Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Primerica, Inc. | |
Entity Central Index Key | 1,475,922 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 48,361,806 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | ||
Investments: | ||||
Fixed-maturity securities available-for-sale, at fair value (amortized cost: $1,641,568 in 2015 and $1,667,500 in 2014) | $ 1,683,166 | [1] | $ 1,759,120 | [2] |
Fixed-maturity securities held-to-maturity, at amortized cost (fair value: $357,153 in 2015 and $228,809 in 2014) | 356,000 | 220,000 | ||
Equity securities available-for-sale, at fair value (cost: $40,571 in 2015 and $43,738 in 2014) | 45,780 | 53,390 | ||
Trading securities, at fair value (cost: $6,556 in 2015 and $7,710 in 2014) | 6,534 | 7,711 | ||
Policy loans | 28,599 | 28,095 | ||
Total investments | 2,120,079 | 2,068,316 | ||
Cash and cash equivalents | 160,561 | 191,997 | ||
Accrued investment income | 17,800 | 17,401 | ||
Due from reinsurers | 4,103,949 | 4,115,533 | ||
Deferred policy acquisition costs, net | 1,465,175 | 1,351,180 | ||
Premiums and other receivables | 198,846 | 181,660 | ||
Intangible assets, net (accumulated amortization: $70,978 in 2015 and $68,426 in 2014) | 59,168 | 61,720 | ||
Deferred income taxes | 35,859 | 36,082 | ||
Other assets | 314,830 | 273,403 | ||
Separate account assets | 2,086,598 | 2,440,303 | ||
Total assets | 10,562,865 | 10,737,595 | ||
Liabilities: | ||||
Future policy benefits | 5,388,042 | 5,264,608 | ||
Unearned premiums | 665 | 912 | ||
Policy claims and other benefits payable | 222,720 | 245,829 | ||
Other policyholders’ funds | 351,879 | 344,313 | ||
Notes payable | 374,572 | 374,532 | ||
Surplus note | 356,000 | 220,000 | ||
Income taxes | 152,315 | 140,467 | ||
Other liabilities | 400,173 | 411,294 | ||
Payable under securities lending | 83,220 | 50,211 | ||
Separate account liabilities | $ 2,086,598 | $ 2,440,303 | ||
Commitments and contingent liabilities (see Commitments and Contingent Liabilities note) | ||||
Total liabilities | $ 9,416,184 | $ 9,492,469 | ||
Stockholders’ equity: | ||||
Common stock ($0.01 par value; authorized 500,000 in 2015 and 2014; issued and outstanding 48,571 shares in 2015 and 52,169 shares in 2014) | 486 | 522 | ||
Paid-in capital | 195,314 | 353,337 | ||
Retained earnings | 912,749 | 795,740 | ||
Accumulated other comprehensive income (loss), net of income tax: | ||||
Unrealized foreign currency translation gains (losses) | (11,684) | 21,681 | ||
Net unrealized investment gains (losses): | ||||
Net unrealized investment gains not other-than-temporarily impaired | 49,889 | 74,308 | ||
Net unrealized investment losses other-than-temporarily impaired | (73) | (462) | ||
Total stockholders’ equity | 1,146,681 | 1,245,126 | ||
Total liabilities and stockholders’ equity | $ 10,562,865 | $ 10,737,595 | ||
[1] | (1) Includes approximately $0.1 million of other-than-temporary impairment losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. | |||
[2] | Includes approximately $0.7 million of other-than-temporary impairment losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | ||
Investments: | ||||
Fixed-maturity securities available for sale, amortized cost | $ 1,641,568 | [1] | $ 1,667,500 | [2] |
Fixed-maturity securities held to maturity, fair value | 357,153 | 228,809 | ||
Equity securities available for sale, cost | 40,571 | 43,738 | ||
Trading securities, cost | 6,556 | 7,710 | ||
Intangible assets, net | ||||
Accumulated amortization on definite-lived intangible assets | $ 70,978 | $ 68,426 | ||
Stockholders’ equity: | ||||
Common stock, par value | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 500,000,000 | 500,000,000 | ||
Common stock, shares issued | 48,571,000 | 52,169,000 | ||
Common stock, shares outstanding | 48,571,000 | 52,169,000 | ||
[1] | (1) Includes approximately $0.1 million of other-than-temporary impairment losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. | |||
[2] | Includes approximately $0.7 million of other-than-temporary impairment losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Revenues: | |||||
Direct premiums | $ 587,882 | $ 577,482 | $ 1,753,589 | $ 1,722,427 | |
Ceded premiums | (393,987) | (402,198) | (1,198,382) | (1,215,459) | |
Net premiums | 193,895 | 175,284 | 555,207 | 506,968 | |
Commissions and fees | 132,368 | 132,928 | 404,353 | 391,898 | |
Investment income net of investment expenses | 22,487 | 21,764 | 67,918 | 65,044 | |
Interest expense on surplus note | (3,772) | (1,299) | (8,954) | (1,299) | |
Net investment income | 18,715 | 20,465 | 58,964 | 63,745 | |
Realized investment gains (losses), including other-than- temporary impairment losses | (259) | (281) | 1,623 | 813 | |
Other, net | 11,105 | 10,445 | 31,041 | 30,137 | |
Total revenues | 355,824 | 338,841 | 1,051,188 | 993,561 | |
Benefits and expenses: | |||||
Benefits and claims | 88,599 | 81,235 | 253,621 | 228,839 | |
Amortization of deferred policy acquisition costs | 40,797 | 36,944 | 113,392 | 104,834 | |
Sales commissions | 67,402 | 67,500 | 207,358 | 199,985 | |
Insurance expenses | 30,261 | 31,149 | 93,353 | 87,106 | |
Insurance commissions | 4,619 | 4,045 | 11,953 | 12,009 | |
Interest expense | 8,718 | 8,712 | 26,036 | 25,870 | |
Other operating expenses | 40,475 | 45,236 | 126,887 | 128,325 | |
Total benefits and expenses | 280,871 | 274,821 | 832,600 | 786,968 | |
Income from continuing operations before income taxes | 74,953 | 64,020 | 218,588 | 206,593 | |
Income taxes | 25,603 | 22,407 | 76,664 | 72,224 | |
Income from continuing operations | 49,350 | 41,613 | 141,924 | 134,369 | |
Income (loss) from discontinued operations, net of income taxes | (18) | 1,578 | |||
Net income | $ 49,350 | $ 41,595 | $ 141,924 | $ 135,947 | |
Basic earnings per share: | |||||
Continuing operations | $ 0.98 | $ 0.75 | $ 2.73 | $ 2.42 | |
Discontinued operations | 0.03 | ||||
Basic earnings per share | 0.98 | 0.75 | 2.73 | 2.45 | |
Diluted earnings per share: | |||||
Continuing operations | 0.98 | 0.75 | 2.73 | 2.41 | |
Discontinued operations | [1] | 0.03 | |||
Diluted earnings per share | $ 0.98 | $ 0.75 | $ 2.73 | $ 2.44 | |
Weighted-average shares used in computing earnings per share: | |||||
Basic | 50,082 | 54,713 | 51,494 | 54,953 | |
Diluted | 50,104 | 54,744 | 51,526 | 54,978 | |
Supplemental disclosures: | |||||
Total impairment losses | $ (1,564) | $ (515) | $ (2,433) | $ (885) | |
Net impairment losses recognized in earnings | (1,564) | (515) | (2,433) | (885) | |
Other net realized investment gains | 1,305 | 234 | 4,056 | 1,698 | |
Realized investment gains (losses), including other-than- temporary impairment losses | $ (259) | $ (281) | $ 1,623 | $ 813 | |
Dividends declared per share | $ 0.16 | $ 0.12 | $ 0.48 | $ 0.36 | |
[1] | Less than $0.01 for the three months ended September 30, 2014. |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 49,350 | $ 41,595 | $ 141,924 | $ 135,947 |
Unrealized investment gains (losses): | ||||
Change in unrealized holding gains (losses) on investment securities | (18,019) | (20,132) | (35,078) | 18,590 |
Reclassification adjustment for realized investment (gains) losses included in net income | 381 | 80 | (1,892) | (686) |
Foreign currency translation adjustments: | ||||
Change in unrealized foreign currency translation losses before income tax expense (benefit) of $(171) and $(366) in 2015 and $(131) and $(139) in 2014 | (16,323) | (11,600) | (33,731) | (11,832) |
Total other comprehensive income (loss) before income taxes | (33,961) | (31,652) | (70,701) | 6,072 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | (6,345) | (7,150) | (13,306) | 6,128 |
Other comprehensive loss, net of income taxes | (27,616) | (24,502) | (57,395) | (56) |
Total comprehensive income | $ 21,734 | $ 17,093 | $ 84,529 | $ 135,891 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Loss) Parenthetical - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Change in unrealized foreign currency translation losses, income tax expense (benefit) | $ (171) | $ (131) | $ (366) | $ (139) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance, beginning of period at Dec. 31, 2013 | $ 548 | $ 472,633 | $ 640,840 | $ 108,006 | |
Repurchases of common stock | (15) | (71,838) | |||
Net issuance of common stock | 4 | (4) | |||
Balance, end of period at Sep. 30, 2014 | $ 1,294,482 | 537 | 429,257 | 756,738 | 107,950 |
Share-based compensation | 29,459 | ||||
Adjustments to paid-in capital, other | (993) | ||||
Net income | 135,947 | 135,947 | |||
Dividends | (20,049) | ||||
Change in foreign currency translation adjustment, net of income tax expense (benefit) of $(366) in 2015 and $(139) in 2014 | (11,693) | ||||
Change in net unrealized investment gains (losses) not-other-than temporarily impaired, net of income tax expense (benefit) of $(13,148) in 2015 and $5,790 in 2014 | 10,752 | ||||
Change in net unrealized investment losses other-than-temporarily impaired, net of income tax expense (benefit) of $208 in 2015 and $477 in 2014 | 885 | ||||
Balance, beginning of period at Dec. 31, 2014 | 1,245,126 | 522 | 353,337 | 795,740 | 95,527 |
Repurchases of common stock | (41) | (187,180) | |||
Net issuance of common stock | 5 | (5) | |||
Balance, end of period at Sep. 30, 2015 | 1,146,681 | $ 486 | 195,314 | 912,749 | $ 38,132 |
Share-based compensation | 28,073 | ||||
Adjustments to paid-in capital, other | $ 1,089 | ||||
Net income | 141,924 | 141,924 | |||
Dividends | $ (24,915) | ||||
Change in foreign currency translation adjustment, net of income tax expense (benefit) of $(366) in 2015 and $(139) in 2014 | (33,365) | ||||
Change in net unrealized investment gains (losses) not-other-than temporarily impaired, net of income tax expense (benefit) of $(13,148) in 2015 and $5,790 in 2014 | (24,419) | ||||
Change in net unrealized investment losses other-than-temporarily impaired, net of income tax expense (benefit) of $208 in 2015 and $477 in 2014 | $ 389 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Stockholders' Equity - Parenthetical - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Change in foreign currency translation adjustment, income tax expense (benefit) | $ (366) | $ (139) |
Change in net unrealized investment gains (losses) not-other-than-temporarily impaired, income tax expense (benefit) | (13,810) | 5,550 |
Change in net unrealized investment losses other-than-temporarily impaired, income tax expense (benefit) | 208 | 477 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Change in foreign currency translation adjustment, income tax expense (benefit) | (366) | (139) |
Change in net unrealized investment gains (losses) not-other-than-temporarily impaired, income tax expense (benefit) | (13,148) | 5,790 |
Change in net unrealized investment losses other-than-temporarily impaired, income tax expense (benefit) | $ 208 | $ 477 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 141,924 | $ 135,947 |
Adjustments to reconcile net income to cash provided by (used in) operating activities: | ||
Change in future policy benefits and other policy liabilities | 165,492 | 200,406 |
Deferral of policy acquisition costs | (243,346) | (217,027) |
Amortization of deferred policy acquisition costs | 113,392 | 104,834 |
Change in income taxes | 31,349 | 17,714 |
Realized investment (gains) losses, including other-than-temporary impairments | (1,623) | (813) |
Gain from sale of business, net | (1,578) | |
Accretion and amortization of investments | (1,094) | (2,035) |
Depreciation and amortization | 8,201 | 8,611 |
Change in due from reinsurers | (33,248) | (93,109) |
Change in premiums and other receivables | (21,376) | (16,775) |
Trading securities sold, matured, or called (acquired), net | 1,143 | 3,818 |
Share-based compensation | 12,918 | 14,333 |
Change in other operating assets and liabilities, net | (32,740) | (22,846) |
Net cash provided by (used in) operating activities | 140,992 | 131,480 |
Available-for-sale investments sold, matured or called: | ||
Fixed-maturity securities — sold | 104,097 | 63,996 |
Fixed-maturity securities — matured or called | 201,722 | 237,335 |
Equity securities | 4,700 | 188 |
Available-for-sale investments acquired: | ||
Fixed-maturity securities | (264,457) | (318,987) |
Equity securities | (794) | (6,470) |
Purchases of property and equipment and other investing activities, net | (5,924) | (6,029) |
Proceeds from sale of business | 3,000 | |
Cash collateral received (returned) on loaned securities, net | 33,009 | (22,238) |
Sales (purchases) of short-term investments using securities lending collateral, net | (33,009) | 22,238 |
Net cash provided by (used in) investing activities | 39,344 | (26,967) |
Cash flows from financing activities: | ||
Dividends paid | (24,915) | (20,049) |
Common stock repurchased | (181,121) | (65,556) |
Excess tax benefits on share-based compensation | 4,624 | 4,651 |
Tax withholdings on share-based compensation | (6,101) | (6,297) |
Cash proceeds from stock options exercised | 136 | |
Payments of deferred financing costs | (864) | |
Net cash provided by (used in) financing activities | (207,377) | (88,115) |
Effect of foreign exchange rate changes on cash | (4,395) | (1,904) |
Change in cash and cash equivalents | (31,436) | 14,494 |
Cash and cash equivalents, beginning of period | 191,997 | 148,983 |
Cash and cash equivalents, end of period | $ 160,561 | $ 163,477 |
Description of Business, Basis
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies | (1) Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies Description of Business . Primerica, Inc. (the "Parent Company"), together with its subsidiaries (collectively, "we", "us" or the "Company"), is a leading distributor of financial products to middle income households in the United States and Canada. We assist our clients in meeting their needs for term life insurance, which we underwrite, and mutual funds, annuities and other financial products, which we distribute primarily on behalf of third parties. Our primary subsidiaries include the following entities: Primerica Financial Services, Inc. ("PFS"), a general agency and marketing company; Primerica Life Insurance Company ("Primerica Life"), our principal life insurance company; Primerica Financial Services (Canada) Ltd., a holding company for our Canadian operations, which includes Primerica Life Insurance Company of Canada ("Primerica Life Canada") and PFSL Investments Canada Ltd. ("PFSL Investments Canada"); and PFS Investments, Inc. ("PFS Investments") an investment products company and broker-dealer. Primerica Life, domiciled in Massachusetts, owns National Benefit Life Insurance Company ("NBLIC"), a New York insurance company. We established Peach Re, Inc. ("Peach Re") and Vidalia Re, Inc. (“Vidalia Re”) as special purpose financial captive insurance companies and wholly owned subsidiaries of Primerica Life. Peach Re and Vidalia Re have each entered into separate coinsurance agreements with Primerica Life whereby Primerica Life has ceded certain level premium term life insurance policies to Peach Re and Vidalia Re (respectively, the “Peach Re Coinsurance Agreement” and the “Vidalia Re Coinsurance Agreement”). Basis of Presentation . We prepare our financial statements in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). These principles are established primarily by the Financial Accounting Standards Board ("FASB"). The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect financial statement balances, revenues and expenses and cash flows, as well as the disclosure of contingent assets and liabilities. Management considers available facts and knowledge of existing circumstances when establishing the estimates included in our financial statements. The accompanying unaudited condensed consolidated financial statements contain all adjustments, generally consisting of normal recurring accruals, which are necessary to fairly present the balance sheets as of September 30, 2015 and December 31, 2014, the statements of income and comprehensive income (loss) for the three and nine months ended September 30, 2015 and 2014, and the statements of stockholders' equity and cash flows for the nine months ended September 30, 2015 and 2014. Results of operations for interim periods are not necessarily indicative of results for the entire year or of the results to be expected in future periods. These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are sufficient to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2014 ("2014 Annual Report"). Use of Estimates. The most significant items that involve a greater degree of accounting estimates and actuarial determinations subject to change in the future are the valuation of investments, deferred policy acquisition costs ("DAC"), liabilities for future policy benefits and unpaid policy claims, and income taxes. Estimates for these and other items are subject to change and are reassessed by management in accordance with U.S. GAAP. Actual results could differ from those estimates. Consolidation. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and those entities required to be consolidated under applicable accounting standards. All material intercompany profits, transactions, and balances among the consolidated entities have been eliminated. Reclassifications. Certain reclassifications have been made to prior-period amounts to conform to current-period reporting classifications. These reclassifications had no impact on net income or total stockholders' equity. Subsequent Events. The Company has evaluated subsequent events for recognition and disclosure for occurrences and transactions after the date of the unaudited condensed consolidated financial statements dated as of September 30, 2015. Significant Accounting Policies . All significant accounting policies remain unchanged from the 2014 Annual Report. New Accounting Principles. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Interest — Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). Debt issuance costs related to a recognized debt liability are currently presented as a deferred charge, or asset, within the balance sheet. ASU 2015-03 requires the presentation of debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The amendments in ASU 2015-03 are effective retrospectively for the Company beginning in fiscal year 2016, with early adoption permitted. The Company intends to adopt the amendments in ASU 2015-03 beginning in the first quarter of 2016. At September 30, 2015, the Company had debt issuance costs related to recognized liabilities of approximately $2.9 million within other assets on our unaudited condensed consolidated balance sheets that would be reclassified and presented as a direct deduction from the carrying amount of debt liabilities under ASU 2015-03. Future Application of Accounting Standards. Recent accounting guidance not discussed is not applicable, is immaterial to our financial statements, or did not or is not expected to have a material impact on our business. |
Segment and Geographical Inform
Segment and Geographical Information (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | (2) Segment and Geographical Information Segments. We have two primary operating segments — Term Life Insurance and Investment and Savings Products. We also have a Corporate and Other Distributed Products segment. Results of continuing operations by segment were as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Revenues: Term life insurance segment $ 197,200 $ 177,140 $ 563,784 $ 512,231 Investment and savings products segment 128,656 129,273 392,812 380,690 Corporate and other distributed products segment 29,968 32,428 94,592 100,640 Total revenues $ 355,824 $ 338,841 $ 1,051,188 $ 993,561 Income (loss) from continuing operations before income taxes: Term life insurance segment $ 46,519 $ 34,008 $ 127,284 $ 112,836 Investment and savings products segment 34,811 36,904 107,600 106,978 Corporate and other distributed products segment (6,377 ) (6,892 ) (16,296 ) (13,221 ) Total income from continuing operations before income taxes $ 74,953 $ 64,020 $ 218,588 $ 206,593 Total assets by segment were as follows: September 30, 2015 December 31, 2014 (In thousands) Assets: Term life insurance segment $ 5,594,135 $ 5,472,415 Investment and savings products segment (1) 2,191,581 2,545,372 Corporate and other distributed products segment 2,777,149 2,719,808 Total assets $ 10,562,865 $ 10,737,595 (1) The Investment and Savings Products segment includes assets held in separate accounts. Excluding separate accounts, the Investment and Savings Products segment assets were approximately $105.3 In the third quarter of 2015, the Company changed its basis for allocating net investment income, interest expense and invested assets between the Term Life Insurance segment and the Corporate and Other Distributed Products segment in measuring segment results and total assets by segment. Following this change, the amount of net investment income allocated to the Term Life Insurance segment equals the assumed net interest accreted to the segment’s U.S. GAAP-measured future policy benefit reserve liability less DAC. All remaining net investment income earned by the invested asset portfolio, as well as all invested assets held by the Company, has been allocated to the Corporate and Other Distributed Products segment. Concurrent with this change, all interest expense incurred by the Company has been attributed to the Corporate and Other Distributed Products segment, including the financing charge related to the letter of credit issued in connection with the Peach Re Coinsurance Agreement, the fee paid for the credit enhancement feature on the held-to-maturity security received in conjunction with the Vidalia Re Coinsurance Agreement, and the finance charge incurred pursuant to our 10% coinsurance agreement (the “10% Coinsurance Agreement”) with an affiliate of Citigroup Inc. (collectively, “the Finance Charges”). Prior to this change, invested assets were allocated to the Term Life Insurance segment based on the book value of the invested assets necessary to meet statutory reserve requirements. Net investment income was allocated based on the ratio of invested assets allocated to the Term Life Insurance segment and the remaining balances of invested assets and net investment income were attributed to the Corporate and Other Distributed Products segment. Interest expense incurred for the Finance Charges was allocated solely to the Term Life Insurance segment. The change in segment measurement more appropriately reflects the information used by the Company in assessing its performance and aligns with the operating strategy for managing the Term Life Insurance segment. The performance of the Term Life Insurance segment is focused on distribution and primarily evaluated by pricing margins with fluctuations for mortality, persistency, and expenses. Therefore, the impact of yields on the Company’s investment portfolio is not a key driver of the profitability of our Term Life Insurance segment. The use of captive insurance companies has provided the Company with an efficient method of supporting the portion of statutorily-prescribed term life insurance benefit reserves believed to be redundant. Accordingly, the net investment income earned by the Company’s invested assets is no longer aligned directly with the level of statutory reserves in the Term Life Insurance segment. As such, the updated measurement of segment results is also consistent with the Company’s strategies for managing capital, which have evolved over time with the use of captive insurance company financing transactions. The change in measurement of segment information increased total assets in the Corporate and Other Distributed Products segment and decreased total assets in the Term Life Insurance segment as follows: September 30, 2015 December 31, 2014 (In thousands) Assets Total assets reclassified from the Term Life Insurance segment to the Corporate and Other Distributed Products segment $ 1,908,452 $ 1,692,958 Net investment income included in segment revenues and segment income (loss) from continuing operations before income taxes that has been reclassified from the Term Life Insurance segment to the Corporate and Other Distributed Products segment was as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Revenue and income (loss) from continuing operations before income taxes: Net investment income reclassified from the Term Life Insurance segment to the Corporate and Other Distributed Products segment $ 16,904 $ 16,093 $ 49,475 $ 47,611 Interest expense recorded in segment income (loss) from continuing operations before income taxes that has been reclassified from the Term Life Insurance segment to the Corporate and Other Distributed Products segment was as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Income (loss) from continuing operations before income taxes: Interest expense reclassified from the Term Life Insurance segment to the Corporate and Other Distributed Products segment $ 4,174 $ 4,168 $ 12,404 $ 12,240 See “Management's Discussion and Analysis of Financial Condition and Results of Operations” included elsewhere in this report for more information regarding our operating segments. Geographical Information. Results of continuing operations by country and long-lived assets — primarily tangible assets reported in Other assets in our unaudited condensed consolidated balance sheets —were as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Revenues by country: United States $ 298,793 $ 278,102 $ 876,744 $ 811,226 Canada 57,031 60,739 174,444 182,335 Total revenues $ 355,824 $ 338,841 $ 1,051,188 $ 993,561 Income from continuing operations before income taxes by country: United States $ 61,116 $ 47,296 $ 170,172 $ 152,828 Canada 13,837 16,724 48,416 53,765 Total income from continuing operations before income taxes $ 74,953 $ 64,020 $ 218,588 $ 206,593 September 30, 2015 December 31, 2014 (In thousands) Long-lived assets by country: United States $ 27,065 $ 25,897 Canada 523 566 Total long-lived assets $ 27,588 $ 26,463 |
Investments (Notes)
Investments (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | (3) Investments Available-for-sale Securities. The period-end cost or amortized cost, gross unrealized gains and losses, and fair value of available-for-sale fixed-maturity and equity securities follow: September 30, 2015 Cost or amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) Securities available-for-sale, carried at fair value: Fixed-maturity securities: U.S. government and agencies $ 13,648 $ 575 $ (2 ) $ 14,221 Foreign government 122,518 2,338 (13,772 ) 111,084 States and political subdivisions 37,486 2,673 (493 ) 39,666 Corporates 1,255,973 63,039 (24,379 ) 1,294,633 Mortgage- and asset-backed securities 211,943 11,797 (178 ) 223,562 Total fixed-maturity securities (1) 1,641,568 80,422 (38,824 ) 1,683,166 Equity securities 40,571 7,327 (2,118 ) 45,780 Total fixed-maturity and equity securities $ 1,682,139 $ 87,749 $ (40,942 ) $ 1,728,946 (1) Includes approximately $0.1 December 31, 2014 Cost or amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) Securities available-for-sale, carried at fair value: Fixed-maturity securities: U.S. government and agencies $ 15,145 $ 557 $ (55 ) $ 15,647 Foreign government 120,910 5,388 (3,801 ) 122,497 States and political subdivisions 38,163 2,719 (188 ) 40,694 Corporates 1,241,526 82,167 (7,825 ) 1,315,868 Mortgage- and asset-backed securities 251,756 13,050 (392 ) 264,414 Total fixed-maturity securities (1) 1,667,500 103,881 (12,261 ) 1,759,120 Equity securities 43,738 10,711 (1,059 ) 53,390 Total fixed-maturity and equity securities $ 1,711,238 $ 114,592 $ (13,320 ) $ 1,812,510 (1) Includes approximately $0.7 million of other-than-temporary impairment losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. All of our available-for-sale mortgage- and asset-backed securities represent variable interests in variable interest entities ("VIEs"). We are not the primary beneficiary of these VIEs because we do not have the power to direct the activities that most significantly impact the entities’ economic performance. The maximum exposure to loss as a result of our involvement in these VIEs equals the carrying value of the securities. The scheduled contractual maturity distribution of the available-for-sale fixed-maturity portfolio at September 30, 2015 follows: Amortized cost Fair value (In thousands) Due in one year or less $ 87,321 $ 85,750 Due after one year through five years 619,132 649,602 Due after five years through 10 years 669,453 671,475 Due after 10 years 53,719 52,777 1,429,625 1,459,604 Mortgage- and asset-backed securities 211,943 223,562 Total fixed-maturity securities $ 1,641,568 $ 1,683,166 Expected maturities may differ from scheduled contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties. Unrealized Gains and Losses on Investments. The net effect on stockholders’ equity of unrealized gains and losses on investments was as follows: September 30, 2015 December 31, 2014 (In thousands) Net unrealized investment gains including foreign currency translation adjustment and other-than- temporary impairments: Fixed-maturity and equity securities $ 46,807 $ 101,272 Currency swaps - 23 Exclude unrealized foreign currency translation (gains) losses adjustment 29,832 12,314 Exclude other-than-temporary impairments 113 710 Net unrealized investment gains excluding foreign currency translation adjustment and other-than- temporary impairments 76,752 114,319 Deferred income taxes (26,863 ) (40,011 ) Net unrealized investment gains excluding foreign currency translation adjustment and other-than- temporary impairments, net of tax $ 49,889 $ 74,308 Trading Securities. We maintain a portfolio of fixed-maturity securities that are classified as trading securities. The carrying values of the fixed-maturity securities classified as trading securities were approximately $6.5 million and $7.7 million as of September 30, 2015 and December 31, 2014, respectively. Held-to-maturity Security. Concurrent with the execution of the Vidalia Re Coinsurance Agreement, Vidalia Re entered into a Surplus Note Purchase Agreement (the "Surplus Note Purchase Agreement") with Hannover Life Reassurance Company of America and certain of its affiliates (collectively, “Hannover Re”) and a newly formed limited liability company (the "LLC") owned by a third party service provider. Under the Surplus Note Purchase Agreement, Vidalia Re issued a surplus note (the “Surplus Note”) to the LLC in exchange for a credit enhanced note from the LLC with an equal principal amount (the “LLC Note”). The principal amount of both the LLC Note and the Surplus Note will fluctuate over time to coincide with the amount of reserves contractually supported under the Vidalia Re Coinsurance Agreement. Both the LLC Note and the Surplus Note mature on December 31, 2029 and bear interest at an annual interest rate of 4.50%. The LLC Note is guaranteed by Hannover Re through a credit enhancement feature in exchange for a fee, which is reflected in interest expense on our unaudited condensed consolidated statements of income. The LLC is a variable interest entity as its owner does not have an equity investment at risk that is sufficient to permit the LLC to finance its activities without Vidalia Re or Hannover Re. The Parent Company, Primerica Life, and Vidalia Re share the power to direct the activities of the LLC with Hannover Re, but do not have the obligation to absorb losses or the right to receive any residual returns related to the LLC’s primary risks or sources of variability. Through the credit enhancement feature, Hannover Re is the ultimate risk taker in this transaction and bears the obligation to absorb the LLC’s losses in the event of a Surplus Note default in exchange for the fee. Accordingly, the Company is not the primary beneficiary of the LLC and does not consolidate the LLC within its consolidated financial statements. The LLC Note is classified as a held-to-maturity debt security in the Company’s invested asset portfolio as we have the positive intent and ability to hold the security until maturity. As of September 30, 2015, the LLC Note, which was rated A+ by Fitch Ratings, had an estimated unrealized holding gain See Note 6 (Debt) for more information on the Surplus Note. Investments on Deposit with Governmental Authorities. As required by law, we have investments on deposit with governmental authorities and banks for the protection of policyholders. The fair values of investments on deposit were approximately $18.1 million and $19.9 million as of September 30, 2015 and December 31, 2014, respectively. Securities Lending Transactions. We participate in securities lending transactions with broker-dealers and other financial institutions to increase investment income with minimal risk. We require minimum collateral on securities loaned equal to 102% of the fair value of the loaned securities. We accept collateral in the form of securities, which we are not able to sell or encumber, and to the extent the collateral declines in value below 100%, we require additional collateral from the borrower. Any securities collateral received is not reflected on our unaudited condensed consolidated balance sheets. We also accept collateral in the form of cash, all of which we reinvest. For loans involving unrestricted cash collateral, the collateral is reported as an asset with a corresponding liability representing our obligation to return the collateral. We continue to carry the loaned securities as invested assets on our unaudited condensed consolidated balance sheets during the terms of the loans, and we do not report them as sales. Cash collateral received and reinvested was approximately $83.2 million and $50.2 million as of September 30, 2015 and December 31, 2014, respectively. Investment Income. The components of net investment income were as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Fixed-maturity securities (available-for-sale) $ 18,786 $ 20,933 $ 58,132 $ 62,419 Fixed-maturity security (held-to-maturity) 3,772 1,299 8,954 1,299 Equity securities 514 450 1,533 1,306 Policy loans and other invested assets 354 367 1,049 1,153 Cash and cash equivalents 51 70 141 191 Market return on deposit asset underlying 10% coinsurance agreement 220 (127 ) 1,776 2,316 Gross investment income 23,697 22,992 71,585 68,684 Investment expenses (1,210 ) (1,228 ) (3,667 ) (3,640 ) Investment income net of investment expenses 22,487 21,764 67,918 65,044 Interest expense on surplus note (3,772 ) (1,299 ) (8,954 ) (1,299 ) Net investment income $ 18,715 $ 20,465 $ 58,964 $ 63,745 The components of net realized investment gains (losses) as well as details on gross realized investment gains and losses and proceeds from sales or other redemptions were as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Net realized investment gains (losses): Gross gains from sales $ 1,209 $ 550 $ 4,610 $ 1,731 Gross losses from sales (26 ) (115 ) (285 ) (160 ) Other-than-temporary impairment losses (1,564 ) (515 ) (2,433 ) (885 ) Gains (losses) from bifurcated options 122 (201 ) (269 ) 127 Net realized investment gains (losses) $ (259 ) $ (281 ) $ 1,623 $ 813 Supplemental information: Tax expense (benefit) associated with unrealized holding gains (losses) recognized in other comprehensive income on investment securities $ (6,249 ) $ (7,468 ) $ (13,810 ) $ 5,550 Tax expense (benefit) associated with net unrealized investment losses other-than-temporarily impaired recognized in other comprehensive income 208 477 208 477 Tax expense (benefit) associated with realized investment gains (losses) reclassified from accumulated other comprehensive income into earnings (133 ) (28 ) 662 240 Proceeds from sales or other redemptions 96,285 92,130 310,519 301,519 Other-Than-Temporary Impairment. We conduct a review each quarter to identify and evaluate impaired investments that have indications of possible other-than-temporary impairment ("OTTI"). An investment in a debt or equity security is impaired if its fair value falls below its cost. Factors considered in determining whether an unrealized loss is temporary include the length of time and extent to which fair value has been below cost, the financial condition and near-term prospects for the issue, and our ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery, which may be maturity for fixed-maturity securities or within a reasonable period of time for equity securities. For additional information, see Note 4 (Investments) to the consolidated financial statements in our 2014 Annual Report. Available-for-sale fixed-maturity and equity securities with a cost basis in excess of their fair values were approximately $473.4 million and $340.8 million as of September 30, 2015 and December 31, 2014, respectively. The following tables summarize, for all available-for-sale securities in an unrealized loss position, the aggregate fair value and the gross unrealized loss by length of time such securities have continuously been in an unrealized loss position: September 30, 2015 Less than 12 months 12 months or longer Fair value Unrealized losses Number of securities Fair value Unrealized losses Number of securities (Dollars in thousands) Fixed-maturity securities: U.S. government and agencies $ 693 $ (2 ) 1 $ - $ - - Foreign government 43,742 (5,434 ) 44 32,348 (8,338 ) 53 States and political subdivisions - - - 884 (493 ) 2 Corporates 258,836 (13,546 ) 285 54,429 (10,833 ) 77 Mortgage-and asset-backed securities 22,400 (73 ) 24 8,149 (105 ) 13 Total fixed-maturity securities 325,671 (19,055 ) 95,810 (19,769 ) Equity securities 7,979 (437 ) 17 2,954 (1,681 ) 7 Total fixed-maturity and equity securities $ 333,650 $ (19,492 ) $ 98,764 $ (21,450 ) December 31, 2014 Less than 12 months 12 months or longer Fair value Unrealized losses Number of securities Fair value Unrealized losses Number of securities (Dollars in thousands) Fixed-maturity securities: U.S. government and agencies $ 7,201 $ (1 ) 2 $ 896 $ (54 ) 2 Foreign government 28,038 (1,317 ) 35 23,330 (2,484 ) 40 States and political subdivisions 1,694 (4 ) 3 2,720 (184 ) 4 Corporates 144,262 (3,818 ) 153 43,736 (4,007 ) 78 Mortgage-and asset-backed securities 49,591 (109 ) 43 16,847 (283 ) 20 Total fixed-maturity securities 230,786 (5,249 ) 87,529 (7,012 ) Equity securities 6,849 (862 ) 15 2,303 (197 ) 1 Total fixed-maturity and equity securities $ 237,635 $ (6,111 ) $ 89,832 $ (7,209 ) The amortized cost and fair value of available-for-sale fixed-maturity securities in default were as follows: September 30, 2015 December 31, 2014 Amortized cost Fair value Amortized cost Fair value (In thousands) Fixed-maturity securities in default $ 131 $ 466 $ 144 $ 611 Impairment charges recognized in earnings on available-for-sale securities were as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Impairments on fixed-maturity securities not in default $ 1,287 $ 515 $ 2,075 $ 885 Impairments on fixed-maturity securities in default 2 - 7 - Impairments on equity securities 275 - 351 - Total impairment charges $ 1,564 $ 515 $ 2,433 $ 885 The securities noted above were considered to be other-than-temporarily impaired due to our intent to sell them; adverse credit events, such as news of an impending filing for bankruptcy; analyses of the issuer’s most recent financial statements or other information in which liquidity deficiencies, significant losses and large declines in capitalization were evident; or analyses of rating agency information for issuances with severe ratings downgrades that indicated a significant increase in the possibility of default. As of September 30, 2015, the unrealized losses on our available-for-sale invested asset portfolio were largely caused by interest rate sensitivity, changes in credit spreads, and foreign currency exchange rates on our Canadian dollar-denominated investments held by our Canadian subsidiaries. We believe that fluctuations caused by movements in interest rates and credit spreads have little bearing on the recoverability of our investments. We do not consider these investments to be other-than-temporarily impaired because we have the ability to hold these investments until maturity or a market price recovery, and we have no present intention to dispose of them. The foreign currency translation adjustments on Canadian dollar-denominated investments will fluctuate with the Canadian dollar exchange rate and have no impact on the recoverability of our Canadian subsidiaries’ functional currency investments. Net impairment losses recognized in earnings for available-for-sale securities were as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Total impairment losses related to securities which the Company does not intend to sell or more-likely-than-not will not be required to sell: Total OTTI losses recognized $ 150 $ - $ 251 $ - Less portion of OTTI loss recognized in accumulated other comprehensive income (loss) - - - - Net impairment losses recognized in earnings for securities which the Company does not intend to sell or more-likely- than-not will not be required to sell before recovery 150 - 251 - OTTI losses recognized in earnings for securities which the Company intends to sell or more-likely-than-not will be required to sell before recovery 1,414 515 2,182 885 Net impairment losses recognized in earnings $ 1,564 $ 515 $ 2,433 $ 885 The rollforward of the credit-related losses recognized in income for all available-for-sale fixed-maturity securities still held follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Cumulative OTTI credit losses recognized for securities still held, beginning of period $ 7,701 $ 7,745 $ 9,550 $ 7,970 Additions for OTTI securities where no credit losses were recognized prior to the beginning of the period 336 412 403 753 Additions for OTTI securities where credit losses have been recognized prior to the beginning of the period 953 103 1,679 132 Reductions due to sales, maturities, calls, amortization or increases in cash flows expected to be collected over the remaining life of credit impaired securities (138 ) (241 ) (1,503 ) (836 ) Reductions for exchanges of securities previously impaired - - (1,277 ) - Cumulative OTTI credit losses recognized for securities still held, end of period $ 8,852 $ 8,019 $ 8,852 $ 8,019 As of September 30, 2015, no impairment losses have been recognized on the LLC Note held-to-maturity security. Derivatives. Embedded conversion options associated with fixed-maturity securities are bifurcated from the fixed-maturity security host contracts and separately recognized as equity securities. The change in fair value of these bifurcated conversion options is reflected in realized investment gains (losses), including OTTI losses. As of September 30, 2015 and December 31, 2014, the fair value of these bifurcated options was approximately $4.5 million and $5.8 million, respectively. We have a deferred loss related to closed forward contracts, which were settled several years ago, that were used to mitigate our exposure to foreign currency exchange rates that resulted from the net investment in our Canadian operations. The amount of deferred loss included in accumulated other comprehensive income was approximately $26.4 million |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | (4) Fair Value of Financial Instruments Fair value is the price that would be received upon the sale of an asset in an orderly transaction between market participants at the measurement date. Fair value measurements are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our view of market assumptions in the absence of observable market information. We classify and disclose all invested assets carried at fair value in one of the following three categories: · Level 1. Quoted prices for identical instruments in active markets. Level 1 primarily consists of financial instruments whose value is based on quoted market prices in active markets, such as exchange-traded common stocks and actively traded mutual fund investments; · Level 2. Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 includes those financial instruments that are valued using industry-standard pricing methodologies, models or other valuation methodologies. Various inputs are considered in deriving the fair value of the underlying financial instrument, including interest rate, credit spread, and foreign exchange rates. All significant inputs are observable, or derived from observable information in the marketplace or are supported by observable levels at which transactions are executed in the marketplace. Financial instruments in this category primarily include: certain public and private corporate fixed-maturity and equity securities; government or agency securities; certain mortgage- and asset-backed securities and bifurcated conversion options; and · Level 3. Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Level 3 consists of financial instruments whose fair value is estimated based on industry-standard pricing methodologies and models using significant inputs not based on, nor corroborated by, readily available market information. Valuations for this category primarily consist of non-binding broker quotes. Financial instruments in this category primarily include less liquid fixed-maturity corporate securities. As of each reporting period, all assets and liabilities recorded at fair value are classified in their entirety based on the lowest level of input (Level 3 being the lowest) that is significant to the fair value measurement. Significant levels of estimation and judgment are required to determine the fair value of certain of our investments. The factors influencing these estimations and judgments are subject to change in subsequent reporting periods. The estimated fair value and hierarchy classifications for assets and liabilities that are measured at fair value on a recurring basis were as follows: September 30, 2015 Level 1 Level 2 Level 3 Total (In thousands) Fair value assets: Available-for-sale fixed-maturity securities: U.S. government and agencies $ - $ 14,221 $ - $ 14,221 Foreign government - 111,084 - 111,084 States and political subdivisions - 39,666 - 39,666 Corporates 2,102 1,292,528 3 1,294,633 Mortgage- and asset-backed securities - 222,786 776 223,562 Total available-for-sale fixed-maturity securities 2,102 1,680,285 779 1,683,166 Equity securities 40,214 5,518 48 45,780 Trading securities - 6,534 - 6,534 Separate accounts - 2,086,598 - 2,086,598 Total fair value assets $ 42,316 $ 3,778,935 $ 827 $ 3,822,078 Fair value liabilities: Separate accounts $ - $ 2,086,598 $ - $ 2,086,598 Total fair value liabilities $ - $ 2,086,598 $ - $ 2,086,598 December 31, 2014 Level 1 Level 2 Level 3 Total (In thousands) Fair value assets: Available-for-sale fixed-maturity securities: U.S. government and agencies $ - $ 15,647 $ - $ 15,647 Foreign government - 122,497 - 122,497 States and political subdivisions - 40,694 - 40,694 Corporates 2,104 1,313,534 230 1,315,868 Mortgage- and asset-backed securities - 263,527 887 264,414 Total available-for-sale fixed-maturity securities 2,104 1,755,899 1,117 1,759,120 Equity securities 47,169 6,173 48 53,390 Trading securities - 7,711 - 7,711 Separate accounts - 2,440,303 - 2,440,303 Total fair value assets $ 49,273 $ 4,210,086 $ 1,165 $ 4,260,524 Fair value liabilities: Separate accounts $ - $ 2,440,303 $ - $ 2,440,303 Total fair value liabilities $ - $ 2,440,303 $ - $ 2,440,303 In assessing fair value of our investments, we use a third-party pricing service for approximately 94% Furthermore, we perform internal reasonableness assessments on fair value determinations within our portfolio throughout the quarter and at quarter-end, including pricing variance analyses and comparisons to alternative pricing sources and benchmark returns. If a fair value appears unusual relative to these assessments, we will re-examine the inputs and may challenge a fair value assessment made by the pricing service. If there is a known pricing error, we will request a reassessment by the pricing service. If the pricing service is unable to perform the reassessment on a timely basis, we will determine the appropriate price by requesting a reassessment from an alternative pricing service or other qualified source as necessary. We do not adjust quotes or prices except in a rare circumstance to resolve a known error. Because many fixed-maturity securities do not trade on a daily basis, third party pricing services generally determine fair value using industry-standard methodologies, which vary by asset class. For corporates, governments, and agency securities, these methodologies include developing prices by incorporating available market information such as U.S. Treasury curves, benchmarking of similar securities including new issues, sector groupings, quotes from market participants and matrix pricing. Observable information is compiled and integrates relevant credit information, perceived market movements and sector news. Additionally, security prices are periodically back-tested to validate and/or refine models as conditions warrant. Market indicators and industry and economic events are also monitored as triggers to obtain additional data. For certain structured securities (such as mortgage-and asset-backed securities) with limited trading activity, third party pricing services generally use industry-standard pricing methodologies that incorporate market information, such as index prices, discounting expected future cash flows based on underlying collateral, and quotes from market participants, to estimate fair value. If these measures are not deemed observable for a particular security, the security will be classified as Level 3 in the fair value hierarchy. Where specific market information is unavailable for certain securities, pricing models produce estimates of fair value primarily using Level 2 inputs along with certain Level 3 inputs. These models include matrix pricing. The pricing matrix uses current treasury rates and credit spreads received from third-party sources to estimate fair value. The credit spreads incorporate the issuer’s industry- or issuer-specific credit characteristics and the security’s time to maturity, if warranted. Remaining unpriced securities are valued using an estimate of fair value based on indicative market prices that include significant unobservable inputs not based on, nor corroborated by, market information, including the utilization of non-binding broker quotes. The roll-forward of the Level 3 assets measured at fair value on a recurring basis was as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Level 3 assets, beginning of period $ 862 $ 1,752 $ 1,165 $ 2,288 Net unrealized gains (losses) included in other comprehensive income 2 (13 ) (4 ) (115 ) Realized gains (losses) and accretion (amortization) recognized in earnings, including OTTI - 5 - 416 Settlements (35 ) (54 ) (111 ) (899 ) Transfers into Level 3 - - 2 - Transfers out of Level 3 (2 ) - (225 ) - Level 3 assets, end of period $ 827 $ 1,690 $ 827 $ 1,690 We obtain independent pricing quotes based on observable inputs as of the end of the reporting period for all securities in Level 2. Those inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, market bids/offers, quoted prices for similar instruments in markets that are not active, and other relevant data. We monitor these inputs for market indicators, industry and economic events. We recognize transfers into new levels and out of previous levels as of the end of the reporting period, including interim reporting periods, as applicable. There were no material transfers between Level 1 and Level 2 during the three months ended September 30, 2015. During the nine months ended September 30, 2015, we transferred a $1.0 million equity security from Level 1 to Level 2 as it was not consistently trading in an active market. The table below is a summary of the estimated fair value for financial instruments. September 30, 2015 December 31, 2014 Carrying value Estimated fair value Carrying value Estimated fair value (In thousands) Assets: Fixed-maturity securities (available-for-sale) $ 1,683,166 $ 1,683,166 $ 1,759,120 $ 1,759,120 Fixed-maturity security (held-to-maturity) 356,000 357,153 220,000 228,809 Equity securities 45,780 45,780 53,390 53,390 Trading securities 6,534 6,534 7,711 7,711 Policy loans 28,599 28,599 28,095 28,095 Deposit asset underlying 10% coinsurance agreement 176,370 176,370 157,256 157,256 Separate accounts 2,086,598 2,086,598 2,440,303 2,440,303 Liabilities: Notes payable $ 374,572 $ 407,535 $ 374,532 $ 411,916 Surplus note 356,000 357,107 220,000 227,127 Separate accounts 2,086,598 2,086,598 2,440,303 2,440,303 The fair values of financial instruments presented above are estimates of the fair values at a specific point in time using various sources and methods, including market quotations and a complex matrix system that takes into account issuer sector, quality, and spreads in the current marketplace. Recurring fair value measurements. Estimated fair values of investments in available-for-sale fixed-maturity securities are principally a function of current spreads and interest rates that are corroborated by independent third-party data. Therefore, the fair values presented are indicative of amounts we could realize or settle at the respective balance sheet date. We do not necessarily intend to dispose of or liquidate such instruments prior to maturity. Trading securities, which primarily consist of fixed-maturity securities, are carried at fair value. Equity securities, including common and nonredeemable preferred stocks, are carried at fair value. Segregated funds in separate accounts are carried at the underlying value of the variable insurance contracts, which is fair value. Nonrecurring fair value measurements. The estimated fair value of the held-to-maturity fixed-maturity security, which is classified as a Level 3 fair value measurement, is derived using the credit spread on similarly rated debt securities and the hypothetical spread of the security’s credit enhancement feature. Policy loans, which are categorized as Level 3 fair value measurements, are carried at the unpaid principal balances. The fair value of policy loans approximate the unpaid principal balances as the timing of repayment is uncertain and the loans are collateralized by the amount of the policy. The deposit asset underlying the 10% Coinsurance Agreement represents the value of the assets necessary to back the economic reserves held in support of the reinsurance agreement. The carrying value of this deposit asset approximates fair value, which is categorized as Level 3 in the fair value hierarchy. Notes payable represent our publicly-traded senior notes and are valued as a Level 2 fair value measurement using the quoted market price for our notes. The estimated fair value of the Surplus Note is derived by using an assumed credit spread we would expect if Vidalia Re was a credit-rated entity and the hypothetical spread of the Surplus Note’s subordinated structure. The Surplus Note is classified as a Level 3 fair value measurement. The carrying amounts for cash and cash equivalents, receivables, accrued investment income, accounts payable, cash collateral and payables for security transactions approximate their fair values due to the short-term nature of these instruments. Consequently, such financial instruments are not included in the above table. |
Reinsurance (Notes)
Reinsurance (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | (5) Reinsurance We use reinsurance extensively, which has a significant effect on our results of operations. Reinsurance arrangements do not relieve us of our primary obligation to the policyholder. We monitor the concentration of credit risk we have with any reinsurer, as well as the financial condition of the reinsurers. Details on in-force life insurance follow: September 30, 2015 December 31, 2014 (Dollars in thousands) Direct life insurance in force $ 693,128,573 $ 685,998,013 Amounts ceded to other companies (613,138,752 ) (607,218,906 ) Net life insurance in force $ 79,989,821 $ 78,779,107 Percentage of reinsured life insurance in force 88 % 89 % Due from reinsurers includes ceded reserve balances and ceded claim liabilities. Reinsurance receivable and financial strength ratings by reinsurer were as follows: September 30, 2015 December 31, 2014 Reinsurance receivable A.M. Best rating Reinsurance receivable A.M. Best rating (In thousands) Prime Reinsurance Company (1) $ 2,686,828 NR $ 2,645,011 NR SCOR Global Life Reinsurance Companies (2) 357,233 A 373,947 A Financial Reassurance Company 2010, Ltd. (1) 279,739 NR 320,718 NR Swiss Re Life & Health America Inc. (3) 253,653 A+ 260,734 A+ American Health and Life Insurance Company (1) 177,508 A- u 175,755 A- Munich American Reassurance Company 100,377 A+ 100,846 A+ Korean Reinsurance Company 89,066 A 89,300 A RGA Reinsurance Company 80,933 A+ 78,143 A+ TOA Reinsurance Company 22,756 A+ 20,139 A+ Hannover Life Reassurance Company 20,417 A+ 18,694 A+ All other reinsurers 35,439 - 32,246 - Due from reinsurers $ 4,103,949 $ 4,115,533 NR – not rated u – Under review pending the close of Springleaf Holdings, Inc.’s acquisition of the parent company of American Health and Life Insurance Company from an affiliate of Citigroup. (1) Reinsurers are affiliates of Citigroup. Amounts shown are net of their share of the reinsurance receivable from other reinsurers. (2) Includes amounts ceded to Transamerica Reinsurance Companies and fully retroceded to SCOR Global Life Reinsurance Companies. (3) Includes amounts ceded to Lincoln National Life Insurance and fully |
Debt (Notes)
Debt (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | (6) Debt Notes Payable. At September 30, 2015, the Company had $375.0 million of publicly-traded, senior unsecured notes with an annual interest rate of 4.75% that are scheduled to mature on July 15, 2022 (the "Senior Notes"). As of September 30, 2015, we were in compliance with the covenants of the Senior Notes. No events of default occurred on the Senior Notes during the three months ended September 30, 2015. Further discussion on the Company’s notes payable is included in Note 10 (Debt) to our consolidated financial statements within our 2014 Annual Report. Surplus Note. At September 30, 2015, the principal amount outstanding on the Surplus Note issued by Vidalia Re was $356.0 million, equal to the principal amount of the LLC Note invested asset. The principal amount of the Surplus Note and the LLC Note will fluctuate over time to coincide with the amount of reserves being contractually supported. Both the LLC Note and the Surplus Note mature on December 31, 2029 and bear interest at an annual interest rate of 4.50%. Based on the estimated reserves for ceded policies issued in 2011, 2012, 2013, and 2014, the maximum principal amounts of the Surplus Note and the LLC Note are expected to be approximately $915.0 million each. Further discussion on the Company’s Surplus Note and LLC Note are included in Note 10 (Debt) and Note 4 (Investments) to our consolidated financial statements within our 2014 Annual Report. |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | (7) Stockholders’ Equity A reconciliation of the number of shares of our common stock follows. Nine months ended September 30, 2015 2014 (In thousands) Common stock, beginning of period 52,169 54,834 Shares issued for stock options exercised 89 4 Shares of common stock issued upon lapse of restricted stock units ("RSUs") 407 381 Common stock retired (4,094 ) (1,537 ) Common stock, end of period 48,571 53,682 The above reconciliation excludes RSUs, which do not have voting rights. As the RSUs lapse, we issue common shares with voting rights. As of September 30, 2015, we had a total of approximately 1.2 million RSUs outstanding. Our Board of Directors authorized a share repurchase program for up to $150.0 million of our outstanding common stock during 2015 (the "original share repurchase program"). This share repurchase program was completed in August 2015, at which time a new share repurchase program of up to $200.0 million was authorized by the Board (the “new share repurchase program”) for purchases through December 31, 2016. Under both the original and the new share repurchase programs, we repurchased a combined 3,920,920 shares of our common stock in open market transactions for an aggregate purchase price of approximately $181.1 |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (8) Earnings Per Share The Company has outstanding common stock and equity awards that consist of restricted stock, RSUs and stock options. The restricted stock and RSUs maintain non-forfeitable dividend rights that result in dividend payment obligations on a one-to-one ratio with common shares for any future dividend declarations. Unvested restricted stock and unvested RSUs are deemed participating securities for purposes of calculating earnings per share ("EPS") as they maintain dividend rights. We calculate EPS using the two-class method. Under the two-class method, we allocate earnings to common shares (excluding unvested restricted stock) and vested RSUs outstanding for the period. Earnings attributable to unvested participating securities, along with the corresponding share counts, are excluded from EPS as reflected in our unaudited condensed consolidated statements of income. In calculating basic EPS, we deduct any dividends and undistributed earnings allocated to unvested restricted stock and unvested RSUs from net income and then divide the result by the weighted-average number of common shares and vested RSUs outstanding for the period. We determine the potential dilutive effect of stock options outstanding on EPS using the treasury-stock method. Under this method, we determine the proceeds that would be received from the exercise of the stock options outstanding, which includes cash received for the exercise price, the remaining unrecognized stock option compensation expense and the resulting effect on the income tax deduction from the exercise of stock options. We then use the average market price of our common shares during the period the stock options were outstanding to determine how many shares we could repurchase with the proceeds raised from the exercise of the stock options outstanding. The net incremental share count issued represents the potential dilutive securities. We then reallocate earnings to common shares and vested RSUs by incorporating the increased fully diluted share count to determine diluted EPS. The calculation of basic and diluted EPS follows. Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands, except per-share amounts) Basic EPS: Numerator (continuing operations): Income from continuing operations $ 49,350 $ 41,613 $ 141,924 $ 134,369 Income attributable to unvested participating securities (379 ) (447 ) (1,196 ) (1,546 ) Income from continuing operations used in calculating basic EPS $ 48,971 $ 41,166 $ 140,728 $ 132,823 Numerator (discontinued operations): Income (loss) from discontinued operations $ - $ (18 ) $ - $ 1,578 Income attributable to unvested participating securities - - - (18 ) Income (loss) from discontinued operations used in calculating basic EPS $ - $ (18 ) $ - $ 1,560 Denominator: Weighted-average vested shares 50,082 54,713 51,494 54,953 Basic EPS from continuing operations $ 0.98 $ 0.75 $ 2.73 $ 2.42 Basic EPS from discontinued operations $ - $ - $ - $ 0.03 Diluted EPS: Numerator (continuing operations): Income from continuing operations $ 49,350 $ 41,613 $ 141,924 $ 134,369 Income attributable to unvested participating securities (379 ) (447 ) (1,196 ) (1,546 ) Income from continuing operations used in calculating diluted EPS $ 48,971 $ 41,166 $ 140,728 $ 132,823 Numerator (discontinued operations): Income (loss) from discontinued operations $ - $ (18 ) $ - $ 1,578 Income attributable to unvested participating securities - - - (18 ) Income (loss) from discontinued operations used in calculating diluted EPS $ - $ (18 ) $ - $ 1,560 Denominator: Weighted-average vested shares 50,082 54,713 51,494 54,953 Dilutive effect of incremental shares to be issued for equity awards 22 31 32 25 Weighted-average shares used in calculating diluted EPS 50,104 54,744 51,526 54,978 Diluted EPS from continuing operations $ 0.98 $ 0.75 $ 2.73 $ 2.41 Diluted EPS from discontinued operations (1) $ - $ - $ - $ 0.03 (1) Less than $0.01 for the three months ended September 30, 2014. |
Share-Based Transactions (Notes
Share-Based Transactions (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Transactions | (9) Share-Based Transactions The Company has outstanding equity awards under its Omnibus Incentive Plan ("OIP"). The OIP provides for the issuance of equity awards, including stock options, stock appreciation rights, restricted stock, deferred stock, RSUs, unrestricted stock, as well as cash-based awards. In addition to time-based vesting requirements, awards granted under the OIP also may be subject to specified performance criteria. Since 2010, the Company has issued equity awards to our management (officers and other key employees), non-employee directors, and sales force leaders under the OIP. For more information on equity awards granted under the OIP, see Note 14 (Share-Based Transactions) to our consolidated financial statements within our 2014 Annual Report. In connection with our granting of equity awards to our management and members of the Board of Directors, we recognize expense over the requisite service period of the equity award. Additionally, to the extent that equity awards to members of our sales force are an incremental direct cost of successful acquisitions or renewals of life insurance policies that result directly from and are essential to the policy acquisition(s) and would not have been incurred had the policy acquisition(s) not occurred, we defer and amortize the fair value of these awards in the same manner as other deferred policy acquisition costs. The impacts of equity awards granted are as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Total equity awards expense recognized $ 2,056 $ 8,497 $ 12,918 $ 14,333 Quarterly incentive awards expense deferred 3,412 3,041 10,531 10,371 On February 23, 2015, the Compensation Committee of the Board of Directors granted equity awards to management (the “2015 management awards”) in connection with the annual approval of management incentive compensation. The 2015 management awards have time-based vesting requirements with equal and annual graded vesting over approximately three years subsequent to the grant date and include a provision for such awards to vest upon the voluntary termination of employment by any employee who is “retirement eligible” as of his or her termination date. In order to be retirement eligible, an employee must be at least 55 years old and his or her age plus years of service with the Company must equal at least 75. quity awards issued to management prior to 2015 do not contain a retirement eligibility provision, with the exception of equity awards issued to management in 2014 that were modified to include such a provision during the third quarter of 2014. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | (10) Commitments and Contingent Liabilities Letter of Credit. Peach Re maintains a credit facility agreement with Deutsche Bank (the "Credit Facility Agreement") to support certain obligations for a portion of the Regulation XXX reserves related to the Peach Re Coinsurance Agreement. Under the Credit Facility Agreement, Deutsche Bank issued a letter of credit for the benefit of Primerica Life with a term ending on January 15, 2026. As of September 30, 2015, the Company was in compliance with all financial covenants under the Credit Facility Agreement. At September 30, 2015, the amount of the LOC outstanding was approximately $480.2 million. This amount will decline over the remaining term of the LOC to correspond with declines in the Regulation XXX reserves. Further discussion on the Company’s letter of credit is included in Note 16 (Commitments and Contingent Liabilities) to our consolidated financial statements within our 2014 Annual Report. Contingent Liabilities. The Company is involved from time to time in legal disputes, regulatory inquiries and arbitration proceedings in the normal course of business. These disputes are subject to uncertainties, including the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation. As such, the Company is unable to estimate the possible loss or range of loss that may result from these matters. The Company is currently undergoing targeted multi-state treasurer audits by 30 jurisdictions with respect to unclaimed property laws, and Primerica Life and NBLIC are currently subject to a targeted multi-state market conduct examination with respect to their claims-paying practices. The Treasurer of the State of West Virginia brought a suit against Primerica Life and other insurance companies alleging violations of the West Virginia unclaimed property act. The suit was dismissed, and the West Virginia Supreme Court reversed the circuit court on appeal. Our petition to the West Virginia Supreme Court for a rehearing was denied. The Company currently is in the process of appealing the court’s denial of a request for rehearing. Other jurisdictions may pursue similar audits, examinations and litigation. The audits, examinations and litigation are expected to take significant time to complete, and it is unclear whether the Company will ultimately be required to compare the Social Security Administration’s Death Master File to its records for periods prior to 2011, including with respect to policies which have lapsed, to determine whether benefits are owed in instances where an insured appears to have died but no claim for death benefits has been made. The potential outcome of such actions is difficult to predict but could subject the Company to adverse consequences, including, but not limited to, settlement payments, additional payments to beneficiaries and additional escheatment of funds deemed abandoned under state laws. At this time, the Company cannot reasonably estimate the likelihood or the impact of additional costs or liabilities that could result from the resolution of these matters. These actions may also result in changes to the Company's procedures for the identification and escheatment of abandoned property and other financial liability. |
Description of Business, Basi20
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation . We prepare our financial statements in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). These principles are established primarily by the Financial Accounting Standards Board ("FASB"). The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect financial statement balances, revenues and expenses and cash flows, as well as the disclosure of contingent assets and liabilities. Management considers available facts and knowledge of existing circumstances when establishing the estimates included in our financial statements. The accompanying unaudited condensed consolidated financial statements contain all adjustments, generally consisting of normal recurring accruals, which are necessary to fairly present the balance sheets as of September 30, 2015 and December 31, 2014, the statements of income and comprehensive income (loss) for the three and nine months ended September 30, 2015 and 2014, and the statements of stockholders' equity and cash flows for the nine months ended September 30, 2015 and 2014. Results of operations for interim periods are not necessarily indicative of results for the entire year or of the results to be expected in future periods. These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are sufficient to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2014 ("2014 Annual Report"). |
Use of Estimates | Use of Estimates. The most significant items that involve a greater degree of accounting estimates and actuarial determinations subject to change in the future are the valuation of investments, deferred policy acquisition costs ("DAC"), liabilities for future policy benefits and unpaid policy claims, and income taxes. Estimates for these and other items are subject to change and are reassessed by management in accordance with U.S. GAAP. Actual results could differ from those estimates. |
Consolidation | Consolidation. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and those entities required to be consolidated under applicable accounting standards. All material intercompany profits, transactions, and balances among the consolidated entities have been eliminated. |
Reclassifications | Reclassifications. Certain reclassifications have been made to prior-period amounts to conform to current-period reporting classifications. These reclassifications had no impact on net income or total stockholders' equity. |
Subsequent Events | Subsequent Events. The Company has evaluated subsequent events for recognition and disclosure for occurrences and transactions after the date of the unaudited condensed consolidated financial statements dated as of September 30, 2015. |
Significant Accounting Policies | Significant Accounting Policies . All significant accounting policies remain unchanged from the 2014 Annual Report. |
New Accounting Principles | New Accounting Principles. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Interest — Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). Debt issuance costs related to a recognized debt liability are currently presented as a deferred charge, or asset, within the balance sheet. ASU 2015-03 requires the presentation of debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The amendments in ASU 2015-03 are effective retrospectively for the Company beginning in fiscal year 2016, with early adoption permitted. The Company intends to adopt the amendments in ASU 2015-03 beginning in the first quarter of 2016. At September 30, 2015, the Company had debt issuance costs related to recognized liabilities of approximately $2.9 million within other assets on our unaudited condensed consolidated balance sheets that would be reclassified and presented as a direct deduction from the carrying amount of debt liabilities under ASU 2015-03. Future Application of Accounting Standards. Recent accounting guidance not discussed is not applicable, is immaterial to our financial statements, or did not or is not expected to have a material impact on our business. |
Segment and Geographical Info21
Segment and Geographical Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Continuing Operations by Segment | Results of continuing operations by segment were as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Revenues: Term life insurance segment $ 197,200 $ 177,140 $ 563,784 $ 512,231 Investment and savings products segment 128,656 129,273 392,812 380,690 Corporate and other distributed products segment 29,968 32,428 94,592 100,640 Total revenues $ 355,824 $ 338,841 $ 1,051,188 $ 993,561 Income (loss) from continuing operations before income taxes: Term life insurance segment $ 46,519 $ 34,008 $ 127,284 $ 112,836 Investment and savings products segment 34,811 36,904 107,600 106,978 Corporate and other distributed products segment (6,377 ) (6,892 ) (16,296 ) (13,221 ) Total income from continuing operations before income taxes $ 74,953 $ 64,020 $ 218,588 $ 206,593 |
Assets by Segment | Total assets by segment were as follows: September 30, 2015 December 31, 2014 (In thousands) Assets: Term life insurance segment $ 5,594,135 $ 5,472,415 Investment and savings products segment (1) 2,191,581 2,545,372 Corporate and other distributed products segment 2,777,149 2,719,808 Total assets $ 10,562,865 $ 10,737,595 (1) The Investment and Savings Products segment includes assets held in separate accounts. Excluding separate accounts, the Investment and Savings Products segment assets were approximately $105.3 |
Reclassification of Assets between Segments | The change in measurement of segment information increased total assets in the Corporate and Other Distributed Products segment and decreased total assets in the Term Life Insurance segment as follows: September 30, 2015 December 31, 2014 (In thousands) Assets Total assets reclassified from the Term Life Insurance segment to the Corporate and Other Distributed Products segment $ 1,908,452 $ 1,692,958 |
Reclassification of Net Investment Income between Segments | Net investment income included in segment revenues and segment income (loss) from continuing operations before income taxes that has been reclassified from the Term Life Insurance segment to the Corporate and Other Distributed Products segment was as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Revenue and income (loss) from continuing operations before income taxes: Net investment income reclassified from the Term Life Insurance segment to the Corporate and Other Distributed Products segment $ 16,904 $ 16,093 $ 49,475 $ 47,611 |
Reclassification of Interest Expense between Segments | Interest expense recorded in segment income (loss) from continuing operations before income taxes that has been reclassified from the Term Life Insurance segment to the Corporate and Other Distributed Products segment was as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Income (loss) from continuing operations before income taxes: Interest expense reclassified from the Term Life Insurance segment to the Corporate and Other Distributed Products segment $ 4,174 $ 4,168 $ 12,404 $ 12,240 |
Long Lived Assets and Continuing Operations by Country | Geographical Information. Results of continuing operations by country and long-lived assets — primarily tangible assets reported in Other assets in our unaudited condensed consolidated balance sheets —were as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Revenues by country: United States $ 298,793 $ 278,102 $ 876,744 $ 811,226 Canada 57,031 60,739 174,444 182,335 Total revenues $ 355,824 $ 338,841 $ 1,051,188 $ 993,561 Income from continuing operations before income taxes by country: United States $ 61,116 $ 47,296 $ 170,172 $ 152,828 Canada 13,837 16,724 48,416 53,765 Total income from continuing operations before income taxes $ 74,953 $ 64,020 $ 218,588 $ 206,593 September 30, 2015 December 31, 2014 (In thousands) Long-lived assets by country: United States $ 27,065 $ 25,897 Canada 523 566 Total long-lived assets $ 27,588 $ 26,463 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Schedule of Investments Debt and Equity Securities [Line Items] | |
Schedule of Available-for-sale Securities Reconciliation | The period-end cost or amortized cost, gross unrealized gains and losses, and fair value of available-for-sale fixed-maturity and equity securities follow: September 30, 2015 Cost or amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) Securities available-for-sale, carried at fair value: Fixed-maturity securities: U.S. government and agencies $ 13,648 $ 575 $ (2 ) $ 14,221 Foreign government 122,518 2,338 (13,772 ) 111,084 States and political subdivisions 37,486 2,673 (493 ) 39,666 Corporates 1,255,973 63,039 (24,379 ) 1,294,633 Mortgage- and asset-backed securities 211,943 11,797 (178 ) 223,562 Total fixed-maturity securities (1) 1,641,568 80,422 (38,824 ) 1,683,166 Equity securities 40,571 7,327 (2,118 ) 45,780 Total fixed-maturity and equity securities $ 1,682,139 $ 87,749 $ (40,942 ) $ 1,728,946 (1) Includes approximately $0.1 December 31, 2014 Cost or amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) Securities available-for-sale, carried at fair value: Fixed-maturity securities: U.S. government and agencies $ 15,145 $ 557 $ (55 ) $ 15,647 Foreign government 120,910 5,388 (3,801 ) 122,497 States and political subdivisions 38,163 2,719 (188 ) 40,694 Corporates 1,241,526 82,167 (7,825 ) 1,315,868 Mortgage- and asset-backed securities 251,756 13,050 (392 ) 264,414 Total fixed-maturity securities (1) 1,667,500 103,881 (12,261 ) 1,759,120 Equity securities 43,738 10,711 (1,059 ) 53,390 Total fixed-maturity and equity securities $ 1,711,238 $ 114,592 $ (13,320 ) $ 1,812,510 (1) Includes approximately $0.7 million of other-than-temporary impairment losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. |
Fixed-maturity Securities Classified by Contractual Maturity Date | The scheduled contractual maturity distribution of the available-for-sale fixed-maturity portfolio at September 30, 2015 follows: Amortized cost Fair value (In thousands) Due in one year or less $ 87,321 $ 85,750 Due after one year through five years 619,132 649,602 Due after five years through 10 years 669,453 671,475 Due after 10 years 53,719 52,777 1,429,625 1,459,604 Mortgage- and asset-backed securities 211,943 223,562 Total fixed-maturity securities $ 1,641,568 $ 1,683,166 |
Net Effect on Stockholders' Equity of Unrealized Gains and Losses on Available-for-sale Securities | The net effect on stockholders’ equity of unrealized gains and losses on investments was as follows: September 30, 2015 December 31, 2014 (In thousands) Net unrealized investment gains including foreign currency translation adjustment and other-than- temporary impairments: Fixed-maturity and equity securities $ 46,807 $ 101,272 Currency swaps - 23 Exclude unrealized foreign currency translation (gains) losses adjustment 29,832 12,314 Exclude other-than-temporary impairments 113 710 Net unrealized investment gains excluding foreign currency translation adjustment and other-than- temporary impairments 76,752 114,319 Deferred income taxes (26,863 ) (40,011 ) Net unrealized investment gains excluding foreign currency translation adjustment and other-than- temporary impairments, net of tax $ 49,889 $ 74,308 |
Net Investment Income | Investment Income. The components of net investment income were as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Fixed-maturity securities (available-for-sale) $ 18,786 $ 20,933 $ 58,132 $ 62,419 Fixed-maturity security (held-to-maturity) 3,772 1,299 8,954 1,299 Equity securities 514 450 1,533 1,306 Policy loans and other invested assets 354 367 1,049 1,153 Cash and cash equivalents 51 70 141 191 Market return on deposit asset underlying 10% coinsurance agreement 220 (127 ) 1,776 2,316 Gross investment income 23,697 22,992 71,585 68,684 Investment expenses (1,210 ) (1,228 ) (3,667 ) (3,640 ) Investment income net of investment expenses 22,487 21,764 67,918 65,044 Interest expense on surplus note (3,772 ) (1,299 ) (8,954 ) (1,299 ) Net investment income $ 18,715 $ 20,465 $ 58,964 $ 63,745 |
Schedule of Net Realized Investment Gains and Losses | The components of net realized investment gains (losses) as well as details on gross realized investment gains and losses and proceeds from sales or other redemptions were as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Net realized investment gains (losses): Gross gains from sales $ 1,209 $ 550 $ 4,610 $ 1,731 Gross losses from sales (26 ) (115 ) (285 ) (160 ) Other-than-temporary impairment losses (1,564 ) (515 ) (2,433 ) (885 ) Gains (losses) from bifurcated options 122 (201 ) (269 ) 127 Net realized investment gains (losses) $ (259 ) $ (281 ) $ 1,623 $ 813 Supplemental information: Tax expense (benefit) associated with unrealized holding gains (losses) recognized in other comprehensive income on investment securities $ (6,249 ) $ (7,468 ) $ (13,810 ) $ 5,550 Tax expense (benefit) associated with net unrealized investment losses other-than-temporarily impaired recognized in other comprehensive income 208 477 208 477 Tax expense (benefit) associated with realized investment gains (losses) reclassified from accumulated other comprehensive income into earnings (133 ) (28 ) 662 240 Proceeds from sales or other redemptions 96,285 92,130 310,519 301,519 |
Schedule of Securities in Unrealized Loss Position | The following tables summarize, for all available-for-sale securities in an unrealized loss position, the aggregate fair value and the gross unrealized loss by length of time such securities have continuously been in an unrealized loss position: September 30, 2015 Less than 12 months 12 months or longer Fair value Unrealized losses Number of securities Fair value Unrealized losses Number of securities (Dollars in thousands) Fixed-maturity securities: U.S. government and agencies $ 693 $ (2 ) 1 $ - $ - - Foreign government 43,742 (5,434 ) 44 32,348 (8,338 ) 53 States and political subdivisions - - - 884 (493 ) 2 Corporates 258,836 (13,546 ) 285 54,429 (10,833 ) 77 Mortgage-and asset-backed securities 22,400 (73 ) 24 8,149 (105 ) 13 Total fixed-maturity securities 325,671 (19,055 ) 95,810 (19,769 ) Equity securities 7,979 (437 ) 17 2,954 (1,681 ) 7 Total fixed-maturity and equity securities $ 333,650 $ (19,492 ) $ 98,764 $ (21,450 ) December 31, 2014 Less than 12 months 12 months or longer Fair value Unrealized losses Number of securities Fair value Unrealized losses Number of securities (Dollars in thousands) Fixed-maturity securities: U.S. government and agencies $ 7,201 $ (1 ) 2 $ 896 $ (54 ) 2 Foreign government 28,038 (1,317 ) 35 23,330 (2,484 ) 40 States and political subdivisions 1,694 (4 ) 3 2,720 (184 ) 4 Corporates 144,262 (3,818 ) 153 43,736 (4,007 ) 78 Mortgage-and asset-backed securities 49,591 (109 ) 43 16,847 (283 ) 20 Total fixed-maturity securities 230,786 (5,249 ) 87,529 (7,012 ) Equity securities 6,849 (862 ) 15 2,303 (197 ) 1 Total fixed-maturity and equity securities $ 237,635 $ (6,111 ) $ 89,832 $ (7,209 ) |
Amortized Cost and Fair Value of Available-for-sale Fixed-maturity Securities in Default | The amortized cost and fair value of available-for-sale fixed-maturity securities in default were as follows: September 30, 2015 December 31, 2014 Amortized cost Fair value Amortized cost Fair value (In thousands) Fixed-maturity securities in default $ 131 $ 466 $ 144 $ 611 |
Impairment Charges in Earnings on Available-for-sale Securities | Impairment charges recognized in earnings on available-for-sale securities were as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Impairments on fixed-maturity securities not in default $ 1,287 $ 515 $ 2,075 $ 885 Impairments on fixed-maturity securities in default 2 - 7 - Impairments on equity securities 275 - 351 - Total impairment charges $ 1,564 $ 515 $ 2,433 $ 885 |
Schedule of Net Impairment and Credit Related Losses Recognized in Earnings for Available-for-sale Securities | The rollforward of the credit-related losses recognized in income for all available-for-sale fixed-maturity securities still held follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Cumulative OTTI credit losses recognized for securities still held, beginning of period $ 7,701 $ 7,745 $ 9,550 $ 7,970 Additions for OTTI securities where no credit losses were recognized prior to the beginning of the period 336 412 403 753 Additions for OTTI securities where credit losses have been recognized prior to the beginning of the period 953 103 1,679 132 Reductions due to sales, maturities, calls, amortization or increases in cash flows expected to be collected over the remaining life of credit impaired securities (138 ) (241 ) (1,503 ) (836 ) Reductions for exchanges of securities previously impaired - - (1,277 ) - Cumulative OTTI credit losses recognized for securities still held, end of period $ 8,852 $ 8,019 $ 8,852 $ 8,019 |
Available-for-Sale [Member] | |
Schedule of Investments Debt and Equity Securities [Line Items] | |
Schedule of Net Impairment and Credit Related Losses Recognized in Earnings for Available-for-sale Securities | Net impairment losses recognized in earnings for available-for-sale securities were as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Total impairment losses related to securities which the Company does not intend to sell or more-likely-than-not will not be required to sell: Total OTTI losses recognized $ 150 $ - $ 251 $ - Less portion of OTTI loss recognized in accumulated other comprehensive income (loss) - - - - Net impairment losses recognized in earnings for securities which the Company does not intend to sell or more-likely- than-not will not be required to sell before recovery 150 - 251 - OTTI losses recognized in earnings for securities which the Company intends to sell or more-likely-than-not will be required to sell before recovery 1,414 515 2,182 885 Net impairment losses recognized in earnings $ 1,564 $ 515 $ 2,433 $ 885 |
Fair Value of Financial Instr23
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | The estimated fair value and hierarchy classifications for assets and liabilities that are measured at fair value on a recurring basis were as follows: September 30, 2015 Level 1 Level 2 Level 3 Total (In thousands) Fair value assets: Available-for-sale fixed-maturity securities: U.S. government and agencies $ - $ 14,221 $ - $ 14,221 Foreign government - 111,084 - 111,084 States and political subdivisions - 39,666 - 39,666 Corporates 2,102 1,292,528 3 1,294,633 Mortgage- and asset-backed securities - 222,786 776 223,562 Total available-for-sale fixed-maturity securities 2,102 1,680,285 779 1,683,166 Equity securities 40,214 5,518 48 45,780 Trading securities - 6,534 - 6,534 Separate accounts - 2,086,598 - 2,086,598 Total fair value assets $ 42,316 $ 3,778,935 $ 827 $ 3,822,078 Fair value liabilities: Separate accounts $ - $ 2,086,598 $ - $ 2,086,598 Total fair value liabilities $ - $ 2,086,598 $ - $ 2,086,598 December 31, 2014 Level 1 Level 2 Level 3 Total (In thousands) Fair value assets: Available-for-sale fixed-maturity securities: U.S. government and agencies $ - $ 15,647 $ - $ 15,647 Foreign government - 122,497 - 122,497 States and political subdivisions - 40,694 - 40,694 Corporates 2,104 1,313,534 230 1,315,868 Mortgage- and asset-backed securities - 263,527 887 264,414 Total available-for-sale fixed-maturity securities 2,104 1,755,899 1,117 1,759,120 Equity securities 47,169 6,173 48 53,390 Trading securities - 7,711 - 7,711 Separate accounts - 2,440,303 - 2,440,303 Total fair value assets $ 49,273 $ 4,210,086 $ 1,165 $ 4,260,524 Fair value liabilities: Separate accounts $ - $ 2,440,303 $ - $ 2,440,303 Total fair value liabilities $ - $ 2,440,303 $ - $ 2,440,303 |
Roll forward of Level 3 Assets Measured on Recurring Basis | The roll-forward of the Level 3 assets measured at fair value on a recurring basis was as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Level 3 assets, beginning of period $ 862 $ 1,752 $ 1,165 $ 2,288 Net unrealized gains (losses) included in other comprehensive income 2 (13 ) (4 ) (115 ) Realized gains (losses) and accretion (amortization) recognized in earnings, including OTTI - 5 - 416 Settlements (35 ) (54 ) (111 ) (899 ) Transfers into Level 3 - - 2 - Transfers out of Level 3 (2 ) - (225 ) - Level 3 assets, end of period $ 827 $ 1,690 $ 827 $ 1,690 |
Carrying Value and Estimated Fair Value for Financial Instruments | The table below is a summary of the estimated fair value for financial instruments. September 30, 2015 December 31, 2014 Carrying value Estimated fair value Carrying value Estimated fair value (In thousands) Assets: Fixed-maturity securities (available-for-sale) $ 1,683,166 $ 1,683,166 $ 1,759,120 $ 1,759,120 Fixed-maturity security (held-to-maturity) 356,000 357,153 220,000 228,809 Equity securities 45,780 45,780 53,390 53,390 Trading securities 6,534 6,534 7,711 7,711 Policy loans 28,599 28,599 28,095 28,095 Deposit asset underlying 10% coinsurance agreement 176,370 176,370 157,256 157,256 Separate accounts 2,086,598 2,086,598 2,440,303 2,440,303 Liabilities: Notes payable $ 374,572 $ 407,535 $ 374,532 $ 411,916 Surplus note 356,000 357,107 220,000 227,127 Separate accounts 2,086,598 2,086,598 2,440,303 2,440,303 |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Reinsurance Disclosures [Abstract] | |
In-force Life Insurance | Details on in-force life insurance follow: September 30, 2015 December 31, 2014 (Dollars in thousands) Direct life insurance in force $ 693,128,573 $ 685,998,013 Amounts ceded to other companies (613,138,752 ) (607,218,906 ) Net life insurance in force $ 79,989,821 $ 78,779,107 Percentage of reinsured life insurance in force 88 % 89 % |
Reinsurance Receivable and Financial Strength Ratings by Reinsurer | Due from reinsurers includes ceded reserve balances and ceded claim liabilities. Reinsurance receivable and financial strength ratings by reinsurer were as follows: September 30, 2015 December 31, 2014 Reinsurance receivable A.M. Best rating Reinsurance receivable A.M. Best rating (In thousands) Prime Reinsurance Company (1) $ 2,686,828 NR $ 2,645,011 NR SCOR Global Life Reinsurance Companies (2) 357,233 A 373,947 A Financial Reassurance Company 2010, Ltd. (1) 279,739 NR 320,718 NR Swiss Re Life & Health America Inc. (3) 253,653 A+ 260,734 A+ American Health and Life Insurance Company (1) 177,508 A- u 175,755 A- Munich American Reassurance Company 100,377 A+ 100,846 A+ Korean Reinsurance Company 89,066 A 89,300 A RGA Reinsurance Company 80,933 A+ 78,143 A+ TOA Reinsurance Company 22,756 A+ 20,139 A+ Hannover Life Reassurance Company 20,417 A+ 18,694 A+ All other reinsurers 35,439 - 32,246 - Due from reinsurers $ 4,103,949 $ 4,115,533 NR – not rated u – Under review pending the close of Springleaf Holdings, Inc.’s acquisition of the parent company of American Health and Life Insurance Company from an affiliate of Citigroup. (1) Reinsurers are affiliates of Citigroup. Amounts shown are net of their share of the reinsurance receivable from other reinsurers. (2) Includes amounts ceded to Transamerica Reinsurance Companies and fully retroceded to SCOR Global Life Reinsurance Companies. (3) Includes amounts ceded to Lincoln National Life Insurance and fully |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders Equity Note [Abstract] | |
Reconciliation of Number of Shares of Common Stock | A reconciliation of the number of shares of our common stock follows. Nine months ended September 30, 2015 2014 (In thousands) Common stock, beginning of period 52,169 54,834 Shares issued for stock options exercised 89 4 Shares of common stock issued upon lapse of restricted stock units ("RSUs") 407 381 Common stock retired (4,094 ) (1,537 ) Common stock, end of period 48,571 53,682 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | The calculation of basic and diluted EPS follows. Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands, except per-share amounts) Basic EPS: Numerator (continuing operations): Income from continuing operations $ 49,350 $ 41,613 $ 141,924 $ 134,369 Income attributable to unvested participating securities (379 ) (447 ) (1,196 ) (1,546 ) Income from continuing operations used in calculating basic EPS $ 48,971 $ 41,166 $ 140,728 $ 132,823 Numerator (discontinued operations): Income (loss) from discontinued operations $ - $ (18 ) $ - $ 1,578 Income attributable to unvested participating securities - - - (18 ) Income (loss) from discontinued operations used in calculating basic EPS $ - $ (18 ) $ - $ 1,560 Denominator: Weighted-average vested shares 50,082 54,713 51,494 54,953 Basic EPS from continuing operations $ 0.98 $ 0.75 $ 2.73 $ 2.42 Basic EPS from discontinued operations $ - $ - $ - $ 0.03 Diluted EPS: Numerator (continuing operations): Income from continuing operations $ 49,350 $ 41,613 $ 141,924 $ 134,369 Income attributable to unvested participating securities (379 ) (447 ) (1,196 ) (1,546 ) Income from continuing operations used in calculating diluted EPS $ 48,971 $ 41,166 $ 140,728 $ 132,823 Numerator (discontinued operations): Income (loss) from discontinued operations $ - $ (18 ) $ - $ 1,578 Income attributable to unvested participating securities - - - (18 ) Income (loss) from discontinued operations used in calculating diluted EPS $ - $ (18 ) $ - $ 1,560 Denominator: Weighted-average vested shares 50,082 54,713 51,494 54,953 Dilutive effect of incremental shares to be issued for equity awards 22 31 32 25 Weighted-average shares used in calculating diluted EPS 50,104 54,744 51,526 54,978 Diluted EPS from continuing operations $ 0.98 $ 0.75 $ 2.73 $ 2.41 Diluted EPS from discontinued operations (1) $ - $ - $ - $ 0.03 (1) Less than $0.01 for the three months ended September 30, 2014. |
Share-Based Transactions (Table
Share-Based Transactions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Impact of Equity Awards Granted | The impacts of equity awards granted are as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Total equity awards expense recognized $ 2,056 $ 8,497 $ 12,918 $ 14,333 Quarterly incentive awards expense deferred 3,412 3,041 10,531 10,371 |
Description of Business, Basi28
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | Sep. 30, 2015USD ($) |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Debt issuance costs | $ 2.9 |
Segment and Geographical Info29
Segment and Geographical Information - Narrative (Details) | 9 Months Ended |
Sep. 30, 2015Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment and Geographical Info30
Segment and Geographical Information - Assets and Continuing Operations by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 355,824 | $ 338,841 | $ 1,051,188 | $ 993,561 | ||
Income (loss) from continuing operations before income taxes | 74,953 | 64,020 | 218,588 | 206,593 | ||
Assets | 10,562,865 | 10,562,865 | $ 10,737,595 | |||
Term Life Insurance Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 197,200 | 177,140 | 563,784 | 512,231 | ||
Income (loss) from continuing operations before income taxes | 46,519 | 34,008 | 127,284 | 112,836 | ||
Assets | 5,594,135 | 5,594,135 | 5,472,415 | |||
Investment and Savings Products Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 128,656 | 129,273 | 392,812 | 380,690 | ||
Income (loss) from continuing operations before income taxes | 34,811 | 36,904 | 107,600 | 106,978 | ||
Assets | [1] | 2,191,581 | 2,191,581 | 2,545,372 | ||
Corporate and Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 29,968 | 32,428 | 94,592 | 100,640 | ||
Income (loss) from continuing operations before income taxes | (6,377) | $ (6,892) | (16,296) | $ (13,221) | ||
Assets | $ 2,777,149 | $ 2,777,149 | $ 2,719,808 | |||
[1] | The Investment and Savings Products segment includes assets held in separate accounts. Excluding separate accounts, the Investment and Savings Products segment assets were approximately $105.3 million and $105.5 million as of September 30, 2015 and December 31, 2014, respectively. |
Segment and Geographical Info31
Segment and Geographical Information - Assets and Continuing Operations by Segment (Parenthetical) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Investment and Savings Products Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets, excluding separate account assets | $ 105.3 | $ 105.5 |
Segment and Geographical Info32
Segment and Geographical Information - Reclassification Of Assets Between Segments (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Term Life Insurance Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets reclassified from the Term Life Insurance segment to the Corporate and Other Distributed Products segment | $ (1,908,452) | $ (1,692,958) |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets reclassified from the Term Life Insurance segment to the Corporate and Other Distributed Products segment | $ 1,908,452 | $ 1,692,958 |
Segment and Geographical Info33
Segment and Geographical Information - Reclassification of Net Investment Income between Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Term Life Insurance Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net investment income reclassified from the Term Life Insurance segment to the Corporate and Other Distributed Products segment | $ (16,904) | $ (16,093) | $ (49,475) | $ (47,611) |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net investment income reclassified from the Term Life Insurance segment to the Corporate and Other Distributed Products segment | $ 16,904 | $ 16,093 | $ 49,475 | $ 47,611 |
Segment and Geographical Info34
Segment and Geographical Information - Reclassification Of Interest Expense Between Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Term Life Insurance Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Interest expense reclassified from the Term Life Insurance segment to the Corporate and Other Distributed Products segment | $ (4,174) | $ (4,168) | $ (12,404) | $ (12,240) |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Interest expense reclassified from the Term Life Insurance segment to the Corporate and Other Distributed Products segment | $ 4,174 | $ 4,168 | $ 12,404 | $ 12,240 |
Segment and Geographical Info35
Segment and Geographical Information - Long Lived Assets and Continuing Operations by Country (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Revenues | $ 355,824 | $ 338,841 | $ 1,051,188 | $ 993,561 | |
Income (loss) from continuing operations before income taxes | 74,953 | 64,020 | 218,588 | 206,593 | |
Long-lived assets | 27,588 | 27,588 | $ 26,463 | ||
UNITED STATES | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Revenues | 298,793 | 278,102 | 876,744 | 811,226 | |
Income (loss) from continuing operations before income taxes | 61,116 | 47,296 | 170,172 | 152,828 | |
Long-lived assets | 27,065 | 27,065 | 25,897 | ||
CANADA | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Revenues | 57,031 | 60,739 | 174,444 | 182,335 | |
Income (loss) from continuing operations before income taxes | 13,837 | $ 16,724 | 48,416 | $ 53,765 | |
Long-lived assets | $ 523 | $ 523 | $ 566 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | $ 1,641,568 | [1] | $ 1,667,500 | [2] |
Available-for-sale debt securities gross unrealized gain | 80,422 | [1] | 103,881 | [2] |
Available-for-sale debt securities, gross unrealized loss | (38,824) | [1] | (12,261) | [2] |
Available-for-sale debt securities, at fair value | 1,683,166 | [1] | 1,759,120 | [2] |
Available-for-sale equity securities, cost | 40,571 | 43,738 | ||
Available-for-sale equity securities, gross unrealized gain | 7,327 | 10,711 | ||
Available-for-sale equity securities, gross unrealized loss | (2,118) | (1,059) | ||
Available-for-sale equity securities, at fair value | 45,780 | 53,390 | ||
Available-for-sale securities, amortized cost basis | 1,682,139 | 1,711,238 | ||
Available-for-sale securities, gross unrealized gain | 87,749 | 114,592 | ||
Available-for-sale securities, gross unrealized loss | (40,942) | (13,320) | ||
Available-for-sale securities, fair value | 1,728,946 | 1,812,510 | ||
U.S. Government and Agencies [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 13,648 | 15,145 | ||
Available-for-sale debt securities gross unrealized gain | 575 | 557 | ||
Available-for-sale debt securities, gross unrealized loss | (2) | (55) | ||
Available-for-sale debt securities, at fair value | 14,221 | 15,647 | ||
Foreign Government [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 122,518 | 120,910 | ||
Available-for-sale debt securities gross unrealized gain | 2,338 | 5,388 | ||
Available-for-sale debt securities, gross unrealized loss | (13,772) | (3,801) | ||
Available-for-sale debt securities, at fair value | 111,084 | 122,497 | ||
States and Political Subdivisions [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 37,486 | 38,163 | ||
Available-for-sale debt securities gross unrealized gain | 2,673 | 2,719 | ||
Available-for-sale debt securities, gross unrealized loss | (493) | (188) | ||
Available-for-sale debt securities, at fair value | 39,666 | 40,694 | ||
Corporates [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 1,255,973 | 1,241,526 | ||
Available-for-sale debt securities gross unrealized gain | 63,039 | 82,167 | ||
Available-for-sale debt securities, gross unrealized loss | (24,379) | (7,825) | ||
Available-for-sale debt securities, at fair value | 1,294,633 | 1,315,868 | ||
Asset-backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 211,943 | 251,756 | ||
Available-for-sale debt securities gross unrealized gain | 11,797 | 13,050 | ||
Available-for-sale debt securities, gross unrealized loss | (178) | (392) | ||
Available-for-sale debt securities, at fair value | $ 223,562 | $ 264,414 | ||
[1] | (1) Includes approximately $0.1 million of other-than-temporary impairment losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. | |||
[2] | Includes approximately $0.7 million of other-than-temporary impairment losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. |
Investments - Schedule of Ava37
Investments - Schedule of Available-for-sale Securities (Parenthetical) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Other-than-temporary impairment losses, investments, portion in other comprehensive income (loss) | $ 0.1 | $ 0.7 |
Investments - Fixed-maturity Se
Investments - Fixed-maturity Securities Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | [2] | |
Available-for-sale Securities, Debt Maturities [Abstract] | ||||
Due in one year or less, amortized cost | $ 87,321 | |||
Due after one year through five years, amortized cost | 619,132 | |||
Due after five years through 10 years, amortized cost | 669,453 | |||
Due after 10 years, amortized cost | 53,719 | |||
Total fixed-maturity securities with single maturity dates, amortized cost | 1,429,625 | |||
Mortgage and asset-backed securities, amortized cost | 211,943 | |||
Available-for-sale debt securities, amortized cost basis | 1,641,568 | [1] | $ 1,667,500 | |
Due in one year or less, fair value | 85,750 | |||
Due after one year through five years, fair value | 649,602 | |||
Due after five years through 10 years, fair value | 671,475 | |||
Due after 10 years, fair value | 52,777 | |||
Total fixed-maturity securities with single maturity dates, fair value | 1,459,604 | |||
Mortgage and asset-backed securities, fair value | 223,562 | |||
Available-for-sale debt securities, at fair value | $ 1,683,166 | [1] | $ 1,759,120 | |
[1] | (1) Includes approximately $0.1 million of other-than-temporary impairment losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. | |||
[2] | Includes approximately $0.7 million of other-than-temporary impairment losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. |
Investments - Net Effect on Sto
Investments - Net Effect on Stockholders' Equity of Unrealized Gains and Losses on Available-for-sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax [Abstract] | ||
Net unrealized investment gains including FCTA and OTTI, Fixed-maturity and Equity securities | $ 46,807 | $ 101,272 |
Net unrealized investment gains including FCTA and OTTI, currency swaps | 23 | |
Exclude unrealized foreign currency translation (gains) losses adjustment | 29,832 | 12,314 |
Exclude other-than-temporary impairments | 113 | 710 |
Net unrealized investment gains excluding foreign currency translation adjustment and other-than- temporary impairments | 76,752 | 114,319 |
Less deferred income taxes | (26,863) | (40,011) |
Net unrealized investment gains excluding foreign currency translation adjustment and other-than- temporary impairments, net of tax | $ 49,889 | $ 74,308 |
Investments - Fixed-maturity 40
Investments - Fixed-maturity Securities Classified as Trading - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | $ 6,534 | $ 7,711 |
Fixed-maturity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | $ 6,500 | $ 7,700 |
Investments - Held-to-maturity
Investments - Held-to-maturity Security - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Schedule Of Held To Maturity Securities [Line Items] | |
Held-to-maturity debt security estimated unrealized holding gain (or loss) | $ 1.2 |
LLC Note [Member] | |
Schedule Of Held To Maturity Securities [Line Items] | |
Debt instrument, interest rate, stated percentage | 4.50% |
Investments - Fair Value of Inv
Investments - Fair Value of Investments on Deposit with Governmental Authorities - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Investments Debt And Equity Securities [Abstract] | ||
Fair values of investments on deposit | $ 18.1 | $ 19.9 |
Investments - Securities Lendin
Investments - Securities Lending Collateral - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Securities Received as Collateral [Abstract] | ||
Securities loaned, minimum collateral to loan ratio | 102.00% | |
Securities loaned, additional collateral requirement, decline in collateral value threshold percentage | 100.00% | |
Cash collateral received and reinvested | $ 83.2 | $ 50.2 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income, operating | $ 23,697 | $ 22,992 | $ 71,585 | $ 68,684 |
Investment expenses | (1,210) | (1,228) | (3,667) | (3,640) |
Investment income net of investment expenses | 22,487 | 21,764 | 67,918 | 65,044 |
Interest expense on surplus note | (3,772) | (1,299) | (8,954) | (1,299) |
Net investment income | 18,715 | 20,465 | 58,964 | 63,745 |
Equity Securities [Member] | ||||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income, operating | 514 | 450 | 1,533 | 1,306 |
Policy Loans and Other Invested Assets [Member] | ||||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income, operating | 354 | 367 | 1,049 | 1,153 |
Cash and Cash Equivalents [Member] | ||||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income, operating | 51 | 70 | 141 | 191 |
Market return on deposit asset underlying 10% insurance agreement [Member] | ||||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income, operating | 220 | (127) | 1,776 | 2,316 |
Available-for-Sale [Member] | Fixed-maturity Securities [Member] | ||||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income, operating | 18,786 | 20,933 | 58,132 | 62,419 |
Held-to-Maturity [Member] | Fixed-maturity Securities [Member] | ||||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income, operating | $ 3,772 | $ 1,299 | $ 8,954 | $ 1,299 |
Investments - Schedule of Net R
Investments - Schedule of Net Realized Investment Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Realized Investment Gains Losses [Abstract] | ||||
Gross gains from sales | $ 1,209 | $ 550 | $ 4,610 | $ 1,731 |
Gross losses from sales | (26) | (115) | (285) | (160) |
Other-than-temporary impairment losses | (1,564) | (515) | (2,433) | (885) |
Gains (losses) from bifurcated options | 122 | (201) | (269) | 127 |
Realized investment gains (losses), including other-than- temporary impairment losses | (259) | (281) | 1,623 | 813 |
Tax expense (benefit) associated with unrealized holding gains (losses) recognized in other comprehensive income on investment securities | (6,249) | (7,468) | (13,810) | 5,550 |
Tax expense (benefit) associated with net unrealized investment losses other-than-temporarily impaired recognized in other comprehensive income | 208 | 477 | 208 | 477 |
Tax expense (benefit) associated with realized investment gains (losses) reclassified from accumulated other comprehensive income into earnings | (133) | (28) | 662 | 240 |
Proceeds from sales or other redemptions | $ 96,285 | $ 92,130 | $ 310,519 | $ 301,519 |
Investments - Securities with C
Investments - Securities with Cost Basis in Excess of Fair Value - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Investments Debt And Equity Securities [Abstract] | ||
Fixed-maturity and equity securities with cost basis in excess of fair value, cost basis | $ 473.4 | $ 340.8 |
Investments - Schedule of Secur
Investments - Schedule of Securities in Unrealized Loss Position (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015USD ($)Securities | Dec. 31, 2014USD ($)Securities | |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | $ 333,650 | $ 237,635 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (19,492) | (6,111) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 98,764 | 89,832 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (21,450) | (7,209) |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 7,979 | 6,849 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (437) | $ (862) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 17 | 15 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 2,954 | $ 2,303 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (1,681) | $ (197) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 7 | 1 |
Fixed-maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | $ 325,671 | $ 230,786 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (19,055) | (5,249) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 95,810 | 87,529 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (19,769) | (7,012) |
Fixed-maturity Securities [Member] | U.S. Government and Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 693 | 7,201 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (2) | $ (1) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 1 | 2 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 896 | |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (54) | |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 2 | |
Fixed-maturity Securities [Member] | Foreign Government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | $ 43,742 | $ 28,038 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (5,434) | $ (1,317) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 44 | 35 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 32,348 | $ 23,330 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (8,338) | $ (2,484) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 53 | 40 |
Fixed-maturity Securities [Member] | States and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | $ 1,694 | |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (4) | |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 3 | |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 884 | $ 2,720 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (493) | $ (184) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 2 | 4 |
Fixed-maturity Securities [Member] | Corporates [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | $ 258,836 | $ 144,262 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (13,546) | $ (3,818) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 285 | 153 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 54,429 | $ 43,736 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (10,833) | $ (4,007) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 77 | 78 |
Fixed-maturity Securities [Member] | Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | $ 22,400 | $ 49,591 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (73) | $ (109) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 24 | 43 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 8,149 | $ 16,847 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (105) | $ (283) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 13 | 20 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Available-for-sale Fixed-maturity Securities in Default (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Investments Debt And Equity Securities [Abstract] | ||
Available-for-sale fixed-maturity securities in default, amortized cost | $ 131 | $ 144 |
Available-for-sale fixed-maturity securities in default, fair value | $ 466 | $ 611 |
Investments - Impairment Charge
Investments - Impairment Charges in Earnings on Available-for-sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Impairment charges recognized in earnings | $ 1,564 | $ 515 | $ 2,433 | $ 885 |
Equity Securities [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Impairment charges recognized in earnings | 275 | 351 | ||
Investments in fixed-maturity securities not in default [Member] | Fixed-maturity Securities [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Impairment charges recognized in earnings | 1,287 | $ 515 | 2,075 | $ 885 |
Investments in fixed-maturity securities in default [Member] | Fixed-maturity Securities [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Impairment charges recognized in earnings | $ 2 | $ 7 |
Investments - Schedule of Net I
Investments - Schedule of Net Impairment Losses Recognized in Earnings for Available-for-sale Securities(Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Total other-than-temporary impairment losses | $ 1,564 | $ 515 | $ 2,433 | $ 885 |
Other-than-temporary impairment losses, investments, portion recognized in earnings, net | 1,564 | 515 | 2,433 | 885 |
Does not intend to sell or more-likely-than-not will not be required to sell before recovery [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Total other-than-temporary impairment losses | 150 | 251 | ||
Other-than-temporary impairment losses, portion in accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Other-than-temporary impairment losses, investments, portion recognized in earnings, net | 150 | 251 | ||
Intends to sell or more-likely-than-not will be required to sell before recovery [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Other-than-temporary impairment losses, investments, portion recognized in earnings, net | $ 1,414 | $ 515 | $ 2,182 | $ 885 |
Investments - Rollforward of Ot
Investments - Rollforward of Other-than-temporary Impairment Credit-related Losses Recognized in Income, Fixed-maturity Securities Still Held (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Cumulative other-than-temporary impairment, credit losses for securities still held, beginning balance | $ 7,701 | $ 7,745 | $ 9,550 | $ 7,970 |
Additions for other-than-temporary impaired securities where no credit losses were recognized prior to the beginning of the period | 336 | 412 | 403 | 753 |
Additions for other-than-temporary impaired securities where credit losses have been recognized prior to the beginning of the period | 953 | 103 | 1,679 | 132 |
Reductions due to sales, maturities, calls, amortization or increases in cash flows expected to be collected over the remaining life of credit impaired securities | (138) | (241) | (1,503) | (836) |
Reductions for exchanges of securities previously impaired | (1,277) | |||
Cumulative other-than-temporary impairment, credit losses for securities still held, ending balance | $ 8,852 | $ 8,019 | $ 8,852 | $ 8,019 |
Investments - Impairment Losses
Investments - Impairment Losses on Held-to-maturity Security - Narrative (Details) | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Investments Debt And Equity Securities [Abstract] | |
Impairment losses held-to-maturity security | $ 0 |
Investments - Derivative - Narr
Investments - Derivative - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Aggregate fair value of embedded conversion options | $ 4.5 | $ 5.8 |
Investments - Loss from Closed
Investments - Loss from Closed Currency Forward Contracts Recorded in Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | ||
Deferred loss related to closed forward contracts | $ 26.4 | $ 26.4 |
Fair Value of Financial Instr55
Fair Value of Financial Instruments - Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | $ 1,728,946 | $ 1,812,510 |
Trading securities | $ 6,534 | 7,711 |
Fair value assumptions, percentage of securities assessed by third-party pricing service | 94.00% | |
Fair Value, Recurring Measurements [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Trading securities | $ 6,534 | 7,711 |
Assets, fair value disclosure, recurring | 3,822,078 | 4,260,524 |
Liabilities, fair value disclosure, recurring | 2,086,598 | 2,440,303 |
Fair Value, Recurring Measurements [Member] | Level 1 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure, recurring | 42,316 | 49,273 |
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Trading securities | 6,534 | 7,711 |
Assets, fair value disclosure, recurring | 3,778,935 | 4,210,086 |
Liabilities, fair value disclosure, recurring | 2,086,598 | 2,440,303 |
Fair Value, Recurring Measurements [Member] | Level 3 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure, recurring | 827 | 1,165 |
Fair Value, Recurring Measurements [Member] | U.S. Government and Agencies [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 14,221 | 15,647 |
Fair Value, Recurring Measurements [Member] | U.S. Government and Agencies [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 14,221 | 15,647 |
Fair Value, Recurring Measurements [Member] | Foreign Government [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 111,084 | 122,497 |
Fair Value, Recurring Measurements [Member] | Foreign Government [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 111,084 | 122,497 |
Fair Value, Recurring Measurements [Member] | States and Political Subdivisions [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 39,666 | 40,694 |
Fair Value, Recurring Measurements [Member] | States and Political Subdivisions [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 39,666 | 40,694 |
Fair Value, Recurring Measurements [Member] | Corporates [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 1,294,633 | 1,315,868 |
Fair Value, Recurring Measurements [Member] | Corporates [Member] | Level 1 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 2,102 | 2,104 |
Fair Value, Recurring Measurements [Member] | Corporates [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 1,292,528 | 1,313,534 |
Fair Value, Recurring Measurements [Member] | Corporates [Member] | Level 3 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 3 | 230 |
Fair Value, Recurring Measurements [Member] | Asset-backed Securities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 223,562 | 264,414 |
Fair Value, Recurring Measurements [Member] | Asset-backed Securities [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 222,786 | 263,527 |
Fair Value, Recurring Measurements [Member] | Asset-backed Securities [Member] | Level 3 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 776 | 887 |
Fair Value, Recurring Measurements [Member] | Fixed-maturity Securities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 1,683,166 | 1,759,120 |
Fair Value, Recurring Measurements [Member] | Fixed-maturity Securities [Member] | Level 1 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 2,102 | 2,104 |
Fair Value, Recurring Measurements [Member] | Fixed-maturity Securities [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 1,680,285 | 1,755,899 |
Fair Value, Recurring Measurements [Member] | Fixed-maturity Securities [Member] | Level 3 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 779 | 1,117 |
Fair Value, Recurring Measurements [Member] | Equity Securities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 45,780 | 53,390 |
Fair Value, Recurring Measurements [Member] | Equity Securities [Member] | Level 1 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 40,214 | 47,169 |
Fair Value, Recurring Measurements [Member] | Equity Securities [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 5,518 | 6,173 |
Fair Value, Recurring Measurements [Member] | Equity Securities [Member] | Level 3 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 48 | 48 |
Fair Value, Recurring Measurements [Member] | Separate Accounts Assets, Fair Value Disclosure [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Separate accounts assets | 2,086,598 | 2,440,303 |
Fair Value, Recurring Measurements [Member] | Separate Accounts Assets, Fair Value Disclosure [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Separate accounts assets | 2,086,598 | 2,440,303 |
Fair Value, Recurring Measurements [Member] | Separate Accounts Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Separate account liabilities | 2,086,598 | 2,440,303 |
Fair Value, Recurring Measurements [Member] | Separate Accounts Liabilities [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Separate account liabilities | $ 2,086,598 | $ 2,440,303 |
Fair Value of Financial Instr56
Fair Value of Financial Instruments - Rollforward of Level 3 Assets Measured on Recurring Basis (Details) - Fair Value, Recurring Measurements [Member] - Level 3 [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Level 3 assets, beginning of period | $ 862 | $ 1,752 | $ 1,165 | $ 2,288 |
Net unrealized gains (losses) included in other comprehensive income | 2 | (13) | (4) | (115) |
Realized gains (losses) and accretion (amortization) recognized in earnings, including OTTI | 5 | 416 | ||
Settlements | (35) | (54) | (111) | (899) |
Transfers into Level 3 | 2 | |||
Transfers out of Level 3 | (2) | (225) | ||
Level 3 assets, end of period | $ 827 | $ 1,690 | $ 827 | $ 1,690 |
Fair Value of Financial Instr57
Fair Value of Financial Instruments - Narrative (Details) $ in Millions | Sep. 30, 2015USD ($) |
Fair Value Disclosures [Abstract] | |
Fair value equity, level 1 to level 2 transfers, amount | $ 1 |
Fair Value of Financial Instr58
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value for Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value | $ 1,728,946 | $ 1,812,510 |
Fixed-maturity securities held to maturity, fair value | 357,153 | 228,809 |
Trading securities | 6,534 | 7,711 |
Surplus note | 356,000 | 220,000 |
Fixed-maturity securities held to maturity | 356,000 | 220,000 |
Fair Value, Recurring Measurements [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Trading securities | 6,534 | 7,711 |
Level 2 [Member] | Fair Value, Recurring Measurements [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Trading securities | 6,534 | 7,711 |
Separate Accounts Assets, Fair Value Disclosure [Member] | Fair Value, Recurring Measurements [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Separate accounts assets | 2,086,598 | 2,440,303 |
Separate Accounts Assets, Fair Value Disclosure [Member] | Level 2 [Member] | Fair Value, Recurring Measurements [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Separate accounts assets | 2,086,598 | 2,440,303 |
Reported Value Measurement [Member] | Fair Value, Recurring Measurements [Member] | Fixed-maturity Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value | 1,683,166 | 1,759,120 |
Reported Value Measurement [Member] | Fair Value, Recurring Measurements [Member] | Equity Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value | 45,780 | 53,390 |
Reported Value Measurement [Member] | Level 3 [Member] | Fair value, Nonrecurring Measurements [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Policy loans | 28,599 | 28,095 |
Surplus note | 356,000 | 220,000 |
Fixed-maturity securities held to maturity | 356,000 | 220,000 |
Reported Value Measurement [Member] | Level 3 [Member] | Fair value, Nonrecurring Measurements [Member] | Deposits [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Deposit asset underlying 10% coinsurance agreement | 176,370 | 157,256 |
Reported Value Measurement [Member] | Level 2 [Member] | Fair Value, Recurring Measurements [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Trading securities | 6,534 | 7,711 |
Reported Value Measurement [Member] | Separate Accounts Assets, Fair Value Disclosure [Member] | Level 2 [Member] | Fair Value, Recurring Measurements [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Separate accounts assets | 2,086,598 | 2,440,303 |
Reported Value Measurement [Member] | Senior Notes [Member] | Level 2 [Member] | Fair value, Nonrecurring Measurements [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Notes payable | 374,572 | 374,532 |
Estimate of Fair Value Measurement [Member] | Fair Value, Recurring Measurements [Member] | Fixed-maturity Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value | 1,683,166 | 1,759,120 |
Estimate of Fair Value Measurement [Member] | Fair Value, Recurring Measurements [Member] | Equity Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value | 45,780 | 53,390 |
Estimate of Fair Value Measurement [Member] | Level 3 [Member] | Fair value, Nonrecurring Measurements [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed-maturity securities held to maturity, fair value | 357,153 | 228,809 |
Policy loans | 28,599 | 28,095 |
Surplus note | 357,107 | 227,127 |
Estimate of Fair Value Measurement [Member] | Level 3 [Member] | Fair value, Nonrecurring Measurements [Member] | Deposits [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Deposit asset underlying 10% coinsurance agreement | 176,370 | 157,256 |
Estimate of Fair Value Measurement [Member] | Level 2 [Member] | Fair Value, Recurring Measurements [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Trading securities | 6,534 | 7,711 |
Estimate of Fair Value Measurement [Member] | Separate Accounts Assets, Fair Value Disclosure [Member] | Level 2 [Member] | Fair Value, Recurring Measurements [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Separate accounts assets | 2,086,598 | 2,440,303 |
Estimate of Fair Value Measurement [Member] | Senior Notes [Member] | Level 2 [Member] | Fair value, Nonrecurring Measurements [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Notes payable | 407,535 | 411,916 |
Separate Accounts Liabilities [Member] | Fair Value, Recurring Measurements [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Separate account liabilities | 2,086,598 | 2,440,303 |
Separate Accounts Liabilities [Member] | Level 2 [Member] | Fair Value, Recurring Measurements [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Separate account liabilities | 2,086,598 | 2,440,303 |
Separate Accounts Liabilities [Member] | Reported Value Measurement [Member] | Level 2 [Member] | Fair Value, Recurring Measurements [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Separate account liabilities | 2,086,598 | 2,440,303 |
Separate Accounts Liabilities [Member] | Estimate of Fair Value Measurement [Member] | Level 2 [Member] | Fair Value, Recurring Measurements [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Separate account liabilities | $ 2,086,598 | $ 2,440,303 |
Fair Value of Financial Instr59
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value for Financial Instruments (Parenthetical) (Details) | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Percentage of coinsurance costs | 10.00% | 10.00% |
Reinsurance - In-force Life Ins
Reinsurance - In-force Life Insurance (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Reinsurance Disclosures [Abstract] | ||
Direct life insurance in force | $ 693,128,573 | $ 685,998,013 |
Amounts ceded to other companies | (613,138,752) | (607,218,906) |
Net life insurance in force | $ 79,989,821 | $ 78,779,107 |
Percentage of reinsured life insurance in force | 88.00% | 89.00% |
Reinsurance - Reinsurance Recei
Reinsurance - Reinsurance Receivable and Financial Strength Ratings by Reinsurer (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | $ 4,103,949 | $ 4,115,533 | |
Prime Reinsurance Company [Member] | External credit rating, not rated [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | [1] | 2,686,828 | 2,645,011 |
SCOR Global Life Reinsurance Companies [Member] | AM Best, A Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | [2] | 357,233 | 373,947 |
Financial Reassurance Company 2010, Ltd. [Member] | External credit rating, not rated [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | [1] | 279,739 | 320,718 |
Swiss Re Life & Health America Inc. [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | [3] | 253,653 | 260,734 |
American Health and Life Insurance Company [Member] | AM Best, A- u Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | [1],[4] | 177,508 | |
American Health and Life Insurance Company [Member] | AM Best, A- Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | [1] | 175,755 | |
Munich American Reassurance Company [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | 100,377 | 100,846 | |
Korean Reinsurance Company [Member] | AM Best, A Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | 89,066 | 89,300 | |
RGA Reinsurance Company [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | 80,933 | 78,143 | |
TOA Reinsurance Company [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | 22,756 | 20,139 | |
Hannover Life Reassurance Company [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | 20,417 | 18,694 | |
All Other Reinsurers [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | $ 35,439 | $ 32,246 | |
[1] | Reinsurers are affiliates of Citigroup. Amounts shown are net of their share of the reinsurance receivable from other reinsurers | ||
[2] | Includes amounts ceded to Transamerica Reinsurance Companies and fully retroceded to SCOR Global Life Reinsurance Companies. | ||
[3] | Includes amounts ceded to Lincoln National Life Insurance and fully retroceded to Swiss Re Life & Health America Inc. | ||
[4] | Under review pending the close of Springleaf Holdings, Inc.’s acquisition of the parent company of American Health and Life Insurance Company from an affiliate of Citigroup. |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Surplus note | $ 356,000 | $ 220,000 |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Surplus note | 915,000 | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 375,000 | |
Debt instrument, interest rate, stated percentage | 4.75% | |
Debt instrument maturity date | Jul. 15, 2022 | |
Surplus Note [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 4.50% | |
Debt instrument maturity date | Dec. 31, 2029 |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of Number of Shares of Common Stock (Details) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Stockholders Equity Note [Abstract] | ||
Common stock, beginning of period | 52,169 | 54,834 |
Shares issued for stock options exercised | 89 | 4 |
Shares of common stock issued upon lapse of restricted stock units ("RSUs") | 407 | 381 |
Common stock retired | (4,094) | (1,537) |
Common stock, end of period | 48,571 | 53,682 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Class Of Stock [Line Items] | ||
Stock repurchased and retired during period, shares | 4,094,000 | 1,537,000 |
Original Repurchase [Member] | ||
Class Of Stock [Line Items] | ||
Stock repurchased program, authorized amount | $ 150,000,000 | |
Combined Repurchase | ||
Class Of Stock [Line Items] | ||
Stock repurchased and retired during period, shares | 3,920,920 | |
Stock repurchased and retired during period, value | $ 181,100,000 | |
New Repurchase [Member] | ||
Class Of Stock [Line Items] | ||
Stock repurchased program, authorized amount | 200,000,000 | |
Stock repurchase program, remaining authorized repurchase amount | $ 168,900,000 | |
Restricted stock units (RSUs) [Member] | ||
Class Of Stock [Line Items] | ||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number | 1,200,000 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Income from continuing operations | $ 49,350 | $ 41,613 | $ 141,924 | $ 134,369 | |
Income (loss) from discontinued operations | $ (18) | $ 1,578 | |||
Weighted-average vested shares | 50,082 | 54,713 | 51,494 | 54,953 | |
Basic EPS from continuing operations | $ 0.98 | $ 0.75 | $ 2.73 | $ 2.42 | |
Basic EPS from discontinued operations | $ 0.03 | ||||
Dilutive effect of incremental shares to be issued for equity awards | 22 | 31 | 32 | 25 | |
Weighted-average shares used in calculating diluted EPS | 50,104 | 54,744 | 51,526 | 54,978 | |
Diluted EPS from continuing operations | $ 0.98 | $ 0.75 | $ 2.73 | $ 2.41 | |
Diluted EPS from discontinued operations | [1] | $ 0.03 | |||
Continuing Operations [Member] | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Income used in calculating basic EPS | $ 48,971 | $ 41,166 | $ 140,728 | $ 132,823 | |
Income (loss) used in calculating diluted EPS | 48,971 | 41,166 | 140,728 | 132,823 | |
Continuing Operations [Member] | Stock Compensation Plan [Member] | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Income attributable to unvested participating securities, basic EPS | (379) | (447) | (1,196) | (1,546) | |
Income attributable to unvested participating securities, diluted EPS | $ (379) | (447) | $ (1,196) | (1,546) | |
Discontinued Operations [Member] | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Income used in calculating basic EPS | (18) | 1,560 | |||
Income (loss) used in calculating diluted EPS | $ (18) | 1,560 | |||
Discontinued Operations [Member] | Stock Compensation Plan [Member] | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Income attributable to unvested participating securities, basic EPS | (18) | ||||
Income attributable to unvested participating securities, diluted EPS | $ (18) | ||||
[1] | Less than $0.01 for the three months ended September 30, 2014. |
Share-Based Transactions - Impa
Share-Based Transactions - Impact of Equity Awards Granted (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total equity awards expense recognized | $ 2,056 | $ 8,497 | $ 12,918 | $ 14,333 |
Expense Deferred [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Quarterly incentive awards expense deferred | $ 3,412 | $ 3,041 | $ 10,531 | $ 10,371 |
Share-Based Transactions - Narr
Share-Based Transactions - Narrative (Details) | Feb. 23, 2015 |
2015 Management Awards [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Commitments and Contingent Li68
Commitments and Contingent Liabilities - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($)Jurisdiction | |
Commitments And Contingent Liabilities [Line Items] | |
Number of jurisdiction | Jurisdiction | 30 |
Letter of Credit [Member] | |
Commitments And Contingent Liabilities [Line Items] | |
Letter of credit, outstanding | $ 480.2 |