Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 31, 2016 | Jun. 30, 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-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 48,067,109 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,250,876,121 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | ||
Investments: | ||||
Fixed-maturity securities available-for-sale, at fair value (amortized cost: $1,690,043 in 2015 and $1,655,221 in 2014) | $ 1,731,459 | [1] | $ 1,759,120 | [2] |
Fixed-maturity securities held-to-maturity, at amortized cost (fair value: $371,742 in 2015 and $228,809 in 2014) | 365,220 | 220,000 | ||
Equity securities available-for-sale, at fair value (cost: $39,969 in 2015 and $43,703 in 2014) | 47,839 | 53,390 | ||
Trading securities, at fair value (cost: $5,383 in 2015 and $7,710 in 2014) | 5,358 | 7,711 | ||
Policy loans | 28,627 | 28,095 | ||
Total investments | 2,178,503 | 2,068,316 | ||
Cash and cash equivalents | 152,294 | 191,997 | ||
Accrued investment income | 17,080 | 17,401 | ||
Due from reinsurers | 4,110,628 | 4,115,533 | ||
Deferred policy acquisition costs, net | 1,500,259 | 1,351,180 | ||
Premiums and other receivables | 193,841 | 181,660 | ||
Intangible assets, net | 58,318 | 61,720 | ||
Deferred income taxes | 30,112 | 36,082 | ||
Other assets | 307,185 | 273,403 | ||
Separate account assets | 2,063,899 | 2,440,303 | ||
Total assets | 10,612,119 | 10,737,595 | ||
Liabilities: | ||||
Future policy benefits | 5,431,711 | 5,264,608 | ||
Unearned premiums | 628 | 912 | ||
Policy claims and other benefits payable | 238,157 | 245,829 | ||
Other policyholders’ funds | 356,123 | 344,978 | ||
Notes payable | 374,585 | 374,532 | ||
Surplus note | 365,220 | 220,000 | ||
Current income tax payable | 6,476 | 15,014 | ||
Deferred income taxes | 141,649 | 125,453 | ||
Other liabilities | 416,417 | 410,629 | ||
Payable under securities lending | 71,482 | 50,211 | ||
Separate account liabilities | $ 2,063,899 | $ 2,440,303 | ||
Commitments and contingent liabilities (see Commitments and Contingent Liabilities note) | ||||
Total liabilities | $ 9,466,347 | $ 9,492,469 | ||
Stockholders’ equity: | ||||
Common stock ($0.01 par value; authorized 500,000 in 2015 and 2014; issued and outstanding 48,297 shares in 2015 and 52,169 shares in 2014) | 483 | 522 | ||
Paid-in capital | 180,250 | 353,337 | ||
Retained earnings | 952,804 | 795,740 | ||
Accumulated other comprehensive income (loss), net of income tax: | ||||
Unrealized foreign currency translation gains (losses) | (19,801) | 21,681 | ||
Net unrealized investment gains (losses): | ||||
Net unrealized investment gains not other-than-temporarily impaired | 32,107 | 74,308 | ||
Net unrealized investment losses other-than-temporarily impaired | (71) | (462) | ||
Total stockholders’ equity | 1,145,772 | 1,245,126 | ||
Total liabilities and stockholders’ equity | $ 10,612,119 | $ 10,737,595 | ||
[1] | Includes approximately $0.1 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. | |||
[2] | Includes approximately $0.7 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | ||
Investments: | ||||
Fixed-maturity securities available for sale, amortized cost | $ 1,690,043 | [1] | $ 1,655,221 | [2] |
Fixed-maturity securities held to maturity, fair value | 371,742 | 228,809 | ||
Equity securities available for sale, cost | 39,969 | 43,703 | ||
Trading securities, cost | $ 5,383 | $ 7,710 | ||
Stockholders’ equity: | ||||
Common stock, par value | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 500,000,000 | 500,000,000 | ||
Common stock, shares issued | 48,297,000 | 52,169,000 | ||
Common stock, shares outstanding | 48,297,000 | 52,169,000 | ||
[1] | Includes approximately $0.1 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. | |||
[2] | Includes approximately $0.7 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Direct premiums | $ 2,345,444 | $ 2,301,332 | $ 2,265,191 |
Ceded premiums | (1,595,220) | (1,616,817) | (1,644,158) |
Net premiums | 750,224 | 684,515 | 621,033 |
Commissions and fees | 537,146 | 527,166 | 471,808 |
Investment income net of investment expenses | 89,557 | 89,955 | 88,752 |
Interest expense on surplus note | (13,048) | (3,482) | |
Net investment income | 76,509 | 86,473 | 88,752 |
Realized investment gains (losses), including other-than- temporary impairment losses | (1,738) | (261) | 6,246 |
Other, net | 43,173 | 40,731 | 41,159 |
Total revenues | 1,405,314 | 1,338,624 | 1,228,998 |
Benefits and expenses: | |||
Benefits and claims | 339,315 | 311,417 | 279,931 |
Amortization of deferred policy acquisition costs | 157,727 | 144,378 | 129,183 |
Sales commissions | 274,893 | 268,775 | 232,237 |
Insurance expenses | 123,021 | 114,046 | 103,885 |
Insurance commissions | 16,340 | 15,353 | 16,530 |
Interest expense | 33,507 | 34,570 | 35,018 |
Other operating expenses | 169,530 | 174,363 | 187,208 |
Total benefits and expenses | 1,114,333 | 1,062,902 | 983,992 |
Income from continuing operations before income taxes | 290,981 | 275,722 | 245,006 |
Income taxes | 101,110 | 95,888 | 86,305 |
Income from continuing operations | 189,871 | 179,834 | 158,701 |
Income from discontinued operations, net of income taxes | 1,578 | 4,024 | |
Net income | $ 189,871 | $ 181,412 | $ 162,725 |
Basic earnings per share: | |||
Continuing operations | $ 3.70 | $ 3.26 | $ 2.80 |
Discontinued operations | 0.03 | 0.07 | |
Basic earnings per share | 3.70 | 3.29 | 2.87 |
Diluted earnings per share: | |||
Continuing operations | 3.70 | 3.26 | 2.76 |
Discontinued operations | 0.03 | 0.07 | |
Diluted earnings per share | $ 3.70 | $ 3.29 | $ 2.83 |
Weighted-average shares used in computing earnings per share: | |||
Basic | 50,881 | 54,567 | 55,834 |
Diluted | 50,913 | 54,598 | 56,625 |
Supplemental disclosures: | |||
Total impairment losses | $ (6,893) | $ (4,045) | $ (1,095) |
Impairment losses recognized in other comprehensive income before income taxes | 479 | ||
Net impairment losses recognized in earnings | (6,893) | (4,045) | (616) |
Other net realized investment gains | 5,155 | 3,784 | 6,862 |
Realized investment gains (losses), including other-than- temporary impairment losses | $ (1,738) | $ (261) | $ 6,246 |
Dividends declared per share | $ 0.64 | $ 0.48 | $ 0.44 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement Of Income And Comprehensive Income [Abstract] | |||||||||||
Net income | $ 47,949 | $ 49,350 | $ 49,173 | $ 43,401 | $ 45,466 | $ 41,595 | $ 49,271 | $ 45,080 | $ 189,871 | $ 181,412 | $ 162,725 |
Unrealized investment gains (losses): | |||||||||||
Change in unrealized holding gains (losses) on investment securities | (65,920) | 11,228 | (68,769) | ||||||||
Reclassification adjustment for realized investment (gains) losses included in net income | 1,596 | 794 | (4,909) | ||||||||
Foreign currency translation adjustments: | |||||||||||
Change in unrealized foreign currency translation gains (losses) before income tax expense (benefit) | (41,929) | (20,527) | (13,695) | ||||||||
Total other comprehensive income (loss) before income taxes | (106,253) | (8,505) | (87,373) | ||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | (22,961) | 3,974 | (25,969) | ||||||||
Other comprehensive income (loss), net of income taxes | (83,292) | (12,479) | (61,404) | ||||||||
Total comprehensive income | $ 106,579 | $ 168,933 | $ 101,321 |
Consolidated Statements of Stoc
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, 2012 | $ 564 | $ 602,269 | $ 503,173 | $ 169,410 | |
Repurchases of common stock | (29) | (101,044) | |||
Net issuance of common stock | 13 | (13) | |||
Balance, end of period at Dec. 31, 2013 | $ 1,222,027 | 548 | 472,633 | 640,840 | 108,006 |
Share-based compensation | 39,195 | ||||
Repurchases of warrants | (68,399) | ||||
Adjustments to paid-in capital, other | 625 | ||||
Net income | 162,725 | 162,725 | |||
Dividends | (25,058) | ||||
Change in foreign currency translation adjustment, net of income tax expense (benefit) of $(447) in 2015, $(234) in 2014, and $(182) in 2013 | (13,513) | ||||
Change in net unrealized investment gains (losses) not-other-than temporarily impaired, net of income tax expense (benefit) of $(22,723) in 2015, $3,731 in 2014, and $(25,619) in 2013 | (47,579) | ||||
Change in net unrealized investment losses other-than-temporarily impaired, net of income tax expense (benefit) of $210 in 2015, $477 in 2014, and $(168) in 2013 | (312) | ||||
Repurchases of common stock | (31) | (154,268) | |||
Net issuance of common stock | 5 | (5) | |||
Balance, end of period at Dec. 31, 2014 | 1,245,126 | 522 | 353,337 | 795,740 | 95,527 |
Share-based compensation | 37,494 | ||||
Adjustments to paid-in capital, other | (2,517) | ||||
Net income | 181,412 | 181,412 | |||
Dividends | (26,512) | ||||
Change in foreign currency translation adjustment, net of income tax expense (benefit) of $(447) in 2015, $(234) in 2014, and $(182) in 2013 | (20,293) | ||||
Change in net unrealized investment gains (losses) not-other-than temporarily impaired, net of income tax expense (benefit) of $(22,723) in 2015, $3,731 in 2014, and $(25,619) in 2013 | 6,929 | ||||
Change in net unrealized investment losses other-than-temporarily impaired, net of income tax expense (benefit) of $210 in 2015, $477 in 2014, and $(168) in 2013 | 885 | ||||
Repurchases of common stock | (45) | (207,714) | |||
Net issuance of common stock | 6 | (6) | |||
Balance, end of period at Dec. 31, 2015 | 1,145,772 | $ 483 | 180,250 | 952,804 | $ 12,235 |
Share-based compensation | 33,544 | ||||
Adjustments to paid-in capital, other | $ 1,089 | ||||
Net income | 189,871 | 189,871 | |||
Dividends | $ (32,807) | ||||
Change in foreign currency translation adjustment, net of income tax expense (benefit) of $(447) in 2015, $(234) in 2014, and $(182) in 2013 | (41,482) | ||||
Change in net unrealized investment gains (losses) not-other-than temporarily impaired, net of income tax expense (benefit) of $(22,723) in 2015, $3,731 in 2014, and $(25,619) in 2013 | (42,201) | ||||
Change in net unrealized investment losses other-than-temporarily impaired, net of income tax expense (benefit) of $210 in 2015, $477 in 2014, and $(168) in 2013 | $ 391 |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity - Parenthetical - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in net unrealized investment gains (losses) not-other-than-temporarily impaired, income tax expense (benefit) | $ (23,074) | $ 3,930 | $ (24,069) |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Change in foreign currency translation adjustment, income tax expense (benefit) | (447) | (234) | (182) |
Change in net unrealized investment gains (losses) not-other-than-temporarily impaired, income tax expense (benefit) | (22,724) | 3,731 | (25,619) |
Change in net unrealized investment losses other-than-temporarily impaired, income tax expense (benefit) | $ 210 | $ 477 | $ (168) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 189,871 | $ 181,412 | $ 162,725 |
Adjustments to reconcile net income to cash provided by (used in) operating activities: | |||
Change in future policy benefits and other policy liabilities | 242,672 | 258,775 | 213,788 |
Deferral of policy acquisition costs | (326,197) | (289,945) | (267,523) |
Amortization of deferred policy acquisition costs | 157,727 | 144,378 | 129,183 |
Deferred tax provision | 38,292 | 25,757 | 18,333 |
Change in income taxes | 700 | 1,090 | (6,423) |
Realized investment (gains) losses, including other-than-temporary impairments | 1,738 | 261 | (6,246) |
Gain from sale of business, net | (1,578) | ||
Accretion and amortization of investments | (1,343) | (4,825) | (4,554) |
Depreciation and amortization | 10,998 | 12,266 | 10,803 |
Change in due from reinsurers | (49,966) | (90,024) | (73,070) |
Change in premiums and other receivables | (11,416) | (11,067) | (8,241) |
Trading securities sold, matured, or called (acquired), net | 2,308 | 5,232 | (5,265) |
Share-based compensation | 14,940 | 17,982 | 13,788 |
Change in other operating assets and liabilities, net | (11,235) | (12,382) | 10,394 |
Net cash provided by (used in) operating activities | 259,089 | 237,332 | 187,692 |
Available-for-sale investments sold, matured or called: | |||
Fixed-maturity securities — sold | 130,608 | 109,681 | 98,277 |
Fixed-maturity securities — matured or called | 247,771 | 314,589 | 266,738 |
Equity securities | 4,894 | 2,351 | 6,200 |
Available-for-sale investments acquired: | |||
Fixed-maturity securities | (433,457) | (425,904) | (308,904) |
Equity securities | (882) | (11,878) | (3,009) |
Purchases of property and equipment and other investing activities, net | (7,399) | (7,484) | (23,818) |
Proceeds from sale of business | 3,000 | ||
Cash collateral received (returned) on loaned securities, net | 21,271 | (39,641) | (50,075) |
Sales (purchases) of short-term investments using securities lending collateral, net | (21,271) | 39,641 | 50,075 |
Net cash provided by (used in) investing activities | (58,465) | (15,645) | 35,484 |
Cash flows from financing activities: | |||
Dividends paid | (32,807) | (26,512) | (25,058) |
Common stock repurchased | (200,084) | (147,922) | (86,280) |
Warrants repurchased | (68,399) | ||
Excess tax benefits on share-based compensation | 5,162 | 5,804 | 9,590 |
Tax withholdings on share-based compensation | (7,675) | (6,377) | (14,793) |
Cash proceeds from stock options exercised | 136 | ||
Payments of deferred financing costs | (876) | ||
Net cash provided by (used in) financing activities | (235,268) | (175,883) | (184,940) |
Effect of foreign exchange rate changes on cash | (5,059) | (2,789) | (1,468) |
Change in cash and cash equivalents | (39,703) | 43,015 | 36,768 |
Cash and cash equivalents, beginning of period | 191,997 | 148,982 | 112,214 |
Cash and cash equivalents, end of period | 152,294 | 191,997 | 148,982 |
Supplemental disclosures of cash flow information: | |||
Income taxes paid | 62,116 | 66,077 | 68,599 |
Interest paid | $ 32,386 | $ 33,058 | $ 32,905 |
Description of Business, Basis
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 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. 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”), and 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 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 consolidated financial statements at December 31, 2015. Foreign Currency Translation. Assets and liabilities of our Canadian subsidiaries are translated into U.S. dollars using year-end exchange rates. Revenues and expenses of our Canadian subsidiaries are translated monthly at amounts that approximate weighted-average exchange rates. Translation adjustments resulting from translating the financial statements of our Canadian subsidiaries into U.S. dollars are reported in other comprehensive income (loss). Investments. Investments are reported on the following bases: · Available-for-sale (“AFS”) fixed-maturity securities, including bonds and redeemable preferred stocks not classified as trading securities, are carried at fair value. When quoted market values are unavailable, we obtain estimates from independent pricing services or estimate fair value based upon a comparison to quoted issues of the same issuer or of other issuers with similar characteristics. · Held-to-maturity fixed-maturity security, which is carried at amortized cost. · Equity securities, including common and nonredeemable preferred stocks, are classified as AFS and are carried at fair value. When quoted market values are unavailable, we obtain estimates from independent pricing services or estimates fair value based upon a comparison to quoted issues of the same issuer or of other issuers with similar characteristics. · Trading securities, which primarily consist of bonds, are carried at fair value. Changes in fair value of trading securities are included in net investment income in the period in which the change occurred. · Policy loans are carried at unpaid principal balances, which approximate fair value. Investment transactions are recorded on a trade-date basis. We use the specific-identification method to determine the realized gains or losses from securities transactions and report the realized gains or losses in the accompanying consolidated statements of income. Unrealized gains and losses on AFS securities are included as a separate component of other comprehensive income, except for other-than-temporary impairments (“OTTI”) discussed below, in the accompanying consolidated statements of comprehensive income. Investments are reviewed on a quarterly basis for OTTI. Credit risk, interest rate risk, the amount of time the security has been in an unrealized loss position, actions taken by ratings agencies, and other factors are considered in determining whether an unrealized loss is other-than-temporary. OTTI in our accompanying consolidated statements of income reflect the impairment on AFS securities that we intend to sell or would more likely than not be required to sell before the expected recovery of the amortized cost basis. For AFS fixed maturity securities that we have no intent to sell and believe that it is not more likely than not we will be required to sell prior to recovery, only the credit loss component of OTTI is recognized in our accompanying consolidated statements of income, while the remainder is recognized in other comprehensive income (“OCI”) in the accompanying consolidated statements of comprehensive income (loss). The credit loss component of OTTI recognized in net income is identified as the amount of principal cash flows not expected to be received over the remaining term of the security. Any subsequent changes (if not an other-than-temporary impairment) in the fair value of AFS securities are recognized in other comprehensive income in the accompanying statements of comprehensive income. Interest income on fixed-maturity securities is recorded when earned by determining the effective yield, which gives consideration to amortization of premiums, accretion of discounts, and any previous OTTI. Dividend income on equity securities is recorded when declared. These amounts are included in net investment income in the accompanying consolidated statements of income. Included within fixed-maturity securities are loan-backed and asset-backed securities. Amortization of the premium or accretion of the discount uses the retrospective method. The effective yield used to determine amortization/accretion is calculated based on actual and historical projected future cash flows and updated quarterly. 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 recorded in realized gains (losses), including OTTI in the accompanying consolidated statements of income. Components of OCI. The components of OCI, including the income tax expense or benefit allocated to each component, were as follows: Year ended December 31, 2015 2014 2013 (in thousands) Foreign currency translation adjustments: Change in unrealized foreign currency translation gains (losses) before income taxes $ (41,929 ) $ (20,527 ) $ (13,695 ) Income tax expense (benefit) on unrealized foreign currency translation gains (losses) (447 ) (234 ) (182 ) Change in unrealized foreign currency translation gains (losses), net of income taxes $ (41,482 ) $ (20,293 ) $ (13,513 ) Unrealized gains (losses) on AFS securities: Change in unrealized holding gains (losses) arising during period before income taxes $ (65,920 ) $ 11,228 $ (68,769 ) Income tax expense (benefit) on unrealized holding gains (losses) arising during period (23,074 ) 3,930 (24,069 ) Change in unrealized holding gains (losses) on AFS securities arising during period, net of income taxes (42,846 ) 7,298 (44,700 ) Reclassification from accumulated OCI to net income for (gains) losses realized on AFS securities $ 1,596 $ 794 $ (4,909 ) Income tax (expense) benefits on (gains) losses reclassified from accumulated OCI to net income 560 278 (1,718 ) Reclassification from accumulated OCI to net income for (gains) losses realized on AFS securities, net of income taxes 1,036 516 (3,191 ) Change in unrealized gains (losses) on AFS securities, net of income taxes and reclassification adjustment $ (41,810 ) $ 7,814 $ (47,891 ) Cash and Cash Equivalents. Cash and cash equivalents include cash on hand, money market instruments, and all other highly liquid investments purchased with an original or remaining maturity of three months or less at the date of acquisition. Reinsurance. We use reinsurance extensively, utilizing yearly renewable term (“YRT”) and coinsurance agreements. Under YRT agreements, we reinsure only the mortality risk, while under coinsurance, we reinsure a proportionate part of all risks arising under the reinsured policy. Under coinsurance, the reinsurer receives a proportionate part of the premiums, less commission allowances, and is liable for a corresponding part of all benefit payments. All reinsurance contracts in effect for the three-year period ended December 31, 2015 transfer a reasonable possibility of substantial loss to the reinsurer or are accounted for under the deposit method of accounting. Ceded premiums are treated as a reduction to direct premiums and are recognized when due to the assuming company. Ceded claims are treated as a reduction to direct benefits and are recognized when the claim is incurred on a direct basis. Ceded policy reserve changes are also treated as a reduction to benefits and claims expense and are recognized during the applicable financial reporting period. Reinsurance premiums, commissions, expense reimbursements and benefits and reserves related to reinsured long-duration contracts are accounted for over the life of the underlying contracts using assumptions consistent with those used to account for the underlying policies. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liabilities and future policy benefits associated with reinsured policies. Ceded policy reserves and claims liabilities relating to insurance ceded are shown as due from reinsurers on the accompanying consolidated balance sheets. We analyze and monitor the credit-worthiness of each of our reinsurance partners to minimize collection issues. For reinsurance contracts with unauthorized reinsurers, we require collateral such as letters of credit. To the extent we receive ceding allowances to cover policy and claims administration under reinsurance contracts, these allowances are treated as a reduction to insurance commissions and expenses and are recognized when due from the assuming company. To the extent we receive ceding allowances reimbursing commissions that would otherwise be deferred, the amount of commissions deferrable will be reduced. The corresponding DAC balances are reduced on a pro rata basis by the portion of the business reinsured with reinsurance agreements that meet risk transfer provisions. The reduced DAC will result in a corresponding reduction of amortization expense. DAC. We only defer the costs of acquiring new business to the extent that they result directly from and are essential to the contract transaction(s) and would not have been incurred had the contract transaction(s) not occurred. These deferred policy acquisition costs mainly include commissions and policy issue expenses. All other acquisition-related costs, including unsuccessful acquisition and renewal efforts, are charged to expense as incurred. Also, administrative costs, rent, depreciation, occupancy, equipment, and all other general overhead costs are considered indirect costs and are charged to expense as incurred. DAC for term life insurance policies is amortized over the initial premium-paying period of the related policies in proportion to premium income. DAC for Canadian segregated funds is amortized over the life of the underlying policies at a constant rate based on the present value of the estimated gross profits expected to be realized over the life of the underlying policies. DAC is subject to recoverability testing annually and when impairment indicators exist. Intangible Assets. Intangible assets are amortized over their estimated useful lives. Any intangible asset that was deemed to have an indefinite useful life is not amortized but is subject to an annual impairment test. An impairment exists if the carrying value of the indefinite-lived intangible asset exceeds its fair value. For the other intangible assets, which are subject to amortization, an impairment is recognized if the carrying amount is not recoverable and exceeds the fair value of the intangible asset. The components of intangible assets were as follows: December 31, 2015 2014 Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount (In thousands) Indefinite-lived intangible asset $ 45,275 n/a $ 45,275 $ 45,275 n/a $ 45,275 Amortizing intangible asset 84,871 (71,828 ) 13,043 84,871 (68,426 ) 16,445 Total intangible assets $ 130,146 $ (71,828 ) $ 58,318 $ 130,146 $ (68,426 ) $ 61,720 We have an indefinite-lived intangible asset related to the 1989 purchase of the right to contract with our sales force. This asset represents the core distribution model of our business, which is our primary competitive advantage to profitably distribute term life insurance and investment and savings products on a significant scale, and as such, is considered to have an indefinite life. This indefinite-lived intangible asset is supported by a significant portion of the discounted cash flows of our future business. We assessed this asset for impairment as of October 1, 2015 and determined that no impairment had occurred. There have been no subsequent events requiring further analysis. We also have an amortizing intangible asset related to a 1995 sales agreement termination payment to Management Financial Services, Inc. This asset is supported by a non-compete agreement with the founder of our business model. We calculate the amortization of this contract buyout on a straight-line basis over 24 years, which represents the life of the non-compete agreement. Intangible asset amortization expense was approximately $3.4 million Property and Equipment. Property and equipment, which are included in other assets, are stated at cost, less accumulated depreciation. Depreciation is recognized on a straight-line basis over the asset’s estimated useful life, which is estimated as follows: Estimated Useful Life Data processing equipment and software 3 to 7 years Leasehold improvements Lesser of 15 years or remaining life of lease Furniture and other equipment 5 to 15 years Depreciation expense is included in other operating expenses in the accompanying consolidated statements of income. Depreciation expense was $7.6 million, $7.0 million, and $7.3 million for the years ended December 31, 2015, 2014, and 2013, respectively. Property and equipment balances were as follows: December 31, 2015 2014 (In thousands) Data processing equipment and software $ 60,414 $ 50,956 Leasehold improvements 13,947 13,910 Other, principally furniture and equipment 27,065 26,763 101,426 91,629 Accumulated depreciation (72,017 ) (65,166 ) Net property and equipment $ 29,409 $ 26,463 Separate Accounts. The separate accounts are primarily comprised of contracts issued by the Company through its subsidiary, Primerica Life Canada, pursuant to the Insurance Companies Act (Canada). The Insurance Companies Act authorizes Primerica Life Canada to establish the separate accounts. The separate accounts are represented by individual variable annuity contracts. Purchasers of variable annuity contracts issued by Primerica Life Canada have a direct claim to the benefits of the contract that entitles the holder to units in one or more investment funds (the “Funds”) maintained by Primerica Life Canada. The Funds invest in assets that are held for the benefit of the owners of the contracts. The benefits provided vary in amount depending on the market value of the Funds’ assets. The Funds’ assets are administered by Primerica Life Canada and are held separate and apart from the general assets of the Company. The liabilities reflect the variable insurance annuity contract holders’ interests in variable annuity assets based upon actual investment performance of the respective Funds. Separate account operating results relating to contract holders’ interests are excluded from our consolidated statements of income. Primerica Life Canada’s contract offerings guarantee the maturity value at the date of maturity (or upon death, whichever occurs first) to be equal to 75% of the sum of all contributions made, net of withdrawals, on a first-in first-out basis. Otherwise, the maturity value or death benefit will be the accumulated value of units allocated to the contract at the specified valuation date. The amount of this value is not guaranteed, but will fluctuate with the fair value of the Funds. Policyholder Liabilities. Future policy benefits are accrued over the current and expected renewal periods of the contracts. Liabilities for future policy benefits on traditional life insurance products have been computed using a net level method, including assumptions as to interest rates, mortality, persistency, and other assumptions based on our experience, modified as necessary to reflect anticipated trends and to include provisions for possible adverse deviation. The underlying mortality tables are the Society of Actuaries (“SOA”) 65-70, SOA 75-80, SOA 85-90, and the 91 Bragg, modified to reflect various underwriting classifications and assumptions. Interest rate reserve assumptions at December 31, 2015 and 2014 ranged from approximately 3.5% to 7.0%. For policies issued in 2010 and after, we have been using an increasing interest rate assumption to reflect the historically low interest rate environment. The liability for policy claims and other benefits payable on traditional life insurance products includes estimated unpaid claims that have been reported to us and claims incurred but not yet reported. The future policy benefit reserves we establish are necessarily based on estimates, assumptions and our analysis of historical experience. We do not modify the assumptions used to establish future policy benefit reserves during the policy term unless recoverability testing deems them to be inadequate and there is no remaining DAC associated with the underlying policies. Our results depend significantly upon the extent to which our actual claims experience is consistent with the assumptions we used in determining our future policy benefit reserves and pricing our products. Our future policy benefit reserve assumptions and estimates require significant judgment and, therefore, are inherently uncertain. We cannot determine with precision the ultimate amounts that we will pay for actual claims or the timing of those payments. Other Policyholders’ Funds . Other policyholders’ funds primarily represent claim payments left on deposit with us. Litigation. The Company is involved from time to time in legal disputes, regulatory inquiries and arbitration proceedings in the normal course of business. Contingent litigation- related losses are recognized when probable and can be reasonably estimated. Legal costs, such as attorney’s fees and other litigation-related expenses, that are incurred in connection with resolving litigation are expensed as incurred. These disputes are subject to uncertainties, including indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation. Due to the difficulty of estimating costs of litigation, actual costs may be substantially higher or lower than any amounts reserved. Income Taxes . We are subject to the income tax laws of the United States, its states, municipalities, and certain unincorporated territories, and those of Canada. These tax laws can be complex and subject to different interpretations by the taxpayer and the relevant governmental taxing authorities. In establishing a provision for income tax expense, we must make judgments and interpretations about the applicability of these tax laws. We also must make estimates about the future impact certain items will have on taxable income in the various tax jurisdictions, both domestic and foreign. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to (i) differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and (ii) operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are recognized subject to management’s judgment that realization is more likely than not applicable to the periods in which we expect the temporary difference will reverse. Premium Revenues . Traditional life insurance products consist principally of those products with fixed and guaranteed premiums and benefits, and are primarily related to term products. Premiums are recognized as revenues when due. Commissions and Fees. We receive commission revenues from the sale of various non-life insurance products. Commissions are generally received on sales of mutual funds and annuities. We also receive trail commission revenues from mutual fund and annuity products based on the net asset value of shares sold by us. We, in turn, pay certain commissions to our sales force. Additionally, we receive marketing and support fees from product originators. We also receive management fees based on the average daily net asset value of managed investments and contracts related to separate account assets issued by Primerica Life Canada. We earn recordkeeping fees for administrative functions that we perform on behalf of several of our mutual fund providers and custodial fees for services performed as a non-bank custodian of our clients’ retirement plan accounts. We, in turn, pay a third-party provider for its servicing of certain of these accounts. Commissions and fees are recognized as income during the period in which they are earned. Benefits and Expenses . Benefit and expense items are charged to income in the period in which they are incurred. Both the change in policyholder liabilities, which is included in benefits and claims, and the amortization of deferred policy acquisition costs will vary with policyholder persistency. Share-Based Transactions. For employee and director share-based compensation awards, we determine a grant date fair value, based on the price of our publicly-traded common stock, and recognize the related compensation expense, adjusted for expected forfeitures, in the statement of income on a straight-line basis over the requisite service period for the entire award. For non-employee share-based compensation, we recognize the impact during the period of performance, and the fair value of the award is measured as of the date performance is complete, which is the vesting date. To the extent that a share-based award contains sale restrictions extending beyond the vesting date, we reduce the recognized fair value of the award to reflect the corresponding illiquidity discount. Most non-employee share-based compensation is 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 these expenses and amortize the impact in the same manner as all other DAC. Earnings Per Share (“EPS”). The Company has outstanding common stock and equity awards that consist of restricted stock, restricted stock units (“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 EPS as they maintain dividend rights. See Note 13 (Earnings Per Share) for details related to the calculations of our basic and diluted EPS using the two-class method. New Accounting Principles. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 clarifies the principles for recognizing revenue by establishing the core principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue that is recognized. Insurance contracts are specifically excluded from the scope of ASU 2014-09 and therefore revenue from our insurance product lines will not be affected by the new standard. The amendments in ASU 2014-09, as updated by ASU No. 2015-14, are effective retrospectively for the Company beginning in fiscal year 2018. Early adoption is not permitted. While we are still in the process of evaluating the guidance in ASU 2014-09, we do not expect it will have a material impact on our consolidated financial statements. 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 . In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instruments—Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities Future Application of Accounting Standards. Recent accounting guidance not discussed is not applicable, is immaterial to our financial statements, or did not or will not have an impact on our business. |
Discontinued Operations (Notes)
Discontinued Operations (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | (2) Discontinued Operations In January 2014, NBLIC sold the assets and liabilities of its short-term statutory disability benefit insurance business (“DBL”) to AmTrust North America, Inc. and its affiliates (the “buyer”). As part of the sale agreement, the buyer assumed all liabilities for DBL insurance policies. In addition, NBLIC transferred the assets held in support of DBL’s insurance liabilities and all other premium-related assets and liabilities to the buyer as of January 1, 2014. The results of DBL’s operations from January 1, 2014 forward were also transferred to the buyer. NBLIC received cash proceeds from the sale of $3.0 million and recognized a pre-tax gain on the sale of approximately $2.4 million, which comprised income from discontinued operations before income taxes in our results of operations for the year ended December 31, 2014. After the sale, we no longer had significant continuing involvement in the operations of DBL, and its direct cash flows have been eliminated from our ongoing operations. As a result, beginning in 2014, the results of operations for DBL have been reported in discontinued operations for all periods presented in the consolidated statements of income. We had no assets or liabilities related to DBL as of December 31, 2015 and 2014. The results of DBL included in discontinued operations were as follows: Year ended December 31, 2015 2014 2013 (In thousands) Total revenues from discontinued operations $ - $ - $ 36,878 Income from discontinued operations before income taxes - 2,427 6,192 Provision for income taxes - 849 2,168 Income from discontinued operations, net income taxes $ - $ 1,578 $ 4,024 |
Segment and Geographical Inform
Segment and Geographical Information (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | (3) Segment and Geographical Information Segments. We have two primary operating segments — Term Life Insurance and Investment and Savings Products. The Term Life Insurance segment includes underwriting profits on our in-force book of term life insurance policies, net of reinsurance, which are underwritten by our life insurance company subsidiaries. The Investment and Savings Products segment includes retail and managed mutual funds and annuities distributed through licensed broker-dealer subsidiaries and includes segregated funds, an individual annuity savings product that we underwrite in Canada through Primerica Life Canada. In the United States, we distribute mutual fund and annuity products of several third-party companies. We also earn fees for account servicing on a subset of the mutual funds we distribute. In Canada, we offer a Primerica-branded fund-of-funds mutual fund product, as well as mutual funds of well-known mutual fund companies. These two operating segments are managed separately because their products serve different needs — term life insurance income protection versus wealth-building savings products. We also have a Corporate and Other Distributed Products segment, which consists primarily of revenues and expenses related to the distribution of non-core products, allocated net investment income, prepaid legal services and various financial products other than our core term life insurance products generally underwritten or offered by third-party providers. All of the Company’s net investment income, except for the portion allocated to the Term Life Insurance segment that represents the assumed interest accreted to its U.S. GAAP-measured future policy benefit reserve liability less DAC, is attributed to the Corporate and Other Distributed Products segment. The results of operations for DBL were previously reported in our Corporate and Other Distributed Products segment and have been reclassified into discontinued operations as discussed in Note 2 (Discontinued Operations). Results of continuing operations by segment were as follows: Year ended December 31, 2015 2014 2013 (In thousands) Revenues: Term life insurance segment $ 763,948 $ 692,560 $ 627,637 Investment and savings products segment 522,220 512,073 457,138 Corporate and other distributed products segment 119,146 133,991 144,223 Total revenues $ 1,405,314 $ 1,338,624 $ 1,228,998 Income (loss) from continuing operations before income taxes: Term life insurance segment $ 173,209 $ 152,101 $ 148,278 Investment and savings products segment 146,083 146,017 105,149 Corporate and other distributed products segment (28,311 ) (22,396 ) (8,421 ) Total income from continuing operations before income taxes $ 290,981 $ 275,722 $ 245,006 Insurance expenses and other operating expenses directly attributable to the Term Life Insurance and the Investment and Savings Products segments are recorded directly to the applicable segment. We allocate certain other revenue and operating expenses that are not directly attributable to a specific operating segment based on the relative sizes of our life-licensed and securities-licensed independent sales forces. These allocated items include fees charged for access to our sales force support applications and costs incurred for field technology, supervision, training and certain miscellaneous costs. We also allocate certain technology and occupancy costs to our operating segments based on usage. Any remaining unallocated revenue and expense items, as well as realized investment gains and losses, are reported in the Corporate and Other Distributed Products segment. We measure income and loss for the segments on an income before income taxes basis. Total assets by segment were as follows: December 31, 2015 December 31, 2014 December 31, 2013 (In thousands) Assets: Term life insurance segment $ 5,639,497 $ 5,472,415 $ 5,253,756 Investment and savings products segment (1) 2,157,548 2,545,372 2,609,008 Corporate and other distributed products segment 2,815,074 2,719,808 2,466,980 Total assets $ 10,612,119 $ 10,737,595 $ 10,329,744 (1) Assets specifically related to a segment are held in that segment. All invested assets held by the Company, including the deposit asset recognized in connection with our 10% coinsurance agreement (the “10% Coinsurance Agreement”) and the held-to-maturity security received in connection with the Vidalia Re Coinsurance Agreement, are reported as assets of the Corporate and Other Distributed Products segment. DAC is recognized in a particular segment based on the product to which it relates. Separate account assets supporting the segregated funds product in Canada are held in the Investment and Savings Products segment. Any remaining unallocated assets are reported in the Corporate and Other Distributed Products segment. 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. Segment Measurement Change . 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 (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 that are 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 by approximately $1.7 billion as of December 31, 2014 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: Year ended December 31, 2014 2013 (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 $ 65,326 $ 65,767 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: Year ended December 31, 2014 2013 (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 $ 16,396 $ 16,846 Geographical Information. Results of continuing operations by country and long-lived assets — primarily tangible assets reported in other assets in our consolidated balance sheets —were as follows: Year ended December 31, 2015 2014 2013 (In thousands) Revenues by country: United States $ 1,173,556 $ 1,095,888 $ 998,186 Canada 231,758 242,736 230,812 Total revenues $ 1,405,314 $ 1,338,624 $ 1,228,998 Income from continuing operations before income taxes by country: United States $ 225,920 $ 203,120 $ 177,312 Canada 65,061 72,602 67,694 Total income from continuing operations before income taxes $ 290,981 $ 275,722 $ 245,006 December 31, 2015 December 31, 2014 December 31, 2013 (In thousands) Long-lived assets by country: United States $ 28,621 $ 25,897 $ 24,413 Canada 787 566 637 Total long-lived assets $ 29,408 $ 26,463 $ 25,050 |
Investments (Notes)
Investments (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | (4) Investments AFS Securities. The period-end cost or amortized cost, gross unrealized gains and losses, and fair value of AFS fixed-maturity and equity securities follow: December 31, 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 $ 20,233 $ 448 $ (22 ) $ 20,659 Foreign government 114,656 7,082 (1,522 ) 120,216 States and political subdivisions 38,995 2,111 (541 ) 40,565 Corporates 1,276,965 49,008 (24,211 ) 1,301,762 Mortgage- and asset-backed securities 239,194 9,818 (755 ) 248,257 Total fixed-maturity securities (1) 1,690,043 68,467 (27,051 ) 1,731,459 Equity securities 39,969 8,252 (382 ) 47,839 Total fixed-maturity and equity securities $ 1,730,012 $ 76,719 $ (27,433 ) $ 1,779,298 (1) Includes approximately $0.1 million December 31, 2014 Cost or amortized cost (2) Gross unrealized gains (2) Gross unrealized losses (2) Fair value (In thousands) Securities available-for-sale, carried at fair value: Fixed-maturity securities: U.S. government and agencies $ 15,107 $ 557 $ (17 ) $ 15,647 Foreign government 113,931 8,885 (319 ) 122,497 States and political subdivisions 38,163 2,719 (188 ) 40,694 Corporates 1,236,264 83,675 (4,071 ) 1,315,868 Mortgage- and asset-backed securities 251,756 13,050 (392 ) 264,414 Total fixed-maturity securities (1) 1,655,221 108,886 (4,987 ) 1,759,120 Equity securities 43,703 10,717 (1,030 ) 53,390 Total fixed-maturity and equity securities $ 1,698,924 $ 119,603 $ (6,017 ) $ 1,812,510 (1) Includes approximately $0.7 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. (2) All of our AFS 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 maturity distribution of the AFS fixed-maturity portfolio at December 31, 2015 follows: Amortized cost Fair value (In thousands) Due in one year or less $ 124,507 $ 125,109 Due after one year through five years 628,560 659,250 Due after five years through 10 years 648,916 646,343 Due after 10 years 48,866 52,500 1,450,849 1,483,202 Mortgage- and asset-backed securities 239,194 248,257 Total fixed-maturity securities $ 1,690,043 $ 1,731,459 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 AFS securities was as follows: December 31, 2015 December 31, 2014 (In thousands) Net unrealized investment gains including OTTI: Fixed-maturity and equity securities $ 49,286 $ 113,586 Currency swaps - 24 OTTI 109 710 Net unrealized investment gains excluding OTTI 49,395 114,320 Deferred income taxes (17,288 ) (40,012 ) Net unrealized investment gains excluding OTTI, net of tax $ 32,107 $ 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 $5.4 million and $7.7 million as of December 31, 2015 and 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 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 December 31, 2015, the LLC Note, which was rated A+ by Fitch Ratings, had an estimated unrealized holding gain of $6.5 million based on its amortized cost and estimated fair value, which is derived using the valuation techniques described in Note 5 (Fair Value of Financial Instruments). See Note 10 (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 $18.1 million and $19.9 million as of December 31, 2015 and 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 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 consolidated balance sheets during the terms of the loans, and we do not report them as sales. Cash collateral received and reinvested was approximately $71.5 million and $50.2 million as of December 31, 2015 and 2014, respectively. Investment Income. The components of net investment income were as follows: Year ended December 31, 2015 2014 2013 (In thousands) Fixed-maturity securities (available-for-sale) $ 77,271 $ 84,687 $ 89,860 Fixed-maturity security (held-to-maturity) 13,048 3,482 - Equity securities 2,059 1,862 1,186 Policy loans and other invested assets 1,368 1,448 1,363 Cash and cash equivalents 228 247 272 Market return on deposit asset underlying 10% coinsurance agreement 482 3,095 938 Gross investment income 94,456 94,821 93,619 Investment expenses (4,899 ) (4,866 ) (4,867 ) Investment income net of investment expenses 89,557 89,955 88,752 Interest expense on surplus note (13,048 ) (3,482 ) - Net investment income $ 76,509 $ 86,473 $ 88,752 The components of net realized investment gains (losses), as well as details on gross realized investment gains (losses) and proceeds from sales or other redemptions, were as follows: Year ended December 31, 2015 2014 2013 (In thousands) Net realized investment gains (losses): Gross gains from sales $ 5,762 $ 3,687 $ 6,734 Gross losses from sales (465 ) (436 ) (1,209 ) OTTI losses (6,893 ) (4,045 ) (616 ) Gains (losses) from bifurcated options (142 ) 533 1,337 Net realized investment gains (losses) $ (1,738 ) $ (261 ) $ 6,246 OTTI. We conduct a review each quarter to identify and evaluate impaired investments that have indications of possible 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. Our review for OTTI generally entails: · Analysis of individual investments that have fair values less than a pre-defined percentage of amortized cost, including consideration of the length of time the investment has been in an unrealized loss position; · Analysis of corporate fixed-maturity securities by reviewing the issuer’s most recent performance to date, including analyst reviews, analyst outlooks and rating agency information; · Analysis of commercial mortgage-backed securities based on an assessment of performance to date, credit enhancement, risk analytics and outlook, underlying collateral, loss projections, rating agency information and available third-party reviews and analytics; · Analysis of residential mortgage-backed securities based on loss projections provided by models compared to current credit enhancement levels; · Analysis of our other fixed-maturity and equity security investments, as required based on the type of investment; and · Analysis of downward credit migrations that occurred during the quarter. AFS fixed-maturity and equity securities with a cost basis in excess of their fair values were approximately $626.0 million and $242.0 million as of December 31, 2015 and 2014, respectively. The following tables summarize, for all AFS 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: December 31, 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 $ 13,651 $ (22 ) 7 $ - $ - - Foreign government 23,572 (829 ) 20 2,396 (693 ) 3 States and political subdivisions 2,729 (44 ) 6 878 (497 ) 2 Corporates 413,131 (17,481 ) 393 34,624 (6,730 ) 54 Mortgage-and asset-backed securities 92,508 (631 ) 81 8,221 (124 ) 15 Total fixed-maturity securities 545,591 (19,007 ) 46,119 (8,044 ) Equity securities 3,652 (287 ) 17 3,209 (95 ) 8 Total fixed-maturity and equity securities $ 549,243 $ (19,294 ) $ 49,328 $ (8,139 ) 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 $ 680 $ (16 ) 1 Foreign government 4,753 (169 ) 6 3,438 (150 ) 3 States and political subdivisions 1,694 (4 ) 3 2,720 (184 ) 4 Corporates 117,249 (2,839 ) 129 24,602 (1,232 ) 45 Mortgage-and asset-backed securities 49,591 (109 ) 43 16,847 (283 ) 20 Total fixed-maturity securities 180,488 (3,122 ) 48,287 (1,865 ) Equity securities 4,900 (833 ) 13 2,303 (197 ) 1 Total fixed-maturity and equity securities $ 185,388 $ (3,955 ) $ 50,590 $ (2,062 ) The amortized cost and fair value of AFS fixed-maturity securities in default were as follows: December 31, 2015 December 31, 2014 Amortized cost Fair value Amortized cost Fair value (In thousands) Fixed-maturity securities in default $ 138 $ 262 $ 144 $ 611 Impairment charges recognized in earnings on AFS securities were as follows: Year ended December 31, 2015 2014 2013 (In thousands) Impairments on fixed-maturity securities not in default $ 5,108 $ 3,656 $ 609 Impairments on fixed-maturity securities in default 29 - - Impairments on equity securities 1,756 389 7 Total impairment charges $ 6,893 $ 4,045 $ 616 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. We also recognized impairment losses related to invested assets held at the Parent Company that we intended to sell to fund share repurchases, as well as credit impairments on certain other investments. As of December 31, 2015, the unrealized losses on our AFS invested asset portfolio were largely caused by increases in credit spreads. We believe that fluctuations caused by movement in interest rate 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. Net impairment losses recognized in earnings were as follows: Year ended December 31, 2015 2014 2013 (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 $ 706 $ 1,579 $ 832 Less portion of OTTI loss recognized in accumulated other comprehensive income (loss) - - (479 ) 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 706 1,579 353 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 6,187 2,466 263 Net impairment losses recognized in earnings $ 6,893 $ 4,045 $ 616 The roll-forward of the OTTI recognized in net income for all fixed-maturity securities still held follows: Year ended December 31, 2015 2014 (In thousands) Cumulative OTTI recognized in net income for securities still held, beginning of period $ 9,550 $ 7,970 Additions for OTTI securities where no OTTI were recognized prior to the beginning of the period 2,340 3,654 Additions for OTTI securities where OTTI have been recognized prior to the beginning of the period 2,797 2 Reductions due to sales, maturities, calls, amortization or increases in cash flows expected to be collected over the remaining life of credit impaired securities (1,554 ) (902 ) Reductions for exchanges of securities previously impaired (1,277 ) (1,174 ) Cumulative OTTI recognized in net income for securities still held, end of period $ 11,856 $ 9,550 As of December 31, 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 December 31, 2015 and 2014, the fair value of these bifurcated options was approximately $5.4 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 as of December 31, 2015 and 2014. While we have no current intention to do so, these deferred losses will not be recognized until such time as we sell or substantially liquidate our Canadian operations. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | (5) 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, mortgage- and asset-backed 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: December 31, 2015 Level 1 Level 2 Level 3 Total (In thousands) Fair value assets: Available-for-sale fixed-maturity securities: U.S. government and agencies $ - $ 20,659 $ - $ 20,659 Foreign government - 120,216 - 120,216 States and political subdivisions - 40,565 - 40,565 Corporates 2,146 1,299,613 3 1,301,762 Mortgage- and asset-backed securities - 247,525 732 248,257 Total available-for-sale fixed-maturity securities 2,146 1,728,578 735 1,731,459 Equity securities 41,341 6,450 48 47,839 Trading securities - 5,358 - 5,358 Separate accounts - 2,063,899 - 2,063,899 Total fair value assets $ 43,487 $ 3,804,285 $ 783 $ 3,848,555 Fair value liabilities: Separate accounts $ - $ 2,063,899 $ - $ 2,063,899 Total fair value liabilities $ - $ 2,063,899 $ - $ 2,063,899 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 95% of our securities that are measured at fair value on a recurring basis. The remaining securities are primarily thinly traded securities such as private placements and are valued using models based on observable inputs on public corporate spreads having similar characteristics (e.g., sector, average life and quality rating) and liquidity and yield based on quality rating, average life and treasury yields. All observable data inputs are corroborated by independent third-party data. In the absence of sufficient observable inputs, we utilize non-binding broker quotes, which are reflected in our Level 3 classification as we are unable to evaluate the valuation technique(s) or significant inputs used to develop the quotes. Therefore, we do not internally develop the quantitative unobservable inputs used in measuring the fair value of Level 3 investments. However, we do corroborate pricing information provided by our third-party pricing servicing by performing a review of selected securities. Our review activities include obtaining detailed information about the assumptions, inputs and methodologies used in pricing the security; documenting this information; and corroborating it by comparison to independently obtained prices and or independently developed pricing methodologies. 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 assets-backed securities) with limited trading activity, third-party pricing services generally use industry-standard pricing methodologies that incorporate market information, such as index prices or 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: Year ended December 31, 2015 2014 (In thousands) Level 3 assets, beginning of period $ 1,165 $ 2,288 Net unrealized gains (losses) included in other comprehensive income (26 ) (153 ) Realized gains (losses) and accretion (amortization) recognized in earnings, including OTTI 4 439 Settlements (168 ) (1,409 ) Transfers into Level 3 - - Transfers out of Level 3 (192 ) - Level 3 assets, end of period $ 783 $ 1,165 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 as well as 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 3 during the year ended December 31, 2015. We transferred a $1.0 million security from Level 1 to Level 2 during the year ended December 31, 2015 as it was not consistently trading in an active market. There were no material transfers between Level 1 and Level 2 or Level 1 and Level 3 during the year ended December 31, 2014. Invested assets included in the transfer from Level 3 to Level 2 primarily were fixed-maturity investments for which we were able to obtain independent pricing quotes based on observable inputs. The carrying values and estimated fair values of our financial instruments were as follows: December 31, 2015 December 31, 2014 Carrying value Estimated fair value Carrying value Estimated fair value (In thousands) Assets: Fixed-maturity securities (available-for-sale) $ 1,731,459 $ 1,731,459 $ 1,759,120 $ 1,759,120 Fixed-maturity security (held-to-maturity) 365,220 371,742 220,000 228,809 Equity securities 47,839 47,839 53,390 53,390 Trading securities 5,358 5,358 7,711 7,711 Policy loans 28,627 28,627 28,095 28,095 Deposit asset underlying 10% coinsurance agreement 181,889 181,889 157,256 157,256 Separate accounts 2,063,899 2,063,899 2,440,303 2,440,303 Liabilities: Notes payable $ 374,585 $ 398,649 $ 374,532 $ 411,916 Surplus note 365,220 371,498 220,000 227,127 Separate accounts 2,063,899 2,063,899 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 AFS 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 instruments are not included in the above table. |
Reinsurance (Notes)
Reinsurance (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | (6) 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. Our reinsurance contracts typically do not have a fixed term. In general, the reinsurers’ ability to terminate coverage for existing cessions is limited to such circumstances as material breach of contract or nonpayment of premiums by the ceding company. Our reinsurance contracts generally contain provisions intended to provide the ceding company with the ability to cede future business on a basis consistent with historical terms. However, either party may terminate any of the contracts with respect to the future business upon appropriate notice to the other party. Generally, the reinsurance contracts do not limit the overall amount of the loss that can be incurred by the reinsurer. Our policy is to limit the amount of life insurance retained on the life of any one person to $1 million. To limit our exposure with any one reinsurer, we monitor the concentration of credit risk we have with our reinsurance counterparties, as well as their financial condition. No credit losses related to our reinsurance counterparties have been experienced by the Company during the three-year period ended December 31, 2015. Due from reinsurers represents ceded policy reserve balances and ceded claim liabilities. The amounts of ceded claim liabilities included in due from reinsurers that we paid and which are recoverable from those reinsurers were $25.5 million and $26.0 million as of December 31, 2015 and 2014, respectively. In connection with our corporate reorganization that included an initial public offering (“IPO”) of our common stock by Citigroup, Inc. (“Citigroup”), Primerica Life, Primerica Life Canada and NBLIC entered into significant coinsurance transactions (the “IPO coinsurance agreements”) on March 30, 2010 with three insurance companies then affiliated with Citigroup (collectively, the “IPO coinsurance”). Under the IPO coinsurance agreements, we ceded between 80% and 90% of the risks and rewards of our term life insurance policies in force at year-end 2009. Because these agreements were part of a business reorganization among entities under common control, they did not generate any deferred gain or loss upon their execution. Concurrent with signing these agreements, we transferred the corresponding account balances in respect of the coinsured policies along with the assets to support the statutory liabilities assumed by the IPO coinsurers. Each of the account balances transferred were at book value with no gain or loss recorded in net income. Three of the IPO coinsurance agreements satisfy U.S. GAAP risk transfer rules. Under these agreements, we ceded between 80% and 90% of our term life future policy benefit reserves, and we transferred a corresponding amount of assets to the IPO coinsurers. These transactions did not impact our future policy benefit reserves. As such, we have recorded an asset for the same amount of risk transferred in due from reinsurers. We also reduced DAC by a corresponding amount, which reduces future amortization expenses. In addition, we are transferring between 80% and 90% of all future premiums and benefits and claims associated with these policies to the corresponding reinsurance entities. We receive ongoing ceding allowances, which are reflected as a reduction to insurance expenses, to cover policy and claims administration expenses as well as certain corporate overhead charges under each of these reinsurance contracts. A fourth agreement, the 10% Coinsurance Agreement, relates to a reinsurance transaction with Prime Reinsurance Company (“Prime Re”), an insurance company affiliate of Citigroup, that includes an experience refund provision. This agreement does not satisfy U.S. GAAP risk transfer rules. As a result, we have accounted for this contract using deposit method accounting and have recognized a deposit asset in other assets on our consolidated balance sheets for assets backing the economic reserves. The deposit asset held in support of this agreement was $181.9 million and $157.3 million at December 31, 2015 and 2014, respectively. We make contributions to the deposit asset during the life of the agreement to fulfill our responsibility of funding the economic reserve. The market return on the deposit asset is reflected in net investment income during the life of the agreement. Prime Re is responsible for ensuring that there are sufficient assets to meet all statutory requirements. We pay Prime Re a 2% finance charge for any statutory reserves required above the economic reserves. This finance charge is reflected in interest expense in our statements of income. The following table represents the Company’s in-force life insurance at December 31, 2015 and 2014: December 31, 2015 December 31, 2014 (Dollars in thousands) Direct life insurance in force $ 696,884,429 $ 685,998,013 Amounts ceded to other companies (616,252,839 ) (607,218,906 ) Net life insurance in force $ 80,631,590 $ 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: December 31, 2015 December 31, 2014 Reinsurance receivable A.M. Best rating Reinsurance receivable A.M. Best rating (In thousands) Prime Reinsurance Company (1) $ 2,692,721 NR $ 2,645,011 NR SCOR Global Life Reinsurance Companies (2) 362,195 A 373,947 A Financial Reassurance Company 2010, Ltd. (1) 270,306 NR 320,718 NR Swiss Re Life & Health America Inc. (3) 254,461 A+ 260,734 A+ American Health and Life Insurance Company 176,790 B 175,755 A- Munich American Reassurance Company 101,466 A+ 100,846 A+ Korean Reinsurance Company 91,605 A 89,300 A RGA Reinsurance Company 81,217 A+ 78,143 A+ TOA Reinsurance Company 22,242 A+ 20,139 A+ Hannover Life Reassurance Company 20,650 A+ 18,694 A+ All other reinsurers 36,975 - 32,246 - Due from reinsurers $ 4,110,628 $ 4,115,533 NR – not rated (1) Reinsurers are affiliates of Citigroup. Amounts shown are net of their share of the reinsurance receivable from other reinsurers. (2) (3 ) Includes amounts ceded to Lincoln National Life Insurance and 100% retroceded to Swiss Re Life & Health America Inc. Certain reinsurers with which we do business receive group ratings. Individually, those reinsurers are SCOR Global Life Americas Reinsurance Company, SCOR Global Life U.S.A. Reinsurance Company, SCOR Global Life Re Insurance Company of Delaware, and SCOR Global Life of Canada. As Prime Re and Financial Reassurance Company 2010, Ltd. (“FRAC”), an insurance company affiliate of Citigroup, do not have financial strength ratings, we required various safeguards prior to executing the IPO coinsurance agreements with these entities. Both IPO coinsurance agreements include provisions to ensure that Primerica Life and Primerica Life Canada receive full regulatory credit for the reinsurance treaties. Under these agreements, Primerica Life and Primerica Life Canada will be able to recapture the ceded business with no fee in the event Prime Re or FRAC do not comply with the various safeguard provisions in their respective IPO coinsurance agreements. Prime Re also has entered into a capital maintenance agreement requiring Citigroup to provide additional funding, if needed, at any point during the term of the agreement up to the maximum as described in the capital maintenance agreement. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | (7) Deferred Policy Acquisition Costs We defer the costs of acquiring new business to the extent that they result directly from and are essential to the contract transaction(s) and would not have been incurred had the contract transaction(s) not occurred. The amortization of DAC requires us to make certain assumptions regarding persistency, expenses, interest rates and claims. For DAC associated with term life insurance policies, these assumptions may not be modified, or unlocked, unless recoverability testing deems them to be inadequate. We update assumptions for new business to reflect the most recent experience. For DAC associated with Canadian segregated funds, the assumptions used in determining amortization expense are evaluated regularly and are updated if actual experience or other evidence suggests revisions to earlier estimates are appropriate. DAC amortization for term life insurance policies is affected by differences between the original assumptions used for persistency, expenses, interest rates and claims and actual results and are recognized in the period in which the change occurs. For policies underlying the Canadian segregated funds, gross profits and the resulting DAC amortization will vary with actual fund returns, redemptions and expenses. In determining DAC amortization expense for term life insurance policies, we use interest rates available at the time a policy is issued. For policies issued in 2010 and after, we have been using an increasing interest rate assumption based on the historically low interest rate environment. Interest rate assumptions at December 31, 2015 and 2014 ranged from 3.5% to 7.0%. DAC is subject to recoverability testing annually and when impairment indicators exist. The recoverability of DAC is dependent on the future profitability of the related policies, which, in turn, is dependent principally upon mortality, persistency, investment returns, and the expense of administering the business, as well as upon certain economic variables, such as inflation. The balances of and activity in DAC were as follows: Year ended December 31, 2015 2014 2013 (In thousands) DAC balance, beginning of period $ 1,351,180 $ 1,208,466 $ 1,066,422 Capitalization 339,639 303,543 283,341 Amortization (157,727 ) (144,378 ) (129,183 ) Foreign exchange translation and other (32,833 ) (16,451 ) (12,114 ) DAC balance, end of period $ 1,500,259 $ 1,351,180 $ 1,208,466 |
Separate Accounts (Notes)
Separate Accounts (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Separate Accounts Disclosure [Abstract] | |
Separate Accounts | (8) Separate Accounts The Funds primarily consist of a series of banded investment funds known as the Asset Builder Funds and a money market fund known as the Cash Management Fund. In 2014, the Funds introduced a registered retirement income fund known as the Strategic Retirement Income Fund (“SRIF”). The principal investment objective of the Asset Builder Funds is to achieve long-term growth while preserving capital. The principal objective of the SRIF is to provide a stream of investment income during retirement plus the opportunity for modest capital appreciation. The Asset Builder Funds and the SRIF use diversified portfolios of publicly-traded Canadian stocks, investment-grade corporate bonds, Government of Canada bonds, and foreign equity investments to achieve their objectives. The Cash Management Fund invests in government guaranteed short-term bonds and short-term commercial and bank papers, with the principal investment objective being the provision of interest income while maintaining liquidity and preserving capital. Under these contract offerings, benefit payments to contract holders or their designated beneficiaries are only due upon death of the annuitant or upon reaching a specific maturity date. Benefit payments are based on the value of the contract holder’s units in the portfolio at the payment date, but are guaranteed to be no less than 75% of the contract holder’s contribution, adjusted for withdrawals. Account values are not guaranteed for withdrawn units if contract holders make withdrawals prior to the maturity dates. Maturity dates for contracts investing in the Asset Builder Funds and Cash Management Fund vary by contract and range from 10 to 56 years from the contract issuance date. Contracts investing in the SRIF mature when the policyholder reaches age 100, which is a minimum of 20 years after issue. The SRIF is designed to provide periodic retirement income payments and as such, regular withdrawals, subject to legislated minimums, are anticipated. The cumulative effects of the periodic withdrawals are expected to substantially reduce both account and minimum guaranteed values prior to maturity. Both the asset and the liability for the separate accounts reflect the net value of the underlying assets in the portfolio as of the reporting date. Primerica Life Canada’s exposure to losses under the guarantee at the time of account maturity is limited to contract holder accounts that have declined in value more than 25%, adjusted for withdrawals, since the contribution date prior to maturity. Because maturity dates are of a long-term nature, the likelihood guarantee payments are required at any given point is very small. Additionally, the portfolios consist of a very large number of individual contracts, further spreading the risk related to the guarantee being exercised upon death. The length of the contract terms provides significant opportunity for the underlying portfolios to recover any short-term losses prior to maturities or deaths of the contract holders. Furthermore, the funds’ investment allocations are aligned with the maturity risks of the related contracts and include investments in Government Strip Bonds and floating rate notes. We periodically assess the exposure related to these contracts to determine whether any additional liability should be recorded. As of December 31, 2015 and 2014, an additional liability for these contracts was deemed to be unnecessary. The following table represents the fair value of assets supporting separate accounts by major investment category: Year ended December 31, 2015 2014 (In thousands) Fixed income securities $ 932,934 $ 1,019,034 Equity securities 1,109,610 1,318,382 Cash and cash equivalents 24,003 104,983 Due to/from funds (2,817 ) (2,536 ) Other 169 440 Total separate accounts assets $ 2,063,899 $ 2,440,303 |
Insurance Reserves (Notes)
Insurance Reserves (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Insurance Reserves Disclosures [Abstract] | |
Insurance Reserves | (9) Insurance Reserves Changes in policy claims and other benefits payable were as follows: Year ended December 31, 2015 2014 2013 (In thousands) Policy claims and other benefits payable, beginning of period $ 245,829 $ 238,750 $ 243,145 Less reinsured policy claims and other benefits payable 264,049 248,185 269,279 Net balance, beginning of period (18,220 ) (9,435 ) (26,134 ) Incurred related to current year 138,139 129,869 147,639 Incurred related to prior years 212 674 (4,956 ) Total incurred 138,351 130,543 142,683 Claims paid related to current year, net of reinsured policy claims received (167,621 ) (155,357 ) (165,476 ) Reinsured policy claims received related to prior years, net of claims paid 23,661 21,881 39,989 Total paid (143,960 ) (133,476 ) (125,487 ) Sale of DBL - (5,047 ) - Foreign currency translation (1,017 ) (805 ) (497 ) Net balance, end of period (24,846 ) (18,220 ) (9,435 ) Add reinsured policy claims and other benefits payable 263,003 264,049 248,185 Balance, end of period $ 238,157 $ 245,829 $ 238,750 See Note 1 (Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies) for details regarding the accounting for policyholder liabilities. |
Debt (Notes)
Debt (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | (10) Debt Notes Payable. Notes payable consisted of the following: December 31, 2015 December 31, 2014 (Dollars in thousands) 4.75% Senior Notes, due July 15, 2022 $ 375,000 $ 375,000 Unamortized issuance discount on notes payable (415 ) (468 ) Total notes payable $ 374,585 $ 374,532 At December 31, 2015, we had $375.0 million in principal amount of publicly-traded, senior unsecured notes (the “Senior Notes”). The Senior Notes were issued in 2012 at a price of 99.843% of the principal amount with an annual interest rate of 4.75%, payable semi-annually in arrears on January 15 and July 15, and are scheduled to mature on July 15, 2022. We were in compliance with the covenants of the Senior Notes at December 31, 2015. No events of default occurred on the Senior Notes during the year ended December 31, 2015. As unsecured senior obligations, the Senior Notes rank equally in right of payment with all existing and future unsubordinated indebtedness and senior to all existing and future subordinated indebtedness of the Parent Company. The Senior Notes are structurally subordinated in right of payment to all existing and future liabilities of our subsidiaries. In addition, the Senior Notes contain covenants that restrict our ability to, among other things, create or incur any indebtedness that is secured by a lien on the capital stock of certain of our subsidiaries, and merge, consolidate or sell all or substantially all of our properties and assets. Surplus Note. As of December 31, 2015, the principal amount outstanding on the Surplus Note issued by Vidalia Re was approximately $365.2 million, equal to the principal amount of the LLC Note invested asset. The Surplus Note was issued in exchange for the LLC Note, which supports certain obligations of Vidalia Re for a portion of the statutory accounting-based reserves (commonly referred to as Regulation XXX reserves) related to the Vidalia Re Coinsurance Agreement. The principal amount of the Surplus Note and the LLC Note will fluctuate over time to coincide with the amount of reserves 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. This financing arrangement is non-recourse to the Parent Company and Primerica Life, meaning that neither of these companies has guaranteed the Surplus Note or is otherwise liable for reimbursement for any payments triggered by the credit enhancement feature underlying the LLC Note. The Parent Company has agreed to support Vidalia Re’s obligation to pay the credit enhancement fee incurred on the LLC Note. See Note 4 (Investments) for more information on the LLC Note. |
Income Taxes (Notes)
Income Taxes (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (11) Income Taxes Income tax expense (benefit) from continuing operations consists of the following: Current Deferred Total (In thousands) Year ended December 31, 2015 Federal $ 46,175 $ 36,723 $ 82,898 Foreign 14,600 3,161 17,761 State and local 2,043 (1,592 ) 451 Total tax expense $ 62,818 $ 38,292 $ 101,110 Year ended December 31, 2014 Federal $ 44,356 $ 31,590 $ 75,946 Foreign 24,403 (4,826 ) 19,577 State and local 1,372 (1,007 ) 365 Total tax expense $ 70,131 $ 25,757 $ 95,888 Year ended December 31, 2013 Federal $ 33,798 $ 32,919 $ 66,717 Foreign 32,797 (14,410 ) 18,387 State and local 1,377 (176 ) 1,201 Total tax expense $ 67,972 $ 18,333 $ 86,305 Total income tax expense from continuing operations is different from the amount determined by multiplying income from continuing operations before income taxes by the statutory federal tax rate of 35%. The reconciliation for such difference follows: Year ended December 31, 2015 2014 2013 Amount Percentage Amount Percentage Amount Percentage (Dollars in thousands) Computed tax expense $ 101,843 35.0 % $ 96,503 35.0 % $ 85,752 35.0 % Difference between foreign statutory rate and U.S. statutory rate (5,531 ) (1.9 )% (6,271 ) (2.3 )% (5,909 ) (2.4 )% Residual U.S. income taxes on foreign earnings not permanently reinvested 3,810 1.3 % 3,067 1.1 % 2,819 1.2 % Other 988 0.3 % 2,589 1.0 % 3,643 1.4 % Total tax expense / effective rate $ 101,110 34.7 % $ 95,888 34.8 % $ 86,305 35.2 % The main components of deferred income tax assets and liabilities were as follows: December 31, 2015 2014 (In thousands) Deferred tax assets: Policy benefit reserves and unpaid policy claims $ 210,164 $ 216,768 Intangibles and tax goodwill 39,977 43,822 Future deductible liabilities 17,741 16,892 Share-based compensation 15,698 14,298 Other 8,962 11,546 Total deferred tax assets 292,542 303,326 Deferred tax liabilities: Deferred policy acquisition costs (319,250 ) (291,683 ) Investments (6,893 ) (28,909 ) Unremitted earnings on foreign subsidiaries (2,297 ) (2,602 ) Reinsurance deposit asset (63,661 ) (55,040 ) Other (11,978 ) (14,463 ) Total deferred tax liabilities (404,079 ) (392,697 ) Net deferred tax liabilities $ (111,537 ) $ (89,371 ) The majority of total deferred tax assets are attributable to future policy benefit reserves and unpaid policy claims, which represents the difference between the financial statement carrying value and tax basis for liabilities related to future policy benefits. The tax basis for future policy benefit reserves and unpaid policy claims is actuarially determined in accordance with guidelines set forth in the Internal Revenue Code. The majority of total deferred tax liabilities are attributable to DAC, which represents the difference between the policy acquisition costs capitalized for U.S. GAAP purposes and those capitalized for tax purposes, as well as the difference in the resulting amortization methods. The Company has state net operating losses resulting in a deferred tax asset of approximately $8.9 million, which are available for use through 2035. The Company has no other material net operating loss or credit carryforwards. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, carryback and carryforward periods, and tax planning strategies in making this assessment. Management believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets. Therefore, there was no deferred tax asset valuation allowance at December 31, 2015 or 2014. The Company has direct ownership of a group of controlled foreign corporations in Canada. We have asserted a position of permanent reinvestment for the difference in share basis and certain operational earnings. Such operational earnings if not permanently reinvested would have generated a deferred tax liability of approximately $9.3 million as of December 31, 2015. For those operational earnings for which we have not made a permanent reinvestment assertion, we have established a deferred tax liability to account for the U.S. tax liability that will occur upon repatriation of such earnings. As of December 31, 2015, we had approximately $28.9 million in Canadian operational earnings available to be repatriated to the U.S. for which we have not made a permanent reinvestment assertion. The total amount of unrecognized benefits on uncertain tax positions that, if recognized, would affect our effective tax rate was approximately $9.3 million A reconciliation of the change in the unrecognized income tax benefit for the years ended December 31, 2015 and 2014 is as follows: December 31, 2015 2014 (In thousands) Unrecognized tax benefits, beginning of period $ 16,014 $ 16,607 Change in prior period unrecognized tax benefits (146 ) (16 ) Change in current period unrecognized tax benefits 2,191 2,102 Reductions as a result of a lapse in statute of limitations (4,120 ) (2,679 ) Unrecognized tax benefits, end of period $ 13,939 $ 16,014 We have no penalties included in calculating our provision for income taxes. There is no significant change that is reasonably possible to occur within twelve months of the reporting date. In connection with our corporate reorganization, we entered into a tax separation agreement with Citigroup, whereby Citigroup agreed to indemnify the Company against any consolidated, combined, affiliated, unitary or similar federal, state or local income tax liability related to any taxable period ending on or before April 2010. As of December 31, 2015, the Company had a Citigroup tax indemnification asset of $1.7 million. The major tax jurisdictions in which we operate are the United States and Canada. We are currently open to tax audit by the Internal Revenue Service for the year ended December 31, 2010 and for the years ended December 31, 2012 and thereafter for federal income tax purposes. We are currently open to audit in Canada for tax years ended December 31, 2011 and thereafter for federal and provincial income tax purposes. For those periods prior to the IPO, we are fully indemnified by Citigroup. |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | (12) Stockholders’ Equity A reconciliation of the number of shares of our common stock follows. Year ended December 31, 2015 2014 2013 (In thousands) Common stock, beginning of period 52,169 54,834 56,374 Shares of restricted common stock issued - - 280 Shares issued for stock options exercised 89 4 - Shares of common stock issued upon lapse of restricted stock units ("RSUs") 574 502 1,122 Common stock retired (4,535 ) (3,171 ) (2,942 ) Common stock, end of period 48,297 52,169 54,834 The above reconciliation excludes RSUs, which do not have voting rights. As RSUs lapse, we issue common shares with voting rights. As of December 31, 2015, we had a total of approximately 1.1 million In 2013, we repurchased the remaining equity interest in our Company held by certain private equity funds managed by Warburg Pincus LLC, which included approximately 2.5 million shares of our common stock and all outstanding warrants. The per-share purchase price was determined based on the closing price of our common stock on May 28, 2013, which was the execution date of the agreement to repurchase the shares, and the purchase price per warrant was equal to the per-share purchase price less the warrant exercise price per underlying share as noted above. In November 2014, 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 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 4,326,685 shares of our common stock in open market transactions for an aggregate purchase price of approximately $200.0 million in 2015. As of December 31, 2015, there was approximately $150.0 million of availability remaining for repurchases of our outstanding common stock under the new share repurchase program in 2016. |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (13) 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 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 warrants and 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 warrants and 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 warrants and stock options were outstanding to determine how many shares we could repurchase with the proceeds raised from the exercise of the warrants and 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. Year ended December 31, 2015 2014 2013 (In thousands, except per-share amounts) Basic EPS: Numerator (continuing operations): Income from continuing operations $ 189,871 $ 179,834 $ 158,701 Income attributable to unvested participating securities (1,572 ) (2,038 ) (2,605 ) Income from continuing operations used in calculating basic EPS $ 188,299 $ 177,796 $ 156,096 Numerator (discontinued operations): Income from discontinued operations $ - $ 1,578 $ 4,024 Income attributable to unvested participating securities - (18 ) (66 ) Income from discontinued operations used in calculating basic EPS $ - $ 1,560 $ 3,958 Denominator: Weighted-average vested shares 50,881 54,567 55,834 Basic EPS from continuing operations $ 3.70 $ 3.26 $ 2.80 Basic EPS from discontinued operations $ - $ 0.03 $ 0.07 Diluted EPS: Numerator (continuing operations): Income from continuing operations $ 189,871 $ 179,834 $ 158,701 Income attributable to unvested participating securities (1,571 ) (2,037 ) (2,575 ) Income from continuing operations used in calculating diluted EPS $ 188,300 $ 177,797 $ 156,126 Numerator (discontinued operations): Income from discontinued operations $ - $ 1,578 $ 4,024 Income attributable to unvested participating securities - (18 ) (65 ) Income from discontinued operations used in calculating diluted EPS $ - $ 1,560 $ 3,959 Denominator: Weighted-average vested shares 50,881 54,567 55,834 Dilutive effect of incremental shares if issued for warrants outstanding - - 787 Dilutive effect of incremental shares to be issued for equity awards 32 31 4 Weighted-average shares used in calculating diluted EPS 50,913 54,598 56,625 Diluted EPS from continuing operations $ 3.70 $ 3.26 $ 2.76 Diluted EPS from discontinued operations $ - $ 0.03 $ 0.07 |
Share-Based Transactions (Notes
Share-Based Transactions (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Transactions | (14) 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. As of December 31, 2015, we had approximately 1.5 million shares available for future grants under this plan. Employee and Director Share-Based Compensation. As of December 31, 2015, the Company had outstanding restricted stock, RSUs, and stock options issued to our management (officers and other key employees), as well as restricted stock, RSUs, and deferred RSUs issued to our non-employee directors, under the OIP. Restricted Stock and RSUs. Since 2013, the Company granted shares of restricted stock and RSUs to management (“management restricted stock and RSU awards”) as follows: · Prior to 2014, management of the Company’s U.S. based subsidiaries received restricted stock and management of the Company’s Canadian subsidiaries received RSUs. These awards have time-based vesting requirements with equal and annual graded vesting over approximately three years subsequent to the grant date. · In 2014 and 2015, management (regardless of geography) received RSUs that have time-based vesting requirements with equal and annual graded vesting over approximately three years subsequent to the grant date. Awards granted to management in 2014 (the “modified awards”) to provide for such awards to vest upon 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. The “retirement eligible” provision is expected to be included in all future management grants. Since 2013, the Company granted shares of restricted stock and RSUs to non-employee members of the Board of Directors (“director restricted stock and RSU awards”) as follows: · Prior to 2013, non-employee directors received restricted stock that have time-based vesting requirements with equal and annual graded vesting over approximately three years subsequent to the grant date. · In 2013, non-employee directors received RSUs that have time-based vesting requirements that lapsed approximately one year after the grant date. These awards also contain post-vesting sale restrictions until the non-employee director no longer serves on our Board. · Beginning in 2014 and continuing in 2015, non-employee directors received RSUs that have time-based vesting requirements with equal and annual graded vesting over four quarters subsequent to the grant date. These awards also contain post-vesting sale restrictions until the non-employee director no longer serves on our Board. · In addition, certain directors elected to defer their cash and/or equity retainers into deferred RSUs, which vest immediately or, if applicable, on the dates the RSUs would have vested. All of our outstanding management and director restricted stock and RSU awards are eligible for dividends or dividend equivalents regardless of vesting status. In connection with our granting of management and director restricted stock and RSU awards, we recognized expense and tax benefit offsets as follows: Year ended December 31, 2015 2014 2013 (In thousands) Total management and director restricted stock and RSU awards $ 13,839 $ 15,726 $ 13,101 Tax benefit associated with total management and director restricted stock and RSU award expense 4,668 5,322 3,936 The following table summarizes management and director restricted stock and RSU activity during the years ended December 31, 2015, 2014, and 2013. Shares Weighted-average measurement-date fair value per share (Shares in thousands) Unvested employee restricted stock and RSUs, December 31, 2012 1,507 $ 19.72 Granted 322 32.76 Forfeited (9 ) 28.72 Vested (1,098 ) 17.59 Unvested employee restricted stock and RSUs, December 31, 2013 722 28.67 Granted 279 41.31 Forfeited (13 ) 30.49 Vested (408 ) 28.53 Unvested employee restricted stock and RSUs, December 31, 2014 580 34.67 Granted 246 52.75 Forfeited (8 ) 41.98 Vested (428 ) 35.43 Unvested employee restricted stock and RSUs, December 31, 2015 390 45.07 As of December 31, 2015, total compensation cost not yet recognized in our financial statements related to management and director restricted stock and RSU awards with time-based vesting conditions yet to be reached was approximately $5.7 million, and the weighted-average period over which cost will be recognized was 0.8 years. Stock Options. Beginning in 2013, the Company issued stock options to certain of its executive officers under the OIP as part of their annual equity compensation. The remaining annual equity compensation for these executive officers was granted in the form of management restricted stock awards and RSUs discussed above. Stock options are generally granted with an exercise price equal to the fair market value of our common stock on the grant date, and they expire 10 years from the date of grant. These options have time-based restrictions with equal and annual graded vesting over a three-year period. Stock options issued in 2014 and thereafter provide 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. Upon retirement, employees have the lesser of three years or the remaining option term to exercise any vested options. Compensation expense and related tax benefits recognized for stock options awards were as follows: Year ended December 31, 2015 2014 2013 (In thousands) Expense recognized for stock option awards $ 643 $ 1,803 $ 323 Tax benefit recognized for stock option awards 225 631 113 The fair value of each option was estimated on the date of grant using the Black-Scholes model. We derived expected volatility after considering the historical volatility of our own stock, which has been trading since April 1, 2010. The Company’s per share dividend yield as of the grant date was used as the input for the expected dividend payout on the underlying shares. The risk-free interest rate was based on the U.S. Treasury yield for a term approximating the expected life of the options at the time of grant. The Company used a blended approach to develop the expected term that considered both actual exercise activity where available along with the simplified method where historical information was not available. All inputs into the Black-Scholes model were estimates made at the time of grant. The actual realized value of each option grant could materially differ from these estimates, which would have no impact to future reported compensation expense. The following assumptions were used to estimate the fair value of stock options granted: Year ended December 31, 2015 2014 2013 Expected volatility 24.00 % 33.00 % 30.00 % Expected per share dividend yield 1.20 % 1.17 % 1.35 % Risk-free interest rate 1.61 % 1.81 % 1.06 % Expected term of options 5 years 6 years 6 years Fair value per option $ 11.07 $ 12.54 $ 8.44 The following table summarizes activity related to stock options outstanding and exercisable during the years ended December 31, 2015 and 2014. Outstanding Exercisable Number of shares Weighted average exercise price Number of shares Weighted average exercise price (Shares in thousands) Outstanding at December 31, 2012 - n/a — n/a Granted 134 $ 32.63 Exercised - - Outstanding at December 31, 2013 134 32.63 — n/a Granted 116 41.20 Exercised (4 ) 32.63 Outstanding at December 31, 2014 246 36.67 40 $ 32.63 Granted 46 53.50 Exercised (89 ) 34.89 Outstanding at December 31, 2015 203 41.28 35 36.38 Range of granted option exercise prices outstanding at December 31, 2015: $32.63 (average term remaining - 7.2 years) 64 $ 32.63 20 $ 32.63 $41.20 (average term remaining - 8.2 years) 93 41.20 15 41.20 $53.50 (average term remaining - 9.1 years) 46 53.50 — n/a The aggregate intrinsic value represents the difference between the exercise price of our stock options and the quoted closing price of our common stock as of December 31, 2015. December 31, 2015 (In thousands) Aggregate intrinsic value of exercisable stock options $ 378 Aggregate intrinsic value of stock options expected to vest 830 Aggregate intrinsic value of stock options outstanding $ 1,208 The intrinsic value, tax benefit realized and value of shares withheld related to option exercise activity are summarized as follows: Year ended December 31, 2015 2014 2013 (In thousands) Intrinsic value of options exercised $ 1,620 $ 53 $ - Tax benefit realized from the options exercised 567 19 - Value of issued shares withheld to satisfy option exercise price 2,966 142 - As of December 31, 2015, there was approximately $0.3 million of total unrecognized compensation cost related to unvested options, and the weighted-average period over which cost will be recognized was approximately 0.7 years. Non-Employee Share-Based Compensation. Non-employee share-based transactions relate to the granting of RSUs to members of our sales force (“agent equity awards”). Agent equity awards are generally granted as a part of quarterly contests for successful life insurance policy acquisitions or renewals and for sales of investment and savings products for which the grant and the service period occur within the same calendar quarter. The following table summarizes non-employee RSU activity during the years ended December 31, 2015, 2014, and 2013. Shares Weighted-average measurement-date fair value per share (Shares in thousands) Unvested non-employee RSUs, December 31, 2012 132 $ 25.42 Granted 504 32.14 Vested (532 ) 29.64 Unvested non-employee RSUs, December 31, 2013 104 36.44 Granted 295 45.08 Vested (326 ) 41.23 Unvested non-employee RSUs, December 31, 2014 73 49.98 Granted 326 42.79 Vested (326 ) 44.39 Unvested non-employee RSUs, December 31, 2015 73 42.83 Agent equity awards vest and are measured using the fair market value at the conclusion of the quarterly contest, which is the time that performance is complete. However, agent equity awards are subject to long-term sales restrictions expiring over three years. Because the sale restrictions extend up to three years beyond the vesting period, the fair market value of the awards incorporates an illiquidity discount reflecting the risk associated with the post-vesting restrictions. To quantify this discount for each award, we use a series of put option models with one-, two- and three-year tenors to estimate a hypothetical cost of eliminating the downside risk associated with the sale restrictions. The most significant assumptions in the Black-Scholes models are the volatility assumptions. We derive volatility assumptions primarily from the historical volatility of our common stock using terms comparable to the sale restriction terms. The following table presents the assumptions used in valuing quarterly RSU grants to agents: Year ended December 31, 2015 2014 2013 Expected volatility 18% to 35% 17% to 31% 20% to 35% Quarterly dividends expected $ 0.16 $ 0.12 $ 0.11 Risk-free interest rates Less than 2% Less than 2% Less than 2% To the extent that these awards 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 the awards in the same manner as other deferred policy acquisition costs. All agent equity awards that are not directly related to the acquisition or renewal of life insurance policies are recognized as expense over the requisite vesting period. Details on the granting and valuation of these awards follow: Year ended December 31, 2015 2014 2013 (Dollars in thousands, except per-share amounts) Total quarterly non-employee RSUs granted 325,744 294,985 503,737 Measurement date per-share fair value of awards $40.98 to $46.71 $42.96 to $49.98 $26.39 to $36.44 Illiquidity discounts 8% to 9% 8% to 9% 13% to 18% Quarterly incentive awards expense recognized currently $ 467 $ 453 $ 364 Quarterly incentive awards expense deferred 13,423 13,598 15,818 Concurrent tax benefit of deferred expense 4,454 4,500 5,001 As of December 31, 2015, all agent equity awards were fully vested with the exception of approximately 73,000 shares that vested on January 1, 2016. As such, any related compensation cost not recognized as either expense or deferred acquisition costs in our financial statements through December 31, 2015 is immaterial. |
Statutory Accounting and Divide
Statutory Accounting and Dividend Restrictions (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Statutory Accounting and Dividend Restrictions | (15) Statutory Accounting and Dividend Restrictions U.S. Insurance Subsidiaries. Our two underwriting U.S. insurance subsidiaries are Primerica Life and NBLIC. Primerica Life wholly owns Peach Re and Vidalia Re, and ceded to each in separate coinsurance arrangements certain level premium term life insurance policies. Our U.S. insurance subsidiaries are required to report their results of operations and financial position to state authorities on the basis of statutory accounting practices prescribed or permitted by such authorities and the National Association of Insurance Commissioners (“NAIC”), which is a comprehensive basis of accounting other than U.S. GAAP. Prescribed statutory accounting practices include a variety of publications of the NAIC, as well as state laws, regulations and general administrative rules. Permitted statutory accounting practices encompass all accounting practices not so prescribed. The Company’s principal life insurance company, Primerica Life, prepares its statutory financial statements on the basis of accounting practices prescribed or permitted by the NAIC and the Massachusetts Division of Insurance (“Massachusetts DOI”) and includes the statutory financial statements of its wholly owned insurance subsidiaries, NBLIC, Peach Re, and Vidalia Re. NBLIC’s statutory financial statements are prepared on the basis of accounting practices prescribed or permitted by the NAIC and the New York State Department of Financial Services, while the statutory financial statements of Peach Re and Vidalia Re are prepared on the basis of accounting practices prescribed or permitted by the NAIC and the Vermont Department of Financial Regulation (“Vermont DOI”). Our U.S. insurance subsidiaries’ ability to pay dividends to their parent is subject to and limited by the various laws and regulations of their respective states. There are no regulatory restrictions on the ability of the Parent Company to pay dividends. Primerica Life’s statutory ordinary dividend capacity is based on the greater of: (1) the previous year’s statutory net gain from operations (excluding pro rata distributions of any class of the insurer’s own securities) or (2) 10% of the previous year-end statutory surplus (net of capital stock), which may only be paid out of statutory unassigned surplus. Dividends that, together with the amount of other distributions or dividends made within the preceding 12 months, exceed this statutory limitation are referred to as extraordinary dividends. Extraordinary dividends require advance notice to the Massachusetts DOI, Primerica Life’s primary state insurance regulator, and are subject to potential disapproval. For dividends exceeding these thresholds, Primerica Life must provide notice to the Massachusetts DOI and receive notice that the Massachusetts DOI does not object to the payment of such dividends. Primerica Life’s statutory capital and surplus and statutory unassigned surplus at December 31, 2015 and 2014 was as follows: December 31, 2015 December 31, 2014 (In thousands) Statutory capital and surplus $ 560,936 $ 498,992 Statutory unassigned surplus 48,715 9,773 Primerica Life’s statutory net gain from operations was approximately $436.3 million, $267.4 million and $306.7 in 2015, 2014 and 2013, respectively. Primerica Life made no pro rata distributions of any class of its own securities during 2015. During 2015, Primerica Life paid ordinary dividends of $45.6 million to the Parent Company and had estimated ordinary dividend capacity of approximately $48.7 million as of January 1, 2016. Primerica Life’s investment basis in NBLIC, Peach Re, and Vidalia Re reflect their statutory capital and surplus amounts recorded in accordance with statutory accounting practices prescribed or permitted by the NAIC and each subsidiary’s state of domicile; New York and Vermont. Canadian Insurance Subsidiary. Primerica Life Canada is incorporated under the provisions of the Canada Business Corporations Act and is a domiciled Canadian Company subject to regulation under the Insurance Companies Act (Canada) by the Office of the Superintendent of Financial Institutions in Canada (“OSFI”) and by Provincial Superintendents of Financial Institutions/Insurance in those provinces in which Primerica Life Canada is licensed. The statutory financial statements of Primerica Life Canada reported to OSFI are prepared in accordance with International Financial Reporting Standards (“IFRS”). Primerica Life Canada’s capacity to pay ordinary dividends to its parent is limited by OSFI regulations to the extent that its capital exceeds projected capital requirements. OSFI requires companies to set internal target levels of capital sufficient to provide for all the risks of the insurer, including risks specified in OSFI’s capital guidelines. As of December 31, 2015 and 2014, Primerica Life Canada’s statutory capital and surplus satisfied regulatory requirements and was approximately $252.6 million In Canada, dividends can be paid subject to the paying insurance company continuing to have adequate capital and forms of liquidity as defined by OSFI following the dividend payment and upon 15 days minimum notice to OSFI. Primerica Life Canada’s dividend capacity at January 1, 2016 is estimated to be approximately $92.3 million, which is calculated based on its projection of maintaining internal target capital requirements under certain adverse capital scenarios during each year over the next five years. The actual amount of future dividends that Primerica Life Canada will declare and pay is also subject to the Company’s asserted position of permanent reinvestment of certain unremitted earnings discussed in Note 11 (Income Taxes). |
Commitments and Contingent Liab
Commitments and Contingent Liabilities (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | (16) Commitments and Contingent Liabilities Commitments. We lease office equipment and office and warehouse space under various noncancellable operating lease agreements that expire through June 2028. Total minimum rent expense was $7.2 million, $7.7 million, and $8.3 million for the years ended December 31, 2015, 2014, and 2013, respectively. We had no contingent rent expense during 2015, 2014, or 2013. In March 2013, our agreement to lease our new corporate headquarters in Duluth, Georgia, commenced, which replaced and consolidated substantially all of our prior executive and home office operations. The initial lease term is 15 years with estimated minimum annual rental payments ranging from approximately $4.5 million at inception to approximately $5.6 million in year 15. As of December 31, 2015, the minimum aggregate rental commitments for operating leases were as follows: December 31, 2015 (In thousands) 2016 $ 6,724 2017 6,748 2018 6,108 2019 5,723 2020 5,358 Thereafter 40,375 Total minimum rental commitments for operating leases $ 71,036 As of December 31, 2015 and 2014, we had no material capital leases. Letter of Credit. Effective March 31, 2012, Peach Re entered into a Credit Facility Agreement with Deutsche Bank (the “Credit Facility Agreement”) to support certain obligations for a portion of the reserves (commonly referred to as Regulation XXX reserves) related to level premium term life insurance policies ceded to Peach Re from Primerica Life under the Peach Re Coinsurance Agreement. Under the Credit Facility Agreement, Deutsche Bank issued a letter of credit in the initial amount of $450.0 million with a term of approximately 14 years (the “LOC”) for the benefit of Primerica Life, the direct parent of Peach Re. Subject to certain conditions, the amount of the LOC periodically increased up to a maximum amount of approximately $507.0 million, which was reached in 2014. Pursuant to the terms of the Credit Facility Agreement, in the event amounts are drawn under the LOC by Primerica Life, Peach Re will be obligated, subject to certain limited conditions, to reimburse Deutsche Bank for the amount of any draws and interest thereon. Peach Re has collateralized its obligations to Deutsche Bank by granting it a security interest in all of its assets with the exception of amounts held in a special account established to meet minimum asset thresholds required by state regulatory authorities. As of December 31, 2015, the Company was in compliance with all financial covenants under the Credit Facility Agreement. 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 unless otherwise indicated. The Company is currently undergoing multi-state treasurer unclaimed property audits by 30 jurisdictions focusing on the life insurance claims paying practices of its subsidiaries, Primerica Life and NBLIC. Primerica Life is subject to a multi-state market conduct exam also regarding its life insurance claims paying practices. The West Virginia State Treasurer brought a suit against Primerica Life and other insurance companies alleging violations of the West Virginia unclaimed property act. Other jurisdictions may pursue similar audits, examinations and litigation. 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. |
Benefit Plans (Notes)
Benefit Plans (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Benefit Plans | (17) Benefit Plans We sponsor a defined contribution plan for the benefit of our employees. The expense associated with this plan was approximately $6.7 million, $6.5 million, and $6.5 million in 2015, 2014, and 2013, respectively. |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | (18) Unaudited Quarterly Financial Data In management’s opinion, the following quarterly consolidated financial information fairly presents the results of operations for such periods and is prepared on a basis consistent with our annual audited consolidated financial statements. Financial information for the quarters presented was prepared on a consolidated basis. Quarter ended Quarter ended Quarter ended Quarter ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 (In thousands, except per-share amounts) Direct premiums $ 577,458 $ 588,248 $ 587,882 $ 591,856 Ceded premiums (397,540 ) (406,854 ) (393,987 ) (396,838 ) Net premiums 179,918 181,394 193,895 195,018 Commissions and fees 132,835 139,150 132,368 132,794 Net investment income 21,173 19,075 18,715 17,546 Realized investment gains (losses), including OTTI 1,284 597 (259 ) (3,360 ) Other, net 9,635 10,301 11,105 12,131 Total revenues 344,845 350,517 355,824 354,129 Total benefits and expenses 278,036 273,692 280,871 281,735 Income from continuing operations before income taxes 66,809 76,825 74,953 72,394 Income taxes 23,408 27,652 25,603 24,445 Income from continuing operations 43,401 49,173 49,350 47,949 Income from discontinued operations, net of income taxes - - - - Net income $ 43,401 $ 49,173 $ 49,350 $ 47,949 Basic earnings per share: Continuing operations $ 0.82 $ 0.94 $ 0.98 $ 0.97 Discontinued operations - - - - Basic earnings per share $ 0.82 $ 0.94 $ 0.98 $ 0.97 Diluted earnings per share: Continuing operations $ 0.82 $ 0.94 $ 0.98 $ 0.97 Discontinued operations - - - - Diluted earnings per share $ 0.82 $ 0.94 $ 0.98 $ 0.97 Quarter ended Quarter ended Quarter ended Quarter ended March 31, 2014 June 30, 2014 September 30, 2014 December 31, 2014 (In thousands, except per-share amounts) Direct premiums $ 568,205 $ 576,740 $ 577,482 $ 578,905 Ceded premiums (402,715 ) (410,546 ) (402,198 ) (401,359 ) Net premiums 165,490 166,194 175,284 177,546 Commissions and fees 126,933 132,039 132,928 135,267 Net investment income 21,599 21,681 20,465 22,728 Realized investment gains (losses), including OTTI 263 831 (281 ) (1,074 ) Other, net 9,712 9,981 10,445 10,596 Total revenues 323,997 330,726 338,841 345,063 Total benefits and expenses 257,165 254,986 274,821 275,933 Income from continuing operations before income taxes 66,832 75,740 64,020 69,130 Income taxes 23,347 26,469 22,407 23,664 Income from continuing operations 43,485 49,271 41,613 45,466 Income (loss) from discontinued operations, net of income taxes 1,595 - (18 ) - Net income $ 45,080 $ 49,271 $ 41,595 $ 45,466 Basic earnings per share: Continuing operations $ 0.78 $ 0.89 $ 0.75 $ 0.84 Discontinued operations 0.03 - - - Basic earnings per share $ 0.81 $ 0.89 $ 0.75 $ 0.84 Diluted earnings per share: Continuing operations $ 0.78 $ 0.89 $ 0.75 $ 0.84 Discontinued operations 0.03 - - - Diluted earnings per share $ 0.81 $ 0.89 $ 0.75 $ 0.84 Quarterly amounts may not agree in total to the corresponding annual amounts due to rounding. |
Schedule I Summary of Investmen
Schedule I Summary of Investments - Other Than Investments in Related Party | 12 Months Ended |
Dec. 31, 2015 | |
Marketable Securities Fixed Maturities [Abstract] | |
Consolidated Summary of Investments-Other than Investments in Related Parties | Schedule I Consolidated Summary of Investments — Other Than Investments in Related Parties PRIMERICA, INC. December 31, 2015 Type of Investment Amortized cost or cost Fair value Amount at which shown in the balance sheet (In thousands) Fixed maturities: Bonds (1) United States Government and government agencies and authorities $ 110,672 $ 117,714 $ 117,714 States, municipalities and political subdivisions 39,990 41,582 41,582 Foreign governments 114,656 120,216 120,216 Public utilities - - - Convertibles and bonds with warrants attached 2,569 2,812 2,812 All other corporate bonds (2) 1,789,925 1,823,457 1,816,935 Certificates of deposit - - - Redeemable preferred stocks 2,809 2,778 2,778 Total fixed maturities 2,060,621 2,108,559 2,102,037 Equity securities: Common stocks: Public utilities 7,488 10,794 10,794 Banks, trusts and insurance companies 8,330 10,264 10,264 Industrial, miscellaneous and all other 9,185 10,598 10,598 Nonredeemable preferred stocks 14,966 16,183 16,183 Total equity securities 39,969 47,839 47,839 Mortgage loans on real estate - - - Real estate - - - Policy loans 28,627 28,627 28,627 Other long-term investments - - - Short-term investments - - - Total investments $ 2,129,217 $ 2,185,025 $ 2,178,503 (1) Mortgage-and asset-backed securities are included in the investment types listed based on the entity-type that issued these securities. ( 2 ) The amount shown on the balance sheet does not match the amortized cost or cost or fair value for “All other corporate bonds” due to our held-to-maturity security, which is carried at cost on the balance sheet and all other fixed maturities are carried at fair value. See the accompanying report of independent registered public accounting firm. |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information Of Registrant | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Registrant | Schedule II Condensed Financial Information of Registrant PRIMERICA, INC. (Parent Only) Condensed Balance Sheets December 31, 2015 2014 (In thousands) Assets Investments: Fixed-maturity securities available-for-sale, at fair value (amortized cost: $71,419 in 2015 and $160,839 in 2014) $ 71,437 $ 161,840 Total investments 71,437 161,840 Cash and cash equivalents 15,029 32,634 Due from affiliates* 133 92 Other receivables 659 1,318 Deferred income taxes 8,904 7,311 Investment in subsidiaries* 1,442,608 1,430,484 Other assets 2,033 2,442 Total assets 1,540,803 1,636,121 Liabilities and Stockholders’ Equity Liabilities: Notes payable 374,585 374,532 Current income tax payable 2,311 3,287 Deferred income taxes 3,695 3,489 Due to affiliates* 3,912 1,182 Interest payable 8,214 8,214 Other liabilities 2,314 291 Commitments and contingent liabilities (see Note E) Total liabilities 395,031 390,995 Stockholders’ equity: Common stock ($0.01 par value; authorized 500,000 in 2015 and 2014; issued and outstanding 48,297 shares in 2015 and 52,169 shares in 2014) 483 522 Paid-in capital 180,250 353,337 Retained earnings 952,804 795,740 Accumulated other comprehensive income, net of income tax 12,235 95,527 Total stockholders’ equity 1,145,772 1,245,126 Total liabilities and stockholders’ equity $ 1,540,803 $ 1,636,121 * Eliminated in consolidation. See the accompanying notes to condensed financial statements. See the accompanying report of independent registered public accounting firm. Schedule II Condensed Financial Information of Registrant PRIMERICA, INC. (Parent Only) Condensed Statements of Income Year ended December 31, 2015 2014 2013 (In thousands) Revenues: Dividends from subsidiaries* $ 149,187 $ 319,740 $ 228,319 Net investment income 2,224 1,010 762 Realized investment gains (losses), including other-than-temporary impairment losses (1,762 ) (1,574 ) 11 Total revenues 149,649 319,176 229,092 Expenses: Interest expense 18,177 18,174 18,172 Other operating expenses 10,603 8,667 7,882 Total expenses 28,780 26,841 26,054 Income before income taxes 120,869 292,335 203,038 Income taxes (7,124 ) (7,540 ) (7,043 ) Income (loss) before equity in undistributed earnings of subsidiaries 127,993 299,875 210,081 Equity in undistributed earnings of subsidiaries* 61,878 (118,463 ) (47,356 ) Net income $ 189,871 $ 181,412 $ 162,725 * Eliminated in consolidation. See the accompanying notes to condensed financial statements. See the accompanying report of independent registered public accounting firm. Schedule II Condensed Financial Information of Registrant PRIMERICA, INC. (Parent Only) Condensed Statements of Comprehensive Income Year ended December 31, 2015 2014 2013 (In thousands) Net income $ 189,871 $ 181,412 $ 162,725 Other comprehensive income (loss) before income taxes: Unrealized investment gains (losses): Equity in unrealized holding gains (losses) on investment securities held by subsidiaries (41,171 ) 7,296 (47,651 ) Change in unrealized holding gains/(losses) on investment securities (2,745 ) (778 ) (358 ) Reclassification adjustment for realized investment (gains) losses included in net income 1,762 1,574 (11 ) Foreign currency translation adjustments: Equity in unrealized foreign currency translation gains of subsidiaries (41,929 ) (20,527 ) (13,695 ) Total other comprehensive income (loss) before income taxes (84,083 ) (12,435 ) (61,715 ) Income tax expense (benefit) related to items of other comprehensive income (loss) (791 ) 44 (311 ) Other comprehensive income (loss), net of income taxes (83,292 ) (12,479 ) (61,404 ) Total comprehensive income $ 106,579 $ 168,933 $ 101,321 See the accompanying notes to condensed financial statements. See the accompanying report of independent registered public accounting firm. Schedule II Condensed Financial Information of Registrant PRIMERICA, INC. (Parent Only) Condensed Statements of Cash Flows Year ended December 31, 2015 2014 2013 (In thousands) Cash flows from operating activities: Net income $ 189,871 $ 181,412 $ 162,725 Adjustments to reconcile net income to cash provided by (used in) operating activities: Equity in undistributed earnings of subsidiaries* (1) (74,814 ) (70,472 ) 47,356 Deferred tax provision (1,434 ) (1,778 ) (227 ) Change in income taxes (138 ) 979 (4,912 ) Realized investment (gains) losses, including other-than-temporary impairments 1,762 1,574 (11 ) Accretion and amortization of investments 808 203 60 Depreciation and amortization 6 23 23 Share-based compensation 1,031 998 718 Change in due to/from affiliates* 2,689 998 (336 ) Change in other operating assets and liabilities, net 3,135 (550 ) 290 Net cash provided by (used in) operating activities 122,916 113,387 205,686 Cash flows from investing activities: Available-for-sale investments sold, matured or called: Fixed maturity securities — sold 71,019 45,312 2,679 Fixed-maturity securities — matured or called 100,900 53,512 20,269 Available-for-sale investments acquired: Fixed-maturity securities (1) (72,131 ) (10,290 ) (33,118 ) Net cash provided by (used in) investing activities 99,788 88,534 (10,170 ) Cash flows from financing activities: Dividends paid (32,807 ) (26,512 ) (25,058 ) Common stock repurchased (200,084 ) (147,922 ) (86,280 ) Warrants repurchased - - (68,399 ) Excess tax benefit on share-based compensation 61 163 79 Tax withholdings on share-based compensation (7,615 ) (6,377 ) (14,793 ) Cash proceeds from stock options exercised 136 - - Net cash provided by (used) in financing activities (240,309 ) (180,648 ) (194,451 ) Change in cash and cash equivalents (17,605 ) 21,273 1,065 Cash and cash equivalents, beginning of period 32,634 11,361 10,296 Cash and cash equivalents, end of period $ 15,029 $ 32,634 $ 11,361 Supplemental disclosures of cash flow information: Interest paid $ 17,813 $ 17,813 $ 17,070 * Eliminated in consolidation. (1) Does not include $12,936 and $188,935 of fixed-maturity securities transferred from subsidiaries in the form of noncash dividends for the years ended December 31, 2015 and December 31, 2014, respectively. See the accompanying notes to condensed financial statements. See the accompanying report of independent registered public accounting firm. Schedule II Condensed Financial Information of Registrant PRIMERICA, INC. (Parent Only) Notes to Condensed Financial Statements (A) Corporate Reorganization Primerica, Inc. (“we”, “us” or the “Company”) is a holding company with our primary asset being the capital stock of our operating subsidiaries, and our primary liability being $375.0 million in principal amount of senior unsecured notes issued in a public offering in 2012 (the “Senior Notes”). We were incorporated in Delaware on October 29, 2009 by Citigroup, Inc. (“Citigroup”), to serve as a holding company for the life insurance and financial product distribution businesses that we have operated for more than 30 years. In April 2010, these indirect subsidiaries of Citigroup were transferred to us through multiple transactions (the “corporate reorganization”), which culminated in the sale of a portion of our common stock owned by Citigroup in an initial public offering (the “IPO”). Prior to our corporate reorganization, we had no material assets or liabilities. (B) Basis of Presentation These condensed financial statements reflect the results of operations, financial position and cash flows for the Company. 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 most significant item that involves a greater degree of accounting estimates subject to change in the future is determination of our investments in subsidiaries. Estimates for this 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. The accompanying condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto of Primerica, Inc. and subsidiaries included in Part II, Item 8 of this report. (C) Note Payable In July 2012, we issued the Senior Notes in a public offering at a price of 99.843% of the principal amount with an annual interest rate of 4.75%, payable semi-annually in arrears on January 15 and July 15. The Senior Notes mature on July 15, 2022. As unsecured senior obligations, the Senior Notes rank equally in right of payment with all existing and future unsubordinated indebtedness and senior to all existing and future subordinated indebtedness of the Company. The Senior Notes are structurally subordinated in right of payment to all existing and future liabilities of our subsidiaries. In addition, the Senior Notes contain covenants that restrict our ability to, among other things, create or incur any indebtedness that is secured by a lien on the capital stock of certain of our subsidiaries, and merge, consolidate or sell all or substantially all of our properties and assets. We were in compliance with the covenants of the Senior Notes at December 31, 2015. No events of default(s) occurred on the Senior Notes during the year ended December 31, 2015. (D) Dividends For the years ended December 31, 2015, 2014, and 2013, the Company received dividends from our non-life insurance subsidiaries of approximately $86.5 million, $71.3 million, and $63.9 million, respectively. For the years ended December 31, 2015, 2014, and 2013, the Company received dividends from our life insurance subsidiaries of approximately $62.6 million, $248.4 million, and $164.4 million, respectively. (E) Commitments and Contingent Liabilities We have capital maintenance agreements with Peach Re, Inc. (“Peach Re”) and Vidalia Re, Inc., (“Vidalia Re”), special purpose financial captive insurance companies and indirect wholly owned subsidiaries of the Company. Each of the capital maintenance agreement requires us at times to make capital contributions to Peach Re and Vidalia Re to insure that their regulatory accounts as defined in the coinsurance agreements with Primerica Life Insurance Company (“Primerica Life”), a life insurance company and wholly owned subsidiary of the Company, will not be less than $20.0 million for each financial captive insurance company. For Peach Re, the regulatory account will only be used to satisfy obligations under its coinsurance agreement after all other available assets have been used, including a letter of credit (“LOC”) issued by Deutsche Bank for the benefit of Primerica Life. The LOC was issued in 2012 with a term of approximately 14 years. At December 31, 2015, the amount of the LOC outstanding was approximately $455.7 million. For Vidalia Re, the regulatory account will only be used to satisfy obligations under its coinsurance agreement after all other available assets have been used including its held-to-maturity security ultimately guaranteed by Hannover Life Reassurance Company of America. 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 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. |
Schedule III - Supplementary In
Schedule III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | Schedule III Supplementary Insurance Information PRIMERICA, INC. Deferred policy acquisition costs Future policy benefits Unearned premiums Other policy benefits and claims payable Separate account liabilities (In thousands) December 31, 2015 Term Life Insurance $ 1,420,727 $ 5,221,188 $ - $ 227,384 $ - Investment and Savings Products 51,501 - - - 2,063,731 Corporate and Other Distributed Products 28,031 210,523 628 10,773 168 Total $ 1,500,259 $ 5,431,711 $ 628 $ 238,157 $ 2,063,899 December 31, 2014 Term Life Insurance $ 1,264,152 $ 5,052,661 $ - $ 233,522 $ - Investment and Savings Products 58,156 - - - 2,439,863 Corporate and Other Distributed Products 28,872 211,947 912 12,307 440 Total $ 1,351,180 $ 5,264,608 $ 912 $ 245,829 $ 2,440,303 Premium revenue Net investment income Benefits and claims Amortization of deferred policy acquisition costs Other operating expenses Premiums written (In thousands) Year ended December 31, 2015 Term Life Insurance $ 728,181 $ 5,987 $ 322,232 $ 147,980 $ 120,527 $ - Investment and Savings Products - - - 7,952 368,185 - Corporate and Other Distributed Products 22,043 70,522 17,083 1,795 128,579 908 Total $ 750,224 $ 76,509 $ 339,315 $ 157,727 $ 617,291 $ 908 Year ended December 31, 2014 Term Life Insurance $ 660,684 $ 4,444 $ 295,332 $ 133,331 $ 111,796 $ - Investment and Savings Products - - - 8,734 357,322 - Corporate and Other Distributed Products 23,831 82,029 16,085 2,313 137,989 934 Total $ 684,515 $ 86,473 $ 311,417 $ 144,378 $ 607,107 $ 934 Year ended December 31, 2013 Term Life Insurance $ 597,162 $ 3,029 $ 262,357 $ 115,891 $ 101,111 $ - Investment and Savings Products - - - 11,195 340,794 - Corporate and Other Distributed Products 23,871 85,723 17,574 2,097 132,973 905 Total $ 621,033 $ 88,752 $ 279,931 $ 129,183 $ 574,878 $ 905 See the accompanying report of independent registered public accounting firm. |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2015 | |
Schedule Iv Reinsurance [Abstract] | |
Reinsurance | Schedule IV Reinsurance PRIMERICA, INC. Year ended December 31, 2015 Gross amount Ceded to other companies Assumed from other companies Net amount Percentage of amount assumed to net (Dollars in thousands) Life insurance in force $ 696,884,429 $ 616,252,839 $ - $ 80,631,590 — % Premiums: Life insurance $ 2,343,877 $ 1,594,606 $ - $ 749,271 — % Accident and health insurance 1,567 614 - 953 — % Total premiums $ 2,345,444 $ 1,595,220 $ - $ 750,224 — % Year ended December 31, 2014 Gross amount Ceded to other companies Assumed from other companies Net amount Percentage of amount assumed to net (Dollars in thousands) Life insurance in force $ 685,998,013 $ 607,218,906 $ - $ 78,779,107 — % Premiums: Life insurance $ 2,299,355 $ 1,615,847 $ - $ 683,508 — % Accident and health insurance 1,977 970 - 1,007 — % Total premiums $ 2,301,332 $ 1,616,817 $ - $ 684,515 — % Year ended December 31, 2013 Gross amount Ceded to other companies Assumed from other companies Net amount Percentage of amount assumed to net (Dollars in thousands) Life insurance in force $ 679,337,825 $ 601,309,340 $ - $ 78,028,485 — % Premiums: Life insurance $ 2,262,721 $ 1,642,775 $ - $ 619,946 — % Accident and health insurance 2,470 1,383 - 1,087 — % Total premiums $ 2,265,191 $ 1,644,158 $ - $ 621,033 — % See the accompanying report of independent registered public accounting firm. |
Description of Business, Basi31
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 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. |
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”), and 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 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 consolidated financial statements at December 31, 2015. |
Foreign Currency Translation | Foreign Currency Translation. Assets and liabilities of our Canadian subsidiaries are translated into U.S. dollars using year-end exchange rates. Revenues and expenses of our Canadian subsidiaries are translated monthly at amounts that approximate weighted-average exchange rates. Translation adjustments resulting from translating the financial statements of our Canadian subsidiaries into U.S. dollars are reported in other comprehensive income (loss). |
Investments | Investments. Investments are reported on the following bases: · Available-for-sale (“AFS”) fixed-maturity securities, including bonds and redeemable preferred stocks not classified as trading securities, are carried at fair value. When quoted market values are unavailable, we obtain estimates from independent pricing services or estimate fair value based upon a comparison to quoted issues of the same issuer or of other issuers with similar characteristics. · Held-to-maturity fixed-maturity security, which is carried at amortized cost. · Equity securities, including common and nonredeemable preferred stocks, are classified as AFS and are carried at fair value. When quoted market values are unavailable, we obtain estimates from independent pricing services or estimates fair value based upon a comparison to quoted issues of the same issuer or of other issuers with similar characteristics. · Trading securities, which primarily consist of bonds, are carried at fair value. Changes in fair value of trading securities are included in net investment income in the period in which the change occurred. · Policy loans are carried at unpaid principal balances, which approximate fair value. Investment transactions are recorded on a trade-date basis. We use the specific-identification method to determine the realized gains or losses from securities transactions and report the realized gains or losses in the accompanying consolidated statements of income. Unrealized gains and losses on AFS securities are included as a separate component of other comprehensive income, except for other-than-temporary impairments (“OTTI”) discussed below, in the accompanying consolidated statements of comprehensive income. Investments are reviewed on a quarterly basis for OTTI. Credit risk, interest rate risk, the amount of time the security has been in an unrealized loss position, actions taken by ratings agencies, and other factors are considered in determining whether an unrealized loss is other-than-temporary. OTTI in our accompanying consolidated statements of income reflect the impairment on AFS securities that we intend to sell or would more likely than not be required to sell before the expected recovery of the amortized cost basis. For AFS fixed maturity securities that we have no intent to sell and believe that it is not more likely than not we will be required to sell prior to recovery, only the credit loss component of OTTI is recognized in our accompanying consolidated statements of income, while the remainder is recognized in other comprehensive income (“OCI”) in the accompanying consolidated statements of comprehensive income (loss). The credit loss component of OTTI recognized in net income is identified as the amount of principal cash flows not expected to be received over the remaining term of the security. Any subsequent changes (if not an other-than-temporary impairment) in the fair value of AFS securities are recognized in other comprehensive income in the accompanying statements of comprehensive income. Interest income on fixed-maturity securities is recorded when earned by determining the effective yield, which gives consideration to amortization of premiums, accretion of discounts, and any previous OTTI. Dividend income on equity securities is recorded when declared. These amounts are included in net investment income in the accompanying consolidated statements of income. Included within fixed-maturity securities are loan-backed and asset-backed securities. Amortization of the premium or accretion of the discount uses the retrospective method. The effective yield used to determine amortization/accretion is calculated based on actual and historical projected future cash flows and updated quarterly. 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 recorded in realized gains (losses), including OTTI in the accompanying consolidated statements of income. |
Components of OCI | Components of OCI. The components of OCI, including the income tax expense or benefit allocated to each component, were as follows: Year ended December 31, 2015 2014 2013 (in thousands) Foreign currency translation adjustments: Change in unrealized foreign currency translation gains (losses) before income taxes $ (41,929 ) $ (20,527 ) $ (13,695 ) Income tax expense (benefit) on unrealized foreign currency translation gains (losses) (447 ) (234 ) (182 ) Change in unrealized foreign currency translation gains (losses), net of income taxes $ (41,482 ) $ (20,293 ) $ (13,513 ) Unrealized gains (losses) on AFS securities: Change in unrealized holding gains (losses) arising during period before income taxes $ (65,920 ) $ 11,228 $ (68,769 ) Income tax expense (benefit) on unrealized holding gains (losses) arising during period (23,074 ) 3,930 (24,069 ) Change in unrealized holding gains (losses) on AFS securities arising during period, net of income taxes (42,846 ) 7,298 (44,700 ) Reclassification from accumulated OCI to net income for (gains) losses realized on AFS securities $ 1,596 $ 794 $ (4,909 ) Income tax (expense) benefits on (gains) losses reclassified from accumulated OCI to net income 560 278 (1,718 ) Reclassification from accumulated OCI to net income for (gains) losses realized on AFS securities, net of income taxes 1,036 516 (3,191 ) Change in unrealized gains (losses) on AFS securities, net of income taxes and reclassification adjustment $ (41,810 ) $ 7,814 $ (47,891 ) |
Cash and Cash Equivalents | Cash and Cash Equivalents. Cash and cash equivalents include cash on hand, money market instruments, and all other highly liquid investments purchased with an original or remaining maturity of three months or less at the date of acquisition. |
Reinsurance | Reinsurance. We use reinsurance extensively, utilizing yearly renewable term (“YRT”) and coinsurance agreements. Under YRT agreements, we reinsure only the mortality risk, while under coinsurance, we reinsure a proportionate part of all risks arising under the reinsured policy. Under coinsurance, the reinsurer receives a proportionate part of the premiums, less commission allowances, and is liable for a corresponding part of all benefit payments. All reinsurance contracts in effect for the three-year period ended December 31, 2015 transfer a reasonable possibility of substantial loss to the reinsurer or are accounted for under the deposit method of accounting. Ceded premiums are treated as a reduction to direct premiums and are recognized when due to the assuming company. Ceded claims are treated as a reduction to direct benefits and are recognized when the claim is incurred on a direct basis. Ceded policy reserve changes are also treated as a reduction to benefits and claims expense and are recognized during the applicable financial reporting period. Reinsurance premiums, commissions, expense reimbursements and benefits and reserves related to reinsured long-duration contracts are accounted for over the life of the underlying contracts using assumptions consistent with those used to account for the underlying policies. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liabilities and future policy benefits associated with reinsured policies. Ceded policy reserves and claims liabilities relating to insurance ceded are shown as due from reinsurers on the accompanying consolidated balance sheets. We analyze and monitor the credit-worthiness of each of our reinsurance partners to minimize collection issues. For reinsurance contracts with unauthorized reinsurers, we require collateral such as letters of credit. To the extent we receive ceding allowances to cover policy and claims administration under reinsurance contracts, these allowances are treated as a reduction to insurance commissions and expenses and are recognized when due from the assuming company. To the extent we receive ceding allowances reimbursing commissions that would otherwise be deferred, the amount of commissions deferrable will be reduced. The corresponding DAC balances are reduced on a pro rata basis by the portion of the business reinsured with reinsurance agreements that meet risk transfer provisions. The reduced DAC will result in a corresponding reduction of amortization expense. |
Deferred Policy Acquisition Costs | DAC. We only defer the costs of acquiring new business to the extent that they result directly from and are essential to the contract transaction(s) and would not have been incurred had the contract transaction(s) not occurred. These deferred policy acquisition costs mainly include commissions and policy issue expenses. All other acquisition-related costs, including unsuccessful acquisition and renewal efforts, are charged to expense as incurred. Also, administrative costs, rent, depreciation, occupancy, equipment, and all other general overhead costs are considered indirect costs and are charged to expense as incurred. DAC for term life insurance policies is amortized over the initial premium-paying period of the related policies in proportion to premium income. DAC for Canadian segregated funds is amortized over the life of the underlying policies at a constant rate based on the present value of the estimated gross profits expected to be realized over the life of the underlying policies. DAC is subject to recoverability testing annually and when impairment indicators exist. |
Intangible Assets | Intangible Assets. Intangible assets are amortized over their estimated useful lives. Any intangible asset that was deemed to have an indefinite useful life is not amortized but is subject to an annual impairment test. An impairment exists if the carrying value of the indefinite-lived intangible asset exceeds its fair value. For the other intangible assets, which are subject to amortization, an impairment is recognized if the carrying amount is not recoverable and exceeds the fair value of the intangible asset. The components of intangible assets were as follows: December 31, 2015 2014 Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount (In thousands) Indefinite-lived intangible asset $ 45,275 n/a $ 45,275 $ 45,275 n/a $ 45,275 Amortizing intangible asset 84,871 (71,828 ) 13,043 84,871 (68,426 ) 16,445 Total intangible assets $ 130,146 $ (71,828 ) $ 58,318 $ 130,146 $ (68,426 ) $ 61,720 We have an indefinite-lived intangible asset related to the 1989 purchase of the right to contract with our sales force. This asset represents the core distribution model of our business, which is our primary competitive advantage to profitably distribute term life insurance and investment and savings products on a significant scale, and as such, is considered to have an indefinite life. This indefinite-lived intangible asset is supported by a significant portion of the discounted cash flows of our future business. We assessed this asset for impairment as of October 1, 2015 and determined that no impairment had occurred. There have been no subsequent events requiring further analysis. We also have an amortizing intangible asset related to a 1995 sales agreement termination payment to Management Financial Services, Inc. This asset is supported by a non-compete agreement with the founder of our business model. We calculate the amortization of this contract buyout on a straight-line basis over 24 years, which represents the life of the non-compete agreement. Intangible asset amortization expense was approximately $3.4 million |
Property, Plant and Equipment | Property and Equipment. Property and equipment, which are included in other assets, are stated at cost, less accumulated depreciation. Depreciation is recognized on a straight-line basis over the asset’s estimated useful life, which is estimated as follows: Estimated Useful Life Data processing equipment and software 3 to 7 years Leasehold improvements Lesser of 15 years or remaining life of lease Furniture and other equipment 5 to 15 years Depreciation expense is included in other operating expenses in the accompanying consolidated statements of income. Depreciation expense was $7.6 million, $7.0 million, and $7.3 million for the years ended December 31, 2015, 2014, and 2013, respectively. Property and equipment balances were as follows: December 31, 2015 2014 (In thousands) Data processing equipment and software $ 60,414 $ 50,956 Leasehold improvements 13,947 13,910 Other, principally furniture and equipment 27,065 26,763 101,426 91,629 Accumulated depreciation (72,017 ) (65,166 ) Net property and equipment $ 29,409 $ 26,463 |
Separate Accounts | Separate Accounts. The separate accounts are primarily comprised of contracts issued by the Company through its subsidiary, Primerica Life Canada, pursuant to the Insurance Companies Act (Canada). The Insurance Companies Act authorizes Primerica Life Canada to establish the separate accounts. The separate accounts are represented by individual variable annuity contracts. Purchasers of variable annuity contracts issued by Primerica Life Canada have a direct claim to the benefits of the contract that entitles the holder to units in one or more investment funds (the “Funds”) maintained by Primerica Life Canada. The Funds invest in assets that are held for the benefit of the owners of the contracts. The benefits provided vary in amount depending on the market value of the Funds’ assets. The Funds’ assets are administered by Primerica Life Canada and are held separate and apart from the general assets of the Company. The liabilities reflect the variable insurance annuity contract holders’ interests in variable annuity assets based upon actual investment performance of the respective Funds. Separate account operating results relating to contract holders’ interests are excluded from our consolidated statements of income. Primerica Life Canada’s contract offerings guarantee the maturity value at the date of maturity (or upon death, whichever occurs first) to be equal to 75% of the sum of all contributions made, net of withdrawals, on a first-in first-out basis. Otherwise, the maturity value or death benefit will be the accumulated value of units allocated to the contract at the specified valuation date. The amount of this value is not guaranteed, but will fluctuate with the fair value of the Funds. |
Future Policy Benefits Liability | Policyholder Liabilities. Future policy benefits are accrued over the current and expected renewal periods of the contracts. Liabilities for future policy benefits on traditional life insurance products have been computed using a net level method, including assumptions as to interest rates, mortality, persistency, and other assumptions based on our experience, modified as necessary to reflect anticipated trends and to include provisions for possible adverse deviation. The underlying mortality tables are the Society of Actuaries (“SOA”) 65-70, SOA 75-80, SOA 85-90, and the 91 Bragg, modified to reflect various underwriting classifications and assumptions. Interest rate reserve assumptions at December 31, 2015 and 2014 ranged from approximately 3.5% to 7.0%. For policies issued in 2010 and after, we have been using an increasing interest rate assumption to reflect the historically low interest rate environment. The liability for policy claims and other benefits payable on traditional life insurance products includes estimated unpaid claims that have been reported to us and claims incurred but not yet reported. The future policy benefit reserves we establish are necessarily based on estimates, assumptions and our analysis of historical experience. We do not modify the assumptions used to establish future policy benefit reserves during the policy term unless recoverability testing deems them to be inadequate and there is no remaining DAC associated with the underlying policies. Our results depend significantly upon the extent to which our actual claims experience is consistent with the assumptions we used in determining our future policy benefit reserves and pricing our products. Our future policy benefit reserve assumptions and estimates require significant judgment and, therefore, are inherently uncertain. We cannot determine with precision the ultimate amounts that we will pay for actual claims or the timing of those payments. Other Policyholders’ Funds . Other policyholders’ funds primarily represent claim payments left on deposit with us. |
Litigation | Litigation. The Company is involved from time to time in legal disputes, regulatory inquiries and arbitration proceedings in the normal course of business. Contingent litigation- related losses are recognized when probable and can be reasonably estimated. Legal costs, such as attorney’s fees and other litigation-related expenses, that are incurred in connection with resolving litigation are expensed as incurred. These disputes are subject to uncertainties, including indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation. Due to the difficulty of estimating costs of litigation, actual costs may be substantially higher or lower than any amounts reserved. |
Income Taxes | Income Taxes . We are subject to the income tax laws of the United States, its states, municipalities, and certain unincorporated territories, and those of Canada. These tax laws can be complex and subject to different interpretations by the taxpayer and the relevant governmental taxing authorities. In establishing a provision for income tax expense, we must make judgments and interpretations about the applicability of these tax laws. We also must make estimates about the future impact certain items will have on taxable income in the various tax jurisdictions, both domestic and foreign. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to (i) differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and (ii) operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are recognized subject to management’s judgment that realization is more likely than not applicable to the periods in which we expect the temporary difference will reverse. |
Premium Revenues | Premium Revenues . Traditional life insurance products consist principally of those products with fixed and guaranteed premiums and benefits, and are primarily related to term products. Premiums are recognized as revenues when due. |
Commissions and Fees | Commissions and Fees. We receive commission revenues from the sale of various non-life insurance products. Commissions are generally received on sales of mutual funds and annuities. We also receive trail commission revenues from mutual fund and annuity products based on the net asset value of shares sold by us. We, in turn, pay certain commissions to our sales force. Additionally, we receive marketing and support fees from product originators. We also receive management fees based on the average daily net asset value of managed investments and contracts related to separate account assets issued by Primerica Life Canada. We earn recordkeeping fees for administrative functions that we perform on behalf of several of our mutual fund providers and custodial fees for services performed as a non-bank custodian of our clients’ retirement plan accounts. We, in turn, pay a third-party provider for its servicing of certain of these accounts. Commissions and fees are recognized as income during the period in which they are earned. |
Benefits And Expenses | Benefits and Expenses . Benefit and expense items are charged to income in the period in which they are incurred. Both the change in policyholder liabilities, which is included in benefits and claims, and the amortization of deferred policy acquisition costs will vary with policyholder persistency. |
Share-based Transactions | Share-Based Transactions. For employee and director share-based compensation awards, we determine a grant date fair value, based on the price of our publicly-traded common stock, and recognize the related compensation expense, adjusted for expected forfeitures, in the statement of income on a straight-line basis over the requisite service period for the entire award. For non-employee share-based compensation, we recognize the impact during the period of performance, and the fair value of the award is measured as of the date performance is complete, which is the vesting date. To the extent that a share-based award contains sale restrictions extending beyond the vesting date, we reduce the recognized fair value of the award to reflect the corresponding illiquidity discount. Most non-employee share-based compensation is 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 these expenses and amortize the impact in the same manner as all other DAC. |
Earnings Per Share | Earnings Per Share (“EPS”). The Company has outstanding common stock and equity awards that consist of restricted stock, restricted stock units (“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 EPS as they maintain dividend rights. See Note 13 (Earnings Per Share) for details related to the calculations of our basic and diluted EPS using the two-class method. |
New Accounting Principles | New Accounting Principles. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 clarifies the principles for recognizing revenue by establishing the core principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue that is recognized. Insurance contracts are specifically excluded from the scope of ASU 2014-09 and therefore revenue from our insurance product lines will not be affected by the new standard. The amendments in ASU 2014-09, as updated by ASU No. 2015-14, are effective retrospectively for the Company beginning in fiscal year 2018. Early adoption is not permitted. While we are still in the process of evaluating the guidance in ASU 2014-09, we do not expect it will have a material impact on our consolidated financial statements. 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 . In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instruments—Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities Future Application of Accounting Standards. Recent accounting guidance not discussed is not applicable, is immaterial to our financial statements, or did not or will not have an impact on our business. |
Description of Business, Basi32
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Components of OCI. The components of OCI, including the income tax expense or benefit allocated to each component, were as follows: Year ended December 31, 2015 2014 2013 (in thousands) Foreign currency translation adjustments: Change in unrealized foreign currency translation gains (losses) before income taxes $ (41,929 ) $ (20,527 ) $ (13,695 ) Income tax expense (benefit) on unrealized foreign currency translation gains (losses) (447 ) (234 ) (182 ) Change in unrealized foreign currency translation gains (losses), net of income taxes $ (41,482 ) $ (20,293 ) $ (13,513 ) Unrealized gains (losses) on AFS securities: Change in unrealized holding gains (losses) arising during period before income taxes $ (65,920 ) $ 11,228 $ (68,769 ) Income tax expense (benefit) on unrealized holding gains (losses) arising during period (23,074 ) 3,930 (24,069 ) Change in unrealized holding gains (losses) on AFS securities arising during period, net of income taxes (42,846 ) 7,298 (44,700 ) Reclassification from accumulated OCI to net income for (gains) losses realized on AFS securities $ 1,596 $ 794 $ (4,909 ) Income tax (expense) benefits on (gains) losses reclassified from accumulated OCI to net income 560 278 (1,718 ) Reclassification from accumulated OCI to net income for (gains) losses realized on AFS securities, net of income taxes 1,036 516 (3,191 ) Change in unrealized gains (losses) on AFS securities, net of income taxes and reclassification adjustment $ (41,810 ) $ 7,814 $ (47,891 ) |
Schedule of Intangible Assets | The components of intangible assets were as follows: December 31, 2015 2014 Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount (In thousands) Indefinite-lived intangible asset $ 45,275 n/a $ 45,275 $ 45,275 n/a $ 45,275 Amortizing intangible asset 84,871 (71,828 ) 13,043 84,871 (68,426 ) 16,445 Total intangible assets $ 130,146 $ (71,828 ) $ 58,318 $ 130,146 $ (68,426 ) $ 61,720 |
Schedule of Assets Estimated Useful Life | Depreciation is recognized on a straight-line basis over the asset’s estimated useful life, which is estimated as follows: Estimated Useful Life Data processing equipment and software 3 to 7 years Leasehold improvements Lesser of 15 years or remaining life of lease Furniture and other equipment 5 to 15 years |
Property, Plant and Equipment | Property and equipment balances were as follows: December 31, 2015 2014 (In thousands) Data processing equipment and software $ 60,414 $ 50,956 Leasehold improvements 13,947 13,910 Other, principally furniture and equipment 27,065 26,763 101,426 91,629 Accumulated depreciation (72,017 ) (65,166 ) Net property and equipment $ 29,409 $ 26,463 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Results of Operations and Carrying Values Of Assets And Liabilities Related To DBL | The results of DBL included in discontinued operations were as follows: Year ended December 31, 2015 2014 2013 (In thousands) Total revenues from discontinued operations $ - $ - $ 36,878 Income from discontinued operations before income taxes - 2,427 6,192 Provision for income taxes - 849 2,168 Income from discontinued operations, net income taxes $ - $ 1,578 $ 4,024 |
Segment and Geographical Info34
Segment and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Continuing Operations by Segment | Results of continuing operations by segment were as follows: Year ended December 31, 2015 2014 2013 (In thousands) Revenues: Term life insurance segment $ 763,948 $ 692,560 $ 627,637 Investment and savings products segment 522,220 512,073 457,138 Corporate and other distributed products segment 119,146 133,991 144,223 Total revenues $ 1,405,314 $ 1,338,624 $ 1,228,998 Income (loss) from continuing operations before income taxes: Term life insurance segment $ 173,209 $ 152,101 $ 148,278 Investment and savings products segment 146,083 146,017 105,149 Corporate and other distributed products segment (28,311 ) (22,396 ) (8,421 ) Total income from continuing operations before income taxes $ 290,981 $ 275,722 $ 245,006 |
Assets by Segment | Total assets by segment were as follows: December 31, 2015 December 31, 2014 December 31, 2013 (In thousands) Assets: Term life insurance segment $ 5,639,497 $ 5,472,415 $ 5,253,756 Investment and savings products segment (1) 2,157,548 2,545,372 2,609,008 Corporate and other distributed products segment 2,815,074 2,719,808 2,466,980 Total assets $ 10,612,119 $ 10,737,595 $ 10,329,744 |
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: Year ended December 31, 2014 2013 (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 $ 65,326 $ 65,767 |
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: Year ended December 31, 2014 2013 (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 $ 16,396 $ 16,846 |
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 consolidated balance sheets —were as follows: Year ended December 31, 2015 2014 2013 (In thousands) Revenues by country: United States $ 1,173,556 $ 1,095,888 $ 998,186 Canada 231,758 242,736 230,812 Total revenues $ 1,405,314 $ 1,338,624 $ 1,228,998 Income from continuing operations before income taxes by country: United States $ 225,920 $ 203,120 $ 177,312 Canada 65,061 72,602 67,694 Total income from continuing operations before income taxes $ 290,981 $ 275,722 $ 245,006 December 31, 2015 December 31, 2014 December 31, 2013 (In thousands) Long-lived assets by country: United States $ 28,621 $ 25,897 $ 24,413 Canada 787 566 637 Total long-lived assets $ 29,408 $ 26,463 $ 25,050 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Investments Debt and Equity Securities [Line Items] | |
Schedule of AFS Securities Reconciliation | The period-end cost or amortized cost, gross unrealized gains and losses, and fair value of AFS fixed-maturity and equity securities follow: December 31, 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 $ 20,233 $ 448 $ (22 ) $ 20,659 Foreign government 114,656 7,082 (1,522 ) 120,216 States and political subdivisions 38,995 2,111 (541 ) 40,565 Corporates 1,276,965 49,008 (24,211 ) 1,301,762 Mortgage- and asset-backed securities 239,194 9,818 (755 ) 248,257 Total fixed-maturity securities (1) 1,690,043 68,467 (27,051 ) 1,731,459 Equity securities 39,969 8,252 (382 ) 47,839 Total fixed-maturity and equity securities $ 1,730,012 $ 76,719 $ (27,433 ) $ 1,779,298 (1) Includes approximately $0.1 million December 31, 2014 Cost or amortized cost (2) Gross unrealized gains (2) Gross unrealized losses (2) Fair value (In thousands) Securities available-for-sale, carried at fair value: Fixed-maturity securities: U.S. government and agencies $ 15,107 $ 557 $ (17 ) $ 15,647 Foreign government 113,931 8,885 (319 ) 122,497 States and political subdivisions 38,163 2,719 (188 ) 40,694 Corporates 1,236,264 83,675 (4,071 ) 1,315,868 Mortgage- and asset-backed securities 251,756 13,050 (392 ) 264,414 Total fixed-maturity securities (1) 1,655,221 108,886 (4,987 ) 1,759,120 Equity securities 43,703 10,717 (1,030 ) 53,390 Total fixed-maturity and equity securities $ 1,698,924 $ 119,603 $ (6,017 ) $ 1,812,510 (1) Includes approximately $0.7 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. (2) |
Fixed-maturity Securities Classified by Contractual Maturity Date | The scheduled maturity distribution of the AFS fixed-maturity portfolio at December 31, 2015 follows: Amortized cost Fair value (In thousands) Due in one year or less $ 124,507 $ 125,109 Due after one year through five years 628,560 659,250 Due after five years through 10 years 648,916 646,343 Due after 10 years 48,866 52,500 1,450,849 1,483,202 Mortgage- and asset-backed securities 239,194 248,257 Total fixed-maturity securities $ 1,690,043 $ 1,731,459 |
Net Effect on Stockholders' Equity of Unrealized Gains and Losses on AFS Securities | The net effect on stockholders’ equity of unrealized gains and losses on AFS securities was as follows: December 31, 2015 December 31, 2014 (In thousands) Net unrealized investment gains including OTTI: Fixed-maturity and equity securities $ 49,286 $ 113,586 Currency swaps - 24 OTTI 109 710 Net unrealized investment gains excluding OTTI 49,395 114,320 Deferred income taxes (17,288 ) (40,012 ) Net unrealized investment gains excluding OTTI, net of tax $ 32,107 $ 74,308 |
Net Investment Income | Investment Income. The components of net investment income were as follows: Year ended December 31, 2015 2014 2013 (In thousands) Fixed-maturity securities (available-for-sale) $ 77,271 $ 84,687 $ 89,860 Fixed-maturity security (held-to-maturity) 13,048 3,482 - Equity securities 2,059 1,862 1,186 Policy loans and other invested assets 1,368 1,448 1,363 Cash and cash equivalents 228 247 272 Market return on deposit asset underlying 10% coinsurance agreement 482 3,095 938 Gross investment income 94,456 94,821 93,619 Investment expenses (4,899 ) (4,866 ) (4,867 ) Investment income net of investment expenses 89,557 89,955 88,752 Interest expense on surplus note (13,048 ) (3,482 ) - Net investment income $ 76,509 $ 86,473 $ 88,752 |
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 (losses) and proceeds from sales or other redemptions, were as follows: Year ended December 31, 2015 2014 2013 (In thousands) Net realized investment gains (losses): Gross gains from sales $ 5,762 $ 3,687 $ 6,734 Gross losses from sales (465 ) (436 ) (1,209 ) OTTI losses (6,893 ) (4,045 ) (616 ) Gains (losses) from bifurcated options (142 ) 533 1,337 Net realized investment gains (losses) $ (1,738 ) $ (261 ) $ 6,246 |
Schedule of Securities in Unrealized Loss Position | The following tables summarize, for all AFS 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: December 31, 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 $ 13,651 $ (22 ) 7 $ - $ - - Foreign government 23,572 (829 ) 20 2,396 (693 ) 3 States and political subdivisions 2,729 (44 ) 6 878 (497 ) 2 Corporates 413,131 (17,481 ) 393 34,624 (6,730 ) 54 Mortgage-and asset-backed securities 92,508 (631 ) 81 8,221 (124 ) 15 Total fixed-maturity securities 545,591 (19,007 ) 46,119 (8,044 ) Equity securities 3,652 (287 ) 17 3,209 (95 ) 8 Total fixed-maturity and equity securities $ 549,243 $ (19,294 ) $ 49,328 $ (8,139 ) 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 $ 680 $ (16 ) 1 Foreign government 4,753 (169 ) 6 3,438 (150 ) 3 States and political subdivisions 1,694 (4 ) 3 2,720 (184 ) 4 Corporates 117,249 (2,839 ) 129 24,602 (1,232 ) 45 Mortgage-and asset-backed securities 49,591 (109 ) 43 16,847 (283 ) 20 Total fixed-maturity securities 180,488 (3,122 ) 48,287 (1,865 ) Equity securities 4,900 (833 ) 13 2,303 (197 ) 1 Total fixed-maturity and equity securities $ 185,388 $ (3,955 ) $ 50,590 $ (2,062 ) |
Amortized Cost and Fair Value of AFS Fixed-maturity Securities in Default | The amortized cost and fair value of AFS fixed-maturity securities in default were as follows: December 31, 2015 December 31, 2014 Amortized cost Fair value Amortized cost Fair value (In thousands) Fixed-maturity securities in default $ 138 $ 262 $ 144 $ 611 |
Impairment Charges in Earnings on AFS Securities | Impairment charges recognized in earnings on AFS securities were as follows: Year ended December 31, 2015 2014 2013 (In thousands) Impairments on fixed-maturity securities not in default $ 5,108 $ 3,656 $ 609 Impairments on fixed-maturity securities in default 29 - - Impairments on equity securities 1,756 389 7 Total impairment charges $ 6,893 $ 4,045 $ 616 |
Schedule of Net Impairment Losses Recognized in Earnings for AFS Securities | The roll-forward of the OTTI recognized in net income for all fixed-maturity securities still held follows: Year ended December 31, 2015 2014 (In thousands) Cumulative OTTI recognized in net income for securities still held, beginning of period $ 9,550 $ 7,970 Additions for OTTI securities where no OTTI were recognized prior to the beginning of the period 2,340 3,654 Additions for OTTI securities where OTTI have been recognized prior to the beginning of the period 2,797 2 Reductions due to sales, maturities, calls, amortization or increases in cash flows expected to be collected over the remaining life of credit impaired securities (1,554 ) (902 ) Reductions for exchanges of securities previously impaired (1,277 ) (1,174 ) Cumulative OTTI recognized in net income for securities still held, end of period $ 11,856 $ 9,550 |
AFS [Member] | |
Schedule of Investments Debt and Equity Securities [Line Items] | |
Schedule of Net Impairment Losses Recognized in Earnings for AFS Securities | Net impairment losses recognized in earnings were as follows: Year ended December 31, 2015 2014 2013 (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 $ 706 $ 1,579 $ 832 Less portion of OTTI loss recognized in accumulated other comprehensive income (loss) - - (479 ) 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 706 1,579 353 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 6,187 2,466 263 Net impairment losses recognized in earnings $ 6,893 $ 4,045 $ 616 |
Fair Value of Financial Instr36
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, 2015 Level 1 Level 2 Level 3 Total (In thousands) Fair value assets: Available-for-sale fixed-maturity securities: U.S. government and agencies $ - $ 20,659 $ - $ 20,659 Foreign government - 120,216 - 120,216 States and political subdivisions - 40,565 - 40,565 Corporates 2,146 1,299,613 3 1,301,762 Mortgage- and asset-backed securities - 247,525 732 248,257 Total available-for-sale fixed-maturity securities 2,146 1,728,578 735 1,731,459 Equity securities 41,341 6,450 48 47,839 Trading securities - 5,358 - 5,358 Separate accounts - 2,063,899 - 2,063,899 Total fair value assets $ 43,487 $ 3,804,285 $ 783 $ 3,848,555 Fair value liabilities: Separate accounts $ - $ 2,063,899 $ - $ 2,063,899 Total fair value liabilities $ - $ 2,063,899 $ - $ 2,063,899 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: Year ended December 31, 2015 2014 (In thousands) Level 3 assets, beginning of period $ 1,165 $ 2,288 Net unrealized gains (losses) included in other comprehensive income (26 ) (153 ) Realized gains (losses) and accretion (amortization) recognized in earnings, including OTTI 4 439 Settlements (168 ) (1,409 ) Transfers into Level 3 - - Transfers out of Level 3 (192 ) - Level 3 assets, end of period $ 783 $ 1,165 |
Carrying Values and Estimated Fair Values for Financial Instruments | The carrying values and estimated fair values of our financial instruments were as follows: December 31, 2015 December 31, 2014 Carrying value Estimated fair value Carrying value Estimated fair value (In thousands) Assets: Fixed-maturity securities (available-for-sale) $ 1,731,459 $ 1,731,459 $ 1,759,120 $ 1,759,120 Fixed-maturity security (held-to-maturity) 365,220 371,742 220,000 228,809 Equity securities 47,839 47,839 53,390 53,390 Trading securities 5,358 5,358 7,711 7,711 Policy loans 28,627 28,627 28,095 28,095 Deposit asset underlying 10% coinsurance agreement 181,889 181,889 157,256 157,256 Separate accounts 2,063,899 2,063,899 2,440,303 2,440,303 Liabilities: Notes payable $ 374,585 $ 398,649 $ 374,532 $ 411,916 Surplus note 365,220 371,498 220,000 227,127 Separate accounts 2,063,899 2,063,899 2,440,303 2,440,303 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Reinsurance Disclosures [Abstract] | |
In-force Life Insurance | The following table represents the Company’s in-force life insurance at December 31, 2015 and 2014: December 31, 2015 December 31, 2014 (Dollars in thousands) Direct life insurance in force $ 696,884,429 $ 685,998,013 Amounts ceded to other companies (616,252,839 ) (607,218,906 ) Net life insurance in force $ 80,631,590 $ 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: December 31, 2015 December 31, 2014 Reinsurance receivable A.M. Best rating Reinsurance receivable A.M. Best rating (In thousands) Prime Reinsurance Company (1) $ 2,692,721 NR $ 2,645,011 NR SCOR Global Life Reinsurance Companies (2) 362,195 A 373,947 A Financial Reassurance Company 2010, Ltd. (1) 270,306 NR 320,718 NR Swiss Re Life & Health America Inc. (3) 254,461 A+ 260,734 A+ American Health and Life Insurance Company 176,790 B 175,755 A- Munich American Reassurance Company 101,466 A+ 100,846 A+ Korean Reinsurance Company 91,605 A 89,300 A RGA Reinsurance Company 81,217 A+ 78,143 A+ TOA Reinsurance Company 22,242 A+ 20,139 A+ Hannover Life Reassurance Company 20,650 A+ 18,694 A+ All other reinsurers 36,975 - 32,246 - Due from reinsurers $ 4,110,628 $ 4,115,533 NR – not rated (1) Reinsurers are affiliates of Citigroup. Amounts shown are net of their share of the reinsurance receivable from other reinsurers. (2) (3 ) Includes amounts ceded to Lincoln National Life Insurance and 100% retroceded to Swiss Re Life & Health America Inc. |
Deferred Policy Acquisition C38
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs Balance Roll Forward | The balances of and activity in DAC were as follows: Year ended December 31, 2015 2014 2013 (In thousands) DAC balance, beginning of period $ 1,351,180 $ 1,208,466 $ 1,066,422 Capitalization 339,639 303,543 283,341 Amortization (157,727 ) (144,378 ) (129,183 ) Foreign exchange translation and other (32,833 ) (16,451 ) (12,114 ) DAC balance, end of period $ 1,500,259 $ 1,351,180 $ 1,208,466 |
Separate Accounts (Tables)
Separate Accounts (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Separate Accounts Disclosure [Abstract] | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment | The following table represents the fair value of assets supporting separate accounts by major investment category: Year ended December 31, 2015 2014 (In thousands) Fixed income securities $ 932,934 $ 1,019,034 Equity securities 1,109,610 1,318,382 Cash and cash equivalents 24,003 104,983 Due to/from funds (2,817 ) (2,536 ) Other 169 440 Total separate accounts assets $ 2,063,899 $ 2,440,303 |
Insurance Reserves (Tables)
Insurance Reserves (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Insurance Reserves Disclosures [Abstract] | |
Schedule of Liability For Future Policy Benefits and Unpaid Claims | Changes in policy claims and other benefits payable were as follows: Year ended December 31, 2015 2014 2013 (In thousands) Policy claims and other benefits payable, beginning of period $ 245,829 $ 238,750 $ 243,145 Less reinsured policy claims and other benefits payable 264,049 248,185 269,279 Net balance, beginning of period (18,220 ) (9,435 ) (26,134 ) Incurred related to current year 138,139 129,869 147,639 Incurred related to prior years 212 674 (4,956 ) Total incurred 138,351 130,543 142,683 Claims paid related to current year, net of reinsured policy claims received (167,621 ) (155,357 ) (165,476 ) Reinsured policy claims received related to prior years, net of claims paid 23,661 21,881 39,989 Total paid (143,960 ) (133,476 ) (125,487 ) Sale of DBL - (5,047 ) - Foreign currency translation (1,017 ) (805 ) (497 ) Net balance, end of period (24,846 ) (18,220 ) (9,435 ) Add reinsured policy claims and other benefits payable 263,003 264,049 248,185 Balance, end of period $ 238,157 $ 245,829 $ 238,750 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Notes Payable. Notes payable consisted of the following: December 31, 2015 December 31, 2014 (Dollars in thousands) 4.75% Senior Notes, due July 15, 2022 $ 375,000 $ 375,000 Unamortized issuance discount on notes payable (415 ) (468 ) Total notes payable $ 374,585 $ 374,532 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | Income tax expense (benefit) from continuing operations consists of the following: Current Deferred Total (In thousands) Year ended December 31, 2015 Federal $ 46,175 $ 36,723 $ 82,898 Foreign 14,600 3,161 17,761 State and local 2,043 (1,592 ) 451 Total tax expense $ 62,818 $ 38,292 $ 101,110 Year ended December 31, 2014 Federal $ 44,356 $ 31,590 $ 75,946 Foreign 24,403 (4,826 ) 19,577 State and local 1,372 (1,007 ) 365 Total tax expense $ 70,131 $ 25,757 $ 95,888 Year ended December 31, 2013 Federal $ 33,798 $ 32,919 $ 66,717 Foreign 32,797 (14,410 ) 18,387 State and local 1,377 (176 ) 1,201 Total tax expense $ 67,972 $ 18,333 $ 86,305 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation for such difference follows: Year ended December 31, 2015 2014 2013 Amount Percentage Amount Percentage Amount Percentage (Dollars in thousands) Computed tax expense $ 101,843 35.0 % $ 96,503 35.0 % $ 85,752 35.0 % Difference between foreign statutory rate and U.S. statutory rate (5,531 ) (1.9 )% (6,271 ) (2.3 )% (5,909 ) (2.4 )% Residual U.S. income taxes on foreign earnings not permanently reinvested 3,810 1.3 % 3,067 1.1 % 2,819 1.2 % Other 988 0.3 % 2,589 1.0 % 3,643 1.4 % Total tax expense / effective rate $ 101,110 34.7 % $ 95,888 34.8 % $ 86,305 35.2 % |
Schedule of Deferred Tax Assets and Liabilities | The main components of deferred income tax assets and liabilities were as follows: December 31, 2015 2014 (In thousands) Deferred tax assets: Policy benefit reserves and unpaid policy claims $ 210,164 $ 216,768 Intangibles and tax goodwill 39,977 43,822 Future deductible liabilities 17,741 16,892 Share-based compensation 15,698 14,298 Other 8,962 11,546 Total deferred tax assets 292,542 303,326 Deferred tax liabilities: Deferred policy acquisition costs (319,250 ) (291,683 ) Investments (6,893 ) (28,909 ) Unremitted earnings on foreign subsidiaries (2,297 ) (2,602 ) Reinsurance deposit asset (63,661 ) (55,040 ) Other (11,978 ) (14,463 ) Total deferred tax liabilities (404,079 ) (392,697 ) Net deferred tax liabilities $ (111,537 ) $ (89,371 ) |
Summary of Income Tax Contingencies | A reconciliation of the change in the unrecognized income tax benefit for the years ended December 31, 2015 and 2014 is as follows: December 31, 2015 2014 (In thousands) Unrecognized tax benefits, beginning of period $ 16,014 $ 16,607 Change in prior period unrecognized tax benefits (146 ) (16 ) Change in current period unrecognized tax benefits 2,191 2,102 Reductions as a result of a lapse in statute of limitations (4,120 ) (2,679 ) Unrecognized tax benefits, end of period $ 13,939 $ 16,014 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 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. Year ended December 31, 2015 2014 2013 (In thousands) Common stock, beginning of period 52,169 54,834 56,374 Shares of restricted common stock issued - - 280 Shares issued for stock options exercised 89 4 - Shares of common stock issued upon lapse of restricted stock units ("RSUs") 574 502 1,122 Common stock retired (4,535 ) (3,171 ) (2,942 ) Common stock, end of period 48,297 52,169 54,834 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | The calculation of basic and diluted EPS follows. Year ended December 31, 2015 2014 2013 (In thousands, except per-share amounts) Basic EPS: Numerator (continuing operations): Income from continuing operations $ 189,871 $ 179,834 $ 158,701 Income attributable to unvested participating securities (1,572 ) (2,038 ) (2,605 ) Income from continuing operations used in calculating basic EPS $ 188,299 $ 177,796 $ 156,096 Numerator (discontinued operations): Income from discontinued operations $ - $ 1,578 $ 4,024 Income attributable to unvested participating securities - (18 ) (66 ) Income from discontinued operations used in calculating basic EPS $ - $ 1,560 $ 3,958 Denominator: Weighted-average vested shares 50,881 54,567 55,834 Basic EPS from continuing operations $ 3.70 $ 3.26 $ 2.80 Basic EPS from discontinued operations $ - $ 0.03 $ 0.07 Diluted EPS: Numerator (continuing operations): Income from continuing operations $ 189,871 $ 179,834 $ 158,701 Income attributable to unvested participating securities (1,571 ) (2,037 ) (2,575 ) Income from continuing operations used in calculating diluted EPS $ 188,300 $ 177,797 $ 156,126 Numerator (discontinued operations): Income from discontinued operations $ - $ 1,578 $ 4,024 Income attributable to unvested participating securities - (18 ) (65 ) Income from discontinued operations used in calculating diluted EPS $ - $ 1,560 $ 3,959 Denominator: Weighted-average vested shares 50,881 54,567 55,834 Dilutive effect of incremental shares if issued for warrants outstanding - - 787 Dilutive effect of incremental shares to be issued for equity awards 32 31 4 Weighted-average shares used in calculating diluted EPS 50,913 54,598 56,625 Diluted EPS from continuing operations $ 3.70 $ 3.26 $ 2.76 Diluted EPS from discontinued operations $ - $ 0.03 $ 0.07 |
Share-Based Transactions (Table
Share-Based Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Compensation Cost and Tax Benefits for Share-based Payment Arrangements Management and Director Equity Awards | In connection with our granting of management and director restricted stock and RSU awards, we recognized expense and tax benefit offsets as follows: Year ended December 31, 2015 2014 2013 (In thousands) Total management and director restricted stock and RSU awards $ 13,839 $ 15,726 $ 13,101 Tax benefit associated with total management and director restricted stock and RSU award expense 4,668 5,322 3,936 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes management and director restricted stock and RSU activity during the years ended December 31, 2015, 2014, and 2013. Shares Weighted-average measurement-date fair value per share (Shares in thousands) Unvested employee restricted stock and RSUs, December 31, 2012 1,507 $ 19.72 Granted 322 32.76 Forfeited (9 ) 28.72 Vested (1,098 ) 17.59 Unvested employee restricted stock and RSUs, December 31, 2013 722 28.67 Granted 279 41.31 Forfeited (13 ) 30.49 Vested (408 ) 28.53 Unvested employee restricted stock and RSUs, December 31, 2014 580 34.67 Granted 246 52.75 Forfeited (8 ) 41.98 Vested (428 ) 35.43 Unvested employee restricted stock and RSUs, December 31, 2015 390 45.07 |
Schedule of Share-based Compensation, Stock Options, Cost and Benefit | Compensation expense and related tax benefits recognized for stock options awards were as follows: Year ended December 31, 2015 2014 2013 (In thousands) Expense recognized for stock option awards $ 643 $ 1,803 $ 323 Tax benefit recognized for stock option awards 225 631 113 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following assumptions were used to estimate the fair value of stock options granted: Year ended December 31, 2015 2014 2013 Expected volatility 24.00 % 33.00 % 30.00 % Expected per share dividend yield 1.20 % 1.17 % 1.35 % Risk-free interest rate 1.61 % 1.81 % 1.06 % Expected term of options 5 years 6 years 6 years Fair value per option $ 11.07 $ 12.54 $ 8.44 |
Summary of Activity Related to Stock Options Outstanding and Exercisable | The following table summarizes activity related to stock options outstanding and exercisable during the years ended December 31, 2015 and 2014. Outstanding Exercisable Number of shares Weighted average exercise price Number of shares Weighted average exercise price (Shares in thousands) Outstanding at December 31, 2012 - n/a — n/a Granted 134 $ 32.63 Exercised - - Outstanding at December 31, 2013 134 32.63 — n/a Granted 116 41.20 Exercised (4 ) 32.63 Outstanding at December 31, 2014 246 36.67 40 $ 32.63 Granted 46 53.50 Exercised (89 ) 34.89 Outstanding at December 31, 2015 203 41.28 35 36.38 Range of granted option exercise prices outstanding at December 31, 2015: $32.63 (average term remaining - 7.2 years) 64 $ 32.63 20 $ 32.63 $41.20 (average term remaining - 8.2 years) 93 41.20 15 41.20 $53.50 (average term remaining - 9.1 years) 46 53.50 — n/a |
Summary of Intrinsic Values of Stock Options | A summary of the intrinsic values of our stock options is as follows: December 31, 2015 (In thousands) Aggregate intrinsic value of exercisable stock options $ 378 Aggregate intrinsic value of stock options expected to vest 830 Aggregate intrinsic value of stock options outstanding $ 1,208 |
Summary of Intrinsic Value, Tax Benefit Realized and Value of Shares Withheld Related to Option Exercise Activity | The intrinsic value, tax benefit realized and value of shares withheld related to option exercise activity are summarized as follows: Year ended December 31, 2015 2014 2013 (In thousands) Intrinsic value of options exercised $ 1,620 $ 53 $ - Tax benefit realized from the options exercised 567 19 - Value of issued shares withheld to satisfy option exercise price 2,966 142 - |
Schedule of Share-based Goods and Nonemployee Services Transaction by Supplier | The following table summarizes non-employee RSU activity during the years ended December 31, 2015, 2014, and 2013. Shares Weighted-average measurement-date fair value per share (Shares in thousands) Unvested non-employee RSUs, December 31, 2012 132 $ 25.42 Granted 504 32.14 Vested (532 ) 29.64 Unvested non-employee RSUs, December 31, 2013 104 36.44 Granted 295 45.08 Vested (326 ) 41.23 Unvested non-employee RSUs, December 31, 2014 73 49.98 Granted 326 42.79 Vested (326 ) 44.39 Unvested non-employee RSUs, December 31, 2015 73 42.83 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | The following table presents the assumptions used in valuing quarterly RSU grants to agents: Year ended December 31, 2015 2014 2013 Expected volatility 18% to 35% 17% to 31% 20% to 35% Quarterly dividends expected $ 0.16 $ 0.12 $ 0.11 Risk-free interest rates Less than 2% Less than 2% Less than 2% |
Schedule of Compensation Cost and Tax Benefits for Share Based Payment Arrangements Nonemployee Equity Awards | Details on the granting and valuation of these awards follow: Year ended December 31, 2015 2014 2013 (Dollars in thousands, except per-share amounts) Total quarterly non-employee RSUs granted 325,744 294,985 503,737 Measurement date per-share fair value of awards $40.98 to $46.71 $42.96 to $49.98 $26.39 to $36.44 Illiquidity discounts 8% to 9% 8% to 9% 13% to 18% Quarterly incentive awards expense recognized currently $ 467 $ 453 $ 364 Quarterly incentive awards expense deferred 13,423 13,598 15,818 Concurrent tax benefit of deferred expense 4,454 4,500 5,001 |
Statutory Accounting and Divi46
Statutory Accounting and Dividend Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Statutory Accounting Practices Disclosure | Primerica Life’s statutory capital and surplus and statutory unassigned surplus at December 31, 2015 and 2014 was as follows: December 31, 2015 December 31, 2014 (In thousands) Statutory capital and surplus $ 560,936 $ 498,992 Statutory unassigned surplus 48,715 9,773 |
Commitments and Contingent Li47
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2015, the minimum aggregate rental commitments for operating leases were as follows: December 31, 2015 (In thousands) 2016 $ 6,724 2017 6,748 2018 6,108 2019 5,723 2020 5,358 Thereafter 40,375 Total minimum rental commitments for operating leases $ 71,036 |
Unaudited Quarterly Financial48
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Unaudited Quarterly Financial Data | Financial information for the quarters presented was prepared on a consolidated basis. Quarter ended Quarter ended Quarter ended Quarter ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 (In thousands, except per-share amounts) Direct premiums $ 577,458 $ 588,248 $ 587,882 $ 591,856 Ceded premiums (397,540 ) (406,854 ) (393,987 ) (396,838 ) Net premiums 179,918 181,394 193,895 195,018 Commissions and fees 132,835 139,150 132,368 132,794 Net investment income 21,173 19,075 18,715 17,546 Realized investment gains (losses), including OTTI 1,284 597 (259 ) (3,360 ) Other, net 9,635 10,301 11,105 12,131 Total revenues 344,845 350,517 355,824 354,129 Total benefits and expenses 278,036 273,692 280,871 281,735 Income from continuing operations before income taxes 66,809 76,825 74,953 72,394 Income taxes 23,408 27,652 25,603 24,445 Income from continuing operations 43,401 49,173 49,350 47,949 Income from discontinued operations, net of income taxes - - - - Net income $ 43,401 $ 49,173 $ 49,350 $ 47,949 Basic earnings per share: Continuing operations $ 0.82 $ 0.94 $ 0.98 $ 0.97 Discontinued operations - - - - Basic earnings per share $ 0.82 $ 0.94 $ 0.98 $ 0.97 Diluted earnings per share: Continuing operations $ 0.82 $ 0.94 $ 0.98 $ 0.97 Discontinued operations - - - - Diluted earnings per share $ 0.82 $ 0.94 $ 0.98 $ 0.97 Quarter ended Quarter ended Quarter ended Quarter ended March 31, 2014 June 30, 2014 September 30, 2014 December 31, 2014 (In thousands, except per-share amounts) Direct premiums $ 568,205 $ 576,740 $ 577,482 $ 578,905 Ceded premiums (402,715 ) (410,546 ) (402,198 ) (401,359 ) Net premiums 165,490 166,194 175,284 177,546 Commissions and fees 126,933 132,039 132,928 135,267 Net investment income 21,599 21,681 20,465 22,728 Realized investment gains (losses), including OTTI 263 831 (281 ) (1,074 ) Other, net 9,712 9,981 10,445 10,596 Total revenues 323,997 330,726 338,841 345,063 Total benefits and expenses 257,165 254,986 274,821 275,933 Income from continuing operations before income taxes 66,832 75,740 64,020 69,130 Income taxes 23,347 26,469 22,407 23,664 Income from continuing operations 43,485 49,271 41,613 45,466 Income (loss) from discontinued operations, net of income taxes 1,595 - (18 ) - Net income $ 45,080 $ 49,271 $ 41,595 $ 45,466 Basic earnings per share: Continuing operations $ 0.78 $ 0.89 $ 0.75 $ 0.84 Discontinued operations 0.03 - - - Basic earnings per share $ 0.81 $ 0.89 $ 0.75 $ 0.84 Diluted earnings per share: Continuing operations $ 0.78 $ 0.89 $ 0.75 $ 0.84 Discontinued operations 0.03 - - - Diluted earnings per share $ 0.81 $ 0.89 $ 0.75 $ 0.84 Quarterly amounts may not agree in total to the corresponding annual amounts due to rounding. |
Description of Business, Basi49
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies - Components of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Foreign currency translation adjustments: | |||
Change in unrealized foreign currency translation gains (losses) before income tax expense (benefit) | $ (41,929) | $ (20,527) | $ (13,695) |
Income tax expense (benefit) on unrealized foreign currency translation gains (losses) | (447) | (234) | (182) |
Change in unrealized foreign currency translation gains (losses), net of income taxes | (41,482) | (20,293) | (13,513) |
Unrealized investment gains (losses): | |||
Change in unrealized holding gains (losses) on investment securities | (65,920) | 11,228 | (68,769) |
Change in net unrealized investment gains (losses) not-other-than-temporarily impaired, income tax expense (benefit) | (23,074) | 3,930 | (24,069) |
Change in unrealized holding gains (losses) on AFS securities arising during period, net of income taxes | (42,846) | 7,298 | (44,700) |
Reclassification adjustment for realized investment (gains) losses included in net income | 1,596 | 794 | (4,909) |
Income tax (expense) benefits on (gains) losses reclassified from accumulated OCI to net income | 560 | 278 | (1,718) |
Reclassification from accumulated OCI to net income for (gains) losses realized on AFS securities, net of income taxes | 1,036 | 516 | (3,191) |
Change in unrealized gains (losses) on AFS securities, net of income taxes and reclassification adjustment | $ (41,810) | $ 7,814 | $ (47,891) |
Description of Business, Basi50
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Indefinite-lived intangible asset | $ 45,275 | $ 45,275 |
Amortizing intangible asset, Gross carrying value | 84,871 | 84,871 |
Amortizing intangible asset, Accumulated amortization | (71,828) | (68,426) |
Amortizing intangible asset, Net carrying amount | 13,043 | 16,445 |
Total intangible assets, Gross carrying amount | 130,146 | 130,146 |
Total intangible assets, Net carrying amount | $ 58,318 | $ 61,720 |
Description of Business, Basi51
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies [Line Items] | |||
Depreciation expense | $ 7.6 | $ 7 | $ 7.3 |
Guarantee Maturity Value as Percentage of Net Premiums | 75.00% | ||
Debt issuance cost | $ 2.8 | ||
Minimum [Member] | |||
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies [Line Items] | |||
Long-Duration Contracts, Assumptions by Product and Guarantee, Estimated Investment Yield | 3.50% | 3.50% | |
Maximum [Member] | |||
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies [Line Items] | |||
Long-Duration Contracts, Assumptions by Product and Guarantee, Estimated Investment Yield | 7.00% | 7.00% | |
Noncompete Agreements [Member] | |||
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies [Line Items] | |||
Amortization of Intangible Assets | $ 3.4 | $ 3.4 | $ 3.4 |
Finite-Lived Intangible Assets, Annual Amortization Expense, Remainder of Amortization Period | $ 3.4 | ||
Finite-Lived Intangible Asset, Useful Life | 24 years |
Description of Business, Basi52
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies - Property, Plant and Equipment Useful Life (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Data Processing Equipment and Software [Member] | Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Property and equipment, Useful life | 3 years |
Data Processing Equipment and Software [Member] | Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Property and equipment, Useful life | 7 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Property and equipment, Useful life | 15 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Property and equipment, Useful life | 5 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Property and equipment, Useful life | 15 years |
Description of Business, Basi53
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies - Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property Plant And Equipment [Abstract] | ||
Data processing equipment and software | $ 60,414 | $ 50,956 |
Leasehold improvements | 13,947 | 13,910 |
Other, principally furniture and equipment | 27,065 | 26,763 |
Total property, plant and equipment, Gross | 101,426 | 91,629 |
Accumulated depreciation | (72,017) | (65,166) |
Net property and equipment | $ 29,409 | $ 26,463 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2015 | |
Discontinued Operations And Disposal Groups [Abstract] | ||
Proceeds from divestiture of businesses | $ 3,000,000 | |
Discontinued operation, gain (loss) from disposal of discontinued operation, before income tax | 2,400,000 | |
Discontinued operation, assets related to DBL | 0 | $ 0 |
Discontinued operation, liabilities related to DBL | $ 0 | $ 0 |
Discontinued Operations - Resul
Discontinued Operations - Results of Operations and Carrying Values Of Assets And Liabilities Related To DBL (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Discontinued Operations And Disposal Groups [Abstract] | ||||
Total revenues from discontinued operations | $ 36,878 | |||
Income from discontinued operations before income taxes | $ 2,427 | 6,192 | ||
Provision for income taxes | 849 | 2,168 | ||
Income from discontinued operations, net income taxes | $ (18) | $ 1,595 | $ 1,578 | $ 4,024 |
Segment and Geographical Info56
Segment and Geographical Information - Narrative (Details) $ in Billions | 12 Months Ended | |
Dec. 31, 2015Segment | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | Segment | 2 | |
Market Return on Deposit Asset Underlying 10% Insurance Agreement [Member] | Corporate and Other Distributed Products Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Increase, decrease in insurance assets | $ | $ 1.7 | |
Vidalia Re Coinsurance Agreement [Member] | ||
Segment Reporting Information [Line Items] | ||
Coinsurance percent | 10.00% |
Segment and Geographical Info57
Segment and Geographical Information - Assets and Continuing Operations by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | $ 354,129 | $ 355,824 | $ 350,517 | $ 344,845 | $ 345,063 | $ 338,841 | $ 330,726 | $ 323,997 | $ 1,405,314 | $ 1,338,624 | $ 1,228,998 | |
Income (loss) from continuing operations before income taxes | 290,981 | 275,722 | 245,006 | |||||||||
Assets | 10,612,119 | 10,737,595 | 10,612,119 | 10,737,595 | 10,329,744 | |||||||
Term Life Insurance Segment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 763,948 | 692,560 | 627,637 | |||||||||
Income (loss) from continuing operations before income taxes | 173,209 | 152,101 | 148,278 | |||||||||
Assets | 5,639,497 | 5,472,415 | 5,639,497 | 5,472,415 | 5,253,756 | |||||||
Investment and Savings Products Segment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 522,220 | 512,073 | 457,138 | |||||||||
Income (loss) from continuing operations before income taxes | 146,083 | 146,017 | 105,149 | |||||||||
Assets | [1] | 2,157,548 | 2,545,372 | 2,157,548 | 2,545,372 | 2,609,008 | ||||||
Corporate and Other Distributed Products Segment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 119,146 | 133,991 | 144,223 | |||||||||
Income (loss) from continuing operations before income taxes | (28,311) | (22,396) | (8,421) | |||||||||
Assets | $ 2,815,074 | $ 2,719,808 | $ 2,815,074 | $ 2,719,808 | $ 2,466,980 | |||||||
[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 $93.8 million, $105.5 million, and $105.8 million as of December 31, 2015, 2014, and 2013, respectively. |
Segment and Geographical Info58
Segment and Geographical Information - Assets and Continuing Operations by Segment (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Investment and Savings Products Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets, excluding separate account assets | $ 93.8 | $ 105.5 | $ 105.8 |
Segment and Geographical Info59
Segment and Geographical Information - Reclassification of Net Investment Income between Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
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 | $ (65,326) | $ (65,767) |
Corporate and Other Distributed Products 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 | $ 65,326 | $ 65,767 |
Segment and Geographical Info60
Segment and Geographical Information - Reclassification Of Interest Expense Between Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
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 | $ (16,396) | $ (16,846) |
Corporate and Other Distributed Products Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Interest expense reclassified from the Term Life Insurance segment to the Corporate and Other Distributed Products segment | $ 16,396 | $ 16,846 |
Segment and Geographical Info61
Segment and Geographical Information - Long Lived Assets and Continuing Operations by Country (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | $ 354,129 | $ 355,824 | $ 350,517 | $ 344,845 | $ 345,063 | $ 338,841 | $ 330,726 | $ 323,997 | $ 1,405,314 | $ 1,338,624 | $ 1,228,998 |
Income (loss) from continuing operations before income taxes | 290,981 | 275,722 | 245,006 | ||||||||
Long-lived assets | 29,408 | 26,463 | 29,408 | 26,463 | 25,050 | ||||||
UNITED STATES | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 1,173,556 | 1,095,888 | 998,186 | ||||||||
Income (loss) from continuing operations before income taxes | 225,920 | 203,120 | 177,312 | ||||||||
Long-lived assets | 28,621 | 25,897 | 28,621 | 25,897 | 24,413 | ||||||
CANADA | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 231,758 | 242,736 | 230,812 | ||||||||
Income (loss) from continuing operations before income taxes | 65,061 | 72,602 | 67,694 | ||||||||
Long-lived assets | $ 787 | $ 566 | $ 787 | $ 566 | $ 637 |
Investments - Schedule of AFS S
Investments - Schedule of AFS Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | $ 1,690,043 | [1] | $ 1,655,221 | [2] |
Available-for-sale debt securities gross unrealized gain | 68,467 | [1] | 108,886 | [2] |
Available-for-sale debt securities, gross unrealized loss | (27,051) | [1] | (4,987) | [2] |
Available-for-sale debt securities, at fair value | 1,731,459 | [1] | 1,759,120 | [2] |
Available-for-sale equity securities, cost | 39,969 | 43,703 | ||
Available-for-sale equity securities, gross unrealized gain | 8,252 | 10,717 | ||
Available-for-sale equity securities, gross unrealized loss | (382) | (1,030) | ||
Available-for-sale equity securities, at fair value | 47,839 | 53,390 | ||
Available-for-sale securities, amortized cost basis | 1,730,012 | 1,698,924 | ||
Available-for-sale securities, gross unrealized gain | 76,719 | 119,603 | ||
Available-for-sale securities, gross unrealized loss | (27,433) | (6,017) | ||
Available-for-sale securities, fair value | 1,779,298 | 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 | 20,233 | 15,107 | ||
Available-for-sale debt securities gross unrealized gain | 448 | 557 | ||
Available-for-sale debt securities, gross unrealized loss | (22) | (17) | ||
Available-for-sale debt securities, at fair value | 20,659 | 15,647 | ||
Foreign Government [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 114,656 | 113,931 | ||
Available-for-sale debt securities gross unrealized gain | 7,082 | 8,885 | ||
Available-for-sale debt securities, gross unrealized loss | (1,522) | (319) | ||
Available-for-sale debt securities, at fair value | 120,216 | 122,497 | ||
States and Political Subdivisions [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 38,995 | 38,163 | ||
Available-for-sale debt securities gross unrealized gain | 2,111 | 2,719 | ||
Available-for-sale debt securities, gross unrealized loss | (541) | (188) | ||
Available-for-sale debt securities, at fair value | 40,565 | 40,694 | ||
Corporates [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 1,276,965 | 1,236,264 | ||
Available-for-sale debt securities gross unrealized gain | 49,008 | 83,675 | ||
Available-for-sale debt securities, gross unrealized loss | (24,211) | (4,071) | ||
Available-for-sale debt securities, at fair value | 1,301,762 | 1,315,868 | ||
Asset-backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 239,194 | 251,756 | ||
Available-for-sale debt securities gross unrealized gain | 9,818 | 13,050 | ||
Available-for-sale debt securities, gross unrealized loss | (755) | (392) | ||
Available-for-sale debt securities, at fair value | $ 248,257 | $ 264,414 | ||
[1] | Includes approximately $0.1 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. | |||
[2] | Includes approximately $0.7 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. |
Investments - Schedule of AFS63
Investments - Schedule of AFS Securities (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Net unrealized foreign currency translation losses | $ 12.3 | |
Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
OTTI losses, investments, portion in other comprehensive income (loss) | $ 0.1 | $ 0.7 |
Investments - Fixed-maturity Se
Investments - Fixed-maturity Securities Classified by Maturity Date (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | [2] | |
Available-for-sale Securities, Debt Maturities [Abstract] | ||||
Due in one year or less, amortized cost | $ 124,507 | |||
Due after one year through five years, amortized cost | 628,560 | |||
Due after five years through 10 years, amortized cost | 648,916 | |||
Due after 10 years, amortized cost | 48,866 | |||
Total fixed-maturity securities with single maturity dates, amortized cost | 1,450,849 | |||
Mortgage and asset-backed securities, amortized cost | 239,194 | |||
Available-for-sale debt securities, amortized cost basis | 1,690,043 | [1] | $ 1,655,221 | |
Due in one year or less, fair value | 125,109 | |||
Due after one year through five years, fair value | 659,250 | |||
Due after five years through 10 years, fair value | 646,343 | |||
Due after 10 years, fair value | 52,500 | |||
Total fixed-maturity securities with single maturity dates, fair value | 1,483,202 | |||
Mortgage and asset-backed securities, fair value | 248,257 | |||
Available-for-sale debt securities, at fair value | $ 1,731,459 | [1] | $ 1,759,120 | |
[1] | Includes approximately $0.1 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. | |||
[2] | Includes approximately $0.7 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. |
Investments - Net Effect on Sto
Investments - Net Effect on Stockholders' Equity of Unrealized Gains and Losses on AFS Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax [Abstract] | ||
Net unrealized investment gains including OTTI, Fixed-maturity and Equity securities | $ 49,286 | $ 113,586 |
Net unrealized investment gains including OTTI, currency swaps | 24 | |
OTTI | 109 | 710 |
Net unrealized investment gains excluding OTTI | 49,395 | 114,320 |
Less deferred income taxes | (17,288) | (40,012) |
Net unrealized investment gains excluding OTTI, net of tax | $ 32,107 | $ 74,308 |
Investments - Fixed-maturity 66
Investments - Fixed-maturity Securities Classified as Trading - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | $ 5,358 | $ 7,711 |
Fixed-maturity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | $ 5,400 | $ 7,700 |
Investments - Held-to-maturity
Investments - Held-to-maturity Security - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Schedule Of Held To Maturity Securities [Line Items] | |
Debt instrument, interest rate, stated percentage | 4.75% |
Held-to-maturity debt security estimated unrealized holding gain | $ 6.5 |
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 | Dec. 31, 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 | Dec. 31, 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 | $ 71.5 | $ 50.2 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross investment income, operating | $ 94,456 | $ 94,821 | $ 93,619 | ||||||||
Investment expenses | (4,899) | (4,866) | (4,867) | ||||||||
Investment income net of investment expenses | 89,557 | 89,955 | 88,752 | ||||||||
Interest expense on surplus note | (13,048) | (3,482) | |||||||||
Net investment income | $ 17,546 | $ 18,715 | $ 19,075 | $ 21,173 | $ 22,728 | $ 20,465 | $ 21,681 | $ 21,599 | 76,509 | 86,473 | 88,752 |
Equity Securities [Member] | |||||||||||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross investment income, operating | 2,059 | 1,862 | 1,186 | ||||||||
Policy Loans and Other Invested Assets [Member] | |||||||||||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross investment income, operating | 1,368 | 1,448 | 1,363 | ||||||||
Cash and Cash Equivalents [Member] | |||||||||||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross investment income, operating | 228 | 247 | 272 | ||||||||
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 | 482 | 3,095 | 938 | ||||||||
Available-for-Sale [Member] | Fixed-maturity Securities [Member] | |||||||||||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross investment income, operating | 77,271 | 84,687 | $ 89,860 | ||||||||
Held-to-Maturity [Member] | Fixed-maturity Securities [Member] | |||||||||||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross investment income, operating | $ 13,048 | $ 3,482 |
Investments - Schedule of Net R
Investments - Schedule of Net Realized Investment Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Realized Investment Gains Losses [Abstract] | |||||||||||
Gross gains from sales | $ 5,762 | $ 3,687 | $ 6,734 | ||||||||
Gross losses from sales | (465) | (436) | (1,209) | ||||||||
OTTI losses | (6,893) | (4,045) | (616) | ||||||||
Gains (losses) from bifurcated options | (142) | 533 | 1,337 | ||||||||
Realized investment gains (losses), including other-than- temporary impairment losses | $ (3,360) | $ (259) | $ 597 | $ 1,284 | $ (1,074) | $ (281) | $ 831 | $ 263 | $ (1,738) | $ (261) | $ 6,246 |
Investments - AFS Securities wi
Investments - AFS Securities with Cost Basis in Excess of Fair Value - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Investments Debt And Equity Securities [Abstract] | ||
AFS fixed-maturity and equity securities with cost basis in excess of fair value, cost basis | $ 626 | $ 242 |
Investments - Schedule of Secur
Investments - Schedule of Securities in Unrealized Loss Position (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 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 | $ 549,243 | $ 185,388 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (19,294) | (3,955) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 49,328 | 50,590 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (8,139) | (2,062) |
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 | 3,652 | 4,900 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (287) | $ (833) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 17 | 13 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 3,209 | $ 2,303 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (95) | $ (197) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 8 | 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 | $ 545,591 | $ 180,488 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (19,007) | (3,122) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 46,119 | 48,287 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (8,044) | (1,865) |
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 | 13,651 | 7,201 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (22) | $ (1) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 7 | 2 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 680 | |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (16) | |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 1 | |
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 | $ 23,572 | $ 4,753 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (829) | $ (169) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 20 | 6 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 2,396 | $ 3,438 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (693) | $ (150) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 3 | 3 |
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 | $ 2,729 | $ 1,694 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (44) | $ (4) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 6 | 3 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 878 | $ 2,720 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (497) | $ (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 | $ 413,131 | $ 117,249 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (17,481) | $ (2,839) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 393 | 129 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 34,624 | $ 24,602 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (6,730) | $ (1,232) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 54 | 45 |
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 | $ 92,508 | $ 49,591 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (631) | $ (109) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 81 | 43 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 8,221 | $ 16,847 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (124) | $ (283) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 15 | 20 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of AFS Fixed-maturity Securities in Default (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments Debt And Equity Securities [Abstract] | ||
Available-for-sale fixed-maturity securities in default, amortized cost | $ 138 | $ 144 |
Available-for-sale fixed-maturity securities in default, fair value | $ 262 | $ 611 |
Investments - Impairment Charge
Investments - Impairment Charges in Earnings on AFS Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Impairment charges recognized in earnings | $ 6,893 | $ 4,045 | $ 616 |
Equity Securities [Member] | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Impairment charges recognized in earnings | 1,756 | 389 | 7 |
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 | 5,108 | $ 3,656 | $ 609 |
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 | $ 29 |
Investments - Schedule of Net I
Investments - Schedule of Net Impairment Losses Recognized in Earnings for AFS Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Total other-than-temporary impairment losses | $ 6,893 | $ 4,045 | $ 1,095 |
Other-than-temporary impairment losses, investments, portion recognized in earnings, net | 6,893 | 4,045 | 616 |
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 | 706 | 1,579 | 832 |
Other-than-temporary impairment losses, portion in accumulated other comprehensive income (loss) | (479) | ||
Other-than-temporary impairment losses, investments, portion recognized in earnings, net | 706 | 1,579 | 353 |
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 | $ 6,187 | $ 2,466 | $ 263 |
Investments - Rollforward of OT
Investments - Rollforward of OTTI Recognized in Net Income, Fixed-maturity Securities Still Held (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Other than Temporary Impairment, OTTI Recognized in Earnings [Roll Forward] | ||
Cumulative other-than-temporary impairment, net income for securities still held, beginning balance | $ 9,550 | $ 7,970 |
Additions for other-than-temporary impaired securities where no OTTI were recognized prior to the beginning of the period | 2,340 | 3,654 |
Additions for other-than-temporary impaired securities where OTTI have been recognized prior to the beginning of the period | 2,797 | 2 |
Reductions due to sales, maturities, calls, amortization or increases in cash flows expected to be collected over the remaining life of credit impaired securities | (1,554) | (902) |
Reductions for exchanges of securities previously impaired | (1,277) | (1,174) |
Cumulative other-than-temporary impairment, credit losses for securities still held, ending balance | $ 11,856 | $ 9,550 |
Investments - Impairment Losses
Investments - Impairment Losses on Held-to-maturity Security - Narrative (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Investments Debt And Equity Securities [Abstract] | |
Impairment losses held-to-maturity security | $ 0 |
Investments - Derivative - Narr
Investments - Derivative - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Aggregate fair value of embedded conversion options | $ 5.4 | $ 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 | Dec. 31, 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 Instr81
Fair Value of Financial Instruments - Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | $ 1,779,298 | $ 1,812,510 |
Trading securities | $ 5,358 | 7,711 |
Fair value assumptions, percentage of securities assessed by third-party pricing service | 95.00% | |
Fair Value, Recurring Measurements [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Trading securities | $ 5,358 | 7,711 |
Assets, fair value disclosure, recurring | 3,848,555 | 4,260,524 |
Liabilities, fair value disclosure, recurring | 2,063,899 | 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 | 43,487 | 49,273 |
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Trading securities | 5,358 | 7,711 |
Assets, fair value disclosure, recurring | 3,804,285 | 4,210,086 |
Liabilities, fair value disclosure, recurring | 2,063,899 | 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 | 783 | 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 | 20,659 | 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 | 20,659 | 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 | 120,216 | 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 | 120,216 | 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 | 40,565 | 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 | 40,565 | 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 | 1,301,762 | 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 | 2,146 | 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 | 1,299,613 | 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 | 248,257 | 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 | 247,525 | 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 | 732 | 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 | 1,731,459 | 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 | 2,146 | 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 | 1,728,578 | 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 | 735 | 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 | 47,839 | 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 | 41,341 | 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 | 6,450 | 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 | 2,063,899 | 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 | 2,063,899 | 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 | 2,063,899 | 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 | $ 2,063,899 | $ 2,440,303 |
Fair Value of Financial Instr82
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 | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Level 3 assets, beginning of period | $ 1,165 | $ 2,288 |
Net unrealized gains (losses) included in other comprehensive income | (26) | (153) |
Realized gains (losses) and accretion (amortization) recognized in earnings, including OTTI | 4 | 439 |
Settlements | (168) | (1,409) |
Transfers out of Level 3 | (192) | |
Level 3 assets, end of period | $ 783 | $ 1,165 |
Fair Value of Financial Instr83
Fair Value of Financial Instruments - Narrative (Details) $ in Millions | Dec. 31, 2015USD ($) |
Fair Value Disclosures [Abstract] | |
Fair value security, level 1 to level 2 transfers, amount | $ 1 |
Fair Value of Financial Instr84
Fair Value of Financial Instruments - Carrying Values and Estimated Fair Values for Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value | $ 1,779,298 | $ 1,812,510 |
Fixed-maturity securities held to maturity, fair value | 371,742 | 228,809 |
Trading securities | 5,358 | 7,711 |
Surplus note | 365,220 | 220,000 |
Fixed-maturity securities held to maturity | 365,220 | 220,000 |
Fair Value, Recurring Measurements [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Trading securities | 5,358 | 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 | 5,358 | 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 | 2,063,899 | 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 | 2,063,899 | 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 | 1,731,459 | 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 | 47,839 | 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 | 28,627 | 28,095 |
Surplus note | 365,220 | 220,000 |
Fixed-maturity securities held to maturity | 365,220 | 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 | 181,889 | 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 | 5,358 | 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 | 2,063,899 | 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 | 374,585 | 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 | 1,731,459 | 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 | 47,839 | 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 | 371,742 | 228,809 |
Policy loans | 28,627 | 28,095 |
Surplus note | 371,498 | 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 | 181,889 | 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 | 5,358 | 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 | 2,063,899 | 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 | 398,649 | 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 | 2,063,899 | 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 | 2,063,899 | 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 | 2,063,899 | 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 | $ 2,063,899 | $ 2,440,303 |
Fair Value of Financial Instr85
Fair Value of Financial Instruments - Carrying Values and Estimated Fair Values for Financial Instruments (Parenthetical) (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Percentage of coinsurance costs | 10.00% | 10.00% |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) - USD ($) | Mar. 30, 2010 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Reinsurance Retention Policy [Line Items] | ||||
Amount of life insurance retained on the life of one person | $ 1,000,000 | |||
Reinsurance, loss on uncollectible accounts in period, amount | 0 | $ 0 | $ 0 | |
Reinsurance recoverable on paid losses | 25,500,000 | 26,000,000 | ||
Deposit asset underlying 10% coinsurance agreement | $ 181,900,000 | $ 157,300,000 | ||
Percentage of finance charge for statutory reserves | 2.00% | |||
IPO coinsurance agreements [Member] | Minimum [Member] | ||||
Reinsurance Retention Policy [Line Items] | ||||
Percentage of risks and rewards of term life insurance policies in force | 80.00% | |||
IPO coinsurance agreements [Member] | Maximum [Member] | ||||
Reinsurance Retention Policy [Line Items] | ||||
Percentage of risks and rewards of term life insurance policies in force | 90.00% |
Reinsurance - In-force Life Ins
Reinsurance - In-force Life Insurance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reinsurance Disclosures [Abstract] | |||
Direct life insurance in force | $ 696,884,429 | $ 685,998,013 | $ 679,337,825 |
Amounts ceded to other companies | (616,252,839) | (607,218,906) | (601,309,340) |
Net life insurance in force | $ 80,631,590 | $ 78,779,107 | $ 78,028,485 |
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 | Dec. 31, 2015 | Dec. 31, 2014 | |
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | $ 4,110,628 | $ 4,115,533 | |
Prime Reinsurance Company [Member] | External credit rating, not rated [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | [1] | 2,692,721 | 2,645,011 |
SCOR Global Life Reinsurance Companies [Member] | AM Best, A Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | [2] | 362,195 | 373,947 |
Financial Reassurance Company 2010, Ltd. [Member] | External credit rating, not rated [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | [1] | 270,306 | 320,718 |
Swiss Re Life & Health America Inc. [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | [3] | 254,461 | 260,734 |
American Health and Life Insurance Company [Member] | AM Best, B Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | 176,790 | ||
American Health and Life Insurance Company [Member] | AM Best, A- Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | 175,755 | ||
Munich American Reassurance Company [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | 101,466 | 100,846 | |
Korean Reinsurance Company [Member] | AM Best, A Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | 91,605 | 89,300 | |
RGA Reinsurance Company [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | 81,217 | 78,143 | |
TOA Reinsurance Company [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | 22,242 | 20,139 | |
Hannover Life Reassurance Company [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | 20,650 | 18,694 | |
All Other Reinsurers [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | $ 36,975 | $ 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 100% retroceded to Swiss Re Life & Health America Inc. |
Reinsurance - Reinsurance Rec89
Reinsurance - Reinsurance Receivable and Financial Strength Ratings by Reinsurer (Parenthetical) (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
Swiss Re Life & Health America Inc. [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance receivable, retroceded percentage | 100.00% | 100.00% |
Deferred Policy Acquisition C90
Deferred Policy Acquisition Costs - Narrative (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
Minimum [Member] | ||
Deferred policy acquisition costs [Line Items] | ||
Long-Duration Contracts, Assumptions by Product and Guarantee, Estimated Investment Yield | 3.50% | 3.50% |
Maximum [Member] | ||
Deferred policy acquisition costs [Line Items] | ||
Long-Duration Contracts, Assumptions by Product and Guarantee, Estimated Investment Yield | 7.00% | 7.00% |
Deferred Policy Acquisition C91
Deferred Policy Acquisition Costs - Balance RollForward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |||
Beginning balance | $ 1,351,180 | $ 1,208,466 | $ 1,066,422 |
Capitalization | 339,639 | 303,543 | 283,341 |
Amortization | (157,727) | (144,378) | (129,183) |
Foreign exchange translation and other | (32,833) | (16,451) | (12,114) |
Ending balance | $ 1,500,259 | $ 1,351,180 | $ 1,208,466 |
Separate Accounts - Narrative (
Separate Accounts - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2015 | |
Separate Accounts Narrative [Abstract] | ||
Separate accounts contract's minimum guaranteed payments, percentage of policyholder's contribution | 75.00% | |
Separate accounts contract minimum maturity, years | 10 years | |
Separate accounts contract maximum maturity, years | 56 years | |
Separate accounts contract maturity, years | 20 years | |
Separate accounts contracts minimum guaranteed payments, decline in percentage of policyholder's contribution | 25.00% |
Separate Accounts - Schedule of
Separate Accounts - Schedule of Fair Value of Separate Accounts by Major Category of Investment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Separate account assets | $ 2,063,899 | $ 2,440,303 |
Fixed Income Securities [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Separate account assets | 932,934 | 1,019,034 |
Equity Securities [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Separate account assets | 1,109,610 | 1,318,382 |
Cash and Cash Equivalents [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Separate account assets | 24,003 | 104,983 |
Due To/From Funds [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Separate account assets | (2,817) | (2,536) |
Other [Member] | ||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ||
Separate account assets | $ 169 | $ 440 |
Insurance Reserves - Schedule o
Insurance Reserves - Schedule of Liability For Future Policy Benefits and Unpaid Claims (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Liability For Claims And Claims Adjustment Expense [Line Items] | |||
Policy claims and other benefits payable, beginning of period | $ 245,829 | $ 238,750 | $ 243,145 |
Reinsured policy claims and other benefits payable, beginning of period | 264,049 | 248,185 | 269,279 |
Net balance, beginning of period | (18,220) | (9,435) | (26,134) |
Incurred related to current year | 138,139 | 129,869 | 147,639 |
Incurred related to prior years | 212 | 674 | (4,956) |
Total incurred | 138,351 | 130,543 | 142,683 |
Claims paid related to current year, net of reinsured policy claims received | (167,621) | (155,357) | (165,476) |
Reinsured policy claims received related to prior years, net of claims paid | 23,661 | 21,881 | 39,989 |
Total paid | (143,960) | (133,476) | (125,487) |
Foreign currency translation | (1,017) | (805) | (497) |
Net balance, end of period | (24,846) | (18,220) | (9,435) |
Reinsured policy claims and other benefits payable, end of period | 263,003 | 264,049 | 248,185 |
Policy claims and other benefits payable, end of period | $ 238,157 | 245,829 | $ 238,750 |
DBL [Member] | |||
Liability For Claims And Claims Adjustment Expense [Line Items] | |||
Sale of DBL | $ (5,047) |
Debt - Schedule of Notes Payabl
Debt - Schedule of Notes Payable (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Debt instrument, face amount | $ 375,000 | $ 375,000 |
Debt instrument, unamortized discount | (415) | (468) |
Total notes payable | $ 374,585 | $ 374,532 |
Debt - Schedule of Notes Paya96
Debt - Schedule of Notes Payable (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt instrument, interest rate, stated percentage | 4.75% |
Debt instrument maturity date | Jul. 15, 2022 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 375,000 | $ 375,000 |
Debt instrument, interest rate, stated percentage | 4.75% | |
Debt instrument maturity date | Jul. 15, 2022 | |
Surplus note | $ 365,220 | $ 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 | |
Issue price of senior notes | 99.843% | |
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 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current federal tax expense (benefit) | $ 46,175 | $ 44,356 | $ 33,798 | ||||||||
Current foreign tax expense (benefit) | 14,600 | 24,403 | 32,797 | ||||||||
Current state and local tax expense (benefit) | 2,043 | 1,372 | 1,377 | ||||||||
Current income tax expense (benefit) | 62,818 | 70,131 | 67,972 | ||||||||
Deferred federal income tax expense (benefit) | 36,723 | 31,590 | 32,919 | ||||||||
Deferred foreign income tax expense (benefit) | 3,161 | (4,826) | (14,410) | ||||||||
Deferred state and local income tax expense (benefit) | (1,592) | (1,007) | (176) | ||||||||
Deferred income tax expense (benefit) | 38,292 | 25,757 | 18,333 | ||||||||
Federal income tax expense (benefit) | 82,898 | 75,946 | 66,717 | ||||||||
Foreign income tax expense (benefit) | 17,761 | 19,577 | 18,387 | ||||||||
State and local income tax expense (benefit) | 451 | 365 | 1,201 | ||||||||
Income tax expense (benefit) | $ 24,445 | $ 25,603 | $ 27,652 | $ 23,408 | $ 23,664 | $ 22,407 | $ 26,469 | $ 23,347 | $ 101,110 | $ 95,888 | $ 86,305 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal Statutory Tax Rate | 35.00% | 35.00% | 35.00% |
Deferred tax assets, operating loss carryforwards, state and local | $ 8,900,000 | ||
Deferred tax assets, valuation allowance | 0 | $ 0 | |
Deferred tax liability not recognized, undistributed foreign earnings | 9,300,000 | ||
Unremitted foreign earnings available for repatriation | 28,900,000 | ||
Unrecognized tax benefits that would impact effective tax rate | 9,300,000 | 8,900,000 | |
Unrecognized tax benefits, income tax penalties and interest accrued | 2,000,000 | 2,600,000 | |
Unrecognized tax benefits, interest benefit | 100,000 | $ 100,000 | $ 100,000 |
Unrecognized tax penalties | 0 | ||
Tax indemnification asset from Citigroup | $ 1,700,000 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income tax reconciliation, income tax expense (benefit), at federal statutory income tax rate | $ 101,843 | $ 96,503 | $ 85,752 | ||||||||
Income tax rate reconciliation, foreign income tax rate differential amount | (5,531) | (6,271) | (5,909) | ||||||||
Income tax rate reconciliation, repatriation of foreign earnings amount | 3,810 | 3,067 | 2,819 | ||||||||
Income tax reconciliation, other reconciling items | 988 | 2,589 | 3,643 | ||||||||
Income tax expense (benefit) | $ 24,445 | $ 25,603 | $ 27,652 | $ 23,408 | $ 23,664 | $ 22,407 | $ 26,469 | $ 23,347 | $ 101,110 | $ 95,888 | $ 86,305 |
Federal Statutory Tax Rate | 35.00% | 35.00% | 35.00% | ||||||||
Effective income tax rate reconciliation, foreign income tax rate differential | (1.90%) | (2.30%) | (2.40%) | ||||||||
Effective income tax rate reconciliation, repatriation of foreign earnings | 1.30% | 1.10% | 1.20% | ||||||||
Effective income tax rate reconciliation, other adjustments | 0.30% | 1.00% | 1.40% | ||||||||
Effective income tax rate | 34.70% | 34.80% | 35.20% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Deferred tax assets, tax deferred expense, reserves and accruals, reserves | $ 210,164 | $ 216,768 |
Deferred tax assets, goodwill and intangible assets | 39,977 | 43,822 |
Deferred tax assets, tax deferred expense, reserves and accruals, accrued liabilities | 17,741 | 16,892 |
Deferred tax assets, tax deferred expense, compensation and benefits, share-based compensation cost | 15,698 | 14,298 |
Deferred tax assets, other | 8,962 | 11,546 |
Deferred tax assets, gross | 292,542 | 303,326 |
Deferred tax liabilities: | ||
Deferred tax liabilities, deferred expense, deferred policy acquisition costs | (319,250) | (291,683) |
Deferred tax liabilities, investments | (6,893) | (28,909) |
Deferred tax liabilities, undistributed foreign earnings | (2,297) | (2,602) |
Deferred tax liabilities, reinsurance deposit asset | (63,661) | (55,040) |
Deferred tax liabilities, other | (11,978) | (14,463) |
Deferred tax liabilities, gross | (404,079) | (392,697) |
Deferred tax liabilities, net for all jurisdictions | $ (111,537) | $ (89,371) |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits, beginning of period | $ 16,014 | $ 16,607 |
Unrecognized tax benefits, decreases resulting from prior period tax positions | (146) | (16) |
Unrecognized tax benefits, increases resulting from current period tax positions | 2,191 | 2,102 |
Unrecognized tax benefits, reductions resulting from lapse of applicable statute of limitations | (4,120) | (2,679) |
Unrecognized tax benefits, end of period | $ 13,939 | $ 16,014 |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of Number of Shares of Common Stock (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stockholders Equity Note [Abstract] | |||
Common stock, beginning of period | 52,169 | 54,834 | 56,374 |
Shares of restricted common stock issued | 280 | ||
Shares issued for stock options exercised | 89 | 4 | |
Shares of common stock issued upon lapse of restricted stock units ("RSUs") | 574 | 502 | 1,122 |
Common stock retired | (4,535) | (3,171) | (2,942) |
Common stock, end of period | 48,297 | 52,169 | 54,834 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Class Of Stock [Line Items] | |||
Stock repurchased and retired during period, shares | 4,535,000 | 3,171,000 | 2,942,000 |
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 | 4,326,685 | ||
Stock repurchased and retired during period, value | $ 200,000,000 | ||
New Repurchase [Member] | |||
Class Of Stock [Line Items] | |||
Stock repurchased program, authorized amount | 200,000,000 | ||
Stock repurchase program, remaining authorized repurchase amount | $ 150,000,000 | ||
Warburg Pincus LLC [Member] | |||
Class Of Stock [Line Items] | |||
Stock repurchased and retired during period, shares | 2,500,000 | ||
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 | 1,100,000 |
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 | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Income from continuing operations | $ 47,949 | $ 49,350 | $ 49,173 | $ 43,401 | $ 45,466 | $ 41,613 | $ 49,271 | $ 43,485 | $ 189,871 | $ 179,834 | $ 158,701 |
Income from discontinued operations | $ (18) | $ 1,595 | $ 1,578 | $ 4,024 | |||||||
Weighted-average vested shares | 50,881 | 54,567 | 55,834 | ||||||||
Basic EPS from continuing operations | $ 0.97 | $ 0.98 | $ 0.94 | $ 0.82 | $ 0.84 | $ 0.75 | $ 0.89 | $ 0.78 | $ 3.70 | $ 3.26 | $ 2.80 |
Basic EPS from discontinued operations | 0.03 | $ 0.03 | $ 0.07 | ||||||||
Dilutive effect of incremental shares if issued for warrants outstanding | 787 | ||||||||||
Dilutive effect of incremental shares to be issued for equity awards | 32 | 31 | 4 | ||||||||
Weighted-average shares used in calculating diluted EPS | 50,913 | 54,598 | 56,625 | ||||||||
Diluted EPS from continuing operations | $ 0.97 | $ 0.98 | $ 0.94 | $ 0.82 | $ 0.84 | $ 0.75 | $ 0.89 | 0.78 | $ 3.70 | $ 3.26 | $ 2.76 |
Diluted EPS from discontinued operations | $ 0.03 | $ 0.03 | $ 0.07 | ||||||||
Continuing Operations [Member] | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Income used in calculating basic EPS | $ 188,299 | $ 177,796 | $ 156,096 | ||||||||
Income used in calculating diluted EPS | 188,300 | 177,797 | 156,126 | ||||||||
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 | (1,572) | (2,038) | (2,605) | ||||||||
Income attributable to unvested participating securities, diluted EPS | $ (1,571) | (2,037) | (2,575) | ||||||||
Discontinued Operations [Member] | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Income used in calculating basic EPS | 1,560 | 3,958 | |||||||||
Income used in calculating diluted EPS | 1,560 | 3,959 | |||||||||
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) | (66) | |||||||||
Income attributable to unvested participating securities, diluted EPS | $ (18) | $ (65) |
Share-Based Transactions - Narr
Share-Based Transactions - Narrative (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,500 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 10 years | |||
Stock options exercise term, description | Upon retirement, employees have the lesser of three years or the remaining option term to exercise any vested options. | |||
Share-based Compensation Arrangement by Share-based Payment Award, Sale Restrictions Expiration Period Subsequent to Vesting | 3 years | |||
Restricted stock units (RSUs) [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 5.7 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 9 months 18 days | |||
Stock Options [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 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 0.3 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 8 months 12 days | |||
Nonemployee Shares [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Agent equity awards unvested | 73 | 73 | 104 | 132 |
Management | Restricted stock units (RSUs) [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 | 3 years | ||
Management | U.S. Based Subsidiaries [Member] | Restricted Stock [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 | |||
Management | Canadian Subsidiaries [Member] | Restricted stock units (RSUs) [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 | |||
Non-employee Directors [Member] | Restricted Stock [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 | |||
Non-employee Directors [Member] | Restricted stock units (RSUs) [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | 1 year | 1 year |
Share-Based Transactions - Empl
Share-Based Transactions - Employee Share-Based Transactions, Cost and Tax Benefit (Details) - Management and Director Awards [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total management and director restricted stock and RSU awards | $ 13,839 | $ 15,726 | $ 13,101 |
Tax benefit associated with total management and director restricted stock and RSU award expense | $ 4,668 | $ 5,322 | $ 3,936 |
Share-Based Transactions - E108
Share-Based Transactions - Employee Share-Based Transactions, Restricted Stock and RSU Activity (Details) - Management and Director Awards [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement [Abstract] | |||
Shares, beginning balance | 580 | 722 | 1,507 |
Shares, granted | 246 | 279 | 322 |
Shares, forfeited | (8) | (13) | (9) |
Shares, vested | (428) | (408) | (1,098) |
Shares, ending balance | 390 | 580 | 722 |
Weighted-Average Exercise Price Per Share [Abstract] | |||
Weighted-average measurement-date fair value per share, beginning balance | $ 34.67 | $ 28.67 | $ 19.72 |
Weighted-average measurement-date fair value per share, granted | 52.75 | 41.31 | 32.76 |
Weighted-average measurement-date fair value per share, forfeited | 41.98 | 30.49 | 28.72 |
Weighted-average measurement-date fair value per share, vested | 35.43 | 28.53 | 17.59 |
Weighted-average measurement-date fair value per share, ending balance | $ 45.07 | $ 34.67 | $ 28.67 |
Share-Based Transactions - E109
Share-Based Transactions - Employee Share-based Transactions, Stock Options Cost and Tax Benefit (Details) - Stock Options [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expense recognized for stock option awards | $ 643 | $ 1,803 | $ 323 |
Tax benefit recognized for stock option awards | $ 225 | $ 631 | $ 113 |
Share-Based Transactions - E110
Share-Based Transactions - Employee Share-Based Transactions, Valuation Assumptions (Details) - Stock Options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected volatility | 24.00% | 33.00% | 30.00% |
Expected per share dividend yield | 1.20% | 1.17% | 1.35% |
Risk-free interest rate | 1.61% | 1.81% | 1.06% |
Expected term of options | 5 years | 6 years | 6 years |
Fair value per option | $ 11.07 | $ 12.54 | $ 8.44 |
Share-Based Transactions - Summ
Share-Based Transactions - Summary of Activity Related to Stock Options Outstanding and Exercisable (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares, outstanding beginning balance | 246 | 134 | |
Number of shares, granted | 46 | 116 | 134 |
Number of shares, exercised | (89) | (4) | |
Number of shares, outstanding ending balance | 203 | 246 | 134 |
Weighted average exercise price, outstanding beginning balance | $ 36.67 | $ 32.63 | |
Weighted average exercise price, granted | 53.50 | 41.20 | $ 32.63 |
Weighted average exercise price, exercised | 34.89 | 32.63 | |
Weighted average exercise price, outstanding ending balance | $ 41.28 | $ 36.67 | $ 32.63 |
Number of shares, exercisable, beginning balance | 40 | ||
Number of shares, exercisable, ending balance | 35 | 40 | |
Weighted average exercise price, exercisable | $ 36.38 | $ 32.63 | |
$32.63 (average term remaining - 7.2 years) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares, vested option exercise prices outstanding | 64 | ||
Weighted average exercise price, vested option exercise prices outstanding | $ 32.63 | ||
Number of shares, vested option exercise prices exercisable | 20 | ||
Weighted average exercise price, vested option exercise prices exercisable | $ 32.63 | ||
$41.20 (average term remaining - 8.2 years) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares, vested option exercise prices outstanding | 93 | ||
Weighted average exercise price, vested option exercise prices outstanding | $ 41.20 | ||
Number of shares, vested option exercise prices exercisable | 15 | ||
Weighted average exercise price, vested option exercise prices exercisable | $ 41.20 | ||
$53.50 (average term remaining - 9.1 years) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares, vested option exercise prices outstanding | 46 | ||
Weighted average exercise price, vested option exercise prices outstanding | $ 53.50 |
Share-Based Transactions - S112
Share-Based Transactions - Summary of Activity Related to Stock Options Outstanding and Exercisable (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2015$ / shares | |
$32.63 (average term remaining - 7.2 years) Option [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vested option exercise price | $ 32.63 |
Vested option exercise, average life | 7 years 2 months 12 days |
$41.20 (average term remaining - 8.2 years) Option [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vested option exercise price | $ 41.20 |
Vested option exercise, average life | 8 years 2 months 12 days |
$53.50 (average term remaining - 9.1 years) Option [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vested option exercise price | $ 53.50 |
Vested option exercise, average life | 9 years 1 month 6 days |
Share-Based Transactions - S113
Share-Based Transactions - Summary of Intrinsic Values of Stock Options (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Aggregate intrinsic value of exercisable stock options | $ 378 |
Aggregate intrinsic value of stock options expected to vest | 830 |
Aggregate intrinsic value of stock options outstanding | $ 1,208 |
Share-Based Transactions - S114
Share-Based Transactions - Summary of Intrinsic Value, Tax Benefit Realized and Value of Shares Withheld Related to Option Exercise Activity (Details) - Stock Options [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Intrinsic value of options exercised | $ 1,620 | $ 53 |
Tax benefit realized from the options exercised | 567 | 19 |
Value of issued shares withheld to satisfy option exercise price | $ 2,966 | $ 142 |
Share-Based Transactions - None
Share-Based Transactions - Nonemployee Share-Based Transactions, RSU Activity (Details) - Nonemployee Shares [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement [Abstract] | |||
Shares, beginning balance | 73 | 104 | 132 |
Shares, granted | 326 | 295 | 504 |
Shares, vested | (326) | (326) | (532) |
Shares, ending balance | 73 | 73 | 104 |
Weighted-Average Exercise Price Per Share [Abstract] | |||
Weighted-average measurement-date fair value per share, beginning balance | $ 49.98 | $ 36.44 | $ 25.42 |
Weighted-average measurement-date fair value per share, granted | 42.79 | 45.08 | 32.14 |
Weighted-average measurement-date fair value per share, vested | 44.39 | 41.23 | 29.64 |
Weighted-average measurement-date fair value per share, ending balance | $ 42.83 | $ 49.98 | $ 36.44 |
Share-Based Transactions - N116
Share-Based Transactions - Nonemployee Share-Based Transactions, Valuation Assumptions (Details) - Nonemployee Shares [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation Assumptions For Restricted Stock Units [Line Items] | |||
Expected volatility | 18.00% | 17.00% | 20.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 35.00% | 31.00% | 35.00% |
Quarterly dividends expected | $ 0.16 | $ 0.12 | $ 0.11 |
Maximum [Member] | |||
Valuation Assumptions For Restricted Stock Units [Line Items] | |||
Risk-free interest rate | 2.00% | 2.00% | 2.00% |
Share-Based Transactions - N117
Share-Based Transactions - Nonemployee Share-Based Transactions, Cost and Tax Benefit (Details) - Nonemployee Shares [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Goods And Nonemployee Services Transaction [Line Items] | |||
Total quarterly non-employee RSUs granted | 325,744 | 294,985 | 503,737 |
Expense Recognized [Member] | |||
Share Based Goods And Nonemployee Services Transaction [Line Items] | |||
Quarterly incentive awards expense | $ 467 | $ 453 | $ 364 |
Expense Deferred [Member] | |||
Share Based Goods And Nonemployee Services Transaction [Line Items] | |||
Quarterly incentive awards expense | 13,423 | 13,598 | 15,818 |
Tax Benefit of Deferred Expense [Member] | |||
Share Based Goods And Nonemployee Services Transaction [Line Items] | |||
Quarterly incentive awards expense | $ 4,454 | $ 4,500 | $ 5,001 |
Minimum [Member] | |||
Share Based Goods And Nonemployee Services Transaction [Line Items] | |||
Measurement date per-share fair value of awards | $ 40.98 | $ 42.96 | $ 26.39 |
Illiquidity discounts | 8.00% | 8.00% | 13.00% |
Maximum [Member] | |||
Share Based Goods And Nonemployee Services Transaction [Line Items] | |||
Measurement date per-share fair value of awards | $ 46.71 | $ 49.98 | $ 36.44 |
Illiquidity discounts | 9.00% | 9.00% | 18.00% |
Statutory Accounting and Div118
Statutory Accounting and Dividend Restrictions - Statutory Accounting Practices Disclosure (Details) - Primerica Life [Member] - MASSACHUSETTS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statutory Accounting Practices [Line Items] | ||
Statutory accounting practices, statutory capital and surplus, balance | $ 560,936 | $ 498,992 |
Statutory accounting practices, statutory unassigned surplus | $ 48,715 | $ 9,773 |
Statutory Accounting and Div119
Statutory Accounting and Dividend Restrictions - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Primerica Life [Member] | MASSACHUSETTS | |||
Statutory Accounting Practices [Line Items] | |||
Statutory accounting practices, statutory net income amount | $ 436,300 | $ 267,400 | $ 306,700 |
Payments of dividends | 45,600 | ||
Statutory accounting practices, statutory amount available for dividend payments | 48,700 | ||
Statutory accounting practices, statutory capital and surplus, balance | 560,936 | 498,992 | |
Peach Re [Member] | VERMONT | |||
Statutory Accounting Practices [Line Items] | |||
State insurance department, statutory to NAIC, amount of reconciling item | 455,700 | ||
Primerica Life Canada [Member] | CANADA | |||
Statutory Accounting Practices [Line Items] | |||
Statutory accounting practices, statutory capital and surplus, balance | 252,600 | $ 290,100 | |
Statutory accounting practices, statutory amount available for dividend payments without regulatory approval | $ 92,300 |
Commitments and Contingent L120
Commitments and Contingent Liabilities - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)Jurisdiction | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Commitments And Contingent Liabilities [Line Items] | |||
Total minimum rent expense | $ 7,200,000 | $ 7,700,000 | $ 8,300,000 |
Contingent rent expense | $ 0 | 0 | $ 0 |
Future operating lease, term | 15 years | ||
Material capital leases | $ 0 | $ 0 | |
Letter of credit, outstanding | $ 455,700,000 | ||
Number of jurisdiction | Jurisdiction | 30 | ||
Letter of Credit [Member] | |||
Commitments And Contingent Liabilities [Line Items] | |||
Letter of credit, outstanding | $ 507,000,000 | ||
Line of credit facility, agreement term | 14 years | ||
Minimum [Member] | |||
Commitments And Contingent Liabilities [Line Items] | |||
Future operating lease, amount | $ 4,500,000 | ||
Maximum [Member] | |||
Commitments And Contingent Liabilities [Line Items] | |||
Future operating lease, term | 15 years | ||
Future operating lease, amount | $ 5,600,000 | ||
Letter Of Credit Initial Amount [Member] | Letter of Credit [Member] | |||
Commitments And Contingent Liabilities [Line Items] | |||
Letter of credit, outstanding | $ 450,000,000 |
Commitments and Contingent L121
Commitments and Contingent Liabilities - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Future Minimum Lease Payments [Abstract] | |
2,016 | $ 6,724 |
2,017 | 6,748 |
2,018 | 6,108 |
2,019 | 5,723 |
2,020 | 5,358 |
Thereafter | 40,375 |
Total minimum rental commitments for operating leases | $ 71,036 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Pension And Other Postretirement Plans Disclosure [Abstract] | |||
Defined Contribution Plan, Cost Recognized | $ 6.7 | $ 6.5 | $ 6.5 |
Unaudited Quarterly Financia123
Unaudited Quarterly Financial Data - Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Direct premiums | $ 591,856 | $ 587,882 | $ 588,248 | $ 577,458 | $ 578,905 | $ 577,482 | $ 576,740 | $ 568,205 | $ 2,345,444 | $ 2,301,332 | $ 2,265,191 |
Ceded premiums | (396,838) | (393,987) | (406,854) | (397,540) | (401,359) | (402,198) | (410,546) | (402,715) | (1,595,220) | (1,616,817) | (1,644,158) |
Net premiums | 195,018 | 193,895 | 181,394 | 179,918 | 177,546 | 175,284 | 166,194 | 165,490 | 750,224 | 684,515 | 621,033 |
Commissions and fees | 132,794 | 132,368 | 139,150 | 132,835 | 135,267 | 132,928 | 132,039 | 126,933 | 537,146 | 527,166 | 471,808 |
Net investment income | 17,546 | 18,715 | 19,075 | 21,173 | 22,728 | 20,465 | 21,681 | 21,599 | 76,509 | 86,473 | 88,752 |
Realized investment gains (losses), including OTTI | (3,360) | (259) | 597 | 1,284 | (1,074) | (281) | 831 | 263 | (1,738) | (261) | 6,246 |
Other, net | 12,131 | 11,105 | 10,301 | 9,635 | 10,596 | 10,445 | 9,981 | 9,712 | 43,173 | 40,731 | 41,159 |
Total revenues | 354,129 | 355,824 | 350,517 | 344,845 | 345,063 | 338,841 | 330,726 | 323,997 | 1,405,314 | 1,338,624 | 1,228,998 |
Total benefits and expenses | 281,735 | 280,871 | 273,692 | 278,036 | 275,933 | 274,821 | 254,986 | 257,165 | 1,114,333 | 1,062,902 | 983,992 |
Income from continuing operations before income taxes | 72,394 | 74,953 | 76,825 | 66,809 | 69,130 | 64,020 | 75,740 | 66,832 | 290,981 | 275,722 | 245,006 |
Income taxes | 24,445 | 25,603 | 27,652 | 23,408 | 23,664 | 22,407 | 26,469 | 23,347 | 101,110 | 95,888 | 86,305 |
Income from continuing operations | 47,949 | 49,350 | 49,173 | 43,401 | 45,466 | 41,613 | 49,271 | 43,485 | 189,871 | 179,834 | 158,701 |
Income from discontinued operations, net of income taxes | (18) | 1,595 | 1,578 | 4,024 | |||||||
Net income | $ 47,949 | $ 49,350 | $ 49,173 | $ 43,401 | $ 45,466 | $ 41,595 | $ 49,271 | $ 45,080 | $ 189,871 | $ 181,412 | $ 162,725 |
Basic earnings per share: | |||||||||||
Continuing operations | $ 0.97 | $ 0.98 | $ 0.94 | $ 0.82 | $ 0.84 | $ 0.75 | $ 0.89 | $ 0.78 | $ 3.70 | $ 3.26 | $ 2.80 |
Discontinued operations | 0.03 | 0.03 | 0.07 | ||||||||
Basic earnings per share | 0.97 | 0.98 | 0.94 | 0.82 | 0.84 | 0.75 | 0.89 | 0.81 | 3.70 | 3.29 | 2.87 |
Diluted earnings per share: | |||||||||||
Continuing operations | 0.97 | 0.98 | 0.94 | 0.82 | 0.84 | 0.75 | 0.89 | 0.78 | 3.70 | 3.26 | 2.76 |
Discontinued operations | 0.03 | 0.03 | 0.07 | ||||||||
Diluted earnings per share | $ 0.97 | $ 0.98 | $ 0.94 | $ 0.82 | $ 0.84 | $ 0.75 | $ 0.89 | $ 0.81 | $ 3.70 | $ 3.29 | $ 2.83 |
Schedule I Summary of Invest124
Schedule I Summary of Investments - Other Than Investments in Related Parties (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Summary of Investments Other Than Investments In Related Parties | |
Summary of investments, other than investments in related parties, cost | $ 2,129,217 |
Summary of investments, other than investments in related parties, fair value | 2,185,025 |
Summary of investments, other than investments in related parties, carrying amount | 2,178,503 |
US Government and Government Agencies and Authorities [Member] | |
Summary of Investments Other Than Investments In Related Parties | |
Summary of investments, other than investments in related parties, cost | 110,672 |
Summary of investments, other than investments in related parties, fair value | 117,714 |
Summary of investments, other than investments in related parties, carrying amount | 117,714 |
US States and Political Subdivisions Debt Securities [Member] | |
Summary of Investments Other Than Investments In Related Parties | |
Summary of investments, other than investments in related parties, cost | 39,990 |
Summary of investments, other than investments in related parties, fair value | 41,582 |
Summary of investments, other than investments in related parties, carrying amount | 41,582 |
Foreign Government Debt [Member] | |
Summary of Investments Other Than Investments In Related Parties | |
Summary of investments, other than investments in related parties, cost | 114,656 |
Summary of investments, other than investments in related parties, fair value | 120,216 |
Summary of investments, other than investments in related parties, carrying amount | 120,216 |
Convertibles and Bonds with Warrants Attached [Member] | |
Summary of Investments Other Than Investments In Related Parties | |
Summary of investments, other than investments in related parties, cost | 2,569 |
Summary of investments, other than investments in related parties, fair value | 2,812 |
Summary of investments, other than investments in related parties, carrying amount | 2,812 |
All Other Corporate Bonds [Member] | |
Summary of Investments Other Than Investments In Related Parties | |
Summary of investments, other than investments in related parties, cost | 1,789,925 |
Summary of investments, other than investments in related parties, fair value | 1,823,457 |
Summary of investments, other than investments in related parties, carrying amount | 1,816,935 |
Mandatorily Redeemable Preferred Stock [Member] | |
Summary of Investments Other Than Investments In Related Parties | |
Summary of investments, other than investments in related parties, cost | 2,809 |
Summary of investments, other than investments in related parties, fair value | 2,778 |
Summary of investments, other than investments in related parties, carrying amount | 2,778 |
Fixed Maturities [Member] | |
Summary of Investments Other Than Investments In Related Parties | |
Summary of investments, other than investments in related parties, cost | 2,060,621 |
Summary of investments, other than investments in related parties, fair value | 2,108,559 |
Summary of investments, other than investments in related parties, carrying amount | 2,102,037 |
Public Utility, Equities [Member] | |
Summary of Investments Other Than Investments In Related Parties | |
Summary of investments, other than investments in related parties, cost | 7,488 |
Summary of investments, other than investments in related parties, fair value | 10,794 |
Summary of investments, other than investments in related parties, carrying amount | 10,794 |
Banks, Trust and Insurance, Equities [Member] | |
Summary of Investments Other Than Investments In Related Parties | |
Summary of investments, other than investments in related parties, cost | 8,330 |
Summary of investments, other than investments in related parties, fair value | 10,264 |
Summary of investments, other than investments in related parties, carrying amount | 10,264 |
Industrial, Miscellaneous, and All Others [Member] | |
Summary of Investments Other Than Investments In Related Parties | |
Summary of investments, other than investments in related parties, cost | 9,185 |
Summary of investments, other than investments in related parties, fair value | 10,598 |
Summary of investments, other than investments in related parties, carrying amount | 10,598 |
Nonredeemable Preferred Stock [Member] | |
Summary of Investments Other Than Investments In Related Parties | |
Summary of investments, other than investments in related parties, cost | 14,966 |
Summary of investments, other than investments in related parties, fair value | 16,183 |
Summary of investments, other than investments in related parties, carrying amount | 16,183 |
Equity Securities, Investment Summary [Member] | |
Summary of Investments Other Than Investments In Related Parties | |
Summary of investments, other than investments in related parties, cost | 39,969 |
Summary of investments, other than investments in related parties, fair value | 47,839 |
Summary of investments, other than investments in related parties, carrying amount | 47,839 |
Policy Loans [Member] | |
Summary of Investments Other Than Investments In Related Parties | |
Summary of investments, other than investments in related parties, cost | 28,627 |
Summary of investments, other than investments in related parties, fair value | 28,627 |
Summary of investments, other than investments in related parties, carrying amount | $ 28,627 |
Schedule II - Primerica, Inc. (
Schedule II - Primerica, Inc. (Parent Only) - Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Investments: | ||||||
Available-for-sale debt securities, at fair value | $ 1,731,459 | [1] | $ 1,759,120 | [2] | ||
Total investments | 2,178,503 | 2,068,316 | ||||
Cash and cash equivalents | 152,294 | 191,997 | $ 148,982 | $ 112,214 | ||
Other receivables | 193,841 | 181,660 | ||||
Other assets | 307,185 | 273,403 | ||||
Total assets | 10,612,119 | 10,737,595 | 10,329,744 | |||
Notes payable | 374,585 | 374,532 | ||||
Current income tax payable | 6,476 | 15,014 | ||||
Deferred income taxes | 141,649 | 125,453 | ||||
Other liabilities | $ 416,417 | $ 410,629 | ||||
Commitments and contingent liabilities (see Note E) | ||||||
Total liabilities | $ 9,466,347 | $ 9,492,469 | ||||
Common stock ($0.01 par value; authorized 500,000 in 2015 and 2014; issued and outstanding 48,297 shares in 2015 and 52,169 shares in 2014) | 483 | 522 | ||||
Paid-in capital | 180,250 | 353,337 | ||||
Retained earnings | 952,804 | 795,740 | ||||
Total stockholders’ equity | 1,145,772 | 1,245,126 | 1,222,027 | |||
Total liabilities and stockholders’ equity | 10,612,119 | 10,737,595 | ||||
Parent Company [Member] | ||||||
Investments: | ||||||
Available-for-sale debt securities, at fair value | 71,437 | 161,840 | ||||
Total investments | 71,437 | 161,840 | ||||
Cash and cash equivalents | 15,029 | 32,634 | $ 11,361 | $ 10,296 | ||
Due from affiliates | 133 | 92 | ||||
Other receivables | 659 | 1,318 | ||||
Deferred income taxes | 8,904 | 7,311 | ||||
Investment in subsidiaries | 1,442,608 | 1,430,484 | ||||
Other assets | 2,033 | 2,442 | ||||
Total assets | 1,540,803 | 1,636,121 | ||||
Notes payable | 374,585 | 374,532 | ||||
Current income tax payable | 2,311 | 3,287 | ||||
Deferred income taxes | 3,695 | 3,489 | ||||
Due to affiliates | 3,912 | 1,182 | ||||
Interest payable | 8,214 | 8,214 | ||||
Other liabilities | $ 2,314 | $ 291 | ||||
Commitments and contingent liabilities (see Note E) | ||||||
Total liabilities | $ 395,031 | $ 390,995 | ||||
Common stock ($0.01 par value; authorized 500,000 in 2015 and 2014; issued and outstanding 48,297 shares in 2015 and 52,169 shares in 2014) | 483 | 522 | ||||
Paid-in capital | 180,250 | 353,337 | ||||
Retained earnings | 952,804 | 795,740 | ||||
Accumulated other comprehensive income, net of income tax | 12,235 | 95,527 | ||||
Total stockholders’ equity | 1,145,772 | 1,245,126 | ||||
Total liabilities and stockholders’ equity | $ 1,540,803 | $ 1,636,121 | ||||
[1] | Includes approximately $0.1 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. | |||||
[2] | Includes approximately $0.7 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. |
Schedule II - Primerica, Inc126
Schedule II - Primerica, Inc. (Parent Only) - Condensed Financial Information Parentheticals (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Condensed Financial Statements, Captions [Line Items] | ||||||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | $ 1,690,043 | [1] | $ 1,655,221 | [2] | ||
Common stock, par value | $ 0.01 | $ 0.01 | ||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | ||||
Common stock, shares issued | 48,297,000 | 52,169,000 | ||||
Common stock, shares outstanding | 48,297,000 | 52,169,000 | 54,834,000 | 56,374,000 | ||
Parent Company [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | $ 71,419 | $ 160,839 | ||||
Common stock, par value | $ 0.01 | $ 0.01 | ||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | ||||
Common stock, shares issued | 48,297,000 | 52,169,000 | ||||
Common stock, shares outstanding | 48,297,000 | 52,169,000 | ||||
[1] | Includes approximately $0.1 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. | |||||
[2] | Includes approximately $0.7 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. |
Schedule II - Primerica, Inc127
Schedule II - Primerica, Inc. (Parent Only) - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||||||||||
Net investment income | $ 17,546 | $ 18,715 | $ 19,075 | $ 21,173 | $ 22,728 | $ 20,465 | $ 21,681 | $ 21,599 | $ 76,509 | $ 86,473 | $ 88,752 |
Realized investment gains (losses), including other-than- temporary impairment losses | (3,360) | (259) | 597 | 1,284 | (1,074) | (281) | 831 | 263 | (1,738) | (261) | 6,246 |
Total revenues | 354,129 | 355,824 | 350,517 | 344,845 | 345,063 | 338,841 | 330,726 | 323,997 | 1,405,314 | 1,338,624 | 1,228,998 |
Expenses: | |||||||||||
Interest expense | 33,507 | 34,570 | 35,018 | ||||||||
Other operating expenses | 169,530 | 174,363 | 187,208 | ||||||||
Income before income taxes | 290,981 | 275,722 | 245,006 | ||||||||
Income taxes | 24,445 | 25,603 | 27,652 | 23,408 | 23,664 | 22,407 | 26,469 | 23,347 | 101,110 | 95,888 | 86,305 |
Income (loss) before equity in undistributed earnings of subsidiaries | 72,394 | 74,953 | 76,825 | 66,809 | 69,130 | 64,020 | 75,740 | 66,832 | 290,981 | 275,722 | 245,006 |
Net income | $ 47,949 | $ 49,350 | $ 49,173 | $ 43,401 | $ 45,466 | $ 41,595 | $ 49,271 | $ 45,080 | 189,871 | 181,412 | 162,725 |
Parent Company [Member] | |||||||||||
Revenues: | |||||||||||
Dividends from subsidiaries | 149,187 | 319,740 | 228,319 | ||||||||
Net investment income | 2,224 | 1,010 | 762 | ||||||||
Realized investment gains (losses), including other-than- temporary impairment losses | (1,762) | (1,574) | 11 | ||||||||
Total revenues | 149,649 | 319,176 | 229,092 | ||||||||
Expenses: | |||||||||||
Interest expense | 18,177 | 18,174 | 18,172 | ||||||||
Other operating expenses | 10,603 | 8,667 | 7,882 | ||||||||
Total expenses | 28,780 | 26,841 | 26,054 | ||||||||
Income before income taxes | 120,869 | 292,335 | 203,038 | ||||||||
Income taxes | (7,124) | (7,540) | (7,043) | ||||||||
Income (loss) before equity in undistributed earnings of subsidiaries | 127,993 | 299,875 | 210,081 | ||||||||
Equity in undistributed earnings of subsidiaries | 61,878 | (118,463) | (47,356) | ||||||||
Net income | $ 189,871 | $ 181,412 | $ 162,725 |
Schedule II - Primerica, Inc128
Schedule II - Primerica, Inc. (Parent Only) - Condensed Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | $ 47,949 | $ 49,350 | $ 49,173 | $ 43,401 | $ 45,466 | $ 41,595 | $ 49,271 | $ 45,080 | $ 189,871 | $ 181,412 | $ 162,725 |
Unrealized investment gains (losses): | |||||||||||
Change in unrealized holding gains (losses) on investment securities | (65,920) | 11,228 | (68,769) | ||||||||
Reclassification adjustment for realized investment (gains) losses included in net income | 1,596 | 794 | (4,909) | ||||||||
Foreign currency translation adjustments: | |||||||||||
Equity in unrealized foreign currency translation gains of subsidiaries | (41,929) | (20,527) | (13,695) | ||||||||
Total other comprehensive income (loss) before income taxes | (106,253) | (8,505) | (87,373) | ||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | (22,961) | 3,974 | (25,969) | ||||||||
Other comprehensive income (loss), net of income taxes | (83,292) | (12,479) | (61,404) | ||||||||
Total comprehensive income | 106,579 | 168,933 | 101,321 | ||||||||
Parent Company [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 189,871 | 181,412 | 162,725 | ||||||||
Unrealized investment gains (losses): | |||||||||||
Equity in unrealized holding gains (losses) on investment securities held by subsidiaries | (41,171) | 7,296 | (47,651) | ||||||||
Change in unrealized holding gains (losses) on investment securities | (2,745) | (778) | (358) | ||||||||
Reclassification adjustment for realized investment (gains) losses included in net income | 1,762 | 1,574 | (11) | ||||||||
Foreign currency translation adjustments: | |||||||||||
Equity in unrealized foreign currency translation gains of subsidiaries | (41,929) | (20,527) | (13,695) | ||||||||
Total other comprehensive income (loss) before income taxes | (84,083) | (12,435) | (61,715) | ||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | (791) | 44 | (311) | ||||||||
Other comprehensive income (loss), net of income taxes | (83,292) | (12,479) | (61,404) | ||||||||
Total comprehensive income | $ 106,579 | $ 168,933 | $ 101,321 |
Schedule II - Primerica, Inc129
Schedule II - Primerica, Inc. (Parent Only) - Condensed Statements of Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 47,949 | $ 49,350 | $ 49,173 | $ 43,401 | $ 45,466 | $ 41,595 | $ 49,271 | $ 45,080 | $ 189,871 | $ 181,412 | $ 162,725 |
Adjustments to reconcile net income to cash provided by (used in) operating activities: | |||||||||||
Deferred tax provision | 38,292 | 25,757 | 18,333 | ||||||||
Change in income taxes | 700 | 1,090 | (6,423) | ||||||||
Realized investment (gains) losses, including other-than-temporary impairments | 3,360 | $ 259 | $ (597) | (1,284) | 1,074 | $ 281 | $ (831) | (263) | 1,738 | 261 | (6,246) |
Accretion and amortization of investments | (1,343) | (4,825) | (4,554) | ||||||||
Share-based compensation | 14,940 | 17,982 | 13,788 | ||||||||
Net cash provided by (used in) operating activities | 259,089 | 237,332 | 187,692 | ||||||||
Available-for-sale investments sold, matured or called: | |||||||||||
Fixed maturity securities — sold | 130,608 | 109,681 | 98,277 | ||||||||
Fixed-maturity securities — matured or called | 247,771 | 314,589 | 266,738 | ||||||||
Available-for-sale investments acquired: | |||||||||||
Fixed-maturity securities | (433,457) | (425,904) | (308,904) | ||||||||
Net cash provided by (used in) investing activities | (58,465) | (15,645) | 35,484 | ||||||||
Cash flows from financing activities: | |||||||||||
Dividends paid | (32,807) | (26,512) | (25,058) | ||||||||
Common stock repurchased | (200,084) | (147,922) | (86,280) | ||||||||
Warrants repurchased | (68,399) | ||||||||||
Excess tax benefits on share-based compensation | 5,162 | 5,804 | 9,590 | ||||||||
Tax withholdings on share-based compensation | 7,675 | 6,377 | 14,793 | ||||||||
Cash proceeds from stock options exercised | 136 | ||||||||||
Net cash provided by (used in) financing activities | (235,268) | (175,883) | (184,940) | ||||||||
Change in cash and cash equivalents | (39,703) | 43,015 | 36,768 | ||||||||
Cash and cash equivalents, beginning of period | 191,997 | 148,982 | 191,997 | 148,982 | 112,214 | ||||||
Cash and cash equivalents, end of period | 152,294 | 191,997 | 152,294 | 191,997 | 148,982 | ||||||
Supplemental disclosures of cash flow information: | |||||||||||
Interest paid | 32,386 | 33,058 | 32,905 | ||||||||
Parent Company [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 189,871 | 181,412 | 162,725 | ||||||||
Adjustments to reconcile net income to cash provided by (used in) operating activities: | |||||||||||
Equity in undistributed earnings of subsidiaries | (74,814) | (70,472) | 47,356 | ||||||||
Deferred tax provision | (1,434) | (1,778) | (227) | ||||||||
Change in income taxes | (138) | 979 | (4,912) | ||||||||
Realized investment (gains) losses, including other-than-temporary impairments | 1,762 | 1,574 | (11) | ||||||||
Accretion and amortization of investments | 808 | 203 | 60 | ||||||||
Depreciation and amortization | 6 | 23 | 23 | ||||||||
Share-based compensation | 1,031 | 998 | 718 | ||||||||
Change in due to/from affiliates | 2,689 | 998 | (336) | ||||||||
Change in other operating assets and liabilities, net | 3,135 | (550) | 290 | ||||||||
Net cash provided by (used in) operating activities | 122,916 | 113,387 | 205,686 | ||||||||
Available-for-sale investments sold, matured or called: | |||||||||||
Fixed maturity securities — sold | 71,019 | 45,312 | 2,679 | ||||||||
Fixed-maturity securities — matured or called | 100,900 | 53,512 | 20,269 | ||||||||
Available-for-sale investments acquired: | |||||||||||
Fixed-maturity securities | (72,131) | (10,290) | (33,118) | ||||||||
Net cash provided by (used in) investing activities | 99,788 | 88,534 | (10,170) | ||||||||
Cash flows from financing activities: | |||||||||||
Dividends paid | (32,807) | (26,512) | (25,058) | ||||||||
Common stock repurchased | (200,084) | (147,922) | (86,280) | ||||||||
Warrants repurchased | (68,399) | ||||||||||
Excess tax benefits on share-based compensation | 61 | 163 | 79 | ||||||||
Tax withholdings on share-based compensation | 7,615 | 6,377 | 14,793 | ||||||||
Cash proceeds from stock options exercised | 136 | ||||||||||
Net cash provided by (used in) financing activities | (240,309) | (180,648) | (194,451) | ||||||||
Change in cash and cash equivalents | (17,605) | 21,273 | 1,065 | ||||||||
Cash and cash equivalents, beginning of period | $ 32,634 | $ 11,361 | 32,634 | 11,361 | 10,296 | ||||||
Cash and cash equivalents, end of period | $ 15,029 | $ 32,634 | 15,029 | 32,634 | 11,361 | ||||||
Supplemental disclosures of cash flow information: | |||||||||||
Interest paid | $ 17,813 | $ 17,813 | $ 17,070 |
Schedule II - Primerica, Inc130
Schedule II - Primerica, Inc. (Parent Only) - Condensed Statements of Cash Flow Parenthetical (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ||
Fixed-maturity securities transferred | $ 12,936 | $ 188,935 |
Schedule II - Primerica, Inc131
Schedule II - Primerica, Inc. (Parent Only) - Notes to Condensed Financial Statements (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 31, 2012 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Debt instrument, face amount | $ 375,000,000 | $ 375,000,000 | ||
Debt instrument, interest rate, stated percentage | 4.75% | |||
Letter of credit, outstanding | $ 455,700,000 | |||
Non-life Insurance Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash dividends paid to parent company | 86,500,000 | 71,300,000 | $ 63,900,000 | |
Life Insurance Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash dividends paid to parent company | 62,600,000 | $ 248,400,000 | $ 164,400,000 | |
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Debt instrument, face amount | 375,000,000 | |||
Issue price of senior notes | 99.843% | |||
Debt instrument, interest rate, stated percentage | 4.75% | |||
Guarantor obligations, maximum exposure, undiscounted | $ 20,000,000 |
Schedule III - Supplementary132
Schedule III - Supplementary Insurance Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred policy acquisition costs | $ 1,500,259 | $ 1,351,180 | |
Liability for future policy benefits, losses, claims and loss expense reserves | 5,431,711 | 5,264,608 | |
Unearned premiums | 628 | 912 | |
Other policyholders' funds | 238,157 | 245,829 | |
Separate account liabilities | 2,063,899 | 2,440,303 | |
Premium revenue | 750,224 | 684,515 | $ 621,033 |
Net investment income | 76,509 | 86,473 | 88,752 |
Benefits, claims, losses and settlement expense | 339,315 | 311,417 | 279,931 |
Amortization of deferred policy acquisition costs | 157,727 | 144,378 | 129,183 |
Other operating expense | 617,291 | 607,107 | 574,878 |
Premiums written | 908 | 934 | 905 |
Term Life Insurance [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred policy acquisition costs | 1,420,727 | 1,264,152 | |
Liability for future policy benefits, losses, claims and loss expense reserves | 5,221,188 | 5,052,661 | |
Other policyholders' funds | 227,384 | 233,522 | |
Premium revenue | 728,181 | 660,684 | 597,162 |
Net investment income | 5,987 | 4,444 | 3,029 |
Benefits, claims, losses and settlement expense | 322,232 | 295,332 | 262,357 |
Amortization of deferred policy acquisition costs | 147,980 | 133,331 | 115,891 |
Other operating expense | 120,527 | 111,796 | 101,111 |
Investment and Savings Products [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred policy acquisition costs | 51,501 | 58,156 | |
Separate account liabilities | 2,063,731 | 2,439,863 | |
Amortization of deferred policy acquisition costs | 7,952 | 8,734 | 11,195 |
Other operating expense | 368,185 | 357,322 | 340,794 |
Corporate and Other Distributed Products Segment [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred policy acquisition costs | 28,031 | 28,872 | |
Liability for future policy benefits, losses, claims and loss expense reserves | 210,523 | 211,947 | |
Unearned premiums | 628 | 912 | |
Other policyholders' funds | 10,773 | 12,307 | |
Separate account liabilities | 168 | 440 | |
Premium revenue | 22,043 | 23,831 | 23,871 |
Net investment income | 70,522 | 82,029 | 85,723 |
Benefits, claims, losses and settlement expense | 17,083 | 16,085 | 17,574 |
Amortization of deferred policy acquisition costs | 1,795 | 2,313 | 2,097 |
Other operating expense | 128,579 | 137,989 | 132,973 |
Premiums written | $ 908 | $ 934 | $ 905 |
Schedule IV - Reinsurance (Deta
Schedule IV - Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Direct premiums, life insurance in force | $ 696,884,429 | $ 685,998,013 | $ 696,884,429 | $ 685,998,013 | $ 679,337,825 | ||||||
Direct premiums | 591,856 | $ 587,882 | $ 588,248 | $ 577,458 | 578,905 | $ 577,482 | $ 576,740 | $ 568,205 | 2,345,444 | 2,301,332 | 2,265,191 |
Ceded premiums, life insurance in force | 616,252,839 | 607,218,906 | 616,252,839 | 607,218,906 | 601,309,340 | ||||||
Ceded premiums | 396,838 | $ 393,987 | $ 406,854 | $ 397,540 | 401,359 | $ 402,198 | $ 410,546 | $ 402,715 | 1,595,220 | 1,616,817 | 1,644,158 |
Premiums, net, life insurance in force | $ 80,631,590 | $ 78,779,107 | 80,631,590 | 78,779,107 | 78,028,485 | ||||||
Premiums earned, net | 750,224 | 684,515 | 621,033 | ||||||||
Life Insurance [Member] | |||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Direct premiums | 2,343,877 | 2,299,355 | 2,262,721 | ||||||||
Ceded premiums | 1,594,606 | 1,615,847 | 1,642,775 | ||||||||
Premiums earned, net | 749,271 | 683,508 | 619,946 | ||||||||
Accident and Health Insurance [Member] | |||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Direct premiums | 1,567 | 1,977 | 2,470 | ||||||||
Ceded premiums | 614 | 970 | 1,383 | ||||||||
Premiums earned, net | $ 953 | $ 1,007 | $ 1,087 |