Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Primerica, Inc. | |
Entity Central Index Key | 1,475,922 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 45,801,431 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | ||
Investments: | ||||
Fixed-maturity securities available-for-sale, at fair value (amortized cost: $1,660,347 in 2016 and $1,690,043 in 2015) | $ 1,761,174 | [1] | $ 1,731,459 | [2] |
Fixed-maturity securities held-to-maturity, at amortized cost (fair value: $500,823 in 2016 and $371,742 in 2015) | 454,000 | 365,220 | ||
Equity securities available-for-sale, at fair value (cost: $37,966 in 2016 and $39,969 in 2015) | 47,539 | 47,839 | ||
Trading securities, at fair value (cost: $12,268 in 2016 and $5,383 in 2015) | 12,259 | 5,358 | ||
Policy loans | 30,801 | 28,627 | ||
Total investments | 2,305,773 | 2,178,503 | ||
Cash and cash equivalents | 195,323 | 152,294 | ||
Accrued investment income | 17,449 | 17,080 | ||
Due from reinsurers | 4,161,537 | 4,110,628 | ||
Deferred policy acquisition costs, net | 1,672,454 | 1,500,259 | ||
Agent balances, due premiums and other receivables | 226,539 | 190,379 | ||
Intangible assets, net (accumulated amortization: $74,381 in 2016 and $71,828 in 2015) | 55,766 | 58,318 | ||
Income taxes | 29,313 | 35,067 | ||
Other assets | 356,713 | 304,356 | ||
Separate account assets | 2,347,816 | 2,063,899 | ||
Total assets | 11,368,683 | 10,610,783 | ||
Liabilities: | ||||
Future policy benefits | 5,629,967 | 5,431,711 | ||
Unearned premiums | 526 | 628 | ||
Policy claims and other benefits payable | 246,514 | 238,157 | ||
Other policyholders’ funds | 348,975 | 356,123 | ||
Notes payable | 372,827 | 372,552 | ||
Surplus note | 453,247 | 364,424 | ||
Income taxes | 215,454 | 148,125 | ||
Other liabilities | 436,621 | 417,910 | ||
Payable under securities lending | 95,843 | 71,482 | ||
Separate account liabilities | 2,347,816 | 2,063,899 | ||
Commitments and contingent liabilities (see Commitments and Contingent Liabilities note) | ||||
Total liabilities | 10,147,790 | 9,465,011 | ||
Stockholders’ equity: | ||||
Common stock ($0.01 par value; authorized 500,000 in 2016 and 2015; issued and outstanding 45,962 shares in 2016 and 48,297 shares in 2015) | 460 | 483 | ||
Paid-in capital | 66,510 | 180,250 | ||
Retained earnings | 1,090,388 | 952,804 | ||
Accumulated other comprehensive income (loss), net of income tax: | ||||
Unrealized foreign currency translation gains (losses) | (8,227) | (19,801) | ||
Net unrealized investment gains (losses): | ||||
Net unrealized investment gains not other-than-temporarily impaired | 71,827 | 32,107 | ||
Net unrealized investment losses other-than-temporarily impaired | (65) | (71) | ||
Total stockholders’ equity | 1,220,893 | 1,145,772 | ||
Total liabilities and stockholders’ equity | $ 11,368,683 | $ 10,610,783 | ||
[1] | Includes approximately $0.1 million of other-than-temporary impairment (“OTTI”) losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. | |||
[2] | Includes approximately $0.1 million of OTTI related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | ||
Investments: | ||||
Fixed-maturity securities available for sale, amortized cost | $ 1,660,347 | [1] | $ 1,690,043 | [2] |
Fixed-maturity securities held to maturity, fair value | 500,823 | 371,742 | ||
Equity securities available for sale, cost | 37,966 | 39,969 | ||
Trading securities, cost | 12,268 | 5,383 | ||
Intangible assets, net | ||||
Accumulated amortization on definite-lived intangible assets | $ 74,381 | $ 71,828 | ||
Stockholders’ equity: | ||||
Common stock, par value | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 500,000,000 | 500,000,000 | ||
Common stock, shares issued | 45,962,000 | 48,297,000 | ||
Common stock, shares outstanding | 45,962,000 | 48,297,000 | ||
[1] | Includes approximately $0.1 million of other-than-temporary impairment (“OTTI”) losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. | |||
[2] | Includes approximately $0.1 million of OTTI related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Direct premiums | $ 616,587 | $ 587,882 | $ 1,825,906 | $ 1,753,589 |
Ceded premiums | (399,676) | (393,987) | (1,201,692) | (1,198,382) |
Net premiums | 216,911 | 193,895 | 624,214 | 555,207 |
Commissions and fees | 134,282 | 132,368 | 400,005 | 404,353 |
Investment income net of investment expenses | 24,356 | 22,487 | 74,742 | 67,918 |
Interest expense on surplus note | (4,957) | (3,772) | (13,716) | (8,954) |
Net investment income | 19,399 | 18,715 | 61,026 | 58,964 |
Realized investment gains (losses), including other-than- temporary impairment losses | (35) | (259) | 2,623 | 1,623 |
Other, net | 13,069 | 10,990 | 37,353 | 30,605 |
Total revenues | 383,626 | 355,709 | 1,125,221 | 1,050,752 |
Benefits and expenses: | ||||
Benefits and claims | 93,022 | 88,599 | 272,983 | 253,621 |
Amortization of deferred policy acquisition costs | 45,428 | 40,797 | 127,277 | 113,392 |
Sales commissions | 66,700 | 67,402 | 203,489 | 207,358 |
Insurance expenses | 32,837 | 30,266 | 98,873 | 93,365 |
Insurance commissions | 4,709 | 4,619 | 13,328 | 11,953 |
Interest expense | 7,184 | 8,718 | 21,534 | 26,036 |
Other operating expenses | 45,309 | 40,355 | 137,206 | 126,439 |
Total benefits and expenses | 295,189 | 280,756 | 874,690 | 832,164 |
Income before income taxes | 88,437 | 74,953 | 250,531 | 218,588 |
Income taxes | 30,400 | 25,603 | 87,991 | 76,664 |
Net income | $ 58,037 | $ 49,350 | $ 162,540 | $ 141,924 |
Earnings per share: | ||||
Basic earnings per share | $ 1.22 | $ 0.98 | $ 3.38 | $ 2.73 |
Diluted earnings per share | $ 1.22 | $ 0.98 | $ 3.37 | $ 2.73 |
Weighted-average shares used in computing earnings per share: | ||||
Basic | 47,008 | 50,082 | 47,736 | 51,494 |
Diluted | 47,051 | 50,104 | 47,775 | 51,526 |
Supplemental disclosures: | ||||
Total impairment losses | $ (478) | $ (1,564) | $ (3,308) | $ (2,433) |
Net impairment losses recognized in earnings | (478) | (1,564) | (3,308) | (2,433) |
Other net realized investment gains (losses) | 443 | 1,305 | 5,931 | 4,056 |
Realized investment gains (losses), including other-than- temporary impairment losses | $ (35) | $ (259) | $ 2,623 | $ 1,623 |
Dividends declared per share | $ 0.18 | $ 0.16 | $ 0.52 | $ 0.48 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 58,037 | $ 49,350 | $ 162,540 | $ 141,924 |
Unrealized investment gains (losses): | ||||
Change in unrealized holding gains/(losses) on investment securities | 5,129 | (18,019) | 63,414 | (35,078) |
Reclassification adjustment for realized investment (gains) losses included in net income | 33 | 381 | (2,300) | (1,892) |
Foreign currency translation adjustments: | ||||
Change in unrealized foreign currency translation gains (losses) before income tax expense (benefit) | (3,165) | (16,323) | 11,704 | (33,731) |
Total other comprehensive income (loss) before income taxes | 1,997 | (33,961) | 72,818 | (70,701) |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 1,777 | (6,345) | 21,518 | (13,306) |
Other comprehensive income (loss), net of income taxes | 220 | (27,616) | 51,300 | (57,395) |
Total comprehensive income | $ 58,257 | $ 21,734 | $ 213,840 | $ 84,529 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance, beginning of period at Dec. 31, 2014 | $ 522 | $ 353,337 | $ 795,740 | $ 95,527 | |
Repurchases of common stock | (41) | (187,180) | |||
Share-based compensation | 28,073 | ||||
Net issuance of common stock | 5 | (5) | |||
Adjustments to paid-in capital, other | 1,089 | ||||
Net income | $ 141,924 | 141,924 | |||
Dividends | (24,915) | ||||
Change in foreign currency translation adjustment, net of income tax expense (benefit) | (33,365) | ||||
Change in net unrealized investment gains (losses) not-other-than temporarily impaired, net of income tax expense (benefit) | (24,419) | ||||
Change in net unrealized investment losses other-than-temporarily impaired, net of income tax expense (benefit) | 389 | ||||
Balance, end of period at Sep. 30, 2015 | 1,146,681 | 486 | 195,314 | 912,749 | 38,132 |
Balance, beginning of period at Dec. 31, 2015 | 1,145,772 | 483 | 180,250 | 952,804 | 12,235 |
Repurchases of common stock | (29) | (135,298) | |||
Share-based compensation | 21,564 | ||||
Net issuance of common stock | 6 | (6) | |||
Net income | 162,540 | 162,540 | |||
Dividends | (24,956) | ||||
Change in foreign currency translation adjustment, net of income tax expense (benefit) | 11,574 | ||||
Change in net unrealized investment gains (losses) not-other-than temporarily impaired, net of income tax expense (benefit) | 39,720 | ||||
Change in net unrealized investment losses other-than-temporarily impaired, net of income tax expense (benefit) | 6 | ||||
Balance, end of period at Sep. 30, 2016 | $ 1,220,893 | $ 460 | $ 66,510 | $ 1,090,388 | $ 63,535 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 162,540 | $ 141,924 |
Adjustments to reconcile net income to cash provided by (used in) operating activities: | ||
Change in future policy benefits and other policy liabilities | 177,744 | 167,886 |
Deferral of policy acquisition costs | (281,397) | (243,346) |
Amortization of deferred policy acquisition costs | 127,277 | 113,392 |
Change in income taxes | 51,598 | 31,349 |
Realized investment (gains) losses, including other-than-temporary impairments | (2,623) | (1,623) |
Accretion and amortization of investments | (1,091) | (1,094) |
Depreciation and amortization | 10,879 | 8,201 |
Change in due from reinsurers | (34,907) | (33,248) |
Change in agent balances, due premiums and other receivables | (36,160) | (21,553) |
Trading securities sold, matured, or called (acquired), net | (6,917) | 1,143 |
Share-based compensation | 11,754 | 12,918 |
Change in other operating assets and liabilities, net | (13,809) | (34,957) |
Net cash provided by (used in) operating activities | 164,888 | 140,992 |
Available-for-sale investments sold, matured or called: | ||
Fixed-maturity securities — sold | 76,540 | 104,097 |
Fixed-maturity securities — matured or called | 195,803 | 201,722 |
Equity securities | 4,864 | 4,700 |
Available-for-sale investments acquired: | ||
Fixed-maturity securities | (228,986) | (264,457) |
Equity securities | (1,074) | (794) |
Purchases of property and equipment and other investing activities, net | (11,410) | (5,924) |
Cash collateral received (returned) on loaned securities, net | 24,361 | 33,009 |
Sales (purchases) of short-term investments using securities lending collateral, net | (24,361) | (33,009) |
Net cash provided by (used in) investing activities | 35,737 | 39,344 |
Cash flows from financing activities: | ||
Dividends paid | (24,956) | (24,915) |
Common stock repurchased | (131,570) | (181,121) |
Excess tax benefits on share-based compensation | 1,684 | 4,624 |
Tax withholdings on share-based compensation | (3,757) | (6,101) |
Cash proceeds from stock options exercised | 136 | |
Net cash provided by (used in) financing activities | (158,599) | (207,377) |
Effect of foreign exchange rate changes on cash | 1,003 | (4,395) |
Change in cash and cash equivalents | 43,029 | (31,436) |
Cash and cash equivalents, beginning of period | 152,294 | 191,997 |
Cash and cash equivalents, end of period | $ 195,323 | $ 160,561 |
Description of Business, Basis
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies | (1) Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies Description of Business . Primerica, Inc. (the "Parent Company"), together with its subsidiaries (collectively, "we", "us" or the "Company"), is a leading distributor of financial products to middle income households in the United States and Canada. We assist our clients in meeting their needs for term life insurance, which we underwrite, and mutual funds, annuities and other financial products, which we distribute primarily on behalf of third parties. Our primary subsidiaries include the following entities: Primerica Financial Services, Inc. ("PFS"), a general agency and marketing company; Primerica Life Insurance Company ("Primerica Life"), our principal life insurance company; Primerica Financial Services (Canada) Ltd., a holding company for our Canadian operations, which includes Primerica Life Insurance Company of Canada ("Primerica Life Canada") and PFSL Investments Canada Ltd. ("PFSL Investments Canada"); and PFS Investments Inc. ("PFS Investments"), an investment products company and broker-dealer. Primerica Life, domiciled in Massachusetts, owns National Benefit Life Insurance Company ("NBLIC"), a New York insurance company. We established Peach Re, Inc. ("Peach Re") and Vidalia Re, Inc. (“Vidalia Re”) as special purpose financial captive insurance companies and wholly owned subsidiaries of Primerica Life. Peach Re and Vidalia Re have each entered into separate coinsurance agreements with Primerica Life whereby Primerica Life has ceded certain level premium term life insurance policies to Peach Re and Vidalia Re (respectively, the “Peach Re Coinsurance Agreement” and the “Vidalia Re Coinsurance Agreement”). Basis of Presentation . We prepare our financial statements in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). These principles are established primarily by the Financial Accounting Standards Board ("FASB"). The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect financial statement balances, revenues and expenses and cash flows, as well as the disclosure of contingent assets and liabilities. Management considers available facts and knowledge of existing circumstances when establishing the estimates included in our financial statements. The accompanying unaudited condensed consolidated financial statements contain all adjustments, generally consisting of normal recurring accruals, which are necessary to fairly present the balance sheets as of September 30, 2016 and December 31, 2015 and the statements of income and comprehensive income (loss) for the three and nine months ended September 30, 2016 and 2015, and the statements of stockholders' equity and cash flows for the nine months ended September 30, 2016 and 2015. Results of operations for interim periods are not necessarily indicative of results for the entire year or of the results to be expected in future periods. These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are sufficient to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2015 ("2015 Annual Report"). Use of Estimates. The most significant items that involve a greater degree of accounting estimates and actuarial determinations subject to change in the future are the valuation of investments, deferred policy acquisition costs ("DAC"), liabilities for future policy benefits and unpaid policy claims, and income taxes. Estimates for these and other items are subject to change and are reassessed by management in accordance with U.S. GAAP. Actual results could differ from those estimates. Consolidation. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and those entities required to be consolidated under applicable accounting standards. All material intercompany profits, transactions, and balances among the consolidated entities have been eliminated. Reclassifications. Certain reclassifications have been made to prior-period amounts to conform to current-period reporting classifications. These reclassifications had no impact on net income or total stockholders' equity. Subsequent Events. The Company has evaluated subsequent events for recognition and disclosure for occurrences and transactions after the date of the unaudited condensed consolidated financial statements dated as of September 30, 2016. Significant Accounting Policies . All significant accounting policies remain unchanged from the 2015 Annual Report. Future Application of Accounting Standards. Recent accounting guidance not discussed is not applicable, is immaterial to our financial statements, or did not or is not expected to have a material impact on our business. For additional information on new accounting pronouncements and recent accounting principles and their impact, if any, on our financial position or results of operations, see Note 1 (Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies) in our 2015 Annual Report and in the unaudited condensed consolidated financial statements included in our Quarterly Report on Form 10-Q for the quarterly periods ended March 31, 2016 and June 30, 2016. |
Segment and Geographical Inform
Segment and Geographical Information (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | (2) Segment and Geographical Information Segments. We have two primary operating segments — Term Life Insurance and Investment and Savings Products. We also have a Corporate and Other Distributed Products segment. Results of operations by segment were as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (In thousands) Revenues: Term life insurance segment $ 222,598 $ 197,205 $ 639,253 $ 563,795 Investment and savings products segment 130,080 128,596 387,604 392,561 Corporate and other distributed products segment 30,948 29,908 98,364 94,396 Total revenues $ 383,626 $ 355,709 $ 1,125,221 $ 1,050,752 Income (loss) before income taxes: Term life insurance segment $ 58,137 $ 46,519 $ 162,234 $ 127,284 Investment and savings products segment 35,760 34,811 103,514 107,600 Corporate and other distributed products segment (5,460 ) (6,377 ) (15,217 ) (16,296 ) Total income before income taxes $ 88,437 $ 74,953 $ 250,531 $ 218,588 Total assets by segment were as follows: September 30, 2016 December 31, 2015 (In thousands) Assets: Term life insurance segment $ 5,878,013 $ 5,638,682 Investment and savings products segment (1) 2,462,111 2,157,548 Corporate and other distributed products segment 3,028,559 2,814,553 Total assets $ 11,368,683 $ 10,610,783 (1) See “Management's Discussion and Analysis of Financial Condition and Results of Operations” included elsewhere in this report for more information regarding the results of our operating segments. Geographical Information. Results of operations by country and long-lived assets, primarily tangible assets reported in Other assets in our unaudited condensed consolidated balance sheets, were as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (In thousands) Revenues by country: United States $ 323,560 $ 298,671 $ 947,618 $ 876,363 Canada 60,066 57,038 177,603 174,389 Total revenues $ 383,626 $ 355,709 $ 1,125,221 $ 1,050,752 Income before income taxes by country: United States $ 71,525 $ 61,116 $ 200,137 $ 170,172 Canada 16,912 13,837 50,394 48,416 Total income before income taxes $ 88,437 $ 74,953 $ 250,531 $ 218,588 September 30, 2016 December 31, 2015 (In thousands) Long-lived assets by country: United States $ 27,997 $ 28,621 Canada 865 787 Total long-lived assets $ 28,862 $ 29,408 |
Investments (Notes)
Investments (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | (3) Investments Available-for-sale Securities. The period-end cost or amortized cost, gross unrealized gains and losses, and fair value of available-for-sale fixed-maturity and equity securities follow: September 30, 2016 Cost or amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) Securities available-for-sale, carried at fair value: Fixed-maturity securities: U.S. government and agencies $ 15,515 $ 547 $ (1 ) $ 16,061 Foreign government 121,993 9,843 (106 ) 131,730 States and political subdivisions 43,326 3,167 (34 ) 46,459 Corporates 1,246,969 78,951 (2,840 ) 1,323,080 Residential mortgage-backed securities 78,549 6,836 (107 ) 85,278 Commercial mortgage-backed securities 104,471 4,355 (51 ) 108,775 Other asset-backed securities 49,524 352 (85 ) 49,791 Total fixed-maturity securities (1) 1,660,347 104,051 (3,224 ) 1,761,174 Equity securities 37,966 10,147 (574 ) 47,539 Total fixed-maturity and equity securities $ 1,698,313 $ 114,198 $ (3,798 ) $ 1,808,713 (1) 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 Residential mortgage-backed securities 94,532 6,814 (121 ) 101,225 Commercial mortgage-backed securities 97,666 2,875 (555 ) 99,986 Other asset-backed securities 46,996 129 (79 ) 47,046 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) All of our available-for-sale mortgage- and asset-backed securities represent variable interests in variable interest entities ("VIEs"). We are not the primary beneficiary of these VIEs because we do not have the power to direct the activities that most significantly impact the entities’ economic performance. The maximum exposure to loss as a result of our involvement in these VIEs equals the carrying value of the securities. The scheduled maturity distribution of the available-for-sale fixed-maturity portfolio at September 30, 2016 follows: Amortized cost Fair value (In thousands) Due in one year or less $ 94,127 $ 95,946 Due after one year through five years 690,909 734,979 Due after five years through 10 years 594,927 632,004 Due after 10 years 47,840 54,401 1,427,803 1,517,330 Mortgage-and asset-backed securities 232,544 243,844 Total fixed-maturity securities $ 1,660,347 $ 1,761,174 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 available-for-sale investments was as follows: September 30, 2016 December 31, 2015 (In thousands) Net unrealized investment gains including OTTI: Fixed-maturity and equity securities $ 110,400 $ 49,286 OTTI 103 109 Net unrealized investment gains excluding OTTI 110,503 49,395 Deferred income taxes (38,676 ) (17,288 ) Net unrealized investment gains excluding OTTI, net of tax $ 71,827 $ 32,107 Trading Securities. We maintain a portfolio mostly of fixed-maturity securities that are classified as trading securities. The carrying values of the fixed-maturity securities classified as trading securities were approximately $12.3 million and $5.4 million as of September 30, 2016 and December 31, 2015, respectively. Held-to-maturity Security. Concurrent with the execution of the Vidalia Re Coinsurance Agreement, Vidalia Re entered into a Surplus Note Purchase Agreement (the "Surplus Note Purchase Agreement") with Hannover Life Reassurance Company of America and certain of its affiliates (collectively, “Hannover Re”) and a newly formed limited liability company (the "LLC") owned by a third party service provider. Under the Surplus Note Purchase Agreement, Vidalia Re issued a surplus note (the “Surplus Note”) to the LLC in exchange for a credit enhanced note from the LLC with an equal principal amount (the “LLC Note”). The principal amount of both the LLC Note and the Surplus Note will fluctuate over time to coincide with the amount of reserves contractually supported under the Vidalia Re Coinsurance Agreement. Both the LLC Note and the Surplus Note mature on December 31, 2029 and bear interest at an annual interest rate of 4.50%. The LLC Note is guaranteed by Hannover Re through a credit enhancement feature in exchange for a fee, which is reflected in interest expense on our unaudited condensed consolidated statements of income. The LLC is a variable interest entity as its owner does not have an equity investment at risk that is sufficient to permit the LLC to finance its activities without Vidalia Re or Hannover Re. The Parent Company, Primerica Life, and Vidalia Re share the power to direct the activities of the LLC with Hannover Re, but do not have the obligation to absorb losses or the right to receive any residual returns related to the LLC’s primary risks or sources of variability. Through the credit enhancement feature, Hannover Re is the ultimate risk taker in this transaction and bears the obligation to absorb the LLC’s losses in the event of a Surplus Note default in exchange for the fee. Accordingly, the Company is not the primary beneficiary of the LLC and does not consolidate the LLC within its consolidated financial statements. The LLC Note is classified as a held-to-maturity debt security in the Company’s invested asset portfolio as we have the positive intent and ability to hold the security until maturity. As of September 30, 2016, the LLC Note, which was rated A+ See Note 6 (Debt) for more information on the Surplus Note. Investments on Deposit with Governmental Authorities. As required by law, we have investments on deposit with governmental authorities and banks for the protection of policyholders. The fair values of investments on deposit were approximately $19.4 million and $18.1 million as of September 30, 2016 and December 31, 2015, respectively. Securities Lending Transactions. We participate in securities lending transactions with broker-dealers and other financial institutions to increase investment income with minimal risk. We require minimum collateral on securities loaned equal to 102% of the fair value of the loaned securities. We accept collateral in the form of securities, which we are not able to sell or encumber, and to the extent the collateral declines in value below 100%, we require additional collateral from the borrower. Any securities collateral received is not reflected on our unaudited condensed consolidated balance sheets. We also accept collateral in the form of cash, all of which we reinvest. For loans involving unrestricted cash collateral, the collateral is reported as an asset with a corresponding liability representing our obligation to return the collateral. We continue to carry the loaned securities as invested assets on our unaudited condensed consolidated balance sheets during the terms of the loans, and we do not report them as sales. Cash collateral received and reinvested was approximately $95.8 million and $71.5 million as of September 30, 2016 and December 31, 2015, respectively. Investment Income. The components of net investment income were as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (In thousands) Fixed-maturity securities (available-for-sale) $ 18,578 $ 18,786 $ 56,204 $ 58,132 Fixed-maturity security (held-to-maturity) 4,957 3,772 13,716 8,954 Equity securities 505 514 1,527 1,533 Policy loans and other invested assets 318 354 998 1,049 Cash and cash equivalents 148 51 497 141 Market return on deposit asset underlying 10% coinsurance agreement 1,058 220 5,443 1,776 Gross investment income 25,564 23,697 78,385 71,585 Investment expenses (1,208 ) (1,210 ) (3,643 ) (3,667 ) Investment income net of investment expenses 24,356 22,487 74,742 67,918 Interest expense on surplus note (4,957 ) (3,772 ) (13,716 ) (8,954 ) Net investment income $ 19,399 $ 18,715 $ 61,026 $ 58,964 The components of net realized investment gains (losses) as well as details on gross realized investment gains and losses and proceeds from sales or other redemptions were as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (In thousands) Net realized investment gains (losses): Gross gains from sales $ 637 $ 1,209 $ 6,322 $ 4,610 Gross losses from sales (192 ) (26 ) (714 ) (285 ) Other-than-temporary impairment losses (478 ) (1,564 ) (3,308 ) (2,433 ) Gains (losses) from bifurcated options (2 ) 122 323 (269 ) Net realized investment gains (losses) $ (35 ) $ (259 ) $ 2,623 $ 1,623 Other-Than-Temporary Impairment. 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. For additional information, see Note 4 (Investments) to the consolidated financial statements in our 2015 Annual Report. Available-for-sale fixed-maturity and equity securities with a cost basis in excess of their fair values were approximately $152.4 million and $626.0 million as of September 30, 2016 and December 31, 2015, respectively. The following tables summarize, for all available-for-sale securities in an unrealized loss position, the aggregate fair value and the gross unrealized loss by length of time such securities have continuously been in an unrealized loss position: September 30, 2016 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 $ 1,729 $ (1 ) 1 $ - $ - - Foreign government 3,398 (19 ) 2 3,134 (87 ) 3 States and political subdivisions 2,844 (34 ) 4 - - - Corporates 31,616 (321 ) 29 58,781 (2,519 ) 65 Residential mortgage-backed securities 2,451 (39 ) 5 4,515 (68 ) 8 Commercial mortgage-backed securities 11,873 (18 ) 11 7,136 (33 ) 10 Other asset-backed securities 11,755 (53 ) 14 4,108 (32 ) 7 Total fixed-maturity securities 65,666 (485 ) 77,674 (2,739 ) Equity securities 1,752 (123 ) 11 3,500 (451 ) 9 Total fixed-maturity and equity securities $ 67,418 $ (608 ) $ 81,174 $ (3,190 ) 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 Residential mortgage-backed securities 9,681 (61 ) 9 4,762 (60 ) 7 Commercial mortgage-backed securities 56,216 (493 ) 49 3,199 (62 ) 6 Other asset-backed securities 26,611 (77 ) 23 260 (2 ) 2 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 ) The amortized cost and fair value of available-for-sale fixed-maturity securities in default were as follows: September 30, 2016 December 31, 2015 Amortized cost Fair value Amortized cost Fair value (In thousands) Fixed-maturity securities in default $ 5 $ 93 $ 138 $ 262 Impairment charges recognized in earnings on available-for-sale securities were as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (In thousands) Impairments on fixed-maturity securities not in default $ 466 $ 1,287 $ 3,145 $ 2,075 Impairments on fixed-maturity securities in default 2 2 121 7 Impairments on equity securities 10 275 42 351 Total impairment charges $ 478 $ 1,564 $ 3,308 $ 2,433 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 September 30, 2016, the unrealized losses on our available-for-sale invested asset portfolio were largely caused by interest rate sensitivity and changes in credit spreads. We believe that fluctuations caused by movements in interest rates and credit spreads have little bearing on the recoverability of our investments. We do not consider these investments to be other-than-temporarily impaired because we have the ability to hold these investments until maturity or a market price recovery, and we have no present intention to dispose of them. Net impairment losses recognized in earnings for available-for-sale securities were as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (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 $ 445 $ 150 $ 1,374 $ 251 Less portion of OTTI loss recognized in accumulated other comprehensive income (loss) - - - - Net impairment losses recognized in earnings for securities which the Company does not intend to sell or more-likely-than-not will not be required to sell before recovery 445 150 1,374 251 OTTI losses recognized in earnings for securities which the Company intends to sell or more-likely-than-not will be required to sell before recovery 33 1,414 1,934 2,182 Net impairment losses recognized in earnings $ 478 $ 1,564 $ 3,308 $ 2,433 The rollforward of the OTTI recognized in net income for all fixed-maturity securities still held follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (In thousands) Cumulative OTTI recognized in net income for securities still held, beginning of period $ 7,489 $ 7,701 $ 11,856 $ 9,550 Additions for OTTI securities where no OTTI were recognized prior to the beginning of the period 451 336 1,682 403 Additions for OTTI securities where OTTI have been recognized prior to the beginning of the period 17 953 1,584 1,679 Reductions due to sales, maturities, calls, amortization or increases in cash flows expected to be collected over the remaining life of credit impaired securities (640 ) (138 ) (6,134 ) (1,503 ) Reductions for exchanges of securities previously impaired (112 ) - (1,783 ) (1,277 ) Cumulative OTTI recognized in net income for securities still held, end of period $ 7,205 $ 8,852 $ 7,205 $ 8,852 As of September 30, 2016, no impairment losses have been recognized on the LLC Note held-to-maturity security. Derivatives. Embedded conversion options associated with fixed-maturity securities are bifurcated from the fixed-maturity security host contracts and separately recognized as equity securities. The change in fair value of these bifurcated conversion options is reflected in realized investment gains (losses), including OTTI losses. As of September 30, 2016 and December 31, 2015, the fair value of these bifurcated options was approximately $4.6 million and $5.4 million, respectively. We have a deferred loss related to closed forward contracts, which were settled several years ago, that were used to mitigate our exposure to foreign currency exchange rates that resulted from the net investment in our Canadian operations. The amount of deferred loss included in accumulated other comprehensive income was approximately $26.4 million |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | (4) Fair Value of Financial Instruments Fair value is the price that would be received upon the sale of an asset in an orderly transaction between market participants at the measurement date. Fair value measurements are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our view of market assumptions in the absence of observable market information. We classify and disclose all invested assets carried at fair value in one of the following three categories: • Level 1. Quoted prices for identical instruments in active markets. Level 1 primarily consists of financial instruments whose value is based on quoted market prices in active markets, such as exchange-traded common stocks and actively traded mutual fund investments; • Level 2. Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 includes those financial instruments that are valued using industry-standard pricing methodologies, models or other valuation methodologies. Various inputs are considered in deriving the fair value of the underlying financial instrument, including interest rate, credit spread, and foreign exchange rates. All significant inputs are observable, or derived from observable information in the marketplace or are supported by observable levels at which transactions are executed in the marketplace. Financial instruments in this category primarily include: certain public and private corporate fixed-maturity and equity securities; government or agency securities; certain mortgage- and asset-backed securities and bifurcated conversion options; and • Level 3. Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Level 3 consists of financial instruments whose fair value is estimated based on industry-standard pricing methodologies and models using significant inputs not based on, nor corroborated by, readily available market information. Valuations for this category primarily consist of non-binding broker quotes. Financial instruments in this category primarily include less liquid fixed-maturity corporate securities, 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: September 30, 2016 Level 1 Level 2 Level 3 Total (In thousands) Fair value assets: Fixed-maturity securities: U.S. government and agencies $ - $ 16,061 $ - $ 16,061 Foreign government - 131,730 - 131,730 States and political subdivisions - 46,459 - 46,459 Corporates 3,374 1,317,982 1,724 1,323,080 Residential mortgage-backed securities - 83,984 1,294 85,278 Commercial mortgage-backed securities - 108,775 - 108,775 Other asset-backed securities - 46,321 3,470 49,791 Total fixed-maturity securities 3,374 1,751,312 6,488 1,761,174 Equity securities 41,821 5,644 74 47,539 Trading securities - 12,259 - 12,259 Separate accounts - 2,347,816 - 2,347,816 Total fair value assets $ 45,195 $ 4,117,031 $ 6,562 $ 4,168,788 Fair value liabilities: Separate accounts $ - $ 2,347,816 $ - $ 2,347,816 Total fair value liabilities $ - $ 2,347,816 $ - $ 2,347,816 December 31, 2015 Level 1 Level 2 Level 3 Total (In thousands) Fair value assets: 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 Residential mortgage-backed securities - 100,493 732 101,225 Commercial mortgage-backed securities - 99,986 - 99,986 Other asset-backed securities - 47,046 - 47,046 Total 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 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 asset-backed securities) with limited trading activity, third-party pricing services generally use industry-standard pricing methodologies that incorporate market information, such as index prices, 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: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (In thousands) Level 3 assets, beginning of period $ 717 $ 862 $ 783 $ 1,165 Net unrealized gains (losses) included in other comprehensive income 12 2 17 (4 ) Realized gains (losses) and accretion (amortization) recognized in earnings, including OTTI 1 - 6 - Purchases (1) 4,183 - 4,183 - Sales - - (3 ) - Settlements (25 ) (35 ) (98 ) (111 ) Transfers into Level 3 1,675 - 1,676 2 Transfers out of Level 3 (1 ) (2 ) (2 ) (225 ) Level 3 assets, end of period $ 6,562 $ 827 $ 6,562 $ 827 (1) During the three and nine months ended September 30, 2016, purchases of Level 3 assets primarily consisted of newly issued fixed maturity securities in the third quarter for which observable inputs, most notably quoted prices, used to derive valuations are not yet readily available. We obtain independent pricing quotes based on observable inputs as of the end of the reporting period for all securities in Level 2. Those inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, market bids/offers, quoted prices for similar instruments in markets that are not active, and other relevant data. We monitor these inputs for market indicators, industry and economic events. We recognize transfers into new levels and out of previous levels as of the end of the reporting period, including interim reporting periods, as applicable. The table below is a summary of the estimated fair value for financial instruments. September 30, 2016 December 31, 2015 Carrying value Estimated fair value Carrying value Estimated fair value (In thousands) Assets: Fixed-maturity securities (available-for-sale) $ 1,761,174 $ 1,761,174 $ 1,731,459 $ 1,731,459 Fixed-maturity security (held-to-maturity) 454,000 500,823 365,220 371,742 Equity securities 47,539 47,539 47,839 47,839 Trading securities 12,259 12,259 5,358 5,358 Policy loans 30,801 30,801 28,627 28,627 Deposit asset underlying 10% coinsurance agreement 198,275 198,275 181,889 181,889 Separate accounts 2,347,816 2,347,816 2,063,899 2,063,899 Liabilities: Notes payable (1) $ 372,827 $ 410,296 $ 372,552 $ 398,649 Surplus note (1) 453,247 498,256 364,424 371,498 Separate accounts 2,347,816 2,347,816 2,063,899 2,063,899 (1) Carrying value amounts shown are net of issuance costs. The fair values of financial instruments presented above are estimates of the fair values at a specific point in time using various sources and methods, including market quotations and a complex matrix system that takes into account issuer sector, quality, and spreads in the current marketplace. Recurring fair value measurements. Estimated fair values of investments in available-for-sale fixed-maturity securities are principally a function of current spreads and interest rates that are corroborated by independent third-party data. Therefore, the fair values presented are indicative of amounts we could realize or settle at the respective balance sheet date. We do not necessarily intend to dispose of or liquidate such instruments prior to maturity. Trading securities, which primarily consist of fixed-maturity securities, are carried at fair value. Equity securities, including common and nonredeemable preferred stocks, are carried at fair value. Segregated funds in separate accounts are carried at the underlying value of the variable insurance contracts, which is fair value. Nonrecurring fair value measurements. The estimated fair value of the held-to-maturity fixed-maturity security, which is classified as a Level 3 fair value measurement, is derived using the credit spread on similarly rated debt securities and the hypothetical spread of the security’s credit enhancement feature. Policy loans, which are categorized as Level 3 fair value measurements, are carried at the unpaid principal balances. The fair value of policy loans approximate the unpaid principal balances as the timing of repayment is uncertain and the loans are collateralized by the amount of the policy. The deposit asset underlying a 10% coinsurance agreement represents the value of the assets necessary to back the economic reserves held in support of the reinsurance agreement. The carrying value of this deposit asset approximates fair value, which is categorized as Level 3 in the fair value hierarchy. Notes payable represent our publicly-traded senior notes and are valued as a Level 2 fair value measurement using the quoted market price for our notes. The estimated fair value of the Surplus Note is derived by using an assumed credit spread we would expect if Vidalia Re was a credit-rated entity and the hypothetical spread of the Surplus Note’s subordinated structure. The Surplus Note is classified as a Level 3 fair value measurement. The carrying amounts for cash and cash equivalents, receivables, accrued investment income, accounts payable, cash collateral and payables for security transactions approximate their fair values due to the short-term nature of these instruments. Consequently, such financial instruments are not included in the above table. |
Reinsurance (Notes)
Reinsurance (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | (5) Reinsurance We use reinsurance extensively, which has a significant effect on our results of operations. Reinsurance arrangements do not relieve us of our primary obligation to the policyholder. We monitor the concentration of credit risk we have with any reinsurer, as well as the financial condition of the reinsurers. Details on in-force life insurance follow: September 30, 2016 December 31, 2015 (Dollars in thousands) Direct life insurance in force $ 725,613,934 $ 696,884,429 Amounts ceded to other companies (638,417,864 ) (616,252,839 ) Net life insurance in force $ 87,196,070 $ 80,631,590 Percentage of reinsured life insurance in force 88 % 88 % Due from reinsurers includes ceded reserve balances and ceded claim liabilities. Reinsurance receivable and financial strength ratings by reinsurer were as follows: September 30, 2016 December 31, 2015 Reinsurance receivable A.M. Best rating Reinsurance receivable A.M. Best rating (In thousands) Pecan Re Inc. (1) (2) $ 2,718,356 NR $ - - Prime Reinsurance Company (2) - - 2,692,721 NR SCOR Global Life Reinsurance Companies (3) 358,815 A 362,195 A Munich Re Life Insurance Company of Vermont (2) (5) 290,384 NR 270,306 NR Swiss Re Life & Health America Inc. (4) 246,036 A+ 254,461 A+ American Health and Life Insurance Company (2) 177,295 B 176,790 B Munich American Reassurance Company 106,446 A+ 101,466 A+ Korean Reinsurance Company 96,066 A 91,605 A RGA Reinsurance Company 83,313 A+ 81,217 A+ TOA Reinsurance Company 22,339 A+ 22,242 A+ Hannover Life Reassurance Company 22,606 A+ 20,650 A+ All other reinsurers 39,881 - 36,975 - Due from reinsurers $ 4,161,537 $ 4,110,628 NR – not rated (1) (2) Includes balances ceded under coinsurance transactions of term life insurance policies that were in force as of December 31, 2009. Amounts shown are net of their share of the reinsurance receivable from other reinsurers. (3) Includes amounts ceded to Transamerica Reinsurance Companies and fully retroceded to SCOR Global Life Reinsurance Companies. (4) Includes amounts ceded to Lincoln National Life Insurance and fully (5) Prior to January 1, 2016, Primerica Life had a coinsurance agreement in place with Prime Reinsurance Company (“Prime Re”), an insurance company owned by Citigroup, under which we ceded 80% of the risks and rewards of our U.S. (except New York) term life insurance policies that were in force as of December 31, 2009 (the “80% Coinsurance Agreement”). Beginning on January 1, 2016, Pecan Re Inc. (“Pecan Re”), an insurance company owned by Swiss Re Life & Health America Inc. (“Swiss Re”), assumed Prime Re’s obligations under the 80% Coinsurance Agreement through a novation agreement (the “Novation Agreement”). In addition, the counterparties to the related trust and capital maintenance agreements that provide Primerica Life with statutory reinsurance credit for the 80% Coinsurance Agreement were replaced by Pecan Re and Swiss Re, respectively. No material terms and conditions of the 80% Coinsurance Agreement and the related trust and capital maintenance agreements were modified. A separate 10% coinsurance agreement remains in place between Primerica Life and Prime Re (the “10% Coinsurance Agreement”) that includes an experience refund provision and does not satisfy U.S. GAAP risk transfer rules. In exchange for our consent to the Novation Agreement, the finance charge on the statutory reserves in excess of economic reserves funded by Prime Re in support of the 10% Coinsurance Agreement was reduced from 3.0% to 2.0% beginning on July 1, 2015 and then from 2.0% to 0.5% beginning on January 1, 2016. |
Debt (Notes)
Debt (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | (6) Debt Notes Payable. At September 30, 2016, the Company had $375.0 million of publicly-traded, senior unsecured notes with an annual interest rate of 4.75% that are scheduled to mature on July 15, 2022 (the "Senior Notes"). As of September 30, 2016, we were in compliance with the covenants of the Senior Notes. No events of default occurred on the Senior Notes during the three months ended September 30, 2016. Further discussion on the Company’s notes payable is included in Note 10 (Debt) to our consolidated financial statements within our 2015 Annual Report. Surplus Note. At September 30, 2016, the principal amount outstanding on the Surplus Note issued by Vidalia Re was $454.0 million, equal to the principal amount of the LLC Note invested asset. The principal amount of the Surplus Note and the LLC Note will fluctuate over time to coincide with the amount of reserves being contractually supported. Both the LLC Note and the Surplus Note mature on December 31, 2029 and bear interest at an annual interest rate of 4.50%. Based on the estimated reserves for ceded policies issued in 2011, 2012, 2013, and 2014, the maximum principal amounts of the Surplus Note and the LLC Note are expected to be approximately $915.0 million each. Further discussion on the Company’s Surplus Note and LLC Note are included in Note 10 (Debt) and Note 4 (Investments) to our consolidated financial statements within our 2015 Annual Report. |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | (7) Stockholders’ Equity A reconciliation of the number of shares of our common stock follows. Nine months ended September 30, 2016 2015 (In thousands) Common stock, beginning of period 48,297 52,169 Shares issued upon the exercise of stock options 108 89 Shares of common stock issued upon lapse of restricted stock units ("RSUs") 426 407 Common stock retired (2,869 ) (4,094 ) Common stock, end of period 45,962 48,571 The above reconciliation excludes RSUs, which do not have voting rights. As the RSUs lapse, we issue common shares with voting rights. As of September 30, 2016, we had a total of approximately 1.1 million RSUs outstanding, excluding the performance-based vesting stock units (“PSUs”) discussed in Note 9 (Share-Based Transactions). Our Board of Directors authorized a share repurchase program for up to $200.0 million of our outstanding common stock in August 2015 (the “share repurchase program”) for purchases through December 31, 2016. Under the share repurchase program, we repurchased 3,831,300 shares of our common stock in open market transactions for an aggregate purchase price of approximately $181.5 million through September 30, 2016. As of September 30, 2016, there is approximately $18.5 million |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (8) Earnings Per Share The Company has outstanding common stock and equity awards that consist of restricted stock, RSUs, PSUs and stock options. The restricted stock and RSUs maintain non-forfeitable dividend rights that result in dividend payment obligations on a one-to-one ratio with common shares for any future dividend declarations. Unvested restricted stock and unvested RSUs are deemed participating securities for purposes of calculating earnings per share ("EPS") as they maintain dividend rights. We calculate EPS using the two-class method. Under the two-class method, we allocate earnings to common shares (excluding unvested restricted stock) and vested RSUs outstanding for the period. Earnings attributable to unvested participating securities, along with the corresponding share counts, are excluded from EPS as reflected in our unaudited condensed consolidated statements of income. In calculating basic EPS, we deduct any dividends and undistributed earnings allocated to unvested restricted stock and unvested RSUs from net income and then divide the result by the weighted-average number of common shares and vested RSUs outstanding for the period. We determine the potential dilutive effect of PSUs and stock options outstanding (“contingently issuable shares”) on EPS using the treasury-stock method. Under this method, we determine the proceeds that would be received from the issuance of the contingently issuable shares if the end of the reporting period were the end of the contingency period. The proceeds from the contingently issuable shares include: the remaining unrecognized compensation expense of the awards, the cash received for the exercise price on stock options, and the resulting effect on the income tax deduction from the vesting of PSUs and the exercise of stock options. We then use the average market price of our common shares during the period the contingently issuable shares were outstanding to determine how many shares we could repurchase with the proceeds raised from the issuance of the contingently issuable shares. The net incremental share count issued represents the potential dilutive securities. We then reallocate earnings to common shares and vested RSUs by incorporating the increased fully diluted share count to determine diluted EPS. The calculation of basic and diluted EPS follows. Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (In thousands, except per-share amounts) Basic EPS Numerator: Net income $ 58,037 $ 49,350 $ 162,540 $ 141,924 Income attributable to unvested participating securities (494 ) (379 ) (1,353 ) (1,196 ) Net income used in calculating basic EPS $ 57,543 $ 48,971 $ 161,187 $ 140,728 Denominator: Weighted-average vested shares 47,008 50,082 47,736 51,494 Basic EPS $ 1.22 $ 0.98 $ 3.38 $ 2.73 Diluted EPS Numerator: Net income $ 58,037 $ 49,350 $ 162,540 $ 141,924 Income attributable to unvested participating securities (493 ) (379 ) (1,352 ) (1,196 ) Net income used in calculating diluted EPS $ 57,544 $ 48,971 $ 161,188 $ 140,728 Denominator: Weighted-average vested shares 47,008 50,082 47,736 51,494 Dilutive effect of incremental shares to be issued for contingently issuable shares 43 22 39 32 Weighted-average shares used in calculating diluted EPS 47,051 50,104 47,775 51,526 Diluted EPS $ 1.22 $ 0.98 $ 3.37 $ 2.73 |
Share-Based Transactions (Notes
Share-Based Transactions (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Transactions | (9) Share-Based Transactions The Company has outstanding equity awards under its Omnibus Incentive Plan ("OIP"). The OIP provides for the issuance of equity awards, including stock options, stock appreciation rights, restricted stock, deferred stock, RSUs, unrestricted stock, as well as cash-based awards. In addition to time-based vesting requirements, awards granted under the OIP also may be subject to specified performance criteria. Since 2010, the Company has issued equity awards to our management (officers and other key employees), non-employee directors, and sales force leaders under the OIP. For more information on equity awards granted under the OIP, see Note 14 (Share-Based Transactions) to our consolidated financial statements within our 2015 Annual Report. In connection with our granting of equity awards to our management and members of the Board of Directors, we recognize expense over the requisite service period of the equity award. Additionally, to the extent that equity awards to members of our sales force are an incremental direct cost of successful acquisitions of life insurance policies that result directly from and are essential to the policy acquisition(s) and would not have been incurred had the policy acquisition(s) not occurred, we defer and amortize the fair value of these awards in the same manner as other deferred policy acquisition costs. The impacts of equity awards granted are as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (In thousands) Total equity awards expense recognized $ 1,723 $ 2,056 $ 11,754 $ 12,918 Quarterly incentive awards expense deferred 2,732 3,412 8,126 10,531 On February 24, 2016, the Compensation Committee of the Board of Directors granted the following equity awards to employees in connection with the annual approval of management incentive compensation: 1. 204,558 RSUs awarded to management with a measurement-date fair value of $41.88 per unit that have time-based vesting requirements with equal and annual graded vesting over approximately three years subsequent to the grant date. 2. 89,540 stock options awarded to the four members of our executive management team (the “executive team”) with a measurement-date fair value of $8.21 per option that have time-based vesting requirements with equal and annual graded vesting over approximately three years subsequent to the grant date. 3. 18,385 PSUs awarded under the OIP to the executive team with a measurement-date fair value of $41.88 per unit. The PSUs will be earned on March 1, 2019 contingent upon the Company achieving a target annual average three-year return on adjusted equity (“ROAE”) for the period from January 1, 2016 through December 31, 2018. The actual number of PSUs that will vest will vary based on the actual ROAE relative to the target ROAE and can range from zero PSUs to 27,577. All awards granted to employees on February 24, 2016 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 number of PSUs that will ultimately vest for a retirement-eligible employee is equal to the amount calculated using the Company’s actual cumulative three-year ROAE ending on December 31, 2018, even if that employee retires prior to the completion of the three year performance period. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | (10) Commitments and Contingent Liabilities Letter of Credit (“LOC”). Peach Re maintains a credit facility agreement with Deutsche Bank (the "Credit Facility Agreement") to support certain obligations for a portion of the Regulation XXX reserves related to the Peach Re Coinsurance Agreement. Under the Credit Facility Agreement, Deutsche Bank issued a letter of credit for the benefit of Primerica Life with a term ending on January 15, 2026. As of September 30, 2016, the Company was in compliance with all financial covenants under the Credit Facility Agreement. At September 30, 2016, the amount of the LOC outstanding was approximately $422.9 million. This amount will decline over the remaining term of the LOC to correspond with declines in the Regulation XXX reserves. Further discussion on the Company’s letter of credit is included in Note 16 (Commitments and Contingent Liabilities) to our consolidated financial statements within our 2015 Annual Report. Contingent Liabilities. The Company is involved from time to time in legal disputes, regulatory inquiries and arbitration proceedings in the normal course of business. These disputes are subject to uncertainties, including the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation. As such, the Company is unable to estimate the possible loss or range of loss that may result from these matters 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. Other jurisdictions may pursue similar audits 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. |
Other Comprehensive Income
Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Other Comprehensive Income | (11) Other Comprehensive Income The components of other comprehensive income (“OCI”), including the income tax expense or benefit allocated to each component, were as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (In thousands) Foreign currency translation adjustments: Change in unrealized foreign currency translation gains (losses) before income taxes $ (3,165 ) $ (16,323 ) $ 11,704 $ (33,731 ) Income tax expense (benefit) on unrealized foreign currency translation gains (losses) (29 ) (171 ) 130 (366 ) Change in unrealized foreign currency translation gains (losses), net of income taxes $ (3,136 ) $ (16,152 ) $ 11,574 $ (33,365 ) Unrealized gain (losses) on available-for-sale securities: Change in unrealized holding gains (losses) arising during period before income taxes $ 5,129 $ (18,019 ) $ 63,414 $ (35,078 ) Income tax expense (benefit) on unrealized holding gains (losses) arising during period 1,795 (6,308 ) 22,193 (12,278 ) Change in unrealized holding gains (losses) on available-for-sale securities arising during period, net of income taxes 3,334 (11,711 ) 41,221 (22,800 ) Reclassification from accumulated OCI to net income for (gains) losses realized on available-for-sale securities 33 381 (2,300 ) (1,892 ) Income tax (expense) benefit on (gains) losses reclassified from accumulated OCI to net income 11 134 (805 ) (662 ) Reclassification from accumulated OCI to net income for (gains) losses realized on available-for-sale securities, net of income taxes 22 247 (1,495 ) (1,230 ) Change in unrealized gains (losses) on available-for-sale securities, net of income taxes and reclassification adjustment $ 3,356 $ (11,464 ) $ 39,726 $ (24,030 ) |
Description of Business, Basi19
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation . We prepare our financial statements in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). These principles are established primarily by the Financial Accounting Standards Board ("FASB"). The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect financial statement balances, revenues and expenses and cash flows, as well as the disclosure of contingent assets and liabilities. Management considers available facts and knowledge of existing circumstances when establishing the estimates included in our financial statements. The accompanying unaudited condensed consolidated financial statements contain all adjustments, generally consisting of normal recurring accruals, which are necessary to fairly present the balance sheets as of September 30, 2016 and December 31, 2015 and the statements of income and comprehensive income (loss) for the three and nine months ended September 30, 2016 and 2015, and the statements of stockholders' equity and cash flows for the nine months ended September 30, 2016 and 2015. Results of operations for interim periods are not necessarily indicative of results for the entire year or of the results to be expected in future periods. These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are sufficient to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2015 ("2015 Annual Report"). |
Use of Estimates | Use of Estimates. The most significant items that involve a greater degree of accounting estimates and actuarial determinations subject to change in the future are the valuation of investments, deferred policy acquisition costs ("DAC"), liabilities for future policy benefits and unpaid policy claims, and income taxes. Estimates for these and other items are subject to change and are reassessed by management in accordance with U.S. GAAP. Actual results could differ from those estimates. |
Consolidation | Consolidation. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and those entities required to be consolidated under applicable accounting standards. All material intercompany profits, transactions, and balances among the consolidated entities have been eliminated. |
Reclassifications | Reclassifications. Certain reclassifications have been made to prior-period amounts to conform to current-period reporting classifications. These reclassifications had no impact on net income or total stockholders' equity. |
Subsequent Events | Subsequent Events. The Company has evaluated subsequent events for recognition and disclosure for occurrences and transactions after the date of the unaudited condensed consolidated financial statements dated as of September 30, 2016. |
Significant Accounting Policies | Significant Accounting Policies . All significant accounting policies remain unchanged from the 2015 Annual Report. |
New Accounting Principles | Future Application of Accounting Standards. Recent accounting guidance not discussed is not applicable, is immaterial to our financial statements, or did not or is not expected to have a material impact on our business. For additional information on new accounting pronouncements and recent accounting principles and their impact, if any, on our financial position or results of operations, see Note 1 (Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies) in our 2015 Annual Report and in the unaudited condensed consolidated financial statements included in our Quarterly Report on Form 10-Q for the quarterly periods ended March 31, 2016 and June 30, 2016. |
Segment and Geographical Info20
Segment and Geographical Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Operations by Segment | Results of operations by segment were as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (In thousands) Revenues: Term life insurance segment $ 222,598 $ 197,205 $ 639,253 $ 563,795 Investment and savings products segment 130,080 128,596 387,604 392,561 Corporate and other distributed products segment 30,948 29,908 98,364 94,396 Total revenues $ 383,626 $ 355,709 $ 1,125,221 $ 1,050,752 Income (loss) before income taxes: Term life insurance segment $ 58,137 $ 46,519 $ 162,234 $ 127,284 Investment and savings products segment 35,760 34,811 103,514 107,600 Corporate and other distributed products segment (5,460 ) (6,377 ) (15,217 ) (16,296 ) Total income before income taxes $ 88,437 $ 74,953 $ 250,531 $ 218,588 |
Total Assets by Segment | Total assets by segment were as follows: September 30, 2016 December 31, 2015 (In thousands) Assets: Term life insurance segment $ 5,878,013 $ 5,638,682 Investment and savings products segment (1) 2,462,111 2,157,548 Corporate and other distributed products segment 3,028,559 2,814,553 Total assets $ 11,368,683 $ 10,610,783 (1) |
Long Lived Assets and Operations by Country | Geographical Information. Results of operations by country and long-lived assets, primarily tangible assets reported in Other assets in our unaudited condensed consolidated balance sheets, were as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (In thousands) Revenues by country: United States $ 323,560 $ 298,671 $ 947,618 $ 876,363 Canada 60,066 57,038 177,603 174,389 Total revenues $ 383,626 $ 355,709 $ 1,125,221 $ 1,050,752 Income before income taxes by country: United States $ 71,525 $ 61,116 $ 200,137 $ 170,172 Canada 16,912 13,837 50,394 48,416 Total income before income taxes $ 88,437 $ 74,953 $ 250,531 $ 218,588 September 30, 2016 December 31, 2015 (In thousands) Long-lived assets by country: United States $ 27,997 $ 28,621 Canada 865 787 Total long-lived assets $ 28,862 $ 29,408 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Schedule of Investments Debt and Equity Securities [Line Items] | |
Schedule of Available-for-sale Securities Reconciliation | The period-end cost or amortized cost, gross unrealized gains and losses, and fair value of available-for-sale fixed-maturity and equity securities follow: September 30, 2016 Cost or amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) Securities available-for-sale, carried at fair value: Fixed-maturity securities: U.S. government and agencies $ 15,515 $ 547 $ (1 ) $ 16,061 Foreign government 121,993 9,843 (106 ) 131,730 States and political subdivisions 43,326 3,167 (34 ) 46,459 Corporates 1,246,969 78,951 (2,840 ) 1,323,080 Residential mortgage-backed securities 78,549 6,836 (107 ) 85,278 Commercial mortgage-backed securities 104,471 4,355 (51 ) 108,775 Other asset-backed securities 49,524 352 (85 ) 49,791 Total fixed-maturity securities (1) 1,660,347 104,051 (3,224 ) 1,761,174 Equity securities 37,966 10,147 (574 ) 47,539 Total fixed-maturity and equity securities $ 1,698,313 $ 114,198 $ (3,798 ) $ 1,808,713 (1) 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 Residential mortgage-backed securities 94,532 6,814 (121 ) 101,225 Commercial mortgage-backed securities 97,666 2,875 (555 ) 99,986 Other asset-backed securities 46,996 129 (79 ) 47,046 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) |
Fixed-maturity Securities Classified by Contractual Maturity Date | The scheduled maturity distribution of the available-for-sale fixed-maturity portfolio at September 30, 2016 follows: Amortized cost Fair value (In thousands) Due in one year or less $ 94,127 $ 95,946 Due after one year through five years 690,909 734,979 Due after five years through 10 years 594,927 632,004 Due after 10 years 47,840 54,401 1,427,803 1,517,330 Mortgage-and asset-backed securities 232,544 243,844 Total fixed-maturity securities $ 1,660,347 $ 1,761,174 |
Net Effect on Stockholders' Equity of Unrealized Gains and Losses on Available-for-sale Securities | The net effect on stockholders’ equity of unrealized gains and losses on available-for-sale investments was as follows: September 30, 2016 December 31, 2015 (In thousands) Net unrealized investment gains including OTTI: Fixed-maturity and equity securities $ 110,400 $ 49,286 OTTI 103 109 Net unrealized investment gains excluding OTTI 110,503 49,395 Deferred income taxes (38,676 ) (17,288 ) Net unrealized investment gains excluding OTTI, net of tax $ 71,827 $ 32,107 |
Net Investment Income | Investment Income. The components of net investment income were as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (In thousands) Fixed-maturity securities (available-for-sale) $ 18,578 $ 18,786 $ 56,204 $ 58,132 Fixed-maturity security (held-to-maturity) 4,957 3,772 13,716 8,954 Equity securities 505 514 1,527 1,533 Policy loans and other invested assets 318 354 998 1,049 Cash and cash equivalents 148 51 497 141 Market return on deposit asset underlying 10% coinsurance agreement 1,058 220 5,443 1,776 Gross investment income 25,564 23,697 78,385 71,585 Investment expenses (1,208 ) (1,210 ) (3,643 ) (3,667 ) Investment income net of investment expenses 24,356 22,487 74,742 67,918 Interest expense on surplus note (4,957 ) (3,772 ) (13,716 ) (8,954 ) Net investment income $ 19,399 $ 18,715 $ 61,026 $ 58,964 |
Schedule of Net Realized Investment Gains and Losses | The components of net realized investment gains (losses) as well as details on gross realized investment gains and losses and proceeds from sales or other redemptions were as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (In thousands) Net realized investment gains (losses): Gross gains from sales $ 637 $ 1,209 $ 6,322 $ 4,610 Gross losses from sales (192 ) (26 ) (714 ) (285 ) Other-than-temporary impairment losses (478 ) (1,564 ) (3,308 ) (2,433 ) Gains (losses) from bifurcated options (2 ) 122 323 (269 ) Net realized investment gains (losses) $ (35 ) $ (259 ) $ 2,623 $ 1,623 |
Schedule of Securities in Unrealized Loss Position | The following tables summarize, for all available-for-sale securities in an unrealized loss position, the aggregate fair value and the gross unrealized loss by length of time such securities have continuously been in an unrealized loss position: September 30, 2016 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 $ 1,729 $ (1 ) 1 $ - $ - - Foreign government 3,398 (19 ) 2 3,134 (87 ) 3 States and political subdivisions 2,844 (34 ) 4 - - - Corporates 31,616 (321 ) 29 58,781 (2,519 ) 65 Residential mortgage-backed securities 2,451 (39 ) 5 4,515 (68 ) 8 Commercial mortgage-backed securities 11,873 (18 ) 11 7,136 (33 ) 10 Other asset-backed securities 11,755 (53 ) 14 4,108 (32 ) 7 Total fixed-maturity securities 65,666 (485 ) 77,674 (2,739 ) Equity securities 1,752 (123 ) 11 3,500 (451 ) 9 Total fixed-maturity and equity securities $ 67,418 $ (608 ) $ 81,174 $ (3,190 ) 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 Residential mortgage-backed securities 9,681 (61 ) 9 4,762 (60 ) 7 Commercial mortgage-backed securities 56,216 (493 ) 49 3,199 (62 ) 6 Other asset-backed securities 26,611 (77 ) 23 260 (2 ) 2 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 ) |
Amortized Cost and Fair Value of Available-for-sale Fixed-maturity Securities in Default | The amortized cost and fair value of available-for-sale fixed-maturity securities in default were as follows: September 30, 2016 December 31, 2015 Amortized cost Fair value Amortized cost Fair value (In thousands) Fixed-maturity securities in default $ 5 $ 93 $ 138 $ 262 |
Impairment Charges in Earnings on Available-for-sale Securities | Impairment charges recognized in earnings on available-for-sale securities were as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (In thousands) Impairments on fixed-maturity securities not in default $ 466 $ 1,287 $ 3,145 $ 2,075 Impairments on fixed-maturity securities in default 2 2 121 7 Impairments on equity securities 10 275 42 351 Total impairment charges $ 478 $ 1,564 $ 3,308 $ 2,433 |
Schedule of Net Impairment Losses Recognized in Earnings for AFS Securities | The rollforward of the OTTI recognized in net income for all fixed-maturity securities still held follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (In thousands) Cumulative OTTI recognized in net income for securities still held, beginning of period $ 7,489 $ 7,701 $ 11,856 $ 9,550 Additions for OTTI securities where no OTTI were recognized prior to the beginning of the period 451 336 1,682 403 Additions for OTTI securities where OTTI have been recognized prior to the beginning of the period 17 953 1,584 1,679 Reductions due to sales, maturities, calls, amortization or increases in cash flows expected to be collected over the remaining life of credit impaired securities (640 ) (138 ) (6,134 ) (1,503 ) Reductions for exchanges of securities previously impaired (112 ) - (1,783 ) (1,277 ) Cumulative OTTI recognized in net income for securities still held, end of period $ 7,205 $ 8,852 $ 7,205 $ 8,852 |
Available-for-Sale [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 for available-for-sale securities were as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (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 $ 445 $ 150 $ 1,374 $ 251 Less portion of OTTI loss recognized in accumulated other comprehensive income (loss) - - - - Net impairment losses recognized in earnings for securities which the Company does not intend to sell or more-likely-than-not will not be required to sell before recovery 445 150 1,374 251 OTTI losses recognized in earnings for securities which the Company intends to sell or more-likely-than-not will be required to sell before recovery 33 1,414 1,934 2,182 Net impairment losses recognized in earnings $ 478 $ 1,564 $ 3,308 $ 2,433 |
Fair Value of Financial Instr22
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | The estimated fair value and hierarchy classifications for assets and liabilities that are measured at fair value on a recurring basis were as follows: September 30, 2016 Level 1 Level 2 Level 3 Total (In thousands) Fair value assets: Fixed-maturity securities: U.S. government and agencies $ - $ 16,061 $ - $ 16,061 Foreign government - 131,730 - 131,730 States and political subdivisions - 46,459 - 46,459 Corporates 3,374 1,317,982 1,724 1,323,080 Residential mortgage-backed securities - 83,984 1,294 85,278 Commercial mortgage-backed securities - 108,775 - 108,775 Other asset-backed securities - 46,321 3,470 49,791 Total fixed-maturity securities 3,374 1,751,312 6,488 1,761,174 Equity securities 41,821 5,644 74 47,539 Trading securities - 12,259 - 12,259 Separate accounts - 2,347,816 - 2,347,816 Total fair value assets $ 45,195 $ 4,117,031 $ 6,562 $ 4,168,788 Fair value liabilities: Separate accounts $ - $ 2,347,816 $ - $ 2,347,816 Total fair value liabilities $ - $ 2,347,816 $ - $ 2,347,816 December 31, 2015 Level 1 Level 2 Level 3 Total (In thousands) Fair value assets: 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 Residential mortgage-backed securities - 100,493 732 101,225 Commercial mortgage-backed securities - 99,986 - 99,986 Other asset-backed securities - 47,046 - 47,046 Total 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 |
Roll forward of Level 3 Assets Measured on Recurring Basis | The roll-forward of the Level 3 assets measured at fair value on a recurring basis was as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (In thousands) Level 3 assets, beginning of period $ 717 $ 862 $ 783 $ 1,165 Net unrealized gains (losses) included in other comprehensive income 12 2 17 (4 ) Realized gains (losses) and accretion (amortization) recognized in earnings, including OTTI 1 - 6 - Purchases (1) 4,183 - 4,183 - Sales - - (3 ) - Settlements (25 ) (35 ) (98 ) (111 ) Transfers into Level 3 1,675 - 1,676 2 Transfers out of Level 3 (1 ) (2 ) (2 ) (225 ) Level 3 assets, end of period $ 6,562 $ 827 $ 6,562 $ 827 (1) During the three and nine months ended September 30, 2016, purchases of Level 3 assets primarily consisted of newly issued fixed maturity securities in the third quarter for which observable inputs, most notably quoted prices, used to derive valuations are not yet readily available. |
Carrying Value and Estimated Fair Value for Financial Instruments | The table below is a summary of the estimated fair value for financial instruments. September 30, 2016 December 31, 2015 Carrying value Estimated fair value Carrying value Estimated fair value (In thousands) Assets: Fixed-maturity securities (available-for-sale) $ 1,761,174 $ 1,761,174 $ 1,731,459 $ 1,731,459 Fixed-maturity security (held-to-maturity) 454,000 500,823 365,220 371,742 Equity securities 47,539 47,539 47,839 47,839 Trading securities 12,259 12,259 5,358 5,358 Policy loans 30,801 30,801 28,627 28,627 Deposit asset underlying 10% coinsurance agreement 198,275 198,275 181,889 181,889 Separate accounts 2,347,816 2,347,816 2,063,899 2,063,899 Liabilities: Notes payable (1) $ 372,827 $ 410,296 $ 372,552 $ 398,649 Surplus note (1) 453,247 498,256 364,424 371,498 Separate accounts 2,347,816 2,347,816 2,063,899 2,063,899 (1) Carrying value amounts shown are net of issuance costs. |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Reinsurance Disclosures [Abstract] | |
In-force Life Insurance | Details on in-force life insurance follow: September 30, 2016 December 31, 2015 (Dollars in thousands) Direct life insurance in force $ 725,613,934 $ 696,884,429 Amounts ceded to other companies (638,417,864 ) (616,252,839 ) Net life insurance in force $ 87,196,070 $ 80,631,590 Percentage of reinsured life insurance in force 88 % 88 % |
Reinsurance Receivable and Financial Strength Ratings by Reinsurer | Due from reinsurers includes ceded reserve balances and ceded claim liabilities. Reinsurance receivable and financial strength ratings by reinsurer were as follows: September 30, 2016 December 31, 2015 Reinsurance receivable A.M. Best rating Reinsurance receivable A.M. Best rating (In thousands) Pecan Re Inc. (1) (2) $ 2,718,356 NR $ - - Prime Reinsurance Company (2) - - 2,692,721 NR SCOR Global Life Reinsurance Companies (3) 358,815 A 362,195 A Munich Re Life Insurance Company of Vermont (2) (5) 290,384 NR 270,306 NR Swiss Re Life & Health America Inc. (4) 246,036 A+ 254,461 A+ American Health and Life Insurance Company (2) 177,295 B 176,790 B Munich American Reassurance Company 106,446 A+ 101,466 A+ Korean Reinsurance Company 96,066 A 91,605 A RGA Reinsurance Company 83,313 A+ 81,217 A+ TOA Reinsurance Company 22,339 A+ 22,242 A+ Hannover Life Reassurance Company 22,606 A+ 20,650 A+ All other reinsurers 39,881 - 36,975 - Due from reinsurers $ 4,161,537 $ 4,110,628 NR – not rated (1) (2) Includes balances ceded under coinsurance transactions of term life insurance policies that were in force as of December 31, 2009. Amounts shown are net of their share of the reinsurance receivable from other reinsurers. (3) Includes amounts ceded to Transamerica Reinsurance Companies and fully retroceded to SCOR Global Life Reinsurance Companies. (4) Includes amounts ceded to Lincoln National Life Insurance and fully (5) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders Equity Note [Abstract] | |
Reconciliation of Number of Shares of Common Stock | A reconciliation of the number of shares of our common stock follows. Nine months ended September 30, 2016 2015 (In thousands) Common stock, beginning of period 48,297 52,169 Shares issued upon the exercise of stock options 108 89 Shares of common stock issued upon lapse of restricted stock units ("RSUs") 426 407 Common stock retired (2,869 ) (4,094 ) Common stock, end of period 45,962 48,571 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | The calculation of basic and diluted EPS follows. Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (In thousands, except per-share amounts) Basic EPS Numerator: Net income $ 58,037 $ 49,350 $ 162,540 $ 141,924 Income attributable to unvested participating securities (494 ) (379 ) (1,353 ) (1,196 ) Net income used in calculating basic EPS $ 57,543 $ 48,971 $ 161,187 $ 140,728 Denominator: Weighted-average vested shares 47,008 50,082 47,736 51,494 Basic EPS $ 1.22 $ 0.98 $ 3.38 $ 2.73 Diluted EPS Numerator: Net income $ 58,037 $ 49,350 $ 162,540 $ 141,924 Income attributable to unvested participating securities (493 ) (379 ) (1,352 ) (1,196 ) Net income used in calculating diluted EPS $ 57,544 $ 48,971 $ 161,188 $ 140,728 Denominator: Weighted-average vested shares 47,008 50,082 47,736 51,494 Dilutive effect of incremental shares to be issued for contingently issuable shares 43 22 39 32 Weighted-average shares used in calculating diluted EPS 47,051 50,104 47,775 51,526 Diluted EPS $ 1.22 $ 0.98 $ 3.37 $ 2.73 |
Share-Based Transactions (Table
Share-Based Transactions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Impacts of Equity Awards Granted | The impacts of equity awards granted are as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (In thousands) Total equity awards expense recognized $ 1,723 $ 2,056 $ 11,754 $ 12,918 Quarterly incentive awards expense deferred 2,732 3,412 8,126 10,531 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of other comprehensive income (“OCI”), including the income tax expense or benefit allocated to each component, were as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 (In thousands) Foreign currency translation adjustments: Change in unrealized foreign currency translation gains (losses) before income taxes $ (3,165 ) $ (16,323 ) $ 11,704 $ (33,731 ) Income tax expense (benefit) on unrealized foreign currency translation gains (losses) (29 ) (171 ) 130 (366 ) Change in unrealized foreign currency translation gains (losses), net of income taxes $ (3,136 ) $ (16,152 ) $ 11,574 $ (33,365 ) Unrealized gain (losses) on available-for-sale securities: Change in unrealized holding gains (losses) arising during period before income taxes $ 5,129 $ (18,019 ) $ 63,414 $ (35,078 ) Income tax expense (benefit) on unrealized holding gains (losses) arising during period 1,795 (6,308 ) 22,193 (12,278 ) Change in unrealized holding gains (losses) on available-for-sale securities arising during period, net of income taxes 3,334 (11,711 ) 41,221 (22,800 ) Reclassification from accumulated OCI to net income for (gains) losses realized on available-for-sale securities 33 381 (2,300 ) (1,892 ) Income tax (expense) benefit on (gains) losses reclassified from accumulated OCI to net income 11 134 (805 ) (662 ) Reclassification from accumulated OCI to net income for (gains) losses realized on available-for-sale securities, net of income taxes 22 247 (1,495 ) (1,230 ) Change in unrealized gains (losses) on available-for-sale securities, net of income taxes and reclassification adjustment $ 3,356 $ (11,464 ) $ 39,726 $ (24,030 ) |
Segment and Geographical Info28
Segment and Geographical Information - Narrative (Details) | 9 Months Ended |
Sep. 30, 2016Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment and Geographical Info29
Segment and Geographical Information - Assets and Operations by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 383,626 | $ 355,709 | $ 1,125,221 | $ 1,050,752 | ||
Income (loss) before income taxes | 88,437 | 74,953 | 250,531 | 218,588 | ||
Assets | 11,368,683 | 11,368,683 | $ 10,610,783 | |||
Term Life Insurance Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 222,598 | 197,205 | 639,253 | 563,795 | ||
Income (loss) before income taxes | 58,137 | 46,519 | 162,234 | 127,284 | ||
Assets | 5,878,013 | 5,878,013 | 5,638,682 | |||
Investment and Savings Products Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 130,080 | 128,596 | 387,604 | 392,561 | ||
Income (loss) before income taxes | 35,760 | 34,811 | 103,514 | 107,600 | ||
Assets | [1] | 2,462,111 | 2,462,111 | 2,157,548 | ||
Corporate and Other Distributed Products Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 30,948 | 29,908 | 98,364 | 94,396 | ||
Income (loss) before income taxes | (5,460) | $ (6,377) | (15,217) | $ (16,296) | ||
Assets | $ 3,028,559 | $ 3,028,559 | $ 2,814,553 | |||
[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 $114.4 million and $93.8 million as of September 30, 2016 and December 31, 2015, respectively. |
Segment and Geographical Info30
Segment and Geographical Information - Assets and Operations by Segment (Parenthetical) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Investment and Savings Products Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets, excluding separate account assets | $ 114.4 | $ 93.8 |
Segment and Geographical Info31
Segment and Geographical Information - Long Lived Assets and Operations by Country (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Revenues | $ 383,626 | $ 355,709 | $ 1,125,221 | $ 1,050,752 | |
Income (loss) before income taxes | 88,437 | 74,953 | 250,531 | 218,588 | |
Long-lived assets | 28,862 | 28,862 | $ 29,408 | ||
United States [Member] | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Revenues | 323,560 | 298,671 | 947,618 | 876,363 | |
Income (loss) before income taxes | 71,525 | 61,116 | 200,137 | 170,172 | |
Long-lived assets | 27,997 | 27,997 | 28,621 | ||
Canada [Member] | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Revenues | 60,066 | 57,038 | 177,603 | 174,389 | |
Income (loss) before income taxes | 16,912 | $ 13,837 | 50,394 | $ 48,416 | |
Long-lived assets | $ 865 | $ 865 | $ 787 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | $ 1,660,347 | [1] | $ 1,690,043 | [2] |
Available-for-sale debt securities gross unrealized gain | 104,051 | [1] | 68,467 | [2] |
Available-for-sale debt securities, gross unrealized loss | (3,224) | [1] | (27,051) | [2] |
Available-for-sale debt securities, at fair value | 1,761,174 | [1] | 1,731,459 | [2] |
Available-for-sale equity securities, cost | 37,966 | 39,969 | ||
Available-for-sale equity securities, gross unrealized gain | 10,147 | 8,252 | ||
Available-for-sale equity securities, gross unrealized loss | (574) | (382) | ||
Available-for-sale equity securities, at fair value | 47,539 | 47,839 | ||
Available-for-sale securities, amortized cost basis | 1,698,313 | 1,730,012 | ||
Available-for-sale securities, gross unrealized gain | 114,198 | 76,719 | ||
Available-for-sale securities, gross unrealized loss | (3,798) | (27,433) | ||
Available-for-sale securities, fair value | 1,808,713 | 1,779,298 | ||
U.S. Government and Agencies [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 15,515 | 20,233 | ||
Available-for-sale debt securities gross unrealized gain | 547 | 448 | ||
Available-for-sale debt securities, gross unrealized loss | (1) | (22) | ||
Available-for-sale debt securities, at fair value | 16,061 | 20,659 | ||
Foreign Government [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 121,993 | 114,656 | ||
Available-for-sale debt securities gross unrealized gain | 9,843 | 7,082 | ||
Available-for-sale debt securities, gross unrealized loss | (106) | (1,522) | ||
Available-for-sale debt securities, at fair value | 131,730 | 120,216 | ||
States and Political Subdivisions [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 43,326 | 38,995 | ||
Available-for-sale debt securities gross unrealized gain | 3,167 | 2,111 | ||
Available-for-sale debt securities, gross unrealized loss | (34) | (541) | ||
Available-for-sale debt securities, at fair value | 46,459 | 40,565 | ||
Corporates [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 1,246,969 | 1,276,965 | ||
Available-for-sale debt securities gross unrealized gain | 78,951 | 49,008 | ||
Available-for-sale debt securities, gross unrealized loss | (2,840) | (24,211) | ||
Available-for-sale debt securities, at fair value | 1,323,080 | 1,301,762 | ||
Residential Mortgage-backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 78,549 | 94,532 | ||
Available-for-sale debt securities gross unrealized gain | 6,836 | 6,814 | ||
Available-for-sale debt securities, gross unrealized loss | (107) | (121) | ||
Available-for-sale debt securities, at fair value | 85,278 | 101,225 | ||
Other Asset-backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 49,524 | 46,996 | ||
Available-for-sale debt securities gross unrealized gain | 352 | 129 | ||
Available-for-sale debt securities, gross unrealized loss | (85) | (79) | ||
Available-for-sale debt securities, at fair value | 49,791 | 47,046 | ||
Commercial Mortgage-backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 104,471 | 97,666 | ||
Available-for-sale debt securities gross unrealized gain | 4,355 | 2,875 | ||
Available-for-sale debt securities, gross unrealized loss | (51) | (555) | ||
Available-for-sale debt securities, at fair value | $ 108,775 | $ 99,986 | ||
[1] | Includes approximately $0.1 million of other-than-temporary impairment (“OTTI”) losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. | |||
[2] | Includes approximately $0.1 million of OTTI related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. |
Investments - Schedule of Ava33
Investments - Schedule of Available-for-sale Securities (Parenthetical) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Other-than-temporary impairment losses, investments, portion in other comprehensive income (loss) | $ 0.1 | $ 0.1 |
Investments - Fixed-maturity Se
Investments - Fixed-maturity Securities Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | [2] | |
Available-for-sale Securities, Debt Maturities [Abstract] | ||||
Due in one year or less, amortized cost | $ 94,127 | |||
Due after one year through five years, amortized cost | 690,909 | |||
Due after five years through 10 years, amortized cost | 594,927 | |||
Due after 10 years, amortized cost | 47,840 | |||
Total fixed-maturity securities with single maturity dates, amortized cost | 1,427,803 | |||
Mortgage and asset-backed securities, amortized cost | 232,544 | |||
Available-for-sale debt securities, amortized cost basis | 1,660,347 | [1] | $ 1,690,043 | |
Due in one year or less, fair value | 95,946 | |||
Due after one year through five years, fair value | 734,979 | |||
Due after five years through 10 years, fair value | 632,004 | |||
Due after 10 years, fair value | 54,401 | |||
Total fixed-maturity securities with single maturity dates, fair value | 1,517,330 | |||
Mortgage and asset-backed securities, fair value | 243,844 | |||
Available-for-sale debt securities, at fair value | $ 1,761,174 | [1] | $ 1,731,459 | |
[1] | Includes approximately $0.1 million of other-than-temporary impairment (“OTTI”) losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. | |||
[2] | Includes approximately $0.1 million of OTTI related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income. |
Investments - Net Effect on Sto
Investments - Net Effect on Stockholders' Equity of Unrealized Gains and Losses on Available-for-sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax [Abstract] | ||
Net unrealized investment gains including OTTI, Fixed-maturity and Equity securities | $ 110,400 | $ 49,286 |
OTTI | 103 | 109 |
Net unrealized investment gains excluding OTTI | 110,503 | 49,395 |
Less deferred income taxes | (38,676) | (17,288) |
Net unrealized investment gains excluding OTTI, net of tax | $ 71,827 | $ 32,107 |
Investments - Fixed-maturity 36
Investments - Fixed-maturity Securities Classified as Trading - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | $ 12,259 | $ 5,358 |
Fixed-maturity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | $ 12,300 | $ 5,400 |
Investments - Held-to-maturity
Investments - Held-to-maturity Security - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Schedule Of Held To Maturity Securities [Line Items] | |
Held-to-maturity debt security estimated unrealized holding gain | $ 46.8 |
LLC Note [Member] | |
Schedule Of Held To Maturity Securities [Line Items] | |
Debt instrument, interest rate, stated percentage | 4.50% |
Investments - Fair Value of Inv
Investments - Fair Value of Investments on Deposit with Governmental Authorities - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Investments Debt And Equity Securities [Abstract] | ||
Fair values of investments on deposit | $ 19.4 | $ 18.1 |
Investments - Securities Lendin
Investments - Securities Lending Collateral - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
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 | $ 95.8 | $ 71.5 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income, operating | $ 25,564 | $ 23,697 | $ 78,385 | $ 71,585 |
Investment expenses | (1,208) | (1,210) | (3,643) | (3,667) |
Investment income net of investment expenses | 24,356 | 22,487 | 74,742 | 67,918 |
Interest expense on surplus note | (4,957) | (3,772) | (13,716) | (8,954) |
Net investment income | 19,399 | 18,715 | 61,026 | 58,964 |
Equity Securities [Member] | ||||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income, operating | 505 | 514 | 1,527 | 1,533 |
Policy Loans and Other Invested Assets [Member] | ||||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income, operating | 318 | 354 | 998 | 1,049 |
Cash and Cash Equivalents [Member] | ||||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income, operating | 148 | 51 | 497 | 141 |
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 | 1,058 | 220 | 5,443 | 1,776 |
Available-for-Sale [Member] | Fixed-maturity Securities [Member] | ||||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income, operating | 18,578 | 18,786 | 56,204 | 58,132 |
Held-to-Maturity [Member] | Fixed-maturity Securities [Member] | ||||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income, operating | $ 4,957 | $ 3,772 | $ 13,716 | $ 8,954 |
Investments - Schedule of Net R
Investments - Schedule of Net Realized Investment Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Realized Investment Gains Losses [Abstract] | ||||
Gross gains from sales | $ 637 | $ 1,209 | $ 6,322 | $ 4,610 |
Gross losses from sales | (192) | (26) | (714) | (285) |
Other-than-temporary impairment losses | (478) | (1,564) | (3,308) | (2,433) |
Gains (losses) from bifurcated options | (2) | 122 | 323 | (269) |
Realized investment gains (losses), including other-than- temporary impairment losses | $ (35) | $ (259) | $ 2,623 | $ 1,623 |
Investments - Available-for-sal
Investments - Available-for-sale Securities with Cost Basis in Excess of Fair Value - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Investments Debt And Equity Securities [Abstract] | ||
Available for sale fixed-maturity and equity securities with cost basis in excess of fair value, cost basis | $ 152.4 | $ 626 |
Investments - Schedule of Secur
Investments - Schedule of Securities in Unrealized Loss Position (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016USD ($)Securities | Dec. 31, 2015USD ($)Securities | |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | $ 67,418 | $ 549,243 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (608) | (19,294) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 81,174 | 49,328 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (3,190) | (8,139) |
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 | 65,666 | 545,591 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (485) | (19,007) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 77,674 | 46,119 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (2,739) | (8,044) |
U.S. Government and Agencies [Member] | 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 | 1,729 | 13,651 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (1) | $ (22) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 1 | 7 |
Foreign Government [Member] | 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 | $ 3,398 | $ 23,572 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (19) | $ (829) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 2 | 20 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 3,134 | $ 2,396 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (87) | $ (693) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 3 | 3 |
States and Political Subdivisions [Member] | 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 | $ 2,844 | $ 2,729 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (34) | $ (44) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 4 | 6 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 878 | |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (497) | |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 2 | |
Corporates [Member] | 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 | $ 31,616 | $ 413,131 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (321) | $ (17,481) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 29 | 393 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 58,781 | $ 34,624 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (2,519) | $ (6,730) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 65 | 54 |
Residential Mortgage-backed Securities [Member] | 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 | $ 2,451 | $ 9,681 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (39) | $ (61) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 5 | 9 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 4,515 | $ 4,762 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (68) | $ (60) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 8 | 7 |
Other Asset-backed Securities [Member] | 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 | $ 11,755 | $ 26,611 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (53) | $ (77) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 14 | 23 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 4,108 | $ 260 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (32) | $ (2) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 7 | 2 |
Commercial Mortgage-backed Securities [Member] | 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 | $ 11,873 | $ 56,216 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (18) | $ (493) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 11 | 49 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 7,136 | $ 3,199 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (33) | $ (62) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 10 | 6 |
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 | $ 1,752 | $ 3,652 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (123) | $ (287) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 11 | 17 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 3,500 | $ 3,209 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (451) | $ (95) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 9 | 8 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Available-for-sale Fixed-maturity Securities in Default (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Investments Debt And Equity Securities [Abstract] | ||
Available-for-sale fixed-maturity securities in default, amortized cost | $ 5 | $ 138 |
Available-for-sale fixed-maturity securities in default, fair value | $ 93 | $ 262 |
Investments - Impairment Charge
Investments - Impairment Charges in Earnings on Available-for-sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Impairment charges recognized in earnings | $ 478 | $ 1,564 | $ 3,308 | $ 2,433 |
Equity Securities [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Impairment charges recognized in earnings | 10 | 275 | 42 | 351 |
Investments in fixed-maturity securities not in default [Member] | Fixed-maturity Securities [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Impairment charges recognized in earnings | 466 | 1,287 | 3,145 | 2,075 |
Investments in fixed-maturity securities in default [Member] | Fixed-maturity Securities [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Impairment charges recognized in earnings | $ 2 | $ 2 | $ 121 | $ 7 |
Investments - Schedule of Net I
Investments - Schedule of Net Impairment Losses Recognized in Earnings for Available-for-sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Total other-than-temporary impairment losses | $ 478 | $ 1,564 | $ 3,308 | $ 2,433 |
Other-than-temporary impairment losses, investments, portion recognized in earnings, net | 478 | 1,564 | 3,308 | 2,433 |
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 | 445 | 150 | 1,374 | 251 |
Other-than-temporary impairment losses, investments, portion recognized in earnings, net | 445 | 150 | 1,374 | 251 |
Intends to sell or more-likely-than-not will be required to sell before recovery [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Other-than-temporary impairment losses, investments, portion recognized in earnings, net | $ 33 | $ 1,414 | $ 1,934 | $ 2,182 |
Investments - Rollforward of OT
Investments - Rollforward of OTTI Recognized in Net Income, Fixed-maturity Securities Still Held (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other than Temporary Impairment, OTTI Recognized in Earnings [Roll Forward] | ||||
Cumulative other-than-temporary impairment, net income for securities still held, beginning balance | $ 7,489 | $ 7,701 | $ 11,856 | $ 9,550 |
Additions for other-than-temporary impaired securities where no OTTI were recognized prior to the beginning of the period | 451 | 336 | 1,682 | 403 |
Additions for other-than-temporary impaired securities where OTTI have been recognized prior to the beginning of the period | 17 | 953 | 1,584 | 1,679 |
Reductions due to sales, maturities, calls, amortization or increases in cash flows expected to be collected over the remaining life of credit impaired securities | (640) | (138) | (6,134) | (1,503) |
Reductions for exchanges of securities previously impaired | (112) | (1,783) | (1,277) | |
Cumulative other-than-temporary impairment, credit losses for securities still held, ending balance | $ 7,205 | $ 8,852 | $ 7,205 | $ 8,852 |
Investments - Impairment Losses
Investments - Impairment Losses on Held-to-maturity Security - Narrative (Details) | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Investments Debt And Equity Securities [Abstract] | |
Impairment losses held-to-maturity security | $ 0 |
Investments - Derivative - Narr
Investments - Derivative - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Aggregate fair value of embedded conversion options | $ 4.6 | $ 5.4 |
Investments - Loss from Closed
Investments - Loss from Closed Currency Forward Contracts Recorded in Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
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 Instr51
Fair Value of Financial Instruments - Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | $ 1,808,713 | $ 1,779,298 |
Trading securities | $ 12,259 | 5,358 |
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 | $ 12,259 | 5,358 |
Assets, fair value disclosure, recurring | 4,168,788 | 3,848,555 |
Liabilities, fair value disclosure, recurring | 2,347,816 | 2,063,899 |
Fair Value, Recurring Measurements [Member] | Level 1 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure, recurring | 45,195 | 43,487 |
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Trading securities | 12,259 | 5,358 |
Assets, fair value disclosure, recurring | 4,117,031 | 3,804,285 |
Liabilities, fair value disclosure, recurring | 2,347,816 | 2,063,899 |
Fair Value, Recurring Measurements [Member] | Level 3 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure, recurring | 6,562 | 783 |
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 | 16,061 | 20,659 |
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 | 16,061 | 20,659 |
Fair Value, Recurring Measurements [Member] | Foreign Government [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 131,730 | 120,216 |
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 | 131,730 | 120,216 |
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 | 46,459 | 40,565 |
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 | 46,459 | 40,565 |
Fair Value, Recurring Measurements [Member] | Corporates [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 1,323,080 | 1,301,762 |
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 | 3,374 | 2,146 |
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 | 1,317,982 | 1,299,613 |
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 | 1,724 | 3 |
Fair Value, Recurring Measurements [Member] | Residential Mortgage-backed Securities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 85,278 | 101,225 |
Fair Value, Recurring Measurements [Member] | Residential Mortgage-backed Securities [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 83,984 | 100,493 |
Fair Value, Recurring Measurements [Member] | Residential Mortgage-backed Securities [Member] | Level 3 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 1,294 | 732 |
Fair Value, Recurring Measurements [Member] | Other Asset-backed Securities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 49,791 | 47,046 |
Fair Value, Recurring Measurements [Member] | Other Asset-backed Securities [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 46,321 | 47,046 |
Fair Value, Recurring Measurements [Member] | Other Asset-backed Securities [Member] | Level 3 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 3,470 | |
Fair Value, Recurring Measurements [Member] | Commercial Mortgage-backed Securities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 108,775 | 99,986 |
Fair Value, Recurring Measurements [Member] | Commercial Mortgage-backed Securities [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 108,775 | 99,986 |
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 | 1,761,174 | 1,731,459 |
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 | 3,374 | 2,146 |
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 | 1,751,312 | 1,728,578 |
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 | 6,488 | 735 |
Fair Value, Recurring Measurements [Member] | Equity Securities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 47,539 | 47,839 |
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 | 41,821 | 41,341 |
Fair Value, Recurring Measurements [Member] | Equity Securities [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale securities, fair value | 5,644 | 6,450 |
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 | 74 | 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 | 2,347,816 | 2,063,899 |
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 | 2,347,816 | 2,063,899 |
Fair Value, Recurring Measurements [Member] | Separate Accounts Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Separate accounts liabilities | 2,347,816 | 2,063,899 |
Fair Value, Recurring Measurements [Member] | Separate Accounts Liabilities [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Separate accounts liabilities | $ 2,347,816 | $ 2,063,899 |
Fair Value of Financial Instr52
Fair Value of Financial Instruments - Rollforward of Level 3 Assets Measured on Recurring Basis (Details) - Fair Value, Recurring Measurements [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Level 3 assets, beginning of period | $ 717 | $ 862 | $ 783 | $ 1,165 | |
Net unrealized gains (losses) included in other comprehensive income | 12 | 2 | 17 | (4) | |
Realized gains (losses) and accretion (amortization) recognized in earnings, including OTTI | 1 | 6 | |||
Purchases | [1] | 4,183 | 4,183 | ||
Sales | (3) | ||||
Settlements | (25) | (35) | (98) | (111) | |
Transfers into Level 3 | 1,675 | 1,676 | 2 | ||
Transfers out of Level 3 | (1) | (2) | (2) | (225) | |
Level 3 assets, end of period | $ 6,562 | $ 827 | $ 6,562 | $ 827 | |
[1] | During the three and nine months ended September 30, 2016, purchases of Level 3 assets primarily consisted of newly issued fixed maturity securities in the third quarter for which observable inputs, most notably quoted prices, used to derive valuations are not yet readily available. |
Fair Value of Financial Instr53
Fair Value of Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |||
Fair value security, level 1 to level 2 transfers, amount | $ 0 | $ 0 | $ 1,000,000 |
Fair Value security, level 1 to level 3 transfers, amount | $ 0 | $ 0 |
Fair Value of Financial Instr54
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value for Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities, fair value | $ 1,808,713 | $ 1,779,298 | |
Fixed-maturity securities held to maturity, fair value | 500,823 | 371,742 | |
Trading securities | 12,259 | 5,358 | |
Surplus note | 453,247 | 364,424 | |
Fixed-maturity securities held to maturity | 454,000 | 365,220 | |
Fair Value, Recurring Measurements [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Trading securities | 12,259 | 5,358 | |
Level 2 [Member] | Fair Value, Recurring Measurements [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Trading securities | 12,259 | 5,358 | |
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 | 2,347,816 | 2,063,899 | |
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 | 2,347,816 | 2,063,899 | |
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 | 1,761,174 | 1,731,459 | |
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 | 47,539 | 47,839 | |
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 | 30,801 | 28,627 | |
Surplus note | [1] | 453,247 | 364,424 |
Fixed-maturity securities held to maturity | 454,000 | 365,220 | |
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 | 198,275 | 181,889 | |
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 | 12,259 | 5,358 | |
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 | 2,347,816 | 2,063,899 | |
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 | [1] | 372,827 | 372,552 |
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 | 1,761,174 | 1,731,459 | |
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 | 47,539 | 47,839 | |
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 | 500,823 | 371,742 | |
Policy loans | 30,801 | 28,627 | |
Surplus note | [1] | 498,256 | 371,498 |
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 | 198,275 | 181,889 | |
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 | 12,259 | 5,358 | |
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 | 2,347,816 | 2,063,899 | |
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 | [1] | 410,296 | 398,649 |
Separate Accounts Liabilities [Member] | Fair Value, Recurring Measurements [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Separate accounts liabilities | 2,347,816 | 2,063,899 | |
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 accounts liabilities | 2,347,816 | 2,063,899 | |
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 accounts liabilities | 2,347,816 | 2,063,899 | |
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 accounts liabilities | $ 2,347,816 | $ 2,063,899 | |
[1] | Carrying value amounts shown are net of issuance costs. |
Fair Value of Financial Instr55
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value for Financial Instruments (Parenthetical) (Details) | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Percentage of coinsurance costs | 10.00% | 10.00% |
Reinsurance - In-force Life Ins
Reinsurance - In-force Life Insurance (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Reinsurance Disclosures [Abstract] | ||
Direct life insurance in force | $ 725,613,934 | $ 696,884,429 |
Amounts ceded to other companies | (638,417,864) | (616,252,839) |
Net life insurance in force | $ 87,196,070 | $ 80,631,590 |
Percentage of reinsured life insurance in force | 88.00% | 88.00% |
Reinsurance - Reinsurance Recei
Reinsurance - Reinsurance Receivable and Financial Strength Ratings by Reinsurer (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | $ 4,161,537 | $ 4,110,628 | |
Pecan Re Inc [Member] | External credit rating, not rated [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | [1],[2] | 2,718,356 | |
Prime Reinsurance Company [Member] | External credit rating, not rated [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | [1] | 2,692,721 | |
SCOR Global Life Reinsurance Companies [Member] | AM Best, A Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | [3] | 358,815 | 362,195 |
Munich Re Life Insurance Company of Vermont [Member] | External credit rating, not rated [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | [1],[4] | 290,384 | 270,306 |
Swiss Re Life & Health America Inc. [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | [5] | 246,036 | 254,461 |
American Health and Life Insurance Company [Member] | AM Best, B Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | [1] | 177,295 | 176,790 |
Munich American Reassurance Company [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | 106,446 | 101,466 | |
Korean Reinsurance Company [Member] | AM Best, A Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | 96,066 | 91,605 | |
RGA Reinsurance Company [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | 83,313 | 81,217 | |
TOA Reinsurance Company [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | 22,339 | 22,242 | |
Hannover Life Reassurance Company [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | 22,606 | 20,650 | |
All Other Reinsurers [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance receivable | $ 39,881 | $ 36,975 | |
[1] | Includes balances ceded under coinsurance transactions of term life insurance policies that were in force as of December 31, 2009. Amounts shown are net of their share of the reinsurance receivable from other reinsurers. | ||
[2] | Pecan Re Inc. is a wholly owned subsidiary of Swiss Re Life & Health America Inc. | ||
[3] | Includes amounts ceded to Transamerica Reinsurance Companies and fully retroceded to SCOR Global Life Reinsurance Companies. | ||
[4] | Previously known as Financial Reassurance Company 2010, Ltd. This entity was acquired by Munich American Reassurance Company from Citigroup Inc. (“Citigroup”) as of September 23, 2016 and was subsequently renamed Munich Re Life Insurance Company of Vermont. | ||
[5] | Includes amounts ceded to Lincoln National Life Insurance and fully retroceded to Swiss Re Life & Health America Inc. |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) | Jan. 02, 2016 | Jul. 02, 2015 | Sep. 30, 2016 | Jan. 02, 2016 |
Minimum [Member] | ||||
Reinsurance Retention Policy [Line Items] | ||||
Percentage of finance charge for statutory reserves | 0.50% | 2.00% | ||
Maximum [Member] | ||||
Reinsurance Retention Policy [Line Items] | ||||
Percentage of finance charge for statutory reserves | 2.00% | 3.00% | ||
80% Coinsurance Agreement [Member] | Prime Reinsurance Company [Member] | ||||
Reinsurance Retention Policy [Line Items] | ||||
Percentage of risks and rewards of term life insurance policies in force | 80.00% | |||
Novation Agreement [Member] | Pecan Re Inc [Member] | ||||
Reinsurance Retention Policy [Line Items] | ||||
Percentage of risks and rewards of term life insurance policies in force | 80.00% | |||
10% Coinsurance Agreement [Member] | ||||
Reinsurance Retention Policy [Line Items] | ||||
Percentage of risks and rewards of term life insurance policies in force | 10.00% |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 915,000 |
Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 375,000 |
Debt instrument, interest rate, stated percentage | 4.75% |
Debt instrument maturity date | Jul. 15, 2022 |
Surplus Note [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 454,000 |
Debt instrument, interest rate, stated percentage | 4.50% |
Debt instrument maturity date | Dec. 31, 2029 |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of Number of Shares of Common Stock (Details) - shares | 9 Months Ended | 14 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | |
Stockholders Equity Note [Abstract] | |||
Common stock, beginning of period | 48,297,000 | 52,169,000 | |
Shares issued upon the exercise of stock options | 108,000 | 89,000 | |
Shares of common stock issued upon lapse of restricted stock units ("RSUs") | 426,000 | 407,000 | |
Common stock retired | (2,869,000) | (4,094,000) | (3,831,300) |
Common stock, end of period | 45,962,000 | 48,571,000 | 45,962,000 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | 9 Months Ended | 14 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | |
Class Of Stock [Line Items] | |||
Stock repurchased program, authorized amount | $ 200,000,000 | $ 200,000,000 | |
Stock repurchased and retired during period, shares | 2,869,000 | 4,094,000 | 3,831,300 |
Stock repurchased and retired during period, value | $ 181,500,000 | ||
Stock repurchase program, remaining authorized repurchase amount | $ 18,500,000 | $ 18,500,000 | |
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 | 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 | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 58,037 | $ 49,350 | $ 162,540 | $ 141,924 |
Income attributable to unvested participating securities, basic EPS | (494) | (379) | (1,353) | (1,196) |
Net income used in calculating basic EPS | $ 57,543 | $ 48,971 | $ 161,187 | $ 140,728 |
Weighted-average vested shares | 47,008 | 50,082 | 47,736 | 51,494 |
Basic EPS | $ 1.22 | $ 0.98 | $ 3.38 | $ 2.73 |
Income attributable to unvested participating securities, diluted EPS | $ (493) | $ (379) | $ (1,352) | $ (1,196) |
Net income used in calculating diluted EPS | $ 57,544 | $ 48,971 | $ 161,188 | $ 140,728 |
Dilutive effect of incremental shares to be issued for contingently issuable shares | 43 | 22 | 39 | 32 |
Weighted-average shares used in calculating diluted EPS | 47,051 | 50,104 | 47,775 | 51,526 |
Diluted EPS | $ 1.22 | $ 0.98 | $ 3.37 | $ 2.73 |
Share-Based Transactions - Impa
Share-Based Transactions - Impact of Equity Awards Granted (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total equity awards expense recognized | $ 1,723 | $ 2,056 | $ 11,754 | $ 12,918 |
Expense Deferred [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Quarterly incentive awards expense deferred | $ 2,732 | $ 3,412 | $ 8,126 | $ 10,531 |
Share-Based Transactions - Narr
Share-Based Transactions - Narrative (Details) | Feb. 24, 2016$ / sharesshares |
Restricted stock units (RSUs) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of shares awarded | 204,558 |
Measurement date fair value | $ / shares | $ 41.88 |
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years |
Stock Options [Member] | 4 Executive Management Team [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 |
Number of shares awarded | 89,540 |
Measurement date fair value | $ / shares | $ 8.21 |
Performance share units (PSUs) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of shares awarded | 18,385 |
Measurement date fair value | $ / shares | $ 41.88 |
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years |
Performance share units (PSUs) [Member] | Maximum [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of PSUs vested during the period | 27,577 |
Performance share units (PSUs) [Member] | Minimum [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of PSUs vested during the period | 0 |
Commitments and Contingent Li65
Commitments and Contingent Liabilities - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($)Jurisdiction | |
Commitments And Contingent Liabilities [Line Items] | |
Number of jurisdiction | Jurisdiction | 30 |
Letter of Credit [Member] | |
Commitments And Contingent Liabilities [Line Items] | |
Letter of credit, outstanding | $ | $ 422.9 |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Foreign currency translation adjustments: | ||||
Change in unrealized foreign currency translation gains (losses) before income tax expense (benefit) | $ (3,165) | $ (16,323) | $ 11,704 | $ (33,731) |
Income tax expense (benefit) on unrealized foreign currency translation gains (losses) | (29) | (171) | 130 | (366) |
Change in unrealized foreign currency translation gains (losses), net of income taxes | (3,136) | (16,152) | 11,574 | (33,365) |
Unrealized gain (losses) on available-for-sale securities: | ||||
Change in unrealized holding gains (losses) on investment securities | 5,129 | (18,019) | 63,414 | (35,078) |
Change in net unrealized investment gains (losses) not-other-than-temporarily impaired, income tax expense (benefit) | 1,795 | (6,308) | 22,193 | (12,278) |
Change in unrealized holding gains (losses) on available-for-sale securities arising during period, net of income taxes | 3,334 | (11,711) | 41,221 | (22,800) |
Reclassification adjustment for realized investment (gains) losses included in net income | 33 | 381 | (2,300) | (1,892) |
Income tax (expense) benefits on (gains) losses reclassified from accumulated OCI to net income | 11 | 134 | (805) | (662) |
Reclassification from accumulated OCI to net income for (gains) losses realized on available-for-sale securities, net of income taxes | 22 | 247 | (1,495) | (1,230) |
Change in unrealized gains (losses) on available-for-sale securities, net of income taxes and reclassification adjustment | $ 3,356 | $ (11,464) | $ 39,726 | $ (24,030) |