interest | 12 | |||||||
Balance at end of period at Dec. 31, 2016 | 1,183,555 | 3,000 | 152,975 | 149,555 | 877,969 | 56 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 187,333 | 187,305 | 28 | |||||
Other comprehensive income | 87,202 | [1] | 87,202 | |||||
Reclassification related to the Tax Act | 0 | 48,226 | [2] | (48,226) | ||||
Issuance of common stock under compensation plans | 708 | 708 | ||||||
Purchase of common stock | (246) | (22) | (224) | |||||
Dividends on preferred stock | (150) | (150) | ||||||
Dividends on common stock | (81,251) | (81,251) | ||||||
Noncontrolling Interest, Period Increase (Decrease) | (26) | |||||||
Disbursements related to noncontrolling interest | (26) | |||||||
Balance at end of period at Dec. 31, 2017 | 1,377,125 | 3,000 | 153,661 | 284,983 | 935,423 | 58 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative Effect on Retained Earnings, Net of Tax | Accounting Standards Update 2016-01 [Member] | 0 | (5,480) | 5,480 | |||||
Net income | 93,822 | 93,793 | 29 | |||||
Other comprehensive income | (188,185) | [1] | (188,185) | |||||
Issuance of common stock under compensation plans | 499 | 499 | ||||||
Purchase of common stock | (15,907) | (1,436) | (14,471) | |||||
Dividends on preferred stock | (150) | (150) | ||||||
Dividends on common stock | (82,978) | (82,978) | ||||||
Noncontrolling Interest, Period Increase (Decrease) | 33 | |||||||
Receipts related to noncontrolling interest | 33 | |||||||
Balance at end of period at Dec. 31, 2018 | $ 1,184,259 | $ 3,000 | $ 152,724 | $ 91,318 | $ 937,097 | $ 120 | ||
[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. | |||||||
[2] | Reclassification of the initial impact of the remeasurement of deferred tax assets and liabilities upon enactment of the Tax Act. See discussion of this accounting change as discussed in Note 1. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||
Net income | $ 93,822 | $ 187,333 | $ 102,838 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Interest credited to account balances | 164,623 | 163,111 | 153,856 |
Charges for mortality, surrenders and administration | (120,944) | (112,682) | (111,792) |
Net realized losses on investments | 12,274 | 3,387 | 1,763 |
Change in fair value of derivatives | 7,162 | (8,007) | (828) |
Increase in liabilities for life insurance and other future policy benefits | 77,786 | 87,489 | 91,080 |
Deferral of acquisition costs | (47,771) | (44,409) | (42,553) |
Amortization of deferred acquisition costs and value of insurance in force | 36,371 | 25,016 | 30,898 |
Change in reinsurance recoverable | 4,081 | (5,097) | (1,392) |
Provision for deferred income taxes | (4,952) | (73,094) | 9,409 |
Other | 16,725 | 16,587 | 1,883 |
Net cash provided by operating activities | 239,177 | 239,634 | 235,162 |
Sales, maturities or repayments: | |||
Fixed maturities - available for sale | 590,106 | 619,627 | 539,657 |
Equity securities | 7,039 | 9,880 | 5,532 |
Mortgage loans | 69,208 | 62,285 | 81,425 |
Derivative instruments | 16,754 | 13,220 | 2,987 |
Policy loans | 36,720 | 36,330 | 35,458 |
Securities and indebtedness of related parties | 8,359 | 8,999 | 10,079 |
Other investments | 6,831 | 164 | 171 |
Real estate | 0 | 717 | 0 |
Acquisitions: | |||
Fixed maturities - available for sale | (705,250) | (690,013) | (829,184) |
Equity securities | (4,447) | (2,692) | (11,057) |
Mortgage loans | (139,836) | (217,409) | (160,005) |
Derivative instruments | (14,425) | (9,311) | (6,847) |
Policy loans | (42,688) | (39,474) | (37,928) |
Securities and indebtedness of related parties | (21,146) | (13,555) | (13,288) |
Other Investments | (7,891) | 0 | 0 |
Short-term investments, net change | 1,294 | (659) | 11,903 |
Purchases and disposals of property and equipment, net | (12,520) | (11,427) | (11,787) |
Net cash used in investing activities | (211,892) | (233,318) | (382,884) |
Financing activities | |||
Contract holder account deposits | 668,482 | 534,449 | 600,383 |
Contract holder account withdrawals | (631,181) | (440,581) | (344,664) |
Dividends paid | (83,128) | (81,401) | (91,602) |
Proceeds from the issuance of short-term debt | 27,000 | 0 | 0 |
Repayments of short-term debt | (27,000) | 0 | (15,000) |
Issuance (repurchase) of common stock, net | (15,152) | 356 | 1,840 |
Other financing activities | 33 | (26) | 858 |
Net cash provided by (used in) financing activities | (60,946) | 12,797 | 151,815 |
Increase (decrease) in cash and cash equivalents | (33,661) | 19,113 | 4,093 |
Cash and cash equivalents at beginning of year | 52,696 | 33,583 | 29,490 |
Cash and cash equivalents at end of year | 19,035 | 52,696 | 33,583 |
Supplemental disclosures of cash flow information | |||
Cash paid during the period for interest | (4,868) | (4,850) | (4,854) |
Cash paid during the period for income taxes | $ (3,005) | $ (16,347) | $ (20,894) |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Significant Accounting Policies Nature of Business FBL Financial Group, Inc. (we or the Company), majority owned by the Iowa Farm Bureau Federation (IFBF), operates predominantly in the life insurance industry through its principal subsidiary, Farm Bureau Life Insurance Company (Farm Bureau Life). Farm Bureau Life markets individual life insurance policies and annuity contracts to Farm Bureau members and other individuals and businesses in the Midwestern and Western sections of the United States through an exclusive agency force. Greenfields Life Insurance Company (Greenfields), a subsidiary of Farm Bureau Life, offers life and annuity products in the state of Colorado. Several subsidiaries support various functional areas of Farm Bureau Life and other affiliates by providing investment advisory, marketing and distribution, and leasing services. In addition, we manage two Farm Bureau affiliated property-casualty companies. Consolidation Our consolidated financial statements include the financial statements of the Company and its direct and indirect subsidiaries. All significant intercompany transactions have been eliminated. Voluntary Accounting Policy Change During 2018, we voluntarily changed our accounting policy for low income housing tax credit (LIHTC) investments from the equity method to the proportional amortization method. We believe the proportional amortization method is preferable because it better reflects the economics of an investment that is made for the primary purpose of receiving tax credits and other tax benefits and is consistent with the accounting method used by most life insurance companies who have disclosed their accounting policies for LIHTC investments. In addition to a change in the timing of the recognition of income or loss on LIHTC investments, there are also differences in how these investments are reported within our consolidated financial statements. The unamortized cost of the LIHTC investments is now reflected in the "Other asset" line instead of the "Securities and indebtedness of related parties" line on the consolidated balance sheets and income/expense from LIHTC investments is now reflected in the "Income taxes" line instead of the "Equity income" line on the consolidated statements of operations. As a result of this accounting policy change, the opening balance as of January 1, 2016 of retained earnings was reduced by $0.3 million , as shown on the consolidated statements of changes in stockholders’ equity. In addition, the following presents the effect of the change on financial statement line items for prior periods that were retrospectively adjusted: Consolidated Balance Sheet Impact December 31, 2017 As Originally Reported As Adjusted Effect of Change (Dollars in thousands) Assets Securities and indebtedness of related parties $ 130,240 $ 47,823 $ (82,417 ) Current income taxes recoverable 3,269 6,764 3,495 Other assets 112,054 177,764 65,710 Total assets $ (13,212 ) Liabilities and stockholders’ equity Deferred income taxes 131,912 130,425 $ (1,487 ) Retained earnings 947,148 935,423 (11,725 ) Total liabilities and stockholders’ equity $ (13,212 ) Consolidated Statements of Operations Impact Year ended December 31, 2017 Year ended December 31, 2016 As Originally Reported As Adjusted Effect of Change As Originally Reported As Adjusted Effect of Change (Dollars in thousands) Revenues: Net impairment loss recognized in earnings $ (3,986 ) $ (1,553 ) $ 2,433 $ (4,869 ) $ (4,869 ) $ — Income taxes 40,729 39,983 (746 ) (46,010 ) (41,220 ) 4,790 Equity income (loss), net of related income taxes 11,299 2,590 (8,709 ) 11,440 2,269 (9,171 ) Net income (loss) attributable to FBL Financial Group, Inc. $ (7,022 ) $ (4,381 ) Earnings (loss) per common share - basic and assuming dilution $ (0.28 ) $ (0.18 ) Net income would have been $0.8 million lower ($0.03 per basic and diluted share) for the year ended December 31, 2018 if the company had continued to record LIHTC investments using the equity method. Adoption of New Accounting Pronouncements Description Date of adoption Effect on our consolidated financial statements or other significant matters Standards adopted: Share-based compensation In March 2016, the Financial Accounting Standards Board (FASB) issued guidance that impacted the accounting for share-based compensation, 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. January 1, 2017 The guidance was adopted prospectively. Application of this guidance resulted in a federal income tax benefit of $0.2 million ($0.01 per basic and diluted common share) for the year ended December 31, 2018 and $0.6 million ($0.02 per basic and diluted common share) for the year ended December 31, 2017. Prior periods were not restated. Stockholders’ Equity In February 2018 the FASB issued guidance allowing a reclassification from accumulated other comprehensive income (AOCI) to retained earnings for stranded tax effects resulting from changes in the federal income tax rate due to enactment of the Tax Cuts and Jobs Act of 2017 on December 22, 2017 (Tax Act). Accounting guidance requires that deferred tax assets and liabilities, including those associated with components of AOCI, be remeasured during the period new tax laws are enacted, with any changes reflected as a component of income tax expense (benefit). Under the previous guidance, retained earnings would reflect the full amount of the change and AOCI would not be adjusted for the portion of the change related to its components, leaving the unadjusted change “stranded” in AOCI. The new guidance allows AOCI to be adjusted to reclassify these stranded tax effects to retained earnings. October 1, 2017 The new guidance was effective for 2018, with early adoption permitted for public companies during periods for which financial statements have not been issued. We adopted the new guidance in 2017, and have reported the reclassification in our Consolidated Statement of Stockholders’ Equity. The adjustment does not impact earnings, but rather is a reclassification of amounts between stockholders’ equity accounts. Description Date of adoption Effect on our consolidated financial statements or other significant matters Standards adopted continued: Financial instruments - recognition and measurement In January 2016, the FASB issued guidance that amended certain aspects of the recognition and measurement of financial instruments. The new guidance primarily affected the accounting for equity securities, which are now carried at fair value with valuation changes recognized in the statement of operations rather than as other comprehensive income. 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 were also revised under the new guidance. The new standard required the use of a modified retrospective method at adoption. January 1, 2018 Upon adoption, we reclassified $5.5 million of net unrealized investment gains, net of adjustments to deferred acquisition costs, interest sensitive policy reserves and income taxes, on our equity securities from AOCI to retained earnings as a cumulative effect adjustment. Application of this guidance resulted in a decrease to net income of $6.2 million ($0.25 per basic and diluted earnings per share) for the year ended December 31, 2018. Prior periods were not restated. Revenue recognition In May 2014, the FASB issued guidance that outlined a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. Insurance contract and investment related revenue, which make up the majority of our earnings, were specifically excluded from the scope of this guidance. The new guidance was 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 required 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. We had the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. January 1, 2018 Our revenues that fall under the scope of the new guidance primarily consist of the net commissions on insurance and investment products we broker for others. We have evaluated those contracts and concluded that there was no change in timing or measurement of revenues, as the historical accounting is consistent with the new guidance. Accordingly, there was no impact from adoption. Standards not yet adopted: Leases 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. January 1, 2019 Our most significant lease is for our home office building. Our other leases are primarily shorter term in nature, relating to additional office space and equipment. We anticipate adoption of this standard will result in an increase to both other assets and other liabilities. We will apply this standard prospectively, recognizing a cumulative effect adjustment, which we expect to be immaterial. Additionally, we do not expect there to be a significant difference in our pattern of lease expense recognition under this guidance. Description Date of adoption Effect on our consolidated financial statements or other significant matters Standards not yet adopted - continued: Financial Instruments - credit impairment 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 may 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. January 1, 2020 We are currently evaluating the impact of this new guidance on our consolidated financial statements. We believe the most significant impact upon adoption will be the establishment of an additional valuation allowance for our mortgage loan investments. We will apply this guidance using a modified retrospective approach by recording a cumulative effect adjustment to retained earnings as of the beginning of the year of adoption. Targeted improvements: long-duration contracts In August 2018, the FASB issued guidance that will change the accounting for long-duration insurance contracts. The new guidance impacts several facets of the accounting for such contracts including the accounting for future policy benefits associated with traditional non-participating and limited payment insurance contracts as well as for guaranteed minimum benefits and the amortization model used for deferred acquisition costs. Disclosures as well as presentation of financial results will also change under the new guidance. January 1, 2021 We are currently evaluating the impact of this guidance on our consolidated financial statements, but expect the impact to the timing of profit emergence for the impacted insurance contracts to be significant. Adoption of certain portions of the guidance may be applied on a modified retrospective basis and others on a full retrospective basis. Early adoption is allowed. Reclassifications In addition to reclassifications related to LIHTC investments discussed above, in 2018 we began reporting our holdings of Federal Home Loan Bank of Des Moines (FHLB) common stock, which we are required to hold as a member of the FHLB system, as other investments rather than equity securities as the stock is restricted in nature. The 2017 consolidated financial statements have been reclassified to conform to the current financial statement presentation. |
Significant Accounting Policies Investments [Text Block] | Investments Fixed Maturities and Equity Securities Fixed maturities are comprised of bonds and redeemable preferred stock and are designated as “available for sale.” Available-for-sale securities, with the exception of interest-only bonds, are reported at fair value and unrealized gains and losses on these securities are included directly in stockholders’ equity as a component of AOCI. The unrealized gains and losses, included in AOCI, are reduced by a provision for deferred income taxes and adjustments to deferred acquisition costs, value of insurance in force acquired, unearned revenue reserves and policyholder liabilities that would have been required as a charge or credit to income had such amounts been realized. Interest-only bonds are considered to have an embedded derivative feature. Accordingly, unrealized gains and losses relating to these securities are recorded as a component of net investment income in the consolidated statements of operations. Premiums and discounts for all fixed maturity securities are amortized/accreted into investment income over the life of the security using the effective interest method. Amortization/accrual of premiums and discounts on mortgage- and asset-backed securities incorporates prepayment assumptions to estimate the securities’ expected lives. Subsequent revisions in assumptions are recorded using the retrospective or prospective method. Under the retrospective method used for mortgage-backed and asset-backed securities of high credit quality (ratings equal to or greater than “AA” or an equivalent rating by a nationally recognized rating agency at the time of acquisition or that are backed by a U.S. agency), amortized cost of the security is adjusted to the amount that would have existed had the revised assumptions been in place at the date of acquisition. The adjustments to amortized cost are recorded as a charge or credit to net investment income. Under the prospective method, which is used for all other mortgage-backed and asset-backed securities, future cash flows are estimated and interest income is recognized going forward using the new internal rate of return. Beginning in 2018, equity securities, comprised of mutual funds and common and non-redeemable preferred stocks are reported at fair value with unrealized gains and losses included in the statement of operations. Prior to 2018, these securities were designated as “available for sale” and reported at fair value with the change in unrealized gains and losses included in AOCI. See the preceding table regarding new accounting pronouncements for further discussion of the accounting change. Mortgage Loans Mortgage loans are reported at cost adjusted for amortization of premiums, accrual of discounts and net of allowance for loan losses. If we determine that the value of any mortgage loan is impaired (i.e., when it is probable we will be unable to collect all amounts due according to the contractual terms of the loan agreement), the carrying value of the mortgage loan is reduced to its estimated value, which is based upon the present value of expected future cash flows from the loan, the estimated market price of the loan, or the fair value of the underlying collateral less estimated costs to sell. 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. Real Estate Our real estate is held for investment and consists of land reported at cost, net of allowance for losses. The carrying value of these assets is subject to regular review. For properties held for investment, if indicators of impairment are present and a property’s expected undiscounted cash flows are not sufficient to recover the property’s carrying value, an impairment loss is recognized and the property’s cost basis is reduced to fair value. No properties were held for investment with impairment charges as of December 31, 2018 or 2017 . Other Investments Policy loans are reported at unpaid principal balance. Short-term investments, which include investments with remaining maturities of one year or less, but greater than three months at the time of acquisition, are reported at cost adjusted for amortization of premiums and accrual of discounts. Other investments include common stock issued by the FHLB carried at the current redemption value; call options carried at fair value; a promissory note acquired in a sale of a partnership interest carried at the remaining basis of the partnership; and our ownership interest in aircraft acquired in a troubled debt restructuring carried at cost less accumulated depreciation. We have embedded derivatives associated with modified coinsurance contracts, which are included within reinsurance recoverable. These instruments are carried at fair value with changes reflected in net investment income. See Note 2 for more information regarding our derivative instruments. Securities and indebtedness of related parties include investments in corporations and partnerships over which we may exercise significant influence and those investments for which we use the equity method of accounting. These corporations and partnerships operate predominately in the investment company, real estate, broker/dealer and insurance industries. In applying the equity method, we record our share of income or loss reported by the equity investees. In accounting for these investments, we consistently use the most recent financial information available, which is generally for periods not more than three months prior to the ending date of the period for which we are reporting. For partnerships operating in the investment company industry, this income or loss includes changes in unrealized gains and losses in the partnerships’ investment portfolios. Accrued Investment Income We discontinue the accrual of investment income on invested assets when it is determined that it is probable that we will not collect the income. Realized Gains and Losses on Investments Realized gains and losses on sales of investments are determined on the basis of specific identification. The carrying values of all our investments are reviewed on an ongoing basis for credit deterioration. When our review indicates a decline in fair value for a fixed maturity security is an other-than-temporary impairment (OTTI) and we do not intend to sell or believe we will be required to sell the security before recovery of our amortized cost, a specific write down is charged to earnings for the credit loss and a specific charge is recognized in AOCI for the non-credit loss component. If we intend to sell or believe we will be required to sell a fixed maturity security before its recovery, the full amount of the impairment write down to fair value is charged to earnings. We monitor the financial condition and operations of the issuers of fixed maturities that could potentially have a credit impairment that is OTTI. In determining whether or not an unrealized loss is OTTI, we review factors such as: • historical operating trends; • business prospects; • status of the industry in which the issuer operates; • analyst ratings on the issuer and sector; • quality of management; • size of the unrealized loss; • level of current market interest rates compared to market interest rates when the security was purchased; and • length of time the security has been in an unrealized loss position. In order to determine the credit and non-credit impairment loss for fixed maturities, every quarter we estimate the future cash flows we expect to receive over the remaining life of the instrument as well as review our plans to hold or sell the instrument. Significant assumptions regarding the present value of expected cash flows for each security are used when an OTTI occurs and there is a non-credit portion of the unrealized loss that will not be recognized in earnings. Our assumptions for residential mortgage-backed securities, commercial mortgage-backed securities and other asset-backed securities include collateral pledged, guarantees, vintage, anticipated principal and interest payments, prepayments, default levels, severity assumptions, delinquency rates and the level of nonperforming assets for the remainder of the investments’ expected term. We use a single best estimate of cash flows approach and use the effective yield prior to the date of impairment to calculate the present value of cash flows. Our assumptions for corporate and other fixed maturities include anticipated principal and interest payments and an estimated recovery value, generally based on a percentage return of the current fair value. After an OTTI write down of fixed maturities with a credit-only impairment, the cost basis is not adjusted for subsequent recoveries in fair value. For fixed maturities for which we can reasonably estimate future cash flows after a write down, the discount or reduced premium recorded, based on the new cost basis, is amortized over the remaining life of the security. Amortization in this instance is computed using the prospective method and the current estimate of the amount and timing of future cash flows . Fair Values Fair values of fixed maturities are based on quoted market prices in active markets when available. Fair values of fixed maturities that are not actively traded are estimated using valuation methods that vary by asset class. Fair values of redeemable preferred stocks, equity securities and derivative investments are based on the latest quoted market prices, or for those items not readily marketable, generally at values that are representative of the fair values of comparable issues. Fair values for all securities are reviewed for reasonableness by considering overall market conditions and values for similar securities. See Note 3 for more information on our fair value policies, including assumptions and the amount of securities priced using the valuation models. Cash and Cash Equivalents For purposes of our consolidated statements of cash flows, we consider all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | Reinsurance Recoverable We use reinsurance to manage certain risks associated with our insurance operations. These reinsurance arrangements provide for greater diversification of business, allow management to control exposure to potential risks arising from large claims and provide additional capacity for growth. For business ceded to other companies, reinsurance recoverable includes the reinsurers’ share of policyholder liabilities, claims and expenses, net of amounts due the reinsurers for premiums. We monitor the financial condition of these reinsurers, establishing an allowance for uncollectible reinsurance recoverables as necessary. We have concluded that no such allowance was required at December 31, 2018 or 2017 . For business assumed from other companies, reinsurance recoverable includes premium receivable net of our share of benefits and expenses we owe to the ceding company. Fair values for the embedded derivatives in our modified coinsurance contracts are based on the difference between the fair value and the cost basis of the underlying investments. See Note 2 for more information regarding derivatives and Note 4 for additional details on our reinsurance agreements. Deferred Acquisition Costs and Value of Insurance in Force Acquired Deferred acquisition costs include certain costs of successfully acquiring new insurance business, including commissions and other expenses related to the production of new business, to the extent recoverable from future policy revenues and gross profits. Also included are premium bonuses and bonus interest credited to contracts during the first contract year only. The value of insurance in force acquired represents the cost assigned to insurance contracts when an insurance company is acquired. The initial value was determined by an actuarial study using expected future gross profits as a measurement of the net present value of the insurance acquired. Value of insurance in force acquired is being amortized on a fixed amortization schedule. For participating traditional life insurance and interest sensitive products, these costs are being amortized generally in proportion to expected gross margins or gross profits. That amortization is adjusted retrospectively through an unlocking process when estimates of current or future gross profits/margins (including the impact of investment gains and losses) to be realized from a group of products are revised. For nonparticipating traditional life products, these costs are amortized over the premium paying period of the related policies, in proportion to the ratio of annual premium revenues to total anticipated premium revenues. Such anticipated premium revenues are estimated using the same assumptions used for computing liabilities for future policy benefits. All insurance and investment contract modifications and replacements are reviewed to determine if the internal replacement results in a substantially changed contract. If so, the acquisition costs, sales inducements and unearned revenue associated with the new contract are deferred and amortized over the lifetime of the new contract. In addition, the existing deferred policy acquisition costs, sales inducement costs and unearned revenue balances associated with the replaced contract are written off. If an internal replacement results in a substantially unchanged contract, the acquisition costs, sales inducements and unearned revenue associated with the new contract are immediately recognized in the period incurred. In addition, the existing deferred policy acquisition costs, sales inducement costs or unearned revenue balance associated with the replaced contract is not written off, but instead is carried over to the new contract. Other Assets Other assets include property and equipment, primarily comprised of capitalized software costs and furniture and equipment, which are reported at cost less allowances for depreciation and amortization. We expense costs incurred in the preliminary stages of developing internal-use software as well as costs incurred post-implementation for maintenance. Capitalization of internal-use software costs occurs after management has authorized the project and it is probable that the software will be used as intended. Amortization of software costs begins after the software has been placed in production. Depreciation and amortization expense is computed primarily using the straight-line method over the estimated useful lives of the assets, which range from three to twenty years. Property and equipment had a carrying value of $38.5 million at December 31, 2018 and $35.8 million at December 31, 2017 , and accumulated depreciation and amortization of $79.2 million at December 31, 2018 and $78.7 million at December 31, 2017 . Depreciation and amortization expense for property and equipment was $9.9 million in 2018 and $8.7 million in 2017 and 2016 . Other assets at December 31, 2018 and 2017 , also includes goodwill of $9.9 million related to the excess of the amounts paid to acquire companies over the fair value of the net assets acquired. Goodwill is not amortized but is subject to annual impairment testing. We evaluate our goodwill balance by comparing the fair value of our reporting units to the carrying value of the goodwill. We conduct a qualitative impairment review at least annually as well as when indicators suggest an impairment may have occurred to determine if indicators of deterioration in the business would suggest its value has declined below the carrying value of goodwill. Such circumstances include changes in the competitive or overall economic environment or other business condition changes that may negatively impact the value of the underlying business. On a periodic basis, as well as in the event circumstances indicate the value of the business may have declined significantly, we will estimate the value of the business using discounted cash flow techniques. We believe this approach better approximates the fair value of our goodwill than a market capitalization approach. A number of significant assumptions and estimates are involved in the application of the discounted cash flow model to forecast operating cash flows, including future premiums, product lapses, investment yields and discount rate. Underlying assumptions are based on historical experience and our best estimates given information available at the time of testing. As a result of this analysis, we have determined our goodwill was not impaired as of December 31, 2018 or 2017 . Future Policy Benefits Future policy benefit reserves for interest sensitive products are computed under a retrospective deposit method and represent policy account balances before applicable surrender charges. We also have additional benefit reserves that are established for annuity or universal life-type contracts that provide benefit guarantees, or for contracts that are expected to produce profits followed by losses. The liabilities are accrued in relation to estimated contract assessments. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policy account balances. Interest crediting rates for our interest sensitive products ranged from 1.00% to 5.50% in 2018 , 2017 and 2016 . The liability for future policy benefits for direct participating traditional life insurance is based on net level premium reserves, including assumptions as to interest, mortality and other factors underlying the guaranteed policy cash values. Reserve interest assumptions are level and range from 2.00% to 6.00% . The average rate of assumed investment yields used in estimating gross margins was 5.48% in 2018 , 5.47% in 2017 and 5.51% in 2016 . The liability for future policy benefits for non-participating traditional life insurance is computed using a net level method, including assumptions as to mortality, persistency and interest and includes provisions for possible unfavorable deviations. The liabilities for future policy benefits for accident and health insurance are computed using a net level (or an equivalent) method, including assumptions as to morbidity, mortality and interest and include provisions for possible unfavorable deviations. Policy benefit claims are charged to expense in the period that the claims are incurred. Other Policy Claims and Benefits We have unearned revenue reserves that reflect the unamortized balance of charges assessed to interest sensitive contract holders to compensate us for services to be performed over future periods (policy initiation fees). These charges have been deferred and are being recognized in income over the period benefited using the same assumptions and factors used to amortize deferred acquisition costs. We have accrued dividends for participating business that are established for anticipated amounts earned to date that have not been paid. The declaration of future dividends for participating business is at the discretion of the Board of Directors of Farm Bureau Life. Participating business accounted for 28% of receipts from policyholders during 2018 ( 2017 - 29% and 2016 - 32% ) and represented 10% of life insurance in force at December 31, 2018 and 2017 and 11% at December 31, 2016 . Deferred Income Taxes Deferred income tax assets or liabilities are computed based on the difference between the financial statement and income tax bases of assets and liabilities using the enacted tax rates expected to be in effect when the assets or liabilities are recovered or settled. Deferred income tax expenses or credits are based on the changes in the asset or liability from period to period. A valuation allowance against deferred income tax assets is established if it is more likely than not that some portion or all of the deferred income tax assets will not be realized. Separate Accounts The separate account assets and liabilities reported in our accompanying consolidated balance sheets represent funds that are separately administered for the benefit of certain policyholders that bear the underlying investment risk. The separate account assets are carried at fair value and separate account liabilities represent policy account balances before applicable surrender charges. Revenues and expenses related to the separate account assets and liabilities, to the extent of benefits paid or provided to the separate account policyholders, are excluded from the amounts reported in the accompanying consolidated statements of operations. Recognition of Premium Revenues and Costs Revenues for interest sensitive and variable products consist of policy charges for the cost of insurance and product guarantees, asset charges, administration charges, amortization of policy initiation fees and surrender charges assessed against policyholder account balances. The timing of revenue recognition as it relates to these charges and fees is determined based on the nature of such charges and fees. Policy charges for the cost of insurance, asset charges and policy administration charges are assessed on a daily or monthly basis and are recognized as revenue when assessed and earned. Certain policy initiation fees that represent compensation for services to be provided in the future are reported as unearned revenue and recognized in income over the periods benefited. Surrender charges are determined based upon contractual terms and are recognized upon surrender of a contract. Policy benefits and claims charged to expense include interest amounts credited to policyholder account balances and benefit claims incurred in excess of policyholder account balances during the period. Amortization of deferred acquisition costs is recognized as expense over the life of the policy. Traditional life insurance premiums are recognized as revenues over the premium-paying period. Future policy benefits and policy acquisition costs are recognized as expenses over the life of the policy by means of the provision for future policy benefits and amortization of deferred acquisition costs. All insurance-related revenues, benefits and expenses are reported net of reinsurance ceded. The cost of reinsurance ceded is recognized over the contract periods of the reinsurance agreements. Policies and contracts assumed are accounted for in a manner similar to that followed for direct business. Underwriting, Acquisition and Insurance Expenses Year ended December 31, 2018 2017 2016 (Dollars in thousands) Components of our underwriting, acquisition and insurance expenses: Commission expense, net of deferrals $ 23,801 $ 24,356 $ 22,735 Amortization of deferred acquisition costs 33,137 22,507 28,225 Amortization of value of insurance in force acquired 2,167 2,178 2,392 Other underwriting, acquisition and insurance expenses, net of deferrals 92,950 85,837 82,615 Total $ 152,055 $ 134,878 $ 135,967 Other Income and Other Expenses Other income and other expenses primarily consist of revenue and expenses generated by our various non-insurance subsidiaries for investment advisory, marketing and distribution, and leasing services. They also include revenues and expenses generated by our parent company for management services. Certain of these activities are performed on behalf of our affiliates. Revenues are recognized for the performance of these services to our customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those services. Lease income from leases with affiliates totaled $4.9 million in 2018 , $4.6 million in 2017 and $4.8 million in 2016 . Investment advisory fee income from affiliates totaled $2.9 million in 2018 , $2.7 million in 2017 and $2.5 million in 2016 . In addition, Farm Bureau Life has certain items, including fees earned from brokered products, reported as other income and other expense, which netted to $2.7 million in 2018 , $2.5 million in 2017 and $3.4 million in 2016 . We expense legal costs associated with a loss contingency as incurred. Retirement and Compensation Plans We participate with affiliates and an unaffiliated organization in defined benefit pension plans, including a multiemployer plan. The multiemployer plan records an asset or liability based on the difference between contributions made to the plan to date and expense recognized for the plan to date. The obligations for the single employer plans are based on an actuarial valuation of future benefits. For the multiemployer plan, our contributions are commingled with those of the other employers to fund the plan benefit obligations. Should a participating employer be unable to provide funding, the remaining employers would be required to continue funding all future obligations. The multiemployer plan employs a long-term investment strategy of maintaining diversified assets. The expected return on plan assets is set at the long-term rate expected to be earned based on the long-term investment strategy of the plans for assets at the end of the reporting period. We have a Cash-Based Restricted Stock Unit Plan. Performance and non-performance units are awarded under this plan. In addition to meeting the performance goals, the performance units are subject to a five-year vesting schedule. The non-performance units awarded under this plan vest over five years. The amount payable per unit awarded is equal to the price per share of the Company’s common stock at settlement of the award, and as such, we measure the value of the award each reporting period based on the current stock price. The expense related to the performance units is based on the number of units expected to vest and is recognized over the required service period. The expense related to the non-performance units is recognized over the five-year vesting schedule. The impact of forfeitures is estimated and compensation expense is recognized only for those units expected to vest. We also have share-based payment arrangements under our Class A Common Stock Compensation Plan, although no new awards have been made since 2011. See Note 8 for additional details on these plans. Comprehensive Income Comprehensive income includes net income, as well as other comprehensive income items not recognized through net income. Other comprehensive income includes unrealized gains and losses on our available-for-sale securities as well as the underfunded obligation for certain retirement and postretirement benefit plans. These items are included in accumulated other comprehensive income, net of tax and other offsets, in stockholders’ equity. The changes in unrealized gains and losses reported in our Statement of Comprehensive Income (Loss), excludes net investment gains and losses included in net income that represent transfers from unrealized to realized gains and losses. These transfers are further discussed in Note 7. The components of the underfunded obligation for certain retirement and postretirement benefit plans are provided in Note 8. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. For example, significant estimates and assumptions are utilized in the valuation of investments, determination of other-than-temporary impairments of investments, amortization of deferred acquisition costs, calculation of policyholder liabilities and accruals and determination of pension expense. It is reasonably possible that actual experience could differ from the estimates and assumptions utilized, which could have a material impact on the consolidated financial statements. |
Investment Operations
Investment Operations | 12 Months Ended |
Dec. 31, 2018 | |
Investment Operations [Abstract] | |
Investment [Text Block] | Investment Operations Fixed Maturity and Equity Securities Available-For-Sale Fixed Maturity Securities by Investment Category December 31, 2018 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 $ 3,231,846 $ 138,972 $ (90,933 ) $ 3,279,885 $ — Residential mortgage-backed 584,133 29,969 (7,242 ) 606,860 2,823 Commercial mortgage-backed 873,672 24,284 (19,390 ) 878,566 — Other asset-backed 697,332 15,567 (5,329 ) 707,570 1,143 United States Government and agencies 19,673 996 (134 ) 20,535 — States and political subdivisions 1,449,621 95,921 (5,913 ) 1,539,629 — Total fixed maturities $ 6,856,277 $ 305,709 $ (128,941 ) $ 7,033,045 $ 3,966 Available-For-Sale Fixed Maturity and Equity Securities by Investment Category December 31, 2017 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 $ 3,374,927 $ 329,299 $ (15,955 ) $ 3,688,271 $ (504 ) Residential mortgage-backed 483,671 35,890 (3,280 ) 516,281 339 Commercial mortgage-backed 674,076 34,464 (3,233 ) 705,307 — Other asset-backed 818,071 18,645 (3,214 ) 833,502 845 United States Government and agencies 23,378 1,606 (79 ) 24,905 — States and political subdivisions 1,383,127 141,813 (1,239 ) 1,523,701 — Total fixed maturities $ 6,757,250 $ 561,717 $ (27,000 ) $ 7,291,967 $ 680 Equity securities: Non-redeemable preferred stocks $ 92,951 $ 7,146 $ (265 ) $ 99,832 Common stocks 3,764 549 — 4,313 Total equity securities $ 96,715 $ 7,695 $ (265 ) $ 104,145 (1) Non-credit losses subsequent to the initial impairment measurement date on OTTI losses are included in the gross unrealized gains and gross unrealized losses columns above. The non-credit loss component of OTTI losses for residential mortgage-backed and other asset-backed securities at December 31, 2018 and December 31, 2017 were in an unrealized gain position due to increases in estimated fair value subsequent to initial recognition of non-credit losses on such securities. Available-For-Sale Fixed Maturities by Maturity Date December 31, 2018 Amortized Cost Fair Value (Dollars in thousands) Due in one year or less $ 123,881 $ 125,458 Due after one year through five years 517,489 531,498 Due after five years through ten years 698,549 708,191 Due after ten years 3,361,221 3,474,902 4,701,140 4,840,049 Mortgage-backed and other asset-backed 2,155,137 2,192,996 Total fixed maturities $ 6,856,277 $ 7,033,045 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 on Investments in Accumulated Other Comprehensive Income December 31, 2018 2017 (Dollars in thousands) Net unrealized appreciation on: Fixed maturities - available for sale $ 176,768 $ 534,718 Equity securities — 7,430 176,768 542,148 Adjustments for assumed changes in amortization pattern of: Deferred acquisition costs (46,732 ) (147,173 ) Value of insurance in force acquired (6,878 ) (14,870 ) Unearned revenue reserve 5,134 12,705 Adjustments for assumed changes in policyholder liabilities (1,642 ) (18,499 ) Provision for deferred income taxes (see Note 5) (26,596 ) (78,605 ) Net unrealized investment gains $ 100,054 $ 295,706 Change in Unrealized Appreciation/Depreciation of Investments - Recorded in Accumulated Other Comprehensive Income Year ended December 31, 2018 2017 2016 (Dollars in thousands) Fixed maturities - available for sale $ (357,950 ) $ 187,639 $ 89,222 Equity securities — 4,941 (2,842 ) Change in unrealized appreciation/depreciation of investments $ (357,950 ) $ 192,580 $ 86,380 The changes in 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 Securities with Unrealized Losses by Length of Time December 31, 2018 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 $ 1,035,176 $ (60,299 ) $ 207,381 $ (30,634 ) $ 1,242,557 $ (90,933 ) 70.5 % Residential mortgage-backed 191,365 (4,482 ) 74,113 (2,760 ) 265,478 (7,242 ) 5.6 Commercial mortgage-backed 302,159 (9,947 ) 148,855 (9,443 ) 451,014 (19,390 ) 15.0 Other asset-backed 250,119 (3,397 ) 149,997 (1,932 ) 400,116 (5,329 ) 4.1 United States Government and agencies — — 6,474 (134 ) 6,474 (134 ) 0.1 States and political subdivisions 144,681 (3,885 ) 16,943 (2,028 ) 161,624 (5,913 ) 4.7 Total fixed maturities $ 1,923,500 $ (82,010 ) $ 603,763 $ (46,931 ) $ 2,527,263 $ (128,941 ) 100.0 % Fixed Maturity and Equity Securities with Unrealized Losses by Length of Time December 31, 2017 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 $ 85,019 $ (1,261 ) $ 183,820 $ (14,694 ) $ 268,839 $ (15,955 ) 59.1 % Residential mortgage-backed 76,393 (1,757 ) 31,779 (1,523 ) 108,172 (3,280 ) 12.1 Commercial mortgage-backed 151,158 (2,078 ) 16,398 (1,155 ) 167,556 (3,233 ) 12.0 Other asset-backed 159,111 (2,006 ) 71,064 (1,208 ) 230,175 (3,214 ) 11.9 United States Government and agencies 5,698 (47 ) 1,864 (32 ) 7,562 (79 ) 0.3 States and political subdivisions 5,904 (96 ) 20,505 (1,143 ) 26,409 (1,239 ) 4.6 Total fixed maturities $ 483,283 $ (7,245 ) $ 325,430 $ (19,755 ) $ 808,713 $ (27,000 ) 100.0 % Equity securities: Non-redeemable preferred stocks $ 2,819 $ (71 ) $ 4,807 $ (194 ) $ 7,626 $ (265 ) Total equity securities $ 2,819 $ (71 ) $ 4,807 $ (194 ) $ 7,626 $ (265 ) Fixed maturities in the above tables include 709 securities from 465 issuers at December 31, 2018 and 247 securities from 154 issuers at December 31, 2017 . Unrealized losses increased during 2018 primarily due to higher market interest rates. 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 December 31, 2018 . We will continue to monitor the investment portfolio for future changes in issuer facts and circumstances that could result in future impairments beyond those currently identified. 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. 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 non-accrual 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 December 31, 2018 and December 31, 2017 , there were no non-performing loans over 90 days past due on contractual payments. At December 31, 2018 , we had committed to provide additional funding for mortgage loans totaling $5.7 million . These commitments arose in the normal course of business at terms that are comparable to similar investments. Mortgage Loans by Collateral Type December 31, 2018 December 31, 2017 Collateral Type Carrying Value Percent of Total Carrying Value Percent of Total (Dollars in thousands) Office $ 443,048 42.6 % $ 410,090 42.2 % Retail 310,625 29.9 292,257 30.1 Industrial 211,138 20.3 207,180 21.3 Other 75,018 7.2 62,285 6.4 Total $ 1,039,829 100.0 % $ 971,812 100.0 % Mortgage Loans by Geographic Location within the United States December 31, 2018 December 31, 2017 Region of the United States Carrying Value Percent of Total Carrying Value Percent of Total (Dollars in thousands) South Atlantic $ 301,206 29.0 % $ 296,947 30.5 % Pacific 162,824 15.7 146,320 15.0 West North Central 126,320 12.1 127,096 13.1 East North Central 117,768 11.3 91,971 9.5 Mountain 101,335 9.7 105,627 10.9 West South Central 85,919 8.3 85,566 8.8 East South Central 76,098 7.3 67,228 6.9 Middle Atlantic 34,843 3.4 16,052 1.7 New England 33,516 3.2 35,005 3.6 Total $ 1,039,829 100.0 % $ 971,812 100.0 % Mortgage Loans by Loan-to-Value Ratio December 31, 2018 December 31, 2017 Loan-to-Value Ratio Carrying Value Percent of Total Carrying Value Percent of Total (Dollars in thousands) 0% - 50% $ 409,089 39.3 % $ 334,037 34.4 % 51% - 60% 314,038 30.2 258,359 26.6 61% - 70% 264,973 25.5 297,404 30.6 71% - 80% 37,418 3.6 63,116 6.5 81% - 90% 14,311 1.4 18,896 1.9 Total $ 1,039,829 100.0 % $ 971,812 100.0 % 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 December 31, 2018 December 31, 2017 Carrying Value Percent of Total Carrying Value Percent of Total (Dollars in thousands) 2018 $ 137,519 13.2 % $ — — % 2017 207,540 20.0 214,365 22.1 2016 149,437 14.4 154,359 15.9 2015 128,877 12.4 144,890 14.9 2014 72,827 7.0 77,866 8.0 2013 and prior 343,629 33.0 380,332 39.1 Total $ 1,039,829 100.0 % $ 971,812 100.0 % Impaired Mortgage Loans December 31, 2018 2017 (Dollars in thousands) Unpaid principal balance $ 18,622 $ 19,027 Less: Related allowance (3,107 ) (497 ) Carrying value of impaired mortgage loans $ 15,515 $ 18,530 Allowance on Mortgage Loans Year ended December 31, 2018 2017 (Dollars in thousands) Balance at beginning of period $ 497 $ 713 Allowances established 2,778 — Recoveries (168 ) (216 ) Balance at end of period $ 3,107 $ 497 Mortgage Loan Modifications Our commercial mortgage loan portfolio can include 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 2018 or 2017 . Components of Net Investment Income Year ended December 31, 2018 2017 2016 (Dollars in thousands) Fixed maturities - available for sale $ 340,498 $ 344,302 $ 342,657 Equity securities 8,488 6,502 6,558 Mortgage loans 45,294 42,185 38,098 Policy loans 9,210 9,014 8,956 Short-term investments, cash and cash equivalents 772 506 365 Derivative income (loss) (10,405 ) 7,687 3,935 Prepayment fee income and other 9,208 12,470 10,992 403,065 422,666 411,561 Less investment expenses (8,447 ) (7,467 ) (7,391 ) Net investment income $ 394,618 $ 415,199 $ 404,170 Realized Gains (Losses) - Recorded in Income Year ended December 31, 2018 2017 2016 (Dollars in thousands) Realized gains (losses) on sales of investments Fixed maturities: Gross gains $ 2,195 $ 1,426 $ 9,793 Gross losses (363 ) (1,081 ) (8,523 ) Equity securities — (90 ) 529 Mortgage loans — — 817 Real estate — 304 — Other (19 ) 40 490 1,813 599 3,106 Net gains and (losses) recognized during the period on equity securities (9,089 ) — — Less net gains and (losses) recognized during the period on equity securities sold during the period (952 ) — — Net losses recognized during the period on equity securities held at the end of the period (1) (8,137 ) — — Net realized gains (losses) (7,276 ) 599 3,106 Impairment losses recognized in earnings: Credit-related portion of fixed maturity losses (2) (32 ) — (4,767 ) Other credit-related (3) (4,966 ) (1,553 ) (102 ) Net realized gains (losses) on investments recorded in income $ (12,274 ) $ (954 ) $ (1,763 ) (1) See Note 1 to our consolidated financial statements for discussion of change in accounting policy for equity securities during 2018. (2) Amount represents the credit-related losses recognized for fixed maturities that were impaired 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). (3) Amount represents credit-related losses for fixed maturities, mortgage loans, and other investments written down to fair value through income. Proceeds from sales of fixed maturities were $82.9 million in 2018 , $58.7 million in 2017 and $109.5 million in 2016 . Realized losses on sales were on securities that we did not intend to sell at the prior balance sheet date or on securities that were impaired in a prior period, but decreased in value and were sold during the current reporting period. Credit Loss Component of Other-Than-Temporary Impairments on Fixed Maturities Year ended December 31, 2018 2017 (Dollars in thousands) Balance at beginning of period $ (12,392 ) $ (14,500 ) Increases to previously impaired investments (32 ) — Reductions due to investments sold 3,932 1,521 Reduction for credit loss that no longer has a portion of the OTTI loss recognized in other comprehensive income 2,529 587 Balance at end of period $ (5,963 ) $ (12,392 ) This table sets forth the amount of credit loss impairments on fixed maturities held by the Company for which the non-credit portion of the OTTI was recognized in other comprehensive income (loss) and corresponding changes in such amounts. Credit loss impairments with no portion of the loss recognized in other comprehensive income, such as securities for which OTTI were measured at fair value, are excluded from the table. 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 we have a variable interest, 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 includes 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 VIEs, which consist of (i) limited partnerships or limited liability companies accounted for under the equity method included in securities and indebtedness of related parties and (ii) non-guaranteed federal LIHTC investments included in other assets. 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. We also have not provided additional support or other guarantees that were not previously contractually required (financial or otherwise) to any of the VIEs as of December 31, 2018 or December 31, 2017. Based on this analysis, none of our VIEs were required to be consolidated at December 31, 2018 or December 31, 2017. LIHTC investments take the form of limited partnerships or limited liability companies, which in turn invest in a number of low income housing projects. We use the proportional amortization method of accounting for these investments. The proportional amortization method amortizes the cost of the investment over the period in which the investor expects to receive tax credits and other tax benefits, and the resulting amortization is recognized along with the tax benefit as a component of federal income tax expense on our consolidated statements of operations. The net benefits reflected in federal income tax expense related to LIHTC investments were $3.8 million at December 31, 2018, $1.2 million at December 31, 2017 and $4.7 million at December 31, 2016. See Note 1 to our consolidated financial statements for discussion of a change in accounting method applied to these investments. At December 31, 2018, 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 $47.6 million , including $1.6 million for LIHTC investment commitments, which are summarized by year in the following table. Commitments to LIHTC Investments by Year December 31, 2018 (Dollars in thousands) 2019 $ 564 2020 165 2021-2025 831 Total $ 1,560 VIE Investments by Category December 31, 2018 December 31, 2017 Carrying Value Maximum Exposure to Loss Carrying Value Maximum Exposure to Loss (Dollars in thousands) LIHTC investments $ 54,037 $ 55,597 $ 65,710 $ 67,396 Investment companies 40,236 79,578 25,335 62,372 Real estate limited partnerships 8,945 15,673 8,589 20,590 Other 483 493 1,182 1,488 Total $ 103,701 $ 151,341 $ 100,816 $ 151,846 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 of 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 Our primary derivative exposure relates to purchased call options, which provide an economic hedge against the embedded derivatives in our indexed products. We also have embedded derivatives within our modified coinsurance agreements as well as an interest-only fixed maturity investment. We do not apply hedge accounting to any of our derivative positions, and they are held at fair value. Derivatives Instruments by Type December 31, 2018 December 31, 2017 (Dollars in thousands) Assets Freestanding derivatives: Call options (reported in other investments) $ 4,745 $ 14,824 Embedded derivatives: Modified coinsurance (reported in reinsurance recoverable) 157 2,125 Interest-only security (reported in fixed maturities) 855 2,096 Total assets $ 5,757 $ 19,045 Liabilities Embedded derivatives: Indexed products (reported in liability for future policy benefits) $ 40,028 $ 27,774 Modified coinsurance (reported in other liabilities) 7,426 268 Total liabilities $ 47,454 $ 28,042 Derivative Income (Loss) Year ended December 31, 2018 2017 2016 (Dollars in thousands) Change in fair value of free standing derivatives: Call options $ (7,749 ) $ 9,372 $ 2,990 Change in fair value of embedded derivatives: Modified coinsurance (2,480 ) (1,440 ) 716 Interest-only security (176 ) (246 ) 229 Indexed products 3,243 321 (2,390 ) Total income (loss) from derivatives $ (7,162 ) $ 8,007 $ 1,545 Derivative income (loss) is reported in net investment income except for the change in fair value of the embedded derivatives on our indexed products, which is reported in interest sensitive product benefits. We are exposed to credit losses in the event of nonperformance of the derivative counterparties. This credit risk is minimized by purchasing such agreements from financial institutions with high credit ratings (currently rated A or better by nationally recognized statistical rating organizations). We have also entered into credit support agreements with the counterparties requiring them to post collateral when net exposures exceed pre-determined thresholds that vary by counterparty. The net amount of such exposure is essentially the market value less collateral held for such agreements with each counterparty. The call options are supported by securities collateral received of $3.8 million at December 31, 2018 , 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 December 31, 2018 , none of the collateral had been sold or re-pledged. As of December 31, 2018 , our net derivative exposure was $1.0 million . Other At December 31, 2018 , affidavits of deposits covering investments with a carrying value totaling $7,819.0 million were on deposit with state agencies to meet regulatory requirements. Fixed maturities with a carrying value of $484.3 million were on deposit with the FHLB as collateral for funding agreements. The carrying value of investments which have been non-income producing for the twelve months preceding December 31, 2018 includes real estate totaling $1.5 million . No investment in any entity or its affiliates (other than bonds issued by agencies of the United States Government) exceeded 10.0% of stockholders’ equity at December 31, 2018 . |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Values 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 or, if 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 measured at fair value on a recurring basis: 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 political subdivisions 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 with no quoted market prices 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 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 for which 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 fluctuations based on our knowledge of the market and the particular instrument. As fluctuations are noted, we will perform further research that 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 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 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 fair value estimates are based on the value of comparable securities that are actively traded. Increases in spreads 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 that 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. Other investments: Level 2 other investments measured at fair value include call options with fair values based on counterparty market prices adjusted for a credit component of the counterparty, net of collateral received. 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 - indexed product embedded derivatives: Indexed product 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 our credit risk. Should the risk margin increase or the credit risk decrease, the discounted cash flows and the estimated fair value of the obligation will increase. 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. Valuation of our Financial Instruments Measured on a Recurring Basis by Hierarchy Levels December 31, 2018 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair Value (Dollars in thousands) Assets Fixed maturities: Corporate securities $ — $ 3,257,874 $ 22,011 $ 3,279,885 Residential mortgage-backed securities — 606,860 — 606,860 Commercial mortgage-backed securities — 810,626 67,940 878,566 Other asset-backed securities — 703,969 3,601 707,570 United States Government and agencies 7,917 12,618 — 20,535 States and political subdivisions — 1,539,629 — 1,539,629 Total fixed maturities 7,917 6,931,576 93,552 7,033,045 Non-redeemable preferred stocks — 77,433 6,862 84,295 Common stocks (1) 5,261 — — 5,261 Other investments — 4,745 — 4,745 Cash, cash equivalents and short-term investments 34,748 — — 34,748 Reinsurance recoverable — 157 — 157 Assets held in separate accounts 561,281 — — 561,281 Total assets $ 609,207 $ 7,013,911 $ 100,414 $ 7,723,532 Liabilities Future policy benefits - indexed product embedded derivatives $ — $ — $ 40,028 $ 40,028 Other liabilities — 780 — 780 Total liabilities $ — $ 780 $ 40,028 $ 40,808 (1) A private equity fund with a fair value estimate of $3.3 million using net asset value per share as a practical expedient, has not been classified in the fair value hierarchy above in accordance with fair value reporting guidance. This fund invests in senior secured middle market loans and has unfunded commitments totaling $6.8 million at December 31, 2018. The investment is not currently eligible for redemption. Valuation of our Financial Instruments Measured on a Recurring Basis by Hierarchy Levels December 31, 2017 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair Value (Dollars in thousands) Assets Fixed maturities: Corporate securities $ — $ 3,654,671 $ 33,600 $ 3,688,271 Residential mortgage-backed securities — 507,157 9,124 516,281 Commercial mortgage-backed securities — 619,606 85,701 705,307 Other asset-backed securities — 780,022 53,480 833,502 United States Government and agencies 9,078 15,827 — 24,905 States and political subdivisions — 1,523,701 — 1,523,701 Total fixed maturities 9,078 7,100,984 181,905 7,291,967 Non-redeemable preferred stocks — 92,425 7,407 99,832 Common stocks 4,313 — — 4,313 Other investments — 14,824 — 14,824 Cash, cash equivalents and short-term investments 69,703 — — 69,703 Reinsurance recoverable — 2,125 — 2,125 Assets held in separate accounts 651,963 — — 651,963 Total assets $ 735,057 $ 7,210,358 $ 189,312 $ 8,134,727 Liabilities Future policy benefits - indexed product embedded derivatives $ — $ — $ 27,774 $ 27,774 Other liabilities — 268 — 268 Total liabilities $ — $ 268 $ 27,774 $ 28,042 Level 3 Assets by Valuation Source - Recurring Basis December 31, 2018 Third-party vendors Priced Fair Value (Dollars in thousands) Corporate securities $ 1,940 $ 20,071 $ 22,011 Commercial mortgage-backed securities 67,940 — 67,940 Other asset-backed securities — 3,601 3,601 Non-redeemable preferred stocks — 6,862 6,862 Total level 3 assets $ 69,880 $ 30,534 $ 100,414 Percent of total 69.6 % 30.4 % 100.0 % December 31, 2017 Third-party vendors Priced Fair Value (Dollars in thousands) Corporate securities $ 4,555 $ 29,045 $ 33,600 Residential mortgage-backed securities 9,124 — 9,124 Commercial mortgage-backed securities 85,701 — 85,701 Other asset-backed securities 47,080 6,400 53,480 Non-redeemable preferred stocks — 7,407 7,407 Total level 3 assets $ 146,460 $ 42,852 $ 189,312 Percent of total 77.4 % 22.6 % 100.0 % Quantitative Information about Level 3 Fair Value Measurements - Recurring Basis December 31, 2018 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (Dollars in thousands) Assets Corporate securities $ 19,178 Discounted cash flow Credit spread 1.23% - 7.00% (4.01%) Commercial mortgage-backed securities 55,866 Discounted cash flow Credit spread 1.45% - 3.55% (2.58%) Non-redeemable preferred stocks 6,862 Discounted cash flow Credit spread 4.36% (4.36%) Total assets $ 81,906 Liabilities Future policy benefits - indexed product embedded derivatives $ 40,028 Discounted cash flow Credit risk Risk margin 0.55% - 1.80% (1.25%) 0.15% - 0.40% (0.25%) December 31, 2017 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (Dollars in thousands) Assets Corporate securities $ 27,682 Discounted cash flow Credit spread 0.91% - 6.20% (4.17%) Commercial mortgage-backed securities 72,224 Discounted cash flow Credit spread 1.40% - 4.10% (2.50%) Non-redeemable preferred stocks 7,407 Discounted cash flow Credit spread 2.94% (2.94%) Total assets $ 107,313 Liabilities Future policy benefits - indexed product embedded derivatives $ 27,774 Discounted cash flow Credit risk Risk margin 0.40% - 1.60% (0.90%) 0.15% - 0.40% (0.25%) The tables above exclude certain securities with the fair value based on non-binding broker quotes for which we could not reasonably obtain the quantitative unobservable inputs. Level 3 Financial Instruments Changes in Fair Value - Recurring Basis December 31, 2018 Realized and unrealized gains (losses), net Balance, December 31, 2017 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, December 31, 2018 (Dollars in thousands) Assets Corporate securities $ 33,600 $ — $ (9,432 ) $ — $ (974 ) $ 7,082 $ (8,530 ) $ 265 $ 22,011 Residential mortgage-backed securities 9,124 27,818 — — — — (36,942 ) — — Commercial mortgage-backed securities 85,701 36,008 (1,337 ) — (3,599 ) — (48,787 ) (46 ) 67,940 Other asset-backed securities 53,480 28,855 (2,799 ) — (12 ) — (75,923 ) — 3,601 Non-redeemable preferred stocks 7,407 — — (545 ) — — — — 6,862 Total assets $ 189,312 $ 92,681 $ (13,568 ) $ (545 ) $ (4,585 ) $ 7,082 $ (170,182 ) $ 219 $ 100,414 Liabilities Future policy benefits - indexed product embedded derivatives $ 27,774 $ 11,514 $ (4,447 ) $ 5,187 $ — $ — $ — $ — $ 40,028 December 31, 2017 Realized and unrealized gains (losses), net Balance, December 31, 2016 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, December 31, 2017 (Dollars in thousands) Assets Corporate securities $ 59,119 $ 5,000 $ (12,230 ) $ 84 $ (1,365 ) $ 13,440 $ (30,409 ) $ (39 ) $ 33,600 Residential mortgage-backed securities — 32,455 — — (1 ) — (23,331 ) 1 9,124 Commercial mortgage-backed securities 81,434 25,591 (802 ) — 6,218 — (26,658 ) (82 ) 85,701 Other asset-backed securities 54,368 126,867 (8,886 ) — 499 13,353 (132,700 ) (21 ) 53,480 Non-redeemable preferred stocks 7,411 — — — (4 ) — — — 7,407 Total assets $ 202,332 $ 189,913 $ (21,918 ) $ 84 $ 5,347 $ 26,793 $ (213,098 ) $ (141 ) $ 189,312 Liabilities Future policy benefits - indexed product embedded derivatives $ 15,778 $ 6,594 $ (2,128 ) $ 7,530 $ — $ — $ — $ — $ 27,774 (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. The Company has other financial assets and financial liabilities that are not carried at fair value but for which fair value disclosure is required. The following table presents the carrying value, fair value and fair value hierarchy level of these financial assets and financial liabilities. Valuation of our Financial Instruments Not Reported at Fair Value by Hierarchy Levels December 31, 2018 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair Value Carrying Value (Dollars in thousands) Assets Mortgage loans $ — $ — $ 1,045,497 $ 1,045,497 $ 1,039,829 Policy loans — — 237,496 237,496 197,366 Other investments — — 30,087 30,087 29,020 Total assets $ — $ — $ 1,313,080 $ 1,313,080 $ 1,266,215 Liabilities Future policy benefits $ — $ — $ 3,981,947 $ 3,981,947 $ 4,217,904 Supplementary contracts without life contingencies — — 298,869 298,869 303,627 Advance premiums and other deposits — — 252,318 252,318 252,318 Long-term debt — — 65,999 65,999 97,000 Liabilities related to separate accounts — — 559,799 559,799 561,281 Total liabilities $ — $ — $ 5,158,932 $ 5,158,932 $ 5,432,130 December 31, 2017 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair Value Carrying Value (Dollars in thousands) Assets Mortgage loans $ — $ — $ 989,503 $ 989,503 $ 971,812 Policy loans — — 236,223 236,223 191,398 Other investments 28,619 28,619 27,547 Total assets $ — $ — $ 1,254,345 $ 1,254,345 $ 1,190,757 Liabilities Future policy benefits $ — $ — $ 4,119,880 $ 4,119,880 $ 4,164,593 Supplementary contracts without life contingencies — — 327,151 327,151 322,630 Advance premiums and other deposits — — 259,099 259,099 259,099 Long-term debt — — 78,628 78,628 97,000 Liabilities related to separate accounts — — 649,610 649,610 651,963 Total liabilities $ — $ — $ 5,434,368 $ 5,434,368 $ 5,495,285 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. During 2018, one mortgage loan was impaired to a fair value totaling $11.1 million which resulted in an impairment charge of $2.8 million . There were no mortgage loans or real estate impaired to fair value during 2017. |
Reinsurance and Policy Provisio
Reinsurance and Policy Provisions | 12 Months Ended |
Dec. 31, 2018 | |
Reinsurance and Policy Provisions [Abstract] | |
Reinsurance and Policy Provisions [Text Block] | Reinsurance and Policy Provisions Reinsurance In the normal course of business, we seek to limit our exposure to loss on any single insured or event and to recover a portion of benefits paid by ceding a portion of our exposure to other insurance companies. Our reinsurance coverage for life insurance varies according to the age and risk classification of the insured with current retention limits ranging up to $1.0 million of coverage per individual life. Certain term life products are reinsured on a first dollar quota share basis. We do not use financial or surplus relief reinsurance. We have assumed closed blocks of certain life and annuity business through coinsurance and modified coinsurance agreements. Farm Bureau Life may cede certain losses under an annual 100% quota share accidental death reinsurance agreement. Coverage includes all acts of terrorism including those of a nuclear, chemical or biological origin. Coverage is subject to an annual aggregate retention of $17.0 million . A maximum occurrence limit of $50.0 million per aircraft applies to policies written on agents of the Company who are participating in company-sponsored incentive trips. Additionally, a $200.0 million occurrence limit applies to employees in the home office building, net of reinsurance on group life policies. All other occurrence catastrophes are unlimited in amount. Reinsurance contracts do not relieve us of our obligations to policyholders. To the extent that reinsuring companies are later unable to meet their obligations under reinsurance agreements, our insurance subsidiaries would be liable for these obligations, and payment of these obligations could result in losses. To limit the possibility of such losses, we evaluate the financial condition of our reinsurers and monitor concentrations of credit risk. No allowance for uncollectible amounts has been established against our asset for reinsurance recoverable since none of our receivables are deemed to be uncollectible. Ceded reinsurance reduces our revenues by the amount that we pay for premium or forego in product charges and reduces our benefits and expenses by reimbursements of claims by our reinsurers. Assumed reinsurance adds to our premiums or product charges and to benefits and expenses related to the business we assume. These impacts are shown in the table below. Impact of Reinsurance on our Financial Statements Year ended December 31, 2018 2017 2016 (Dollars in thousands) Ceded (reductions to financial statement items): Premiums and product charges $ 32,450 $ 32,922 $ 33,058 Insurance benefits 21,358 24,159 22,515 Allowances for expenses and commissions 4,231 4,548 4,709 Assumed (additions to financial statement items): Premiums and product charges 2,508 2,637 2,670 Insurance benefits 2,752 6,356 2,302 Allowances for expenses and commissions 1,410 1,543 1,427 Reinsurance in Force and Percentage of Direct Life Insurance in Force Year ended December 31, 2018 2017 (Dollars in millions) Ceded reinsurance $ 14,030 21.8 % $ 14,087 22.5 % Assumed reinsurance 455 0.7 % 487 0.8 % Policy Provisions Analysis of the Value of Insurance in Force Acquired Year ended December 31, 2018 2017 2016 (Dollars in thousands) Balance at beginning of year $ 19,430 $ 21,608 $ 24,000 Amortization per fixed schedule (2,167 ) (2,178 ) (2,198 ) Impact of unlocking actuarial assumptions — — (194 ) Balance at end of year 17,263 19,430 21,608 Impact of net unrealized investment gains and losses (6,878 ) (14,870 ) (12,382 ) Value of insurance in force acquired $ 10,385 $ 4,560 $ 9,226 We amortize the value of insurance in force based on a fixed amortization schedule. Net amortization for the next five years is expected to be as follows: 2019 - $2.1 million ; 2020 - $2.2 million ; 2021 - $2.0 million ; 2022 - $2.0 million ; and 2023 - $2.0 million . Certain variable annuity and variable universal life contracts in our separate accounts and in variable business we have assumed through reinsurance partners have minimum interest guarantees on funds deposited in our general account. In addition, we have certain variable annuity contracts that include a) guaranteed minimum death benefits (GMDB), b) an incremental death benefit (IDB) rider that pays a percentage of the gain on the contract upon the death of the contract holder, and/or c) a guaranteed minimum income benefit (GMIB) that provides monthly income to the contract holder after the eighth policy year. GMDB, IDB and GMIB Net Amount at Risk by Type of Guarantee December 31, 2018 December 31, 2017 Separate Account Balance Net Amount at Risk Separate Account Balance Net Amount at Risk (Dollars in thousands) Guaranteed minimum death benefit: Return of net deposits $ 147,567 $ 430 $ 173,761 $ 442 Return the greater of highest anniversary 252,361 29,146 292,112 1,068 Incremental death benefit 228,863 53,727 265,456 67,350 Guaranteed minimum income benefit 24,357 37 29,987 — Total $ 83,340 $ 68,860 The separate account assets are primarily comprised of stock and bond mutual funds. The net amount at risk for these contracts is based on the amount by which GMDB, IDB or GMIB exceeds account value. The reserve for GMDBs, IDBs or GMIBs, determined using modeling techniques and industry mortality assumptions, that is included in future policy benefits, totaled $7.7 million at December 31, 2018 and $6.9 million at December 31, 2017 . The weighted average age of the contract holders with GMDB, IDB or GMIB rider exposure was 58 years at December 31, 2018 and 66 years at December 31, 2017 . This average age fluctuates due to the small pool of participants that move in and out of exposure dependent upon market performance and terminations. Benefits paid for GMDBs, IDBs and GMIBs totaled $0.2 million for 2018 , $0.8 million for 2017 and $0.5 million for 2016 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Deferred income taxes have been established based upon the temporary differences between the financial statement and income tax bases of assets and liabilities. The reversal of the temporary differences will result in taxable or deductible amounts in future years when the related asset or liability is recovered or settled. A valuation allowance is required if it is more likely than not that a deferred tax asset will not be realized. In assessing the need for a valuation allowance, we considered the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies. Based on the available positive and negative evidence regarding future sources of taxable income, we have determined that the establishment of a valuation allowance was not necessary at December 31, 2018 and 2017 . The Tax Act made broad changes to the U.S. tax code impacting our companies, including reducing the federal corporate tax rate from 35% to 21% and numerous base-broadening provisions. At December 31, 2017, we recorded a provisional estimate of the impact of the Tax Act, which resulted in a reduction of net deferred tax liabilities of $84.8 million , which includes $48.2 million related to deferred taxes previously recognized in accumulated other comprehensive income. At December 31, 2018, the accounting for the Tax Act is complete, as the provisional estimates used have been finalized by filing the 2017 income tax return. This resulted in no significant impact to earnings. Additional estimates have been adjusted, resulting only in reclassification between deferred tax items, such as the deferred tax asset on future policy benefits. In these cases, the overall impact of the Tax Act did not change from 2017. We invest in LIHTC investments, which generate pre-tax losses but after-tax gains as the related tax credits are realized. The timing of the realization of tax credits is subject to fluctuation from period to period due to the timing of housing project completions and the approval of tax credits. During 2018, we voluntarily changed our accounting policy for LIHTC investments from the equity method to the proportional amortization method. The net income and expense from LIHTC investments are now reflected in the "Income taxes" line instead of the "Equity income" line on the consolidated statements of operations. See Note 1 to our consolidated financial statements for discussion of this accounting change. Income Tax Expenses (Credits) Year ended December 31, 2018 2017 2016 (Dollars in thousands) Taxes provided in consolidated statements of operations on: Income before equity loss: Current $ 20,429 $ 34,301 $ 36,461 Deferred (4,953 ) (73,094 ) 9,409 LIHTC (3,826 ) (1,190 ) (4,650 ) 11,650 (39,983 ) 41,220 Equity income 1,179 1,394 1,221 Taxes provided in consolidated statements of changes in stockholders’ equity: Accumulated other comprehensive income (50,025 ) 43,448 18,882 Class A and Class B common stock (1) — — (846 ) (50,025 ) 43,448 18,036 $ (37,196 ) $ 4,859 $ 60,477 (1) Beginning in 2017, accounting guidance requires tax benefits of equity-based compensation to be recorded through net income rather than directly to stockholders’ equity. Accordingly, we do not expect to have a provision for taxes on Class A and B common stock for years after 2016. See Note 1 to our consolidated financial statements for further discussion of this accounting change. Effective Tax Rate Reconciliation to Federal Income Tax Rate Year ended December 31, 2018 2017 2016 (Dollars in thousands) Income before income taxes and equity loss $ 101,033 $ 144,760 $ 141,789 Income tax at federal statutory rate $ 21,217 $ 50,666 $ 49,626 Tax effect (decrease) of: Tax-exempt dividend and interest income (3,762 ) (3,384 ) (2,950 ) Net impact of LIHTC (3,826 ) (1,190 ) (4,650 ) Remeasurement of deferred taxes under the Tax Act — (84,806 ) — Other items (1,979 ) (1,269 ) (806 ) Income tax expense (benefit) $ 11,650 $ (39,983 ) $ 41,220 In 2018 and 2017, other items affecting the effective tax rate include excess tax benefits from equity-based compensation deductions. Prior to 2017, these tax benefits were recorded to stockholders equity, so they did not impact the effective tax rate. Tax Effect of Temporary Differences Giving Rise to Deferred Income Tax Assets and Liabilities December 31, 2018 2017 (Dollars in thousands) Deferred income tax assets: Future policy benefits $ 25,137 $ 21,926 Accrued benefit and compensation costs 3,854 3,435 Loss carryforwards 2,870 3,452 Other 2,555 2,669 34,416 31,482 Deferred income tax liabilities: Fixed maturity and equity securities 42,961 118,716 Deferred acquisition costs 55,810 33,177 Value of insurance in force acquired 2,181 958 Property and equipment 7,021 5,883 Other 1,892 3,173 109,865 161,907 Net deferred income tax liability $ 75,449 $ 130,425 We recognize the benefits of uncertain tax positions when the benefits are more-likely-than-not to be sustained. We had no reserve for uncertain tax positions at December 31, 2018 or 2017 . We recognize interest related to uncertain tax positions in interest expense and related penalties in other expenses. We paid no such interest and penalties related to federal income taxes during 2018 , 2017 or 2016 . We do not expect any significant changes in the amount of our reserve for uncertain tax positions within the next twelve months. We are no longer subject to U.S. federal, state and local income tax examinations by tax authorities for tax years prior to 2015. At December 31, 2018 , we had non-life net operating loss carryforwards for federal income tax purposes totaling $12.7 million , which begin to expire after 2032. We also had non-life net operating loss carryforwards in several state jurisdictions, with varying expiration dates. State deferred taxes are not generally provided on any temporary differences or carryforwards, as state taxes have historically been insignificant. |
Credit Arrangements
Credit Arrangements | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Credit Arrangements Long-term debt includes $97.0 million of our subordinated debt obligation to FBL Financial Group Capital Trust (the Trust). We issued 5% Subordinated Deferrable Interest Notes due June 30, 2047 (the Notes) with a principal amount of $100.0 million to support $97.0 million of 5% Preferred Securities issued by the Trust. We also have a $3.0 million equity investment in the Trust, which is netted against the Notes on the consolidated balance sheets due to a contractual right of offset. The sole assets of the Trust are and will be the Notes and any interest accrued thereon. The interest payment dates on the Notes correspond to the distribution dates on the 5% Preferred Securities. The 5% Preferred Securities, which have a liquidation value of $1,000.00 per share plus accrued and unpaid distributions, mature simultaneously with the Notes. As of December 31, 2018 and 2017 , 97,000 shares of 5% Preferred Securities were outstanding, all of which we unconditionally guarantee. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Stockholders’ Equity Share Repurchases We periodically repurchase our Class A common stock under programs approved by our Board of Directors. 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. Under these programs, we repurchased 232,837 shares of stock for $15.9 million in 2018 , 3,511 shares of stock for $0.2 million in 2017 and 10,322 shares of stock for $0.6 million 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, if any, that we will repurchase. The share repurchase program may be modified or terminated at any time without prior notice. There was $40.9 million remaining available for repurchases at December 31, 2018 under the active repurchase program. Dividends Year ended December 31, 2018 2017 2016 Class A and B common stock: Cash dividends per common share $ 1.84 $ 1.76 $ 1.68 Special cash dividend per common share 1.50 1.50 2.00 Total common stock dividends per share $ 3.34 $ 3.26 $ 3.68 Series B preferred stock cash dividends per share $ 0.03 $ 0.03 $ 0.03 Special cash dividends paid to our Class A and Class B common shareholders totaled $37.3 million in 2018, $37.4 million in 2017 and $49.7 million in 2016. Dividend Restrictions We have agreed that we will not pay dividends on the Class A or Class B Common Stock, nor on the Series B Preferred Stock, if we are in default of the Subordinated Deferrable Interest Note Agreement dated May 30, 1997 with FBL Financial Group Capital Trust. We are compliant with all terms of this agreement at December 31, 2018 . See Note 6 for additional information regarding this agreement. The amount of dividends we have available to pay our common shareholders is limited to a certain extent by the amount of dividends our primary operating subsidiary, Farm Bureau Life, is able to pay to its parent, FBL Financial Group, Inc. See Note 12 for discussion on our statutory dividend restrictions. Reconciliation of Outstanding Common Stock Class A Class B (1) Total Shares Dollars Shares Dollars Shares Dollars (Dollars in thousands) 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 96,101 3,718 — — 96,101 3,718 Purchase of common stock (10,322 ) (63 ) — — (10,322 ) (63 ) Outstanding at December 31, 2016 24,882,542 152,903 11,413 72 24,893,955 152,975 Issuance of common stock under compensation plans 40,082 708 — — 40,082 708 Purchase of common stock (3,511 ) (22 ) — — (3,511 ) (22 ) Outstanding at December 31, 2017 24,919,113 153,589 11,413 72 24,930,526 153,661 Issuance of common stock under compensation plans 21,126 499 — — 21,126 499 Purchase of common stock (232,837 ) (1,436 ) — — (232,837 ) (1,436 ) Outstanding at December 31, 2018 24,707,402 $ 152,652 11,413 $ 72 24,718,815 $ 152,724 (1) There is no established market for our Class B common stock, although it is convertible upon demand of the holder into Class A common stock on a share-for-share basis. Holders of the Class A common stock and Series B preferred stock vote together to elect Class A Directors ( four to ten ). Holders of the Class B common stock elect the Class B Directors ( five to seven ). Voting for the Directors is noncumulative. All of the holders of our Class B common stock are parties to a Stockholders’ Agreement. The IFBF’s ownership in the three classes of stock results in IFBF owning 71% of our voting stock as of December 31, 2018 , and having the ability to control the Company. Holders of Class A common stock and Class B common stock receive equal per-share cash dividends. The IFBF owns all of our outstanding Series B preferred stock. Each share of Series B preferred stock has a liquidation preference of $0.60 and voting rights identical to that of Class A common stock with the exception that each Series B share is entitled to two votes while each Class A share is entitled to one vote. The Series B preferred stock pays cumulative cash dividends and is redeemable by us, at our option, at $0.60 per share plus unpaid dividends if the stock ceases to be beneficially owned by a Farm Bureau organization. Accumulated Other Comprehensive Income, Net of Tax and Other Offsets Unrealized Net Investment Gains (Losses) (1) Accumulated Non-Credit Impairment Gains (Losses) Underfunded Portion of Certain Benefit Total (Dollars in thousands) Balance at January 1, 2016 $ 120,787 $ (114 ) $ (6,141 ) $ 114,532 Other comprehensive income before reclassifications 37,895 1,901 — 39,796 Reclassification adjustments (1,719 ) (1,476 ) (1,578 ) (4,773 ) Balance at December 31, 2016 156,963 311 (7,719 ) 149,555 Other comprehensive income before reclassifications 88,534 136 — 88,670 Reclassification related to the Tax Act (3) 49,657 90 (1,521 ) 48,226 Reclassification adjustments 15 — (1,483 ) (1,468 ) Balance at December 31, 2017 295,169 537 (10,723 ) 284,983 Cumulative effect of change in accounting principle related to net unrealized gains on equity securities (4) (5,480 ) — — (5,480 ) Other comprehensive income before reclassifications (191,158 ) 2,654 — (188,504 ) Reclassification adjustments (1,610 ) (58 ) 1,987 319 Balance at December 31, 2018 $ 96,921 $ 3,133 $ (8,736 ) $ 91,318 (1) Unrealized net investment gains (losses) relate to available-for-sale securities and include 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) For descriptions of the underfunded portion of our postretirement benefit plans, see Note 8 - Other Retirement Plans, and for certain other defined benefit plans, see Note 8 - Defined Benefit Pension Plans. (3) Reclassification of the initial impact of the remeasurement of deferred tax assets and liabilities upon enactment of the Tax Act. See discussion of this accounting change as discussed in Note 1. (4) See Note 1 to our consolidated financial statements for further discussion on this one-time adjustment related to an accounting change. Accumulated Other Comprehensive Income Reclassification Adjustments Year ended December 31, 2018 Unrealized Net Investment Gains (Losses) (1) Accumulated Non-Credit Impairment Losses (1) Underfunded Portion of Certain Benefit Total (Dollars in thousands) Realized capital gains on sales of fixed maturities $ (1,832 ) $ — $ — $ (1,832 ) Adjustments for assumed changes in deferred policy acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities (206 ) 1 — (205 ) Other than temporary impairment losses — (74 ) — (74 ) Other expenses - change in unrecognized postretirement items: Net actuarial gain — — 2,515 2,515 Reclassifications before income taxes (2,038 ) (73 ) 2,515 404 Income taxes 428 15 (528 ) (85 ) Reclassification adjustments $ (1,610 ) $ (58 ) $ 1,987 $ 319 Accumulated Other Comprehensive Income Reclassification Adjustments Year ended December 31, 2017 Unrealized Net Investment Gains (Losses) (1) Accumulated Non-Credit Impairment Losses (1) Underfunded Portion of Certain Benefit Total (Dollars in thousands) Realized capital gains on sales of investments $ (255 ) $ — $ — $ (255 ) Adjustments for assumed changes in deferred policy acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities 274 — — 274 Other expenses - change in unrecognized postretirement items: Net actuarial loss — — (1,702 ) (1,702 ) Reclassifications before income taxes 19 — (1,702 ) (1,683 ) Income taxes (4 ) — 219 215 Reclassification adjustments $ 15 $ — $ (1,483 ) $ (1,468 ) Year ended December 31, 2016 Unrealized Net Investment Gains (Losses) (1) Accumulated Non-Credit Impairment Losses (1) Underfunded Portion of Certain Benefit Total (Dollars in thousands) Realized capital gains on sales of investments $ (1,799 ) $ — $ — $ (1,799 ) Adjustments for assumed changes in deferred policy acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities (845 ) 180 — (665 ) Other than temporary impairment losses — (2,451 ) — (2,451 ) Other expenses - change in unrecognized postretirement items: Prior service costs — — (1 ) (1 ) Net actuarial loss — — (2,425 ) (2,425 ) Reclassifications before income taxes (2,644 ) (2,271 ) (2,426 ) (7,341 ) Income taxes 925 795 848 2,568 Reclassification adjustments $ (1,719 ) $ (1,476 ) $ (1,578 ) $ (4,773 ) (1) See Note 2 for further information. (2) For descriptions of the underfunded portion of our postretirement benefit plans, see Note 8 - Other Retirement Plans, and for certain other defined benefit plans, see Note 8 - Defined Benefit Plans. |
Retirement and Compensation Pla
Retirement and Compensation Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | Defined Benefit Pension Plans We participate in various defined benefit pension plans (the Plans), including a multiemployer plan. The multiemployer plan is considered qualified under Internal Revenue Service regulations, and covers our employees and the employees of the other participating companies who had attained age 21, had one year of service and were employed prior to January 1, 2013. We also have a plan that provides supplemental pension benefits to certain highly compensated employees who have salaries and/or pension benefits in excess of the qualified limits imposed by federal law and were employed prior to January 1, 2013. Benefits under these plans are based on years of service and the employee’s compensation. The plans are discussed below. Multiemployer Defined Benefit Plan The FBL Financial Group Retirement Plan (the Multiemployer Plan) is considered a multiemployer plan, with the participation of affiliated and unaffiliated employers along with FBL Financial Group, Inc. and its subsidiaries. Under the multiemployer plan structure, our contributions are commingled with those of the other employers to fund the plan benefit obligations. Should a participating employer be unable to provide funding, the remaining employers would be required to continue funding all future obligations. If an employer elects to discontinue participation, prior to departure they will be required to contribute their portion of the underfunded pension obligation associated with their employees. This required contribution will be based on an actuarial estimate of future benefit obligations, which as an estimate may not ultimately be sufficient to fund future actual benefits. None of the participating employers have provided notice that they would be discontinuing participation in the Multiemployer Plan or would otherwise be unable to continue providing their share of required funding as of December 31, 2018. Contributions are made each year, resulting in the Multiemployer Plan being partially funded for payment of projected future benefit obligations. Effective in 2013, the Multiemployer Plan was closed to new participants and those participants who had not attained age 40 and 10 years of service as of December 31, 2012 no longer accrue additional years of service in the Multiemployer Plan. Multiemployer Plan name FBL Financial Group Retirement Plan Employer identification number 42-1411715 Plan number 001 FBL’s contributions (in thousands) 2018 $30,000 2017 $45,000 2016 $30,000 Net periodic pension cost of the Multiemployer Plan is allocated between participating employers on a basis of time incurred by the respective employees for each employer. Such allocations are reviewed annually. The Multiemployer Plan is not subject to collective bargaining agreements, a financial improvement plan or a rehabilitation plan. No surcharges were required to be paid to the Multiemployer Plan during 2018 , 2017 or 2016 . We are the primary employer in the Multiemployer Plan, providing more than 5 percent of the total contributions during 2018 , 2017 and 2016 . Other Defined Benefit Plans The other defined benefit plans (the Other Plans) provide benefits in addition to those offered under the Multiemployer Plan to certain of our employees or affiliated employers. These non-qualified benefit plans are not funded, whereby contributions are made as current benefit obligations become due. Net periodic pension cost of the Other Plans is allocated between the subsidiaries of FBL Financial Group, Inc. and the Farm Bureau affiliated property-casualty companies on a basis of time incurred by the respective employees for each company. Funding Status and Net Periodic Pension Costs Multiemployer Plan Other Plans As of and for the year ended December 31, As of and for the year ended December 31, 2018 2017 2018 2017 (Dollars in thousands) Change in projected benefit obligation: Net benefit obligation at beginning of the year $ 375,999 $ 336,454 $ 26,914 $ 24,585 Service cost 5,973 5,552 539 436 Interest cost 13,642 14,124 958 1,003 Actuarial loss (gain) (20,594 ) 41,855 (1,170 ) 2,728 Benefits paid (4,001 ) (21,986 ) (1,878 ) (1,838 ) Settlements (56,256 ) — — — Special termination benefit 5,168 — — — Projected benefit obligation 319,931 375,999 25,363 26,914 Change in plan assets: Fair value of plan assets at beginning of the year 345,396 291,071 — — Actual return on plan assets 869 31,311 — — Employer contributions 30,000 45,000 1,878 1,838 Benefits paid (4,001 ) (21,986 ) (1,878 ) (1,838 ) Settlements (56,256 ) — — — Fair value of plan assets at end of the year 316,008 345,396 — — Underfunded status at end of the year $ (3,923 ) $ (30,603 ) $ (25,363 ) $ (26,914 ) Accumulated benefit obligation $ 287,052 $ 334,462 $ 22,753 $ 23,504 The fair value of plan assets of the Multiemployer Plan exceeded the accumulated benefit obligation at December 31, 2018 and December 31, 2017. Net Periodic Pension Costs Incurred by the Plans Multiemployer Plan Other Plans As of and for the year ended December 31, As of and for the year ended December 31, 2018 2017 2016 2018 2017 2016 (Dollars in thousands) Service cost $ 5,973 $ 5,552 $ 5,795 $ 539 $ 436 $ 335 Interest cost 13,642 14,124 14,447 958 1,003 966 Expected return on plan assets (22,247 ) (19,184 ) (17,865 ) — — — Amortization of prior service cost 46 131 144 — — (1 ) Amortization of actuarial loss 12,507 10,121 9,432 1,353 1,172 918 Effect of settlement 17,406 — — — — — Effect of special termination benefit 5,168 — — — — — Net periodic pension cost $ 32,495 $ 10,744 $ 11,953 $ 2,850 $ 2,611 $ 2,218 FBL Financial Group, Inc. share of net periodic pension cost $ 9,956 $ 3,404 $ 3,807 $ 1,671 $ 1,551 $ 1,260 Pension settlement charges were recognized after determining the total cash payments exceeded the sum of the service and interest cost for 2018. For years in which settlement charges occur, benefits paid as lump sum distributions are included with settlements. The special termination benefit represents a voluntary early retirement window offered in the Multiemployer Plan during 2018 that provided an additional two years of service and two years of age benefit enhancement. The Plans’ prior service costs are amortized using a straight-line amortization method over the average remaining service period or life expectancy of the employees, depending upon who is covered under each plan. For actuarial gains and losses, a corridor (10% of the greater of the projected benefit obligation or the market value of plan assets) is used to determine the amounts to amortize. For the Multiemployer Plan it is expected that net periodic pension cost in 2019 will include $9.4 million for amortization of the actuarial loss. For the Other Plans it is expected that net periodic pension cost in 2019 , included in accumulated other comprehensive income, will include $1.1 million for amortization of the actuarial loss. We expect contributions to be paid to the Multiemployer Plan by us and our affiliated and unaffiliated employers for 2019 to be approximately $15.0 million , of which $4.7 million is expected to be contributed by us. Expected benefits to be paid under the Multiemployer Plan are as follows: 2019 - $13.8 million , 2020 - $15.2 million , 2021 - $18.1 million , 2022 - $18.8 million , 2023 - $19.9 million and 2024 through 2028 - $111.8 million . Since the Other Plans are not funded, contributions are made as benefit obligations become due. Expected benefits to be paid under the Other Plans are as follows: 2019 - $3.9 million , 2020 - $2.2 million , 2021 - $3.2 million , 2022 - $2.5 million , 2023 - $2.2 million and 2024 through 2028 - $15.5 million . FBL’s Proportionate Share of Prepaid or Accrued Pension Cost Multiemployer Plan Other Plans As of and for the year ended December 31, As of and for the year ended December 31, 2018 2017 2018 2017 (Dollars in thousands) Amount recognized in FBL’s consolidated balance sheets Prepaid benefit cost $ 36,105 $ 36,858 $ 726 $ 740 Accrued benefit cost (12 ) — (19,480 ) (21,245 ) Net amount recognized $ 36,093 $ 36,858 $ (18,754 ) $ (20,505 ) Amount recognized in FBL’s accumulated other comprehensive income, before taxes (1) Net actuarial loss $ 11,126 $ 13,649 Net amount recognized $ 11,126 $ 13,649 (1) For our Multiemployer Plan, the underfunded portion of the pension benefit obligation is not required to be recognized as a liability in our consolidated balance sheets. The unrecognized liability for the underfunded status of our Multiemployer Plan totaled $3.9 million at December 31, 2018 and $30.6 million at December 31, 2017 . Weighted Average Assumptions Used to Determine Benefit Obligation December 31 2018 2017 Discount rate 4.24 % 3.72 % Annual salary increases 3.21 % 3.27 % The discount rate is estimated by projecting and discounting future benefit payments inherent in the projected benefit obligation using a commercially available “spot” yield curve constructed using techniques and a bond universe specifically selected to meet the accounting standard requirements. Weighted Average Assumptions Used to Determine Net Periodic Pension Cost Year Ended December 31, 2018 2017 2016 Discount rate 3.72 % 4.29 % 4.65 % Expected long-term return on plan assets 6.50 % 6.60 % 6.75 % Annual salary increases 3.27 % 3.31 % 3.31 % The Multiemployer Plan’s expected long-term return on assets represents the rate of earnings expected in the funds invested to provide for anticipated benefit payments. We have analyzed the expected rates of return and determined that the long-term return assumption should be revised downward in 2018 to 6.50% . Multiemployer Plan Assets The Multiemployer Plan assets are primarily invested in annuity products and insurance company pooled separate accounts that invest predominately in equity securities and real estate. Certain pension obligations that are fully funded through annuity contracts with Farm Bureau Life, are presented as funded annuity contracts below. For much of 2018 , excluding the funded annuity contracts, the Multiemployer Plan’s long-term investment allocation targets were as follows: 55% in fixed income investments, 35% in equities and 10% in alternative investments. During the fourth quarter of 2018, a portion of the fixed income investment and equities were transferred to a liability driven investing strategy. Upon implementing the liability driven investing strategy, the Multiemployer Plan’s long-term target investment allocation is 46.75% in fixed income investments, 29.75% in equities, 15% in the liability driven investing strategy and 8.5% in alternative investments. At December 31, 2018 , the Multiemployer Plan assets were invested approximately 53% in fixed income investments, 27% in equities, 16% in the liability driven investing strategy and 4% in alternative investments. The fixed income investments consist primarily of the group annuity contract and fixed income securities held in pooled separate accounts. The equity securities are in pooled separate accounts and mutual funds. The liability driven investing strategy consists of holdings of corporate bonds, United States government treasuries and cash. The alternative investments consist of interests in limited partnerships that own various liquid and illiquid assets. The investment strategy for the Multiemployer Plan is to (1) achieve a long-term return sufficient to satisfy all Multiemployer Plan obligations, (2) assume a prudent level of risk and (3) maintain adequate liquidity. The expected return on Multiemployer Plan assets is set at the long-term rate expected to be earned based on the long-term investment strategy of the Multiemployer Plan. In estimating the expected rate of return for each asset class, factors such as historical rates of return, expected future risk-free rates of return and anticipated returns given the risk profile of each asset class are analyzed. The valuation methodologies used for assets measured at fair value are: • Group and funded annuity contracts: contract value is equivalent to fair value, as the interest-crediting rates are periodically reset to align with market rates at the discretion of the issuer. • Pooled separate accounts: the net asset value of separate account shares is based on the latest quoted market price of the underlying investments or in the case of a real estate separate account, estimates of the current market value of the underlying property held. • Mutual funds: the net asset value of mutual funds is based on quoted market prices available in active markets. • Fixed maturities: the fair value of U.S. Treasuries is estimated using quoted market prices available in active markets. The fair value of corporate securities is obtained from third party pricing vendors. We have regular interaction with these vendors to ensure we understand their pricing methodologies and confirm they are utilizing observable market information. • Cash and cash equivalents: due to the short-term nature, the carrying amounts approximate fair value. • Alternative investments: the carrying value of the limited partnership interests reflects the Plan’s proportionate share of the net asset value of those partnerships, which is derived from the fair value of the underlying holdings, and as of December 31, 2018, excludes the net asset value of one limited partnership because that partnership’s fair value is measured using the net asset value per share practical expedient. The pension financial instruments measured and reported at fair value are classified and disclosed in one of the following categories: Level 1 - Unadjusted quoted prices in active markets for identical assets that are accessible to us at the measurement date. Level 2 - Inputs other than quoted prices in active markets for identical assets that are either directly or indirectly observable for substantially the full term of the asset or liability. Level 3 - Inputs are unobservable and require management’s judgment about the assumptions that market participants would use in pricing the assets. Fair Values of the Multiemployer Plan Assets by Asset Category and Hierarchy Levels December 31, 2018 Quoted prices in Significant other Significant Total (Dollars in thousands) Mutual funds: (1) U.S. equity funds $ 20,138 $ — $ — $ 20,138 International funds 35,854 — — 35,854 Pooled separate accounts: (1) Short-term fixed income funds — 510 — 510 Fixed income funds — 12,117 — 12,117 U.S. equity funds — 13,788 — 13,788 Real estate fund — 12,455 — 12,455 Annuities: (2) Group annuity contract — — 148,106 148,106 Funded annuity contracts — — 10,500 10,500 Fixed maturities: (3) Corporate — 24,002 — 24,002 United States government and agencies 25,039 — — 25,039 Alternative investments: (4) Limited partnerships — — 12,410 12,410 Cash and cash equivalents (5) 538 — — 538 Total $ 81,569 $ 62,872 $ 171,016 $ 315,457 December 31, 2017 Quoted prices in Significant other Significant Total (Dollars in thousands) Mutual funds: (1) U.S. equity funds $ 39,563 $ — $ — $ 39,563 International funds 40,349 — — 40,349 Pooled separate accounts: (1) Short-term fixed income funds — 793 — 793 Fixed income funds — 14,689 — 14,689 U.S. equity funds — 32,726 — 32,726 Real estate fund — 15,526 — 15,526 Annuities: (2) Group annuity contract — — 181,403 181,403 Funded annuity contracts — — 10,776 10,776 Alternative investments: (4) Limited partnerships — — 9,571 9,571 Total $ 79,912 $ 63,734 $ 201,750 $ 345,396 (1) Represents mutual funds and pooled separate account investments with Principal Life Insurance Company. (2) Represents group annuity contracts with Farm Bureau Life. (3) Represents bonds to support liability driven investing strategy. (4) Represents interests in several limited partnerships. As of December 31, 2018, a limited partnership with a fair value estimate of $0.6 million using net asset value per share as a practical expedient has not been classified in the fair value hierarchy above in accordance with fair value reporting guidance. (5) Represents approximate fair value of cash held. Level 3 Multiemployer Plan Asset Changes in Fair Value December 31, 2018 Return on assets December 31, Purchases Held at year end Sold during year Transfers into (out) of level 3 December 31, 2018 (Dollars in thousands) Group annuity contract $ 181,403 $ (21,353 ) $ 7,056 $ — $ (19,000 ) $ 148,106 Funded annuity contracts 10,776 (896 ) 620 — — 10,500 Limited partnerships 9,571 1,789 1,050 — — 12,410 Total $ 201,750 $ (20,460 ) $ 8,726 $ — $ (19,000 ) $ 171,016 December 31, 2017 Return on assets December 31, Purchases Held at year end Sold during year Transfers into (out) of level 3 December 31, 2017 (Dollars in thousands) Group annuity contract $ 141,782 $ 33,221 $ 6,400 $ — $ — $ 181,403 Funded annuity contracts 11,382 (1,258 ) 652 — — 10,776 Limited partnerships 8,447 314 810 — — 9,571 Total $ 161,611 $ 32,277 $ 7,862 $ — $ — $ 201,750 |
Postemployment Benefits Disclosure [Text Block] | Other Retirement Plans We participate with affiliated and unaffiliated employers in a 401(k) defined contribution plan, which covers substantially all employees. We match employee contributions and provide an additional discretionary contribution as summarized in the table below. Costs are allocated among the affiliates on a basis of time incurred by the respective employees for each company. Our expense related to this plan totaled $2.9 million in 2018 , $2.6 million in 2017 and $2.4 million in 2016 . Attained age 40 and 10 years of service at December 31, 2012 Accruing years of service in the Multiemployer Plan 100% Employer Match 50% Employer Match Discretionary Employer Contribution Yes Yes first 2% of employee’s contributions employee contributions between 2% and 4% No No No first 4% of employee’s contributions employee contributions between 4% and 6% 2.75% to 5.75% We have established deferred compensation plans for certain key current and former employees and have certain other benefit plans that provide for retirement and other benefits. Liabilities for these plans are accrued as the related benefits are earned. Certain of the assets related to these plans are on deposit with us and amounts relating to these plans are included in our financial statements. In addition, certain amounts included in the policy liabilities for interest sensitive products relate to deposit administration funds maintained by us on behalf of affiliates. In addition to benefits offered under the aforementioned benefit plans, we participate with affiliated and unaffiliated employers in a plan that provides group term life insurance benefits to retirees. We froze our portion of the plan on December 31, 2016 such that no new participants will enter the plan. During 2016, we recognized $0.2 million in curtailment gain related to freezing the group term life benefits to retirees. We also have two single-employer plans, frozen to new participants, that provide health and medical benefits to a small group of retirees. Postretirement benefit (income)/expense for this plan is allocated in a manner consistent with pension expense discussed above and totaled less than ($0.1) million in 2018 and ($0.1) million in 2017 and 2016 . Changes in the underfunded portion of these plans, reported in other comprehensive income, aggregated less than ($0.1) million in 2018 , ($0.1) million in 2017 and less than ($0.1) million in 2016 . During 2018, our allocated expense totaled $0.4 million related to 18 months of medical benefits to be provided to employees who accepted the voluntary early retirement window offered during 2018. |
Compensation and Employee Benefit Plans [Text Block] | Share-based Compensation Plans The share-based payment arrangements under our Class A Common Stock Compensation Plan are described below. Expenses have been fully recognized under this plan. We also have a Cash-Based Restricted Stock Unit Plan. We allocate a portion of the expense for these arrangements to affiliates; expense amounts below represent our share of these expenses. Compensation expense for arrangements under this plan totaled $1.7 million for 2018 , $1.9 million for 2017 and $2.3 million for 2016 . The income tax benefit recognized in the statements of operations for this arrangement totaled $0.6 million in 2018 , $1.0 million in 2017 and $1.2 million in 2016 . Stock Option Awards Prior to 2012, we granted stock options for Class A common stock to officers and employees, which have a contractual term of 10 years. Prior to 2009, we also granted stock options for Class A common stock to directors, which were fully vested upon grant and had a contractual term that varied with the length of time the director remained on the Board, up to 10 years. The exercise price for all options is equal to the fair value of the common stock on the grant date. Stock Option Activity Number of Shares Weighted-Average Weighted-Average Aggregate (Dollars in thousands, except per share data) Shares under option at January 1, 2018 23,868 $ 21.92 Exercised (12,692 ) 19.12 Forfeited or expired — — Shares under option at December 31, 2018 11,176 25.11 1.42 $ 453 Vested at December 31, 2018 11,176 $ 25.11 1.42 $ 453 Exercisable options at December 31, 2018 11,176 $ 25.11 1.42 $ 453 (1) Represents the difference between the share price and exercise price for each option, excluding options for which the exercise price is above the share price, at December 31, 2018. The intrinsic value of options exercised during the year totaled $0.7 million for 2018 , $0.8 million for 2017 and $3.2 million for 2016 . We issue new shares to satisfy stock option exercises. Cash received from stock options exercised totaled $0.3 million for 2018 , $0.7 million for 2017 and $2.5 million for 2016 . The actual tax benefit realized from stock options exercised totaled $0.1 million for 2018 , $0.2 million for 2017 and $1.0 million for 2016 . Cash-Based Restricted Stock Units We annually grant performance and non-performance cash-based restricted stock units to certain executives. The restricted stock units will vest and be paid out in cash over 5 years, contingent on continued employment with us. The performance units have the same vesting requirements, but are also contingent upon meeting a financial goal. The amount payable per unit awarded is equal to the price per share of the Company’s common stock at settlement of the award, and as such, we measure the value of the award each reporting period based on the current stock price. The effects of changes in the stock price during the service period are recognized as compensation cost over the service period. Restricted Stock Unit Activity Number of Units Weighted-Average Grant-Date Fair Value Restricted stock units at January 1, 2018 102,578 $ 52.85 Granted 24,639 71.20 Vested (40,231 ) 46.99 Forfeited or canceled (9,795 ) 60.73 Restricted stock units at December 31, 2018 77,191 60.76 The weighted average grant-date fair value per common share of restricted stock units granted was $71.20 in 2018 , $69.10 in 2017 and $60.34 in 2016 . Unrecognized compensation expense related to unvested restricted stock units based on the stock price at December 31, 2018 totaled $2.0 million . This expense is expected to be recognized over a weighted-average period of 1.89 years. Dividends are paid on restricted stock units upon vesting. Cash payments including dividends for restricted stock units totaled $3.3 million in 2018 and 2017 and 2.7 million in 2016 . Other We have a Director Compensation Plan under which non-employee directors on our Board may elect to receive a portion of their compensation in the form of cash or deferred cash-based stock units. Cash-based stock units outstanding under this plan totaled 25,016 at December 31, 2018 and 25,243 at December 31, 2017 . Prior to 2012, deferred stock units were used instead of deferred cash-based stock units. Under this plan, we have deferred stock units outstanding totaling 50,194 at December 31, 2018 and 53,254 at December 31, 2017 . At December 31, 2018 , there were 105,687 shares of Class A common stock available for future issuance under the Director Compensation Plan. We also have an Executive Salary and Bonus Deferred Compensation Plan under which certain officers of the Company were allowed to use their base salary and annual cash bonus to purchase deferred cash-based stock units. Cash-based stock units outstanding under this plan totaled 10,743 at December 31, 2018 and 11,661 at December 31, 2017 . Prior to 2012, deferred stock units were used instead of deferred cash-based stock units. Under this plan, we have deferred stock units outstanding totaling 48,312 at December 31, 2018 and 50,208 at December 31, 2017 . At December 31, 2018 , shares of Class A common stock available for future issuance under this plan totaled 95,304 . This plan was frozen to future deferrals on December 31, 2013. We also have an Executive Excess 401(k) Plan under which officers of the Company who met salary guidelines and 401(k) contribution guidelines were allowed to purchase unregistered deferred stock units. Under this plan, we have deferred stock units outstanding totaling 3,327 at December 31, 2018 and 3,175 at December 31, 2017 . This plan was frozen to future deferrals on December 31, 2013. |
Managment and Other Agreements
Managment and Other Agreements | 12 Months Ended |
Dec. 31, 2018 | |
Management and Other Agreements [Abstract] | |
Management and other agreements [Text Block] | Management and Other Agreements We have management agreements under which we provide general business, administrative and management services to Farm Bureau Property & Casualty Insurance Company and other affiliates. Fee income for these services totaled $2.0 million in 2018 and 2017 and $2.2 million in 2016 . In addition, as discussed in Note 1, we provide investment advisory services and lease property and equipment under agreements with Farm Bureau Property & Casualty, other affiliates and non-affiliates. We share certain office facilities and services with the IFBF and its affiliated companies. These expenses are allocated based on cost and time studies that are updated annually and consist primarily of rent, salaries and related expenses, travel and other operating costs. In addition, Farm Bureau Management Corporation, a wholly-owned subsidiary of the IFBF, provides certain services to us under a separate arrangement. We incurred related expenses totaling $1.2 million in 2018 , $1.1 million in 2017 and $1.0 million in 2016 . We also have an expense allocation agreement with Farm Bureau Property & Casualty Insurance Company for the use of property and equipment. Expense relating to this agreement totaled $0.3 million in 2018 , 2017 and 2016 . We have service agreements with the Farm Bureau-affiliated property-casualty companies operating within our marketing territory, including Farm Bureau Property & Casualty Insurance Company and another affiliate. Under the service agreements, the property-casualty companies are responsible for development and management of our agency force for a fee. We incurred expenses totaling $9.2 million in 2018 , $9.1 million in 2017 and $8.6 million in 2016 relating to these arrangements. We are licensed by the IFBF to use the “Farm Bureau” and “FB” designations in Iowa. In connection with this license, we incurred royalty expense totaling $0.6 million in 2018 , 2017 and 2016 . We have similar arrangements with other state Farm Bureau organizations in our market territory. Total royalty expense to Farm Bureau organizations other than the IFBF totaled $1.8 million in 2018 , 2017 and 2016 . The royalty agreement with the IFBF provides IFBF an option to terminate the agreement if our quarterly common stock dividend is less than $0.10 per share. |
Committments and Contingencies
Committments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 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. 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. Other We self-insure our employee health and dental claims. However, claims in excess of our self-insurance limits are fully insured. We fund insurance claims through a self-insurance trust. Deposits to the trust are made at an amount equal to our best estimate of claims to be paid during the period and a liability is established at each balance sheet date for any unpaid claims. Adjustments, if any, resulting in changes in the estimate of claims incurred are reflected in operations in the periods in which such adjustments are known. We lease our home office properties under a 10-year operating lease, which expires in 2021, from a wholly-owned subsidiary of the IFBF. Future remaining minimum lease payments under this lease, as of December 31, 2018 , are as follows: 2019 - $2.2 million , 2020 - $2.2 million and 2021 - $2.2 million . Rent expense for the lease totaled $4.3 million in 2018 and $4.1 million in 2017 and 2016 . These amounts are net of $0.2 million in 2018 , 2017 and 2016 in amortization of a deferred gain on the exchange of our home office properties for common stock in 1998. The remaining unamortized deferred gain totaled $0.5 million at December 31, 2018 and $0.7 million at December 31, 2017 . From time to time, assessments are levied on our insurance subsidiaries by life and health guaranty associations in most states in which the subsidiaries are licensed. These assessments, which are accrued for, are to cover losses of policyholders of insolvent or rehabilitated companies. In some states, these assessments can be partially recovered through a reduction in future premium taxes. Expenses for guaranty fund assessments, net of related premium tax offsets, totaled less than $0.1 million in 2018 , 2017 and 2016 . |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings per Share Computation of Earnings per Common Share Year ended December 31, 2018 2017 2016 (Dollars in thousands, except per share data) Numerator: Net income attributable to FBL Financial Group, Inc. $ 93,793 $ 187,305 $ 102,842 Less: Dividends on Series B preferred stock 150 150 150 Income available to common stockholders $ 93,643 $ 187,155 $ 102,692 Denominator: Weighted-average shares - basic 24,932,189 25,038,334 24,985,400 Effect of dilutive securities - stock-based compensation 12,412 19,111 43,683 Weighted-average shares - diluted 24,944,601 25,057,445 25,029,083 Earnings per common share $ 3.76 $ 7.47 $ 4.11 Earnings per common share - assuming dilution $ 3.75 $ 7.47 $ 4.10 There were no antidilutive stock options outstanding in any period presented. |
Statutory Insurance Information
Statutory Insurance Information | 12 Months Ended |
Dec. 31, 2018 | |
Statutory Insurance Information [Abstract] | |
Statutory insurance information [Text Block] | Statutory Insurance Information The statutory financial statements of Farm Bureau Life and Greenfields are prepared in accordance with the accounting practices prescribed or permitted by the Insurance Division of the state of Iowa. The insurance division has adopted the accounting guidance contained in the National Association of Insurance Commissioners (NAIC) Accounting Practices and Procedures manual (NAIC SAP) as the prescribed accounting practice for insurance companies domiciled in Iowa. The insurance division may permit accounting practices that differ from those prescribed by NAIC SAP. Farm Bureau Life has adopted such practices related to index products and option accounting which resulted in $7.5 million lower net income and $2.6 million higher statutory surplus than NAIC SAP in 2018. These practices resulted in an immaterial difference to net income and no difference to statutory surplus in 2017 or 2016. Several differences exist between GAAP and statutory accounting practices. Principally, under statutory accounting, deferred acquisition costs are not capitalized, fixed maturity securities are generally carried at amortized cost, insurance liabilities are presented net of reinsurance, contract holder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. Statutory Information of our Insurance Subsidiaries Year ended December 31, 2018 2017 2016 (Dollars in thousands) Farm Bureau Life: Net gain from operations (excludes impact of realized gains and losses on investments) $ 100,819 $ 106,062 $ 106,143 Net income 103,923 104,947 100,657 Greenfields: Net loss from operations (excludes impact of realized gains and losses on investments) (321 ) (192 ) (443 ) Net loss (321 ) (192 ) (443 ) Statutory Information of our Insurance Subsidiaries - Continued Farm Bureau Life Greenfields December 31, December 31, 2018 2017 2018 2017 (Dollars in thousands) Total capital and surplus $ 637,205 $ 615,973 $ 8,677 $ 9,006 Unassigned surplus (deficit) 503,722 482,490 (2,123 ) (1,794 ) Risk-Based Capital measurements: Total adjusted capital 704,541 682,570 8,688 9,028 Company action level capital 127,632 123,628 218 172 RBC Ratio 552 % 552 % 3,978 % 5,249 % State laws specify regulatory actions if an insurer’s risk-based capital (RBC) ratio, a measure of solvency, falls below certain levels. The NAIC has a standard formula for annually assessing RBC based on the various risk factors related to an insurance company’s capital and surplus, including insurance, business, asset and interest rate risks. The insurance regulators monitor the level of RBC against a statutory “authorized control level” RBC at which point regulators have the option to assume control of the insurance company. The company action level RBC is 200% of the authorized control level and is the first point at which any action would be triggered. Farm Bureau Life’s ability to pay dividends to the parent company is restricted by the Iowa Insurance Holding Company Act to earned surplus arising from its business as of the date the dividend is paid. In addition, prior approval of the Iowa Insurance Commissioner is required for a dividend distribution of cash or other property whose fair value, together with that of other dividends made within the preceding 12 months, exceeds the greater of (i) 10% of policyholders’ surplus as of the preceding year end, or (ii) the statutory net gain from operations of the insurer for the preceding calendar year. As shown in the tables above, at December 31, 2018 , Farm Bureau Life’s net gain from operations of $100.8 million , exceeded 10% of statutory surplus; accordingly, that amount is the maximum available for distribution to FBL Financial Group, Inc. without regulatory approval during 2019 . Timing of such dividends during the year is limited based on the timing of dividends paid within the preceding 12 months. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Information [Abstract] | |
Segment Reporting Disclosure [Text Block] | 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. The Annuity segment primarily consists of fixed rate and indexed annuities and supplementary contracts (some of which involve life contingencies). Fixed rate and indexed annuities provide for tax-deferred savings and supplementary contracts provide for the systematic repayment of funds that accumulate interest. Fixed rate annuities primarily consist of flexible premium deferred annuities, but also include single premium deferred and immediate contracts. With fixed rate annuities, we bear the underlying investment risk and credit interest to the contracts at rates we determine, subject to interest rate guarantees. With indexed annuities, we bear the underlying investment risk and credit interest in an amount equal to a percentage of the gain in a specified market index, subject to minimum guarantees. The Life Insurance segment consists of whole life, term life and universal life policies, including indexed universal life (IUL). These policies provide benefits upon the death of the insured and may also allow the customer to build cash value on a tax-deferred basis. With IUL, we bear the underlying investment risk and credit interest in an amount equal to a percentage of the gain in a specified market index, subject to minimum guarantees. The Corporate and Other segment consists of the following corporate items and products/services that do not meet the quantitative threshold for separate segment reporting: • investments and related investment income not specifically allocated to our product segments, • interest expense, • closed blocks of variable annuity, variable universal life insurance and accident and health insurance products, • advisory services for the management of investments and other companies, • marketing and distribution services for the sale of mutual funds and insurance products not issued by us, and • leasing services with affiliates. We use non-GAAP operating income (a measure of earnings not recognized under GAAP), in addition to net income, to measure our performance. Non-GAAP operating income, for the periods presented, consists of net income adjusted to exclude the impact of changes in federal statutory income tax rates and tax laws, realized gains and losses on investments and the change in fair value of derivatives and equity securities, which can fluctuate greatly from period to period. These fluctuations make it difficult to analyze core operating trends. In addition, for derivatives not designated as hedges, there is a mismatch between the valuation of the asset and liability when deriving net income (loss). Specifically, call options relating to our indexed business are one-year assets while the embedded derivatives in the indexed contracts represent the rights of the contract holder to receive index credits over the entire period the indexed annuities are expected to be in force. Non-GAAP 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 non-GAAP 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. We analyze our segment results based on pre-tax non-GAAP operating income. Accordingly, income taxes are not allocated to the segments. In addition, non-GAAP operating results are reported net of transactions between the segments. Adjustments to net income are net of amortization of unearned revenue reserves, deferred acquisition costs and value of insurance in force acquired, as well as changes in interest sensitive product reserves and income taxes attributable to these items. While not applicable for the periods reported herein, our non-GAAP operating income policy also calls for adjustments to net income relating to the following: • settlements or judgments arising from lawsuits, net of any recoveries from third parties, • the cumulative effect of changes in accounting principles and • discontinued operations. Reconciliation Between Net Income and Non-GAAP Operating Income Year ended December 31, 2018 2017 2016 (Dollars in thousands) Net income attributable to FBL Financial Group, Inc. (1) $ 93,793 $ 187,305 $ 102,842 Net income adjustments: Initial impact of the Tax Act (2) (617 ) (81,157 ) — Net realized gains/losses on investments (3) (4) 9,546 459 713 Change in fair value of derivatives (3) 6,188 (2,549 ) (1,485 ) Non-GAAP operating income (1) $ 108,910 $ 104,058 $ 102,070 Financial Information Concerning our Operating Segments Year ended December 31, 2018 2017 2016 (Dollars in thousands) Pre-tax non-GAAP operating income: Annuity $ 62,846 $ 68,821 $ 66,025 Life Insurance 47,680 53,856 55,977 Corporate and Other (1) 16,013 23,350 22,095 Total pre-tax non-GAAP operating income (1) 126,539 146,027 144,097 Income taxes on non-GAAP operating income (1) (17,629 ) (41,969 ) (42,027 ) Non-GAAP operating income (1) $ 108,910 $ 104,058 $ 102,070 Non-GAAP operating revenues: Annuity $ 223,996 $ 224,184 $ 214,486 Life Insurance 430,194 418,593 414,446 Corporate and Other 93,681 94,340 92,703 747,871 737,117 721,635 Net realized gains/losses on investments (3) (4) (12,455 ) (1,469 ) (1,771 ) Change in fair value of derivatives (3) (15,790 ) 2,263 6,550 Consolidated revenues $ 719,626 $ 737,911 $ 726,414 Net investment income: Annuity $ 218,823 $ 219,700 $ 210,679 Life Insurance 158,003 158,318 154,427 Corporate and Other 33,272 34,918 32,514 410,098 412,936 397,620 Change in fair value of derivatives (15,480 ) 2,263 6,550 Consolidated net investment income $ 394,618 $ 415,199 $ 404,170 Depreciation and amortization: Annuity $ 9,335 $ 6,489 $ 8,253 Life Insurance 16,515 18,720 15,117 Corporate and Other 7,025 (1,120 ) 5,178 32,875 24,089 28,548 Net realized gains (losses) on investments (3) (184 ) (240 ) (673 ) Change in fair value of derivatives (3) (1,598 ) (639 ) 562 Consolidated depreciation and amortization $ 31,093 $ 23,210 $ 28,437 Operating Segment Assets December 31, 2018 2017 (Dollars in thousands) Assets: Annuity $ 4,627,277 $ 4,608,735 Life Insurance 3,528,561 3,367,562 Corporate and Other (1) 1,554,634 1,696,999 9,710,472 9,673,296 Unrealized gains in accumulated other comprehensive income (5) 123,158 380,105 Consolidated assets (1) $ 9,833,630 $ 10,053,401 (1) Prior period amounts have been adjusted to reflect the accounting change for LIHTC investments. See Note 1 to our consolidated financial statements for additional information. (2) Amount represents a change in our deferred tax assets and liabilities due to the enactment of the Tax Act. See Note 5 to our consolidated financial statements for additional information. (3) Amounts are net of adjustments, as applicable, to amortization of unearned revenue reserves, deferred acquisition costs, value of insurance in force acquired, interest sensitive product reserves and income taxes attributable to these items. (4) Beginning in 2018, amounts include the change in fair value of equity securities due to a change in accounting guidance. See Note 1 to our consolidated financial statements for additional information. (5) Amounts are net adjustments for assumed changes in deferred acquisition costs and value of insurance in force acquired attributable to these items. Depreciation and amortization related to property and equipment are allocated to the product segments while the related property, equipment and capitalized software are allocated to the Corporate and Other segment. Depreciation and amortization for the Corporate and Other segment include $4.5 million for 2018 , $4.1 million for 2017 and $4.4 million for 2016 relating to leases with affiliates. In the consolidated statements of operations, we record these depreciation amounts net of related lease income from affiliates. Interest expense is attributable to the Corporate and Other segment. Expenditures for long-lived assets were not significant during the periods presented above. Goodwill at December 31, 2018 and 2017 was allocated to the segments as follows: Annuity ( $3.9 million ) and Life Insurance ( $6.1 million ). Equity income related to securities and indebtedness of related parties is attributable to the Life Insurance and Corporate and Other segments. As discussed in Note 1, LIHTC investments are no longer included in equity income and prior period amounts have been adjusted to reflect the accounting change. The following chart provides the related equity income by segment. Equity Income by Operating Segment Year ended December 31, 2018 2017 2016 (Dollars in thousands) Pre-tax equity income: Life Insurance $ 3,840 $ 2,741 $ — Corporate and Other 1,778 1,243 3,490 Total pre-tax equity income 5,618 3,984 3,490 Income taxes (1,179 ) (1,394 ) (1,221 ) Equity income, net of related income taxes $ 4,439 $ 2,590 $ 2,269 Premiums collected, which is not a measure used in financial statements prepared according to GAAP, include 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 $640.1 million in 2018 , $631.0 million in 2017 and $689.7 million in 2016 . 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 Year ended December 31, 2018 2017 2016 (Dollars in thousands) Traditional and universal life insurance premiums collected $ 304,229 $ 292,344 $ 281,551 Premiums collected on interest sensitive products (106,609 ) (97,963 ) (85,622 ) Traditional life insurance premiums collected 197,620 194,381 195,929 Change in due premiums and other 692 949 985 Traditional life insurance premiums as included in the Consolidated Statements of Operations. $ 198,312 $ 195,330 $ 196,914 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 Year ended December 31, 2018 2017 2016 (Dollars in thousands) Annuity Surrender charges and other $ 5,173 $ 4,484 $ 3,803 Life Insurance Administration charges $ 16,944 $ 15,487 $ 14,170 Cost of insurance charges 50,727 46,096 48,111 Surrender charges 2,352 1,913 1,181 Amortization of policy initiation fees 3,972 1,437 (24 ) Total $ 73,995 $ 64,933 $ 63,438 Corporate and Other Administration charges $ 5,021 $ 5,332 $ 5,547 Cost of insurance charges 29,151 29,670 29,805 Surrender charges 92 150 213 Separate account charges 8,535 8,246 7,957 Amortization of policy initiation fees 822 121 1,165 Total $ 43,621 $ 43,519 $ 44,687 Consolidated interest sensitive product charges as included in the Statements of Operations $ 122,789 $ 112,936 $ 111,928 Cost of insurance charges in the Life Insurance segment decreased in 2017, compared to 2016, due to a $3.2 million correction of fees charged during prior periods on a closed block of business. Changes in amortization of policy initiation fees, compared to the prior year periods, is primarily due to the impact of unlocking assumptions used in the calculation of unearned revenue reserves. Premium Concentration by State Year ended December 31, 2018 2017 2016 Life and annuity collected premiums: Iowa 25.5 % 25.9 % 25.1 % Kansas 19.2 18.1 19.1 Oklahoma 7.9 8.2 8.0 |
Quarterly Financial Information
Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information [Abstract] | |
Quarterly Financial Information [Text Block] | Quarterly Financial Information (Unaudited) Unaudited Quarterly Results of Operations 2018 Quarter ended March 31, June 30, September 30, December 31, (Dollars in thousands, except per share data) Premiums and product charges $ 79,595 $ 81,997 $ 79,285 $ 80,224 Net investment income 101,022 103,974 105,757 83,865 Realized gains (losses) on investments (2,787 ) 841 (759 ) (9,569 ) Total revenues 182,430 190,449 188,111 158,636 Net income attributable to FBL Financial Group, Inc. 23,565 32,803 31,010 6,415 Earnings per common share $ 0.94 $ 1.31 $ 1.24 $ 0.26 Earnings per common share - assuming dilution $ 0.94 $ 1.31 $ 1.24 $ 0.26 2017 Quarter ended March 31, June 30, September 30, December 31, (Dollars in thousands, except per share data) Premiums and product charges $ 77,635 $ 79,718 $ 75,091 $ 75,822 Net investment income 100,994 103,908 102,950 107,347 Realized gains (losses) on investments (469 ) 921 14 (1,420 ) Total revenues 181,920 188,997 181,556 185,438 Net income attributable to FBL Financial Group, Inc. 25,144 32,054 26,127 103,980 Earnings per common share $ 1.00 $ 1.28 $ 1.04 $ 4.15 Earnings per common share - assuming dilution $ 1.00 $ 1.28 $ 1.04 $ 4.15 Net income and earnings per share for the quarter ended December 31, 2017 reflect the initial impact of the Tax Act. See Note 1 and Note 5 for more details. During 2018, we voluntarily changed our accounting policy for low income housing tax credit (LIHTC) investments from the equity method to the proportional amortization method, see Note 1 for more details. Prior periods have been adjusted. |
Sch I. Schedule of Investments
Sch I. Schedule of Investments | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Investments [Abstract] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Text Block] | Schedule I - Summary of Investments - Other Than Investments in Related Parties FBL FINANCIAL GROUP, INC. December 31, 2018 Column A Column B Column C Column D Type of Investment Cost (1) Value Amount at which (Dollars in thousands) Fixed maturities, available for sale: Bonds: Corporate $ 3,231,846 $ 3,279,885 $ 3,279,885 Mortgage- and asset-backed 2,155,137 2,192,996 2,192,996 United States Government and agencies 19,673 20,535 20,535 States and political subdivisions 1,449,621 1,539,629 1,539,629 Total 6,856,277 $ 7,033,045 7,033,045 Equity securities: Common stocks: Banks, trusts and insurance companies 5,303 $ 5,261 5,261 Industrial, miscellaneous and all other 3,301 3,301 3,301 Non-redeemable preferred stocks 84,960 84,295 84,295 Total 93,564 $ 92,857 92,857 Mortgage loans (2) 1,042,936 1,039,829 Investment real estate (2) 1,703 1,543 Policy loans 197,366 197,366 Short-term investments 15,713 15,713 Other investments 36,704 33,765 Total investments $ 8,244,263 $ 8,414,118 (1) Cost adjusted for repayments and amortization of premiums and accrual of discounts for fixed maturities and short-term investments; original cost for equity securities, real estate and other investments; and unpaid principal balance for mortgage loans and policy loans. (2) Amount shown on balance sheet differs from cost due to allowance for possible losses. |
Sch II - Condensed Financial In
Sch II - Condensed Financial Information on Registrant | 12 Months Ended |
Dec. 31, 2018 | |
Schedule II. Condensed Financial Information of Registrant [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Schedule II - Condensed Financial Information of Registrant FBL FINANCIAL GROUP, INC. (PARENT COMPANY) Condensed Balance Sheets (Dollars in thousands) December 31, 2018 2017 Assets Investments in subsidiaries (eliminated in consolidation) $ 1,233,663 $ 1,410,937 Fixed maturities - available for sale, at fair value (amortized cost: 2018 - $21,420; 2017 - $24,936) 25,647 29,430 Equity securities (cost: 2018 - $5,304; 2017 - $3,764) 5,262 4,313 Short-term investments 5,607 6,460 Cash and cash equivalents 12,116 23,954 Amounts receivable from affiliates 935 1,142 Amounts receivable from subsidiaries (eliminated in consolidation) 3,719 3,807 Accrued investment income 18 16 Current income taxes recoverable 338 — Deferred income tax assets 6,474 7,098 Other assets 13,257 13,381 Total assets $ 1,307,036 $ 1,500,538 Liabilities and stockholders’ equity Liabilities: Accrued expenses and other liabilities $ 25,896 $ 26,093 Amounts payable from subsidiaries (eliminated in consolidation) 1 6 Current income taxes — 372 Long-term debt payable to non-affiliates 97,000 97,000 Total liabilities 122,897 123,471 Stockholders’ equity: Preferred stock 3,000 3,000 Class A common stock 152,652 153,589 Class B common stock 72 72 Accumulated other comprehensive income 91,318 284,983 Retained earnings 937,097 935,423 Total stockholders’ equity 1,184,139 1,377,067 Total liabilities and stockholders’ equity $ 1,307,036 $ 1,500,538 See accompanying notes to condensed financial statements. Schedule II -Condensed Financial Information of Registrant (Continued) FBL FINANCIAL GROUP, INC. (PARENT COMPANY) Condensed Statements of Operations (Dollars in thousands) Year Ended December 31, 2018 2017 2016 Revenues: Net investment income $ 2,381 $ 1,972 $ 2,013 Realized gains (losses) on investments (591 ) — — Dividends from subsidiaries (eliminated in consolidation) 91,997 71,500 85,900 Management fee income from affiliates 2,001 2,001 2,179 Management fee income from subsidiaries (eliminated in consolidation) 6,458 5,805 5,652 Other income 2 2 2 Total revenues 102,248 81,280 95,746 Expenses: Interest expense 4,850 4,850 4,850 General and administrative expenses 8,605 8,408 9,002 Total expenses 13,455 13,258 13,852 88,793 68,022 81,894 Income tax benefit (expense) 2,175 (2,321 ) 2,349 Income before equity in undistributed income of subsidiaries 90,968 65,701 84,243 Equity in undistributed income of subsidiaries (eliminated in consolidation) 2,825 121,604 18,599 Net income $ 93,793 $ 187,305 $ 102,842 See accompanying notes to condensed financial statements. Schedule II - Condensed Financial Information of Registrant (Continued) FBL FINANCIAL GROUP, INC. (PARENT COMPANY) Condensed Statements of Cash Flows (Dollars in thousands) Year ended December 31, 2018 2017 2016 Net cash provided by (used in) operating activities $ (2,102 ) $ 417 $ (4,342 ) Investing activities Sales, maturities or redemptions of fixed maturities - available for sale 4,641 5,478 5,641 Acquisitions of equity securities - available for sale (1,147 ) (702 ) (1,397 ) Short-term investments, net change 853 (472 ) 7,078 Dividends from subsidiaries (eliminated in consolidation) 91,997 71,500 85,900 Net cash provided by investing activities 96,344 75,804 97,222 Financing activities Excess tax deductions on stock-based compensation — — 846 Issuance (repurchase) of common stock, net (15,152 ) 330 1,840 Capital contribution to subsidiary (7,800 ) (2,000 ) — Dividends paid (83,128 ) (81,400 ) (91,602 ) Net cash used in financing activities (106,080 ) (83,070 ) (88,916 ) Increase (decrease) in cash and cash equivalents (11,838 ) (6,849 ) 3,964 Cash and cash equivalents at beginning of year 23,954 30,803 26,839 Cash and cash equivalents at end of year $ 12,116 $ 23,954 $ 30,803 Supplemental disclosure of cash flow information Cash received (paid) during the year for: Income taxes $ 1,617 $ 2,849 $ 5,486 Interest (4,850 ) (4,850 ) (4,850 ) See accompanying notes to condensed financial statements. Schedule II - Condensed Financial Information of Registrant (Continued) FBL FINANCIAL GROUP, INC. (PARENT COMPANY) Notes to Condensed Financial Statements December 31, 2018 1. Basis of Presentation The accompanying condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto of FBL Financial Group, Inc. In the parent company only financial statements, our investments in subsidiaries are stated at cost plus equity in undistributed earnings of subsidiaries since the date of acquisition. In addition, the carrying value includes net unrealized gains/losses on the subsidiaries’ investments classified as “available for sale.” 2. Dividends from Subsidiaries The parent company received dividends in the form of cash totaling $92.0 million in 2018 , $71.5 million in 2017 and $85.9 million in 2016 . 3 . Debt See Note 6 to the consolidated financial statements included in Item 8 for a description of the parent company’s debt The company’s debt matures in 2047. 4. Income Taxes The Tax Act made broad changes to the U.S. tax code impacting our companies, including reducing the federal corporate tax rate from 35% to 21% and numerous base-broadening provisions. At December 31, 2017, we recorded a provisional estimate of the impact of the Tax Act, which resulted in a reduction of net deferred tax liabilities of $4.2 million . At December 31, 2018, the accounting for the Tax Act is complete, as the provisional estimates used have been finalized by filing the 2017 income tax return. This resulted in no significant impact to earnings. Additional estimates have been adjusted, resulting only in reclassification between deferred tax items, such as the deferred tax asset on future policy benefits. In these cases, the overall impact of the Tax Act did not change from 2017. |
Sch III Supplementary Insurance
Sch III Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2018 | |
Schedule III. Supplementary Insurance Information [Abstract] | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Disclosure [Text Block] | Schedule III - Supplementary Insurance Information FBL FINANCIAL GROUP, INC. Column A Column B Column C Column D Column E Deferred acquisition costs Future policy Unearned Other (Dollars in thousands) December 31, 2018: Annuity $ 93,819 $ 4,036,152 $ — $ 338,646 Life Insurance 308,937 2,776,656 19,427 194,879 Corporate and Other 62,778 416,403 11,623 30,354 Impact of unrealized gains/losses (46,732 ) 1,642 (5,134 ) — Total $ 418,802 $ 7,230,853 $ 25,916 $ 563,879 December 31, 2017: Annuity $ 92,116 $ 3,963,187 $ — $ 355,877 Life Insurance 287,421 2,677,519 17,043 201,693 Corporate and Other 70,247 419,411 11,986 32,083 Impact of unrealized gains/losses (147,173 ) 18,499 (12,705 ) — Total $ 302,611 $ 7,078,616 $ 16,324 $ 589,653 December 31, 2016: Annuity $ 88,762 $ 3,827,295 $ — $ 364,966 Life Insurance 267,545 2,573,276 13,526 199,944 Corporate and Other 69,664 417,524 11,611 30,543 Impact of unrealized gains/losses (95,647 ) 3,795 (4,215 ) — Total $ 330,324 $ 6,821,890 $ 20,922 $ 595,453 Schedule III - Supplementary Insurance Information (Continued) FBL FINANCIAL GROUP, INC. Column A Column F Column G Column H Column I Column J Premium Net Benefits, Amortization Other (Dollars in thousands) December 31, 2018: Annuity $ 5,173 $ 218,823 $ 124,015 $ 11,243 $ 25,892 Life Insurance 272,797 158,003 276,571 15,264 84,389 Corporate and Other 43,622 33,272 34,465 8,869 8,637 Change in fair value of derivatives (310 ) (15,480 ) (6,065 ) (1,893 ) — Impact of realized gains/losses (1) (181 ) — (24 ) (346 ) — Total $ 321,101 $ 394,618 $ 428,962 $ 33,137 $ 118,918 December 31, 2017: Annuity $ 4,484 $ 219,700 $ 122,224 $ 8,506 $ 24,633 Life Insurance 260,780 158,318 264,657 14,368 78,313 Corporate and Other 43,517 34,918 39,060 488 9,425 Change in fair value of derivatives — 2,263 (1,021 ) (639 ) — Impact of realized gains/losses (515 ) — (19 ) (216 ) — Total $ 308,266 $ 415,199 $ 424,901 $ 22,507 $ 112,371 December 31, 2016: Annuity $ 3,803 $ 210,679 $ 113,543 $ 11,185 $ 23,733 Life Insurance 260,331 154,427 261,757 11,038 75,100 Corporate and Other 44,716 32,514 37,296 6,078 8,912 Change in fair value of derivatives — 6,550 3,704 562 — Impact of realized gains/losses (8 ) — (32 ) (638 ) (3 ) Total $ 308,842 $ 404,170 $ 416,268 $ 28,225 $ 107,742 (1) Beginning in 2018, amount includes changes in fair value of equity securities. |
Sch IV Reinsurance
Sch IV Reinsurance | 12 Months Ended |
Dec. 31, 2018 | |
Schedule IV. Reinsurance [Abstract] | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Text Block] | Schedule IV - Reinsurance FBL FINANCIAL GROUP, INC. Column A Column B Column C Column D Column E Column F Gross Ceded to Assumed Net amount Percent of (Dollars in thousands) Year ended December 31, 2018: Life insurance in force, at end of year $ 64,290,040 $ 14,029,567 $ 455,176 $ 50,715,649 0.9 % Insurance premiums and other considerations: Interest sensitive product charges $ 121,456 $ 1,044 $ 2,377 $ 122,789 1.9 % Traditional life insurance premiums 223,960 25,779 131 198,312 0.1 % Accident and health premiums 6,038 5,627 — 411 — $ 351,454 $ 32,450 $ 2,508 $ 321,512 0.8 % Year ended December 31, 2017: Life insurance in force, at end of year $ 62,667,310 $ 14,086,576 $ 487,284 $ 49,068,018 1.0 % Insurance premiums and other considerations: Interest sensitive product charges $ 111,616 $ 1,021 $ 2,341 $ 112,936 2.1 % Traditional life insurance premiums 220,866 25,832 296 195,330 0.2 % Accident and health premiums 6,486 6,069 — 417 — $ 338,968 $ 32,922 $ 2,637 $ 308,683 0.9 % Year ended December 31, 2016: Life insurance in force, at end of year $ 60,753,614 $ 14,258,457 $ 523,538 $ 47,018,695 1.1 % Insurance premiums and other considerations: Interest sensitive product charges $ 110,608 $ 1,003 $ 2,323 $ 111,928 2.1 % Traditional life insurance premiums 222,037 25,470 347 196,914 0.2 % Accident and health premiums 6,956 6,585 — 371 — $ 339,601 $ 33,058 $ 2,670 $ 309,213 0.9 % |
Significant Accounting Polici_2
Significant Accounting Policies Level 2 (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Nature of Business FBL Financial Group, Inc. (we or the Company), majority owned by the Iowa Farm Bureau Federation (IFBF), operates predominantly in the life insurance industry through its principal subsidiary, Farm Bureau Life Insurance Company (Farm Bureau Life). Farm Bureau Life markets individual life insurance policies and annuity contracts to Farm Bureau members and other individuals and businesses in the Midwestern and Western sections of the United States through an exclusive agency force. Greenfields Life Insurance Company (Greenfields), a subsidiary of Farm Bureau Life, offers life and annuity products in the state of Colorado. Several subsidiaries support various functional areas of Farm Bureau Life and other affiliates by providing investment advisory, marketing and distribution, and leasing services. In addition, we manage two Farm Bureau affiliated property-casualty companies. |
Consolidation, Policy | Consolidation Our consolidated financial statements include the financial statements of the Company and its direct and indirect subsidiaries. All significant intercompany transactions have been eliminated. |
Voluntary Change of Accounting Policy [Policy Text Block] | Voluntary Accounting Policy Change During 2018, we voluntarily changed our accounting policy for low income housing tax credit (LIHTC) investments from the equity method to the proportional amortization method. We believe the proportional amortization method is preferable because it better reflects the economics of an investment that is made for the primary purpose of receiving tax credits and other tax benefits and is consistent with the accounting method used by most life insurance companies who have disclosed their accounting policies for LIHTC investments. In addition to a change in the timing of the recognition of income or loss on LIHTC investments, there are also differences in how these investments are reported within our consolidated financial statements. The unamortized cost of the LIHTC investments is now reflected in the "Other asset" line instead of the "Securities and indebtedness of related parties" line on the consolidated balance sheets and income/expense from LIHTC investments is now reflected in the "Income taxes" line instead of the "Equity income" line on the consolidated statements of operations. As a result of this accounting policy change, the opening balance as of January 1, 2016 of retained earnings was reduced by $0.3 million , as shown on the consolidated statements of changes in stockholders’ equity. In addition, the following presents the effect of the change on financial statement line items for prior periods that were retrospectively adjusted: Consolidated Balance Sheet Impact December 31, 2017 As Originally Reported As Adjusted Effect of Change (Dollars in thousands) Assets Securities and indebtedness of related parties $ 130,240 $ 47,823 $ (82,417 ) Current income taxes recoverable 3,269 6,764 3,495 Other assets 112,054 177,764 65,710 Total assets $ (13,212 ) Liabilities and stockholders’ equity Deferred income taxes 131,912 130,425 $ (1,487 ) Retained earnings 947,148 935,423 (11,725 ) Total liabilities and stockholders’ equity $ (13,212 ) Consolidated Statements of Operations Impact Year ended December 31, 2017 Year ended December 31, 2016 As Originally Reported As Adjusted Effect of Change As Originally Reported As Adjusted Effect of Change (Dollars in thousands) Revenues: Net impairment loss recognized in earnings $ (3,986 ) $ (1,553 ) $ 2,433 $ (4,869 ) $ (4,869 ) $ — Income taxes 40,729 39,983 (746 ) (46,010 ) (41,220 ) 4,790 Equity income (loss), net of related income taxes 11,299 2,590 (8,709 ) 11,440 2,269 (9,171 ) Net income (loss) attributable to FBL Financial Group, Inc. $ (7,022 ) $ (4,381 ) Earnings (loss) per common share - basic and assuming dilution $ (0.28 ) $ (0.18 ) Net income would have been $0.8 million lower ($0.03 per basic and diluted share) for the year ended December 31, 2018 if the company had continued to record LIHTC investments using the equity method. |
Reclassification, Policy [Policy Text Block] | Reclassifications In addition to reclassifications related to LIHTC investments discussed above, in 2018 we began reporting our holdings of Federal Home Loan Bank of Des Moines (FHLB) common stock, which we are required to hold as a member of the FHLB system, as other investments rather than equity securities as the stock is restricted in nature. The 2017 consolidated financial statements have been reclassified to conform to the current financial statement presentation. |
Marketable Securities, Policy | Fixed Maturities and Equity Securities Fixed maturities are comprised of bonds and redeemable preferred stock and are designated as “available for sale.” Available-for-sale securities, with the exception of interest-only bonds, are reported at fair value and unrealized gains and losses on these securities are included directly in stockholders’ equity as a component of AOCI. The unrealized gains and losses, included in AOCI, are reduced by a provision for deferred income taxes and adjustments to deferred acquisition costs, value of insurance in force acquired, unearned revenue reserves and policyholder liabilities that would have been required as a charge or credit to income had such amounts been realized. Interest-only bonds are considered to have an embedded derivative feature. Accordingly, unrealized gains and losses relating to these securities are recorded as a component of net investment income in the consolidated statements of operations. Premiums and discounts for all fixed maturity securities are amortized/accreted into investment income over the life of the security using the effective interest method. Amortization/accrual of premiums and discounts on mortgage- and asset-backed securities incorporates prepayment assumptions to estimate the securities’ expected lives. Subsequent revisions in assumptions are recorded using the retrospective or prospective method. Under the retrospective method used for mortgage-backed and asset-backed securities of high credit quality (ratings equal to or greater than “AA” or an equivalent rating by a nationally recognized rating agency at the time of acquisition or that are backed by a U.S. agency), amortized cost of the security is adjusted to the amount that would have existed had the revised assumptions been in place at the date of acquisition. The adjustments to amortized cost are recorded as a charge or credit to net investment income. Under the prospective method, which is used for all other mortgage-backed and asset-backed securities, future cash flows are estimated and interest income is recognized going forward using the new internal rate of return. Beginning in 2018, equity securities, comprised of mutual funds and common and non-redeemable preferred stocks are reported at fair value with unrealized gains and losses included in the statement of operations. Prior to 2018, these securities were designated as “available for sale” and reported at fair value with the change in unrealized gains and losses included in AOCI. See the preceding table regarding new accounting pronouncements for further discussion of the accounting change. |
Investment, Policy | Mortgage Loans Mortgage loans are reported at cost adjusted for amortization of premiums, accrual of discounts and net of allowance for loan losses. If we determine that the value of any mortgage loan is impaired (i.e., when it is probable we will be unable to collect all amounts due according to the contractual terms of the loan agreement), the carrying value of the mortgage loan is reduced to its estimated value, which is based upon the present value of expected future cash flows from the loan, the estimated market price of the loan, or the fair value of the underlying collateral less estimated costs to sell. 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. Real Estate Our real estate is held for investment and consists of land reported at cost, net of allowance for losses. The carrying value of these assets is subject to regular review. For properties held for investment, if indicators of impairment are present and a property’s expected undiscounted cash flows are not sufficient to recover the property’s carrying value, an impairment loss is recognized and the property’s cost basis is reduced to fair value. No properties were held for investment with impairment charges as of December 31, 2018 or 2017 . Other Investments Policy loans are reported at unpaid principal balance. Short-term investments, which include investments with remaining maturities of one year or less, but greater than three months at the time of acquisition, are reported at cost adjusted for amortization of premiums and accrual of discounts. Other investments include common stock issued by the FHLB carried at the current redemption value; call options carried at fair value; a promissory note acquired in a sale of a partnership interest carried at the remaining basis of the partnership; and our ownership interest in aircraft acquired in a troubled debt restructuring carried at cost less accumulated depreciation. We have embedded derivatives associated with modified coinsurance contracts, which are included within reinsurance recoverable. These instruments are carried at fair value with changes reflected in net investment income. See Note 2 for more information regarding our derivative instruments. Securities and indebtedness of related parties include investments in corporations and partnerships over which we may exercise significant influence and those investments for which we use the equity method of accounting. These corporations and partnerships operate predominately in the investment company, real estate, broker/dealer and insurance industries. In applying the equity method, we record our share of income or loss reported by the equity investees. In accounting for these investments, we consistently use the most recent financial information available, which is generally for periods not more than three months prior to the ending date of the period for which we are reporting. For partnerships operating in the investment company industry, this income or loss includes changes in unrealized gains and losses in the partnerships’ investment portfolios. Accrued Investment Income We discontinue the accrual of investment income on invested assets when it is determined that it is probable that we will not collect the income. Realized Gains and Losses on Investments Realized gains and losses on sales of investments are determined on the basis of specific identification. The carrying values of all our investments are reviewed on an ongoing basis for credit deterioration. When our review indicates a decline in fair value for a fixed maturity security is an other-than-temporary impairment (OTTI) and we do not intend to sell or believe we will be required to sell the security before recovery of our amortized cost, a specific write down is charged to earnings for the credit loss and a specific charge is recognized in AOCI for the non-credit loss component. If we intend to sell or believe we will be required to sell a fixed maturity security before its recovery, the full amount of the impairment write down to fair value is charged to earnings. We monitor the financial condition and operations of the issuers of fixed maturities that could potentially have a credit impairment that is OTTI. In determining whether or not an unrealized loss is OTTI, we review factors such as: • historical operating trends; • business prospects; • status of the industry in which the issuer operates; • analyst ratings on the issuer and sector; • quality of management; • size of the unrealized loss; • level of current market interest rates compared to market interest rates when the security was purchased; and • length of time the security has been in an unrealized loss position. In order to determine the credit and non-credit impairment loss for fixed maturities, every quarter we estimate the future cash flows we expect to receive over the remaining life of the instrument as well as review our plans to hold or sell the instrument. Significant assumptions regarding the present value of expected cash flows for each security are used when an OTTI occurs and there is a non-credit portion of the unrealized loss that will not be recognized in earnings. Our assumptions for residential mortgage-backed securities, commercial mortgage-backed securities and other asset-backed securities include collateral pledged, guarantees, vintage, anticipated principal and interest payments, prepayments, default levels, severity assumptions, delinquency rates and the level of nonperforming assets for the remainder of the investments’ expected term. We use a single best estimate of cash flows approach and use the effective yield prior to the date of impairment to calculate the present value of cash flows. Our assumptions for corporate and other fixed maturities include anticipated principal and interest payments and an estimated recovery value, generally based on a percentage return of the current fair value. After an OTTI write down of fixed maturities with a credit-only impairment, the cost basis is not adjusted for subsequent recoveries in fair value. For fixed maturities for which we can reasonably estimate future cash flows after a write down, the discount or reduced premium recorded, based on the new cost basis, is amortized over the remaining life of the security. Amortization in this instance is computed using the prospective method and the current estimate of the amount and timing of future cash flows . |
Fair Value of Financial Instruments, Policy | Fair Values Fair values of fixed maturities are based on quoted market prices in active markets when available. Fair values of fixed maturities that are not actively traded are estimated using valuation methods that vary by asset class. Fair values of redeemable preferred stocks, equity securities and derivative investments are based on the latest quoted market prices, or for those items not readily marketable, generally at values that are representative of the fair values of comparable issues. Fair values for all securities are reviewed for reasonableness by considering overall market conditions and values for similar securities. See Note 3 for more information on our fair value policies, including assumptions and the amount of securities priced using the valuation models. |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents For purposes of our consolidated statements of cash flows, we consider all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. |
Reinsurance Accounting Policy | Reinsurance Recoverable We use reinsurance to manage certain risks associated with our insurance operations. These reinsurance arrangements provide for greater diversification of business, allow management to control exposure to potential risks arising from large claims and provide additional capacity for growth. For business ceded to other companies, reinsurance recoverable includes the reinsurers’ share of policyholder liabilities, claims and expenses, net of amounts due the reinsurers for premiums. We monitor the financial condition of these reinsurers, establishing an allowance for uncollectible reinsurance recoverables as necessary. We have concluded that no such allowance was required at December 31, 2018 or 2017 . For business assumed from other companies, reinsurance recoverable includes premium receivable net of our share of benefits and expenses we owe to the ceding company. Fair values for the embedded derivatives in our modified coinsurance contracts are based on the difference between the fair value and the cost basis of the underlying investments. See Note 2 for more information regarding derivatives and Note 4 for additional details on our reinsurance agreements. |
Capitalization of Deferred Policy Acquisition Costs, Policy | Deferred Acquisition Costs and Value of Insurance in Force Acquired Deferred acquisition costs include certain costs of successfully acquiring new insurance business, including commissions and other expenses related to the production of new business, to the extent recoverable from future policy revenues and gross profits. Also included are premium bonuses and bonus interest credited to contracts during the first contract year only. The value of insurance in force acquired represents the cost assigned to insurance contracts when an insurance company is acquired. The initial value was determined by an actuarial study using expected future gross profits as a measurement of the net present value of the insurance acquired. Value of insurance in force acquired is being amortized on a fixed amortization schedule. For participating traditional life insurance and interest sensitive products, these costs are being amortized generally in proportion to expected gross margins or gross profits. That amortization is adjusted retrospectively through an unlocking process when estimates of current or future gross profits/margins (including the impact of investment gains and losses) to be realized from a group of products are revised. For nonparticipating traditional life products, these costs are amortized over the premium paying period of the related policies, in proportion to the ratio of annual premium revenues to total anticipated premium revenues. Such anticipated premium revenues are estimated using the same assumptions used for computing liabilities for future policy benefits. All insurance and investment contract modifications and replacements are reviewed to determine if the internal replacement results in a substantially changed contract. If so, the acquisition costs, sales inducements and unearned revenue associated with the new contract are deferred and amortized over the lifetime of the new contract. In addition, the existing deferred policy acquisition costs, sales inducement costs and unearned revenue balances associated with the replaced contract are written off. If an internal replacement results in a substantially unchanged contract, the acquisition costs, sales inducements and unearned revenue associated with the new contract are immediately recognized in the period incurred. In addition, the existing deferred policy acquisition costs, sales inducement costs or unearned revenue balance associated with the replaced contract is not written off, but instead is carried over to the new contract. |
Depreciation, Depletion, and Amortization, Policy | Other Assets Other assets include property and equipment, primarily comprised of capitalized software costs and furniture and equipment, which are reported at cost less allowances for depreciation and amortization. We expense costs incurred in the preliminary stages of developing internal-use software as well as costs incurred post-implementation for maintenance. Capitalization of internal-use software costs occurs after management has authorized the project and it is probable that the software will be used as intended. Amortization of software costs begins after the software has been placed in production. Depreciation and amortization expense is computed primarily using the straight-line method over the estimated useful lives of the assets, which range from three to twenty years. Property and equipment had a carrying value of $38.5 million at December 31, 2018 and $35.8 million at December 31, 2017 , and accumulated depreciation and amortization of $79.2 million at December 31, 2018 and $78.7 million at December 31, 2017 . Depreciation and amortization expense for property and equipment was $9.9 million in 2018 and $8.7 million in 2017 and 2016 . |
Goodwill and Intangible Assets, Policy | Other assets at December 31, 2018 and 2017 , also includes goodwill of $9.9 million related to the excess of the amounts paid to acquire companies over the fair value of the net assets acquired. Goodwill is not amortized but is subject to annual impairment testing. We evaluate our goodwill balance by comparing the fair value of our reporting units to the carrying value of the goodwill. We conduct a qualitative impairment review at least annually as well as when indicators suggest an impairment may have occurred to determine if indicators of deterioration in the business would suggest its value has declined below the carrying value of goodwill. Such circumstances include changes in the competitive or overall economic environment or other business condition changes that may negatively impact the value of the underlying business. On a periodic basis, as well as in the event circumstances indicate the value of the business may have declined significantly, we will estimate the value of the business using discounted cash flow techniques. We believe this approach better approximates the fair value of our goodwill than a market capitalization approach. A number of significant assumptions and estimates are involved in the application of the discounted cash flow model to forecast operating cash flows, including future premiums, product lapses, investment yields and discount rate. Underlying assumptions are based on historical experience and our best estimates given information available at the time of testing. As a result of this analysis, we have determined our goodwill was not impaired as of December 31, 2018 or 2017 . |
Future Policy Benefits Liability, Policy | Future Policy Benefits Future policy benefit reserves for interest sensitive products are computed under a retrospective deposit method and represent policy account balances before applicable surrender charges. We also have additional benefit reserves that are established for annuity or universal life-type contracts that provide benefit guarantees, or for contracts that are expected to produce profits followed by losses. The liabilities are accrued in relation to estimated contract assessments. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policy account balances. Interest crediting rates for our interest sensitive products ranged from 1.00% to 5.50% in 2018 , 2017 and 2016 . The liability for future policy benefits for direct participating traditional life insurance is based on net level premium reserves, including assumptions as to interest, mortality and other factors underlying the guaranteed policy cash values. Reserve interest assumptions are level and range from 2.00% to 6.00% . The average rate of assumed investment yields used in estimating gross margins was 5.48% in 2018 , 5.47% in 2017 and 5.51% in 2016 . The liability for future policy benefits for non-participating traditional life insurance is computed using a net level method, including assumptions as to mortality, persistency and interest and includes provisions for possible unfavorable deviations. The liabilities for future policy benefits for accident and health insurance are computed using a net level (or an equivalent) method, including assumptions as to morbidity, mortality and interest and include provisions for possible unfavorable deviations. Policy benefit claims are charged to expense in the period that the claims are incurred. |
Revenue Recognition, Deferred Revenue, Policy | Other Policy Claims and Benefits We have unearned revenue reserves that reflect the unamortized balance of charges assessed to interest sensitive contract holders to compensate us for services to be performed over future periods (policy initiation fees). These charges have been deferred and are being recognized in income over the period benefited using the same assumptions and factors used to amortize deferred acquisition costs. |
Policyholders' Dividend, Policy | We have accrued dividends for participating business that are established for anticipated amounts earned to date that have not been paid. The declaration of future dividends for participating business is at the discretion of the Board of Directors of Farm Bureau Life. Participating business accounted for 28% of receipts from policyholders during 2018 ( 2017 - 29% and 2016 - 32% ) and represented 10% of life insurance in force at December 31, 2018 and 2017 and 11% at December 31, 2016 . |
Income Tax, Policy | Deferred Income Taxes Deferred income tax assets or liabilities are computed based on the difference between the financial statement and income tax bases of assets and liabilities using the enacted tax rates expected to be in effect when the assets or liabilities are recovered or settled. Deferred income tax expenses or credits are based on the changes in the asset or liability from period to period. A valuation allowance against deferred income tax assets is established if it is more likely than not that some portion or all of the deferred income tax assets will not be realized. |
Policyholder Accounts, Policy | Separate Accounts The separate account assets and liabilities reported in our accompanying consolidated balance sheets represent funds that are separately administered for the benefit of certain policyholders that bear the underlying investment risk. The separate account assets are carried at fair value and separate account liabilities represent policy account balances before applicable surrender charges. Revenues and expenses related to the separate account assets and liabilities, to the extent of benefits paid or provided to the separate account policyholders, are excluded from the amounts reported in the accompanying consolidated statements of operations. |
Revenue Recognition, Premiums Earned, Policy | Recognition of Premium Revenues and Costs Revenues for interest sensitive and variable products consist of policy charges for the cost of insurance and product guarantees, asset charges, administration charges, amortization of policy initiation fees and surrender charges assessed against policyholder account balances. The timing of revenue recognition as it relates to these charges and fees is determined based on the nature of such charges and fees. Policy charges for the cost of insurance, asset charges and policy administration charges are assessed on a daily or monthly basis and are recognized as revenue when assessed and earned. Certain policy initiation fees that represent compensation for services to be provided in the future are reported as unearned revenue and recognized in income over the periods benefited. Surrender charges are determined based upon contractual terms and are recognized upon surrender of a contract. Policy benefits and claims charged to expense include interest amounts credited to policyholder account balances and benefit claims incurred in excess of policyholder account balances during the period. Amortization of deferred acquisition costs is recognized as expense over the life of the policy. Traditional life insurance premiums are recognized as revenues over the premium-paying period. Future policy benefits and policy acquisition costs are recognized as expenses over the life of the policy by means of the provision for future policy benefits and amortization of deferred acquisition costs. All insurance-related revenues, benefits and expenses are reported net of reinsurance ceded. The cost of reinsurance ceded is recognized over the contract periods of the reinsurance agreements. Policies and contracts assumed are accounted for in a manner similar to that followed for direct business. Underwriting, Acquisition and Insurance Expenses Year ended December 31, 2018 2017 2016 (Dollars in thousands) Components of our underwriting, acquisition and insurance expenses: Commission expense, net of deferrals $ 23,801 $ 24,356 $ 22,735 Amortization of deferred acquisition costs 33,137 22,507 28,225 Amortization of value of insurance in force acquired 2,167 2,178 2,392 Other underwriting, acquisition and insurance expenses, net of deferrals 92,950 85,837 82,615 Total $ 152,055 $ 134,878 $ 135,967 |
Other Income and Other Expenses, Policy | Other Income and Other Expenses Other income and other expenses primarily consist of revenue and expenses generated by our various non-insurance subsidiaries for investment advisory, marketing and distribution, and leasing services. They also include revenues and expenses generated by our parent company for management services. Certain of these activities are performed on behalf of our affiliates. Revenues are recognized for the performance of these services to our customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those services. Lease income from leases with affiliates totaled $4.9 million in 2018 , $4.6 million in 2017 and $4.8 million in 2016 . Investment advisory fee income from affiliates totaled $2.9 million in 2018 , $2.7 million in 2017 and $2.5 million in 2016 . In addition, Farm Bureau Life has certain items, including fees earned from brokered products, reported as other income and other expense, which netted to $2.7 million in 2018 , $2.5 million in 2017 and $3.4 million in 2016 . We expense legal costs associated with a loss contingency as incurred. |
Pension and Other Postretirement Plans, Policy | Retirement and Compensation Plans We participate with affiliates and an unaffiliated organization in defined benefit pension plans, including a multiemployer plan. The multiemployer plan records an asset or liability based on the difference between contributions made to the plan to date and expense recognized for the plan to date. The obligations for the single employer plans are based on an actuarial valuation of future benefits. For the multiemployer plan, our contributions are commingled with those of the other employers to fund the plan benefit obligations. Should a participating employer be unable to provide funding, the remaining employers would be required to continue funding all future obligations. The multiemployer plan employs a long-term investment strategy of maintaining diversified assets. The expected return on plan assets is set at the long-term rate expected to be earned based on the long-term investment strategy of the plans for assets at the end of the reporting period. |
Share-based Compensation, Option and Incentive Plans Policy | We have a Cash-Based Restricted Stock Unit Plan. Performance and non-performance units are awarded under this plan. In addition to meeting the performance goals, the performance units are subject to a five-year vesting schedule. The non-performance units awarded under this plan vest over five years. The amount payable per unit awarded is equal to the price per share of the Company’s common stock at settlement of the award, and as such, we measure the value of the award each reporting period based on the current stock price. The expense related to the performance units is based on the number of units expected to vest and is recognized over the required service period. The expense related to the non-performance units is recognized over the five-year vesting schedule. The impact of forfeitures is estimated and compensation expense is recognized only for those units expected to vest. We also have share-based payment arrangements under our Class A Common Stock Compensation Plan, although no new awards have been made since 2011. See Note 8 for additional details on these plans. |
Comprehensive Income, Policy | Comprehensive Income Comprehensive income includes net income, as well as other comprehensive income items not recognized through net income. Other comprehensive income includes unrealized gains and losses on our available-for-sale securities as well as the underfunded obligation for certain retirement and postretirement benefit plans. These items are included in accumulated other comprehensive income, net of tax and other offsets, in stockholders’ equity. The changes in unrealized gains and losses reported in our Statement of Comprehensive Income (Loss), excludes net investment gains and losses included in net income that represent transfers from unrealized to realized gains and losses. These transfers are further discussed in Note 7. The components of the underfunded obligation for certain retirement and postretirement benefit plans are provided in Note 8. |
Use of Estimates, Policy | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. For example, significant estimates and assumptions are utilized in the valuation of investments, determination of other-than-temporary impairments of investments, amortization of deferred acquisition costs, calculation of policyholder liabilities and accruals and determination of pension expense. It is reasonably possible that actual experience could differ from the estimates and assumptions utilized, which could have a material impact on the consolidated financial statements. |
Significant Accounting Polici_3
Significant Accounting Policies Insurance costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Recognition of underwriting, acquisition and insurance costs | Underwriting, Acquisition and Insurance Expenses Year ended December 31, 2018 2017 2016 (Dollars in thousands) Components of our underwriting, acquisition and insurance expenses: Commission expense, net of deferrals $ 23,801 $ 24,356 $ 22,735 Amortization of deferred acquisition costs 33,137 22,507 28,225 Amortization of value of insurance in force acquired 2,167 2,178 2,392 Other underwriting, acquisition and insurance expenses, net of deferrals 92,950 85,837 82,615 Total $ 152,055 $ 134,878 $ 135,967 |
Investment Operations (Tables)
Investment Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investment Operations [Abstract] | |
Available-For-Sale Fixed Maturity Securities by Investment Category | Available-For-Sale Fixed Maturity Securities by Investment Category December 31, 2018 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 $ 3,231,846 $ 138,972 $ (90,933 ) $ 3,279,885 $ — Residential mortgage-backed 584,133 29,969 (7,242 ) 606,860 2,823 Commercial mortgage-backed 873,672 24,284 (19,390 ) 878,566 — Other asset-backed 697,332 15,567 (5,329 ) 707,570 1,143 United States Government and agencies 19,673 996 (134 ) 20,535 — States and political subdivisions 1,449,621 95,921 (5,913 ) 1,539,629 — Total fixed maturities $ 6,856,277 $ 305,709 $ (128,941 ) $ 7,033,045 $ 3,966 Available-For-Sale Fixed Maturity and Equity Securities by Investment Category December 31, 2017 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 $ 3,374,927 $ 329,299 $ (15,955 ) $ 3,688,271 $ (504 ) Residential mortgage-backed 483,671 35,890 (3,280 ) 516,281 339 Commercial mortgage-backed 674,076 34,464 (3,233 ) 705,307 — Other asset-backed 818,071 18,645 (3,214 ) 833,502 845 United States Government and agencies 23,378 1,606 (79 ) 24,905 — States and political subdivisions 1,383,127 141,813 (1,239 ) 1,523,701 — Total fixed maturities $ 6,757,250 $ 561,717 $ (27,000 ) $ 7,291,967 $ 680 Equity securities: Non-redeemable preferred stocks $ 92,951 $ 7,146 $ (265 ) $ 99,832 Common stocks 3,764 549 — 4,313 Total equity securities $ 96,715 $ 7,695 $ (265 ) $ 104,145 (1) Non-credit losses subsequent to the initial impairment measurement date on OTTI losses are included in the gross unrealized gains and gross unrealized losses columns above. The non-credit loss component of OTTI losses for residential mortgage-backed and other asset-backed securities at December 31, 2018 and December 31, 2017 were in an unrealized gain position due to increases in estimated fair value subsequent to initial recognition of non-credit losses on such securities. |
Available-For-Sale Fixed Maturities by Maturity Date | Available-For-Sale Fixed Maturities by Maturity Date December 31, 2018 Amortized Cost Fair Value (Dollars in thousands) Due in one year or less $ 123,881 $ 125,458 Due after one year through five years 517,489 531,498 Due after five years through ten years 698,549 708,191 Due after ten years 3,361,221 3,474,902 4,701,140 4,840,049 Mortgage-backed and other asset-backed 2,155,137 2,192,996 Total fixed maturities $ 6,856,277 $ 7,033,045 |
Net Unrealized Gains on Investments in Accumulated Other Comprehensive Income | Net Unrealized Gains on Investments in Accumulated Other Comprehensive Income December 31, 2018 2017 (Dollars in thousands) Net unrealized appreciation on: Fixed maturities - available for sale $ 176,768 $ 534,718 Equity securities — 7,430 176,768 542,148 Adjustments for assumed changes in amortization pattern of: Deferred acquisition costs (46,732 ) (147,173 ) Value of insurance in force acquired (6,878 ) (14,870 ) Unearned revenue reserve 5,134 12,705 Adjustments for assumed changes in policyholder liabilities (1,642 ) (18,499 ) Provision for deferred income taxes (see Note 5) (26,596 ) (78,605 ) Net unrealized investment gains $ 100,054 $ 295,706 |
Change in Unrealized Appreciation/Depreciation of Investments - Recorded in Accumulated Other Comprehensive Income | Change in Unrealized Appreciation/Depreciation of Investments - Recorded in Accumulated Other Comprehensive Income Year ended December 31, 2018 2017 2016 (Dollars in thousands) Fixed maturities - available for sale $ (357,950 ) $ 187,639 $ 89,222 Equity securities — 4,941 (2,842 ) Change in unrealized appreciation/depreciation of investments $ (357,950 ) $ 192,580 $ 86,380 |
Fixed Maturity Securities with Unrealized Losses by Length of Time | Fixed Maturity Securities with Unrealized Losses by Length of Time December 31, 2018 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 $ 1,035,176 $ (60,299 ) $ 207,381 $ (30,634 ) $ 1,242,557 $ (90,933 ) 70.5 % Residential mortgage-backed 191,365 (4,482 ) 74,113 (2,760 ) 265,478 (7,242 ) 5.6 Commercial mortgage-backed 302,159 (9,947 ) 148,855 (9,443 ) 451,014 (19,390 ) 15.0 Other asset-backed 250,119 (3,397 ) 149,997 (1,932 ) 400,116 (5,329 ) 4.1 United States Government and agencies — — 6,474 (134 ) 6,474 (134 ) 0.1 States and political subdivisions 144,681 (3,885 ) 16,943 (2,028 ) 161,624 (5,913 ) 4.7 Total fixed maturities $ 1,923,500 $ (82,010 ) $ 603,763 $ (46,931 ) $ 2,527,263 $ (128,941 ) 100.0 % Fixed Maturity and Equity Securities with Unrealized Losses by Length of Time December 31, 2017 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 $ 85,019 $ (1,261 ) $ 183,820 $ (14,694 ) $ 268,839 $ (15,955 ) 59.1 % Residential mortgage-backed 76,393 (1,757 ) 31,779 (1,523 ) 108,172 (3,280 ) 12.1 Commercial mortgage-backed 151,158 (2,078 ) 16,398 (1,155 ) 167,556 (3,233 ) 12.0 Other asset-backed 159,111 (2,006 ) 71,064 (1,208 ) 230,175 (3,214 ) 11.9 United States Government and agencies 5,698 (47 ) 1,864 (32 ) 7,562 (79 ) 0.3 States and political subdivisions 5,904 (96 ) 20,505 (1,143 ) 26,409 (1,239 ) 4.6 Total fixed maturities $ 483,283 $ (7,245 ) $ 325,430 $ (19,755 ) $ 808,713 $ (27,000 ) 100.0 % Equity securities: Non-redeemable preferred stocks $ 2,819 $ (71 ) $ 4,807 $ (194 ) $ 7,626 $ (265 ) Total equity securities $ 2,819 $ (71 ) $ 4,807 $ (194 ) $ 7,626 $ (265 ) |
Mortgage Loans by Collateral Type | Mortgage Loans by Collateral Type December 31, 2018 December 31, 2017 Collateral Type Carrying Value Percent of Total Carrying Value Percent of Total (Dollars in thousands) Office $ 443,048 42.6 % $ 410,090 42.2 % Retail 310,625 29.9 292,257 30.1 Industrial 211,138 20.3 207,180 21.3 Other 75,018 7.2 62,285 6.4 Total $ 1,039,829 100.0 % $ 971,812 100.0 % |
Mortgage Loans by Geographic Location within the United States | Mortgage Loans by Geographic Location within the United States December 31, 2018 December 31, 2017 Region of the United States Carrying Value Percent of Total Carrying Value Percent of Total (Dollars in thousands) South Atlantic $ 301,206 29.0 % $ 296,947 30.5 % Pacific 162,824 15.7 146,320 15.0 West North Central 126,320 12.1 127,096 13.1 East North Central 117,768 11.3 91,971 9.5 Mountain 101,335 9.7 105,627 10.9 West South Central 85,919 8.3 85,566 8.8 East South Central 76,098 7.3 67,228 6.9 Middle Atlantic 34,843 3.4 16,052 1.7 New England 33,516 3.2 35,005 3.6 Total $ 1,039,829 100.0 % $ 971,812 100.0 % |
Mortgage Loans by Loan-to-Value Ratio | Mortgage Loans by Loan-to-Value Ratio December 31, 2018 December 31, 2017 Loan-to-Value Ratio Carrying Value Percent of Total Carrying Value Percent of Total (Dollars in thousands) 0% - 50% $ 409,089 39.3 % $ 334,037 34.4 % 51% - 60% 314,038 30.2 258,359 26.6 61% - 70% 264,973 25.5 297,404 30.6 71% - 80% 37,418 3.6 63,116 6.5 81% - 90% 14,311 1.4 18,896 1.9 Total $ 1,039,829 100.0 % $ 971,812 100.0 % |
Mortgage Loans by Year of Origination | Mortgage Loans by Year of Origination December 31, 2018 December 31, 2017 Carrying Value Percent of Total Carrying Value Percent of Total (Dollars in thousands) 2018 $ 137,519 13.2 % $ — — % 2017 207,540 20.0 214,365 22.1 2016 149,437 14.4 154,359 15.9 2015 128,877 12.4 144,890 14.9 2014 72,827 7.0 77,866 8.0 2013 and prior 343,629 33.0 380,332 39.1 Total $ 1,039,829 100.0 % $ 971,812 100.0 % |
Impaired Mortgage Loans | Impaired Mortgage Loans December 31, 2018 2017 (Dollars in thousands) Unpaid principal balance $ 18,622 $ 19,027 Less: Related allowance (3,107 ) (497 ) Carrying value of impaired mortgage loans $ 15,515 $ 18,530 |
Allowance on Mortgage Loans | Allowance on Mortgage Loans Year ended December 31, 2018 2017 (Dollars in thousands) Balance at beginning of period $ 497 $ 713 Allowances established 2,778 — Recoveries (168 ) (216 ) Balance at end of period $ 3,107 $ 497 |
Components of Net Investment Income | Components of Net Investment Income Year ended December 31, 2018 2017 2016 (Dollars in thousands) Fixed maturities - available for sale $ 340,498 $ 344,302 $ 342,657 Equity securities 8,488 6,502 6,558 Mortgage loans 45,294 42,185 38,098 Policy loans 9,210 9,014 8,956 Short-term investments, cash and cash equivalents 772 506 365 Derivative income (loss) (10,405 ) 7,687 3,935 Prepayment fee income and other 9,208 12,470 10,992 403,065 422,666 411,561 Less investment expenses (8,447 ) (7,467 ) (7,391 ) Net investment income $ 394,618 $ 415,199 $ 404,170 |
Realized Gains (Losses) - Recorded in Income | Realized Gains (Losses) - Recorded in Income Year ended December 31, 2018 2017 2016 (Dollars in thousands) Realized gains (losses) on sales of investments Fixed maturities: Gross gains $ 2,195 $ 1,426 $ 9,793 Gross losses (363 ) (1,081 ) (8,523 ) Equity securities — (90 ) 529 Mortgage loans — — 817 Real estate — 304 — Other (19 ) 40 490 1,813 599 3,106 Net gains and (losses) recognized during the period on equity securities (9,089 ) — — Less net gains and (losses) recognized during the period on equity securities sold during the period (952 ) — — Net losses recognized during the period on equity securities held at the end of the period (1) (8,137 ) — — Net realized gains (losses) (7,276 ) 599 3,106 Impairment losses recognized in earnings: Credit-related portion of fixed maturity losses (2) (32 ) — (4,767 ) Other credit-related (3) (4,966 ) (1,553 ) (102 ) Net realized gains (losses) on investments recorded in income $ (12,274 ) $ (954 ) $ (1,763 ) (1) See Note 1 to our consolidated financial statements for discussion of change in accounting policy for equity securities during 2018. (2) Amount represents the credit-related losses recognized for fixed maturities that were impaired 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). (3) Amount represents credit-related losses for fixed maturities, mortgage loans, and other investments written down to fair value through income. |
Credit Loss Component of Other-than-temporary Impairments on Fixed Maturities | Credit Loss Component of Other-Than-Temporary Impairments on Fixed Maturities Year ended December 31, 2018 2017 (Dollars in thousands) Balance at beginning of period $ (12,392 ) $ (14,500 ) Increases to previously impaired investments (32 ) — Reductions due to investments sold 3,932 1,521 Reduction for credit loss that no longer has a portion of the OTTI loss recognized in other comprehensive income 2,529 587 Balance at end of period $ (5,963 ) $ (12,392 ) |
Affordable Housing Program | Commitments to LIHTC Investments by Year December 31, 2018 (Dollars in thousands) 2019 $ 564 2020 165 2021-2025 831 Total $ 1,560 |
VIE Investments by Category | VIE Investments by Category December 31, 2018 December 31, 2017 Carrying Value Maximum Exposure to Loss Carrying Value Maximum Exposure to Loss (Dollars in thousands) LIHTC investments $ 54,037 $ 55,597 $ 65,710 $ 67,396 Investment companies 40,236 79,578 25,335 62,372 Real estate limited partnerships 8,945 15,673 8,589 20,590 Other 483 493 1,182 1,488 Total $ 103,701 $ 151,341 $ 100,816 $ 151,846 |
Schedule of Derivative Instruments | Derivatives Instruments by Type December 31, 2018 December 31, 2017 (Dollars in thousands) Assets Freestanding derivatives: Call options (reported in other investments) $ 4,745 $ 14,824 Embedded derivatives: Modified coinsurance (reported in reinsurance recoverable) 157 2,125 Interest-only security (reported in fixed maturities) 855 2,096 Total assets $ 5,757 $ 19,045 Liabilities Embedded derivatives: Indexed products (reported in liability for future policy benefits) $ 40,028 $ 27,774 Modified coinsurance (reported in other liabilities) 7,426 268 Total liabilities $ 47,454 $ 28,042 Derivative Income (Loss) Year ended December 31, 2018 2017 2016 (Dollars in thousands) Change in fair value of free standing derivatives: Call options $ (7,749 ) $ 9,372 $ 2,990 Change in fair value of embedded derivatives: Modified coinsurance (2,480 ) (1,440 ) 716 Interest-only security (176 ) (246 ) 229 Indexed products 3,243 321 (2,390 ) Total income (loss) from derivatives $ (7,162 ) $ 8,007 $ 1,545 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Valuation of our Financial Instruments Measured on a Recurring Basis by Hierarchy Levels December 31, 2018 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair Value (Dollars in thousands) Assets Fixed maturities: Corporate securities $ — $ 3,257,874 $ 22,011 $ 3,279,885 Residential mortgage-backed securities — 606,860 — 606,860 Commercial mortgage-backed securities — 810,626 67,940 878,566 Other asset-backed securities — 703,969 3,601 707,570 United States Government and agencies 7,917 12,618 — 20,535 States and political subdivisions — 1,539,629 — 1,539,629 Total fixed maturities 7,917 6,931,576 93,552 7,033,045 Non-redeemable preferred stocks — 77,433 6,862 84,295 Common stocks (1) 5,261 — — 5,261 Other investments — 4,745 — 4,745 Cash, cash equivalents and short-term investments 34,748 — — 34,748 Reinsurance recoverable — 157 — 157 Assets held in separate accounts 561,281 — — 561,281 Total assets $ 609,207 $ 7,013,911 $ 100,414 $ 7,723,532 Liabilities Future policy benefits - indexed product embedded derivatives $ — $ — $ 40,028 $ 40,028 Other liabilities — 780 — 780 Total liabilities $ — $ 780 $ 40,028 $ 40,808 (1) A private equity fund with a fair value estimate of $3.3 million using net asset value per share as a practical expedient, has not been classified in the fair value hierarchy above in accordance with fair value reporting guidance. This fund invests in senior secured middle market loans and has unfunded commitments totaling $6.8 million at December 31, 2018. The investment is not currently eligible for redemption. Valuation of our Financial Instruments Measured on a Recurring Basis by Hierarchy Levels December 31, 2017 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair Value (Dollars in thousands) Assets Fixed maturities: Corporate securities $ — $ 3,654,671 $ 33,600 $ 3,688,271 Residential mortgage-backed securities — 507,157 9,124 516,281 Commercial mortgage-backed securities — 619,606 85,701 705,307 Other asset-backed securities — 780,022 53,480 833,502 United States Government and agencies 9,078 15,827 — 24,905 States and political subdivisions — 1,523,701 — 1,523,701 Total fixed maturities 9,078 7,100,984 181,905 7,291,967 Non-redeemable preferred stocks — 92,425 7,407 99,832 Common stocks 4,313 — — 4,313 Other investments — 14,824 — 14,824 Cash, cash equivalents and short-term investments 69,703 — — 69,703 Reinsurance recoverable — 2,125 — 2,125 Assets held in separate accounts 651,963 — — 651,963 Total assets $ 735,057 $ 7,210,358 $ 189,312 $ 8,134,727 Liabilities Future policy benefits - indexed product embedded derivatives $ — $ — $ 27,774 $ 27,774 Other liabilities — 268 — 268 Total liabilities $ — $ 268 $ 27,774 $ 28,042 |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | Level 3 Assets by Valuation Source - Recurring Basis December 31, 2018 Third-party vendors Priced Fair Value (Dollars in thousands) Corporate securities $ 1,940 $ 20,071 $ 22,011 Commercial mortgage-backed securities 67,940 — 67,940 Other asset-backed securities — 3,601 3,601 Non-redeemable preferred stocks — 6,862 6,862 Total level 3 assets $ 69,880 $ 30,534 $ 100,414 Percent of total 69.6 % 30.4 % 100.0 % December 31, 2017 Third-party vendors Priced Fair Value (Dollars in thousands) Corporate securities $ 4,555 $ 29,045 $ 33,600 Residential mortgage-backed securities 9,124 — 9,124 Commercial mortgage-backed securities 85,701 — 85,701 Other asset-backed securities 47,080 6,400 53,480 Non-redeemable preferred stocks — 7,407 7,407 Total level 3 assets $ 146,460 $ 42,852 $ 189,312 Percent of total 77.4 % 22.6 % 100.0 % |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | Quantitative Information about Level 3 Fair Value Measurements - Recurring Basis December 31, 2018 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (Dollars in thousands) Assets Corporate securities $ 19,178 Discounted cash flow Credit spread 1.23% - 7.00% (4.01%) Commercial mortgage-backed securities 55,866 Discounted cash flow Credit spread 1.45% - 3.55% (2.58%) Non-redeemable preferred stocks 6,862 Discounted cash flow Credit spread 4.36% (4.36%) Total assets $ 81,906 Liabilities Future policy benefits - indexed product embedded derivatives $ 40,028 Discounted cash flow Credit risk Risk margin 0.55% - 1.80% (1.25%) 0.15% - 0.40% (0.25%) December 31, 2017 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (Dollars in thousands) Assets Corporate securities $ 27,682 Discounted cash flow Credit spread 0.91% - 6.20% (4.17%) Commercial mortgage-backed securities 72,224 Discounted cash flow Credit spread 1.40% - 4.10% (2.50%) Non-redeemable preferred stocks 7,407 Discounted cash flow Credit spread 2.94% (2.94%) Total assets $ 107,313 Liabilities Future policy benefits - indexed product embedded derivatives $ 27,774 Discounted cash flow Credit risk Risk margin 0.40% - 1.60% (0.90%) 0.15% - 0.40% (0.25%) |
Level 3 Financial Instruments Changes in Fair Value [Table Text Block] | Level 3 Financial Instruments Changes in Fair Value - Recurring Basis December 31, 2018 Realized and unrealized gains (losses), net Balance, December 31, 2017 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, December 31, 2018 (Dollars in thousands) Assets Corporate securities $ 33,600 $ — $ (9,432 ) $ — $ (974 ) $ 7,082 $ (8,530 ) $ 265 $ 22,011 Residential mortgage-backed securities 9,124 27,818 — — — — (36,942 ) — — Commercial mortgage-backed securities 85,701 36,008 (1,337 ) — (3,599 ) — (48,787 ) (46 ) 67,940 Other asset-backed securities 53,480 28,855 (2,799 ) — (12 ) — (75,923 ) — 3,601 Non-redeemable preferred stocks 7,407 — — (545 ) — — — — 6,862 Total assets $ 189,312 $ 92,681 $ (13,568 ) $ (545 ) $ (4,585 ) $ 7,082 $ (170,182 ) $ 219 $ 100,414 Liabilities Future policy benefits - indexed product embedded derivatives $ 27,774 $ 11,514 $ (4,447 ) $ 5,187 $ — $ — $ — $ — $ 40,028 December 31, 2017 Realized and unrealized gains (losses), net Balance, December 31, 2016 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, December 31, 2017 (Dollars in thousands) Assets Corporate securities $ 59,119 $ 5,000 $ (12,230 ) $ 84 $ (1,365 ) $ 13,440 $ (30,409 ) $ (39 ) $ 33,600 Residential mortgage-backed securities — 32,455 — — (1 ) — (23,331 ) 1 9,124 Commercial mortgage-backed securities 81,434 25,591 (802 ) — 6,218 — (26,658 ) (82 ) 85,701 Other asset-backed securities 54,368 126,867 (8,886 ) — 499 13,353 (132,700 ) (21 ) 53,480 Non-redeemable preferred stocks 7,411 — — — (4 ) — — — 7,407 Total assets $ 202,332 $ 189,913 $ (21,918 ) $ 84 $ 5,347 $ 26,793 $ (213,098 ) $ (141 ) $ 189,312 Liabilities Future policy benefits - indexed product embedded derivatives $ 15,778 $ 6,594 $ (2,128 ) $ 7,530 $ — $ — $ — $ — $ 27,774 (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 December 31, 2018 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair Value Carrying Value (Dollars in thousands) Assets Mortgage loans $ — $ — $ 1,045,497 $ 1,045,497 $ 1,039,829 Policy loans — — 237,496 237,496 197,366 Other investments — — 30,087 30,087 29,020 Total assets $ — $ — $ 1,313,080 $ 1,313,080 $ 1,266,215 Liabilities Future policy benefits $ — $ — $ 3,981,947 $ 3,981,947 $ 4,217,904 Supplementary contracts without life contingencies — — 298,869 298,869 303,627 Advance premiums and other deposits — — 252,318 252,318 252,318 Long-term debt — — 65,999 65,999 97,000 Liabilities related to separate accounts — — 559,799 559,799 561,281 Total liabilities $ — $ — $ 5,158,932 $ 5,158,932 $ 5,432,130 December 31, 2017 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair Value Carrying Value (Dollars in thousands) Assets Mortgage loans $ — $ — $ 989,503 $ 989,503 $ 971,812 Policy loans — — 236,223 236,223 191,398 Other investments 28,619 28,619 27,547 Total assets $ — $ — $ 1,254,345 $ 1,254,345 $ 1,190,757 Liabilities Future policy benefits $ — $ — $ 4,119,880 $ 4,119,880 $ 4,164,593 Supplementary contracts without life contingencies — — 327,151 327,151 322,630 Advance premiums and other deposits — — 259,099 259,099 259,099 Long-term debt — — 78,628 78,628 97,000 Liabilities related to separate accounts — — 649,610 649,610 651,963 Total liabilities $ — $ — $ 5,434,368 $ 5,434,368 $ 5,495,285 |
Reinsurance and Policy Provis_2
Reinsurance and Policy Provisions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Reinsurance and Policy Provisions [Abstract] | |
Reinsurance [Text Block] | Impact of Reinsurance on our Financial Statements Year ended December 31, 2018 2017 2016 (Dollars in thousands) Ceded (reductions to financial statement items): Premiums and product charges $ 32,450 $ 32,922 $ 33,058 Insurance benefits 21,358 24,159 22,515 Allowances for expenses and commissions 4,231 4,548 4,709 Assumed (additions to financial statement items): Premiums and product charges 2,508 2,637 2,670 Insurance benefits 2,752 6,356 2,302 Allowances for expenses and commissions 1,410 1,543 1,427 Reinsurance in Force and Percentage of Direct Life Insurance in Force Year ended December 31, 2018 2017 (Dollars in millions) Ceded reinsurance $ 14,030 21.8 % $ 14,087 22.5 % Assumed reinsurance 455 0.7 % 487 0.8 % |
Present Value of Future Insurance Profits [Text Block] | Year ended December 31, 2018 2017 2016 (Dollars in thousands) Balance at beginning of year $ 19,430 $ 21,608 $ 24,000 Amortization per fixed schedule (2,167 ) (2,178 ) (2,198 ) Impact of unlocking actuarial assumptions — — (194 ) Balance at end of year 17,263 19,430 21,608 Impact of net unrealized investment gains and losses (6,878 ) (14,870 ) (12,382 ) Value of insurance in force acquired $ 10,385 $ 4,560 $ 9,226 |
Schedule of Minimum Guaranteed Benefit Liabilities [Table Text Block] | GMDB, IDB and GMIB Net Amount at Risk by Type of Guarantee December 31, 2018 December 31, 2017 Separate Account Balance Net Amount at Risk Separate Account Balance Net Amount at Risk (Dollars in thousands) Guaranteed minimum death benefit: Return of net deposits $ 147,567 $ 430 $ 173,761 $ 442 Return the greater of highest anniversary 252,361 29,146 292,112 1,068 Incremental death benefit 228,863 53,727 265,456 67,350 Guaranteed minimum income benefit 24,357 37 29,987 — Total $ 83,340 $ 68,860 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income Tax Expenses (Credits) Year ended December 31, 2018 2017 2016 (Dollars in thousands) Taxes provided in consolidated statements of operations on: Income before equity loss: Current $ 20,429 $ 34,301 $ 36,461 Deferred (4,953 ) (73,094 ) 9,409 LIHTC (3,826 ) (1,190 ) (4,650 ) 11,650 (39,983 ) 41,220 Equity income 1,179 1,394 1,221 Taxes provided in consolidated statements of changes in stockholders’ equity: Accumulated other comprehensive income (50,025 ) 43,448 18,882 Class A and Class B common stock (1) — — (846 ) (50,025 ) 43,448 18,036 $ (37,196 ) $ 4,859 $ 60,477 (1) Beginning in 2017, accounting guidance requires tax benefits of equity-based compensation to be recorded through net income rather than directly to stockholders’ equity. Accordingly, we do not expect to have a provision for taxes on Class A and B common stock for years after 2016. See Note 1 to our consolidated financial statements for further discussion of this accounting change. |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Effective Tax Rate Reconciliation to Federal Income Tax Rate Year ended December 31, 2018 2017 2016 (Dollars in thousands) Income before income taxes and equity loss $ 101,033 $ 144,760 $ 141,789 Income tax at federal statutory rate $ 21,217 $ 50,666 $ 49,626 Tax effect (decrease) of: Tax-exempt dividend and interest income (3,762 ) (3,384 ) (2,950 ) Net impact of LIHTC (3,826 ) (1,190 ) (4,650 ) Remeasurement of deferred taxes under the Tax Act — (84,806 ) — Other items (1,979 ) (1,269 ) (806 ) Income tax expense (benefit) $ 11,650 $ (39,983 ) $ 41,220 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Tax Effect of Temporary Differences Giving Rise to Deferred Income Tax Assets and Liabilities December 31, 2018 2017 (Dollars in thousands) Deferred income tax assets: Future policy benefits $ 25,137 $ 21,926 Accrued benefit and compensation costs 3,854 3,435 Loss carryforwards 2,870 3,452 Other 2,555 2,669 34,416 31,482 Deferred income tax liabilities: Fixed maturity and equity securities 42,961 118,716 Deferred acquisition costs 55,810 33,177 Value of insurance in force acquired 2,181 958 Property and equipment 7,021 5,883 Other 1,892 3,173 109,865 161,907 Net deferred income tax liability $ 75,449 $ 130,425 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock by Class [Table Text Block] | Dividends Year ended December 31, 2018 2017 2016 Class A and B common stock: Cash dividends per common share $ 1.84 $ 1.76 $ 1.68 Special cash dividend per common share 1.50 1.50 2.00 Total common stock dividends per share $ 3.34 $ 3.26 $ 3.68 Series B preferred stock cash dividends per share $ 0.03 $ 0.03 $ 0.03 Reconciliation of Outstanding Common Stock Class A Class B (1) Total Shares Dollars Shares Dollars Shares Dollars (Dollars in thousands) 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 96,101 3,718 — — 96,101 3,718 Purchase of common stock (10,322 ) (63 ) — — (10,322 ) (63 ) Outstanding at December 31, 2016 24,882,542 152,903 11,413 72 24,893,955 152,975 Issuance of common stock under compensation plans 40,082 708 — — 40,082 708 Purchase of common stock (3,511 ) (22 ) — — (3,511 ) (22 ) Outstanding at December 31, 2017 24,919,113 153,589 11,413 72 24,930,526 153,661 Issuance of common stock under compensation plans 21,126 499 — — 21,126 499 Purchase of common stock (232,837 ) (1,436 ) — — (232,837 ) (1,436 ) Outstanding at December 31, 2018 24,707,402 $ 152,652 11,413 $ 72 24,718,815 $ 152,724 (1) There is no established market for our Class B common stock, although it is convertible upon demand of the holder into Class A common stock on a share-for-share basis. |
Comprehensive Income (Loss) [Table Text Block] | Accumulated Other Comprehensive Income, Net of Tax and Other Offsets Unrealized Net Investment Gains (Losses) (1) Accumulated Non-Credit Impairment Gains (Losses) Underfunded Portion of Certain Benefit Total (Dollars in thousands) Balance at January 1, 2016 $ 120,787 $ (114 ) $ (6,141 ) $ 114,532 Other comprehensive income before reclassifications 37,895 1,901 — 39,796 Reclassification adjustments (1,719 ) (1,476 ) (1,578 ) (4,773 ) Balance at December 31, 2016 156,963 311 (7,719 ) 149,555 Other comprehensive income before reclassifications 88,534 136 — 88,670 Reclassification related to the Tax Act (3) 49,657 90 (1,521 ) 48,226 Reclassification adjustments 15 — (1,483 ) (1,468 ) Balance at December 31, 2017 295,169 537 (10,723 ) 284,983 Cumulative effect of change in accounting principle related to net unrealized gains on equity securities (4) (5,480 ) — — (5,480 ) Other comprehensive income before reclassifications (191,158 ) 2,654 — (188,504 ) Reclassification adjustments (1,610 ) (58 ) 1,987 319 Balance at December 31, 2018 $ 96,921 $ 3,133 $ (8,736 ) $ 91,318 (1) Unrealized net investment gains (losses) relate to available-for-sale securities and include 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) For descriptions of the underfunded portion of our postretirement benefit plans, see Note 8 - Other Retirement Plans, and for certain other defined benefit plans, see Note 8 - Defined Benefit Pension Plans. (3) Reclassification of the initial impact of the remeasurement of deferred tax assets and liabilities upon enactment of the Tax Act. See discussion of this accounting change as discussed in Note 1. (4) See Note 1 to our consolidated financial statements for further discussion on this one-time adjustment related to an accounting change. |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Accumulated Other Comprehensive Income Reclassification Adjustments Year ended December 31, 2018 Unrealized Net Investment Gains (Losses) (1) Accumulated Non-Credit Impairment Losses (1) Underfunded Portion of Certain Benefit Total (Dollars in thousands) Realized capital gains on sales of fixed maturities $ (1,832 ) $ — $ — $ (1,832 ) Adjustments for assumed changes in deferred policy acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities (206 ) 1 — (205 ) Other than temporary impairment losses — (74 ) — (74 ) Other expenses - change in unrecognized postretirement items: Net actuarial gain — — 2,515 2,515 Reclassifications before income taxes (2,038 ) (73 ) 2,515 404 Income taxes 428 15 (528 ) (85 ) Reclassification adjustments $ (1,610 ) $ (58 ) $ 1,987 $ 319 Accumulated Other Comprehensive Income Reclassification Adjustments Year ended December 31, 2017 Unrealized Net Investment Gains (Losses) (1) Accumulated Non-Credit Impairment Losses (1) Underfunded Portion of Certain Benefit Total (Dollars in thousands) Realized capital gains on sales of investments $ (255 ) $ — $ — $ (255 ) Adjustments for assumed changes in deferred policy acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities 274 — — 274 Other expenses - change in unrecognized postretirement items: Net actuarial loss — — (1,702 ) (1,702 ) Reclassifications before income taxes 19 — (1,702 ) (1,683 ) Income taxes (4 ) — 219 215 Reclassification adjustments $ 15 $ — $ (1,483 ) $ (1,468 ) Year ended December 31, 2016 Unrealized Net Investment Gains (Losses) (1) Accumulated Non-Credit Impairment Losses (1) Underfunded Portion of Certain Benefit Total (Dollars in thousands) Realized capital gains on sales of investments $ (1,799 ) $ — $ — $ (1,799 ) Adjustments for assumed changes in deferred policy acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities (845 ) 180 — (665 ) Other than temporary impairment losses — (2,451 ) — (2,451 ) Other expenses - change in unrecognized postretirement items: Prior service costs — — (1 ) (1 ) Net actuarial loss — — (2,425 ) (2,425 ) Reclassifications before income taxes (2,644 ) (2,271 ) (2,426 ) (7,341 ) Income taxes 925 795 848 2,568 Reclassification adjustments $ (1,719 ) $ (1,476 ) $ (1,578 ) $ (4,773 ) (1) See Note 2 for further information. (2) For descriptions of the underfunded portion of our postretirement benefit plans, see Note 8 - Other Retirement Plans, and for certain other defined benefit plans, see Note 8 - Defined Benefit Plans. |
Retirement and Compensation P_2
Retirement and Compensation Plans Defined Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Multiemployer Plans [Table Text Block] | Multiemployer Plan name FBL Financial Group Retirement Plan Employer identification number 42-1411715 Plan number 001 FBL’s contributions (in thousands) 2018 $30,000 2017 $45,000 2016 $30,000 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | Funding Status and Net Periodic Pension Costs Multiemployer Plan Other Plans As of and for the year ended December 31, As of and for the year ended December 31, 2018 2017 2018 2017 (Dollars in thousands) Change in projected benefit obligation: Net benefit obligation at beginning of the year $ 375,999 $ 336,454 $ 26,914 $ 24,585 Service cost 5,973 5,552 539 436 Interest cost 13,642 14,124 958 1,003 Actuarial loss (gain) (20,594 ) 41,855 (1,170 ) 2,728 Benefits paid (4,001 ) (21,986 ) (1,878 ) (1,838 ) Settlements (56,256 ) — — — Special termination benefit 5,168 — — — Projected benefit obligation 319,931 375,999 25,363 26,914 Change in plan assets: Fair value of plan assets at beginning of the year 345,396 291,071 — — Actual return on plan assets 869 31,311 — — Employer contributions 30,000 45,000 1,878 1,838 Benefits paid (4,001 ) (21,986 ) (1,878 ) (1,838 ) Settlements (56,256 ) — — — Fair value of plan assets at end of the year 316,008 345,396 — — Underfunded status at end of the year $ (3,923 ) $ (30,603 ) $ (25,363 ) $ (26,914 ) Accumulated benefit obligation $ 287,052 $ 334,462 $ 22,753 $ 23,504 |
Schedule of Net Benefit Costs [Table Text Block] | Net Periodic Pension Costs Incurred by the Plans Multiemployer Plan Other Plans As of and for the year ended December 31, As of and for the year ended December 31, 2018 2017 2016 2018 2017 2016 (Dollars in thousands) Service cost $ 5,973 $ 5,552 $ 5,795 $ 539 $ 436 $ 335 Interest cost 13,642 14,124 14,447 958 1,003 966 Expected return on plan assets (22,247 ) (19,184 ) (17,865 ) — — — Amortization of prior service cost 46 131 144 — — (1 ) Amortization of actuarial loss 12,507 10,121 9,432 1,353 1,172 918 Effect of settlement 17,406 — — — — — Effect of special termination benefit 5,168 — — — — — Net periodic pension cost $ 32,495 $ 10,744 $ 11,953 $ 2,850 $ 2,611 $ 2,218 FBL Financial Group, Inc. share of net periodic pension cost $ 9,956 $ 3,404 $ 3,807 $ 1,671 $ 1,551 $ 1,260 |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | FBL’s Proportionate Share of Prepaid or Accrued Pension Cost Multiemployer Plan Other Plans As of and for the year ended December 31, As of and for the year ended December 31, 2018 2017 2018 2017 (Dollars in thousands) Amount recognized in FBL’s consolidated balance sheets Prepaid benefit cost $ 36,105 $ 36,858 $ 726 $ 740 Accrued benefit cost (12 ) — (19,480 ) (21,245 ) Net amount recognized $ 36,093 $ 36,858 $ (18,754 ) $ (20,505 ) Amount recognized in FBL’s accumulated other comprehensive income, before taxes (1) Net actuarial loss $ 11,126 $ 13,649 Net amount recognized $ 11,126 $ 13,649 (1) For our Multiemployer Plan, the underfunded portion of the pension benefit obligation is not required to be recognized as a liability in our consolidated balance sheets. The unrecognized liability for the underfunded status of our Multiemployer Plan totaled $3.9 million at December 31, 2018 and $30.6 million at December 31, 2017 . |
Schedule of Assumptions Used [Table Text Block] | Weighted Average Assumptions Used to Determine Benefit Obligation December 31 2018 2017 Discount rate 4.24 % 3.72 % Annual salary increases 3.21 % 3.27 % The discount rate is estimated by projecting and discounting future benefit payments inherent in the projected benefit obligation using a commercially available “spot” yield curve constructed using techniques and a bond universe specifically selected to meet the accounting standard requirements. Weighted Average Assumptions Used to Determine Net Periodic Pension Cost Year Ended December 31, 2018 2017 2016 Discount rate 3.72 % 4.29 % 4.65 % Expected long-term return on plan assets 6.50 % 6.60 % 6.75 % Annual salary increases 3.27 % 3.31 % 3.31 % |
Schedule of Allocation of Plan Assets [Table Text Block] | Fair Values of the Multiemployer Plan Assets by Asset Category and Hierarchy Levels December 31, 2018 Quoted prices in Significant other Significant Total (Dollars in thousands) Mutual funds: (1) U.S. equity funds $ 20,138 $ — $ — $ 20,138 International funds 35,854 — — 35,854 Pooled separate accounts: (1) Short-term fixed income funds — 510 — 510 Fixed income funds — 12,117 — 12,117 U.S. equity funds — 13,788 — 13,788 Real estate fund — 12,455 — 12,455 Annuities: (2) Group annuity contract — — 148,106 148,106 Funded annuity contracts — — 10,500 10,500 Fixed maturities: (3) Corporate — 24,002 — 24,002 United States government and agencies 25,039 — — 25,039 Alternative investments: (4) Limited partnerships — — 12,410 12,410 Cash and cash equivalents (5) 538 — — 538 Total $ 81,569 $ 62,872 $ 171,016 $ 315,457 December 31, 2017 Quoted prices in Significant other Significant Total (Dollars in thousands) Mutual funds: (1) U.S. equity funds $ 39,563 $ — $ — $ 39,563 International funds 40,349 — — 40,349 Pooled separate accounts: (1) Short-term fixed income funds — 793 — 793 Fixed income funds — 14,689 — 14,689 U.S. equity funds — 32,726 — 32,726 Real estate fund — 15,526 — 15,526 Annuities: (2) Group annuity contract — — 181,403 181,403 Funded annuity contracts — — 10,776 10,776 Alternative investments: (4) Limited partnerships — — 9,571 9,571 Total $ 79,912 $ 63,734 $ 201,750 $ 345,396 (1) Represents mutual funds and pooled separate account investments with Principal Life Insurance Company. (2) Represents group annuity contracts with Farm Bureau Life. (3) Represents bonds to support liability driven investing strategy. (4) Represents interests in several limited partnerships. As of December 31, 2018, a limited partnership with a fair value estimate of $0.6 million using net asset value per share as a practical expedient has not been classified in the fair value hierarchy above in accordance with fair value reporting guidance. (5) Represents approximate fair value of cash held. |
Schedule of Level Three Defined Benefit Plan Assets Roll Forward [Table Text Block] | Level 3 Multiemployer Plan Asset Changes in Fair Value December 31, 2018 Return on assets December 31, Purchases Held at year end Sold during year Transfers into (out) of level 3 December 31, 2018 (Dollars in thousands) Group annuity contract $ 181,403 $ (21,353 ) $ 7,056 $ — $ (19,000 ) $ 148,106 Funded annuity contracts 10,776 (896 ) 620 — — 10,500 Limited partnerships 9,571 1,789 1,050 — — 12,410 Total $ 201,750 $ (20,460 ) $ 8,726 $ — $ (19,000 ) $ 171,016 December 31, 2017 Return on assets December 31, Purchases Held at year end Sold during year Transfers into (out) of level 3 December 31, 2017 (Dollars in thousands) Group annuity contract $ 141,782 $ 33,221 $ 6,400 $ — $ — $ 181,403 Funded annuity contracts 11,382 (1,258 ) 652 — — 10,776 Limited partnerships 8,447 314 810 — — 9,571 Total $ 161,611 $ 32,277 $ 7,862 $ — $ — $ 201,750 |
Retirement and Compensation P_3
Retirement and Compensation Plans Stock based compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Stock Option Activity Number of Shares Weighted-Average Weighted-Average Aggregate (Dollars in thousands, except per share data) Shares under option at January 1, 2018 23,868 $ 21.92 Exercised (12,692 ) 19.12 Forfeited or expired — — Shares under option at December 31, 2018 11,176 25.11 1.42 $ 453 Vested at December 31, 2018 11,176 $ 25.11 1.42 $ 453 Exercisable options at December 31, 2018 11,176 $ 25.11 1.42 $ 453 (1) Represents the difference between the share price and exercise price for each option, excluding options for which the exercise price is above the share price, at December 31, 2018. |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Restricted Stock Unit Activity Number of Units Weighted-Average Grant-Date Fair Value Restricted stock units at January 1, 2018 102,578 $ 52.85 Granted 24,639 71.20 Vested (40,231 ) 46.99 Forfeited or canceled (9,795 ) 60.73 Restricted stock units at December 31, 2018 77,191 60.76 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year ended December 31, 2018 2017 2016 (Dollars in thousands, except per share data) Numerator: Net income attributable to FBL Financial Group, Inc. $ 93,793 $ 187,305 $ 102,842 Less: Dividends on Series B preferred stock 150 150 150 Income available to common stockholders $ 93,643 $ 187,155 $ 102,692 Denominator: Weighted-average shares - basic 24,932,189 25,038,334 24,985,400 Effect of dilutive securities - stock-based compensation 12,412 19,111 43,683 Weighted-average shares - diluted 24,944,601 25,057,445 25,029,083 Earnings per common share $ 3.76 $ 7.47 $ 4.11 Earnings per common share - assuming dilution $ 3.75 $ 7.47 $ 4.10 |
Statutory Insurance Informati_2
Statutory Insurance Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statutory Insurance Information [Abstract] | |
Statutory Accounting Practices Disclosure [Table Text Block] | Statutory Information of our Insurance Subsidiaries Year ended December 31, 2018 2017 2016 (Dollars in thousands) Farm Bureau Life: Net gain from operations (excludes impact of realized gains and losses on investments) $ 100,819 $ 106,062 $ 106,143 Net income 103,923 104,947 100,657 Greenfields: Net loss from operations (excludes impact of realized gains and losses on investments) (321 ) (192 ) (443 ) Net loss (321 ) (192 ) (443 ) Statutory Information of our Insurance Subsidiaries - Continued Farm Bureau Life Greenfields December 31, December 31, 2018 2017 2018 2017 (Dollars in thousands) Total capital and surplus $ 637,205 $ 615,973 $ 8,677 $ 9,006 Unassigned surplus (deficit) 503,722 482,490 (2,123 ) (1,794 ) Risk-Based Capital measurements: Total adjusted capital 704,541 682,570 8,688 9,028 Company action level capital 127,632 123,628 218 172 RBC Ratio 552 % 552 % 3,978 % 5,249 % |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Information [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Reconciliation Between Net Income and Non-GAAP Operating Income Year ended December 31, 2018 2017 2016 (Dollars in thousands) Net income attributable to FBL Financial Group, Inc. (1) $ 93,793 $ 187,305 $ 102,842 Net income adjustments: Initial impact of the Tax Act (2) (617 ) (81,157 ) — Net realized gains/losses on investments (3) (4) 9,546 459 713 Change in fair value of derivatives (3) 6,188 (2,549 ) (1,485 ) Non-GAAP operating income (1) $ 108,910 $ 104,058 $ 102,070 |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Financial Information Concerning our Operating Segments Year ended December 31, 2018 2017 2016 (Dollars in thousands) Pre-tax non-GAAP operating income: Annuity $ 62,846 $ 68,821 $ 66,025 Life Insurance 47,680 53,856 55,977 Corporate and Other (1) 16,013 23,350 22,095 Total pre-tax non-GAAP operating income (1) 126,539 146,027 144,097 Income taxes on non-GAAP operating income (1) (17,629 ) (41,969 ) (42,027 ) Non-GAAP operating income (1) $ 108,910 $ 104,058 $ 102,070 Non-GAAP operating revenues: Annuity $ 223,996 $ 224,184 $ 214,486 Life Insurance 430,194 418,593 414,446 Corporate and Other 93,681 94,340 92,703 747,871 737,117 721,635 Net realized gains/losses on investments (3) (4) (12,455 ) (1,469 ) (1,771 ) Change in fair value of derivatives (3) (15,790 ) 2,263 6,550 Consolidated revenues $ 719,626 $ 737,911 $ 726,414 Net investment income: Annuity $ 218,823 $ 219,700 $ 210,679 Life Insurance 158,003 158,318 154,427 Corporate and Other 33,272 34,918 32,514 410,098 412,936 397,620 Change in fair value of derivatives (15,480 ) 2,263 6,550 Consolidated net investment income $ 394,618 $ 415,199 $ 404,170 Depreciation and amortization: Annuity $ 9,335 $ 6,489 $ 8,253 Life Insurance 16,515 18,720 15,117 Corporate and Other 7,025 (1,120 ) 5,178 32,875 24,089 28,548 Net realized gains (losses) on investments (3) (184 ) (240 ) (673 ) Change in fair value of derivatives (3) (1,598 ) (639 ) 562 Consolidated depreciation and amortization $ 31,093 $ 23,210 $ 28,437 Operating Segment Assets December 31, 2018 2017 (Dollars in thousands) Assets: Annuity $ 4,627,277 $ 4,608,735 Life Insurance 3,528,561 3,367,562 Corporate and Other (1) 1,554,634 1,696,999 9,710,472 9,673,296 Unrealized gains in accumulated other comprehensive income (5) 123,158 380,105 Consolidated assets (1) $ 9,833,630 $ 10,053,401 (1) Prior period amounts have been adjusted to reflect the accounting change for LIHTC investments. See Note 1 to our consolidated financial statements for additional information. (2) Amount represents a change in our deferred tax assets and liabilities due to the enactment of the Tax Act. See Note 5 to our consolidated financial statements for additional information. (3) Amounts are net of adjustments, as applicable, to amortization of unearned revenue reserves, deferred acquisition costs, value of insurance in force acquired, interest sensitive product reserves and income taxes attributable to these items. (4) Beginning in 2018, amounts include the change in fair value of equity securities due to a change in accounting guidance. See Note 1 to our consolidated financial statements for additional information. (5) Amounts are net adjustments for assumed changes in deferred acquisition costs and value of insurance in force acquired attributable to these items. |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Equity Income by Operating Segment Year ended December 31, 2018 2017 2016 (Dollars in thousands) Pre-tax equity income: Life Insurance $ 3,840 $ 2,741 $ — Corporate and Other 1,778 1,243 3,490 Total pre-tax equity income 5,618 3,984 3,490 Income taxes (1,179 ) (1,394 ) (1,221 ) Equity income, net of related income taxes $ 4,439 $ 2,590 $ 2,269 |
Reconciliation of non-GAAP measures [table text block] [Table Text Block] | Reconciliation of Traditional Life Insurance Premiums, Net of Reinsurance Year ended December 31, 2018 2017 2016 (Dollars in thousands) Traditional and universal life insurance premiums collected $ 304,229 $ 292,344 $ 281,551 Premiums collected on interest sensitive products (106,609 ) (97,963 ) (85,622 ) Traditional life insurance premiums collected 197,620 194,381 195,929 Change in due premiums and other 692 949 985 Traditional life insurance premiums as included in the Consolidated Statements of Operations. $ 198,312 $ 195,330 $ 196,914 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 Year ended December 31, 2018 2017 2016 (Dollars in thousands) Annuity Surrender charges and other $ 5,173 $ 4,484 $ 3,803 Life Insurance Administration charges $ 16,944 $ 15,487 $ 14,170 Cost of insurance charges 50,727 46,096 48,111 Surrender charges 2,352 1,913 1,181 Amortization of policy initiation fees 3,972 1,437 (24 ) Total $ 73,995 $ 64,933 $ 63,438 Corporate and Other Administration charges $ 5,021 $ 5,332 $ 5,547 Cost of insurance charges 29,151 29,670 29,805 Surrender charges 92 150 213 Separate account charges 8,535 8,246 7,957 Amortization of policy initiation fees 822 121 1,165 Total $ 43,621 $ 43,519 $ 44,687 Consolidated interest sensitive product charges as included in the Statements of Operations $ 122,789 $ 112,936 $ 111,928 |
Concentration Risk Disclosure [Text Block] | Premium Concentration by State Year ended December 31, 2018 2017 2016 Life and annuity collected premiums: Iowa 25.5 % 25.9 % 25.1 % Kansas 19.2 18.1 19.1 Oklahoma 7.9 8.2 8.0 |
Quarterly Financial Informati_2
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Unaudited Quarterly Results of Operations 2018 Quarter ended March 31, June 30, September 30, December 31, (Dollars in thousands, except per share data) Premiums and product charges $ 79,595 $ 81,997 $ 79,285 $ 80,224 Net investment income 101,022 103,974 105,757 83,865 Realized gains (losses) on investments (2,787 ) 841 (759 ) (9,569 ) Total revenues 182,430 190,449 188,111 158,636 Net income attributable to FBL Financial Group, Inc. 23,565 32,803 31,010 6,415 Earnings per common share $ 0.94 $ 1.31 $ 1.24 $ 0.26 Earnings per common share - assuming dilution $ 0.94 $ 1.31 $ 1.24 $ 0.26 2017 Quarter ended March 31, June 30, September 30, December 31, (Dollars in thousands, except per share data) Premiums and product charges $ 77,635 $ 79,718 $ 75,091 $ 75,822 Net investment income 100,994 103,908 102,950 107,347 Realized gains (losses) on investments (469 ) 921 14 (1,420 ) Total revenues 181,920 188,997 181,556 185,438 Net income attributable to FBL Financial Group, Inc. 25,144 32,054 26,127 103,980 Earnings per common share $ 1.00 $ 1.28 $ 1.04 $ 4.15 Earnings per common share - assuming dilution $ 1.00 $ 1.28 $ 1.04 $ 4.15 |
Significant Accounting Polici_4
Significant Accounting Policies Consolidated Balance Sheet Impact (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Jan. 01, 2016 | |
Securities and indebtedness of related parties | $ 47,823 | $ 60,962 | |
Current income taxes recoverable | 6,764 | 4,807 | |
Other assets | 177,764 | 163,518 | |
Deferred income taxes | 130,425 | 75,449 | |
Retained earnings | 935,423 | $ 937,097 | |
Previously Reported [Member] | Accounting Standards Update 2014-01 [Member] | |||
Securities and indebtedness of related parties | 130,240 | ||
Current income taxes recoverable | 3,269 | ||
Other assets | 112,054 | ||
Deferred income taxes | 131,912 | ||
Retained earnings | 947,148 | ||
Restatement Adjustment [Member] | Accounting Standards Update 2014-01 [Member] | |||
Securities and indebtedness of related parties | 47,823 | ||
Current income taxes recoverable | 6,764 | ||
Other assets | 177,764 | ||
Deferred income taxes | 130,425 | ||
Retained earnings | 935,423 | ||
Equity Method Investments [Member] | Accounting Standards Update 2014-01 [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (82,417) | ||
Income Taxes Receivable, Current [Member] | Accounting Standards Update 2014-01 [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 3,495 | ||
Other Assets [Member] | Accounting Standards Update 2014-01 [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 65,710 | ||
Total Assets [Member] | Accounting Standards Update 2014-01 [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (13,212) | ||
Deferred income Taxes [Member] | Accounting Standards Update 2014-01 [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (1,487) | ||
Total liabilities and stockholders equity [Member] | Accounting Standards Update 2014-01 [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (13,212) | ||
Retained Earnings [Member] | Accounting Standards Update 2014-01 [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ (300) | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (11,725) |
Significant Accounting Polici_5
Significant Accounting Policies Consolidated Statements of Operations Impact (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other than Temporary Impairment Losses, Investments | $ 4,998,000 | $ 1,553,000 | $ 4,869,000 | ||||||||
Income Tax Expense (Benefit) | (11,650,000) | 39,983,000 | (41,220,000) | ||||||||
Equity income, net of related income taxes | $ 4,439,000 | $ 2,590,000 | $ 2,269,000 | ||||||||
Earnings (loss) per common share - basic and assuming dilution | $ 0.26 | $ 1.24 | $ 1.31 | $ 0.94 | $ 4.15 | $ 1.04 | $ 1.28 | $ 1 | $ 3.76 | $ 7.47 | $ 4.11 |
Accounting Standards Update 2014-01 [Member] | |||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | $ (7,022,000) | $ (4,381,000) | |||||||||
Earnings (loss) per common share - basic and assuming dilution | $ (0.28) | $ (0.18) | |||||||||
Previously Reported [Member] | Accounting Standards Update 2014-01 [Member] | |||||||||||
Other than Temporary Impairment Losses, Investments | $ (3,986,000) | $ (4,869,000) | |||||||||
Income Tax Expense (Benefit) | 40,729,000 | (46,010,000) | |||||||||
Equity income, net of related income taxes | 11,299,000 | 11,440,000 | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Basic Earnings Per Share | (0.03) | ||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Diluted Earnings Per Share | $ 0.03 | ||||||||||
Restatement Adjustment [Member] | Accounting Standards Update 2014-01 [Member] | |||||||||||
Other than Temporary Impairment Losses, Investments | (1,553,000) | (4,869,000) | |||||||||
Income Tax Expense (Benefit) | (39,983,000) | 41,220,000 | |||||||||
Equity income, net of related income taxes | 2,590,000 | 2,269,000 | |||||||||
Net Impairment Losses Recognized In Earnings [Member] | Accounting Standards Update 2014-01 [Member] | |||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 2,433,000 | 0 | |||||||||
Income Tax Expense (Benefit) [Member] | Accounting Standards Update 2014-01 [Member] | |||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (746,000) | 4,790,000 | |||||||||
Income (Loss) from Equity Method Investments [Member] | Accounting Standards Update 2014-01 [Member] | |||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (8,709,000) | $ (9,171,000) | |||||||||
Net Income (Loss) Attributable to Parent [Member] | Previously Reported [Member] | Accounting Standards Update 2014-01 [Member] | |||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | $ 800,000 |
Significant Accounting Polici_6
Significant Accounting Policies Accounting principles (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Cash-based restricted stock unit plan [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 0.6 | $ 1 | $ 1.2 | |
Accounting Standards Update 2016-09 [Member] | Employee Stock Option [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 0.2 | $ 0.6 | ||
Accounting Standards Update 2016-09 [Member] | Cash-based restricted stock unit plan [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Earnings Per Share, Basic, Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 0.01 | $ 0.02 | ||
Earnings Per Share, Diluted, Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 0.01 | $ 0.02 | ||
Accounting Standards Update 2016-01 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | $ (6.2) | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Basic Earnings Per Share | $ (0.25) | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Diluted Earnings Per Share | $ (0.25) | |||
Retained Earnings [Member] | Accounting Standards Update 2016-01 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 5.5 |
Significant Accounting Polici_7
Significant Accounting Policies Other Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Net | $ 38.5 | $ 35.8 | |
Accumulated Depreciation | 79.2 | 78.7 | |
Depreciation expense | 9.9 | 8.7 | $ 8.7 |
Goodwill | $ 9.9 | $ 9.9 |
Significant Accounting Polici_8
Significant Accounting Policies Recognition of Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Recognition of underwriting, acquisition and insurance costs [Line Items] | |||
Commission expense, net of deferrals | $ 23,801 | $ 24,356 | $ 22,735 |
Amortization of deferred acquisition costs | 33,137 | 22,507 | 28,225 |
Amortization of value of insurance in force acquired | 2,167 | 2,178 | 2,392 |
Other underwriting, acquisition and insurance expenses, net of deferrals | 92,950 | 85,837 | 82,615 |
Total | $ 152,055 | $ 134,878 | $ 135,967 |
Significant Accounting Polici_9
Significant Accounting Policies Other income other expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Future policy benefits: | |||
Future policy benefits, assumptions, average rate in investment yields in gross margin estimation | 5.48% | 5.47% | 5.51% |
Other Policyholder Claims and Benefits | |||
Premiums from policies subject to participation in dividends | 28.00% | 29.00% | 32.00% |
Contracts in force subject to participation in dividends | 10.00% | 10.00% | 11.00% |
Other Income and Expenses [Abstract] | |||
Real Estate Owned, Valuation Allowance | $ 0 | $ 0 | |
Farm Bureau Property & Casualty insurance company [Member] | |||
Other Income and Expenses [Abstract] | |||
Lease income | 4.9 | 4.6 | $ 4.8 |
Subsidiaries [Member] | |||
Other Income and Expenses [Abstract] | |||
Nonoperating Income (Expense) | 2.7 | 2.5 | 3.4 |
Investment Advice [Member] | Farm Bureau Property & Casualty insurance company [Member] | |||
Other Income and Expenses [Abstract] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2.9 | $ 2.7 | $ 2.5 |
Minimum [Member] | Participating Life Insurance Contract [Member] | |||
Future policy benefits: | |||
Future Policy Benefits, Interest Rate Assumptions | 2.00% | ||
Minimum [Member] | Interest Sensitive Life [Member] | |||
Future policy benefits: | |||
Future Policy Benefits, Interest Rate Assumptions | 1.00% | 1.00% | 1.00% |
Maximum [Member] | Participating Life Insurance Contract [Member] | |||
Future policy benefits: | |||
Future Policy Benefits, Interest Rate Assumptions | 6.00% | ||
Maximum [Member] | Interest Sensitive Life [Member] | |||
Future policy benefits: | |||
Future Policy Benefits, Interest Rate Assumptions | 5.50% | 5.50% | 5.50% |
Investment Operations Available
Investment Operations Available for Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 6,856,277 | $ 6,757,250 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 305,709 | 561,717 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 128,941 | 27,000 | |
Fair Value | 7,033,045 | 7,291,967 | |
Non-credit losses on other-than-temporary impairments (1) | [1] | 3,966 | 680 |
Corporate | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 3,231,846 | 3,374,927 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 138,972 | 329,299 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 90,933 | 15,955 | |
Fair Value | 3,279,885 | 3,688,271 | |
Non-credit losses on other-than-temporary impairments (1) | 0 | (504) | |
Residential mortgage-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 584,133 | 483,671 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 29,969 | 35,890 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 7,242 | 3,280 | |
Fair Value | 606,860 | 516,281 | |
Non-credit losses on other-than-temporary impairments (1) | 2,823 | 339 | |
Commercial mortgage-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 873,672 | 674,076 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 24,284 | 34,464 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 19,390 | 3,233 | |
Fair Value | 878,566 | 705,307 | |
Non-credit losses on other-than-temporary impairments (1) | 0 | 0 | |
Other asset-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 697,332 | 818,071 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 15,567 | 18,645 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 5,329 | 3,214 | |
Fair Value | 707,570 | 833,502 | |
Non-credit losses on other-than-temporary impairments (1) | 1,143 | 845 | |
United States Government and agencies | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 19,673 | 23,378 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 996 | 1,606 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 134 | 79 | |
Fair Value | 20,535 | 24,905 | |
Non-credit losses on other-than-temporary impairments (1) | 0 | 0 | |
States and political subdivisions | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 1,449,621 | 1,383,127 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 95,921 | 141,813 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 5,913 | 1,239 | |
Fair Value | 1,539,629 | 1,523,701 | |
Non-credit losses on other-than-temporary impairments (1) | $ 0 | 0 | |
Equity Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Equity Securities, Amortized Cost Basis | 96,715 | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 7,695 | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | 265 | ||
Available-for-sale Securities, Equity Securities | 104,145 | ||
Non-redeemable preferred stocks | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Equity Securities, Amortized Cost Basis | 92,951 | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 7,146 | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | 265 | ||
Available-for-sale Securities, Equity Securities | 99,832 | ||
Common stocks | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Equity Securities, Amortized Cost Basis | 3,764 | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 549 | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||
Available-for-sale Securities, Equity Securities | $ 4,313 | ||
[1] | Non-credit losses subsequent to the initial impairment measurement date on OTTI losses are included in the gross unrealized gains and gross unrealized losses columns above. The non-credit loss component of OTTI losses for residential mortgage-backed and other asset-backed securities at December 31, 2018 and December 31, 2017 were in an unrealized gain position due to increases in estimated fair value subsequent to initial recognition of non-credit losses on such securities. |
Investment Operations Availab_2
Investment Operations Available-for-sale Fixed Maturities by Maturity Date (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost | $ 123,881 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Amortized Cost | 517,489 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Amortized Cost | 698,549 | |
Debt Securities, Available-for-sale, Allocated and Single Maturity Date, Maturity, after 10 Years, Amortized Cost | 3,361,221 | |
Available For Sale Securities Debt Maturities with Maturity Date, Amortized Cost | 4,701,140 | |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 2,155,137 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | 6,856,277 | $ 6,757,250 |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value | 125,458 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value | 531,498 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value | 708,191 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value | 3,474,902 | |
Available For Sale Securities Debt Maturities with Maturity Date, Fair Value | 4,840,049 | |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 2,192,996 | |
Debt Securities, Available-for-sale | $ 7,033,045 | $ 7,291,967 |
Investment Operations Net Unrea
Investment Operations Net Unrealized Gains (Losses) on Investments in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Net Unrealized Gains Losses [Line Items] | |||
Assumed changes in amortization of DAC | $ 46,732 | $ 147,173 | |
Impact of net unrealized investment gains and losses | 6,878 | 14,870 | $ 12,382 |
Assumed changes in amortization patter of URR | 5,134 | 12,705 | |
Assumed changes in policyholder liability | (1,642) | (18,499) | |
Provision for deferred income taxes | 26,596 | 78,605 | |
Accumulated net unrealized investment gain (loss) [Member] | |||
Net Unrealized Gains Losses [Line Items] | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | 176,768 | 542,148 | |
Net Unrealized gains losses on investments in Accumulated other comprehensive Income | 100,054 | 295,706 | |
Debt Securities [Member] | |||
Net Unrealized Gains Losses [Line Items] | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | 176,768 | 534,718 | |
Equity Securities [Member] | |||
Net Unrealized Gains Losses [Line Items] | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | $ 0 | $ 7,430 |
Investment Operations Change in
Investment Operations Change in unrealized appreciation/depreciation of investments in AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Securities, Available-for-sale [Line Items] | |||
Change in unrealized appreciation/depreciation of investments | $ (357,950) | $ 192,580 | $ 86,380 |
Debt Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Change in unrealized appreciation/depreciation of investments | (357,950) | 187,639 | 89,222 |
Equity Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Change in unrealized appreciation/depreciation of investments | $ 0 | $ 4,941 | $ (2,842) |
Investment Operations Fixed Mat
Investment Operations Fixed Maturity and Equity Securities with Unrealized Losses by Length of Time (Details) $ in Thousands | Dec. 31, 2018USD ($)issuerssecurities | Dec. 31, 2017USD ($)issuerssecurities |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | securities | 709 | 247 |
Available For Sale Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Issuers | issuers | 465 | 154 |
Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 1,923,500 | $ 483,283 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (82,010) | (7,245) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 603,763 | 325,430 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (46,931) | (19,755) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 2,527,263 | 808,713 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (128,941) | $ (27,000) |
Percent of Total | 100.00% | 100.00% |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 1,035,176 | $ 85,019 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (60,299) | (1,261) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 207,381 | 183,820 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (30,634) | (14,694) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,242,557 | 268,839 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (90,933) | $ (15,955) |
Percent of Total | 70.50% | 59.10% |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 191,365 | $ 76,393 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (4,482) | (1,757) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 74,113 | 31,779 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (2,760) | (1,523) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 265,478 | 108,172 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (7,242) | $ (3,280) |
Percent of Total | 5.60% | 12.10% |
Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 302,159 | $ 151,158 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (9,947) | (2,078) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 148,855 | 16,398 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (9,443) | (1,155) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 451,014 | 167,556 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (19,390) | $ (3,233) |
Percent of Total | 15.00% | 12.00% |
Other asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 250,119 | $ 159,111 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (3,397) | (2,006) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 149,997 | 71,064 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1,932) | (1,208) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 400,116 | 230,175 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (5,329) | $ (3,214) |
Percent of Total | 4.10% | 11.90% |
United States Government and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 0 | $ 5,698 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (47) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 6,474 | 1,864 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (134) | (32) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 6,474 | 7,562 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (134) | $ (79) |
Percent of Total | 0.10% | 0.30% |
States and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 144,681 | $ 5,904 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (3,885) | (96) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 16,943 | 20,505 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (2,028) | (1,143) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 161,624 | 26,409 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (5,913) | $ (1,239) |
Percent of Total | 4.70% | 4.60% |
Equity Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 2,819 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (71) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 4,807 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (194) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 7,626 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (265) | |
Non-redeemable preferred stocks | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 2,819 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (71) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 4,807 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (194) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 7,626 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (265) |
Investment Operations Mortgage
Investment Operations Mortgage Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Other Commitment | $ 47,600 | |
Carrying Value | $ 1,039,829 | $ 971,812 |
Percent of Total | 100.00% | 100.00% |
Year of origination 2018 [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 137,519 | |
Percent of Total | 13.20% | |
Year of origination 2017 [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 207,540 | $ 214,365 |
Percent of Total | 20.00% | 22.10% |
Year of origination 2016 [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 149,437 | $ 154,359 |
Percent of Total | 14.40% | 15.90% |
Year of origination 2015 [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 128,877 | $ 144,890 |
Percent of Total | 12.40% | 14.90% |
Year of origination 2014 [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 72,827 | $ 77,866 |
Percent of Total | 7.00% | 8.00% |
Year of origination prior [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 343,629 | $ 380,332 |
Percent of Total | 33.00% | 39.10% |
0% - 50% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 409,089 | $ 334,037 |
Percent of Total | 39.30% | 34.40% |
51% - 60% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 314,038 | $ 258,359 |
Percent of Total | 30.20% | 26.60% |
61% - 70% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 264,973 | $ 297,404 |
Percent of Total | 25.50% | 30.60% |
71% - 80% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 37,418 | $ 63,116 |
Percent of Total | 3.60% | 6.50% |
81% - 90% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 14,311 | $ 18,896 |
Percent of Total | 1.40% | 1.90% |
South Atlantic | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 301,206 | $ 296,947 |
Percent of Total | 29.00% | 30.50% |
Pacific | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 162,824 | $ 146,320 |
Percent of Total | 15.70% | 15.00% |
West North Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 126,320 | $ 127,096 |
Percent of Total | 12.10% | 13.10% |
East North Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 117,768 | $ 91,971 |
Percent of Total | 11.30% | 9.50% |
Mountain | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 101,335 | $ 105,627 |
Percent of Total | 9.70% | 10.90% |
West South Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 85,919 | $ 85,566 |
Percent of Total | 8.30% | 8.80% |
East South Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 76,098 | $ 67,228 |
Percent of Total | 7.30% | 6.90% |
Middle Atlantic | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 34,843 | $ 16,052 |
Percent of Total | 3.40% | 1.70% |
New England | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 33,516 | $ 35,005 |
Percent of Total | 3.20% | 3.60% |
Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 443,048 | $ 410,090 |
Percent of Total | 42.60% | 42.20% |
Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Other Commitment | $ 5,700 | |
Carrying Value | $ 310,625 | $ 292,257 |
Percent of Total | 29.90% | 30.10% |
Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 211,138 | $ 207,180 |
Percent of Total | 20.30% | 21.30% |
Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 75,018 | $ 62,285 |
Percent of Total | 7.20% | 6.40% |
Investment Operations Impaired
Investment Operations Impaired Mortgage Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Impaired [Line Items] | |||
Impaired mortgage loans, Unpaid Principal Balance | $ 18,622 | $ 19,027 | |
Financing Receivable, Allowance for Credit Losses | 3,107 | 497 | $ 713 |
Impaired mortgage loans, Related Allowance | $ 15,515 | $ 18,530 |
Investment Operations Allowance
Investment Operations Allowance on Mortgage Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance on mortgage loans | $ 497 | $ 713 |
Provision for Loan, Lease, and Other Losses | 2,778 | 0 |
Charge offs | 168 | 216 |
Allowance on mortgage loans | $ 3,107 | $ 497 |
Investment Operations Component
Investment Operations Components of Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross Investment Income, Operating | $ 403,065 | $ 422,666 | $ 411,561 | ||||||||
Derivative income (loss) | (10,405) | 7,687 | 3,935 | ||||||||
Prepayment fee income and other | 9,208 | 12,470 | 10,992 | ||||||||
Less investment expenses | (8,447) | (7,467) | (7,391) | ||||||||
Net investment income | $ 83,865 | $ 105,757 | $ 103,974 | $ 101,022 | $ 107,347 | $ 102,950 | $ 103,908 | $ 100,994 | 394,618 | 415,199 | 404,170 |
Fixed maturities - available for sale | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross Investment Income, Operating | 340,498 | 344,302 | 342,657 | ||||||||
Equity securities | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross Investment Income, Operating | 8,488 | 6,502 | 6,558 | ||||||||
Mortgage loans | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross Investment Income, Operating | 45,294 | 42,185 | 38,098 | ||||||||
Policy loans | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross Investment Income, Operating | 9,210 | 9,014 | 8,956 | ||||||||
Short-term investments, cash and cash equivalents | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross Investment Income, Operating | $ 772 | $ 506 | $ 365 |
Investment Operations Realized
Investment Operations Realized gains losses on investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Gain (Loss) on Securities [Line Items] | ||||||
Other | $ (19) | $ 40 | ||||
Gain (Loss) on sale of Investments, Excluding Other than Temporary Impairments | 1,813 | 599 | $ 3,106 | |||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments | (7,276) | 599 | 3,106 | |||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | (4,998) | (1,553) | (4,869) | |||
Net realized gains (losses) on investments recorded in income | (12,274) | (954) | (1,763) | |||
Proceeds from Sale of Debt Securities, Available-for-sale | 82,900 | 58,700 | 109,500 | |||
Credit-related portion of fixed maturity losses (2) | ||||||
Gain (Loss) on Securities [Line Items] | ||||||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | (32) | [1] | 0 | (4,767) | [1] | |
Other credit-related (3) | ||||||
Gain (Loss) on Securities [Line Items] | ||||||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | [2] | (4,966) | (1,553) | (102) | ||
Categories of Investments, Cost-method Investments [Member] | ||||||
Gain (Loss) on Securities [Line Items] | ||||||
Mortgage loans | 0 | 0 | 817 | |||
Real estate | 0 | 304 | 0 | |||
Other | 490 | |||||
Debt Securities [Member] | Categories of Investments, Marketable Securities, Available-for-sale Securities [Member] | ||||||
Gain (Loss) on Securities [Line Items] | ||||||
Gross gains | 2,195 | 1,426 | 9,793 | |||
Gross losses | (363) | (1,081) | (8,523) | |||
Equity Securities [Member] | Categories of Investments, Marketable Securities, Available-for-sale Securities [Member] | ||||||
Gain (Loss) on Securities [Line Items] | ||||||
Equity securities | (952) | (90) | 529 | |||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments | (9,089) | |||||
Accounting Standards Update 2016-01 [Member] | Equity Securities [Member] | Categories of Investments, Marketable Securities, Available-for-sale Securities [Member] | ||||||
Gain (Loss) on Securities [Line Items] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | $ (8,137) | [3] | $ 0 | $ 0 | ||
[1] | Amount represents the credit-related losses recognized for fixed maturities that were impaired 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). | |||||
[2] | Amount represents credit-related losses for fixed maturities, mortgage loans, and other investments written down to fair value through income. | |||||
[3] | See Note 1 to our consolidated financial statements for discussion of change in accounting policy for equity securities during 2018. |
Investment Operations Credit lo
Investment Operations Credit loss component of other-than-temporary impairments on fixed maturities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Balance at beginning of period | $ (12,392) | $ (14,500) |
Increases to previously impaired investments | 32 | 0 |
Reductions due to investments sold | 3,932 | 1,521 |
Reduction for credit loss that no longer has a portion of the OTTI loss recognized in other comprehensive income | 2,529 | 587 |
Balance at end of period | $ (5,963) | $ (12,392) |
Investment Operations Affordabl
Investment Operations Affordable Housing Program (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Income Tax Expense (Benefit) | $ 11,650 | $ (39,983) | $ 41,220 |
Other Commitment | 47,600 | ||
Qualified Affordable Housing Project Investments, Commitment | 1,560 | ||
Affordable Housing Tax Credit Investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Income Tax Expense (Benefit) | (3,800) | $ (1,200) | $ (4,700) |
Other Commitment, Due in Next Twelve Months | 564 | ||
Other Commitment, Due in Second Year | 165 | ||
Other Commitment, Due in Third Year | $ 831 |
Investment Operations Variable
Investment Operations Variable interest entities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investment Holdings [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | $ 103,701 | $ 100,816 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 151,341 | 151,846 |
LIHTC investments | ||
Investment Holdings [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 54,037 | 65,710 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 55,597 | 67,396 |
Investment companies | ||
Investment Holdings [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 40,236 | 25,335 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 79,578 | 62,372 |
Real estate limited partnerships | ||
Investment Holdings [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 8,945 | 8,589 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 15,673 | 20,590 |
Other | ||
Investment Holdings [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 483 | 1,182 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 493 | $ 1,488 |
Investment Operations Derivativ
Investment Operations Derivative instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Derivative Assets | $ 5,757 | $ 19,045 | |
Derivative Liability | (47,454) | (28,042) | |
Derivative, Gain (Loss) on Derivative, Net | (7,162) | 8,007 | $ 1,545 |
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | 3,800 | ||
Net exposure to credit losses on derivatives | 1,000 | ||
Equity Option [Member] | Investment Income [Member] | |||
Derivative [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (7,749) | 9,372 | 2,990 |
Embedded Derivative Financial Instruments - MODCO [Member] | Investment Income [Member] | |||
Derivative [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (2,480) | (1,440) | 716 |
Embedded Derivative Financial Instruments - Interest only Security [Member] | Investment Income [Member] | |||
Derivative [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (176) | (246) | 229 |
Embedded Derivative Financial Instruments [Member] | Interest sensitive product charges | |||
Derivative [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 3,243 | 321 | $ (2,390) |
Call options (reported in other investments) | Equity Option [Member] | |||
Derivative [Line Items] | |||
Derivative Assets | 4,745 | 14,824 | |
Modified coinsurance (reported in reinsurance recoverable) | Embedded Derivative Financial Instruments [Member] | |||
Derivative [Line Items] | |||
Derivative Asset, Assumed | 157 | 2,125 | |
Interest-only security (reported in fixed maturities) | Embedded Derivative Financial Instruments [Member] | |||
Derivative [Line Items] | |||
Derivative Assets | 855 | 2,096 | |
Indexed products (reported in liability for future policy benefits) | Embedded Derivative Financial Instruments [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | (40,028) | (27,774) | |
Modified coinsurance (reported in other liabilities) | Embedded Derivative Financial Instruments [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | $ (7,426) | $ (268) |
Investment Operations Other (De
Investment Operations Other (Details) $ in Millions | Dec. 31, 2018USD ($) |
Summary of Investment Holdings [Line Items] | |
Deposit Assets | $ 7,819 |
Investment, Non-Income Producing Flag | 1.5 |
Collateral Pledged [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-sale, Restricted | $ 484.3 |
Fair Value Valuation of our Fin
Fair Value Valuation of our Financial Instruments Measured on a Recurring Basis by Hierarchy Levels (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other investments | $ 5,757 | $ 19,045 | |
Assets held in separate accounts | 561,281 | 651,963 | |
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 | 7,033,045 | 7,291,967 | |
Other investments | 4,745 | 14,824 | |
Cash, cash equivalents and short-term investments | 34,748 | 69,703 | |
Reinsurance recoverable | 157 | 2,125 | |
Assets held in separate accounts | 561,281 | 651,963 | |
Assets, Fair Value Disclosure | 7,723,532 | 8,134,727 | |
Future policy benefits - indexed product embedded derivatives | 40,028 | 27,774 | |
Other liabilities | 780 | 268 | |
Liabilities, Fair Value Disclosure | 40,808 | 28,042 | |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 7,917 | 9,078 | |
Other investments | 0 | 0 | |
Cash, cash equivalents and short-term investments | 34,748 | 69,703 | |
Reinsurance recoverable | 0 | 0 | |
Assets held in separate accounts | 561,281 | 651,963 | |
Assets, Fair Value Disclosure | 609,207 | 735,057 | |
Future policy benefits - indexed product embedded derivatives | 0 | 0 | |
Other liabilities | 0 | 0 | |
Liabilities, Fair Value Disclosure | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 6,931,576 | 7,100,984 | |
Other investments | 4,745 | 14,824 | |
Cash, cash equivalents and short-term investments | 0 | 0 | |
Reinsurance recoverable | 157 | 2,125 | |
Assets held in separate accounts | 0 | 0 | |
Assets, Fair Value Disclosure | 7,013,911 | 7,210,358 | |
Future policy benefits - indexed product embedded derivatives | 0 | 0 | |
Other liabilities | 780 | 268 | |
Liabilities, Fair Value Disclosure | 780 | 268 | |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 93,552 | 181,905 | |
Other investments | 0 | 0 | |
Cash, cash equivalents and short-term investments | 0 | 0 | |
Reinsurance recoverable | 0 | 0 | |
Assets held in separate accounts | 0 | 0 | |
Assets, Fair Value Disclosure | 100,414 | 189,312 | |
Future policy benefits - indexed product embedded derivatives | 27,774 | ||
Other liabilities | 0 | 0 | |
Liabilities, Fair Value Disclosure | 40,028 | 27,774 | |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 100,414 | 189,312 | |
Corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 3,279,885 | 3,688,271 | |
Corporate | 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 | 3,279,885 | 3,688,271 | |
Corporate | Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 0 | 0 | |
Corporate | Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 3,257,874 | 3,654,671 | |
Corporate | Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 22,011 | 33,600 | |
Corporate | Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 22,011 | 33,600 | |
Residential mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 606,860 | 516,281 | |
Residential mortgage-backed | 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, Fair Value Disclosure | 606,860 | 516,281 | |
Residential mortgage-backed | Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure | 0 | 0 | |
Residential mortgage-backed | Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure | 606,860 | 507,157 | |
Residential mortgage-backed | Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure | 0 | 9,124 | |
Residential mortgage-backed | Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 9,124 | ||
Commercial mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 878,566 | 705,307 | |
Commercial mortgage-backed | 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, Fair Value Disclosure | 878,566 | 705,307 | |
Commercial mortgage-backed | Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure | 0 | 0 | |
Commercial mortgage-backed | Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure | 810,626 | 619,606 | |
Commercial mortgage-backed | Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure | 67,940 | 85,701 | |
Commercial mortgage-backed | Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 67,940 | 85,701 | |
Other asset-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 707,570 | 833,502 | |
Other asset-backed | 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, Fair Value Disclosure | 707,570 | 833,502 | |
Other asset-backed | Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure | 0 | 0 | |
Other asset-backed | Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure | 703,969 | 780,022 | |
Other asset-backed | Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure | 3,601 | 53,480 | |
Other asset-backed | Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 3,601 | 53,480 | |
United States Government and agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 20,535 | 24,905 | |
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 | 20,535 | 24,905 | |
United States Government and agencies | Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 7,917 | 9,078 | |
United States Government and agencies | Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 12,618 | 15,827 | |
United States Government and agencies | Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 0 | 0 | |
States and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 1,539,629 | 1,523,701 | |
States and political subdivisions | 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 | 1,539,629 | 1,523,701 | |
States and political subdivisions | Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 0 | 0 | |
States and political subdivisions | Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 1,539,629 | 1,523,701 | |
States and political subdivisions | Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 0 | 0 | |
Non-redeemable preferred stocks | 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 | 84,295 | 99,832 | |
Non-redeemable preferred stocks | Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 0 | 0 | |
Non-redeemable preferred stocks | Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 77,433 | 92,425 | |
Non-redeemable preferred stocks | Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 6,862 | 7,407 | |
Non-redeemable preferred stocks | Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 6,862 | 7,407 | |
Common stocks | 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 | 5,261 | [1] | 4,313 |
Common stocks | Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 5,261 | [1] | 4,313 |
Common stocks | Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 0 | 0 | |
Common stocks | Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 0 | $ 0 | |
Private Equity Funds, US [Member] | Common stocks | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | 6,800 | ||
Private Equity Funds, US [Member] | Common stocks | Significant unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Alternative Investment | $ 3,300 | ||
[1] | A private equity fund with a fair value estimate of $3.3 million using net asset value per share as a practical expedient, has not been classified in the fair value hierarchy above in accordance with fair value reporting guidance. This fund invests in senior secured middle market loans and has unfunded commitments totaling $6.8 million at December 31, 2018. The investment is not currently eligible for redemption. |
Fair Value Level 3 Fixed Maturi
Fair Value Level 3 Fixed Maturity Securities on a recurring basis by valuation source (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | $ 3,279,885 | $ 3,688,271 |
Percent of Total | 70.50% | 59.10% |
Commercial mortgage-backed | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | $ 878,566 | $ 705,307 |
Percent of Total | 15.00% | 12.00% |
Residential mortgage-backed | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | $ 606,860 | $ 516,281 |
Percent of Total | 5.60% | 12.10% |
Other asset-backed | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | $ 707,570 | $ 833,502 |
Percent of Total | 4.10% | 11.90% |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | $ 93,552 | $ 181,905 |
Fair Value, Measurements, Recurring [Member] | Corporate | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | 22,011 | 33,600 |
Fair Value, Measurements, Recurring [Member] | Non-redeemable preferred stocks | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | 6,862 | 7,407 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | 7,033,045 | 7,291,967 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | $ 100,414 | $ 189,312 |
Percent of Total | 100.00% | 100.00% |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | $ 3,279,885 | $ 3,688,271 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Corporate | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | 22,011 | 33,600 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Commercial mortgage-backed | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | 67,940 | 85,701 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Residential mortgage-backed | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | 9,124 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Other asset-backed | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | 3,601 | 53,480 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Non-redeemable preferred stocks | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | 84,295 | 99,832 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Non-redeemable preferred stocks | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | 6,862 | 7,407 |
Estimate of Fair Value Measurement [Member] | Third-party vendors | Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | $ 69,880 | $ 146,460 |
Percent of Total | 69.60% | 77.40% |
Estimate of Fair Value Measurement [Member] | Third-party vendors | Fair Value, Measurements, Recurring [Member] | Corporate | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | $ 1,940 | $ 4,555 |
Estimate of Fair Value Measurement [Member] | Third-party vendors | Fair Value, Measurements, Recurring [Member] | Commercial mortgage-backed | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | 67,940 | 85,701 |
Estimate of Fair Value Measurement [Member] | Third-party vendors | Fair Value, Measurements, Recurring [Member] | Residential mortgage-backed | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | 9,124 | |
Estimate of Fair Value Measurement [Member] | Third-party vendors | Fair Value, Measurements, Recurring [Member] | Other asset-backed | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | 0 | 47,080 |
Estimate of Fair Value Measurement [Member] | Third-party vendors | Fair Value, Measurements, Recurring [Member] | Non-redeemable preferred stocks | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Priced internally | Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | $ 30,534 | $ 42,852 |
Percent of Total | 30.40% | 22.60% |
Estimate of Fair Value Measurement [Member] | Priced internally | Fair Value, Measurements, Recurring [Member] | Corporate | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | $ 20,071 | $ 29,045 |
Estimate of Fair Value Measurement [Member] | Priced internally | Fair Value, Measurements, Recurring [Member] | Commercial mortgage-backed | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Priced internally | Fair Value, Measurements, Recurring [Member] | Residential mortgage-backed | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | 0 | |
Estimate of Fair Value Measurement [Member] | Priced internally | Fair Value, Measurements, Recurring [Member] | Other asset-backed | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | 3,601 | 6,400 |
Estimate of Fair Value Measurement [Member] | Priced internally | Fair Value, Measurements, Recurring [Member] | Non-redeemable preferred stocks | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | $ 6,862 | $ 7,407 |
Fair Value Quantitative Informa
Fair Value Quantitative Information about Level 3 Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - Significant unobservable inputs (Level 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 100,414 | $ 189,312 |
Future policy benefits - indexed product embedded derivatives | 27,774 | |
Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 19,178 | $ 27,682 |
Input range and weighted average | 1.23% - 7.00% (4.01%) | 0.91% - 6.20% (4.17%) |
Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 55,866 | $ 72,224 |
Input range and weighted average | 1.45% - 3.55% (2.58%) | 1.40% - 4.10% (2.50%) |
Non-redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 6,862 | $ 7,407 |
Input range and weighted average | 4.36% (4.36%) | 2.94% (2.94%) |
Asset fair value by technique [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 81,906 | $ 107,313 |
Index Product Embedded Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Future policy benefits - indexed product embedded derivatives | $ 40,028 | $ 27,774 |
Input range and weighted average | 0.55% - 1.80% (1.25%) 0.15% - 0.40% (0.25%) | 0.40% - 1.60% (0.90%) 0.15% - 0.40% (0.25%) |
Valuation Technique, Discounted Cash Flow [Member] | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
FairValueMeasurementsValuationTechnique | Discounted cash flow | Discounted cash flow |
Valuation Technique, Discounted Cash Flow [Member] | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
FairValueMeasurementsValuationTechnique | Discounted cash flow | Discounted cash flow |
Valuation Technique, Discounted Cash Flow [Member] | Non-redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
FairValueMeasurementsValuationTechnique | Discounted cash flow | Discounted cash flow |
Valuation Technique, Discounted Cash Flow [Member] | Index Product Embedded Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
FairValueMeasurementsValuationTechnique | Discounted cash flow | Discounted cash flow |
Measurement Input, Credit Spread [Member] | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
FairValueMeasurementSignificantAssumption | Credit spread | Credit spread |
Measurement Input, Credit Spread [Member] | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
FairValueMeasurementSignificantAssumption | Credit spread | Credit spread |
Measurement Input, Credit Spread [Member] | Non-redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
FairValueMeasurementSignificantAssumption | Credit spread | Credit spread |
Measurement Input, Entity Credit Risk [Member] | Index Product Embedded Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
FairValueMeasurementSignificantAssumption | Credit risk Risk margin | Credit risk Risk margin |
Fair Value Level 3 Financial In
Fair Value Level 3 Financial Instruments changes in Fair Value recurring basis (Details) - Fair Value, Measurements, Recurring [Member] - Significant unobservable inputs (Level 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Asset Balance at beginning of period | $ 189,312 | $ 202,332 | |
Asset Purchases | 92,681 | 189,913 | |
Asset Sales | (13,568) | (21,918) | |
Asset, Gain (Loss) Included in Earnings | (545) | 84 | |
Gain/Loss in Other Comprehensive Income (Loss) | (4,585) | 5,347 | |
Asset Transfers Into Level 3 | [1] | 7,082 | 26,793 |
Asset, Transfers out of Level 3 | [1] | (170,182) | (213,098) |
Asset, Amortization | 219 | (141) | |
Asset Balance at end of period | 100,414 | 189,312 | |
Corporate | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Asset Balance at beginning of period | 33,600 | 59,119 | |
Asset Purchases | 0 | 5,000 | |
Asset Sales | (9,432) | (12,230) | |
Asset, Gain (Loss) Included in Earnings | 0 | (84) | |
Gain/Loss in Other Comprehensive Income (Loss) | (974) | 1,365 | |
Asset Transfers Into Level 3 | [1] | 7,082 | 13,440 |
Asset, Transfers out of Level 3 | [1] | (8,530) | (30,409) |
Asset, Amortization | 265 | (39) | |
Asset Balance at end of period | 22,011 | 33,600 | |
Residential mortgage-backed | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Asset Balance at beginning of period | 9,124 | 0 | |
Asset Purchases | 27,818 | 32,455 | |
Asset Sales | 0 | 0 | |
Asset, Gain (Loss) Included in Earnings | 0 | 0 | |
Gain/Loss in Other Comprehensive Income (Loss) | 0 | (1) | |
Asset Transfers Into Level 3 | [1] | 0 | 0 |
Asset, Transfers out of Level 3 | [1] | (36,942) | (23,331) |
Asset, Amortization | 0 | 1 | |
Asset Balance at end of period | 0 | 9,124 | |
Commercial mortgage-backed | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Asset Balance at beginning of period | 85,701 | 81,434 | |
Asset Purchases | 36,008 | 25,591 | |
Asset Sales | (1,337) | (802) | |
Asset, Gain (Loss) Included in Earnings | 0 | 0 | |
Gain/Loss in Other Comprehensive Income (Loss) | (3,599) | (6,218) | |
Asset Transfers Into Level 3 | [1] | 0 | 0 |
Asset, Transfers out of Level 3 | [1] | (48,787) | (26,658) |
Asset, Amortization | (46) | (82) | |
Asset Balance at end of period | 67,940 | 85,701 | |
Other asset-backed | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Asset Balance at beginning of period | 53,480 | 54,368 | |
Asset Purchases | 28,855 | 126,867 | |
Asset Sales | (2,799) | (8,886) | |
Asset, Gain (Loss) Included in Earnings | 0 | 0 | |
Gain/Loss in Other Comprehensive Income (Loss) | (12) | (499) | |
Asset Transfers Into Level 3 | [1] | 0 | 13,353 |
Asset, Transfers out of Level 3 | [1] | (75,923) | (132,700) |
Asset, Amortization | 0 | (21) | |
Asset Balance at end of period | 3,601 | 53,480 | |
Non-redeemable preferred stocks | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Asset Balance at beginning of period | 7,407 | 7,411 | |
Asset Purchases | 0 | 0 | |
Asset Sales | 0 | 0 | |
Asset, Gain (Loss) Included in Earnings | (545) | 0 | |
Gain/Loss in Other Comprehensive Income (Loss) | 0 | (4) | |
Asset Transfers Into Level 3 | [1] | 0 | 0 |
Asset, Transfers out of Level 3 | [1] | 0 | 0 |
Asset, Amortization | 0 | 0 | |
Asset Balance at end of period | 6,862 | 7,407 | |
Index Product Embedded Derivatives [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Liability Value beginning of period | 27,774 | 15,778 | |
Liability, Purchases | 11,514 | 6,594 | |
Liability, Settlements | (4,447) | (2,128) | |
Liability, Gain (Loss) Included in Earnings | 5,187 | (7,530) | |
Liability, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | |
Liability, Transfers Into Level 3 | [1] | 0 | 0 |
Liability, Transfers out of Level 3 | [1] | 0 | 0 |
Liability Value end of period | $ 40,028 | $ 27,774 | |
[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 Value Valuation of Financi
Fair Value Valuation of Financial Instruments Not Reported at Fair Value by Hierarchy Level (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans | $ 1,039,829 | $ 971,812 |
Policy loans | 197,366 | 191,398 |
Other investments | 5,757 | 19,045 |
Supplementary contracts without life contingencies | 303,627 | 322,630 |
Liabilities related to separate accounts | 561,281 | 651,963 |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Assets, Fair Value Disclosure | 609,207 | 735,057 |
Future policy benefits | 0 | 0 |
Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 4,745 | 14,824 |
Assets, Fair Value Disclosure | 7,013,911 | 7,210,358 |
Future policy benefits | 0 | 0 |
Liabilities, Fair Value Disclosure | 780 | 268 |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Assets, Fair Value Disclosure | 100,414 | 189,312 |
Future policy benefits | 27,774 | |
Liabilities, Fair Value Disclosure | 40,028 | 27,774 |
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 | 1,045,497 | 989,503 |
Policy loans | 237,496 | 236,223 |
Other investments | 30,087 | 28,619 |
Assets, Fair Value Disclosure | 1,313,080 | 1,254,345 |
Future policy benefits | 3,981,947 | 4,119,880 |
Supplementary contracts without life contingencies | 298,869 | 327,151 |
Advance premiums and other deposits | 252,318 | 259,099 |
Long-term debt | 65,999 | 78,628 |
Liabilities related to separate accounts | 559,799 | 649,610 |
Liabilities, Fair Value Disclosure | 5,158,932 | 5,434,368 |
Portion at Other than Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Future policy benefits | 0 | 0 |
Supplementary contracts without life contingencies | 0 | 0 |
Advance premiums and other deposits | 0 | 0 |
Long-term debt | 0 | 0 |
Liabilities related to separate accounts | 0 | 0 |
Liabilities, Fair Value Disclosure | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Future policy benefits | 0 | 0 |
Supplementary contracts without life contingencies | 0 | 0 |
Advance premiums and other deposits | 0 | 0 |
Long-term debt | 0 | 0 |
Liabilities related to separate accounts | 0 | 0 |
Liabilities, Fair Value Disclosure | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans | 1,045,497 | 989,503 |
Policy loans | 237,496 | 236,223 |
Other investments | 30,087 | 28,619 |
Assets, Fair Value Disclosure | 1,313,080 | 1,254,345 |
Future policy benefits | 3,981,947 | 4,119,880 |
Supplementary contracts without life contingencies | 298,869 | 327,151 |
Advance premiums and other deposits | 252,318 | 259,099 |
Long-term debt | 65,999 | 78,628 |
Liabilities related to separate accounts | 559,799 | 649,610 |
Liabilities, Fair Value Disclosure | 5,158,932 | 5,434,368 |
Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans | 1,039,829 | 971,812 |
Policy loans | 197,366 | 191,398 |
Other investments | 29,020 | 27,547 |
Assets not measured at fair value | 1,266,215 | 1,190,757 |
Future policy benefits | 4,217,904 | 4,164,593 |
Supplementary contracts without life contingencies | 303,627 | 322,630 |
Advance premiums and other deposits | 252,318 | 259,099 |
Long-term debt | 97,000 | 97,000 |
Liabilities related to separate accounts | 651,963 | |
Liabilities not measured at fair value | $ 5,432,130 | $ 5,495,285 |
Fair Value Level 3 Financial _2
Fair Value Level 3 Financial Instruments Measured at Fair Value on a Non-recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Provision for Loan, Lease, and Other Losses | $ 2,778 | $ 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Portion at Other than Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Adjustment | 11,100 | |
Provision for Loan, Lease, and Other Losses | $ 2,800 |
Reinsurance and Policy Provis_3
Reinsurance and Policy Provisions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Reinsurance retention limit | $ 1,000 | ||
Ceded Premiums Earned | 32,450 | $ 32,922 | $ 33,058 |
Reinsurance Effect on Claims and Benefits Incurred, Amount Ceded | 21,358 | 24,159 | 22,515 |
Ceded reinsurance allowances for expenses and commissions | 4,231 | 4,548 | 4,709 |
Assumed Premiums Earned | 2,508 | 2,637 | 2,670 |
Policyholder Benefits and Claims Incurred, Assumed | 2,752 | 6,356 | 2,302 |
Assumed reinsurance allowances for expenses and commissions | 1,410 | 1,543 | 1,427 |
Ceded Premiums, Life Insurance in Force | 14,030,000 | 14,087,000 | 14,258,457 |
Assumed Premiums, Life Insurance in Force | $ 455,000 | $ 487,000 | $ 523,538 |
Reinsurance effect on in force ceded, percentage | 21.80% | 22.50% | |
Contracts in Force Subject to Participation Through Reinsurance, Percentage | 0.70% | 0.80% | |
100% Quota Share Accidental Death [Member] | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Reinsurance retention limit | $ 17,000 | ||
Maximum [Member] | Company sponsored agent trip [Member] | 100% Quota Share Accidental Death [Member] | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | 50,000 | ||
Maximum [Member] | Home office [Member] | 100% Quota Share Accidental Death [Member] | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | $ 200,000 |
Reinsurance and Policy Provis_4
Reinsurance and Policy Provisions Value of insurance in force acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Movement in in Present Value of Future Insurance Profits [Roll Forward] | |||
Present Value of Future Insurance Profits, Pre FAS 115 | $ 19,430 | $ 21,608 | $ 24,000 |
Amortization per fixed schedule | (2,167) | (2,178) | (2,198) |
Present Value of Future Insurance Profits, Amortization Expense | 0 | 0 | 194 |
Present Value of Future Insurance Profits, Pre FAS 115 | 17,263 | 19,430 | 21,608 |
Impact of net unrealized investment gains and losses | (6,878) | (14,870) | (12,382) |
Value of insurance in force acquired | 10,385 | $ 4,560 | $ 9,226 |
Present Value of Future Insurance Profits, Amortization Expense, Year One | 2,100 | ||
Present Value of Future Insurance Profits, Amortization Expense, Year Two | 2,200 | ||
Present Value of Future Insurance Profits, Amortization Expense, Year Three | 2,000 | ||
Present Value of Future Insurance Profits, Amortization Expense, Year Four | 2,000 | ||
Present Value of Future Insurance Profits, Amortization Expense, Year Five | $ 2,000 |
Reinsurance and Policy Provis_5
Reinsurance and Policy Provisions GMDB, IDB, GMIB (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | $ 83,340 | $ 68,860 | |
Net Amount at Risk by Product and Guarantee, General Account Value | 7,700 | 6,900 | |
Net amount at risk by product and guarantee, benefits paid | $ 200 | $ 800 | $ 500 |
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age | 58 years | 66 years | |
GMDB return of net deposits [Member] | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Net Amount at Risk by Product and Guarantee, Separate Account Value | $ 147,567 | $ 173,761 | |
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | 430 | 442 | |
Guaranteed Minimum Death Benefit [Member] | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Net Amount at Risk by Product and Guarantee, Separate Account Value | 252,361 | 292,112 | |
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | 29,146 | 1,068 | |
Incremental Death Benefit [Member] | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Net Amount at Risk by Product and Guarantee, Separate Account Value | 228,863 | 265,456 | |
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | 53,727 | 67,350 | |
Guaranteed Minimum Income Benefit [Member] | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Net Amount at Risk by Product and Guarantee, Separate Account Value | 24,357 | 29,987 | |
Net Amount at Risk by Product and Guarantee, Net Amount at Risk | $ 37 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Current Federal Tax Expense (Benefit) | $ 20,429 | $ 34,301 | $ 36,461 | |
Deferred Federal Income Tax Expense (Benefit) | (4,953) | (73,094) | 9,409 | |
Affordable Housing Tax Credits and Other Tax Benefits, Amount | (3,826) | (1,190) | (4,650) | |
Income Tax Expense (Benefit) | 11,650 | (39,983) | 41,220 | |
Tax impact of Income from Equity Method Investments | 1,179 | 1,394 | 1,221 | |
Income Tax Effects Allocated Directly to Equity [Abstract] | ||||
Change in net unrealized investment gains/losses - deferred, Tax | (50,025) | 43,448 | 18,882 | |
Issuance of shares under stock option plan, current | [1] | 0 | 0 | (846) |
Income Tax Effects Allocated Directly to Equity | (50,025) | 43,448 | 18,036 | |
Total tax from all sources provided in our financial statements | $ (37,196) | $ 4,859 | $ 60,477 | |
[1] | Beginning in 2017, accounting guidance requires tax benefits of equity-based compensation to be recorded through net income rather than directly to stockholders’ equity. Accordingly, we do not expect to have a provision for taxes on Class A and B common stock for years after 2016. See Note 1 to our consolidated financial statements for further discussion of this accounting change. |
Income Taxes Effective tax rate
Income Taxes Effective tax rate reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Tax Contingency [Line Items] | ||||
Reclassification related to the Tax Act | $ 0 | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | $ 101,033 | 144,760 | $ 141,789 | |
Income Tax Reconciliation, Income Tax Expense (Benefit), at Federal Statutory Income Tax Rate | 21,217 | 50,666 | 49,626 | |
Effective Income Tax Rate Reconciliation, Tax Exempt Income | (3,762) | (3,384) | (2,950) | |
Affordable Housing Tax Credits and Other Tax Benefits, Amount | (3,826) | (1,190) | (4,650) | |
Initial impact on deferred tax liabilities from the Tax Act | 0 | (84,806) | 0 | |
Effective Income Tax Rate Reconciliation, Other Adjustments | (1,979) | (1,269) | (806) | |
Income Tax Expense (Benefit) | $ 11,650 | (39,983) | $ 41,220 | |
AOCI Attributable to Parent [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Reclassification related to the Tax Act | [1] | $ 48,226 | ||
[1] | Reclassification of the initial impact of the remeasurement of deferred tax assets and liabilities upon enactment of the Tax Act. See discussion of this accounting change as discussed in Note 1. |
Income Taxes Components of defe
Income Taxes Components of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets, Gross [Abstract] | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Policyholder Liabilities | $ 25,137 | $ 21,926 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits | 3,854 | 3,435 |
Deferred Tax Assets, Operating Loss Carryforwards | 2,870 | 3,452 |
Deferred Tax Assets, Other | 2,555 | 2,669 |
Deferred Tax Assets, Gross | 34,416 | 31,482 |
Deferred Tax Liabilities, Gross [Abstract] | ||
Deferred Tax Liabilities, Other Comprehensive Income | 42,961 | 118,716 |
Deferred Tax Liabilities, Deferred Expense, Deferred Policy Acquisition Cost | 55,810 | 33,177 |
Deferred Tax Liabilities, Value of Insurance in Force Acquired | 2,181 | 958 |
Deferred Tax Liabilities, Property, Plant and Equipment | 7,021 | 5,883 |
Deferred Tax Liabilities, Other | 1,892 | 3,173 |
Deferred Tax Liabilities, Gross | 109,865 | 161,907 |
Deferred income taxes | 75,449 | $ 130,425 |
Operating Loss Carryforwards | $ 12,700 |
Credit Arrangements (Details)
Credit Arrangements (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt payable to non-affiliates | $ 97,000 | $ 97,000 |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | ||
Debt Instrument [Line Items] | ||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | |
Preferred stock, shares outstanding | 97,000 | |
Senior Notes, unaffiliated [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt payable to non-affiliates | $ 97,000 | |
5% Subordinated Deferrable Interest Notes, due June 30, 2047 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt payable to non-affiliates | 100,000 | |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt payable to non-affiliates | 97,000 | |
Capital trust equity [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt payable to non-affiliates | $ 3,000 |
Stockholders' Equity Dividends
Stockholders' Equity Dividends table (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 3.34 | $ 3.26 | $ 3.68 |
Preferred Stock, Dividends, Per Share, Cash Paid | $ 0.03 | $ 0.03 | $ 0.03 |
Payment Of Special Cash Dividend | $ 37.3 | $ 37.4 | $ 49.7 |
Regular quarterly cash dividend [Member] | |||
Class of Stock [Line Items] | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.84 | $ 1.76 | $ 1.68 |
Special cash dividend [Member] | |||
Class of Stock [Line Items] | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.50 | $ 1.50 | $ 2 |
Stockholders' Equity Recon of O
Stockholders' Equity Recon of Outstanding Common Stock table & Text (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Class of Stock [Line Items] | |||||
Common stock, shares outstanding | 24,718,815 | 24,930,526 | 24,893,955 | 24,808,176 | |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 21,126 | 40,082 | 96,101 | ||
Issuance of common stock under compensation plans | $ 499 | $ 708 | $ 3,718 | ||
Shares of common stock repurchased | (232,837) | (3,511) | (10,322) | ||
Purchase of common stock | $ (15,907) | $ (246) | $ (586) | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 40,900 | ||||
Preferred Stock, Liquidation Preference Per Share | $ 0.60 | ||||
Preferred Stock, Redemption Price Per Share | $ 0.60 | ||||
Parent Company [Member] | |||||
Class of Stock [Line Items] | |||||
Sale of Stock, Percentage of Ownership after Transaction | 71.00% | ||||
Common Class A | |||||
Class of Stock [Line Items] | |||||
Common stock, shares outstanding | 24,707,402 | 24,919,113 | 24,882,542 | 24,796,763 | |
Common stock, without par value | $ 152,652 | $ 153,589 | |||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 21,126 | 40,082 | 96,101 | ||
Shares of common stock repurchased | (232,837) | (3,511) | (10,322) | ||
Board of directors members | four to ten | ||||
Common Class B | |||||
Class of Stock [Line Items] | |||||
Common stock, shares outstanding | [1] | 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 | 0 | ||
Shares of common stock repurchased | 0 | 0 | 0 | ||
Board of directors members | five to seven | ||||
Common stocks | |||||
Class of Stock [Line Items] | |||||
Common stock, without par value | $ 152,724 | $ 153,661 | $ 152,975 | $ 149,320 | |
Issuance of common stock under compensation plans | 499 | 708 | 3,718 | ||
Purchase of common stock | (1,436) | (22) | (63) | ||
Common stocks | Common Class A | |||||
Class of Stock [Line Items] | |||||
Common stock, without par value | 152,652 | 153,589 | 152,903 | 149,248 | |
Issuance of common stock under compensation plans | 499 | 708 | 3,718 | ||
Purchase of common stock | (1,436) | (22) | (63) | ||
Common stocks | Common Class B | |||||
Class of Stock [Line Items] | |||||
Common stock, without par value | [1] | 72 | 72 | 72 | $ 72 |
Issuance of common stock under compensation plans | 0 | 0 | 0 | ||
Purchase of common stock | $ 0 | $ 0 | $ 0 | ||
[1] | There is no established market for our Class B common stock, although it is convertible upon demand of the holder into Class A common stock on a share-for-share basis. |
Stockholders' Equity AOCI table
Stockholders' Equity AOCI table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive income | $ 91,318 | $ 284,983 | |||
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Reclassification Adjustments, after Tax | (188,504) | 88,670 | $ 39,796 | ||
Reclassification related to the Tax Act | 0 | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 319 | (1,468) | (4,773) | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | [1] | (1,987) | 1,483 | 1,578 | |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive income | [2] | 96,921 | 295,169 | 156,963 | $ 120,787 |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Reclassification Adjustments, after Tax | [2] | (191,158) | 88,534 | 37,895 | |
Reclassification related to the Tax Act | [2],[3] | 49,657 | |||
Accumulated Other-than-Temporary Impairment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive income | 3,133 | 537 | 311 | (114) | |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Reclassification Adjustments, after Tax | 2,654 | 136 | 1,901 | ||
Reclassification related to the Tax Act | [3] | 90 | |||
Accumulated Defined Benefit Plans Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive income | [4] | (8,736) | (10,723) | (7,719) | (6,141) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | [4] | 0 | 0 | 0 | |
Reclassification related to the Tax Act | [3],[4] | (1,521) | |||
AOCI Attributable to Parent [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive income | 91,318 | 284,983 | 149,555 | $ 114,532 | |
Reclassification related to the Tax Act | [3] | 48,226 | |||
reclassifications out of accumulated other comprehensive income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | [2] | (1,610) | 15 | (1,719) | |
reclassifications out of accumulated other comprehensive income [Member] | Accumulated Other-than-Temporary Impairment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Write-down of Securities, Net of Tax | [5] | (58) | 0 | 1,476 | |
reclassifications out of accumulated other comprehensive income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | [4] | 1,987 | $ (1,483) | $ (1,578) | |
Accounting Standards Update 2016-01 [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | [2],[6] | (5,480) | |||
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | [6] | $ (5,480) | |||
[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. | ||||
[2] | See Note 2 for further information. | ||||
[3] | Reclassification of the initial impact of the remeasurement of deferred tax assets and liabilities upon enactment of the Tax Act. See discussion of this accounting change as discussed in Note 1. | ||||
[4] | For descriptions of the underfunded portion of our postretirement benefit plans, see Note 8 - Other Retirement Plans, and for certain other defined benefit plans, see Note 8 - Defined Benefit Pension Plans. | ||||
[5] | Unrealized net investment gains (losses) relate to available-for-sale securities and include 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. | ||||
[6] | See Note 1 to our consolidated financial statements for further discussion on this one-time adjustment related to an accounting change. |
Stockholders' Equity AOCI Recla
Stockholders' Equity AOCI Reclassifications (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Net realized capital gains on sales of investments | $ (7,276) | $ 599 | $ 3,106 | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | (4,998) | (1,553) | (4,869) | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 319 | (1,468) | (4,773) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | [1] | (1,987) | 1,483 | 1,578 |
reclassifications out of accumulated other comprehensive income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Net realized capital gains on sales of investments | (1,832) | (255) | (1,799) | |
Change in offsets to unrealized on investments | 205 | (274) | (665) | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | (74) | (2,451) | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), before Tax | (1) | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | (2,515) | 1,702 | (2,425) | |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Tax | 404 | (1,683) | (7,341) | |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Tax | (85) | 215 | 2,568 | |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | (319) | 1,468 | (4,773) | |
reclassifications out of accumulated other comprehensive income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Net realized capital gains on sales of investments | (1,832) | (255) | (1,799) | |
Change in offsets to unrealized on investments | 206 | (274) | (845) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), before Tax | 0 | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 2,038 | (19) | (2,644) | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | 428 | (4) | 925 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | [2] | (1,610) | 15 | (1,719) |
reclassifications out of accumulated other comprehensive income [Member] | Accumulated Other-than-Temporary Impairment [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Net realized capital gains on sales of investments | 0 | 0 | 0 | |
Change in offsets to unrealized on investments | (1) | 0 | 180 | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | (74) | (2,451) | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), before Tax | 0 | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 0 | 0 | 0 | |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Write-down of Securities, before Tax | (73) | 0 | (2,271) | |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Write-down of Securities, Tax | 15 | 0 | 795 | |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Write-down of Securities, Net of Tax | [3] | 58 | 0 | (1,476) |
reclassifications out of accumulated other comprehensive income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Net realized capital gains on sales of investments | 0 | 0 | 0 | |
Change in offsets to unrealized on investments | 0 | 0 | 0 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), before Tax | (1) | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | (2,515) | 1,702 | (2,425) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | (2,515) | 1,702 | (2,426) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, Tax | (528) | 219 | 848 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | [4] | $ 1,987 | $ (1,483) | $ (1,578) |
[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. | |||
[2] | See Note 2 for further information. | |||
[3] | Unrealized net investment gains (losses) relate to available-for-sale securities and include 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. | |||
[4] | For descriptions of the underfunded portion of our postretirement benefit plans, see Note 8 - Other Retirement Plans, and for certain other defined benefit plans, see Note 8 - Defined Benefit Pension Plans. |
Retirement and Compensation P_4
Retirement and Compensation Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Multiemployer Plans [Line Items] | |||
Entity Tax Identification Number | 421,411,715 | ||
Multiemployer Plan Number | 1 | ||
Multiemployer Plan, Contributions by Employer | $ 30,000 | $ 45,000 | $ 30,000 |
Cash-based restricted stock unit plan [Member] | |||
Multiemployer Plans [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 10 months 20 days | ||
Tax Benefit from Compensation Expense | $ 600 | 1,000 | 1,200 |
share based compensation restricted stock units cash paid expense | $ 3,300 | $ 3,300 | $ 2,700 |
Maximum [Member] | |||
Multiemployer Plans [Line Items] | |||
Defined contribution plan, employer discretionary percentage | 5.75% | ||
Minimum [Member] | |||
Multiemployer Plans [Line Items] | |||
Defined contribution plan, employer discretionary percentage | 2.75% | ||
Defined Contribution Plan Grandfathered Choice Participant [Member] | Maximum [Member] | |||
Multiemployer Plans [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4.00% | ||
Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 2.00% | ||
Pension Plan [Member] | Maximum [Member] | |||
Multiemployer Plans [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 2.00% |
Retirement and Compensation P_5
Retirement and Compensation Plans Funding Status and Net Periodic Pension Costs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair Value of Plan Assets beginning of period | $ 345,396,000 | ||
Fair Value of Plan Assets, End of period | 315,457,000 | $ 345,396,000 | |
Pension Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 375,999,000 | 336,454,000 | |
Defined Benefit Plan, Service Cost | 5,973,000 | 5,552,000 | $ 5,795,000 |
Defined Benefit Plan, Interest Cost | 13,642,000 | 14,124,000 | 14,447,000 |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 20,594,000 | (41,855,000) | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 4,001,000 | 21,986,000 | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 56,256,000 | 0 | |
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | 5,168,000 | ||
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 319,931,000 | 375,999,000 | 336,454,000 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair Value of Plan Assets beginning of period | 345,396,000 | 291,071,000 | |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 869,000 | 31,311,000 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 30,000,000 | 45,000,000 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 4,001,000 | 21,986,000 | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | 56,256,000 | 0 | |
Fair Value of Plan Assets, End of period | 316,008,000 | 345,396,000 | 291,071,000 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (3,923,000) | (30,603,000) | |
Defined Benefit Plan, Accumulated Benefit Obligation | 287,052,000 | 334,462,000 | |
Other Pension Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 26,914,000 | 24,585,000 | |
Defined Benefit Plan, Service Cost | 539,000 | 436,000 | 335,000 |
Defined Benefit Plan, Interest Cost | 958,000 | 1,003,000 | 966,000 |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 1,170,000 | (2,728,000) | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 1,878,000 | 1,838,000 | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 0 | 0 | |
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 25,363,000 | 26,914,000 | 24,585,000 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair Value of Plan Assets beginning of period | 0 | 0 | |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 0 | 0 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 1,878,000 | 1,838,000 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 1,878,000 | 1,838,000 | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | 0 | 0 | |
Fair Value of Plan Assets, End of period | 0 | 0 | $ 0 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (25,363,000) | (26,914,000) | |
Defined Benefit Plan, Accumulated Benefit Obligation | $ 22,753,000 | $ 23,504,000 |
Retirement and Compensation P_6
Retirement and Compensation Plans Net periodic pension costs incurred by the plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Service Cost | $ 5,973 | $ 5,552 | $ 5,795 |
Defined Benefit Plan, Interest Cost | 13,642 | 14,124 | 14,447 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (22,247) | (19,184) | (17,865) |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 46 | 131 | 144 |
Defined Benefit Plan, Amortization of Gain (Loss) | 12,507 | 10,121 | 9,432 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | (17,406) | 0 | 0 |
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | 5,168 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 32,495 | 10,744 | 11,953 |
Net periodic pension cost individual entity share | 9,956 | 3,404 | 3,807 |
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | 9,400 | ||
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | 15,000 | ||
Multiemployer Plans, Minimum Contribution | 4,700 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 13,800 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 15,200 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 18,100 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 18,800 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 19,900 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 111,800 | ||
Other Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Service Cost | 539 | 436 | 335 |
Defined Benefit Plan, Interest Cost | 958 | 1,003 | 966 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 0 | 0 | 0 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 | (1) |
Defined Benefit Plan, Amortization of Gain (Loss) | 1,353 | 1,172 | 918 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 2,850 | 2,611 | 2,218 |
Net periodic pension cost individual entity share | 1,671 | $ 1,551 | $ 1,260 |
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | 1,100 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 3,900 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 2,200 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 3,200 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 2,500 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 2,200 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 15,500 |
Retirement and Compensation P_7
Retirement and Compensation Plans FBL's share of prepaid or accrued pension costs (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer unrecognized liability for underfunded status | $ 3,900 | $ 30,600 | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets for Plan Benefits, Defined Benefit Plan | 36,105 | 36,858 | |
Liability, Defined Benefit Plan | (12) | 0 | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | 36,093 | 36,858 | |
Other Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets for Plan Benefits, Defined Benefit Plan | 726 | 740 | |
Liability, Defined Benefit Plan | (19,480) | (21,245) | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | (18,754) | (20,505) | |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | [1] | 11,126 | 13,649 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | [1] | $ 11,126 | $ 13,649 |
[1] | For our Multiemployer Plan, the underfunded portion of the pension benefit obligation is not required to be recognized as a liability in our consolidated balance sheets. The unrecognized liability for the underfunded status of our Multiemployer Plan totaled $3.9 million at December 31, 2018 and $30.6 million at December 31, 2017. |
Retirement and Compensation P_8
Retirement and Compensation Plans Weighted average assumptions (Details) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.24% | 3.72% | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 3.21% | 3.27% | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.72% | 4.29% | 4.65% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 6.50% | 6.60% | 6.75% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 3.27% | 3.31% | 3.31% | |
Fixed income funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 46.75% | 55.00% | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 53.00% | |||
U.S. equity funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 29.75% | 35.00% | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 27.00% | |||
Alternative investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 8.50% | 10.00% | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 4.00% | |||
Liability Driven Investing Strategy [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 15.00% | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 16.00% |
Retirement and Compensation P_9
Retirement and Compensation Plans Fair Values of plan assets by category and hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | $ 315,457 | $ 345,396 | ||||
Quoted prices in active markets for identical assets (Level 1) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | 81,569 | 79,912 | ||||
Significant other observable inputs (Level 2) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | 62,872 | 63,734 | ||||
Fair Value, Inputs, Level 3 [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | 171,016 | 201,750 | $ 161,611 | |||
U.S. equity funds | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 20,138 | 39,563 | |||
U.S. equity funds | Quoted prices in active markets for identical assets (Level 1) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 20,138 | 39,563 | |||
U.S. equity funds | Significant other observable inputs (Level 2) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 0 | 0 | |||
U.S. equity funds | Fair Value, Inputs, Level 3 [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 0 | 0 | |||
International funds | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 35,854 | 40,349 | |||
International funds | Quoted prices in active markets for identical assets (Level 1) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 35,854 | 40,349 | |||
International funds | Significant other observable inputs (Level 2) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 0 | 0 | |||
International funds | Fair Value, Inputs, Level 3 [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 0 | 0 | |||
Short-term fixed income funds | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 510 | 793 | |||
Short-term fixed income funds | Quoted prices in active markets for identical assets (Level 1) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 0 | 0 | |||
Short-term fixed income funds | Significant other observable inputs (Level 2) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 510 | 793 | |||
Short-term fixed income funds | Fair Value, Inputs, Level 3 [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 0 | 0 | |||
Fixed income funds | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 12,117 | 14,689 | |||
Fixed income funds | Quoted prices in active markets for identical assets (Level 1) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 0 | 0 | |||
Fixed income funds | Significant other observable inputs (Level 2) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 12,117 | 14,689 | |||
Fixed income funds | Fair Value, Inputs, Level 3 [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 0 | 0 | |||
U.S. equity funds | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 13,788 | 32,726 | |||
U.S. equity funds | Quoted prices in active markets for identical assets (Level 1) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 0 | 0 | |||
U.S. equity funds | Significant other observable inputs (Level 2) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 13,788 | 32,726 | |||
U.S. equity funds | Fair Value, Inputs, Level 3 [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 0 | 0 | |||
Real estate fund | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 12,455 | 15,526 | |||
Real estate fund | Quoted prices in active markets for identical assets (Level 1) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 0 | 0 | |||
Real estate fund | Significant other observable inputs (Level 2) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 12,455 | 15,526 | |||
Real estate fund | Fair Value, Inputs, Level 3 [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 0 | 0 | |||
Group annuity contract | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [2] | 148,106 | 181,403 | |||
Group annuity contract | Quoted prices in active markets for identical assets (Level 1) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [2] | 0 | 0 | |||
Group annuity contract | Significant other observable inputs (Level 2) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [2] | 0 | 0 | |||
Group annuity contract | Fair Value, Inputs, Level 3 [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | 148,106 | [2] | 181,403 | [2] | 141,782 | |
Funded annuity contracts | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [2] | 10,500 | 10,776 | |||
Funded annuity contracts | Quoted prices in active markets for identical assets (Level 1) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [2] | 0 | 0 | |||
Funded annuity contracts | Significant other observable inputs (Level 2) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [2] | 0 | 0 | |||
Funded annuity contracts | Fair Value, Inputs, Level 3 [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | 10,500 | [2] | 10,776 | [2] | 11,382 | |
Corporate | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [3] | 24,002 | ||||
Corporate | Quoted prices in active markets for identical assets (Level 1) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [3] | 0 | ||||
Corporate | Significant other observable inputs (Level 2) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [3] | 24,002 | ||||
Corporate | Fair Value, Inputs, Level 3 [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [3] | 0 | ||||
US Government Agencies Debt Securities [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [3] | 25,039 | ||||
US Government Agencies Debt Securities [Member] | Quoted prices in active markets for identical assets (Level 1) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [3] | 25,039 | ||||
US Government Agencies Debt Securities [Member] | Significant other observable inputs (Level 2) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [3] | 0 | ||||
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [3] | 0 | ||||
Limited partnerships | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 12,410 | 9,571 | |||
Limited partnerships | Quoted prices in active markets for identical assets (Level 1) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 0 | 0 | |||
Limited partnerships | Significant other observable inputs (Level 2) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 0 | 0 | |||
Limited partnerships | Fair Value, Inputs, Level 3 [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | 12,410 | [4] | $ 9,571 | [4] | $ 8,447 | |
Limited partnerships | Significant unobservable inputs (Level 3) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 600 | ||||
Defined Benefit Plan, Cash and Cash Equivalents [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [5] | 538 | ||||
Defined Benefit Plan, Cash and Cash Equivalents [Member] | Quoted prices in active markets for identical assets (Level 1) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [5] | 538 | ||||
Defined Benefit Plan, Cash and Cash Equivalents [Member] | Significant other observable inputs (Level 2) | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [5] | 0 | ||||
Defined Benefit Plan, Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Amount | [5] | $ 0 | ||||
[1] | Represents mutual funds and pooled separate account investments with Principal Life Insurance Company. | |||||
[2] | Represents group annuity contracts with Farm Bureau Life | |||||
[3] | Represents bonds to support liability driven investing strategy. | |||||
[4] | Represents interests in several limited partnerships. As of December 31, 2018, a limited partnership with a fair value estimate of $0.6 million using net asset value per share as a practical expedient has not been classified in the fair value hierarchy above in accordance with fair value reporting guidance. | |||||
[5] | Represents approximate fair value of cash held. |
Retirement and Compensation _10
Retirement and Compensation Plans Level 3 plan assets changes in fair value (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair Value of Plan Assets beginning of period | $ 345,396 | |||
Fair Value of Plan Assets, End of period | 315,457 | $ 345,396 | ||
Significant unobservable inputs (Level 3) | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair Value of Plan Assets beginning of period | 201,750 | 161,611 | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement | (20,460) | 32,277 | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Actual Return (Loss) on Plan Assets Still Held | 8,726 | 7,862 | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Actual Return (Loss) on Plan Assets Sold | 0 | 0 | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Assets Transferred into (out of) Level 3 | (19,000) | 0 | ||
Fair Value of Plan Assets, End of period | 171,016 | 201,750 | ||
Group annuity contract | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair Value of Plan Assets beginning of period | [1] | 181,403 | ||
Fair Value of Plan Assets, End of period | [1] | 148,106 | 181,403 | |
Group annuity contract | Significant unobservable inputs (Level 3) | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair Value of Plan Assets beginning of period | 181,403 | [1] | 141,782 | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement | (21,353) | 33,221 | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Actual Return (Loss) on Plan Assets Still Held | 7,056 | 6,400 | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Actual Return (Loss) on Plan Assets Sold | 0 | 0 | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Assets Transferred into (out of) Level 3 | (19,000) | 0 | ||
Fair Value of Plan Assets, End of period | [1] | 148,106 | 181,403 | |
Funded annuity contracts | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair Value of Plan Assets beginning of period | [1] | 10,776 | ||
Fair Value of Plan Assets, End of period | [1] | 10,500 | 10,776 | |
Funded annuity contracts | Significant unobservable inputs (Level 3) | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair Value of Plan Assets beginning of period | 10,776 | [1] | 11,382 | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement | (896) | (1,258) | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Actual Return (Loss) on Plan Assets Still Held | 620 | 652 | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Actual Return (Loss) on Plan Assets Sold | 0 | 0 | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Assets Transferred into (out of) Level 3 | 0 | 0 | ||
Fair Value of Plan Assets, End of period | [1] | 10,500 | 10,776 | |
Limited partnerships | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair Value of Plan Assets beginning of period | [2] | 9,571 | ||
Fair Value of Plan Assets, End of period | [2] | 12,410 | 9,571 | |
Limited partnerships | Significant unobservable inputs (Level 3) | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair Value of Plan Assets beginning of period | 9,571 | [2] | 8,447 | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement | 1,789 | 314 | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Actual Return (Loss) on Plan Assets Still Held | 1,050 | 810 | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Actual Return (Loss) on Plan Assets Sold | 0 | 0 | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Assets Transferred into (out of) Level 3 | 0 | 0 | ||
Fair Value of Plan Assets, End of period | [2] | $ 12,410 | $ 9,571 | |
[1] | Represents group annuity contracts with Farm Bureau Life | |||
[2] | Represents interests in several limited partnerships. As of December 31, 2018, a limited partnership with a fair value estimate of $0.6 million using net asset value per share as a practical expedient has not been classified in the fair value hierarchy above in accordance with fair value reporting guidance. |
Retirement and Compensation _11
Retirement and Compensation Plans Other retirement plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Contribution Plan, Cost | $ 2,900 | $ 2,600 | $ 2,400 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | [1] | $ (1,987) | 1,483 | 1,578 |
Minimum [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined contribution plan, employer discretionary percentage | 2.75% | |||
Maximum [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined contribution plan, employer discretionary percentage | 5.75% | |||
Defined Contribution Plan Grandfathered Choice Participant [Member] | Maximum [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4.00% | |||
Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 2.00% | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 32,495 | 10,744 | 11,953 | |
Pension Plan [Member] | Maximum [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 2.00% | |||
Health and medical post retirement plans [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Effect of Curtailments on Accumulated Benefit Obligation | 200 | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ (100) | (100) | (100) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (100) | (100) | (100) | |
Cash-based restricted stock unit plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
share based compensation restricted stock units cash paid expense | $ 3,300 | $ 3,300 | $ 2,700 | |
[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. |
Retirement and Compensation _12
Retirement and Compensation Plans Share based compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Options, Outstanding [Roll Forward] | ||||
Options, Outstanding, Number | 23,868 | |||
Options, Exercises in Period | (12,692) | |||
Options, Forfeitures in Period | 0 | |||
Options, Outstanding, Number | 11,176 | 23,868 | ||
Options, Vested and Expected to Vest, Outstanding, Number | 11,176 | |||
Options, Exercisable, Number | 11,176 | |||
Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Options, Outstanding, Weighted Average Exercise Price | $ 21.92 | |||
Options, Exercises in Period, Weighted Average Exercise Price | 19.12 | |||
Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | 0 | |||
Options, Outstanding, Weighted Average Exercise Price | 25.11 | $ 21.92 | ||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | 25.11 | |||
Options, Exercisable, Weighted Average Exercise Price | $ 25.11 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 1 year 5 months 1 day | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 1 year 5 months 1 day | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 1 year 5 months 1 day | |||
Options, Outstanding, Intrinsic Value | [1] | $ 453 | ||
Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | [1] | 453 | ||
Options, Exercisable, Intrinsic Value | [1] | 453 | ||
Options, Exercises in Period, Total Intrinsic Value | 700 | $ 800 | $ 3,200 | |
Cash Received from Exercise of Stock Options | 300 | 700 | 2,500 | |
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | 100 | 200 | 1,000 | |
Cash-based restricted stock unit plan [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Compensation Expense | 1,700 | 1,900 | 2,300 | |
Tax Benefit from Compensation Expense | $ 600 | $ 1,000 | $ 1,200 | |
Nonvested & restricted Stock Units, Number of Shares [Roll Forward] | ||||
Number of shares or units beginning | 102,578 | |||
Stock units, Grants in Period | 24,639 | |||
Stock units, Vested in Period | (40,231) | |||
Stock units, Forfeited in Period | (9,795) | |||
Number of shares or units end of period | 77,191 | 102,578 | ||
Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Nonvested, Weighted Average Grant Date Fair Value | $ 60.76 | $ 52.85 | ||
Stock units, Grants in Period, Weighted Average Grant Date Fair Value | 71.20 | $ 69.10 | $ 60.34 | |
Stock units, Vested in Period, Weighted Average Grant Date Fair Value | 46.99 | |||
Stock units, Forfeitures, Weighted Average Grant Date Fair Value | $ 60.73 | |||
Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 2,000 | |||
share based compensation restricted stock units cash paid expense | $ 3,300 | $ 3,300 | $ 2,700 | |
Directors stock grants-cash based units [Member] | ||||
Nonvested & restricted Stock Units, Number of Shares [Roll Forward] | ||||
Number of shares or units beginning | 25,243 | |||
Number of shares or units end of period | 25,016 | 25,243 | ||
Directors nonrestricted Class A stock grants [Member] | ||||
Nonvested & restricted Stock Units, Number of Shares [Roll Forward] | ||||
Number of shares or units beginning | 53,254 | |||
Number of shares or units end of period | 50,194 | 53,254 | ||
Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Number of Shares Available for Grant | 105,687 | |||
Executive Salary and Bonus Deferred Compensation Plan-cash based units [Member] | ||||
Nonvested & restricted Stock Units, Number of Shares [Roll Forward] | ||||
Number of shares or units beginning | 11,661 | |||
Number of shares or units end of period | 10,743 | 11,661 | ||
Executive Salary and Bonus Deferred Compensation Plan [Member] | ||||
Nonvested & restricted Stock Units, Number of Shares [Roll Forward] | ||||
Number of shares or units beginning | 50,208 | |||
Number of shares or units end of period | 48,312 | 50,208 | ||
Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Number of Shares Available for Grant | 95,304 | |||
Executive excess 401(k) plan [Member] | ||||
Nonvested & restricted Stock Units, Number of Shares [Roll Forward] | ||||
Number of shares or units beginning | 3,175 | |||
Number of shares or units end of period | 3,327 | 3,175 | ||
[1] | Represents the difference between the share price and exercise price for each option, excluding options for which the exercise price is above the share price, at December 31, 2018. |
Managment and Other Agreements
Managment and Other Agreements (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Farm Bureau Property & Casualty insurance company [Member] | |||
Related Party Transaction [Line Items] | |||
Professional and Contract Services Expense | $ 9.2 | $ 9.1 | $ 8.6 |
Equipment Expense | 0.3 | 0.3 | 0.3 |
Subsidiary of Common Parent [Member] | |||
Related Party Transaction [Line Items] | |||
Professional and Contract Services Expense | 1.2 | 1.1 | 1 |
Majority Shareholder [Member] | |||
Related Party Transaction [Line Items] | |||
Royalty Expense | $ 0.6 | 0.6 | 0.6 |
Royalty agreement restriction | $ 0.10 | ||
Other Farm Bureau organizations [Member] | |||
Related Party Transaction [Line Items] | |||
Royalty Expense | $ 1.8 | 1.8 | 1.8 |
Management Service [Member] | Farm Bureau Property & Casualty insurance company [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2 | $ 2 | $ 2.2 |
Committments and Contingencies
Committments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 2.2 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 2.2 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 2.2 | ||
Operating Leases, Rent Expense | 4.3 | $ 4.1 | $ 4.1 |
Deferred Revenue, Revenue Recognized | (0.2) | (0.2) | (0.2) |
Deferred Revenue, Noncurrent | 0.5 | 0.7 | |
Change in state insurance guaranty fund | $ (0.1) | $ (0.1) | $ (0.1) |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||
Net income attributable to FBL Financial Group, Inc. | $ 6,415 | $ 31,010 | $ 32,803 | $ 23,565 | $ 103,980 | $ 26,127 | $ 32,054 | $ 25,144 | $ 93,793 | [1] | $ 187,305 | [1] | $ 102,842 | [1] |
Dividends on preferred stock | 150 | 150 | 150 | |||||||||||
Income available to common stockholders | $ 93,643 | $ 187,155 | $ 102,692 | |||||||||||
Weighted Average Number of Shares Outstanding, Basic | 24,932,189 | 25,038,334 | 24,985,400 | |||||||||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 12,412 | 19,111 | 43,683 | |||||||||||
Weighted Average Number of Shares Outstanding, Diluted | 24,944,601 | 25,057,445 | 25,029,083 | |||||||||||
Earnings per common share | $ 0.26 | $ 1.24 | $ 1.31 | $ 0.94 | $ 4.15 | $ 1.04 | $ 1.28 | $ 1 | $ 3.76 | $ 7.47 | $ 4.11 | |||
Earnings per common share - assuming dilution | $ 0.26 | $ 1.24 | $ 1.31 | $ 0.94 | $ 4.15 | $ 1.04 | $ 1.28 | $ 1 | $ 3.75 | $ 7.47 | $ 4.10 | |||
[1] | Prior period amounts have been adjusted to reflect the accounting change for LIHTC investments. See Note 1 to our consolidated financial statements for additional information. |
Statutory Insurance Informati_3
Statutory Insurance Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments | $ 100,800 | ||
Parent Company [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory accounting practices, net gain from operations | 100,819 | $ 106,062 | $ 106,143 |
Statutory Accounting Practices, Statutory Net Income Amount | 103,923 | 104,947 | 100,657 |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 637,205 | 615,973 | |
Dividend Payments Restrictions Schedule, Statutory Capital and Surplus | 503,722 | 482,490 | |
Statutory RBC Total adjusted capital | 704,541 | 682,570 | |
Statutory Accounting Practices, Statutory Capital and Surplus Required | $ 127,632 | $ 123,628 | |
Statutory RBC Ratio | 552.00% | 552.00% | |
Subsidiaries [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory accounting practices, net gain from operations | $ (321) | $ (192) | (443) |
Statutory Accounting Practices, Statutory Net Income Amount | (321) | (192) | $ (443) |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 8,677 | 9,006 | |
Dividend Payments Restrictions Schedule, Statutory Capital and Surplus | (2,123) | (1,794) | |
Statutory RBC Total adjusted capital | 8,688 | 9,028 | |
Statutory Accounting Practices, Statutory Capital and Surplus Required | $ 218 | $ 172 | |
Statutory RBC Ratio | 3978.00% | 5249.00% | |
Statutory Net Income [Member] | |||
Statutory Accounting Practices [Line Items] | |||
State Insurance Department, Statutory to NAIC, Amount of Reconciling Item | $ 7,500 | ||
Statutory Surplus [Member] | |||
Statutory Accounting Practices [Line Items] | |||
State Insurance Department, Statutory to NAIC, Amount of Reconciling Item | $ 2,600 |
Segment Information Reconciliat
Segment Information Reconciliation Between Net Income and Non-GAAP Operating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||
Net income attributable to FBL Financial Group, Inc. | $ 6,415 | $ 31,010 | $ 32,803 | $ 23,565 | $ 103,980 | $ 26,127 | $ 32,054 | $ 25,144 | $ 93,793 | [1] | $ 187,305 | [1] | $ 102,842 | [1] | |
Initial impact of the Tax Act | 617 | [2] | 81,157 | [2] | 0 | ||||||||||
Realized gains losses on investments net of offsets | [3] | 9,546 | [4] | 459 | 713 | ||||||||||
Derivatives unrealized gain net of offsets | [3] | 6,188 | (2,549) | (1,485) | |||||||||||
Operating Income (Loss) | [1] | $ 108,910 | $ 104,058 | $ 102,070 | |||||||||||
[1] | Prior period amounts have been adjusted to reflect the accounting change for LIHTC investments. See Note 1 to our consolidated financial statements for additional information. | ||||||||||||||
[2] | Amount represents a change in our deferred tax assets and liabilities due to the enactment of the Tax Act. See Note 5 to our consolidated financial statements for additional information. | ||||||||||||||
[3] | Amounts are net of adjustments, as applicable, to amortization of unearned revenue reserves, deferred acquisition costs, value of insurance in force acquired, interest sensitive product reserves and income taxes attributable to these items | ||||||||||||||
[4] | Beginning in 2018, amounts include the change in fair value of equity securities due to a change in accounting guidance. See Note 1 to our consolidated financial statements for additional information. |
Segment Information Reconcili_2
Segment Information Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||
Pre-Tax Operating Income (Loss) | [1] | $ 126,539 | $ 146,027 | $ 144,097 | |||||||||
Income tax on operating income | [1] | 17,629 | 41,969 | 42,027 | |||||||||
Operating Income (Loss) | [1] | 108,910 | 104,058 | 102,070 | |||||||||
Operating revenues | 747,871 | 737,117 | 721,635 | ||||||||||
Realized gains on investments related to revenue | [2] | (12,455) | [3] | (1,469) | (1,771) | ||||||||
Derivative unrealized related to revenues | [2] | (15,790) | 2,263 | 6,550 | |||||||||
Revenues | $ 158,636 | $ 188,111 | $ 190,449 | $ 182,430 | $ 185,438 | $ 181,556 | $ 188,997 | $ 181,920 | 719,626 | 737,911 | 726,414 | ||
Investment Income, Net | 410,098 | 412,936 | 397,620 | ||||||||||
Change in net unrealized gains/losses on derivatives | (15,480) | 2,263 | 6,550 | ||||||||||
Net investment income | $ 83,865 | $ 105,757 | $ 103,974 | $ 101,022 | $ 107,347 | $ 102,950 | $ 103,908 | $ 100,994 | 394,618 | 415,199 | 404,170 | ||
Other Depreciation and Amortization | 32,875 | 24,089 | 28,548 | ||||||||||
Deferred Policy Acquisition Cost, Amortization Expense, Net Investment Gains (Losses) | [2] | (184) | (240) | (673) | |||||||||
Deferred Policy Acquisition Cost, Unrealized Investment Gain (Loss) | [2] | (1,598) | (639) | 562 | |||||||||
Depreciation, Depletion and Amortization | 31,093 | 23,210 | 28,437 | ||||||||||
Annuity | |||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||
Pre-Tax Operating Income (Loss) | 62,846 | 68,821 | 66,025 | ||||||||||
Operating revenues | 223,996 | 224,184 | 214,486 | ||||||||||
Investment Income, Net | 218,823 | 219,700 | 210,679 | ||||||||||
Other Depreciation and Amortization | 9,335 | 6,489 | 8,253 | ||||||||||
Life Insurance | |||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||
Pre-Tax Operating Income (Loss) | 47,680 | 53,856 | 55,977 | ||||||||||
Operating revenues | 430,194 | 418,593 | 414,446 | ||||||||||
Investment Income, Net | 158,003 | 158,318 | 154,427 | ||||||||||
Other Depreciation and Amortization | 16,515 | 18,720 | 15,117 | ||||||||||
Corporate and Other | |||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||
Pre-Tax Operating Income (Loss) | [1] | 16,013 | 23,350 | 22,095 | |||||||||
Operating revenues | 93,681 | 94,340 | 92,703 | ||||||||||
Investment Income, Net | 33,272 | 34,918 | 32,514 | ||||||||||
Other Depreciation and Amortization | $ 7,025 | $ (1,120) | $ 5,178 | ||||||||||
[1] | Prior period amounts have been adjusted to reflect the accounting change for LIHTC investments. See Note 1 to our consolidated financial statements for additional information. | ||||||||||||
[2] | Amounts are net of adjustments, as applicable, to amortization of unearned revenue reserves, deferred acquisition costs, value of insurance in force acquired, interest sensitive product reserves and income taxes attributable to these items | ||||||||||||
[3] | Beginning in 2018, amounts include the change in fair value of equity securities due to a change in accounting guidance. See Note 1 to our consolidated financial statements for additional information. |
Segment Information Segment ass
Segment Information Segment assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | ||||
Segment assets | $ 9,710,472 | $ 9,673,296 | ||
Unrealized Gains on assets in AOCI | [1] | 123,158 | 380,105 | |
Assets | [2] | 9,833,630 | 10,053,401 | |
Goodwill | 9,900 | 9,900 | ||
Annuity | ||||
Segment Reporting Information [Line Items] | ||||
Segment assets | 4,627,277 | 4,608,735 | ||
Goodwill | 3,900 | 3,900 | ||
Life Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Segment assets | 3,528,561 | 3,367,562 | ||
Goodwill | 6,100 | 6,100 | ||
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Segment assets | [2] | 1,554,634 | 1,696,999 | |
Farm Bureau Property & Casualty insurance company [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Leases, Income Statement, Lease Revenue Depreciation and Amortization | $ 4,500 | $ 4,100 | $ 4,400 | |
[1] | Amounts are net adjustments for assumed changes in deferred acquisition costs and value of insurance in force acquired attributable to these items. | |||
[2] | Prior period amounts have been adjusted to reflect the accounting change for LIHTC investments. See Note 1 to our consolidated financial statements for additional information. |
Segment Information Schedule of
Segment Information Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Pre-Tax on Equity Income (Loss) | $ 5,618 | $ 3,984 | $ 3,490 |
Income Tax on Equity Income | (1,179) | (1,394) | (1,221) |
Equity income, net of related income taxes | 4,439 | 2,590 | 2,269 |
Life Insurance | |||
Segment Reporting Information [Line Items] | |||
Pre-Tax on Equity Income (Loss) | 3,840 | 2,741 | 0 |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Pre-Tax on Equity Income (Loss) | $ 1,778 | $ 1,243 | $ 3,490 |
Segment Information Reconcili_3
Segment Information Reconciliation of non-GAAP measures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Proceeds from Insurance Premiums Collected | $ 640,100 | $ 631,000 | $ 689,700 |
Increase (Decrease) in Premiums Receivable | 692 | 949 | 985 |
Traditional life insurance premiums | 198,312 | 195,330 | 196,914 |
Interest sensitive product charges | 122,789 | 112,936 | 111,928 |
Traditional life insurance premiums | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Proceeds from Insurance Premiums Collected | 197,620 | 194,381 | 195,929 |
Life Insurance | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Proceeds from Insurance Premiums Collected | 304,229 | 292,344 | 281,551 |
Interest sensitive product charges | 73,995 | 64,933 | 63,438 |
Life insurance - interest sensitive [Member] | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Proceeds from Insurance Premiums Collected | 106,609 | 97,963 | 85,622 |
Corporate and Other | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Interest sensitive product charges | 43,621 | 43,519 | 44,687 |
Cost of insurance charges & Surrender charges [Member] | Annuity | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Interest sensitive product charges | 5,173 | 4,484 | 3,803 |
Admin charges [Member] | Life Insurance | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Interest sensitive product charges | 16,944 | 15,487 | 14,170 |
Admin charges [Member] | Corporate and Other | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Interest sensitive product charges | 5,021 | 5,332 | 5,547 |
Cost of insurance charges [Member] | Life Insurance | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Interest sensitive product charges | 50,727 | 46,096 | 48,111 |
Cost of insurance charges [Member] | Corporate and Other | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Interest sensitive product charges | 29,151 | 29,670 | 29,805 |
Cost of insurance charges [Member] | Correction of fees charged [Member] | Life Insurance | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Interest sensitive product charges | 3,200 | ||
Surrender charges [Member] | Life Insurance | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Interest sensitive product charges | 2,352 | 1,913 | 1,181 |
Surrender charges [Member] | Corporate and Other | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Interest sensitive product charges | 92 | 150 | 213 |
Separate account charges [Member] | Corporate and Other | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Interest sensitive product charges | 8,535 | 8,246 | 7,957 |
Amortization of policy initiation fees [Member] | Life Insurance | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Interest sensitive product charges | 3,972 | 1,437 | (24) |
Amortization of policy initiation fees [Member] | Corporate and Other | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Interest sensitive product charges | $ 822 | $ 121 | $ 1,165 |
Segment Information Premium con
Segment Information Premium concentration (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
IOWA | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 25.50% | 25.90% | 25.10% |
KANSAS | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 19.20% | 18.10% | 19.10% |
OKLAHOMA | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 7.90% | 8.20% | 8.00% |
Quarterly Financial Informati_3
Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Premiums and product charges | $ 80,224 | $ 79,285 | $ 81,997 | $ 79,595 | $ 75,822 | $ 75,091 | $ 79,718 | $ 77,635 | ||||||
Net investment income | 83,865 | 105,757 | 103,974 | 101,022 | 107,347 | 102,950 | 103,908 | 100,994 | $ 394,618 | $ 415,199 | $ 404,170 | |||
Realized gains (losses) on investments | (9,569) | (759) | 841 | (2,787) | (1,420) | 14 | 921 | (469) | (12,274) | (3,387) | (1,763) | |||
Revenues | 158,636 | 188,111 | 190,449 | 182,430 | 185,438 | 181,556 | 188,997 | 181,920 | 719,626 | 737,911 | 726,414 | |||
Net income attributable to FBL Financial Group, Inc. | $ 6,415 | $ 31,010 | $ 32,803 | $ 23,565 | $ 103,980 | $ 26,127 | $ 32,054 | $ 25,144 | $ 93,793 | [1] | $ 187,305 | [1] | $ 102,842 | [1] |
Earnings per common share | $ 0.26 | $ 1.24 | $ 1.31 | $ 0.94 | $ 4.15 | $ 1.04 | $ 1.28 | $ 1 | $ 3.76 | $ 7.47 | $ 4.11 | |||
Earnings per common share - assuming dilution | $ 0.26 | $ 1.24 | $ 1.31 | $ 0.94 | $ 4.15 | $ 1.04 | $ 1.28 | $ 1 | $ 3.75 | $ 7.47 | $ 4.10 | |||
[1] | Prior period amounts have been adjusted to reflect the accounting change for LIHTC investments. See Note 1 to our consolidated financial statements for additional information. |
Sch I. Schedule of Investments
Sch I. Schedule of Investments (Details) $ in Thousands | Dec. 31, 2018USD ($) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | $ 8,244,263 | [1] |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 8,414,118 | |
Fixed Maturities [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 6,856,277 | [1] |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 7,033,045 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 7,033,045 | |
All Other Corporate Bonds [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 3,231,846 | [1] |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 3,279,885 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 3,279,885 | |
Asset-backed Securities [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 2,155,137 | [1] |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 2,192,996 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 2,192,996 | |
United States Government and agencies | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 19,673 | [1] |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 20,535 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 20,535 | |
States and political subdivisions | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 1,449,621 | [1] |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 1,539,629 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 1,539,629 | |
Equity Securities, Investment Summary [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 93,564 | [1] |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 92,857 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 92,857 | |
Banks, Trust and Insurance, Equities [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 5,303 | [1] |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 5,261 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 5,261 | |
Industrial, Miscellaneous, and All Others [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 3,301 | [1] |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 3,301 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 3,301 | |
Non-redeemable preferred stocks | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 84,960 | [1] |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Fair Value | 84,295 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 84,295 | |
Mortgage loans | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 1,042,936 | [1] |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 1,039,829 | [2] |
Real Estate Investment [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 1,703 | [1] |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 1,543 | [2] |
Policy loans | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 197,366 | [1] |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 197,366 | |
Short-term Investments [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 15,713 | [1] |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 15,713 | |
Other Long-term Investments [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | 36,704 | [1] |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | $ 33,765 | |
[1] | Cost adjusted for repayments and amortization of premiums and accrual of discounts for fixed maturities and short-term investments; original cost for equity securities, real estate and other investments; and unpaid principal balance for mortgage loans and policy loans. | |
[2] | Amount shown on balance sheet differs from cost due to allowance for possible losses. |
Sch II - Condensed Financial _2
Sch II - Condensed Financial Information on Registrant (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Assets [Abstract] | ||||||||||||||||
Fixed maturities - available for sale | $ 7,033,045 | $ 7,291,967 | $ 7,033,045 | $ 7,291,967 | ||||||||||||
Equity securities at fair value (cost: 2018 - $93,564; 2017 - $96,715) | 92,857 | 104,145 | 92,857 | 104,145 | ||||||||||||
Short-term investments | 15,713 | 17,007 | 15,713 | 17,007 | ||||||||||||
Cash and cash equivalents | 19,035 | 52,696 | 19,035 | 52,696 | $ 33,583 | $ 29,490 | ||||||||||
Amounts receivable from affiliates | 3,812 | 3,561 | 3,812 | 3,561 | ||||||||||||
Accrued investment income | 74,524 | 76,468 | 74,524 | 76,468 | ||||||||||||
Current income taxes recoverable | 4,807 | 6,764 | 4,807 | 6,764 | ||||||||||||
Other assets | 163,518 | 177,764 | 163,518 | 177,764 | ||||||||||||
Assets | [1] | 9,833,630 | 10,053,401 | 9,833,630 | 10,053,401 | |||||||||||
Liabilities and stockholders' equity | ||||||||||||||||
Amounts payable to affiliates | 1,461 | 1,164 | 1,461 | 1,164 | ||||||||||||
Long-term debt payable to non-affiliates | 97,000 | 97,000 | 97,000 | 97,000 | ||||||||||||
Liabilities | 8,649,371 | 8,676,276 | 8,649,371 | 8,676,276 | ||||||||||||
Preferred stock | 3,000 | 3,000 | 3,000 | 3,000 | ||||||||||||
Accumulated other comprehensive income | 91,318 | 284,983 | 91,318 | 284,983 | ||||||||||||
Retained earnings | 937,097 | 935,423 | 937,097 | 935,423 | ||||||||||||
Total FBL Financial Group, Inc. stockholders' equity | 1,184,139 | 1,377,067 | 1,184,139 | 1,377,067 | ||||||||||||
Liabilities and Equity | 9,833,630 | 10,053,401 | 9,833,630 | 10,053,401 | ||||||||||||
Revenues: | ||||||||||||||||
Net investment income | 83,865 | $ 105,757 | $ 103,974 | $ 101,022 | 107,347 | $ 102,950 | $ 103,908 | $ 100,994 | 394,618 | 415,199 | 404,170 | |||||
Realized gains (losses) on investments | (9,569) | (759) | 841 | (2,787) | (1,420) | 14 | 921 | (469) | (12,274) | (3,387) | (1,763) | |||||
Other income | 16,181 | 15,400 | 15,165 | |||||||||||||
Revenues | 158,636 | 188,111 | 190,449 | 182,430 | 185,438 | 181,556 | 188,997 | 181,920 | 719,626 | 737,911 | 726,414 | |||||
Costs and Expenses [Abstract] | ||||||||||||||||
Interest expense | 4,851 | 4,850 | 4,850 | |||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 101,033 | 144,760 | 141,789 | |||||||||||||
Income Tax Expense (Benefit) | (11,650) | 39,983 | (41,220) | |||||||||||||
Net income attributable to FBL Financial Group, Inc. | 6,415 | $ 31,010 | $ 32,803 | $ 23,565 | 103,980 | $ 26,127 | $ 32,054 | $ 25,144 | 93,793 | [1] | 187,305 | [1] | 102,842 | [1] | ||
Parent Company [Member] | ||||||||||||||||
Assets [Abstract] | ||||||||||||||||
Investments in subsidiaries (eliminated in consolidation) | 1,233,663 | 1,410,937 | 1,233,663 | 1,410,937 | ||||||||||||
Fixed maturities - available for sale | 25,647 | 29,430 | 25,647 | 29,430 | ||||||||||||
Equity securities at fair value (cost: 2018 - $93,564; 2017 - $96,715) | 5,262 | 4,313 | 5,262 | 4,313 | ||||||||||||
Short-term investments | 5,607 | 6,460 | 5,607 | 6,460 | ||||||||||||
Cash and cash equivalents | 12,116 | 23,954 | 12,116 | 23,954 | 30,803 | $ 26,839 | ||||||||||
Accrued investment income | 18 | 16 | 18 | 16 | ||||||||||||
Current income taxes recoverable | 338 | 0 | 338 | 0 | ||||||||||||
Deferred income tax assets | 6,474 | 7,098 | 6,474 | 7,098 | ||||||||||||
Other assets | 13,257 | 13,381 | 13,257 | 13,381 | ||||||||||||
Assets | 1,307,036 | 1,500,538 | 1,307,036 | 1,500,538 | ||||||||||||
Liabilities and stockholders' equity | ||||||||||||||||
Accrued expenses and other liabilities | 25,896 | 26,093 | 25,896 | 26,093 | ||||||||||||
Current income taxes | 0 | 372 | 0 | 372 | ||||||||||||
Long-term debt payable to non-affiliates | 97,000 | 97,000 | 97,000 | 97,000 | ||||||||||||
Liabilities | 122,897 | 123,471 | 122,897 | 123,471 | ||||||||||||
Preferred stock | 3,000 | 3,000 | 3,000 | 3,000 | ||||||||||||
Accumulated other comprehensive income | 91,318 | 284,983 | 91,318 | 284,983 | ||||||||||||
Retained earnings | 937,097 | 935,423 | 937,097 | 935,423 | ||||||||||||
Total FBL Financial Group, Inc. stockholders' equity | 1,184,139 | 1,377,067 | 1,184,139 | 1,377,067 | ||||||||||||
Liabilities and Equity | 1,307,036 | 1,500,538 | 1,307,036 | 1,500,538 | ||||||||||||
Revenues: | ||||||||||||||||
Net investment income | 2,381 | 1,972 | 2,013 | |||||||||||||
Realized gains (losses) on investments | (591) | 0 | 0 | |||||||||||||
Dividends from subsidiaries (eliminated in consolidation) | 91,997 | 71,500 | 85,900 | |||||||||||||
Other income | 2 | 2 | 2 | |||||||||||||
Revenues | 102,248 | 81,280 | 95,746 | |||||||||||||
Costs and Expenses [Abstract] | ||||||||||||||||
Interest expense | 4,850 | 4,850 | 4,850 | |||||||||||||
General and administrative expenses | 8,605 | 8,408 | 9,002 | |||||||||||||
Total expenses | 13,455 | 13,258 | 13,852 | |||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 88,793 | 68,022 | 81,894 | |||||||||||||
Income Tax Expense (Benefit) | 2,175 | (2,321) | 2,349 | |||||||||||||
Income (Loss) from Continuing Operations Attributable to Parent | 90,968 | 65,701 | 84,243 | |||||||||||||
Equity in undistributed income of subsidiary | 2,825 | 121,604 | 18,599 | |||||||||||||
Net income attributable to FBL Financial Group, Inc. | 93,793 | 187,305 | 102,842 | |||||||||||||
Common Class A | ||||||||||||||||
Liabilities and stockholders' equity | ||||||||||||||||
Common stock, without par value | 152,652 | 153,589 | 152,652 | 153,589 | ||||||||||||
Common Class A | Parent Company [Member] | ||||||||||||||||
Liabilities and stockholders' equity | ||||||||||||||||
Common stock, without par value | 152,652 | 153,589 | 152,652 | 153,589 | ||||||||||||
Common Class B | ||||||||||||||||
Liabilities and stockholders' equity | ||||||||||||||||
Common stock, without par value | 72 | 72 | 72 | 72 | ||||||||||||
Common Class B | Parent Company [Member] | ||||||||||||||||
Liabilities and stockholders' equity | ||||||||||||||||
Common stock, without par value | 72 | 72 | 72 | 72 | ||||||||||||
Affiliated Entity [Member] | Parent Company [Member] | ||||||||||||||||
Assets [Abstract] | ||||||||||||||||
Amounts receivable from affiliates | 935 | 1,142 | 935 | 1,142 | ||||||||||||
Subsidiaries [Member] | ||||||||||||||||
Assets [Abstract] | ||||||||||||||||
Amounts receivable from affiliates | 3,719 | 3,807 | 3,719 | 3,807 | ||||||||||||
Liabilities and stockholders' equity | ||||||||||||||||
Amounts payable to affiliates | $ 1 | $ 6 | 1 | 6 | ||||||||||||
Management Service [Member] | Affiliated Entity [Member] | Parent Company [Member] | ||||||||||||||||
Revenues: | ||||||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,001 | 2,001 | 2,179 | |||||||||||||
Management Service [Member] | Subsidiaries [Member] | Parent Company [Member] | ||||||||||||||||
Revenues: | ||||||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 6,458 | $ 5,805 | $ 5,652 | |||||||||||||
[1] | Prior period amounts have been adjusted to reflect the accounting change for LIHTC investments. See Note 1 to our consolidated financial statements for additional information. |
Sch II - Condensed Financial _3
Sch II - Condensed Financial Information on Registrant Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net Cash Provided by (Used in) Operating Activities | $ 239,177 | $ 239,634 | $ 235,162 |
Equity securities | (4,447) | (2,692) | (11,057) |
Short-term investments, net change | 1,294 | (659) | 11,903 |
Net Cash Provided by (Used in) Investing Activities | (211,892) | (233,318) | (382,884) |
Repurchase of common stock, net | (15,152) | 356 | 1,840 |
Dividends paid | (83,128) | (81,401) | (91,602) |
Net Cash Provided by (Used in) Financing Activities | (60,946) | 12,797 | 151,815 |
Increase in cash and cash equivalents | (33,661) | 19,113 | 4,093 |
Cash and cash equivalents at end of year | 19,035 | 52,696 | 33,583 |
Cash and cash equivalents at beginning of year | 52,696 | 33,583 | 29,490 |
Income Taxes Received, Net | 3,005 | 16,347 | 20,894 |
Cash paid during the period for interest | 4,868 | 4,850 | 4,854 |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net Cash Provided by (Used in) Operating Activities | (2,102) | 417 | (4,342) |
Proceeds from Maturities, Prepayments and Calls of Debt Securities, Available-for-sale | 4,641 | 5,478 | 5,641 |
Equity securities | (1,147) | (702) | (1,397) |
Short-term investments, net change | 853 | (472) | 7,078 |
Dividends from subsidiaries (eliminated in consolidation) | 91,997 | 71,500 | 85,900 |
Net Cash Provided by (Used in) Investing Activities | 96,344 | 75,804 | 97,222 |
Excess tax deductions on stock-based compensation | 0 | 0 | 846 |
Repurchase of common stock, net | (15,152) | 330 | 1,840 |
Capital contribution by parent to subsidiary | (7,800) | (2,000) | 0 |
Dividends paid | (83,128) | (81,400) | (91,602) |
Net Cash Provided by (Used in) Financing Activities | (106,080) | (83,070) | (88,916) |
Increase in cash and cash equivalents | (11,838) | (6,849) | 3,964 |
Cash and cash equivalents at end of year | 12,116 | 23,954 | 30,803 |
Cash and cash equivalents at beginning of year | 23,954 | 30,803 | 26,839 |
Income Taxes Received, Net | (1,617) | (2,849) | 5,486 |
Cash paid during the period for interest | 4,850 | 4,850 | 4,850 |
Dividends in form of cash [Member] | Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends from subsidiaries (eliminated in consolidation) | $ 91,997 | $ 71,500 | $ 85,900 |
Sch II - Condensed Financial _4
Sch II - Condensed Financial Information on Registrant Notes - Dividends, debt and income taxes (Details) - Parent Company [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Dividends from subsidiaries (eliminated in consolidation) | $ 91,997 | $ 71,500 | $ 85,900 |
Initial impact on net deferred tax assets from the Tax Act | $ 4,200 |
Sch III Supplementary Insuran_2
Sch III Supplementary Insurance Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Deferred Policy Acquisition Cost | $ 418,802 | $ 302,611 | $ 330,324 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Liability for Future Policy Benefit, Loss, Claim and Loss Expense | 7,230,853 | 7,078,616 | 6,821,890 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Unearned Premium | 25,916 | 16,324 | 20,922 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Other Policy Claim and Benefit Payable | 563,879 | 589,653 | 595,453 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Premium Revenue | 321,101 | 308,266 | 308,842 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Net Investment Income | 394,618 | 415,199 | 404,170 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Benefit, Claim, Loss and Settlement Expenses | 428,962 | 424,901 | 416,268 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Amortization of Deferred Policy Acquisition Cost | 33,137 | 22,507 | 28,225 | ||
Deferred Policy Acquisition Cost, Amortization Expense, Unrealized Investment Gains (Losses) | [1] | 1,598 | 639 | (562) | |
Deferred Policy Acquisition Cost, Amortization Expense, Net Investment Gains (Losses) | [1] | (184) | (240) | (673) | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Other Operating Expense | 118,918 | 112,371 | 107,742 | ||
Annuity | |||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Deferred Policy Acquisition Cost | 93,819 | 92,116 | 88,762 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Liability for Future Policy Benefit, Loss, Claim and Loss Expense | 4,036,152 | 3,963,187 | 3,827,295 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Unearned Premium | 0 | 0 | 0 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Other Policy Claim and Benefit Payable | 338,646 | 355,877 | 364,966 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Premium Revenue | 5,173 | 4,484 | 3,803 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Net Investment Income | 218,823 | 219,700 | 210,679 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Benefit, Claim, Loss and Settlement Expenses | 124,015 | 122,224 | 113,543 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Amortization of Deferred Policy Acquisition Cost | 11,243 | 8,506 | 11,185 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Other Operating Expense | 25,892 | 24,633 | 23,733 | ||
Life Insurance | |||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Deferred Policy Acquisition Cost | 308,937 | 287,421 | 267,545 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Liability for Future Policy Benefit, Loss, Claim and Loss Expense | 2,776,656 | 2,677,519 | 2,573,276 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Unearned Premium | 19,427 | 17,043 | 13,526 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Other Policy Claim and Benefit Payable | 194,879 | 201,693 | 199,944 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Premium Revenue | 272,797 | 260,780 | 260,331 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Net Investment Income | 158,003 | 158,318 | 154,427 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Benefit, Claim, Loss and Settlement Expenses | 276,571 | 264,657 | 261,757 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Amortization of Deferred Policy Acquisition Cost | 15,264 | 14,368 | 11,038 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Other Operating Expense | 84,389 | 78,313 | 75,100 | ||
Corporate and Other | |||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Deferred Policy Acquisition Cost | 62,778 | 70,247 | 69,664 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Liability for Future Policy Benefit, Loss, Claim and Loss Expense | 416,403 | 419,411 | 417,524 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Unearned Premium | 11,623 | 11,986 | 11,611 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Other Policy Claim and Benefit Payable | 30,354 | 32,083 | 30,543 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Premium Revenue | 43,622 | 43,517 | 44,716 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Net Investment Income | 33,272 | 34,918 | 32,514 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Benefit, Claim, Loss and Settlement Expenses | 34,465 | 39,060 | 37,296 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Amortization of Deferred Policy Acquisition Cost | 8,869 | 488 | 6,078 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Other Operating Expense | 8,637 | 9,425 | 8,912 | ||
Scenario, Adjustment [Member] | |||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Deferred Policy Acquisition Cost | (46,732) | (147,173) | (95,647) | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Liability for Future Policy Benefit, Loss, Claim and Loss Expense | 1,642 | 18,499 | 3,795 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Unearned Premium | (5,134) | (12,705) | (4,215) | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Other Policy Claim and Benefit Payable | 0 | 0 | 0 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Premium Revenue | (310) | 0 | 0 | ||
Unearned revenue reserve, amortization due to realized gains | (181) | [2] | (515) | (8) | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Net Investment Income | 0 | [2] | 0 | 0 | |
Investment Income, Nonoperating | (15,480) | 2,263 | 6,550 | ||
Deferred sales inducements, amortization due to unrealized gains losses | (6,065) | (1,021) | 3,704 | ||
Deferred sales inducements, amortization due to realized gains losses | (24) | [2] | (19) | (32) | |
Deferred Policy Acquisition Cost, Amortization Expense, Unrealized Investment Gains (Losses) | 1,893 | 639 | (562) | ||
Deferred Policy Acquisition Cost, Amortization Expense, Net Investment Gains (Losses) | (346) | [2] | (216) | (638) | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Other Operating Expense | 0 | 0 | 0 | ||
Present Value of Future Profits, amortization due to realized gains losses | $ 0 | [2] | $ 0 | $ (3) | |
[1] | Amounts are net of adjustments, as applicable, to amortization of unearned revenue reserves, deferred acquisition costs, value of insurance in force acquired, interest sensitive product reserves and income taxes attributable to these items | ||||
[2] | Beginning in 2018, amounts include the change in fair value of equity securities due to a change in accounting guidance. See Note 1 to our consolidated financial statements for additional information. |
Sch IV Reinsurance (Details)
Sch IV Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Direct Premiums, Life Insurance in Force | $ 64,290,040 | $ 62,667,310 | $ 60,753,614 |
Ceded Premiums, Life Insurance in Force | 14,030,000 | 14,087,000 | 14,258,457 |
Assumed Premiums, Life Insurance in Force | 455,000 | 487,000 | 523,538 |
Premiums, Net, Life Insurance in Force | $ 50,715,649 | $ 49,068,018 | $ 47,018,695 |
Life Insurance in Force Premiums, Percentage Assumed to Net | 0.90% | 1.00% | 1.10% |
Direct Premiums Earned | $ 351,454 | $ 338,968 | $ 339,601 |
Ceded Premiums Earned | 32,450 | 32,922 | 33,058 |
Assumed Premiums Earned | 2,508 | 2,637 | 2,670 |
Premiums Earned, Net | $ 321,512 | $ 308,683 | $ 309,213 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Premium, Percentage Assumed to Net | 0.80% | 0.90% | 0.90% |
Interest sensitive product charges | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Direct Premiums Earned | $ 121,456 | $ 111,616 | $ 110,608 |
Ceded Premiums Earned | 1,044 | 1,021 | 1,003 |
Assumed Premiums Earned | 2,377 | 2,341 | 2,323 |
Premiums Earned, Net | $ 122,789 | $ 112,936 | $ 111,928 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Premium, Percentage Assumed to Net | 1.90% | 2.10% | 2.10% |
Traditional life insurance premiums | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Direct Premiums Earned | $ 223,960 | $ 220,866 | $ 222,037 |
Ceded Premiums Earned | 25,779 | 25,832 | 25,470 |
Assumed Premiums Earned | 131 | 296 | 347 |
Premiums Earned, Net | $ 198,312 | $ 195,330 | $ 196,914 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Premium, Percentage Assumed to Net | 0.10% | 0.20% | 0.20% |
Accident and health premiums | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Direct Premiums Earned | $ 6,038 | $ 6,486 | $ 6,956 |
Ceded Premiums Earned | 5,627 | 6,069 | 6,585 |
Assumed Premiums Earned | 0 | 0 | 0 |
Premiums Earned, Net | $ 411 | $ 417 | $ 371 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Premium, Percentage Assumed to Net | 0.00% | 0.00% | 0.00% |