Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 1,267,238 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Registrant Name | ASSURANT INC | |
Entity Common Stock, Shares Outstanding | 66,818,458 | |
Trading Symbol | AIZ |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Investments: | |||
Fixed maturity securities available for sale, at fair value (amortized cost - $9,798,374 in 2015 and $10,048,100 in 2014) | $ 10,745,939 | $ 11,263,174 | |
Equity securities available for sale, at fair value (cost - $461,066 in 2015 and $434,875 in 2014) | 523,786 | 499,407 | |
Commercial mortgage loans on real estate, at amortized cost | 1,267,033 | 1,272,616 | |
Policy loans | 45,453 | 48,272 | |
Short-term investments | 442,611 | 345,246 | |
Collateral held/pledged under securities agreements | 95,291 | 95,985 | |
Other investments | 585,394 | 606,752 | |
Total investments | 13,705,507 | 14,131,452 | |
Cash and cash equivalents | 1,297,436 | 1,318,656 | |
Premiums and accounts receivable, net | 1,426,284 | 1,445,630 | |
Reinsurance recoverables | 7,376,942 | 7,254,585 | |
Accrued investment income | 133,374 | 138,868 | |
Deferred acquisition costs | 3,078,233 | 2,957,740 | |
Property and equipment, at cost less accumulated depreciation | 289,416 | 277,645 | |
Tax receivable | 0 | 15,132 | |
Goodwill | 842,202 | 841,239 | |
Value of business acquired | 41,584 | 45,462 | |
Other intangible assets, net | 332,370 | 381,960 | |
Other assets | 399,125 | 847,860 | |
Assets held in separate accounts | 1,919,609 | 1,906,237 | |
Total assets | 30,842,082 | [1] | 31,562,466 |
Liabilities | |||
Future policy benefits and expenses | 9,489,876 | 9,483,672 | |
Unearned premiums | 6,429,804 | 6,529,675 | |
Claims and benefits payable | 4,010,733 | 3,698,606 | |
Commissions payable | 380,205 | 487,322 | |
Reinsurance balances payable | 99,226 | 157,089 | |
Funds held under reinsurance | 95,632 | 75,161 | |
Deferred gain on disposal of businesses | 94,317 | 100,817 | |
Obligation under securities agreements | 95,289 | 95,986 | |
Accounts payable and other liabilities | 2,201,257 | 2,675,515 | |
Tax payable | 26,945 | 0 | |
Debt | 1,171,229 | 1,171,079 | |
Liabilities related to separate accounts | 1,919,609 | 1,906,237 | |
Total liabilities | $ 26,014,122 | $ 26,381,159 | |
Commitments and contingencies (Note 15) | |||
Stockholders’ equity | |||
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 66,998,201 and 69,299,559 shares outstanding at June 30, 2015 and December 31, 2014, respectively | $ 1,496 | $ 1,490 | |
Additional paid-in capital | 3,126,772 | 3,131,274 | |
Retained earnings | 4,851,670 | 4,809,287 | |
Accumulated other comprehensive income | 348,419 | 555,767 | |
Treasury stock, at cost; 82,226,828 and 79,338,142 shares at June 30, 2015 and December 31, 2014, respectively | (3,500,397) | (3,316,511) | |
Total stockholders’ equity | 4,827,960 | 5,181,307 | |
Total liabilities and stockholders’ equity | $ 30,842,082 | $ 31,562,466 | |
[1] | As of December 31, 2014, all goodwill on Assurant's balance sheet was held in the Corporate & Other segment. Beginning January 1, 2015, goodwill is included on the respective segment balance sheets. |
Consolidated Balance Sheets (u3
Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Fixed maturity securities available for sale, amortized cost | $ 9,798,374 | $ 10,048,100 |
Equity securities available for sale, cost | $ 461,066 | $ 438,875 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock, shares outstanding (in shares) | 66,998,201 | 69,299,559 |
Treasury stock, at cost (in shares) | 82,226,828 | 79,338,142 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues | ||||
Net earned premiums | $ 2,138,258 | $ 2,171,734 | $ 4,297,820 | $ 4,232,196 |
Net investment income | 167,786 | 167,508 | 320,059 | 335,566 |
Net realized gains on investments, excluding other-than- temporary impairment losses | 11,999 | 6,117 | 18,524 | 25,868 |
Total other-than-temporary impairment losses | 0 | (40) | (3,208) | (69) |
Portion of net loss recognized in other comprehensive income, before taxes | 0 | 10 | 638 | 39 |
Net other-than-temporary impairment losses recognized in earnings | 0 | (30) | (2,570) | (30) |
Amortization of deferred gain on disposal of businesses | 3,242 | 3,644 | 6,500 | 7,304 |
Fees and other income | 323,609 | 259,128 | 603,171 | 455,569 |
Total revenues | 2,644,894 | 2,608,101 | 5,243,504 | 5,056,473 |
Benefits, losses and expenses | ||||
Policyholder benefits | 1,267,714 | 1,149,613 | 2,478,441 | 2,157,645 |
Amortization of deferred acquisition costs and value of business acquired | 353,883 | 366,589 | 722,886 | 711,371 |
Underwriting, general and administrative expenses | 969,494 | 884,336 | 1,891,403 | 1,727,576 |
Interest expense | 13,778 | 13,776 | 27,556 | 30,841 |
Total benefits, losses and expenses | 2,604,869 | 2,414,314 | 5,120,286 | 4,627,433 |
Income before provision for income taxes | 40,025 | 193,787 | 123,218 | 429,040 |
Provision for income taxes | 7,236 | 50,177 | 40,385 | 148,185 |
Net income | $ 32,789 | $ 143,610 | $ 82,833 | $ 280,855 |
Earnings Per Share | ||||
Basic (in dollars per share) | $ 0.48 | $ 1.98 | $ 1.20 | $ 3.86 |
Diluted (in dollars per share) | 0.47 | 1.95 | 1.18 | 3.81 |
Dividends per share (in dollars per share) | $ 0.30 | $ 0.27 | $ 0.57 | $ 0.52 |
Share Data | ||||
Weighted average shares outstanding used in basic per share calculations (in shares) | 68,558,472 | 72,659,590 | 69,161,001 | 72,753,651 |
Plus: Dilutive securities (in shares) | 685,927 | 884,601 | 785,363 | 981,748 |
Weighted average shares used in diluted per share calculations (in shares) | 69,244,399 | 73,544,191 | 69,946,364 | 73,735,399 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 32,789 | $ 143,610 | $ 82,833 | $ 280,855 |
Other comprehensive (loss) income: | ||||
Change in unrealized gains on securities, net of taxes of $116,577, $(69,980), $88,228 and $(156,856), respectively | (223,064) | 139,934 | (165,605) | 310,967 |
Change in other-than-temporary impairment gains, net of taxes of $152, $(400), $632 and $(1,284), respectively | (281) | 744 | (1,175) | 2,384 |
Change in foreign currency translation, net of taxes of $(712), $9,012, $1,943 and $12,354, respectively | 20,151 | 37,883 | (45,800) | 19,829 |
Amortization of pension and postretirement unrecognized net periodic benefit cost, net of taxes of $(1,409), $(1,094), $(2,818) and $(2,188), respectively | 2,616 | 2,030 | 5,232 | 4,062 |
Total other comprehensive (loss) income | (200,578) | 180,591 | (207,348) | 337,242 |
Total comprehensive (loss) income | $ (167,789) | $ 324,201 | $ (124,515) | $ 618,097 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net change in unrealized gains on securities, taxes | $ 116,577 | $ (69,980) | $ 88,228 | $ (156,856) |
Net change in other-than-temporary impairment gains, taxes | 152 | (400) | 632 | (1,284) |
Net change in foreign currency translation, taxes | (712) | 9,012 | 1,943 | 12,354 |
Amortization of pension and postretirement unrecognized net periodic benefit cost, taxes | $ (1,409) | $ (1,094) | $ (2,818) | $ (2,188) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (unaudited) - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock |
Balance at Dec. 31, 2014 | $ 5,181,307 | $ 1,490 | $ 3,131,274 | $ 4,809,287 | $ 555,767 | $ (3,316,511) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock plan exercises | (16,421) | 6 | (16,427) | |||
Stock plan compensation expense | 13,413 | 13,413 | ||||
Change in tax benefit from share-based payment arrangements | (1,488) | (1,488) | ||||
Dividends | (40,450) | (40,450) | ||||
Acquisition of common stock | (183,886) | (183,886) | ||||
Net income | 82,833 | 82,833 | ||||
Other comprehensive loss | (207,348) | (207,348) | ||||
Balance at Jun. 30, 2015 | $ 4,827,960 | $ 1,496 | $ 3,126,772 | $ 4,851,670 | $ 348,419 | $ (3,500,397) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Statement of Cash Flows [Abstract] | |||
Net cash provided by operating activities | $ 168,896 | $ 261,768 | |
Sales of: | |||
Fixed maturity securities available for sale | 1,219,007 | 911,944 | |
Equity securities available for sale | 96,541 | 74,975 | |
Other invested assets | 40,831 | 43,644 | |
Property and equipment and other | 3,407 | 128 | |
Subsidiary, net of cash transferred | [1] | 65,002 | 0 |
Maturities, calls, prepayments, and scheduled redemption of: | |||
Fixed maturity securities available for sale | 394,341 | 425,887 | |
Commercial mortgage loans on real estate | 123,739 | 80,032 | |
Purchases of: | |||
Fixed maturity securities available for sale | (1,459,405) | (1,372,172) | |
Equity securities available for sale | (122,710) | (76,074) | |
Commercial mortgage loans on real estate | (123,624) | (40,950) | |
Other invested assets | (9,344) | (15,808) | |
Property and equipment and other | (62,251) | (30,867) | |
Subsidiary, net of cash transferred | [2] | (11,571) | (59,541) |
Equity interest | [3] | (457) | (20,950) |
Change in short-term investments | (101,146) | 112,558 | |
Change in policy loans | 2,693 | 1,800 | |
Change in collateral held/pledged under securities agreements | 697 | (11) | |
Net cash provided by investing activities | 55,750 | 34,595 | |
Financing activities | |||
Repayment of debt | 0 | (467,330) | |
Change in tax benefit from share-based payment arrangements | (1,488) | 14,182 | |
Acquisition of common stock | (187,752) | (81,858) | |
Dividends paid | (40,450) | (38,933) | |
Payment of contingent obligations | [4] | 0 | (31,871) |
Change in obligation under securities agreements | (697) | 11 | |
Net cash used in financing activities | (230,387) | (605,799) | |
Effect of exchange rate changes on cash and cash equivalents | (15,479) | (8,878) | |
Change in cash and cash equivalents | (21,220) | (318,314) | |
Cash and cash equivalents at beginning of period | 1,318,656 | 1,717,184 | |
Cash and cash equivalents at end of period | $ 1,297,436 | $ 1,398,870 | |
[1] | Relates to the sale of American Reliable Insurance Company to Global Indemnity Group, Inc., in January 2015. | ||
[2] | Relates to the acquisition of StreetLinks LLC in 2014 and an immaterial acquisition made in 2015. | ||
[3] | Relates to the purchase of equity interest in Iké Asistencia. | ||
[4] | Relates to the delayed and contingent liability payments established at the time of acquisition of Lifestyle Services Group. |
Nature of Operations
Nature of Operations | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Assurant, Inc. (the “Company”) is a holding company whose subsidiaries provide specialty protection products and related services in North America, Latin America, Europe and other select worldwide markets. The Company is traded on the New York Stock Exchange under the symbol "AIZ." Through its operating subsidiaries, the Company provides mobile device protection products and services; debt protection administration; credit-related insurance; warranties and extended service products and related services for consumer electronics, appliances and vehicles; pre-funded funeral insurance; lender-placed homeowners insurance; property preservation and valuation services; flood insurance; renters insurance and related products; manufactured housing homeowners insurance; individual health and small employer group health insurance; group dental insurance; group disability insurance; and group life insurance. As previously announced, the Company concluded a comprehensive review of its portfolio and decided to sharpen its focus on specialty housing and lifestyle protection products and services. As a result, the Company will exit the health insurance market and is pursuing a sale of its Assurant Employee Benefits segment. See Note 4 for more information. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, these statements do not include all of the information and footnotes required by GAAP for complete financial statements. The interim financial data as of June 30, 2015 and December 31, 2014 and for the three and six months ended June 30, 2015 and 2014 is unaudited; in the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. The unaudited interim consolidated financial statements include the accounts of the Company and all of its wholly owned subsidiaries. All inter-company transactions and balances are eliminated in consolidation. The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, and the rules and regulations thereunder (together, the “Affordable Care Act”) introduced new and significant premium stabilization programs in 2014. These programs require the Company to record amounts to our consolidated financial statements based on assumptions and estimates that could materially change as experience develops. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Not Yet Adopted In April 2015, the Financial Accounting Standards Board (“FASB”) issued amended guidance on presentation of debt issuance costs. This amended guidance requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs is not affected by the amendments. The amended guidance is effective for interim and annual periods beginning after December 15, 2015. Therefore, the Company is required to adopt the guidance on January 1, 2016. Early adoption of the amended guidance is permitted for financial statements that have not been previously issued. An entity should apply the amended guidance on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. The Company does not expect the adoption of this presentation guidance to impact the Company’s financial position or results of operations. In February 2015, the FASB issued new consolidation guidance that affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The new guidance eliminates specialized guidance for limited partnerships and similar legal entities, and removes the indefinite deferral for certain investment funds. The new guidance is effective for interim and annual periods beginning after December 15, 2015. Therefore, the Company is required to adopt the guidance on January 1, 2016. Early adoption is permitted, including adoption in an interim period. The new guidance may be applied retrospectively or through a cumulative effect adjustment to retained earnings as of the beginning of the year of adoption. The Company is evaluating the requirements of this new consolidation guidance and the potential impact on the Company’s financial position and results of operations. In May 2014, the FASB issued amended guidance on revenue recognition. The amended guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. Insurance contracts are within the scope of other standards and therefore are specifically excluded from the scope of the amended revenue recognition guidance. The core principle of the amended guidance is that an entity recognizes revenue to depict the transfer of promised 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. To achieve the core principle, the entity applies a five step process outlined in the amended guidance. The amended guidance also includes a cohesive set of disclosure requirements. The amended guidance is effective for interim and annual periods beginning after December 15, 2016 and early adoption is not permitted. Therefore, the Company is required to adopt the guidance on January 1, 2017. An entity can choose to apply the amended guidance using either the full retrospective approach or a modified retrospective approach. The Company is evaluating the requirements of the revenue recognition guidance as it relates to its non-insurance contract revenue and the potential impact on the Company’s financial position and results of operations. |
Reorganization
Reorganization | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Reorganization | Reorganization On June 7, 2015, the Company concluded its comprehensive review of strategic alternatives for the Assurant Health business segment as the Company sharpens its focus on housing and lifestyle specialty protection products and services. The Company has begun a process to wind down its major medical operations and expects to substantially complete its exit of the health insurance market by the end of 2016. As part of this process, Assurant is negotiating to reinsure its supplemental and small-group self-funded lines of business and to sell certain legal entities to National General Holdings Corp., subject to any necessary regulatory approval. The following table presents information regarding exit-related charges: Premium deficiency reserves Severance and retention Long-lived asset impairments and contract and lease terminations Other transaction costs Total amount expected to be incurred $ 122,488 $ 93,500 $ 31,000 $ 6,000 The amount incurred in the period $ 122,488 $ 14,435 $ 22,307 $ 4,996 Amounts related to premium deficiency reserves are included in policyholders benefits and all other amounts in the above table are included in underwriting, general and administrative expenses on the consolidated statements of operations. The total amount expected to be incurred is an estimate that is subject to change as facts and circumstances evolve. For instance, severance and retention estimates could change if employees previously identified for separation resign from the Company before the date through which they are required to be employed in order to receive severance and retention benefits. Future cash payments, primarily related to severance and retention charges, are expected to be substantially complete by 2016. |
Dispositions
Dispositions | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions | Dispositions In January 2015, the Company completed the sale of its general agency business and primary insurance carrier, American Reliable Insurance Company (“ARIC”), to Global Indemnity Group, Inc., a subsidiary of Global Indemnity plc, for $117,860 in net cash consideration. The business was part of the Assurant Specialty Property segment and offers specialty personal lines and agricultural insurance through general and independent agents. The sale price was based on the GAAP book value of the business from June 30, 2014 adjusted as of January 1, 2015. In accordance with held for sale accounting, the Company recorded a loss of $21,526 for the period ended December 31, 2014. Upon final settlement, the Company recorded gains (losses) of $5,284 and $(4,164) for the three months ended March 31, 2015 and June 30, 2015, respectively. The net gain recorded on the sale as of June 30, 2015 is $1,120 , which is classified in underwriting, general and administrative expenses on the Consolidated Statements of Operations. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2015 | |
Investments [Abstract] | |
Investments | Investments The following tables show the cost or amortized cost, gross unrealized gains and losses, fair value and other-than-temporary impairment (“OTTI”) of our fixed maturity and equity securities as of the dates indicated: June 30, 2015 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI (a) Fixed maturity securities: United States government and government agencies and authorities $ 170,201 $ 4,576 $ (376 ) $ 174,401 $ — States, municipalities and political subdivisions 705,878 54,635 (1,605 ) 758,908 — Foreign governments 549,039 75,012 (1,611 ) 622,440 — Asset-backed 3,762 1,578 (124 ) 5,216 1,478 Commercial mortgage-backed 29,974 673 — 30,647 — Residential mortgage-backed 1,018,385 55,042 (4,327 ) 1,069,100 16,472 Corporate 7,321,135 798,462 (34,370 ) 8,085,227 21,157 Total fixed maturity securities $ 9,798,374 $ 989,978 $ (42,413 ) $ 10,745,939 $ 39,107 Equity securities: Common stocks $ 24,119 $ 15,772 $ (12 ) $ 39,879 $ — Non-redeemable preferred stocks 436,947 48,991 (2,031 ) 483,907 — Total equity securities $ 461,066 $ 64,763 $ (2,043 ) $ 523,786 $ — December 31, 2014 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI (a) Fixed maturity securities: United States government and government agencies and authorities $ 172,070 $ 5,201 $ (429 ) $ 176,842 $ — States, municipalities and political subdivisions 703,167 67,027 (353 ) 769,841 — Foreign governments 591,981 74,339 (1,457 ) 664,863 — Asset-backed 3,917 1,680 (78 ) 5,519 1,570 Commercial mortgage-backed 44,907 1,109 — 46,016 — Residential mortgage-backed 911,004 58,876 (1,154 ) 968,726 17,732 Corporate 7,621,054 1,026,927 (16,614 ) 8,631,367 21,612 Total fixed maturity securities $ 10,048,100 $ 1,235,159 $ (20,085 ) $ 11,263,174 $ 40,914 Equity securities: Common stocks $ 22,300 $ 15,651 $ (1 ) $ 37,950 $ — Non-redeemable preferred stocks 412,575 50,975 (2,093 ) 461,457 — Total equity securities $ 434,875 $ 66,626 $ (2,094 ) $ 499,407 $ — (a) Represents the amount of OTTI recognized in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date. Our states, municipalities and political subdivisions holdings are highly diversified across the U.S. and Puerto Rico, with no individual state’s exposure (including both general obligation and revenue securities) exceeding 0.5% of the overall investment portfolio as of June 30, 2015 and December 31, 2014. At June 30, 2015 and December 31, 2014, the securities include general obligation and revenue bonds issued by states, cities, counties, school districts and similar issuers, including $335,964 and $270,107 , respectively, of advance refunded or escrowed-to-maturity bonds (collectively referred to as “pre-refunded bonds”), which are bonds for which an irrevocable trust has been established to fund the remaining payments of principal and interest. As of June 30, 2015 and December 31, 2014, revenue bonds account for 50% and 51% of the holdings, respectively. Excluding pre-refunded revenue bonds, the activities supporting the income streams of the Company’s revenue bonds are across a broad range of sectors, primarily highway, water, airport and marina, higher education, specifically pledged tax revenues, and other miscellaneous sources such as bond banks, finance authorities and appropriations. The Company’s investments in foreign government fixed maturity securities are held mainly in countries and currencies where the Company has policyholder liabilities, which allow the assets and liabilities to be more appropriately matched. At June 30, 2015, approximately 77% , 10% and 5% of the foreign government securities were held in the Canadian government/provincials and the governments of Brazil and Germany, respectively. At December 31, 2014, approximately 76% , 10% and 5% of the foreign government securities were held in the Canadian government/provincials and the governments of Brazil and Germany, respectively. No other country represented more than 2% and 3% of our foreign government securities as of June 30, 2015 and December 31, 2014, respectively. The Company has European investment exposure in its corporate fixed maturity and equity securities of $967,422 with a net unrealized gain of $90,871 at June 30, 2015 and $1,060,655 with a net unrealized gain of $116,975 at December 31, 2014. Approximately 22% of the corporate European exposure is held in the financial industry at June 30, 2015 and December 31, 2014. Our largest European country exposure represented approximately 5% of the fair value of our corporate securities as of June 30, 2015 and December 31, 2014. Approximately 6% of the fair value of the corporate European securities are pound and euro-denominated and are not hedged to U.S. dollars, but held to support those foreign-denominated liabilities. Our international investments are managed as part of our overall portfolio with the same approach to risk management and focus on diversification. The Company has exposure to the energy sector in its corporate fixed maturity securities of $927,651 with a net unrealized gain of $75,138 at June 30, 2015 and $992,012 with a net unrealized gain of $89,590 at December 31, 2014. Approximately 88% and 89% of the energy exposure is rated as investment grade as of June 30, 2015 and December 31, 2014, respectively. The cost or amortized cost and fair value of fixed maturity securities at June 30, 2015 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. Cost or Amortized Cost Fair Value Due in one year or less $ 307,598 $ 313,370 Due after one year through five years 1,995,950 2,110,987 Due after five years through ten years 2,280,879 2,382,011 Due after ten years 4,161,826 4,834,608 Total 8,746,253 9,640,976 Asset-backed 3,762 5,216 Commercial mortgage-backed 29,974 30,647 Residential mortgage-backed 1,018,385 1,069,100 Total $ 9,798,374 $ 10,745,939 The following table summarizes the proceeds from sales of available-for-sale securities and the gross realized gains and gross realized losses that have been included in earnings as a result of those sales. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Proceeds from sales $ 804,476 $ 449,405 $ 1,356,989 $ 1,002,404 Gross realized gains 13,912 8,804 26,255 31,587 Gross realized losses 5,844 1,300 11,443 6,567 The following table sets forth the net realized gains (losses), including OTTI, recognized in the statement of operations as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net realized gains (losses) related to sales and other: Fixed maturity securities $ 6,746 $ 6,500 $ 12,259 $ 21,690 Equity securities 1,080 13 1,954 5,137 Other investments 4,173 (396 ) 4,311 (959 ) Total net realized gains related to sales and other 11,999 6,117 18,524 25,868 Net realized losses related to other-than-temporary impairments: Fixed maturity securities — (30 ) (2,570 ) (30 ) Total net realized losses related to other-than- temporary impairments — (30 ) (2,570 ) (30 ) Total net realized gains $ 11,999 $ 6,087 $ 15,954 $ 25,838 Other-Than-Temporary Impairments The Company follows the OTTI guidance, which requires entities to separate an OTTI of a debt security into two components when there are credit related losses associated with the impaired debt security for which the Company asserts that it does not have the intent to sell, and it is more likely than not that it will not be required to sell before recovery of its cost basis. Under the OTTI guidance, the amount of the OTTI related to a credit loss is recognized in earnings, and the amount of the OTTI related to other, non-credit factors ( e.g. , interest rates, market conditions, etc.) is recorded as a component of other comprehensive income. In instances where no credit loss exists but the Company intends to sell the security or it is more likely than not that the Company will have to sell the debt security prior to the anticipated recovery, the decline in market value below amortized cost is recognized as an OTTI in earnings. In periods after the recognition of an OTTI on debt securities, the Company accounts for such securities as if they had been purchased on the measurement date of the OTTI at an amortized cost basis equal to the previous amortized cost basis less the OTTI recognized in earnings. For debt securities for which OTTI was recognized in earnings, the difference between the new amortized cost basis and the cash flows expected to be collected will be accreted or amortized into net investment income. There was no OTTI recorded for the three months ended June 30, 2015. For the six months ended June 30, 2015, the Company recorded $3,208 of OTTI, of which $2,570 was related to credit losses and recorded as net OTTI losses recognized in earnings, with the remaining $638 related to all other factors and recorded as an unrealized loss component of AOCI. For the three and six months ended June 30, 2014, the Company recorded $40 and $69 , respectively, of OTTI, of which $30 and $30 , respectively was related to credit losses and recorded as net OTTI losses recognized in earnings, with the remaining $10 and $39 , respectively, related to all other factors and recorded as an unrealized loss component of AOCI. The following table sets forth the amount of credit loss impairments recognized within the results of operations on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in AOCI, and the corresponding changes in such amounts. Three Months Ended June 30, 2015 2014 Balance, March 31, $ 36,057 $ 44,301 Additions for credit loss impairments recognized in the current period on securities previously impaired — 30 Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security (603 ) (2,163 ) Reductions for credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period (1,146 ) (2,920 ) Balance, June 30, $ 34,308 $ 39,248 Six Months Ended June 30, 2015 2014 Balance, January 1, $ 35,424 $ 45,278 Additions for credit loss impairments recognized in the current period on securities previously impaired — 30 Additions for credit loss impairments recognized in the current period on securities not previously impaired 2,570 — Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security (1,075 ) (2,645 ) Reductions for credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period (2,611 ) (3,415 ) Balance, June 30, $ 34,308 $ 39,248 We regularly monitor our investment portfolio to ensure investments that may be other-than-temporarily impaired are timely identified, properly valued, and charged against earnings in the proper period. The determination that a security has incurred an other-than-temporary decline in value requires the judgment of management. Assessment factors include, but are not limited to, the length of time and the extent to which the market value has been less than cost, the financial condition and rating of the issuer, whether any collateral is held, the intent and ability of the Company to retain the investment for a period of time sufficient to allow for recovery for equity securities and the intent to sell or whether it is more likely than not that the Company will be required to sell for fixed maturity securities. Inherently, there are risks and uncertainties involved in making these judgments. Changes in circumstances and critical assumptions such as a continued weak economy, a more pronounced economic downturn or unforeseen events which affect one or more companies, industry sectors, or countries could result in additional impairments in future periods for other-than-temporary declines in value. Any equity security whose price decline is deemed other-than-temporary is written down to its then current market value with the amount of the impairment reported as a realized loss in that period. The impairment of a fixed maturity security that the Company has the intent to sell or that it is more likely than not that the Company will be required to sell is deemed other-than-temporary and is written down to its market value at the balance sheet date with the amount of the impairment reported as a realized loss in that period. For all other-than-temporarily impaired fixed maturity securities that do not meet either of these two criteria, the Company is required to analyze its ability to recover the amortized cost of the security by calculating the net present value of projected future cash flows. For these other-than-temporarily impaired fixed maturity securities, the net amount recognized in earnings is equal to the difference between the amortized cost of the fixed maturity security and its net present value. The Company considers different factors to determine the amount of projected future cash flows and discounting methods for corporate debt and residential and commercial mortgage-backed or asset-backed securities. For corporate debt securities, the split between the credit and non-credit losses is driven principally by assumptions regarding the amount and timing of projected future cash flows. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the security at the date of acquisition. For residential and commercial mortgage-backed and asset-backed securities, cash flow estimates, including prepayment assumptions, are based on data from widely accepted third-party data sources or internal estimates. In addition to prepayment assumptions, cash flow estimates vary based on assumptions regarding the underlying collateral including default rates, recoveries and changes in value. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the fixed maturity security prior to impairment at the balance sheet date. The discounted cash flows become the new amortized cost basis of the fixed maturity security. In periods subsequent to the recognition of an OTTI, the Company generally accretes the discount (or amortizes the reduced premium) into net investment income, up to the non-discounted amount of projected future cash flows, resulting from the reduction in cost basis, based upon the amount and timing of the expected future cash flows over the estimated period of cash flows. The investment category and duration of the Company’s gross unrealized losses on fixed maturity securities and equity securities at June 30, 2015 and December 31, 2014 were as follows: June 30, 2015 Less than 12 months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturity securities: United States Government and government agencies and authorities $ 48,420 $ (316 ) $ 8,549 $ (60 ) $ 56,969 $ (376 ) States, municipalities and political subdivisions 20,761 (634 ) 2,363 (971 ) 23,124 (1,605 ) Foreign governments 48,399 (319 ) 26,975 (1,292 ) 75,374 (1,611 ) Asset-backed — — 1,318 (124 ) 1,318 (124 ) Residential mortgage-backed 243,223 (3,936 ) 13,750 (391 ) 256,973 (4,327 ) Corporate 1,061,803 (32,266 ) 18,709 (2,104 ) 1,080,512 (34,370 ) Total fixed maturity securities $ 1,422,606 $ (37,471 ) $ 71,664 $ (4,942 ) $ 1,494,270 $ (42,413 ) Equity securities: Common stock $ 667 $ (12 ) $ — $ — $ 667 $ (12 ) Non-redeemable preferred stocks 78,449 (1,164 ) 12,461 (867 ) 90,910 (2,031 ) Total equity securities $ 79,116 $ (1,176 ) $ 12,461 $ (867 ) $ 91,577 $ (2,043 ) December 31, 2014 Less than 12 months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturity securities: United States Government and government agencies and authorities $ 34,551 $ (188 ) $ 21,488 $ (241 ) $ 56,039 $ (429 ) States, municipalities and political subdivisions 3,050 (282 ) 4,633 (71 ) 7,683 (353 ) Foreign governments 19,886 (67 ) 37,741 (1,390 ) 57,627 (1,457 ) Asset-backed — — 1,348 (78 ) 1,348 (78 ) Residential mortgage-backed 22,337 (71 ) 61,682 (1,083 ) 84,019 (1,154 ) Corporate 640,641 (13,132 ) 113,918 (3,482 ) 754,559 (16,614 ) Total fixed maturity securities $ 720,465 $ (13,740 ) $ 240,810 $ (6,345 ) $ 961,275 $ (20,085 ) Equity securities: Common stock $ — $ — $ 196 $ (1 ) $ 196 $ (1 ) Non-redeemable preferred stocks 8,844 (264 ) 24,784 (1,829 ) 33,628 (2,093 ) Total equity securities $ 8,844 $ (264 ) $ 24,980 $ (1,830 ) $ 33,824 $ (2,094 ) Total gross unrealized losses represent approximately 3% and 2% of the aggregate fair value of the related securities at June 30, 2015 and December 31, 2014, respectively. Approximately 87% and 63% of these gross unrealized losses have been in a continuous loss position for less than twelve months at June 30, 2015 and December 31, 2014, respectively. The total gross unrealized losses are comprised of 642 and 385 individual securities at June 30, 2015 and December 31, 2014, respectively. In accordance with its policy described above, the Company concluded that for these securities an adjustment to its results of operations for other-than-temporary impairments of the gross unrealized losses was not warranted at June 30, 2015 and December 31, 2014. These conclusions were based on a detailed analysis of the underlying credit and expected cash flows of each security. As of June 30, 2015, the gross unrealized losses that have been in a continuous loss position for twelve months or more were concentrated in the Company’s states, municipalities and political subdivisions, foreign governments, and corporate fixed maturity securities, and in non-redeemable preferred stocks. The non-redeemable preferred stocks are perpetual preferred securities that have characteristics of both debt and equity securities. To evaluate these securities, we apply an impairment model similar to that used for our fixed maturity securities. As of June 30, 2015, the Company did not intend to sell these securities and it was not more likely than not that the Company would be required to sell them and no underlying cash flow issues were noted. Therefore, the Company did not recognize an OTTI on those perpetual preferred securities that had been in a continuous unrealized loss position for twelve months or more. As of June 30, 2015, the Company did not intend to sell the fixed maturity securities and it was not more likely than not that the Company would be required to sell the securities before the anticipated recovery of their amortized cost basis. The gross unrealized losses are primarily attributable to widening credit spreads associated with an underlying shift in overall credit risk premium. The Company has entered into commercial mortgage loans, collateralized by the underlying real estate, on properties located throughout the U.S. and Canada. At June 30, 2015, approximately 39% of the outstanding principal balance of commercial mortgage loans was concentrated in the states of California, New York, and Oregon. Although the Company has a diversified loan portfolio, an economic downturn could have an adverse impact on the ability of its debtors to repay their loans. The outstanding balance of commercial mortgage loans range in size from $40 to $14,990 at June 30, 2015 and from $77 to $15,190 at December 31, 2014. Credit quality indicators for commercial mortgage loans are loan-to-value and debt-service coverage ratios. Loan-to-value and debt-service coverage ratios are measures commonly used to assess the credit quality of commercial mortgage loans. The loan-to-value ratio compares the principal amount of the loan to the fair value of the underlying property collateralizing the loan, and is commonly expressed as a percentage. The debt-service coverage ratio compares a property’s net operating income to its debt-service payments and is commonly expressed as a ratio. The loan-to-value and debt-service coverage ratios are generally updated annually in the third quarter. The following summarizes our loan-to-value and average debt-service coverage ratios as of the dates indicated: June 30, 2015 Loan-to-Value Carrying Value % of Gross Mortgage Loans Debt-Service Coverage Ratio 70% and less $ 1,171,935 92.3 % 1.95 71 – 80% 62,653 4.9 % 1.29 81 – 95% 35,844 2.8 % 1.04 Gross commercial mortgage loans 1,270,432 100 % 1.89 Less valuation allowance (3,399 ) Net commercial mortgage loans $ 1,267,033 December 31, 2014 Loan-to-Value Carrying Value % of Gross Mortgage Loans Debt-Service Coverage Ratio 70% and less $ 1,168,454 91.6 % 2.01 71 – 80% 73,762 5.8 % 1.26 81 – 95% 27,268 2.1 % 1.04 Greater than 95% 6,531 0.5 % 0.43 Gross commercial mortgage loans 1,276,015 100 % 1.94 Less valuation allowance (3,399 ) Net commercial mortgage loans $ 1,272,616 All commercial mortgage loans that are individually impaired have an established mortgage loan valuation allowance for losses. Changing economic conditions affect our valuation of commercial mortgage loans. Changing vacancies and rents are incorporated into the discounted cash flow analysis that we perform for monitored loans and may contribute to the establishment of (or an increase or decrease in) a commercial mortgage loan valuation allowance for losses. In addition, we continue to monitor the entire commercial mortgage loan portfolio to identify risk. Areas of emphasis are properties that have exposure to specific geographic events, have deteriorating credits or have experienced a reduction in debt-service coverage ratio. Where warranted, we have established or increased a valuation allowance based upon this analysis. Collateralized Transactions The Company lends fixed maturity securities, primarily bonds issued by the U.S. government and government agencies and authorities, and U.S. corporations, to selected broker/dealers. All such loans are negotiated on an overnight basis; term loans are not permitted. The Company receives collateral, greater than or equal to 102% of the fair value of the securities lent, plus accrued interest, in the form of cash and cash equivalents held by a custodian bank for the benefit of the Company. The use of cash collateral received is unrestricted. The Company reinvests the cash collateral received, generally in investments of high credit quality that are designated as available-for-sale. The Company monitors the fair value of securities loaned and the collateral received, with additional collateral obtained, as necessary. The Company is subject to the risk of loss on the re-investment of cash collateral. The Company's investment portfolio is readily marketable and convertible to cash sufficient to provide for short term needs related to the securities lending transactions. As of June 30, 2015 and December 31, 2014, our collateral held under securities lending agreements, of which its use is unrestricted, was $95,291 and $95,985 , respectively, and is included in the consolidated balance sheets under the collateral held/pledged under securities agreements. Our liability to the borrower for collateral received was $95,289 and $95,986 , respectively, and is included in the consolidated balance sheets under the obligation under securities agreements. The difference between the collateral held and obligations under securities lending is recorded as an unrealized gain (loss) and is included as part of AOCI. All securities were in an unrealized gain position as of June 30, 2015. All securities with unrealized losses have been in a continuous loss position for less than 12 months as of December 31, 2014. The Company includes the available-for-sale investments purchased with the cash collateral in its evaluation of other-than-temporary impairments. As of June 30, 2015, all of the obligation under securities agreements is invested in corporate fixed maturities, money market funds and daily repurchase agreements with a remaining contractual maturity of one year or less. Cash proceeds that the Company receives as collateral for the securities it lends and subsequent repayment of the cash are regarded by the Company as cash flows from financing activities, since the cash received is considered a borrowing. Since the Company reinvests the cash collateral generally in investments that are designated as available-for-sale, the reinvestment is presented as cash flows from investing activities. |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures Fair Values, Inputs and Valuation Techniques for Financial Assets and Liabilities Disclosures The fair value measurements and disclosures guidance defines fair value and establishes a framework for measuring fair value. Fair value is defined as 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. In accordance with this guidance, the Company has categorized its recurring basis financial assets and liabilities into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and takes into account factors specific to the asset or liability. The levels of the fair value hierarchy are described below: • Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access. • Level 2 inputs utilize other than quoted prices included in Level 1 that are observable for the asset, either directly or indirectly, for substantially the full term of the asset. Level 2 inputs include quoted prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active and inputs other than quoted prices that are observable in the marketplace for the asset. The observable inputs are used in valuation models to calculate the fair value for the asset. • Level 3 inputs are unobservable but are significant to the fair value measurement for the asset, and include situations where there is little, if any, market activity for the asset. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset. The Company reviews fair value hierarchy classifications on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The following tables present the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014. The amounts presented below for Collateral held/pledged under securities agreements, Other investments, Cash equivalents, Other assets, Assets and Liabilities held in separate accounts and Other liabilities differ from the amounts presented in the consolidated balance sheets because only certain investments or certain assets and liabilities within these line items are measured at estimated fair value. Other investments are comprised of investments in the Assurant Investment Plan, American Security Insurance Company Investment Plan, Assurant Deferred Compensation Plan, a modified coinsurance arrangement and other derivatives. Other liabilities are comprised of investments in the Assurant Investment Plan and other derivatives. The fair value amount and the majority of the associated levels presented for Other investments and Assets and Liabilities held in separate accounts are received directly from third parties. June 30, 2015 Total Level 1 Level 2 Level 3 Financial Assets Fixed maturity securities: United States Government and government agencies and authorities $ 174,401 $ — $ 174,401 $ — State, municipalities and political subdivisions 758,908 — 758,908 — Foreign governments 622,440 847 621,593 — Asset-backed 5,216 — 5,216 — Commercial mortgage-backed 30,647 — 30,343 304 Residential mortgage-backed 1,069,100 — 1,069,100 — Corporate 8,085,227 — 8,035,417 49,810 Equity securities: Common stocks 39,879 39,197 682 — Non-redeemable preferred stocks 483,907 — 481,787 2,120 Short-term investments 442,611 346,187 b 96,424 c — Collateral held/pledged under securities agreements 95,291 92,089 b 3,202 c — Other investments 266,526 66,253 a 197,892 c 2,381 d Cash equivalents 767,105 765,638 b 1,467 c — Other assets 1,303 — 515 f 788 e Assets held in separate accounts 1,871,780 1,713,417 a 158,363 c — Total financial assets $ 14,714,341 $ 3,023,628 $ 11,635,310 $ 55,403 Financial Liabilities Other liabilities $ 94,842 $ 66,253 a $ 12 f $ 28,577 f Liabilities related to separate accounts 1,871,780 1,713,417 a 158,363 c — Total financial liabilities $ 1,966,622 $ 1,779,670 $ 158,375 $ 28,577 December 31, 2014 Total Level 1 Level 2 Level 3 Financial Assets Fixed maturity securities: United States Government and government agencies and authorities $ 176,842 $ — $ 176,842 $ — State, municipalities and political subdivisions 769,841 — 769,841 — Foreign governments 664,863 757 664,106 — Asset-backed 5,519 — 5,519 — Commercial mortgage-backed 46,016 — 45,613 403 Residential mortgage-backed 968,726 — 964,081 4,645 Corporate 8,631,367 — 8,527,092 104,275 Equity securities: Common stocks 37,950 37,266 684 — Non-redeemable preferred stocks 461,457 — 459,457 2,000 Short-term investments 345,246 266,980 b 78,266 c — Collateral held/pledged under securities agreements 74,985 67,783 b 7,202 c — Other investments 272,755 59,358 a 211,276 c 2,121 d Cash equivalents 683,142 635,804 b 47,338 c — Other assets 1,674 — 867 f 807 e Assets held in separate accounts 1,854,193 1,682,671 a 171,522 c — Total financial assets $ 14,994,576 $ 2,750,619 $ 12,129,706 $ 114,251 Financial Liabilities Other liabilities $ 84,660 $ 59,358 a $ 69 f $ 25,233 f Liabilities related to separate accounts 1,854,193 1,682,671 a 171,522 c — Total financial liabilities $ 1,938,853 $ 1,742,029 $ 171,591 $ 25,233 a. Mainly includes mutual funds. b. Mainly includes money market funds. c. Mainly includes fixed maturity securities. d. Mainly includes fixed maturity securities and other derivatives. e. Mainly includes the Consumer Price Index Cap Derivatives (“CPI Caps”). f. Mainly includes other derivatives. There were no transfers between Level 1 and Level 2 financial assets during either period. However, there were transfers between Level 2 and Level 3 financial assets during the periods, which are reflected in the “Transfers in” and “Transfers out” columns below. Transfers between Level 2 and Level 3 most commonly occur from changes in the availability of observable market information and re-evaluation of the observability of pricing inputs. Any remaining unpriced securities are submitted to independent brokers who provide non-binding broker quotes or are priced by other qualified sources. The following tables summarize the change in balance sheet carrying value associated with Level 3 financial assets and liabilities carried at fair value during the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, 2015 Balance, beginning of period Total (losses) gains (realized/ unrealized) included in earnings (1) Net unrealized gains (losses) included in other comprehensive income (2) Purchases Sales Transfers out (3) Balance, end of period Financial Assets Fixed Maturity Securities Commercial mortgage-backed $ 354 $ — $ (3 ) $ — $ (47 ) $ — $ 304 Corporate 100,990 576 (2,026 ) 6,523 (3,476 ) (52,777 ) 49,810 Equity Securities Non-redeemable preferred stocks 2,060 — 60 — — — 2,120 Other investments 2,460 (33 ) (11 ) — (35 ) — 2,381 Other assets 944 (156 ) — — — — 788 Financial Liabilities Other liabilities (26,181 ) (2,473 ) — 77 — — (28,577 ) Total level 3 assets and liabilities $ 80,627 $ (2,086 ) $ (1,980 ) $ 6,600 $ (3,558 ) $ (52,777 ) $ 26,826 Three Months Ended June 30, 2014 Balance, beginning of period Total (losses) gains (realized/ unrealized) included in earnings (1) Net unrealized gains (losses) included in other comprehensive income (2) Purchases Sales Transfers out (3) Balance, end of period Financial Assets Fixed Maturity Securities Foreign governments $ 16,873 $ — $ — $ — $ — $ (16,873 ) $ — Commercial mortgage-backed 550 — (4 ) — (43 ) — 503 Corporate 108,213 (43 ) 920 9,941 (2,204 ) — 116,827 Equity Securities Non-redeemable preferred stocks 5,714 — 161 — — (1,776 ) 4,099 Other investments 3,060 (420 ) 5 — (30 ) — 2,615 Other assets 2,300 (32 ) — — — — 2,268 Financial Liabilities Other liabilities (23,045 ) (115 ) — — — — (23,160 ) Total level 3 assets and liabilities $ 113,665 $ (610 ) $ 1,082 $ 9,941 $ (2,277 ) $ (18,649 ) $ 103,152 Six Months Ended June 30, 2015 Balance, beginning of period Total (losses) gains (realized/ unrealized) included in earnings (1) Net unrealized gains (losses) included in other comprehensive income (2) Purchases Sales Transfers in (3) Transfers out (3) Balance, end of period Financial Assets Fixed Maturity Securities Commercial mortgage- backed $ 403 $ — $ (6 ) $ — $ (93 ) $ — $ — $ 304 Residential mortgage- backed 4,645 — — — — — (4,645 ) — Corporate 104,275 568 (1,146 ) 6,523 (5,631 ) 2,130 (56,909 ) 49,810 Equity Securities Non-redeemable preferred stocks 2,000 — 120 — — — — 2,120 Other investments 2,121 95 (15 ) — (56 ) 236 — 2,381 Other assets 807 (19 ) — — — — — 788 Financial Liabilities Other liabilities (25,233 ) (3,421 ) — 77 — — — (28,577 ) Total level 3 assets and liabilities $ 89,018 $ (2,777 ) $ (1,047 ) $ 6,600 $ (5,780 ) $ 2,366 $ (61,554 ) $ 26,826 Six Months Ended June 30, 2014 Balance, beginning of period Total (losses) gains (realized/ unrealized) included in earnings (1) Net unrealized (losses) gains included in other comprehensive income (2) Purchases Sales Transfers out (3) Balance, end of period Financial Assets Fixed Maturity Securities States, municipalities and political subdivisions $ 22,657 $ — $ — $ — $ — $ (22,657 ) $ — Foreign governments 16,857 (2 ) 18 — — (16,873 ) — Commercial mortgage-backed 598 — (9 ) — (86 ) — 503 Residential mortgage-backed 4,167 — — — — (4,167 ) — Corporate 115,344 55 4,126 9,941 (5,283 ) (7,356 ) 116,827 Equity Securities Non-redeemable preferred stocks 7,510 328 (133 ) — (1,830 ) (1,776 ) 4,099 Other investments 4,171 (1,515 ) 9 — (50 ) — 2,615 Other assets 2,491 (223 ) — — — — 2,268 Financial Liabilities Other liabilities (20,330 ) 1,170 — (4,000 ) — — (23,160 ) Total level 3 assets and liabilities $ 153,465 $ (187 ) $ 4,011 $ 5,941 $ (7,249 ) $ (52,829 ) $ 103,152 (1) Included as part of net realized gains on investments in the consolidated statement of operations. (2) Included as part of change in unrealized gains on securities in the consolidated statement of comprehensive income. (3) Transfers are primarily attributable to changes in the availability of observable market information and re-evaluation of the observability of pricing inputs. Three different valuation techniques can be used in determining fair value for financial assets and liabilities: the market, income or cost approaches. The three valuation techniques described in the fair value measurements and disclosures guidance are consistent with generally accepted valuation methodologies. The market approach valuation techniques use prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. When possible, quoted prices (unadjusted) in active markets are used as of the period-end date (such as for mutual funds and money market funds). Otherwise, the Company uses valuation techniques consistent with the market approach including matrix pricing and comparables. Matrix pricing is a mathematical technique employed principally to value debt securities without relying exclusively on quoted prices for those securities but, rather, relying on the securities’ relationship to other benchmark quoted securities. Market approach valuation techniques often use market multiples derived from a set of comparables. Multiples might lie in ranges with a different multiple for each comparable. The selection of where within the range the appropriate multiple falls requires judgment, considering both qualitative and quantitative factors specific to the measurement. Income approach valuation techniques convert future amounts, such as cash flows or earnings, to a single present amount, or a discounted amount. These techniques rely on current market expectations of future amounts as of the period-end date. Examples of income approach valuation techniques include present value techniques, option-pricing models, binomial or lattice models that incorporate present value techniques and the multi-period excess earnings method. Cost approach valuation techniques are based upon the amount that would be required to replace the service capacity of an asset at the period-end date, or the current replacement cost. That is, from the perspective of a market participant (seller), the price that would be received for the asset is determined based on the cost to a market participant (buyer) to acquire or construct a substitute asset of comparable utility, adjusted for obsolescence. While not all three approaches are applicable to all financial assets or liabilities, where appropriate, the Company may use one or more valuation techniques. For all the classes of financial assets and liabilities included in the above hierarchy, excluding the CPI Caps and certain privately placed corporate bonds, the Company generally uses the market valuation technique. For certain privately placed corporate bonds, the CPI Caps and certain derivatives, the Company generally uses the income valuation technique. For the periods ended June 30, 2015 and December 31, 2014, the application of the valuation technique applied to the Company’s classes of financial assets and liabilities has been consistent. Level 1 Securities The Company’s investments and liabilities classified as Level 1 as of June 30, 2015 and December 31, 2014, consisted of mutual funds and money market funds, foreign government fixed maturities and common stocks that are publicly listed and/or actively traded in an established market. Level 2 Securities The Company values Level 2 securities using various observable market inputs obtained from a pricing service. The pricing service prepares estimates of fair value measurements for our Level 2 securities using proprietary valuation models based on techniques such as matrix pricing which include observable market inputs. The fair value measurements and disclosures guidance defines observable market inputs as the assumptions market participants would use in pricing the asset or liability developed on market data obtained from sources independent of the Company. The extent of the use of each observable market input for a security depends on the type of security and the market conditions at the balance sheet date. Depending on the security, the priority of the use of observable market inputs may change as some observable market inputs may not be relevant or additional inputs may be necessary. The Company uses the following observable market inputs (“standard inputs”), listed in the approximate order of priority, in the pricing evaluation of Level 2 securities: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research data. Further details for Level 2 investment types follow: United States Government and government agencies and authorities: U.S. government and government agencies and authorities securities are priced by our pricing service utilizing standard inputs. Included in this category are U.S. Treasury securities which are priced using vendor trading platform data in addition to the standard inputs. State, municipalities and political subdivisions: State, municipalities and political subdivisions securities are priced by our pricing service using material event notices and new issue data inputs in addition to the standard inputs. Foreign governments: Foreign government securities are primarily fixed maturity securities denominated in Canadian dollars which are priced by our pricing service using standard inputs. The pricing service also evaluates each security based on relevant market information including relevant credit information, perceived market movements and sector news. Commercial mortgage-backed, residential mortgage-backed and asset-backed: Commercial mortgage-backed, residential mortgage-backed and asset-backed securities are priced by our pricing service using monthly payment information and collateral performance information in addition to the standard inputs. Additionally, commercial mortgage-backed securities and asset-backed securities utilize new issue data while residential mortgage-backed securities utilize vendor trading platform data. Corporate: Corporate securities are priced by our pricing service using standard inputs. Non-investment grade securities within this category are priced by our pricing service using observations of equity and credit default swap curves related to the issuer in addition to the standard inputs. Certain privately placed corporate bonds are priced by a non-pricing service source using a model with observable inputs including, but not limited to, the credit rating, credit spreads, sector add-ons, and issuer specific add-ons. Non-redeemable preferred stocks: Non-redeemable preferred stocks are priced by our pricing service using observations of equity and credit default swap curves related to the issuer in addition to the standard inputs. Short-term investments, collateral held/pledged under securities agreements, other investments, cash equivalents, and assets/liabilities held in separate accounts: To price the fixed maturity securities in these categories, the pricing service utilizes the standard inputs. Valuation models used by the pricing service can change period to period, depending on the appropriate observable inputs that are available at the balance sheet date to price a security. When market observable inputs are unavailable to the pricing service, the remaining unpriced securities are submitted to independent brokers who provide non-binding broker quotes or are priced by other qualified sources. If the Company cannot corroborate the non-binding broker quotes with Level 2 inputs, these securities are categorized as Level 3 securities. Level 3 Securities The Company’s investments classified as Level 3 as of June 30, 2015 and December 31, 2014 consisted of fixed maturity and equity securities and derivatives. All of the Level 3 fixed maturity and equity securities are priced using non-binding broker quotes which cannot be corroborated with Level 2 inputs. Of our total Level 3 fixed maturity and equity securities, $4,714 and $63,614 were priced by a pricing service using single broker quotes due to insufficient information to provide an evaluated price as of June 30, 2015 and December 31, 2014, respectively. The single broker quotes are provided by market makers or broker-dealers who are recognized as market participants in the markets in which they are providing the quotes. The remaining $47,900 and $47,923 were priced internally using independent and non-binding broker quotes as of June 30, 2015 and December 31, 2014, respectively. The inputs factoring into the broker quotes include trades in the actual bond being priced, trades of comparable bonds, quality of the issuer, optionality, structure and liquidity. Significant changes in interest rates, issuer credit, liquidity, and overall market conditions would result in a significantly lower or higher broker quote. The prices received from both the pricing service and internally are reviewed for reasonableness by management and if necessary, management works with the pricing service or broker to further understand how they developed their price. Further details on Level 3 derivative investment types follow: Other investments and other liabilities: The Company prices swaptions using a Black-Scholes pricing model incorporating third-party market data, including swap volatility data. The Company prices credit default swaps using non-binding quotes provided by market makers or broker-dealers who are recognized as market participants. Inputs factored into the non-binding quotes include trades in the actual credit default swap which is being priced, trades in comparable credit default swaps, quality of the issuer, structure and liquidity. The net option related to the investment in Iké is valued using an income approach; specifically, a Monte Carlo simulation option pricing model. The inputs to the model include, but are not limited to, the projected normalized earnings before interest, tax, depreciation, and amortization (EBITDA) and free cash flow for the underlying asset, the discount rate, and the volatility of and the correlation between the normalized EBITDA and the value of the underlying asset. Significant increases (decreases) in the projected normalized EBITDA relative to the value of the underlying asset in isolation would result in a significantly higher (lower) fair value. Other assets: A non-pricing service source prices the CPI Cap derivatives using a model with inputs including, but not limited to, the time to expiration, the notional amount, the strike price, the forward rate, implied volatility and the discount rate. Management evaluates the following factors in order to determine whether the market for a financial asset is inactive. The factors include, but are not limited to: • There are few recent transactions, • Little information is released publicly, • The available prices vary significantly over time or among market participants, • The prices are stale (i.e., not current), and • The magnitude of the bid-ask spread. Illiquidity did not have a material impact in the fair value determination of the Company’s financial assets. The Company generally obtains one price for each financial asset. The Company performs a monthly analysis to assess if the evaluated prices represent a reasonable estimate of their fair value. This process involves quantitative and qualitative analysis and is overseen by investment and accounting professionals. Examples of procedures performed include, but are not limited to, initial and on-going review of pricing service methodologies, review of the prices received from the pricing service, review of pricing statistics and trends, and comparison of prices for certain securities with two different appropriate price sources for reasonableness. Following this analysis, the Company generally uses the best estimate of fair value based upon all available inputs. On infrequent occasions, a non-pricing service source may be more familiar with the market activity for a particular security than the pricing service. In these cases the price used is taken from the non-pricing service source. The pricing service provides information to indicate which securities were priced using market observable inputs so that the Company can properly categorize our financial assets in the fair value hierarchy. For the net option, the Company performs a periodic analysis to assess if the evaluated price represents a reasonable estimate of the fair value for the financial liability. This process involves quantitative and qualitative analysis overseen by finance and accounting professionals. Examples of procedures performed include, but are not limited to, initial and on-going review of the pricing methodology and review of the projection for the underlying asset including the probability distribution of possible scenarios. Disclosures for Non-Financial Assets Measured at Fair Value on a Non-Recurring Basis The Company also measures the fair value of certain assets on a non-recurring basis, generally on an annual basis, or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include commercial mortgage loans, goodwill and finite-lived intangible assets. The Company utilizes both the income and market valuation approaches to measure the fair value of its reporting units when required. Under the income approach, the Company determined the fair value of the reporting units considering distributable earnings, which were estimated from operating plans. The resulting cash flows were then discounted using a market participant weighted average cost of capital estimated for the reporting units. After discounting the future discrete earnings to their present value, the Company estimated the terminal value attributable to the years beyond the discrete operating plan period. The discounted terminal value was then added to the aggregate discounted distributable earnings from the discrete operating plan period to estimate the fair value of the reporting units. Under the market approach, the Company derived the fair value of the reporting units based on various financial multiples, including but not limited to: price to tangible book value of equity, price to estimated 2014 earnings and price to estimated 2015 earnings, which were estimated based on publicly available data related to comparable guideline companies. In addition, financial multiples were also estimated from publicly available purchase price data for acquisitions of companies operating in the insurance industry. The estimated fair value of the reporting units was more heavily weighted towards the income approach because in the current economic environment the earnings capacity of a business is generally considered the most important factor in the valuation of a business enterprise. This fair value determination was categorized as Level 3 (unobservable) in the fair value hierarchy. Fair Value of Financial Instruments Disclosures The financial instruments guidance requires disclosure of fair value information about financial instruments, for which it is practicable to estimate such fair value. Therefore, it requires fair value disclosure for financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets. However, this guidance excludes certain financial instruments, including those related to insurance contracts and those accounted for under the equity method and joint ventures guidance (such as real estate joint ventures). For the financial instruments included within the following financial assets and financial liabilities, the carrying value in the consolidated balance sheets equals or approximates fair value. Please refer to the Fair Value Inputs and Valuation Techniques for Financial Assets and Liabilities Disclosures section above for more information on the financial instruments included within the following financial assets and financial liabilities and the methods and assumptions used to estimate fair value: • Cash and cash equivalents • Fixed maturity securities • Equity securities • Short-term investments • Collateral held/pledged under securities agreements • Other investments • Other assets • Assets held in separate accounts • Other liabilities • Liabilities related to separate accounts In estimating the fair value of the financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets, the Company used the following methods and assumptions: Commercial mortgage loans: the fair values of mortgage loans are estimated using discounted cash flow models. The model inputs include mortgage amortization schedules and loan provisions, an internally developed credit spread based on the credit risk associated with the borrower and the U.S. Treasury spot curve. Mortgage loans with similar characteristics are aggregated for purposes of the calculations. Policy loans: the carrying value of policy loans reported in the consolidated balance sheets approximates fair value. Other investments: Other investments include Certified Capital Company tax credits, business debentures, credit tenant loans and social impact loans which are recorded at amortized cost. The carrying value reported for these investments approximates fair value. Due to the nature of these investments, there is a lack of liquidity in the primary market which results in the holdings being classified as Level 3. Policy reserves under investment products: the fair values for the Company’s policy reserves under investment products are determined using discounted cash flow analysis. Key inputs to the valuation include projections of policy cash flows, reserve run-off, market yields and risk margins. Funds held under reinsurance: the carrying value reported approximates fair value due to the short maturity of the instruments. Debt: the fair value of debt is based upon matrix pricing performed by the pricing service utilizing the standard inputs. Obligation under securities agreements: obligation under securities agreements is reported at the amount of cash received from the selected broker/dealers. The following tables disclose the carrying value, fair value amount and hierarchy level of the financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets: June 30, 2015 Fair Value Carrying Value Total Level 1 Level 2 Level 3 Financial Assets Commercial mortgage loans on real estate $ 1,267,033 $ 1,347,169 $ — $ — $ 1,347,169 Policy loans 45,453 45,453 45,453 — — Other investments 13,479 13,479 — — 13,479 Total financial assets $ 1,325,965 $ 1,406,101 $ 45,453 $ — $ 1,360,648 Financial Liabilities Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) $ 709,661 $ 741,411 $ — $ — $ 741,411 Funds withheld under reinsurance 95,632 95,632 95,632 — — Debt 1,171,229 1,263,453 — 1,263,453 — Obligations under securities agreements 95,289 95,289 95,289 — — Total financial liabilities $ 2,071,811 $ 2,195,785 $ 190,921 $ 1,263,453 $ 741,411 December 31, 2014 Fair Value Carrying Value Total Level 1 Level 2 Level 3 Financial Assets Commercial mortgage loans on real estate $ 1,272,616 $ 1,448,215 $ — $ — $ 1,448,215 Policy loans 48,272 48,272 48,272 — — Other investments 10,896 10,896 — — 10,896 Total financial assets $ 1,331,784 $ 1,507,383 $ 48,272 $ — $ 1,459,111 Financial Liabilities Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) $ 743,951 $ 764,949 $ — $ — $ 764,949 Funds withheld under reinsurance 75,161 75,161 75,161 — — Debt 1,171,079 1,296,139 — 1,296,139 — Obligations under securities agreements 95,986 95,986 95,986 — — Total financial liabilities $ 2,086,177 $ 2,232,235 $ 171,147 $ 1,296,139 $ 764,949 (1) Only the fair value of the Company’s policy reserves for investment-type contracts (those without significant mortality or morbidity risk) are reflected in the table above. Reinsurance Recoverables Credit Disclosures A key credit quality indicator for reinsurance is the A.M. Best financial strength ratings of the reinsurer. The A.M. Best ratings are an independent opinion of a reinsurer’s ability to meet ongoing obligations to policyholders. The A.M. Best ratings for new reinsurance agreements where there is material credit exposure are reviewed at the time of execution. The A.M. Best ratings for existing reinsurance agreements are reviewed on a periodic basis, at least annually. The A.M. Best ratings have not changed significantly since December 31, 2014. An allowance for doubtful accounts for reinsurance recoverables is recorded on the basis of periodic evaluations of balances due from reinsurers (net of collateral), reinsurer solvency, management’s experience and current economic conditions. The Company carries an allowance for doubtful accounts for reinsurance recoverables of $10,819 and $10,820 as of June 30, 2015 and December 31, 2014, respectively. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Instruments [Abstract] | |
Debt | Debt On March 28, 2013 , the Company issued two series of senior notes with an aggregate principal amount of $700,000 (the “2013 Senior Notes”). The Company received net proceeds of $698,093 representing the principal amount less the discount before offering expenses. The discount of $1,907 is being amortized over the life of the 2013 Senior Notes and is included as part of interest expense on the consolidated statements of operations. The first series is $350,000 in principal amount, bears interest at 2.50% per year and is payable in a single installment due March 15, 2018 and was issued at a 0.18% discount. The second series is $350,000 in principal amount, bears interest at 4.00% per year and is payable in a single installment due March 15, 2023 and was issued at a 0.37% discount. Interest on the 2013 Senior Notes is payable semi-annually on March 15 and September 15 of each year. The 2013 Senior Notes are unsecured obligations and rank equally with all of the Company’s other senior unsecured indebtedness. The Company may redeem each series of the 2013 Senior Notes in whole or in part at any time and from time to time before their maturity at the redemption price set forth in the Indenture. The 2013 Senior Notes are registered under the Securities Act of 1933, as amended. The interest expense incurred related to the 2013 Senior Notes was $5,747 and $5,745 for the three months ended June 30, 2015 and 2014, respectively, and $11,493 and $11,489 for the six months ended June 30, 2015 and 2014, respectively. There was $6,635 of accrued interest at both June 30, 2015 and 2014. The Company made interest payments on the 2013 Senior Notes of $11,375 on March 15, 2015 and 2014. In February 2004 , the Company issued two series of senior notes with an aggregate principal amount of $975,000 (the “2004 Senior Notes”). The Company received proceeds of $971,537 from this transaction, which represents the principal amount less the discount before offering expenses. The discount of $3,463 is being amortized over the life of the 2004 Senior Notes and is included as part of interest expense on the statements of operations. The first series was $500,000 in principal amount, issued at a 0.11% discount, bore interest at 5.63% per year and was repaid on February 18, 2014 . The second series is $475,000 in principal amount, bears interest at 6.75% per year and is payable in a single installment due February 15, 2034 and was issued at a 0.61% discount. Interest on the 2004 Senior Notes is payable semi-annually on February 15 and August 15 of each year. The 2004 Senior Notes are unsecured obligations and rank equally with all of the Company’s other senior unsecured indebtedness. The 2004 Senior Notes are not redeemable prior to maturity. All of the holders of the 2004 Senior Notes exchanged their notes in May 2004 for new notes registered under the Securities Act of 1933, as amended. The interest expense incurred related to the 2004 Senior Notes was $8,032 and $8,031 for the three months ended June 30, 2015 and 2014, respectively, and $16,063 and $19,352 for the six months ended June 30, 2015 and 2014, respectively. There was $12,023 of accrued interest at both June 30, 2015 and 2014. The Company made interest payments on the 2004 Senior Notes of $16,031 and $30,094 on February 15, 2015 and 2014, respectively. Credit Facility The Company’s commercial paper program requires the Company to maintain liquidity facilities either in an available amount equal to any outstanding notes from the commercial paper program or in an amount sufficient to maintain the ratings assigned to the notes issued from the commercial paper program. The Company’s subsidiaries do not maintain commercial paper or other borrowing facilities. This program is currently backed up by a $400,000 senior revolving credit facility, of which $395,800 was available at June 30, 2015, due to $4,200 of outstanding letters of credit related to this program. On September 16, 2014 , the Company entered into a five -year unsecured $400,000 revolving credit agreement (the “2014 Credit Facility”) with a syndicate of banks arranged by JP Morgan Chase Bank, N.A. and Wells Fargo, N.A. The 2014 Credit Facility replaced the Company's prior four -year $350,000 revolving credit facility (the "2011 Credit Facility"), which was entered into on September 21, 2011 and was scheduled to expire in September 2015 . The 2011 Credit Facility terminated upon the effectiveness of the 2014 Credit Facility. The 2014 Credit Facility provides for revolving loans and the issuance of multi-bank, syndicated letters of credit and/or letters of credit from a sole issuing bank in an aggregate amount of $400,000 and is available until September 2019 , provided the Company is in compliance with all covenants. The 2014 Credit Facility has a sublimit for letters of credit issued thereunder of $50,000 . The proceeds of these loans may be used for the Company’s commercial paper program or for general corporate purposes. The Company may increase the total amount available under the 2014 Credit Facility to $525,000 subject to certain conditions. No bank is obligated to provide commitments above their share of the $400,000 facility. The Company did not use the commercial paper program during the six months ended June 30, 2015 and 2014 and there were no amounts relating to the commercial paper program outstanding at June 30, 2015 and December 31, 2014. The Company made no borrowings using the 2014 Credit Facility and no loans are outstanding at June 30, 2015. The 2014 Credit Facility contains restrictive covenants and requires that the Company maintain certain specified minimum ratios and thresholds. Among others, these covenants include maintaining a maximum debt to capitalization ratio and a minimum consolidated adjusted net worth. At June 30, 2015, the Company was in compliance with all covenants, minimum ratios and thresholds. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Certain amounts included in the consolidated statements of comprehensive income are net of reclassification adjustments. The following tables summarize those reclassification adjustments (net of taxes): Three Months Ended June 30, 2015 Foreign currency translation adjustment Unrealized gains on securities OTTI Pension under- funding Accumulated other comprehensive income Balance at March 31, 2015 $ (193,662 ) $ 850,541 $ 25,700 $ (133,582 ) $ 548,997 Other comprehensive income (loss) before reclassifications 20,151 (229,606 ) (657 ) — (210,112 ) Amounts reclassified from accumulated other comprehensive income — 6,542 376 2,616 9,534 Net current-period other comprehensive income (loss) income 20,151 (223,064 ) (281 ) 2,616 (200,578 ) Balance at June 30, 2015 $ (173,511 ) $ 627,477 $ 25,419 $ (130,966 ) $ 348,419 Three Months Ended June 30, 2014 Foreign currency translation adjustment Unrealized gains on securities OTTI Pension under- funding Accumulated other comprehensive income Balance at March 31, 2014 $ (56,820 ) $ 697,104 $ 28,067 $ (84,870 ) $ 583,481 Other comprehensive income before reclassifications 37,883 136,137 764 — 174,784 Amounts reclassified from accumulated other comprehensive income — 3,797 (20 ) 2,030 5,807 Net current-period other comprehensive income 37,883 139,934 744 2,030 180,591 Balance at June 30, 2014 $ (18,937 ) $ 837,038 $ 28,811 $ (82,840 ) $ 764,072 Six Months Ended June 30, 2015 Foreign currency translation adjustment Unrealized gains on securities OTTI Pension under- funding Accumulated other comprehensive income Balance at December 31, 2014 $ (127,711 ) $ 793,082 $ 26,594 $ (136,198 ) $ 555,767 Other comprehensive (loss) income before reclassifications (45,800 ) (176,083 ) 120 (1 ) (221,764 ) Amounts reclassified from accumulated other comprehensive income — 10,478 (1,295 ) 5,233 14,416 Net current-period other comprehensive (loss) income (45,800 ) (165,605 ) (1,175 ) 5,232 (207,348 ) Balance at June 30, 2015 $ (173,511 ) $ 627,477 $ 25,419 $ (130,966 ) $ 348,419 Six Months Ended June 30, 2014 Foreign currency translation adjustment Unrealized gains on securities OTTI Pension under- funding Accumulated other comprehensive income Balance at December 31, 2013 $ (38,767 ) $ 526,071 $ 26,427 $ (86,901 ) $ 426,830 Other comprehensive income (loss) before reclassifications 19,830 296,159 2,404 — 318,393 Amounts reclassified from accumulated other comprehensive income — 14,808 (20 ) 4,061 18,849 Net current-period other comprehensive income (loss) 19,830 310,967 2,384 4,061 337,242 Balance at June 30, 2014 $ (18,937 ) $ 837,038 $ 28,811 $ (82,840 ) $ 764,072 The following tables summarize the reclassifications out of accumulated other comprehensive income for the three and six months ended June 30, 2015 and 2014: Details about accumulated other comprehensive income components Amount reclassified from accumulated other comprehensive income Affected line item in the statement where net income is presented Three Months Ended June 30, 2015 2014 Unrealized gains on securities $ 10,064 $ 5,841 Net realized gains on investments, excluding other-than-temporary impairment losses (3,522 ) (2,044 ) Provision for income taxes $ 6,542 $ 3,797 Net of tax OTTI $ 578 $ (30 ) Portion of net loss recognized in other comprehensive income, before taxes (202 ) 10 Provision for income taxes $ 376 $ (20 ) Net of tax Amortization of pension and postretirement unrecognized net periodic benefit cost: Amortization of prior service cost $ (25 ) $ (25 ) (1) Amortization of net loss 4,050 3,150 (1) 4,025 3,125 Total before tax (1,409 ) (1,094 ) Provision for income taxes $ 2,616 $ 2,031 Net of tax Total reclassifications for the period $ 9,534 $ 5,808 Net of tax Details about accumulated other comprehensive income components Amount reclassified from accumulated other comprehensive income Affected line item in the statement where net income is presented Six Months Ended June 30, 2015 2014 Unrealized gains on securities $ 16,120 $ 22,781 Net realized gains on investments, excluding other-than-temporary impairment losses (5,642 ) (7,973 ) Provision for income taxes 10,478 14,808 Net of tax OTTI (1,992 ) (30 ) Portion of net loss recognized in other comprehensive income, before taxes 697 10 Provision for income taxes $ (1,295 ) $ (20 ) Net of tax Amortization of pension and postretirement unrecognized net periodic benefit cost: Amortization of prior service cost $ (50 ) $ (50 ) (1) Amortization of net loss 8,100 6,300 (1) 8,050 6,250 Total before tax (2,817 ) (2,188 ) Provision for income taxes 5,233 4,062 Net of tax Total reclassifications for the period $ 14,416 $ 18,850 Net of tax (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 13 - Retirement and Other Employee Benefits for additional information. |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Share-based Compensation [Abstract] | |
Stock Based Compensation | Stock Based Compensation Long-Term Equity Incentive Plan Under the Assurant, Inc. Long-Term Equity Incentive Plan (“ALTEIP”), as amended and restated in May 2010, the Company is authorized to issue up to 5,300,000 new shares of the Company's common stock to employees, officers and non-employee directors. Under the ALTEIP, the Company may grant awards based on shares of its common stock, including stock options, stock appreciation rights (“SARs”), restricted stock (including performance shares), unrestricted stock, restricted stock units (“RSUs”), performance share units (“PSUs”) and dividend equivalents. All share-based grants are awarded under the ALTEIP. The Compensation Committee of the Board of Directors (the “Compensation Committee”) awards PSUs and RSUs annually. RSUs and PSUs are promises to issue actual shares of common stock at the end of a vesting period or performance period. The RSUs granted to employees under the ALTEIP were based on salary grade and performance and vest one-third each year over a three-year period. RSUs granted to non-employee directors also vest one-third each year over a three-year period, however, issuance of vested shares is deferred until separation from Board service. RSUs receive dividend equivalents in cash during the restricted period and do not have voting rights during the restricted period. PSUs accrue dividend equivalents during the performance period based on a target payout, and will be paid in cash at the end of the performance period based on the actual number of shares issued. The fair value of RSUs is estimated using the fair market value of a share of the Company’s common stock at the date of grant. The fair value of PSUs is estimated using the Monte Carlo simulation model and is described in further detail below. For the PSU portion of an award, the number of shares a participant will receive upon vesting is contingent upon the Company’s performance with respect to selected metrics, identified below, compared against a broad index of insurance companies and assigned a percentile ranking. These rankings are then averaged to determine the composite percentile ranking for the performance period. The payout levels can vary between 0% and 150% (maximum) of the target ( 100% ) ALTEIP award amount based on the Company’s level of performance against the selected metrics. PSU Performance Goals. The Compensation Committee established book value per share (“BVPS”) growth excluding AOCI, revenue growth and total stockholder return as the three performance measures for PSU awards. BVPS growth is defined as the year-over-year growth of the Company’s stockholders’ equity excluding AOCI divided by the number of fully diluted total shares outstanding at the end of the period. Revenue growth is defined as the year-over-year change in total revenues as disclosed in the Company’s annual statement of operations. Total stockholder return is defined as appreciation in Company stock plus dividend yield to stockholders. Payouts will be determined by measuring performance against the average performance of companies included in an insurance industry market index. From 2009 to 2013, the Company has used the A.M. Best U.S. Insurance Index to measure its relative performance ranking. In 2014, A.M. Best stopped publishing this index. As of January 1, 2014, the Company is using the S&P Total Market Index to measure the Company’s performance for all new and outstanding PSU awards. Consistent with adjustments made to the A.M. Best U.S. Insurance Index, adjustments will be made to the S&P Total Market Index to exclude companies with revenues of less than $1,000,000 or that are not in the insurance or managed healthcare Global Industry Classification Standard codes. In addition, companies within the Company’s compensation peer group, but not otherwise in the S&P Total Market Index, will be included. The adjusted S&P Total Market Index is substantially similar in composition to the previous A.M. Best U.S. Insurance Index. Under the ALTEIP, the Company’s Chief Executive Officer (“CEO”) is authorized by the Board of Directors to grant common stock, restricted stock and RSUs to employees other than the executive officers of the Company (as defined in Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). The Compensation Committee reviews these grants semi-annually. Restricted stock and RSUs granted under this program may have different vesting periods. Restricted Stock Units RSUs granted to employees and to non-employee directors were 54,576 and 42,470 for the three months ended June 30, 2015 and 2014, respectively, and 339,398 and 329,339 for the six months ended June 30, 2015 and 2014, respectively. The compensation expense recorded related to RSUs was $5,951 and $6,148 for the three months ended June 30, 2015 and 2014, respectively, and $10,459 and $10,977 for the six months ended June 30, 2015 and 2014, respectively. The related total income tax benefit was $2,082 and $2,149 for the three months ended June 30, 2015 and 2014, respectively, and $3,660 and $3,834 for the six months ended June 30, 2015 and 2014, respectively. The weighted average grant date fair value for RSUs granted during the six months ended June 30, 2015 and 2014 was $62.22 and $65.26 , respectively. As of June 30, 2015, there was $24,009 of unrecognized compensation cost related to outstanding RSUs. That cost is expected to be recognized over a weighted-average period of 1.41 years. The total fair value of RSUs vested during the three months ended June 30, 2015 and 2014 was $4,959 and $2,616 , respectively, and $24,474 and $30,824 for the six months ended June 30, 2015 and 2014, respectively. Performance Share Units No PSUs were granted to employees during the three months ended June 30, 2015 and 2014. PSUs granted to employees were 355,688 and 379,174 for the six months ended June 30, 2015 and 2014, respectively. The compensation expense recorded related to PSUs was $1,266 and $10,109 for the three months ended June 30, 2015 and 2014, respectively, and $2,332 and $13,562 for the six months ended June 30, 2015 and 2014, respectively. Portions of the compensation expense recorded during 2014 were reversed in 2015 since the Company’s level of actual performance as measured against pre-established performance goals had declined. The related total income tax benefit was $440 and $3,534 for the three months ended June 30, 2015 and 2014, respectively, and $813 and $4,736 for the six months ended June 30, 2015 and 2014, respectively. The weighted average grant date fair value for PSUs granted during the six months ended June 30, 2015 and 2014 was $61.82 and $64.93 , respectively. As of June 30, 2015, there was $24,834 of unrecognized compensation cost related to outstanding PSUs. That cost is expected to be recognized over a weighted-average period of 1.14 years. The fair value of PSUs with market conditions was estimated on the date of grant using a Monte Carlo simulation model, which utilizes multiple variables that determine the probability of satisfying the market condition stipulated in the award. Expected volatilities for awards issued during the six months ended June 30, 2015 and 2014 were based on the historical stock prices of the Company’s stock and peer insurance group. The expected term for grants issued during the six months ended June 30, 2015 and 2014 was assumed to equal the average of the vesting period of the PSUs. The risk-free rate was based on the U.S. Treasury yield curve in effect at the time of grant. Employee Stock Purchase Plan Under the Employee Stock Purchase Plan (“ESPP”), the Company is authorized to issue up to 5,000,000 new shares to employees who are participants in the ESPP. Eligible employees can purchase shares at a 10% discount applied to the lower of the closing price of the common stock on the first or last day of the offering period. In January 2015, the Company issued 65,302 shares at a discounted price of $59.65 for the offering period of July 1, 2014 through December 31, 2014. In January 2014, the Company issued 75,709 shares at a discounted price of $46.36 for the offering period of July 1, 2013 through December 31, 2013. In July 2015, the Company issued 65,320 shares at a discounted price of $60.30 for the offering period of January 1, 2015 through June 30, 2015. In July 2014, the Company issued 65,867 shares at a discounted price of $58.79 for the offering period of January 1, 2014 through June 30, 2014. The compensation expense recorded related to the ESPP was $316 and $292 for the three months ended June 30, 2015 and 2014, respectively, and $632 and $585 for the six months ended June 30, 2015 and 2014, respectively. The fair value of each award under the ESPP was estimated at the beginning of each offering period using the Black-Scholes option-pricing model. Expected volatilities are based on implied volatilities from traded options on the Company’s stock and the historical volatility of the Company’s stock. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The dividend yield is based on the current annualized dividend and share price as of the grant date. |
Stock Repurchase
Stock Repurchase | 6 Months Ended |
Jun. 30, 2015 | |
Class of Stock Disclosures [Abstract] | |
Stock Repurchase | Stock Repurchase The following table shows the shares repurchased during the periods indicated: Period in 2015 Number of Shares Repurchased Average Price Paid Per Share Total Number of Shares Repurchased as Part of Publicly Announced Programs January 529,100 $ 65.51 529,100 February 120,000 61.07 120,000 March 645,000 61.50 645,000 April 640,000 61.20 640,000 May 472,000 64.89 472,000 June 482,586 67.19 482,586 Total 2,888,686 $ 63.66 2,888,686 On November 15, 2013 , the Company’s Board of Directors authorized the Company to repurchase up to an additional $600,000 of its outstanding common stock, making the total remaining under the total repurchase authorization $752,436 as of that date. As of December 31, 2014, there was $486,670 remaining under the total repurchase authorization. During the six months ended June 30, 2015, the Company repurchased 2,888,686 shares of the Company’s outstanding common stock at a cost of $183,828 , exclusive of commissions, leaving $302,842 remaining under the total repurchase authorization at June 30, 2015. The timing and the amount of future repurchases will depend on market conditions, the Company's financial condition, results of operations, liquidity and other factors. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share The following table presents net income, the weighted average common shares used in calculating basic earnings per common share (“EPS”) and those used in calculating diluted EPS for each period presented below. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator Net income $ 32,789 $ 143,610 $ 82,833 $ 280,855 Deduct dividends paid (21,616 ) (20,753 ) (40,450 ) (38,933 ) Undistributed earnings $ 11,173 $ 122,857 $ 42,383 $ 241,922 Denominator Weighted average shares outstanding used in basic earnings per share 68,558,472 72,659,590 69,161,001 72,753,651 Incremental common shares from: PSUs 621,327 824,901 720,763 922,048 ESPPs 64,600 59,700 64,600 59,700 Weighted average shares used in diluted earnings per share calculations 69,244,399 73,544,191 69,946,364 73,735,399 Earnings per common share - Basic Distributed earnings $ 0.30 $ 0.27 $ 0.57 $ 0.52 Undistributed earnings 0.18 1.71 0.63 3.34 Net income $ 0.48 $ 1.98 $ 1.20 $ 3.86 Earnings per common share - Diluted Distributed earnings $ 0.30 $ 0.27 $ 0.57 $ 0.52 Undistributed earnings 0.17 1.68 0.61 3.29 Net income $ 0.47 $ 1.95 $ 1.18 $ 3.81 There were no anti-dilutive PSUs outstanding that were not included in the computation of diluted EPS under the treasury stock method during the three and six months ended June 30, 2015 and 2014. |
Retirement and Other Employee B
Retirement and Other Employee Benefits | 6 Months Ended |
Jun. 30, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Retirement and Other Employee Benefits | Retirement and Other Employee Benefits The components of net periodic benefit cost for the Company’s qualified pension benefits plan, nonqualified pension benefits plan and retirement health benefits plan for the three and six months ended June 30, 2015 and 2014 were as follows: Qualified Pension Benefits Nonqualified Pension Benefits (1) Retirement Health Benefits For the Three Months Ended June 30, For the Three Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 2015 2014 Service cost $ 9,750 $ 8,200 $ 1,125 $ 1,000 $ 625 $ 600 Interest cost 9,050 9,150 1,350 1,500 950 975 Expected return on plan assets (13,725 ) (12,350 ) — — (825 ) (775 ) Amortization of prior service cost — — 200 200 (225 ) (225 ) Amortization of net loss (gain) 3,325 2,275 725 925 — (50 ) Curtailment/settlement charge — — 400 — — — Net periodic benefit cost $ 8,400 $ 7,275 $ 3,800 $ 3,625 $ 525 $ 525 Qualified Pension Benefits Nonqualified Pension Benefits (1) Retirement Health Benefits For the Six Months Ended June 30, For the Six Months Ended June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 2015 2014 Service cost $ 19,500 $ 16,400 $ 2,250 $ 2,000 $ 1,250 $ 1,200 Interest cost 18,100 18,300 2,700 3,000 1,900 1,950 Expected return on plan assets (27,450 ) (24,700 ) — — (1,650 ) (1,550 ) Amortization of prior service cost — — 400 400 (450 ) (450 ) Amortization of net loss (gain) 6,650 4,550 1,450 1,850 — (100 ) Curtailment/settlement charge — — 800 — — — Net periodic benefit cost $ 16,800 $ 14,550 $ 7,600 $ 7,250 $ 1,050 $ 1,050 (1) The Company’s nonqualified plan is unfunded. The qualified pension benefits plan (the “Plan”) was under-funded by $8,374 and $28,956 (based on the fair value of Plan assets compared to the projected benefit obligation) at June 30, 2015 and December 31, 2014, respectively. This equates to a 99% and 97% funded status at June 30, 2015 and December 31, 2014, respectively. During the first six months of 2015, $10,750 in cash was contributed to the Plan. Due to the Plan's current funding status, no additional cash is expected to be contributed to the Plan over the remainder of 2015. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has five reportable segments, which are defined based on the nature of the products and services offered: Assurant Solutions, Assurant Specialty Property, Assurant Health, Assurant Employee Benefits, and Corporate & Other. Assurant Solutions provides mobile device protection products and services; debt protection administration; credit-related insurance; warranties and extended service products and related services for consumer electronics, appliances and vehicles; and pre-funded funeral insurance. Assurant Specialty Property provides lender-placed homeowners insurance; property preservation and valuation services; flood insurance; renters insurance and related products; and manufactured housing homeowners insurance. Assurant Health provides individual health and small employer group health insurance. Assurant Employee Benefits primarily provides group dental insurance, group disability insurance and group life insurance. Corporate & Other includes activities of the holding company, financing and interest expenses, net realized gains (losses) on investments and interest income earned from short-term investments held. Corporate & Other also includes the amortization of deferred gains associated with the sales of Fortis Financial Group and Long-Term Care through reinsurance agreements. Beginning January 1, 2015, segment assets for Assurant Solutions and Assurant Specialty Property include their proportionate share of goodwill. As previously announced, the Company concluded a comprehensive review of its portfolio and decided to sharpen its focus on specialty housing and lifestyle protection products and services. As a result, the Company will exit the health insurance market and is pursuing a sale of its Assurant Employee Benefits segment. See Note 4 for more information. The Company evaluates performance of the operating segments based on segment income (loss) after-tax excluding realized gains (losses) on investments. The Company determines reportable segments in a manner consistent with the way the Chief Operating Decision Maker makes operating decisions and assesses performance. The following tables summarize selected financial information by segment: Three Months Ended June 30, 2015 Solutions Specialty Property Health Employee Benefits Corporate & Other Consolidated Revenues Net earned premiums $ 752,604 $ 532,022 $ 584,443 $ 269,189 $ — $ 2,138,258 Net investment income 99,976 25,443 7,014 30,020 5,333 167,786 Net realized gains on investments — — — — 11,999 11,999 Amortization of deferred gain on disposal of businesses — — — — 3,242 3,242 Fees and other income 178,578 106,128 17,047 6,460 15,396 323,609 Total revenues 1,031,158 663,593 608,504 305,669 35,970 2,644,894 Benefits, losses and expenses Policyholder benefits 235,099 214,605 625,323 192,687 — 1,267,714 Amortization of deferred acquisition costs and value of business acquired 276,823 66,111 2,917 8,032 — 353,883 Underwriting, general and administrative expenses 437,917 252,495 158,608 88,241 32,233 969,494 Interest expense — — — — 13,778 13,778 Total benefits, losses and expenses 949,839 533,211 786,848 288,960 46,011 2,604,869 Segment income (loss) before provision (benefit) for income tax 81,319 130,382 (178,344 ) 16,709 (10,041 ) 40,025 Provision (benefit) for income taxes 20,504 42,848 (54,569 ) 5,441 (6,988 ) 7,236 Segment income (loss) after tax $ 60,815 $ 87,534 $ (123,775 ) $ 11,268 $ (3,053 ) Net income $ 32,789 Three Months Ended June 30, 2014 Solutions Specialty Property Health Employee Benefits Corporate & Other Consolidated Revenues Net earned premiums $ 770,319 $ 633,328 $ 505,257 $ 262,830 $ — $ 2,171,734 Net investment income 97,563 25,301 10,365 29,660 4,619 167,508 Net realized gains on investments — — — — 6,087 6,087 Amortization of deferred gain on disposal of businesses — — — — 3,644 3,644 Fees and other income 163,107 81,005 8,983 5,993 40 259,128 Total revenues 1,030,989 739,634 524,605 298,483 14,390 2,608,101 Benefits, losses and expenses Policyholder benefits 268,945 308,611 394,841 177,216 — 1,149,613 Amortization of deferred acquisition costs and value of business acquired 274,017 84,814 76 7,682 — 366,589 Underwriting, general and administrative expenses 401,343 242,797 122,177 90,711 27,308 884,336 Interest expense — — — — 13,776 13,776 Total benefits, losses and expenses 944,305 636,222 517,094 275,609 41,084 2,414,314 Segment income (loss) before provision (benefit) for income tax 86,684 103,412 7,511 22,874 (26,694 ) 193,787 Provision (benefit) for income taxes 27,151 35,102 10,013 8,442 (30,531 ) 50,177 Segment income (loss) after tax $ 59,533 $ 68,310 $ (2,502 ) $ 14,432 $ 3,837 Net income $ 143,610 Six Months Ended June 30, 2015 Solutions Specialty Property Health Employee Benefits Corporate & Other Consolidated Revenues Net earned premiums $ 1,507,081 $ 1,060,468 $ 1,194,185 $ 536,086 $ — $ 4,297,820 Net investment income 192,167 45,958 14,021 57,841 10,072 320,059 Net realized gains on investments — — — — 15,954 15,954 Amortization of deferred gain on disposal of businesses — — — — 6,500 6,500 Fees and other income 351,646 190,364 33,023 12,734 15,404 603,171 Total revenues 2,050,894 1,296,790 1,241,229 606,661 47,930 5,243,504 Benefits, losses and expenses Policyholder benefits 450,647 419,208 1,230,086 378,500 — 2,478,441 Amortization of deferred acquisition costs and value of business acquired 541,855 158,180 7,190 15,661 — 722,886 Underwriting, general and administrative expenses 897,201 476,107 287,786 179,580 50,729 1,891,403 Interest expense — — — — 27,556 27,556 Total benefits, losses and expenses 1,889,703 1,053,495 1,525,062 573,741 78,285 5,120,286 Segment income (loss) before provision (benefit) for income tax 161,191 243,295 (283,833 ) 32,920 (30,355 ) 123,218 Provision (benefit) for income taxes 46,017 80,674 (76,089 ) 11,504 (21,721 ) 40,385 Segment income (loss) after tax $ 115,174 $ 162,621 $ (207,744 ) $ 21,416 $ (8,634 ) Net income $ 82,833 As of June 30, 2015 Segment Assets (1): $ 14,583,286 $ 3,860,952 $ 1,492,149 $ 2,259,811 $ 8,645,884 $ 30,842,082 (1) As of December 31, 2014, all goodwill on Assurant's balance sheet was held in the Corporate & Other segment. Beginning January 1, 2015, goodwill is included on the respective segment balance sheets. Six Months Ended June 30, 2014 Solutions Specialty Property Health Employee Benefits Corporate & Other Consolidated Revenues Net earned premiums $ 1,522,986 $ 1,256,700 $ 928,021 $ 524,489 $ — $ 4,232,196 Net investment income 192,248 53,176 19,226 61,055 9,861 335,566 Net realized gains on investments — — — — 25,838 25,838 Amortization of deferred gain on disposal of businesses — — — — 7,304 7,304 Fees and other income 304,461 121,764 17,194 12,027 123 455,569 Total revenues 2,019,695 1,431,640 964,441 597,571 43,126 5,056,473 Benefits, losses and expenses Policyholder benefits 524,908 571,729 705,614 355,394 — 2,157,645 Amortization of deferred acquisition costs and value of business acquired 536,913 158,833 248 15,377 — 711,371 Underwriting, general and administrative expenses 796,743 450,248 243,409 181,948 55,228 1,727,576 Interest expense — — — — 30,841 30,841 Total benefits, losses and expenses 1,858,564 1,180,810 949,271 552,719 86,069 4,627,433 Segment income (loss) before provision (benefit) for income tax 161,131 250,830 15,170 44,852 (42,943 ) 429,040 Provision (benefit) for income taxes 52,129 84,779 24,741 16,505 (29,969 ) 148,185 Segment income (loss) after tax $ 109,002 $ 166,051 $ (9,571 ) $ 28,347 $ (12,974 ) Net income $ 280,855 As of December 31, 2014 Segment Assets: Segment assets, excluding goodwill $ 14,260,609 $ 4,010,393 $ 1,210,615 $ 2,242,145 $ 8,997,465 $ 30,721,227 Goodwill 841,239 Total assets $ 31,562,466 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, letters of credit are issued primarily to support reinsurance arrangements in which the Company is the reinsurer. These letters of credit are supported by commitments under which the Company is required to indemnify the financial institution issuing the letter of credit if the letter of credit is drawn. The Company had $20,670 and $17,871 of letters of credit outstanding as of June 30, 2015 and December 31, 2014, respectively. On January 16, 2015, the State of Indiana issued an examination warrant to the Company's subsidiary, American Security Insurance Company and initiated a multistate targeted market conduct examination regarding the Company’s lender-placed insurance products. At present, 46 states are participating in the examination. The Company continues to respond to and cooperate with the State of Indiana, the National Association of Insurance Commissioners (the "NAIC") and other regulators regarding its lender-placed insurance business. In addition, as previously disclosed, the Company is involved in a variety of litigation relating to its current and past business operations and may from time to time become involved in other such actions. In particular, the Company is a defendant in class actions in a number of jurisdictions regarding its lender-placed insurance programs. These cases allege a variety of claims under a number of legal theories. The plaintiffs seek premium refunds and other relief. The Company continues to defend itself vigorously in these class actions. The Company has accrued an estimated loss for this litigation. We have participated and may participate in settlements on terms that we consider reasonable given the strength of our defenses and other factors. However, the possible loss or range of loss resulting from such litigation and regulatory proceedings, if any, in excess of the amounts accrued is inherently unpredictable and uncertain. Consequently, no estimate can be made of any possible loss or range of loss in excess of the accrual. In July 2007 an Assurant subsidiary acquired Swansure Group, a privately held U.K. company, which owned D&D Homecare Limited (“D&D”). D&D was a packager of mortgages and certain insurance products, including Payment Protection Insurance (“PPI”) policies that, for a period of time, were underwritten by an Assurant subsidiary and sold by various alleged agents, including Carrington Carr Home Finance Limited (“CCHFL”), which is now in administration. In early 2014, as a result of consumer complaints alleging that CCHFL missold certain D&D-packaged PPI policies between August 8, 2003 and November 1, 2004, the U.K. Financial Ombudsman Service (“FOS”) requested that an Assurant subsidiary, Assurant Intermediary Limited (“AIL”), review complaints relating to CCHFL’s sale of such PPI policies. AIL is cooperating with the FOS. The possible loss or range of loss resulting from such litigation and regulatory proceedings, if any, in excess of the amounts accrued is inherently unpredictable and uncertain. Consequently, no estimate can be made of any possible loss or range of loss in excess of the accrual. Although the Company cannot predict the outcome of any action, it is possible that such outcome could have a material adverse effect on the Company’s consolidated results of operations or cash flows for an individual reporting period. However, based on currently available information, management does not believe that the pending matters are likely to have a material adverse effect, individually or in the aggregate, on the Company’s financial condition. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the three months ended June 30, 2015, the Company recorded a net tax benefit of $8,448 in the Assurant Solutions segment, which decreased the consolidated effective tax rate by 686 basis points. The tax benefit was primarily a result of an international reorganization. During the three months ended June 30, 2014, the Company converted the Canadian branch operations of certain U.S. companies to foreign corporate entities. This conversion is an election for U.S. tax classification purposes only and requires the Company to record deferred taxes at local tax rates. As a result of this conversion, the Company recorded a one-time benefit of $20,753 , which is reflected in the provision for income taxes line item in the consolidated statements of operations. In addition, during the six months ended June 30, 2014, the Company increased its estimated amount of compensation expenses that are non-tax deductible under the Affordable Care Act. Due to this change in estimate, the Company recorded $5,749 of income tax expense in the Assurant Health segment, which increased the consolidated effective tax rate by 134 basis points. |
Catastrophe Bond Program
Catastrophe Bond Program | 6 Months Ended |
Jun. 30, 2015 | |
Insurance [Abstract] | |
Catastrophe Bond Program | Catastrophe Bond Program On June 26, 2013, certain of the Company's subsidiaries ("the Subsidiaries") entered into three reinsurance agreements with Ibis Re II Ltd. ("Ibis Re II") providing up to $185,000 of reinsurance coverage for protection against losses over a three -year period from individual hurricane events in Hawaii, Puerto Rico, and along the Gulf and Eastern Coasts of the United States. The agreements expire in June 2016 . Ibis Re II financed the property catastrophe reinsurance coverage by issuing $185,000 in catastrophe bonds to unrelated investors (the “Series 2013-1 Notes”). The $185,000 of coverage represents approximately 14% of the expected first event coverage (net of reimbursements of the Florida Hurricane Catastrophe Fund) purchased by the Company in excess of the Company’s anticipated retention. Under the terms of these reinsurance agreements, the Subsidiaries are obligated to pay annual reinsurance premiums to Ibis Re II for the reinsurance coverage. The reinsurance agreements with Ibis Re II use a dual trigger that is based upon an index created by applying predetermined percentages to insured industry losses in each state in the covered area as reported by an independent party and the Subsidiaries’ covered losses incurred. Reinsurance contracts that have a separate, pre-identified variable (e.g., a loss-based index) are accounted for as reinsurance if certain conditions are met. In the case of the reinsurance agreements with Ibis Re II, these conditions were met, thus the Company accounted for them as reinsurance in accordance with applicable accounting guidance for reinsurance contracts. Amounts payable to the Subsidiaries under the reinsurance agreements will be determined by the index-based losses, which are designed to approximate the Subsidiaries’ actual losses from any covered event. The amount of actual losses and index losses from any covered event may differ. For each covered event, Ibis Re II pays the Subsidiaries the lesser of the covered index-based losses or the Subsidiaries’ actual losses. The principal amount of the catastrophe bonds will be reduced by any amounts paid to the Subsidiaries under the reinsurance agreements. The Subsidiaries have not incurred any losses subject to the reinsurance agreements since their inception. As of June 30, 2015 and 2014, the Company had no t ceded any losses to Ibis Re II. As with any reinsurance agreement, there is credit risk associated with collecting amounts due from reinsurers. With regard to the Series 2013-1 Notes, the credit risk is mitigated by reinsurance trust accounts for each tranche within the Series. The reinsurance trust accounts have been funded by Ibis Re II with money market funds that invest solely in direct government obligations backed by the U.S. government with maturities of no more than 13 months. The money market funds must have a principal stability rating of at least AAA by Standard & Poor’s. As a result of an evaluation of the reinsurance agreements with Ibis Re II, the Company concluded that Ibis Re II is a variable interest entity (“VIE”). However, while Ibis Re II is a VIE, the Company concluded that it does not have a significant variable interest in Ibis Re II as the variability in results, caused by the reinsurance agreements, is expected to be absorbed entirely by the bondholders and the Company is not entitled to any residual amounts. Accordingly, the Company is not the primary beneficiary of Ibis Re II and does not consolidate the entities in the Company’s financial statements. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, these statements do not include all of the information and footnotes required by GAAP for complete financial statements. The interim financial data as of June 30, 2015 and December 31, 2014 and for the three and six months ended June 30, 2015 and 2014 is unaudited; in the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. The unaudited interim consolidated financial statements include the accounts of the Company and all of its wholly owned subsidiaries. All inter-company transactions and balances are eliminated in consolidation. The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, and the rules and regulations thereunder (together, the “Affordable Care Act”) introduced new and significant premium stabilization programs in 2014. These programs require the Company to record amounts to our consolidated financial statements based on assumptions and estimates that could materially change as experience develops. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. |
Recent Accounting Pronouncements Not Yet Adopted | In April 2015, the Financial Accounting Standards Board (“FASB”) issued amended guidance on presentation of debt issuance costs. This amended guidance requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs is not affected by the amendments. The amended guidance is effective for interim and annual periods beginning after December 15, 2015. Therefore, the Company is required to adopt the guidance on January 1, 2016. Early adoption of the amended guidance is permitted for financial statements that have not been previously issued. An entity should apply the amended guidance on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. The Company does not expect the adoption of this presentation guidance to impact the Company’s financial position or results of operations. In February 2015, the FASB issued new consolidation guidance that affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The new guidance eliminates specialized guidance for limited partnerships and similar legal entities, and removes the indefinite deferral for certain investment funds. The new guidance is effective for interim and annual periods beginning after December 15, 2015. Therefore, the Company is required to adopt the guidance on January 1, 2016. Early adoption is permitted, including adoption in an interim period. The new guidance may be applied retrospectively or through a cumulative effect adjustment to retained earnings as of the beginning of the year of adoption. The Company is evaluating the requirements of this new consolidation guidance and the potential impact on the Company’s financial position and results of operations. In May 2014, the FASB issued amended guidance on revenue recognition. The amended guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. Insurance contracts are within the scope of other standards and therefore are specifically excluded from the scope of the amended revenue recognition guidance. The core principle of the amended guidance is that an entity recognizes revenue to depict the transfer of promised 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. To achieve the core principle, the entity applies a five step process outlined in the amended guidance. The amended guidance also includes a cohesive set of disclosure requirements. The amended guidance is effective for interim and annual periods beginning after December 15, 2016 and early adoption is not permitted. Therefore, the Company is required to adopt the guidance on January 1, 2017. An entity can choose to apply the amended guidance using either the full retrospective approach or a modified retrospective approach. The Company is evaluating the requirements of the revenue recognition guidance as it relates to its non-insurance contract revenue and the potential impact on the Company’s financial position and results of operations. |
Reorganization (Tables)
Reorganization (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Information Regarding Exit-Related Charges | The following table presents information regarding exit-related charges: Premium deficiency reserves Severance and retention Long-lived asset impairments and contract and lease terminations Other transaction costs Total amount expected to be incurred $ 122,488 $ 93,500 $ 31,000 $ 6,000 The amount incurred in the period $ 122,488 $ 14,435 $ 22,307 $ 4,996 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments [Abstract] | |
Amortized Cost, Gross Unrealized Gains and Losses, Fair Value and OTTI | The following tables show the cost or amortized cost, gross unrealized gains and losses, fair value and other-than-temporary impairment (“OTTI”) of our fixed maturity and equity securities as of the dates indicated: June 30, 2015 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI (a) Fixed maturity securities: United States government and government agencies and authorities $ 170,201 $ 4,576 $ (376 ) $ 174,401 $ — States, municipalities and political subdivisions 705,878 54,635 (1,605 ) 758,908 — Foreign governments 549,039 75,012 (1,611 ) 622,440 — Asset-backed 3,762 1,578 (124 ) 5,216 1,478 Commercial mortgage-backed 29,974 673 — 30,647 — Residential mortgage-backed 1,018,385 55,042 (4,327 ) 1,069,100 16,472 Corporate 7,321,135 798,462 (34,370 ) 8,085,227 21,157 Total fixed maturity securities $ 9,798,374 $ 989,978 $ (42,413 ) $ 10,745,939 $ 39,107 Equity securities: Common stocks $ 24,119 $ 15,772 $ (12 ) $ 39,879 $ — Non-redeemable preferred stocks 436,947 48,991 (2,031 ) 483,907 — Total equity securities $ 461,066 $ 64,763 $ (2,043 ) $ 523,786 $ — December 31, 2014 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI (a) Fixed maturity securities: United States government and government agencies and authorities $ 172,070 $ 5,201 $ (429 ) $ 176,842 $ — States, municipalities and political subdivisions 703,167 67,027 (353 ) 769,841 — Foreign governments 591,981 74,339 (1,457 ) 664,863 — Asset-backed 3,917 1,680 (78 ) 5,519 1,570 Commercial mortgage-backed 44,907 1,109 — 46,016 — Residential mortgage-backed 911,004 58,876 (1,154 ) 968,726 17,732 Corporate 7,621,054 1,026,927 (16,614 ) 8,631,367 21,612 Total fixed maturity securities $ 10,048,100 $ 1,235,159 $ (20,085 ) $ 11,263,174 $ 40,914 Equity securities: Common stocks $ 22,300 $ 15,651 $ (1 ) $ 37,950 $ — Non-redeemable preferred stocks 412,575 50,975 (2,093 ) 461,457 — Total equity securities $ 434,875 $ 66,626 $ (2,094 ) $ 499,407 $ — (a) Represents the amount of OTTI recognized in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date |
Amortized Cost and Fair Value of Fixed Maturity Securities by Contractual Maturity | The cost or amortized cost and fair value of fixed maturity securities at June 30, 2015 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. Cost or Amortized Cost Fair Value Due in one year or less $ 307,598 $ 313,370 Due after one year through five years 1,995,950 2,110,987 Due after five years through ten years 2,280,879 2,382,011 Due after ten years 4,161,826 4,834,608 Total 8,746,253 9,640,976 Asset-backed 3,762 5,216 Commercial mortgage-backed 29,974 30,647 Residential mortgage-backed 1,018,385 1,069,100 Total $ 9,798,374 $ 10,745,939 |
Proceeds from Sales of Available-For-Sale Securities and the Gross Realized Gains and Gross Realized Losses | The following table summarizes the proceeds from sales of available-for-sale securities and the gross realized gains and gross realized losses that have been included in earnings as a result of those sales. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Proceeds from sales $ 804,476 $ 449,405 $ 1,356,989 $ 1,002,404 Gross realized gains 13,912 8,804 26,255 31,587 Gross realized losses 5,844 1,300 11,443 6,567 |
Net Realized Gains (Losses), Including Other-Than-Temporary Impairments | The following table sets forth the net realized gains (losses), including OTTI, recognized in the statement of operations as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net realized gains (losses) related to sales and other: Fixed maturity securities $ 6,746 $ 6,500 $ 12,259 $ 21,690 Equity securities 1,080 13 1,954 5,137 Other investments 4,173 (396 ) 4,311 (959 ) Total net realized gains related to sales and other 11,999 6,117 18,524 25,868 Net realized losses related to other-than-temporary impairments: Fixed maturity securities — (30 ) (2,570 ) (30 ) Total net realized losses related to other-than- temporary impairments — (30 ) (2,570 ) (30 ) Total net realized gains $ 11,999 $ 6,087 $ 15,954 $ 25,838 |
Credit Loss Impairments Recognized | The following table sets forth the amount of credit loss impairments recognized within the results of operations on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in AOCI, and the corresponding changes in such amounts. Three Months Ended June 30, 2015 2014 Balance, March 31, $ 36,057 $ 44,301 Additions for credit loss impairments recognized in the current period on securities previously impaired — 30 Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security (603 ) (2,163 ) Reductions for credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period (1,146 ) (2,920 ) Balance, June 30, $ 34,308 $ 39,248 Six Months Ended June 30, 2015 2014 Balance, January 1, $ 35,424 $ 45,278 Additions for credit loss impairments recognized in the current period on securities previously impaired — 30 Additions for credit loss impairments recognized in the current period on securities not previously impaired 2,570 — Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security (1,075 ) (2,645 ) Reductions for credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period (2,611 ) (3,415 ) Balance, June 30, $ 34,308 $ 39,248 |
Investment Category and Duration of Gross Unrealized Losses on Fixed Maturity Securities and Equity Securities | The investment category and duration of the Company’s gross unrealized losses on fixed maturity securities and equity securities at June 30, 2015 and December 31, 2014 were as follows: June 30, 2015 Less than 12 months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturity securities: United States Government and government agencies and authorities $ 48,420 $ (316 ) $ 8,549 $ (60 ) $ 56,969 $ (376 ) States, municipalities and political subdivisions 20,761 (634 ) 2,363 (971 ) 23,124 (1,605 ) Foreign governments 48,399 (319 ) 26,975 (1,292 ) 75,374 (1,611 ) Asset-backed — — 1,318 (124 ) 1,318 (124 ) Residential mortgage-backed 243,223 (3,936 ) 13,750 (391 ) 256,973 (4,327 ) Corporate 1,061,803 (32,266 ) 18,709 (2,104 ) 1,080,512 (34,370 ) Total fixed maturity securities $ 1,422,606 $ (37,471 ) $ 71,664 $ (4,942 ) $ 1,494,270 $ (42,413 ) Equity securities: Common stock $ 667 $ (12 ) $ — $ — $ 667 $ (12 ) Non-redeemable preferred stocks 78,449 (1,164 ) 12,461 (867 ) 90,910 (2,031 ) Total equity securities $ 79,116 $ (1,176 ) $ 12,461 $ (867 ) $ 91,577 $ (2,043 ) December 31, 2014 Less than 12 months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturity securities: United States Government and government agencies and authorities $ 34,551 $ (188 ) $ 21,488 $ (241 ) $ 56,039 $ (429 ) States, municipalities and political subdivisions 3,050 (282 ) 4,633 (71 ) 7,683 (353 ) Foreign governments 19,886 (67 ) 37,741 (1,390 ) 57,627 (1,457 ) Asset-backed — — 1,348 (78 ) 1,348 (78 ) Residential mortgage-backed 22,337 (71 ) 61,682 (1,083 ) 84,019 (1,154 ) Corporate 640,641 (13,132 ) 113,918 (3,482 ) 754,559 (16,614 ) Total fixed maturity securities $ 720,465 $ (13,740 ) $ 240,810 $ (6,345 ) $ 961,275 $ (20,085 ) Equity securities: Common stock $ — $ — $ 196 $ (1 ) $ 196 $ (1 ) Non-redeemable preferred stocks 8,844 (264 ) 24,784 (1,829 ) 33,628 (2,093 ) Total equity securities $ 8,844 $ (264 ) $ 24,980 $ (1,830 ) $ 33,824 $ (2,094 ) |
Loan-To-Value and Average Debt-Service Coverage Ratios | The following summarizes our loan-to-value and average debt-service coverage ratios as of the dates indicated: June 30, 2015 Loan-to-Value Carrying Value % of Gross Mortgage Loans Debt-Service Coverage Ratio 70% and less $ 1,171,935 92.3 % 1.95 71 – 80% 62,653 4.9 % 1.29 81 – 95% 35,844 2.8 % 1.04 Gross commercial mortgage loans 1,270,432 100 % 1.89 Less valuation allowance (3,399 ) Net commercial mortgage loans $ 1,267,033 December 31, 2014 Loan-to-Value Carrying Value % of Gross Mortgage Loans Debt-Service Coverage Ratio 70% and less $ 1,168,454 91.6 % 2.01 71 – 80% 73,762 5.8 % 1.26 81 – 95% 27,268 2.1 % 1.04 Greater than 95% 6,531 0.5 % 0.43 Gross commercial mortgage loans 1,276,015 100 % 1.94 Less valuation allowance (3,399 ) Net commercial mortgage loans $ 1,272,616 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value for Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014. The amounts presented below for Collateral held/pledged under securities agreements, Other investments, Cash equivalents, Other assets, Assets and Liabilities held in separate accounts and Other liabilities differ from the amounts presented in the consolidated balance sheets because only certain investments or certain assets and liabilities within these line items are measured at estimated fair value. Other investments are comprised of investments in the Assurant Investment Plan, American Security Insurance Company Investment Plan, Assurant Deferred Compensation Plan, a modified coinsurance arrangement and other derivatives. Other liabilities are comprised of investments in the Assurant Investment Plan and other derivatives. The fair value amount and the majority of the associated levels presented for Other investments and Assets and Liabilities held in separate accounts are received directly from third parties. June 30, 2015 Total Level 1 Level 2 Level 3 Financial Assets Fixed maturity securities: United States Government and government agencies and authorities $ 174,401 $ — $ 174,401 $ — State, municipalities and political subdivisions 758,908 — 758,908 — Foreign governments 622,440 847 621,593 — Asset-backed 5,216 — 5,216 — Commercial mortgage-backed 30,647 — 30,343 304 Residential mortgage-backed 1,069,100 — 1,069,100 — Corporate 8,085,227 — 8,035,417 49,810 Equity securities: Common stocks 39,879 39,197 682 — Non-redeemable preferred stocks 483,907 — 481,787 2,120 Short-term investments 442,611 346,187 b 96,424 c — Collateral held/pledged under securities agreements 95,291 92,089 b 3,202 c — Other investments 266,526 66,253 a 197,892 c 2,381 d Cash equivalents 767,105 765,638 b 1,467 c — Other assets 1,303 — 515 f 788 e Assets held in separate accounts 1,871,780 1,713,417 a 158,363 c — Total financial assets $ 14,714,341 $ 3,023,628 $ 11,635,310 $ 55,403 Financial Liabilities Other liabilities $ 94,842 $ 66,253 a $ 12 f $ 28,577 f Liabilities related to separate accounts 1,871,780 1,713,417 a 158,363 c — Total financial liabilities $ 1,966,622 $ 1,779,670 $ 158,375 $ 28,577 December 31, 2014 Total Level 1 Level 2 Level 3 Financial Assets Fixed maturity securities: United States Government and government agencies and authorities $ 176,842 $ — $ 176,842 $ — State, municipalities and political subdivisions 769,841 — 769,841 — Foreign governments 664,863 757 664,106 — Asset-backed 5,519 — 5,519 — Commercial mortgage-backed 46,016 — 45,613 403 Residential mortgage-backed 968,726 — 964,081 4,645 Corporate 8,631,367 — 8,527,092 104,275 Equity securities: Common stocks 37,950 37,266 684 — Non-redeemable preferred stocks 461,457 — 459,457 2,000 Short-term investments 345,246 266,980 b 78,266 c — Collateral held/pledged under securities agreements 74,985 67,783 b 7,202 c — Other investments 272,755 59,358 a 211,276 c 2,121 d Cash equivalents 683,142 635,804 b 47,338 c — Other assets 1,674 — 867 f 807 e Assets held in separate accounts 1,854,193 1,682,671 a 171,522 c — Total financial assets $ 14,994,576 $ 2,750,619 $ 12,129,706 $ 114,251 Financial Liabilities Other liabilities $ 84,660 $ 59,358 a $ 69 f $ 25,233 f Liabilities related to separate accounts 1,854,193 1,682,671 a 171,522 c — Total financial liabilities $ 1,938,853 $ 1,742,029 $ 171,591 $ 25,233 a. Mainly includes mutual funds. b. Mainly includes money market funds. c. Mainly includes fixed maturity securities. d. Mainly includes fixed maturity securities and other derivatives. e. Mainly includes the Consumer Price Index Cap Derivatives (“CPI Caps”). f. Mainly includes other derivatives. |
Change in Balance Sheet Carrying Value Associated with Level 3 Financial Assets and Liabilities Carried at Fair Value | The following tables summarize the change in balance sheet carrying value associated with Level 3 financial assets and liabilities carried at fair value during the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, 2015 Balance, beginning of period Total (losses) gains (realized/ unrealized) included in earnings (1) Net unrealized gains (losses) included in other comprehensive income (2) Purchases Sales Transfers out (3) Balance, end of period Financial Assets Fixed Maturity Securities Commercial mortgage-backed $ 354 $ — $ (3 ) $ — $ (47 ) $ — $ 304 Corporate 100,990 576 (2,026 ) 6,523 (3,476 ) (52,777 ) 49,810 Equity Securities Non-redeemable preferred stocks 2,060 — 60 — — — 2,120 Other investments 2,460 (33 ) (11 ) — (35 ) — 2,381 Other assets 944 (156 ) — — — — 788 Financial Liabilities Other liabilities (26,181 ) (2,473 ) — 77 — — (28,577 ) Total level 3 assets and liabilities $ 80,627 $ (2,086 ) $ (1,980 ) $ 6,600 $ (3,558 ) $ (52,777 ) $ 26,826 Three Months Ended June 30, 2014 Balance, beginning of period Total (losses) gains (realized/ unrealized) included in earnings (1) Net unrealized gains (losses) included in other comprehensive income (2) Purchases Sales Transfers out (3) Balance, end of period Financial Assets Fixed Maturity Securities Foreign governments $ 16,873 $ — $ — $ — $ — $ (16,873 ) $ — Commercial mortgage-backed 550 — (4 ) — (43 ) — 503 Corporate 108,213 (43 ) 920 9,941 (2,204 ) — 116,827 Equity Securities Non-redeemable preferred stocks 5,714 — 161 — — (1,776 ) 4,099 Other investments 3,060 (420 ) 5 — (30 ) — 2,615 Other assets 2,300 (32 ) — — — — 2,268 Financial Liabilities Other liabilities (23,045 ) (115 ) — — — — (23,160 ) Total level 3 assets and liabilities $ 113,665 $ (610 ) $ 1,082 $ 9,941 $ (2,277 ) $ (18,649 ) $ 103,152 Six Months Ended June 30, 2015 Balance, beginning of period Total (losses) gains (realized/ unrealized) included in earnings (1) Net unrealized gains (losses) included in other comprehensive income (2) Purchases Sales Transfers in (3) Transfers out (3) Balance, end of period Financial Assets Fixed Maturity Securities Commercial mortgage- backed $ 403 $ — $ (6 ) $ — $ (93 ) $ — $ — $ 304 Residential mortgage- backed 4,645 — — — — — (4,645 ) — Corporate 104,275 568 (1,146 ) 6,523 (5,631 ) 2,130 (56,909 ) 49,810 Equity Securities Non-redeemable preferred stocks 2,000 — 120 — — — — 2,120 Other investments 2,121 95 (15 ) — (56 ) 236 — 2,381 Other assets 807 (19 ) — — — — — 788 Financial Liabilities Other liabilities (25,233 ) (3,421 ) — 77 — — — (28,577 ) Total level 3 assets and liabilities $ 89,018 $ (2,777 ) $ (1,047 ) $ 6,600 $ (5,780 ) $ 2,366 $ (61,554 ) $ 26,826 Six Months Ended June 30, 2014 Balance, beginning of period Total (losses) gains (realized/ unrealized) included in earnings (1) Net unrealized (losses) gains included in other comprehensive income (2) Purchases Sales Transfers out (3) Balance, end of period Financial Assets Fixed Maturity Securities States, municipalities and political subdivisions $ 22,657 $ — $ — $ — $ — $ (22,657 ) $ — Foreign governments 16,857 (2 ) 18 — — (16,873 ) — Commercial mortgage-backed 598 — (9 ) — (86 ) — 503 Residential mortgage-backed 4,167 — — — — (4,167 ) — Corporate 115,344 55 4,126 9,941 (5,283 ) (7,356 ) 116,827 Equity Securities Non-redeemable preferred stocks 7,510 328 (133 ) — (1,830 ) (1,776 ) 4,099 Other investments 4,171 (1,515 ) 9 — (50 ) — 2,615 Other assets 2,491 (223 ) — — — — 2,268 Financial Liabilities Other liabilities (20,330 ) 1,170 — (4,000 ) — — (23,160 ) Total level 3 assets and liabilities $ 153,465 $ (187 ) $ 4,011 $ 5,941 $ (7,249 ) $ (52,829 ) $ 103,152 (1) Included as part of net realized gains on investments in the consolidated statement of operations. (2) Included as part of change in unrealized gains on securities in the consolidated statement of comprehensive income. (3) Transfers are primarily attributable to changes in the availability of observable market information and re-evaluation of the observability of pricing inputs. |
Carrying Value and Fair Value of the Financial Instruments that are Not recognized or are Not Carried at Fair Value | The following tables disclose the carrying value, fair value amount and hierarchy level of the financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets: June 30, 2015 Fair Value Carrying Value Total Level 1 Level 2 Level 3 Financial Assets Commercial mortgage loans on real estate $ 1,267,033 $ 1,347,169 $ — $ — $ 1,347,169 Policy loans 45,453 45,453 45,453 — — Other investments 13,479 13,479 — — 13,479 Total financial assets $ 1,325,965 $ 1,406,101 $ 45,453 $ — $ 1,360,648 Financial Liabilities Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) $ 709,661 $ 741,411 $ — $ — $ 741,411 Funds withheld under reinsurance 95,632 95,632 95,632 — — Debt 1,171,229 1,263,453 — 1,263,453 — Obligations under securities agreements 95,289 95,289 95,289 — — Total financial liabilities $ 2,071,811 $ 2,195,785 $ 190,921 $ 1,263,453 $ 741,411 December 31, 2014 Fair Value Carrying Value Total Level 1 Level 2 Level 3 Financial Assets Commercial mortgage loans on real estate $ 1,272,616 $ 1,448,215 $ — $ — $ 1,448,215 Policy loans 48,272 48,272 48,272 — — Other investments 10,896 10,896 — — 10,896 Total financial assets $ 1,331,784 $ 1,507,383 $ 48,272 $ — $ 1,459,111 Financial Liabilities Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) $ 743,951 $ 764,949 $ — $ — $ 764,949 Funds withheld under reinsurance 75,161 75,161 75,161 — — Debt 1,171,079 1,296,139 — 1,296,139 — Obligations under securities agreements 95,986 95,986 95,986 — — Total financial liabilities $ 2,086,177 $ 2,232,235 $ 171,147 $ 1,296,139 $ 764,949 (1) Only the fair value of the Company’s policy reserves for investment-type contracts (those without significant mortality or morbidity risk) are reflected in the table above. |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Income, Net of Tax | The following tables summarize those reclassification adjustments (net of taxes): Three Months Ended June 30, 2015 Foreign currency translation adjustment Unrealized gains on securities OTTI Pension under- funding Accumulated other comprehensive income Balance at March 31, 2015 $ (193,662 ) $ 850,541 $ 25,700 $ (133,582 ) $ 548,997 Other comprehensive income (loss) before reclassifications 20,151 (229,606 ) (657 ) — (210,112 ) Amounts reclassified from accumulated other comprehensive income — 6,542 376 2,616 9,534 Net current-period other comprehensive income (loss) income 20,151 (223,064 ) (281 ) 2,616 (200,578 ) Balance at June 30, 2015 $ (173,511 ) $ 627,477 $ 25,419 $ (130,966 ) $ 348,419 Three Months Ended June 30, 2014 Foreign currency translation adjustment Unrealized gains on securities OTTI Pension under- funding Accumulated other comprehensive income Balance at March 31, 2014 $ (56,820 ) $ 697,104 $ 28,067 $ (84,870 ) $ 583,481 Other comprehensive income before reclassifications 37,883 136,137 764 — 174,784 Amounts reclassified from accumulated other comprehensive income — 3,797 (20 ) 2,030 5,807 Net current-period other comprehensive income 37,883 139,934 744 2,030 180,591 Balance at June 30, 2014 $ (18,937 ) $ 837,038 $ 28,811 $ (82,840 ) $ 764,072 Six Months Ended June 30, 2015 Foreign currency translation adjustment Unrealized gains on securities OTTI Pension under- funding Accumulated other comprehensive income Balance at December 31, 2014 $ (127,711 ) $ 793,082 $ 26,594 $ (136,198 ) $ 555,767 Other comprehensive (loss) income before reclassifications (45,800 ) (176,083 ) 120 (1 ) (221,764 ) Amounts reclassified from accumulated other comprehensive income — 10,478 (1,295 ) 5,233 14,416 Net current-period other comprehensive (loss) income (45,800 ) (165,605 ) (1,175 ) 5,232 (207,348 ) Balance at June 30, 2015 $ (173,511 ) $ 627,477 $ 25,419 $ (130,966 ) $ 348,419 Six Months Ended June 30, 2014 Foreign currency translation adjustment Unrealized gains on securities OTTI Pension under- funding Accumulated other comprehensive income Balance at December 31, 2013 $ (38,767 ) $ 526,071 $ 26,427 $ (86,901 ) $ 426,830 Other comprehensive income (loss) before reclassifications 19,830 296,159 2,404 — 318,393 Amounts reclassified from accumulated other comprehensive income — 14,808 (20 ) 4,061 18,849 Net current-period other comprehensive income (loss) 19,830 310,967 2,384 4,061 337,242 Balance at June 30, 2014 $ (18,937 ) $ 837,038 $ 28,811 $ (82,840 ) $ 764,072 |
Reclassification out of Accumulated Other Comprehensive Income | The following tables summarize the reclassifications out of accumulated other comprehensive income for the three and six months ended June 30, 2015 and 2014: Details about accumulated other comprehensive income components Amount reclassified from accumulated other comprehensive income Affected line item in the statement where net income is presented Three Months Ended June 30, 2015 2014 Unrealized gains on securities $ 10,064 $ 5,841 Net realized gains on investments, excluding other-than-temporary impairment losses (3,522 ) (2,044 ) Provision for income taxes $ 6,542 $ 3,797 Net of tax OTTI $ 578 $ (30 ) Portion of net loss recognized in other comprehensive income, before taxes (202 ) 10 Provision for income taxes $ 376 $ (20 ) Net of tax Amortization of pension and postretirement unrecognized net periodic benefit cost: Amortization of prior service cost $ (25 ) $ (25 ) (1) Amortization of net loss 4,050 3,150 (1) 4,025 3,125 Total before tax (1,409 ) (1,094 ) Provision for income taxes $ 2,616 $ 2,031 Net of tax Total reclassifications for the period $ 9,534 $ 5,808 Net of tax Details about accumulated other comprehensive income components Amount reclassified from accumulated other comprehensive income Affected line item in the statement where net income is presented Six Months Ended June 30, 2015 2014 Unrealized gains on securities $ 16,120 $ 22,781 Net realized gains on investments, excluding other-than-temporary impairment losses (5,642 ) (7,973 ) Provision for income taxes 10,478 14,808 Net of tax OTTI (1,992 ) (30 ) Portion of net loss recognized in other comprehensive income, before taxes 697 10 Provision for income taxes $ (1,295 ) $ (20 ) Net of tax Amortization of pension and postretirement unrecognized net periodic benefit cost: Amortization of prior service cost $ (50 ) $ (50 ) (1) Amortization of net loss 8,100 6,300 (1) 8,050 6,250 Total before tax (2,817 ) (2,188 ) Provision for income taxes 5,233 4,062 Net of tax Total reclassifications for the period $ 14,416 $ 18,850 Net of tax (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 13 - Retirement and Other Employee Benefits for additional information. |
Stock Repurchase (Tables)
Stock Repurchase (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Class of Stock Disclosures [Abstract] | |
Schedule of Shares Repurchased | The following table shows the shares repurchased during the periods indicated: Period in 2015 Number of Shares Repurchased Average Price Paid Per Share Total Number of Shares Repurchased as Part of Publicly Announced Programs January 529,100 $ 65.51 529,100 February 120,000 61.07 120,000 March 645,000 61.50 645,000 April 640,000 61.20 640,000 May 472,000 64.89 472,000 June 482,586 67.19 482,586 Total 2,888,686 $ 63.66 2,888,686 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Income, Weighted Average Common Shares Used in Calculating Basic Earnings Per Common Share and Diluted EPS | The following table presents net income, the weighted average common shares used in calculating basic earnings per common share (“EPS”) and those used in calculating diluted EPS for each period presented below. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator Net income $ 32,789 $ 143,610 $ 82,833 $ 280,855 Deduct dividends paid (21,616 ) (20,753 ) (40,450 ) (38,933 ) Undistributed earnings $ 11,173 $ 122,857 $ 42,383 $ 241,922 Denominator Weighted average shares outstanding used in basic earnings per share 68,558,472 72,659,590 69,161,001 72,753,651 Incremental common shares from: PSUs 621,327 824,901 720,763 922,048 ESPPs 64,600 59,700 64,600 59,700 Weighted average shares used in diluted earnings per share calculations 69,244,399 73,544,191 69,946,364 73,735,399 Earnings per common share - Basic Distributed earnings $ 0.30 $ 0.27 $ 0.57 $ 0.52 Undistributed earnings 0.18 1.71 0.63 3.34 Net income $ 0.48 $ 1.98 $ 1.20 $ 3.86 Earnings per common share - Diluted Distributed earnings $ 0.30 $ 0.27 $ 0.57 $ 0.52 Undistributed earnings 0.17 1.68 0.61 3.29 Net income $ 0.47 $ 1.95 $ 1.18 $ 3.81 |
Retirement and Other Employee33
Retirement and Other Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost for the Company’s qualified pension benefits plan, nonqualified pension benefits plan and retirement health benefits plan for the three and six months ended June 30, 2015 and 2014 were as follows: Qualified Pension Benefits Nonqualified Pension Benefits (1) Retirement Health Benefits For the Three Months Ended June 30, For the Three Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 2015 2014 Service cost $ 9,750 $ 8,200 $ 1,125 $ 1,000 $ 625 $ 600 Interest cost 9,050 9,150 1,350 1,500 950 975 Expected return on plan assets (13,725 ) (12,350 ) — — (825 ) (775 ) Amortization of prior service cost — — 200 200 (225 ) (225 ) Amortization of net loss (gain) 3,325 2,275 725 925 — (50 ) Curtailment/settlement charge — — 400 — — — Net periodic benefit cost $ 8,400 $ 7,275 $ 3,800 $ 3,625 $ 525 $ 525 Qualified Pension Benefits Nonqualified Pension Benefits (1) Retirement Health Benefits For the Six Months Ended June 30, For the Six Months Ended June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 2015 2014 Service cost $ 19,500 $ 16,400 $ 2,250 $ 2,000 $ 1,250 $ 1,200 Interest cost 18,100 18,300 2,700 3,000 1,900 1,950 Expected return on plan assets (27,450 ) (24,700 ) — — (1,650 ) (1,550 ) Amortization of prior service cost — — 400 400 (450 ) (450 ) Amortization of net loss (gain) 6,650 4,550 1,450 1,850 — (100 ) Curtailment/settlement charge — — 800 — — — Net periodic benefit cost $ 16,800 $ 14,550 $ 7,600 $ 7,250 $ 1,050 $ 1,050 (1) The Company’s nonqualified plan is unfunded. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Financial Information by Segment | The following tables summarize selected financial information by segment: Three Months Ended June 30, 2015 Solutions Specialty Property Health Employee Benefits Corporate & Other Consolidated Revenues Net earned premiums $ 752,604 $ 532,022 $ 584,443 $ 269,189 $ — $ 2,138,258 Net investment income 99,976 25,443 7,014 30,020 5,333 167,786 Net realized gains on investments — — — — 11,999 11,999 Amortization of deferred gain on disposal of businesses — — — — 3,242 3,242 Fees and other income 178,578 106,128 17,047 6,460 15,396 323,609 Total revenues 1,031,158 663,593 608,504 305,669 35,970 2,644,894 Benefits, losses and expenses Policyholder benefits 235,099 214,605 625,323 192,687 — 1,267,714 Amortization of deferred acquisition costs and value of business acquired 276,823 66,111 2,917 8,032 — 353,883 Underwriting, general and administrative expenses 437,917 252,495 158,608 88,241 32,233 969,494 Interest expense — — — — 13,778 13,778 Total benefits, losses and expenses 949,839 533,211 786,848 288,960 46,011 2,604,869 Segment income (loss) before provision (benefit) for income tax 81,319 130,382 (178,344 ) 16,709 (10,041 ) 40,025 Provision (benefit) for income taxes 20,504 42,848 (54,569 ) 5,441 (6,988 ) 7,236 Segment income (loss) after tax $ 60,815 $ 87,534 $ (123,775 ) $ 11,268 $ (3,053 ) Net income $ 32,789 Three Months Ended June 30, 2014 Solutions Specialty Property Health Employee Benefits Corporate & Other Consolidated Revenues Net earned premiums $ 770,319 $ 633,328 $ 505,257 $ 262,830 $ — $ 2,171,734 Net investment income 97,563 25,301 10,365 29,660 4,619 167,508 Net realized gains on investments — — — — 6,087 6,087 Amortization of deferred gain on disposal of businesses — — — — 3,644 3,644 Fees and other income 163,107 81,005 8,983 5,993 40 259,128 Total revenues 1,030,989 739,634 524,605 298,483 14,390 2,608,101 Benefits, losses and expenses Policyholder benefits 268,945 308,611 394,841 177,216 — 1,149,613 Amortization of deferred acquisition costs and value of business acquired 274,017 84,814 76 7,682 — 366,589 Underwriting, general and administrative expenses 401,343 242,797 122,177 90,711 27,308 884,336 Interest expense — — — — 13,776 13,776 Total benefits, losses and expenses 944,305 636,222 517,094 275,609 41,084 2,414,314 Segment income (loss) before provision (benefit) for income tax 86,684 103,412 7,511 22,874 (26,694 ) 193,787 Provision (benefit) for income taxes 27,151 35,102 10,013 8,442 (30,531 ) 50,177 Segment income (loss) after tax $ 59,533 $ 68,310 $ (2,502 ) $ 14,432 $ 3,837 Net income $ 143,610 Six Months Ended June 30, 2015 Solutions Specialty Property Health Employee Benefits Corporate & Other Consolidated Revenues Net earned premiums $ 1,507,081 $ 1,060,468 $ 1,194,185 $ 536,086 $ — $ 4,297,820 Net investment income 192,167 45,958 14,021 57,841 10,072 320,059 Net realized gains on investments — — — — 15,954 15,954 Amortization of deferred gain on disposal of businesses — — — — 6,500 6,500 Fees and other income 351,646 190,364 33,023 12,734 15,404 603,171 Total revenues 2,050,894 1,296,790 1,241,229 606,661 47,930 5,243,504 Benefits, losses and expenses Policyholder benefits 450,647 419,208 1,230,086 378,500 — 2,478,441 Amortization of deferred acquisition costs and value of business acquired 541,855 158,180 7,190 15,661 — 722,886 Underwriting, general and administrative expenses 897,201 476,107 287,786 179,580 50,729 1,891,403 Interest expense — — — — 27,556 27,556 Total benefits, losses and expenses 1,889,703 1,053,495 1,525,062 573,741 78,285 5,120,286 Segment income (loss) before provision (benefit) for income tax 161,191 243,295 (283,833 ) 32,920 (30,355 ) 123,218 Provision (benefit) for income taxes 46,017 80,674 (76,089 ) 11,504 (21,721 ) 40,385 Segment income (loss) after tax $ 115,174 $ 162,621 $ (207,744 ) $ 21,416 $ (8,634 ) Net income $ 82,833 As of June 30, 2015 Segment Assets (1): $ 14,583,286 $ 3,860,952 $ 1,492,149 $ 2,259,811 $ 8,645,884 $ 30,842,082 (1) As of December 31, 2014, all goodwill on Assurant's balance sheet was held in the Corporate & Other segment. Beginning January 1, 2015, goodwill is included on the respective segment balance sheets. Six Months Ended June 30, 2014 Solutions Specialty Property Health Employee Benefits Corporate & Other Consolidated Revenues Net earned premiums $ 1,522,986 $ 1,256,700 $ 928,021 $ 524,489 $ — $ 4,232,196 Net investment income 192,248 53,176 19,226 61,055 9,861 335,566 Net realized gains on investments — — — — 25,838 25,838 Amortization of deferred gain on disposal of businesses — — — — 7,304 7,304 Fees and other income 304,461 121,764 17,194 12,027 123 455,569 Total revenues 2,019,695 1,431,640 964,441 597,571 43,126 5,056,473 Benefits, losses and expenses Policyholder benefits 524,908 571,729 705,614 355,394 — 2,157,645 Amortization of deferred acquisition costs and value of business acquired 536,913 158,833 248 15,377 — 711,371 Underwriting, general and administrative expenses 796,743 450,248 243,409 181,948 55,228 1,727,576 Interest expense — — — — 30,841 30,841 Total benefits, losses and expenses 1,858,564 1,180,810 949,271 552,719 86,069 4,627,433 Segment income (loss) before provision (benefit) for income tax 161,131 250,830 15,170 44,852 (42,943 ) 429,040 Provision (benefit) for income taxes 52,129 84,779 24,741 16,505 (29,969 ) 148,185 Segment income (loss) after tax $ 109,002 $ 166,051 $ (9,571 ) $ 28,347 $ (12,974 ) Net income $ 280,855 As of December 31, 2014 Segment Assets: Segment assets, excluding goodwill $ 14,260,609 $ 4,010,393 $ 1,210,615 $ 2,242,145 $ 8,997,465 $ 30,721,227 Goodwill 841,239 Total assets $ 31,562,466 |
Reorganization (Details)
Reorganization (Details) - Jun. 30, 2015 - Assurant Health - Exit of Health Insurance Market - USD ($) $ in Thousands | Total |
Premium deficiency reserves | |
Restructuring Cost and Reserve [Line Items] | |
Total amount expected to be incurred | $ 122,488 |
Premium deficiency reserves | Policyholders Benefits | |
Restructuring Cost and Reserve [Line Items] | |
The amount incurred in the period | 122,488 |
Severance and retention | |
Restructuring Cost and Reserve [Line Items] | |
Total amount expected to be incurred | 93,500 |
Severance and retention | Underwriting, General and Administrative Expenses | |
Restructuring Cost and Reserve [Line Items] | |
The amount incurred in the period | 14,435 |
Long-lived asset impairments and contract and lease terminations | |
Restructuring Cost and Reserve [Line Items] | |
Total amount expected to be incurred | 31,000 |
Long-lived asset impairments and contract and lease terminations | Underwriting, General and Administrative Expenses | |
Restructuring Cost and Reserve [Line Items] | |
The amount incurred in the period | 22,307 |
Other transaction costs | |
Restructuring Cost and Reserve [Line Items] | |
Total amount expected to be incurred | 6,000 |
Other transaction costs | Underwriting, General and Administrative Expenses | |
Restructuring Cost and Reserve [Line Items] | |
The amount incurred in the period | $ 4,996 |
Dispositions (Details)
Dispositions (Details) - American Reliable Insurance Company - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of subsidiary | $ 117,860 | ||||
Underwriting, General and Administrative Expenses | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (loss) on sale of subsidiary | $ (4,164) | $ 5,284 | $ 1,120 | $ (21,526) |
Investments (Amortized Cost, Gr
Investments (Amortized Cost, Gross Unrealized Gains and Losses, Fair Value and OTTI) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | ||
Schedule of Available-for-sale Securities [Line Items] | |||
Fixed maturity securities, cost or amortized cost | $ 9,798,374 | $ 10,048,100 | |
Fixed maturity securities, fair value | 10,745,939 | 11,263,174 | |
Equity securities, cost or amortized cost | 461,066 | 438,875 | |
Equity securities, fair value | 523,786 | 499,407 | |
Equity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Equity securities, cost or amortized cost | 461,066 | 434,875 | |
Equity securities, gross unrealized gains | 64,763 | 66,626 | |
Equity securities, gross unrealized losses | (2,043) | (2,094) | |
Equity securities, fair value | 523,786 | 499,407 | |
OTTI in AOCI | [1] | 0 | 0 |
Equity securities | Common Stock | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Equity securities, cost or amortized cost | 24,119 | 22,300 | |
Equity securities, gross unrealized gains | 15,772 | 15,651 | |
Equity securities, gross unrealized losses | (12) | (1) | |
Equity securities, fair value | 39,879 | 37,950 | |
OTTI in AOCI | [1] | 0 | 0 |
Fixed maturity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fixed maturity securities, cost or amortized cost | 9,798,374 | 10,048,100 | |
Fixed maturity securities, gross unrealized gains | 989,978 | 1,235,159 | |
Fixed maturity securities, gross unrealized losses | (42,413) | (20,085) | |
Fixed maturity securities, fair value | 10,745,939 | 11,263,174 | |
OTTI in AOCI | [1] | 39,107 | 40,914 |
Fixed maturity securities | United States government and government agencies and authorities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fixed maturity securities, cost or amortized cost | 170,201 | 172,070 | |
Fixed maturity securities, gross unrealized gains | 4,576 | 5,201 | |
Fixed maturity securities, gross unrealized losses | (376) | (429) | |
Fixed maturity securities, fair value | 174,401 | 176,842 | |
OTTI in AOCI | [1] | 0 | 0 |
Fixed maturity securities | States, municipalities and political subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fixed maturity securities, cost or amortized cost | 705,878 | 703,167 | |
Fixed maturity securities, gross unrealized gains | 54,635 | 67,027 | |
Fixed maturity securities, gross unrealized losses | (1,605) | (353) | |
Fixed maturity securities, fair value | 758,908 | 769,841 | |
OTTI in AOCI | [1] | 0 | 0 |
Fixed maturity securities | Foreign governments | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fixed maturity securities, cost or amortized cost | 549,039 | 591,981 | |
Fixed maturity securities, gross unrealized gains | 75,012 | 74,339 | |
Fixed maturity securities, gross unrealized losses | (1,611) | (1,457) | |
Fixed maturity securities, fair value | 622,440 | 664,863 | |
OTTI in AOCI | [1] | 0 | 0 |
Fixed maturity securities | Asset-backed | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fixed maturity securities, cost or amortized cost | 3,762 | 3,917 | |
Fixed maturity securities, gross unrealized gains | 1,578 | 1,680 | |
Fixed maturity securities, gross unrealized losses | (124) | (78) | |
Fixed maturity securities, fair value | 5,216 | 5,519 | |
OTTI in AOCI | [1] | 1,478 | 1,570 |
Fixed maturity securities | Corporate | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fixed maturity securities, cost or amortized cost | 7,321,135 | 7,621,054 | |
Fixed maturity securities, gross unrealized gains | 798,462 | 1,026,927 | |
Fixed maturity securities, gross unrealized losses | (34,370) | (16,614) | |
Fixed maturity securities, fair value | 8,085,227 | 8,631,367 | |
OTTI in AOCI | [1] | 21,157 | 21,612 |
Fixed maturity securities | Commercial mortgage-backed | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fixed maturity securities, cost or amortized cost | 29,974 | 44,907 | |
Fixed maturity securities, gross unrealized gains | 673 | 1,109 | |
Fixed maturity securities, gross unrealized losses | 0 | 0 | |
Fixed maturity securities, fair value | 30,647 | 46,016 | |
OTTI in AOCI | [1] | 0 | 0 |
Fixed maturity securities | Residential mortgage-backed | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fixed maturity securities, cost or amortized cost | 1,018,385 | 911,004 | |
Fixed maturity securities, gross unrealized gains | 55,042 | 58,876 | |
Fixed maturity securities, gross unrealized losses | (4,327) | (1,154) | |
Fixed maturity securities, fair value | 1,069,100 | 968,726 | |
OTTI in AOCI | [1] | 16,472 | 17,732 |
Non-redeemable preferred stocks | Equity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Equity securities, cost or amortized cost | 436,947 | 412,575 | |
Equity securities, gross unrealized gains | 48,991 | 50,975 | |
Equity securities, gross unrealized losses | (2,031) | (2,093) | |
Equity securities, fair value | 483,907 | 461,457 | |
OTTI in AOCI | [1] | $ 0 | $ 0 |
[1] | Represents the amount of OTTI recognized in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015USD ($)securitystate | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)securitystate | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($)securitystate | |
Investment [Line Items] | |||||
Number of individual states exceeding overall investment portfolio exposure | state | 0 | 0 | 0 | ||
Maximum individual state exposure | 0.50% | 0.50% | 0.50% | ||
Advance refunded or escrowed-to-maturity securities | $ 335,964 | $ 335,964 | $ 270,107 | ||
Percentage of revenue securities | 50.00% | 50.00% | 51.00% | ||
Total other-than-temporary impairment losses | $ 0 | $ 40 | $ 3,208 | $ 69 | |
Net other-than-temporary impairment losses recognized in earnings | $ 0 | 30 | 2,570 | 30 | |
Portion of net (gain) loss recorded as unrealized loss component of AOCI | $ 10 | $ 638 | $ 39 | ||
Percentage of securities representing gross unrealized losses | 3.00% | 3.00% | 2.00% | ||
Percentage of gross unrealized losses in a continuous loss position less than twelve months | 87.00% | 87.00% | 63.00% | ||
Individual securities comprising total gross unrealized losses | security | 642 | 642 | 385 | ||
Percentage of residential mortgage-backed holdings exposure to sub-prime mortgage collateral | 39.00% | 39.00% | |||
Outstanding balance of commercial mortgage loans | $ 1,270,432 | $ 1,270,432 | $ 1,276,015 | ||
Percentage of securities received as collateral (greater than or equal to) | 102.00% | ||||
Collateral held under securities lending | 95,291 | $ 95,291 | 95,985 | ||
Liability to the borrower for collateral | 95,289 | 95,289 | 95,986 | ||
Minimum | |||||
Investment [Line Items] | |||||
Outstanding balance of commercial mortgage loans | 40 | 40 | 77 | ||
Maximum | |||||
Investment [Line Items] | |||||
Outstanding balance of commercial mortgage loans | 14,990 | 14,990 | 15,190 | ||
Energy Sector | Corporate | |||||
Investment [Line Items] | |||||
Investment in securities | 927,651 | 927,651 | 992,012 | ||
Unrealized gain on investments | 75,138 | 75,138 | 89,590 | ||
Europe | Corporate Fixed Maturity and Equity Securities | |||||
Investment [Line Items] | |||||
Investment in securities | 967,422 | 967,422 | 1,060,655 | ||
Unrealized gain on investments | $ 90,871 | $ 90,871 | $ 116,975 | ||
Investments | Internal Investment Grade | Energy Sector | Corporate | |||||
Investment [Line Items] | |||||
Percentage of investments held | 88.00% | 89.00% | |||
Geographic Concentration Risk | Investments | Canada | Foreign Government Fixed Maturity Securities | |||||
Investment [Line Items] | |||||
Percentage of investments held | 77.00% | 76.00% | |||
Geographic Concentration Risk | Investments | Brazil | Foreign Government Fixed Maturity Securities | |||||
Investment [Line Items] | |||||
Percentage of investments held | 10.00% | 10.00% | |||
Geographic Concentration Risk | Investments | Germany | Foreign Government Fixed Maturity Securities | |||||
Investment [Line Items] | |||||
Percentage of investments held | 5.00% | 5.00% | |||
Geographic Concentration Risk | Investments | Other Countries (less than 2% and 3%) | Foreign Government Fixed Maturity Securities | |||||
Investment [Line Items] | |||||
Percentage of investments held | 2.00% | 3.00% | |||
Geographic Concentration Risk | Investments | Unspecified European Country | Corporate Fixed Maturity and Equity Securities | |||||
Investment [Line Items] | |||||
Percentage of investments held | 5.00% | 5.00% | |||
Investment Sector Concentration Risk | Investments | Europe | Financial Services Sector | Corporate Fixed Maturity and Equity Securities | |||||
Investment [Line Items] | |||||
Percentage of investments held | 22.00% | 22.00% | |||
Investment Hedging Concentration Risk | Investments | Europe | Pound and Euro Denominated | Not Hedged to U.S. Dollars | Corporate Fixed Maturity and Equity Securities | |||||
Investment [Line Items] | |||||
Percentage of investments held | 6.00% |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Fixed Maturity Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less, cost or amortized cost | $ 307,598 | |
Due after one year through five years, cost or amortized cost | 1,995,950 | |
Due after five years through ten years, cost or amortized cost | 2,280,879 | |
Due after ten years, cost or amortized cost | 4,161,826 | |
Total, cost or amortized cost | 8,746,253 | |
Total cost or amortized cost | 9,798,374 | $ 10,048,100 |
Due in one year or less, fair value | 313,370 | |
Due after one year through five years, fair value | 2,110,987 | |
Due after five years through ten years, fair value | 2,382,011 | |
Due after ten years, fair value | 4,834,608 | |
Total, fair value | 9,640,976 | |
Total fair value | 10,745,939 | $ 11,263,174 |
Commercial mortgage-backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | 29,974 | |
Fair value | 30,647 | |
Residential mortgage-backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | 1,018,385 | |
Fair value | 1,069,100 | |
Asset-backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | 3,762 | |
Fair value | $ 5,216 |
Investments (Proceeds from Sale
Investments (Proceeds from Sales of Available-For-Sale Securities and the Gross Realized Gains and Gross Realized Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Investments [Abstract] | ||||
Proceeds from sales | $ 804,476 | $ 449,405 | $ 1,356,989 | $ 1,002,404 |
Gross realized gains | 13,912 | 8,804 | 26,255 | 31,587 |
Gross realized losses | $ 5,844 | $ 1,300 | $ 11,443 | $ 6,567 |
Investments (Net Realized Gains
Investments (Net Realized Gains (Losses), Including Other-Than-Temporary Impairments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Gain (Loss) on Investments [Line Items] | ||||
Net realized gains (losses) related to sales and other | $ 11,999 | $ 6,117 | $ 18,524 | $ 25,868 |
Total net realized losses related to other-than- temporary impairments | 0 | (30) | (2,570) | (30) |
Total net realized gains | 11,999 | 6,087 | 15,954 | 25,838 |
Fixed maturity securities | ||||
Gain (Loss) on Investments [Line Items] | ||||
Net realized gains (losses) related to sales and other | 6,746 | 6,500 | 12,259 | 21,690 |
Total net realized losses related to other-than- temporary impairments | 0 | (30) | (2,570) | (30) |
Equity securities | ||||
Gain (Loss) on Investments [Line Items] | ||||
Net realized gains (losses) related to sales and other | 1,080 | 13 | 1,954 | 5,137 |
Other investments | ||||
Gain (Loss) on Investments [Line Items] | ||||
Net realized gains (losses) related to sales and other | $ 4,173 | $ (396) | $ 4,311 | $ (959) |
Investments (Credit Loss Impair
Investments (Credit Loss Impairments Recognized) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Beginning balance | $ 36,057 | $ 44,301 | $ 35,424 | $ 45,278 |
Additions for credit loss impairments recognized in the current period on securities previously impaired | 0 | 30 | 0 | 30 |
Additions for credit loss impairments recognized in the current period on securities not previously impaired | 2,570 | 0 | ||
Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security | (603) | (2,163) | (1,075) | (2,645) |
Reductions for credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period | (1,146) | (2,920) | (2,611) | (3,415) |
Ending balance | $ 34,308 | $ 39,248 | $ 34,308 | $ 39,248 |
Investments (Investment Categor
Investments (Investment Category and Duration of Gross Unrealized Losses on Fixed Maturity Securities and Equity Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses on securities, less than 12 months, fair value | $ 79,116 | $ 8,844 |
Gross unrealized losses on securities, less than 12 months, unrealized losses | (1,176) | (264) |
Gross unrealized losses on securities, 12 months or more, fair value | 12,461 | 24,980 |
Gross unrealized losses on securities, 12 months or more, unrealized losses | (867) | (1,830) |
Gross unrealized losses on securities, fair value, total | 91,577 | 33,824 |
Gross unrealized losses on securities, unrealized losses, total | (2,043) | (2,094) |
Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses on securities, less than 12 months, fair value | 1,422,606 | 720,465 |
Gross unrealized losses on securities, less than 12 months, unrealized losses | (37,471) | (13,740) |
Gross unrealized losses on securities, 12 months or more, fair value | 71,664 | 240,810 |
Gross unrealized losses on securities, 12 months or more, unrealized losses | (4,942) | (6,345) |
Gross unrealized losses on securities, fair value, total | 1,494,270 | 961,275 |
Gross unrealized losses on securities, unrealized losses, total | (42,413) | (20,085) |
Fixed maturity securities | Corporate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses on securities, less than 12 months, fair value | 1,061,803 | 640,641 |
Gross unrealized losses on securities, less than 12 months, unrealized losses | (32,266) | (13,132) |
Gross unrealized losses on securities, 12 months or more, fair value | 18,709 | 113,918 |
Gross unrealized losses on securities, 12 months or more, unrealized losses | (2,104) | (3,482) |
Gross unrealized losses on securities, fair value, total | 1,080,512 | 754,559 |
Gross unrealized losses on securities, unrealized losses, total | (34,370) | (16,614) |
Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses on securities, less than 12 months, fair value | 243,223 | 22,337 |
Gross unrealized losses on securities, less than 12 months, unrealized losses | (3,936) | (71) |
Gross unrealized losses on securities, 12 months or more, fair value | 13,750 | 61,682 |
Gross unrealized losses on securities, 12 months or more, unrealized losses | (391) | (1,083) |
Gross unrealized losses on securities, fair value, total | 256,973 | 84,019 |
Gross unrealized losses on securities, unrealized losses, total | (4,327) | (1,154) |
Common Stock | Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses on securities, less than 12 months, fair value | 667 | 0 |
Gross unrealized losses on securities, less than 12 months, unrealized losses | (12) | 0 |
Gross unrealized losses on securities, 12 months or more, fair value | 0 | 196 |
Gross unrealized losses on securities, 12 months or more, unrealized losses | 0 | (1) |
Gross unrealized losses on securities, fair value, total | 667 | 196 |
Gross unrealized losses on securities, unrealized losses, total | (12) | (1) |
Non-redeemable preferred stocks | Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses on securities, less than 12 months, fair value | 78,449 | 8,844 |
Gross unrealized losses on securities, less than 12 months, unrealized losses | (1,164) | (264) |
Gross unrealized losses on securities, 12 months or more, fair value | 12,461 | 24,784 |
Gross unrealized losses on securities, 12 months or more, unrealized losses | (867) | (1,829) |
Gross unrealized losses on securities, fair value, total | 90,910 | 33,628 |
Gross unrealized losses on securities, unrealized losses, total | (2,031) | (2,093) |
United States government and government agencies and authorities | Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses on securities, less than 12 months, fair value | 48,420 | 34,551 |
Gross unrealized losses on securities, less than 12 months, unrealized losses | (316) | (188) |
Gross unrealized losses on securities, 12 months or more, fair value | 8,549 | 21,488 |
Gross unrealized losses on securities, 12 months or more, unrealized losses | (60) | (241) |
Gross unrealized losses on securities, fair value, total | 56,969 | 56,039 |
Gross unrealized losses on securities, unrealized losses, total | (376) | (429) |
States, municipalities and political subdivisions | Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses on securities, less than 12 months, fair value | 20,761 | 3,050 |
Gross unrealized losses on securities, less than 12 months, unrealized losses | (634) | (282) |
Gross unrealized losses on securities, 12 months or more, fair value | 2,363 | 4,633 |
Gross unrealized losses on securities, 12 months or more, unrealized losses | (971) | (71) |
Gross unrealized losses on securities, fair value, total | 23,124 | 7,683 |
Gross unrealized losses on securities, unrealized losses, total | (1,605) | (353) |
Foreign governments | Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses on securities, less than 12 months, fair value | 48,399 | 19,886 |
Gross unrealized losses on securities, less than 12 months, unrealized losses | (319) | (67) |
Gross unrealized losses on securities, 12 months or more, fair value | 26,975 | 37,741 |
Gross unrealized losses on securities, 12 months or more, unrealized losses | (1,292) | (1,390) |
Gross unrealized losses on securities, fair value, total | 75,374 | 57,627 |
Gross unrealized losses on securities, unrealized losses, total | (1,611) | (1,457) |
Asset-backed | Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses on securities, less than 12 months, fair value | 0 | 0 |
Gross unrealized losses on securities, less than 12 months, unrealized losses | 0 | 0 |
Gross unrealized losses on securities, 12 months or more, fair value | 1,318 | 1,348 |
Gross unrealized losses on securities, 12 months or more, unrealized losses | (124) | (78) |
Gross unrealized losses on securities, fair value, total | 1,318 | 1,348 |
Gross unrealized losses on securities, unrealized losses, total | $ (124) | $ (78) |
Investments (Loan-To-Value and
Investments (Loan-To-Value and Average Debt-Service Coverage Ratios) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 1,270,432 | $ 1,276,015 |
% of Gross Mortgage Loans | 100.00% | 100.00% |
Debt-Service Coverage Ratio | 1.89 | 1.94 |
Less valuation allowance | $ (3,399) | $ (3,399) |
Net commercial mortgage loans | 1,267,033 | 1,272,616 |
70% and less | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 1,171,935 | $ 1,168,454 |
% of Gross Mortgage Loans | 92.30% | 91.60% |
Debt-Service Coverage Ratio | 1.95 | 2.01 |
71 – 80% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 62,653 | $ 73,762 |
% of Gross Mortgage Loans | 4.90% | 5.80% |
Debt-Service Coverage Ratio | 1.29 | 1.26 |
81 – 95% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 35,844 | $ 27,268 |
% of Gross Mortgage Loans | 2.80% | 2.10% |
Debt-Service Coverage Ratio | 1.04 | 1.04 |
Greater than 95% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 6,531 | |
% of Gross Mortgage Loans | 0.50% | |
Debt-Service Coverage Ratio | 0.43 |
Fair Value Disclosures (Fair Va
Fair Value Disclosures (Fair Value for Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | $ 14,714,341 | $ 14,994,576 | |
Total financial liabilities | 1,966,622 | 1,938,853 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 3,023,628 | 2,750,619 | |
Total financial liabilities | 1,779,670 | 1,742,029 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 11,635,310 | 12,129,706 | |
Total financial liabilities | 158,375 | 171,591 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 55,403 | 114,251 | |
Total financial liabilities | 28,577 | 25,233 | |
Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial liabilities | 94,842 | 84,660 | |
Other liabilities | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial liabilities | [1] | 66,253 | 59,358 |
Other liabilities | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial liabilities | [2] | 12 | 69 |
Other liabilities | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial liabilities | [2] | 28,577 | 25,233 |
Liabilities related to separate accounts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial liabilities | 1,871,780 | 1,854,193 | |
Liabilities related to separate accounts | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial liabilities | [1] | 1,713,417 | 1,682,671 |
Liabilities related to separate accounts | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial liabilities | [3] | 158,363 | 171,522 |
Liabilities related to separate accounts | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial liabilities | 0 | 0 | |
United States Government and government agencies and authorities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 174,401 | 176,842 | |
United States Government and government agencies and authorities | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 0 | |
United States Government and government agencies and authorities | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 174,401 | 176,842 | |
United States Government and government agencies and authorities | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 0 | |
States, municipalities and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 758,908 | 769,841 | |
States, municipalities and political subdivisions | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 0 | |
States, municipalities and political subdivisions | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 758,908 | 769,841 | |
States, municipalities and political subdivisions | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 0 | |
Foreign governments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 622,440 | 664,863 | |
Foreign governments | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 847 | 757 | |
Foreign governments | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 621,593 | 664,106 | |
Foreign governments | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 0 | |
Asset-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 5,216 | 5,519 | |
Asset-backed | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 0 | |
Asset-backed | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 5,216 | 5,519 | |
Asset-backed | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 0 | |
Commercial mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 30,647 | 46,016 | |
Commercial mortgage-backed | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 0 | |
Commercial mortgage-backed | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 30,343 | 45,613 | |
Commercial mortgage-backed | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 304 | 403 | |
Residential mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 1,069,100 | 968,726 | |
Residential mortgage-backed | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 0 | |
Residential mortgage-backed | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 1,069,100 | 964,081 | |
Residential mortgage-backed | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 4,645 | |
Corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 8,085,227 | 8,631,367 | |
Corporate | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 0 | |
Corporate | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 8,035,417 | 8,527,092 | |
Corporate | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 49,810 | 104,275 | |
Common Stock | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 39,879 | 37,950 | |
Common Stock | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 39,197 | 37,266 | |
Common Stock | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 682 | 684 | |
Common Stock | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 0 | |
Non-redeemable preferred stocks | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 483,907 | 461,457 | |
Non-redeemable preferred stocks | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 0 | |
Non-redeemable preferred stocks | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 481,787 | 459,457 | |
Non-redeemable preferred stocks | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 2,120 | 2,000 | |
Short-term investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 442,611 | 345,246 | |
Short-term investments | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | [4] | 346,187 | 266,980 |
Short-term investments | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | [3] | 96,424 | 78,266 |
Short-term investments | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 0 | |
Collateral held/pledged under securities agreements | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 95,291 | 74,985 | |
Collateral held/pledged under securities agreements | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | [4] | 92,089 | 67,783 |
Collateral held/pledged under securities agreements | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | [3] | 3,202 | 7,202 |
Collateral held/pledged under securities agreements | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 0 | |
Other investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 266,526 | 272,755 | |
Other investments | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | [1] | 66,253 | 59,358 |
Other investments | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | [3] | 197,892 | 211,276 |
Other investments | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | [5] | 2,381 | 2,121 |
Cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 767,105 | 683,142 | |
Cash equivalents | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | [4] | 765,638 | 635,804 |
Cash equivalents | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | [3] | 1,467 | 47,338 |
Cash equivalents | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 0 | |
Other assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 1,303 | 1,674 | |
Other assets | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 0 | |
Other assets | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | [2] | 515 | 867 |
Other assets | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | [6] | 788 | 807 |
Assets held in separate accounts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 1,871,780 | 1,854,193 | |
Assets held in separate accounts | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | [1] | 1,713,417 | 1,682,671 |
Assets held in separate accounts | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | [3] | 158,363 | 171,522 |
Assets held in separate accounts | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | $ 0 | $ 0 | |
[1] | Mainly includes mutual funds. | ||
[2] | Mainly includes other derivatives. | ||
[3] | Mainly includes fixed maturity securities. | ||
[4] | Mainly includes money market funds. | ||
[5] | Mainly includes fixed maturity securities and other derivatives. | ||
[6] | Mainly includes the Consumer Price Index Cap Derivatives (“CPI Caps”). |
Fair Value Disclosures (Narrati
Fair Value Disclosures (Narrative) (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfers between Level 1 and Level 2 financial assets | $ 0 | $ 0 |
Transfers between Level 2 to Level 1 financial assets | 0 | 0 |
Allowance for doubtful accounts reinsurance recoverable | 10,819,000 | 10,820,000 |
Fixed Maturity and Equity Securities | Level 3 | Priced externally | Market Approach Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets at fair value | 4,714,000 | 63,614,000 |
Fixed Maturity and Equity Securities | Level 3 | Priced internally | Market Approach Valuation Technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets at fair value | $ 47,900,000 | $ 47,923,000 |
Fair Value Disclosures (Change
Fair Value Disclosures (Change in Balance Sheet Carrying Value Associated with Level 3 Financial Assets and Liabilities Carried at Fair Value) (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Total Level 3 Assets and Liabilities | |||||
Balance, beginning of period, net | $ 80,627 | $ 113,665 | $ 89,018 | $ 153,465 | |
Total (losses) gains (realized/unrealized) included in earnings, net | [1] | (2,086) | (610) | (2,777) | (187) |
Net unrealized (losses) gains included in other comprehensive income | [2] | (1,980) | 1,082 | (1,047) | 4,011 |
Purchases, net | 6,600 | 9,941 | 6,600 | 5,941 | |
Sales, net | (3,558) | (2,277) | (5,780) | (7,249) | |
Transfers in, net | [3] | 2,366 | |||
Transfers out, net | [3] | (52,777) | (18,649) | (61,554) | (52,829) |
Balance, end of period, net | 26,826 | 103,152 | 26,826 | 103,152 | |
Other liabilities | |||||
Financial Liabilities | |||||
Balance, beginning of period, liabilities | (26,181) | (23,045) | (25,233) | (20,330) | |
Total (losses) gains (realized/unrealized) including earnings, liabilities | [1] | (2,473) | (115) | (3,421) | 1,170 |
Net unrealized (losses) gains included in other comprehensive income, liabilities | [2] | 0 | 0 | 0 | 0 |
Purchases, liabilities | 77 | 0 | 77 | (4,000) | |
Sales, liabilities | 0 | 0 | 0 | 0 | |
Transfers in, liabilities | [3] | 0 | |||
Transfers out, liabilities | [3] | 0 | 0 | 0 | 0 |
Balance, end of period, liabilities | (28,577) | (23,160) | (28,577) | (23,160) | |
States, municipalities and political subdivisions | |||||
Financial Assets | |||||
Balance, beginning of period, assets | 22,657 | ||||
Total (losses) gains (realized/unrealized) included in earnings, assets | [1] | 0 | |||
Net unrealized (losses) gains included in other comprehensive income, assets | [2] | 0 | |||
Purchases, assets | 0 | ||||
Sales, assets | 0 | ||||
Transfers out, assets | [3] | (22,657) | |||
Balance, end of period, assets | 0 | 0 | |||
Foreign governments | |||||
Financial Assets | |||||
Balance, beginning of period, assets | 16,873 | 16,857 | |||
Total (losses) gains (realized/unrealized) included in earnings, assets | [1] | 0 | (2) | ||
Net unrealized (losses) gains included in other comprehensive income, assets | [2] | 0 | 18 | ||
Purchases, assets | 0 | 0 | |||
Sales, assets | 0 | 0 | |||
Transfers out, assets | [3] | (16,873) | (16,873) | ||
Balance, end of period, assets | 0 | 0 | |||
Commercial mortgage-backed | |||||
Financial Assets | |||||
Balance, beginning of period, assets | 354 | 550 | 403 | 598 | |
Total (losses) gains (realized/unrealized) included in earnings, assets | [1] | 0 | 0 | 0 | 0 |
Net unrealized (losses) gains included in other comprehensive income, assets | [2] | (3) | (4) | (6) | (9) |
Purchases, assets | 0 | 0 | 0 | 0 | |
Sales, assets | (47) | (43) | (93) | (86) | |
Transfers in, assets | [3] | 0 | |||
Transfers out, assets | [3] | 0 | 0 | 0 | 0 |
Balance, end of period, assets | 304 | 503 | 304 | 503 | |
Residential mortgage-backed | |||||
Financial Assets | |||||
Balance, beginning of period, assets | 4,645 | 4,167 | |||
Total (losses) gains (realized/unrealized) included in earnings, assets | [1] | 0 | 0 | ||
Net unrealized (losses) gains included in other comprehensive income, assets | [2] | 0 | 0 | ||
Purchases, assets | 0 | 0 | |||
Sales, assets | 0 | 0 | |||
Transfers in, assets | [3] | 0 | |||
Transfers out, assets | [3] | (4,645) | (4,167) | ||
Balance, end of period, assets | 0 | 0 | 0 | 0 | |
Corporate | |||||
Financial Assets | |||||
Balance, beginning of period, assets | 100,990 | 108,213 | 104,275 | 115,344 | |
Total (losses) gains (realized/unrealized) included in earnings, assets | [1] | 576 | (43) | 568 | 55 |
Net unrealized (losses) gains included in other comprehensive income, assets | [2] | (2,026) | 920 | (1,146) | 4,126 |
Purchases, assets | 6,523 | 9,941 | 6,523 | 9,941 | |
Sales, assets | (3,476) | (2,204) | (5,631) | (5,283) | |
Transfers in, assets | [3] | 2,130 | |||
Transfers out, assets | [3] | (52,777) | 0 | (56,909) | (7,356) |
Balance, end of period, assets | 49,810 | 116,827 | 49,810 | 116,827 | |
Non-redeemable preferred stocks | |||||
Financial Assets | |||||
Balance, beginning of period, assets | 2,060 | 5,714 | 2,000 | 7,510 | |
Total (losses) gains (realized/unrealized) included in earnings, assets | [1] | 0 | 0 | 0 | 328 |
Net unrealized (losses) gains included in other comprehensive income, assets | [2] | 60 | 161 | 120 | (133) |
Purchases, assets | 0 | 0 | 0 | 0 | |
Sales, assets | 0 | 0 | 0 | (1,830) | |
Transfers in, assets | [3] | 0 | |||
Transfers out, assets | [3] | 0 | (1,776) | 0 | (1,776) |
Balance, end of period, assets | 2,120 | 4,099 | 2,120 | 4,099 | |
Other investments | |||||
Financial Assets | |||||
Balance, beginning of period, assets | 2,460 | 3,060 | 2,121 | 4,171 | |
Total (losses) gains (realized/unrealized) included in earnings, assets | [1] | (33) | (420) | 95 | (1,515) |
Net unrealized (losses) gains included in other comprehensive income, assets | [2] | (11) | 5 | (15) | 9 |
Purchases, assets | 0 | 0 | 0 | 0 | |
Sales, assets | (35) | (30) | (56) | (50) | |
Transfers in, assets | [3] | 236 | |||
Transfers out, assets | [3] | 0 | 0 | 0 | 0 |
Balance, end of period, assets | 2,381 | 2,615 | 2,381 | 2,615 | |
Other assets | |||||
Financial Assets | |||||
Balance, beginning of period, assets | 944 | 2,300 | 807 | 2,491 | |
Total (losses) gains (realized/unrealized) included in earnings, assets | [1] | (156) | (32) | (19) | (223) |
Net unrealized (losses) gains included in other comprehensive income, assets | [2] | 0 | 0 | 0 | 0 |
Purchases, assets | 0 | 0 | 0 | 0 | |
Sales, assets | 0 | 0 | 0 | 0 | |
Transfers in, assets | [3] | 0 | |||
Transfers out, assets | [3] | 0 | 0 | 0 | 0 |
Balance, end of period, assets | $ 788 | $ 2,268 | $ 788 | $ 2,268 | |
[1] | Included as part of net realized gains on investments in the consolidated statement of operations. | ||||
[2] | Included as part of change in unrealized gains on securities in the consolidated statement of comprehensive income. | ||||
[3] | Transfers are primarily attributable to changes in the availability of observable market information and re-evaluation of the observability of pricing inputs. |
Fair Value Disclosures (Carryin
Fair Value Disclosures (Carrying Value and Fair Value of the Financial Instruments that are Not recognized or are Not Carried at Fair Value) (Details) - Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commercial mortgage loans on real estate | $ 1,267,033 | $ 1,272,616 | |
Policy loans | 45,453 | 48,272 | |
Other investments | 13,479 | 10,896 | |
Total financial assets | 1,325,965 | 1,331,784 | |
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | [1] | 709,661 | 743,951 |
Funds withheld under reinsurance | 95,632 | 75,161 | |
Debt | 1,171,229 | 1,171,079 | |
Obligations under securities agreements | 95,289 | 95,986 | |
Total financial liabilities | 2,071,811 | 2,086,177 | |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commercial mortgage loans on real estate | 1,347,169 | 1,448,215 | |
Policy loans | 45,453 | 48,272 | |
Other investments | 13,479 | 10,896 | |
Total financial assets | 1,406,101 | 1,507,383 | |
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | [1] | 741,411 | 764,949 |
Funds withheld under reinsurance | 95,632 | 75,161 | |
Debt | 1,263,453 | 1,296,139 | |
Obligations under securities agreements | 95,289 | 95,986 | |
Total financial liabilities | 2,195,785 | 2,232,235 | |
Fair Value | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commercial mortgage loans on real estate | 0 | 0 | |
Policy loans | 45,453 | 48,272 | |
Other investments | 0 | 0 | |
Total financial assets | 45,453 | 48,272 | |
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | [1] | 0 | 0 |
Funds withheld under reinsurance | 95,632 | 75,161 | |
Debt | 0 | 0 | |
Obligations under securities agreements | 95,289 | 95,986 | |
Total financial liabilities | 190,921 | 171,147 | |
Fair Value | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commercial mortgage loans on real estate | 0 | 0 | |
Policy loans | 0 | 0 | |
Other investments | 0 | 0 | |
Total financial assets | 0 | 0 | |
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | [1] | 0 | 0 |
Funds withheld under reinsurance | 0 | 0 | |
Debt | 1,263,453 | 1,296,139 | |
Obligations under securities agreements | 0 | 0 | |
Total financial liabilities | 1,263,453 | 1,296,139 | |
Fair Value | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commercial mortgage loans on real estate | 1,347,169 | 1,448,215 | |
Policy loans | 0 | 0 | |
Other investments | 13,479 | 10,896 | |
Total financial assets | 1,360,648 | 1,459,111 | |
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | [1] | 741,411 | 764,949 |
Funds withheld under reinsurance | 0 | 0 | |
Debt | 0 | 0 | |
Obligations under securities agreements | 0 | 0 | |
Total financial liabilities | $ 741,411 | $ 764,949 | |
[1] | Only the fair value of the Company’s policy reserves for investment-type contracts (those without significant mortality or morbidity risk) are reflected in the table above. |
Debt (Senior Notes) (Details)
Debt (Senior Notes) (Details) | Mar. 15, 2015USD ($) | Feb. 15, 2015USD ($) | Mar. 15, 2014USD ($) | Feb. 15, 2014USD ($) | Mar. 28, 2013USD ($)series | Feb. 29, 2004USD ($)series | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) |
Debt Instrument [Line Items] | ||||||||||
Interest expense | $ 13,778,000 | $ 13,776,000 | $ 27,556,000 | $ 30,841,000 | ||||||
Senior Notes | Senior Notes 2013 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of series issued | series | 2 | |||||||||
Aggregate principal amount | $ 700,000,000 | |||||||||
Net proceeds from issuance of debt | 698,093,000 | |||||||||
Unamortized discount | 1,907,000 | |||||||||
Interest expense | 5,747,000 | 5,745,000 | 11,493,000 | 11,489,000 | ||||||
Accrued interest | 6,635,000 | 6,635,000 | 6,635,000 | 6,635,000 | ||||||
Interest payment | $ 11,375,000 | $ 11,375,000 | ||||||||
Senior Notes | Senior Notes 2013, First Series | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 350,000,000 | |||||||||
Interest rate | 2.50% | |||||||||
Discount rate | 0.18% | |||||||||
Senior Notes | Senior Notes 2013, Second Series | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 350,000,000 | |||||||||
Interest rate | 4.00% | |||||||||
Discount rate | 0.37% | |||||||||
Senior Notes | Senior Notes 2004 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of series issued | series | 2 | |||||||||
Aggregate principal amount | $ 975,000,000 | |||||||||
Net proceeds from issuance of debt | 971,537,000 | |||||||||
Unamortized discount | 3,463,000 | |||||||||
Interest expense | 8,032,000 | 8,031,000 | 16,063,000 | 19,352,000 | ||||||
Accrued interest | $ 12,023,000 | $ 12,023,000 | $ 12,023,000 | $ 12,023,000 | ||||||
Interest payment | $ 16,031,000 | $ 30,094,000 | ||||||||
Senior Notes | Senior Notes 2004, First Series | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 500,000,000 | |||||||||
Interest rate | 5.63% | |||||||||
Discount rate | 0.11% | |||||||||
Senior Notes | Senior Notes 2004, Second Series | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 475,000,000 | |||||||||
Interest rate | 6.75% | |||||||||
Discount rate | 0.61% |
Debt (Credit Facility) (Details
Debt (Credit Facility) (Details) - USD ($) | Sep. 16, 2014 | Sep. 21, 2011 | Jun. 30, 2015 | Dec. 31, 2014 |
Credit Facility 2014 | ||||
Line of Credit Facility [Line Items] | ||||
Amount outstanding | $ 0 | |||
Borrowings | 0 | |||
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility borrowing capacity | 400,000,000 | |||
Credit facility available capacity | 395,800,000 | |||
Revolving Credit Facility | Credit Facility 2014 | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility borrowing capacity | $ 400,000,000 | |||
Term of debt instrument | 5 years | |||
Maximum borrowing capacity | $ 525,000,000 | |||
Revolving Credit Facility | Credit Facility 2011 | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility borrowing capacity | $ 350,000,000 | |||
Term of debt instrument | 4 years | |||
Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Amount outstanding | 4,200,000 | |||
Letter of Credit | Credit Facility 2014 | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility borrowing capacity | $ 50,000,000 | |||
Commercial Paper | Credit Facility 2014 | ||||
Line of Credit Facility [Line Items] | ||||
Amount outstanding | $ 0 | $ 0 |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Income (Components of Accumulated Other Comprehensive Income, Net of Tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 548,997 | $ 583,481 | $ 555,767 | $ 426,830 |
Other comprehensive income (loss) before reclassifications | (210,112) | 174,784 | (221,764) | 318,393 |
Amounts reclassified from accumulated other comprehensive income | 9,534 | 5,807 | 14,416 | 18,849 |
Total other comprehensive (loss) income | (200,578) | 180,591 | (207,348) | 337,242 |
Ending balance | 348,419 | 764,072 | 348,419 | 764,072 |
Foreign currency translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (193,662) | (56,820) | (127,711) | (38,767) |
Other comprehensive income (loss) before reclassifications | 20,151 | 37,883 | (45,800) | 19,830 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Total other comprehensive (loss) income | 20,151 | 37,883 | (45,800) | 19,830 |
Ending balance | (173,511) | (18,937) | (173,511) | (18,937) |
Unrealized gains on securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 850,541 | 697,104 | 793,082 | 526,071 |
Other comprehensive income (loss) before reclassifications | (229,606) | 136,137 | (176,083) | 296,159 |
Amounts reclassified from accumulated other comprehensive income | 6,542 | 3,797 | 10,478 | 14,808 |
Total other comprehensive (loss) income | (223,064) | 139,934 | (165,605) | 310,967 |
Ending balance | 627,477 | 837,038 | 627,477 | 837,038 |
OTTI | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 25,700 | 28,067 | 26,594 | 26,427 |
Other comprehensive income (loss) before reclassifications | (657) | 764 | 120 | 2,404 |
Amounts reclassified from accumulated other comprehensive income | 376 | (20) | (1,295) | (20) |
Total other comprehensive (loss) income | (281) | 744 | (1,175) | 2,384 |
Ending balance | 25,419 | 28,811 | 25,419 | 28,811 |
Pension under- funding | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (133,582) | (84,870) | (136,198) | (86,901) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | (1) | 0 |
Amounts reclassified from accumulated other comprehensive income | 2,616 | 2,030 | 5,233 | 4,061 |
Total other comprehensive (loss) income | 2,616 | 2,030 | 5,232 | 4,061 |
Ending balance | $ (130,966) | $ (82,840) | $ (130,966) | $ (82,840) |
Accumulated Other Comprehensi52
Accumulated Other Comprehensive Income (Reclassification out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net realized gains on investments | $ 11,999 | $ 6,117 | $ 18,524 | $ 25,868 | |
Portion of net loss recognized in other comprehensive income, before taxes | 0 | (10) | (638) | (39) | |
Income before provision for income taxes | 40,025 | 193,787 | 123,218 | 429,040 | |
Provision for income taxes | (7,236) | (50,177) | (40,385) | (148,185) | |
Net income | 32,789 | 143,610 | 82,833 | 280,855 | |
Reclassification out of Accumulated Other Comprehensive Income | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net income | 9,534 | 5,808 | 14,416 | 18,850 | |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized gains on securities | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net realized gains on investments | 10,064 | 5,841 | 16,120 | 22,781 | |
Provision for income taxes | (3,522) | (2,044) | (5,642) | (7,973) | |
Net income | 6,542 | 3,797 | 10,478 | 14,808 | |
Reclassification out of Accumulated Other Comprehensive Income | OTTI | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Portion of net loss recognized in other comprehensive income, before taxes | 578 | (30) | (1,992) | (30) | |
Provision for income taxes | (202) | 10 | 697 | 10 | |
Net income | 376 | (20) | (1,295) | (20) | |
Reclassification out of Accumulated Other Comprehensive Income | Pension under- funding | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Amortization of prior service cost | [1] | (25) | (25) | (50) | (50) |
Amortization of net loss | [1] | 4,050 | 3,150 | 8,100 | 6,300 |
Income before provision for income taxes | 4,025 | 3,125 | 8,050 | 6,250 | |
Provision for income taxes | (1,409) | (1,094) | (2,817) | (2,188) | |
Net income | $ 2,616 | $ 2,031 | $ 5,233 | $ 4,062 | |
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 13 - Retirement and Other Employee Benefits for additional information. |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Jul. 31, 2015 | Jan. 31, 2015 | Jul. 31, 2014 | Jan. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | May. 31, 2010 | |
Long-Term Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Company's common stock authorized to employees | 5,300,000 | ||||||||
Long-Term Equity Incentive Plan | Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period (in years) | 3 years | ||||||||
Number of awards granted | 54,576 | 42,470 | 339,398 | 329,339 | |||||
Compensation expense | $ 5,951,000 | $ 6,148,000 | $ 10,459,000 | $ 10,977,000 | |||||
Compensation expenses income tax benefit | 2,082,000 | 2,149,000 | $ 3,660,000 | $ 3,834,000 | |||||
Weighted average grant date fair value (in dollars per share) | $ 62.22 | $ 65.26 | |||||||
Unrecognized compensation cost | 24,009,000 | $ 24,009,000 | |||||||
Unrecognized compensation cost expected to be recognized over a weighted-average period (in years) | 1 year 4 months 27 days | ||||||||
Fair value of awards vested and issued during the period | 4,959,000 | $ 2,616,000 | $ 24,474,000 | $ 30,824,000 | |||||
Long-Term Equity Incentive Plan | Performance Share Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of payout level minimum | 0.00% | ||||||||
Percentage of payout level maximum | 150.00% | ||||||||
Percentage of payout level target | 100.00% | ||||||||
Revenues benchmark for performance payout (less than) | $ 1,000,000,000 | $ 1,000,000,000 | |||||||
Number of awards granted | 0 | 0 | 355,688 | 379,174 | |||||
Compensation expense | $ 1,266,000 | $ 10,109,000 | $ 2,332,000 | $ 13,562,000 | |||||
Compensation expenses income tax benefit | 440,000 | 3,534,000 | $ 813,000 | $ 4,736,000 | |||||
Weighted average grant date fair value (in dollars per share) | $ 61.82 | $ 64.93 | |||||||
Unrecognized compensation cost | $ 24,834,000 | $ 24,834,000 | |||||||
Unrecognized compensation cost expected to be recognized over a weighted-average period (in years) | 1 year 1 month 22 days | ||||||||
Employee Stock Purchase Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Company's common stock authorized to employees | 5,000,000 | 5,000,000 | |||||||
Compensation expense | $ 316,000 | $ 292,000 | $ 632,000 | $ 585,000 | |||||
Purchase shares discount | 10.00% | ||||||||
Common shares issued | 65,302 | 65,867 | 75,709 | ||||||
Discounted price of shares issued | $ 59.65 | $ 58.79 | $ 46.36 | ||||||
Non-Employee Director | Long-Term Equity Incentive Plan | Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period (in years) | 3 years | ||||||||
Tranche One | Long-Term Equity Incentive Plan | Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting increments | 33.33% | ||||||||
Tranche One | Non-Employee Director | Long-Term Equity Incentive Plan | Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting increments | 33.33% | ||||||||
Tranche Two | Long-Term Equity Incentive Plan | Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting increments | 33.33% | ||||||||
Tranche Two | Non-Employee Director | Long-Term Equity Incentive Plan | Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting increments | 33.33% | ||||||||
Tranche Three | Long-Term Equity Incentive Plan | Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting increments | 33.33% | ||||||||
Tranche Three | Non-Employee Director | Long-Term Equity Incentive Plan | Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting increments | 33.33% | ||||||||
Subsequent Event | Employee Stock Purchase Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common shares issued | 65,320 | ||||||||
Discounted price of shares issued | $ 60.30 |
Stock Repurchase (Schedule of S
Stock Repurchase (Schedule of Shares Repurchased) (Details) - $ / shares | 1 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015 | May. 31, 2015 | Apr. 30, 2015 | Mar. 31, 2015 | Feb. 28, 2015 | Jan. 31, 2015 | Jun. 30, 2015 | |
Class of Stock Disclosures [Abstract] | |||||||
Number of Shares Repurchased (in shares) | 482,586 | 472,000 | 640,000 | 645,000 | 120,000 | 529,100 | 2,888,686 |
Average Price Paid Per Share (in dollars per share) | $ 67.19 | $ 64.89 | $ 61.20 | $ 61.50 | $ 61.07 | $ 65.51 | $ 63.66 |
Total Number of Shares Repurchased as Part of Publicly Announced Programs (in shares) | 482,586 | 472,000 | 640,000 | 645,000 | 120,000 | 529,100 | 2,888,686 |
Stock Repurchase (Narrative) (D
Stock Repurchase (Narrative) (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2015 | May. 31, 2015 | Apr. 30, 2015 | Mar. 31, 2015 | Feb. 28, 2015 | Jan. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Nov. 15, 2013 | |
Class of Stock Disclosures [Abstract] | |||||||||
Stock repurchase, additional authorized amount (up to) | $ 600,000,000 | ||||||||
Value remaining under total repurchase authorization | $ 302,842,000 | $ 302,842,000 | $ 486,670,000 | $ 752,436,000 | |||||
Number of shares repurchased | 482,586 | 472,000 | 640,000 | 645,000 | 120,000 | 529,100 | 2,888,686 | ||
Shares repurchased, value | $ 183,828,000 |
Earnings Per Common Share (Net
Earnings Per Common Share (Net Income, Weighted Average Common Shares Used in Calculating Basic Earnings Per Common Share and Diluted EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator | ||||
Net income | $ 32,789 | $ 143,610 | $ 82,833 | $ 280,855 |
Deduct dividends paid | (21,616) | (20,753) | (40,450) | (38,933) |
Undistributed earnings | $ 11,173 | $ 122,857 | $ 42,383 | $ 241,922 |
Denominator | ||||
Weighted average shares outstanding used in basic earnings per share (in shares) | 68,558,472 | 72,659,590 | 69,161,001 | 72,753,651 |
Incremental common shares from: | ||||
Weighted average shares used in diluted earnings per share calculations (in shares) | 69,244,399 | 73,544,191 | 69,946,364 | 73,735,399 |
Earnings per common share - Basic | ||||
Distributed earnings - Basic (in dollars per share) | $ 0.30 | $ 0.27 | $ 0.57 | $ 0.52 |
Undistributed earnings - Basic (in dollars per share) | 0.18 | 1.71 | 0.63 | 3.34 |
Net Income - Basic (in dollars per share) | 0.48 | 1.98 | 1.20 | 3.86 |
Earnings per common share - Diluted | ||||
Distributed earnings - Diluted (in dollars per share) | 0.30 | 0.27 | 0.57 | 0.52 |
Undistributed earnings - Diluted (in dollars per share) | 0.17 | 1.68 | 0.61 | 3.29 |
Net income - Diluted (in dollars per share) | $ 0.47 | $ 1.95 | $ 1.18 | $ 3.81 |
PSUs | ||||
Incremental common shares from: | ||||
Incremental common shares (in shares) | 621,327 | 824,901 | 720,763 | 922,048 |
ESPPs | ||||
Incremental common shares from: | ||||
Incremental common shares (in shares) | 64,600 | 59,700 | 64,600 | 59,700 |
Earnings Per Common Share (Narr
Earnings Per Common Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
PSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Outstanding anti-dilutive shares excluded from computation of diluted EPS | 0 | 0 | 0 | 0 |
Retirement and Other Employee58
Retirement and Other Employee Benefits (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Qualified Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 9,750 | $ 8,200 | $ 19,500 | $ 16,400 | |
Interest cost | 9,050 | 9,150 | 18,100 | 18,300 | |
Expected return on plan assets | (13,725) | (12,350) | (27,450) | (24,700) | |
Amortization of prior service cost | 0 | 0 | 0 | 0 | |
Amortization of net loss (gain) | 3,325 | 2,275 | 6,650 | 4,550 | |
Curtailment/settlement charge | 0 | 0 | 0 | 0 | |
Net periodic benefit cost | 8,400 | 7,275 | 16,800 | 14,550 | |
Nonqualified Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | [1] | 1,125 | 1,000 | 2,250 | 2,000 |
Interest cost | [1] | 1,350 | 1,500 | 2,700 | 3,000 |
Expected return on plan assets | [1] | 0 | 0 | 0 | 0 |
Amortization of prior service cost | [1] | 200 | 200 | 400 | 400 |
Amortization of net loss (gain) | [1] | 725 | 925 | 1,450 | 1,850 |
Curtailment/settlement charge | [1] | 400 | 0 | 800 | 0 |
Net periodic benefit cost | [1] | 3,800 | 3,625 | 7,600 | 7,250 |
Retirement Health Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 625 | 600 | 1,250 | 1,200 | |
Interest cost | 950 | 975 | 1,900 | 1,950 | |
Expected return on plan assets | (825) | (775) | (1,650) | (1,550) | |
Amortization of prior service cost | (225) | (225) | (450) | (450) | |
Amortization of net loss (gain) | 0 | (50) | 0 | (100) | |
Curtailment/settlement charge | 0 | 0 | 0 | 0 | |
Net periodic benefit cost | $ 525 | $ 525 | $ 1,050 | $ 1,050 | |
[1] | The Company’s nonqualified plan is unfunded. |
Retirement and Other Employee59
Retirement and Other Employee Benefits (Narrative) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||
Qualified pension benefits plan under-funded amount | $ (8,374,000) | $ (28,956,000) |
Funded status percentage | 99.00% | 97.00% |
Cash contribution to qualified pension benefits plan | $ 10,750,000 | |
Cash expected contribution to plan over remainder of 2015 (up to) | $ 0 |
Segment Information (Financial
Segment Information (Financial Information by Segment) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)segment | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | ||||
Segment Reporting [Abstract] | ||||||||
Number of reportable segments | segment | 5 | |||||||
Segment Reporting Information [Line Items] | ||||||||
Net earned premiums | $ 2,138,258 | $ 2,171,734 | $ 4,297,820 | $ 4,232,196 | ||||
Net investment income | 167,786 | 167,508 | 320,059 | 335,566 | ||||
Net realized gains on investments | 11,999 | 6,087 | 15,954 | 25,838 | ||||
Amortization of deferred gain on disposal of businesses | 3,242 | 3,644 | 6,500 | 7,304 | ||||
Fees and other income | 323,609 | 259,128 | 603,171 | 455,569 | ||||
Total revenues | 2,644,894 | 2,608,101 | 5,243,504 | 5,056,473 | ||||
Policyholder benefits | 1,267,714 | 1,149,613 | 2,478,441 | 2,157,645 | ||||
Amortization of deferred acquisition costs and value of business acquired | 353,883 | 366,589 | 722,886 | 711,371 | ||||
Underwriting, general and administrative expenses | 969,494 | 884,336 | 1,891,403 | 1,727,576 | ||||
Interest expense | 13,778 | 13,776 | 27,556 | 30,841 | ||||
Total benefits, losses and expenses | 2,604,869 | 2,414,314 | 5,120,286 | 4,627,433 | ||||
Income before provision for income taxes | 40,025 | 193,787 | 123,218 | 429,040 | ||||
Provision (benefit) for income taxes | 7,236 | 50,177 | 40,385 | 148,185 | ||||
Net income | 32,789 | 143,610 | 82,833 | 280,855 | ||||
Segment assets, excluding goodwill | $ 30,721,227 | |||||||
Goodwill | 842,202 | 842,202 | 841,239 | |||||
Total assets | 30,842,082 | [1] | 30,842,082 | [1] | 31,562,466 | |||
Operating Segments | Solutions | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net earned premiums | 752,604 | 770,319 | 1,507,081 | 1,522,986 | ||||
Net investment income | 99,976 | 97,563 | 192,167 | 192,248 | ||||
Net realized gains on investments | 0 | 0 | 0 | 0 | ||||
Amortization of deferred gain on disposal of businesses | 0 | 0 | 0 | 0 | ||||
Fees and other income | 178,578 | 163,107 | 351,646 | 304,461 | ||||
Total revenues | 1,031,158 | 1,030,989 | 2,050,894 | 2,019,695 | ||||
Policyholder benefits | 235,099 | 268,945 | 450,647 | 524,908 | ||||
Amortization of deferred acquisition costs and value of business acquired | 276,823 | 274,017 | 541,855 | 536,913 | ||||
Underwriting, general and administrative expenses | 437,917 | 401,343 | 897,201 | 796,743 | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Total benefits, losses and expenses | 949,839 | 944,305 | 1,889,703 | 1,858,564 | ||||
Income before provision for income taxes | 81,319 | 86,684 | 161,191 | 161,131 | ||||
Provision (benefit) for income taxes | 20,504 | 27,151 | 46,017 | 52,129 | ||||
Net income | 60,815 | 59,533 | 115,174 | 109,002 | ||||
Segment assets, excluding goodwill | 14,260,609 | |||||||
Total assets | [1] | 14,583,286 | 14,583,286 | |||||
Operating Segments | Specialty Property | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net earned premiums | 532,022 | 633,328 | 1,060,468 | 1,256,700 | ||||
Net investment income | 25,443 | 25,301 | 45,958 | 53,176 | ||||
Net realized gains on investments | 0 | 0 | 0 | 0 | ||||
Amortization of deferred gain on disposal of businesses | 0 | 0 | 0 | 0 | ||||
Fees and other income | 106,128 | 81,005 | 190,364 | 121,764 | ||||
Total revenues | 663,593 | 739,634 | 1,296,790 | 1,431,640 | ||||
Policyholder benefits | 214,605 | 308,611 | 419,208 | 571,729 | ||||
Amortization of deferred acquisition costs and value of business acquired | 66,111 | 84,814 | 158,180 | 158,833 | ||||
Underwriting, general and administrative expenses | 252,495 | 242,797 | 476,107 | 450,248 | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Total benefits, losses and expenses | 533,211 | 636,222 | 1,053,495 | 1,180,810 | ||||
Income before provision for income taxes | 130,382 | 103,412 | 243,295 | 250,830 | ||||
Provision (benefit) for income taxes | 42,848 | 35,102 | 80,674 | 84,779 | ||||
Net income | 87,534 | 68,310 | 162,621 | 166,051 | ||||
Segment assets, excluding goodwill | 4,010,393 | |||||||
Total assets | [1] | 3,860,952 | 3,860,952 | |||||
Operating Segments | Health | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net earned premiums | 584,443 | 505,257 | 1,194,185 | 928,021 | ||||
Net investment income | 7,014 | 10,365 | 14,021 | 19,226 | ||||
Net realized gains on investments | 0 | 0 | 0 | 0 | ||||
Amortization of deferred gain on disposal of businesses | 0 | 0 | 0 | 0 | ||||
Fees and other income | 17,047 | 8,983 | 33,023 | 17,194 | ||||
Total revenues | 608,504 | 524,605 | 1,241,229 | 964,441 | ||||
Policyholder benefits | 625,323 | 394,841 | 1,230,086 | 705,614 | ||||
Amortization of deferred acquisition costs and value of business acquired | 2,917 | 76 | 7,190 | 248 | ||||
Underwriting, general and administrative expenses | 158,608 | 122,177 | 287,786 | 243,409 | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Total benefits, losses and expenses | 786,848 | 517,094 | 1,525,062 | 949,271 | ||||
Income before provision for income taxes | (178,344) | 7,511 | (283,833) | 15,170 | ||||
Provision (benefit) for income taxes | (54,569) | 10,013 | (76,089) | 24,741 | ||||
Net income | (123,775) | (2,502) | (207,744) | (9,571) | ||||
Segment assets, excluding goodwill | 1,210,615 | |||||||
Total assets | [1] | 1,492,149 | 1,492,149 | |||||
Operating Segments | Employee Benefits | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net earned premiums | 269,189 | 262,830 | 536,086 | 524,489 | ||||
Net investment income | 30,020 | 29,660 | 57,841 | 61,055 | ||||
Net realized gains on investments | 0 | 0 | 0 | 0 | ||||
Amortization of deferred gain on disposal of businesses | 0 | 0 | 0 | 0 | ||||
Fees and other income | 6,460 | 5,993 | 12,734 | 12,027 | ||||
Total revenues | 305,669 | 298,483 | 606,661 | 597,571 | ||||
Policyholder benefits | 192,687 | 177,216 | 378,500 | 355,394 | ||||
Amortization of deferred acquisition costs and value of business acquired | 8,032 | 7,682 | 15,661 | 15,377 | ||||
Underwriting, general and administrative expenses | 88,241 | 90,711 | 179,580 | 181,948 | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Total benefits, losses and expenses | 288,960 | 275,609 | 573,741 | 552,719 | ||||
Income before provision for income taxes | 16,709 | 22,874 | 32,920 | 44,852 | ||||
Provision (benefit) for income taxes | 5,441 | 8,442 | 11,504 | 16,505 | ||||
Net income | 11,268 | 14,432 | 21,416 | 28,347 | ||||
Segment assets, excluding goodwill | 2,242,145 | |||||||
Total assets | [1] | 2,259,811 | 2,259,811 | |||||
Operating Segments | Corporate & Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net earned premiums | 0 | 0 | 0 | 0 | ||||
Net investment income | 5,333 | 4,619 | 10,072 | 9,861 | ||||
Net realized gains on investments | 11,999 | 6,087 | 15,954 | 25,838 | ||||
Amortization of deferred gain on disposal of businesses | 3,242 | 3,644 | 6,500 | 7,304 | ||||
Fees and other income | 15,396 | 40 | 15,404 | 123 | ||||
Total revenues | 35,970 | 14,390 | 47,930 | 43,126 | ||||
Policyholder benefits | 0 | 0 | 0 | 0 | ||||
Amortization of deferred acquisition costs and value of business acquired | 0 | 0 | 0 | 0 | ||||
Underwriting, general and administrative expenses | 32,233 | 27,308 | 50,729 | 55,228 | ||||
Interest expense | 13,778 | 13,776 | 27,556 | 30,841 | ||||
Total benefits, losses and expenses | 46,011 | 41,084 | 78,285 | 86,069 | ||||
Income before provision for income taxes | (10,041) | (26,694) | (30,355) | (42,943) | ||||
Provision (benefit) for income taxes | (6,988) | (30,531) | (21,721) | (29,969) | ||||
Net income | (3,053) | $ 3,837 | (8,634) | $ (12,974) | ||||
Segment assets, excluding goodwill | $ 8,997,465 | |||||||
Total assets | [1] | $ 8,645,884 | $ 8,645,884 | |||||
[1] | As of December 31, 2014, all goodwill on Assurant's balance sheet was held in the Corporate & Other segment. Beginning January 1, 2015, goodwill is included on the respective segment balance sheets. |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015USD ($)state | Dec. 31, 2014USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Letters of credit outstanding | $ 20,670 | $ 17,871 |
Number of states participating in examination | state | 46 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax [Line Items] | ||||
Decrease in effective tax rate due to an international reorganization (basis points) | 6.86% | |||
One-time tax benefit from conversion of certain U.S. companies with branch operations in Canada to foreign corporate entities | $ 20,753 | |||
Provision (benefit) for income taxes | $ 7,236 | $ 50,177 | $ 40,385 | $ 148,185 |
Increase in effective tax rate (basis points) | 1.34% | |||
Solutions | ||||
Income Tax [Line Items] | ||||
Net tax benefit due to international reorganization | $ 8,448 | |||
Assurant Health | Compensation Expenses | ||||
Income Tax [Line Items] | ||||
Provision (benefit) for income taxes | $ 5,749 |
Catastrophe Bond Program (Detai
Catastrophe Bond Program (Details) | Jun. 26, 2013USD ($)reinsurance_agreement | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) |
June 26, 2013 Ibis Re II Ltd. Agreement | |||
Reinsurance Retention Policy [Line Items] | |||
Ceded Losses | $ 0 | $ 0 | |
Individual Hurricane Coverage | June 26, 2013 Ibis Re II Ltd. Agreement | |||
Reinsurance Retention Policy [Line Items] | |||
Number of reinsurance agreements | reinsurance_agreement | 3 | ||
Reinsurance coverage (up to) | $ 185,000,000 | ||
Reinsurance coverage period | 3 years | ||
First event coverage percentage | 14.00% | ||
Ibis Re II | Senior 2013-1 Notes | |||
Reinsurance Retention Policy [Line Items] | |||
Issuance amount | $ 185,000,000 |