Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
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 | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | PRI | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 43,125,719 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | ||
Investments: | ||||
Fixed-maturity securities available-for-sale, at fair value (amortized cost: $1,983,956 in 2018 and $1,877,326 in 2017) | $ 1,985,890 | [1] | $ 1,927,842 | [2] |
Fixed-maturity security held-to-maturity, at amortized cost (fair value: $838,637 in 2018 and $779,472 in 2017) | 843,810 | 737,150 | ||
Equity securities available-for-sale, at fair value (amortized cost: $0 in 2018 and $31,331 in 2017) | 41,107 | |||
Equity securities, at fair value (historical cost: $36,711 in 2018 and $0 in 2017) | 39,842 | |||
Trading securities, at fair value (amortized cost: $23,090 in 2018 and $6,172 in 2017) | 23,079 | 6,228 | ||
Policy loans | 30,954 | 32,816 | ||
Total investments | 2,923,575 | 2,745,143 | ||
Cash and cash equivalents | 159,280 | 279,962 | ||
Accrued investment income | 16,808 | 16,665 | ||
Reinsurance recoverables | 4,199,275 | 4,205,173 | ||
Deferred policy acquisition costs, net | 2,053,445 | 1,951,892 | ||
Agent balances, due premiums and other receivables | 291,329 | 229,522 | ||
Intangible assets, net (accumulated amortization: $80,335 in 2018 and $78,633 in 2017) | 49,812 | 51,513 | ||
Income taxes | 50,909 | 48,614 | ||
Other assets | 363,201 | 359,347 | ||
Separate account assets | 2,389,007 | 2,572,872 | ||
Total assets | 12,496,641 | 12,460,703 | ||
Liabilities: | ||||
Future policy benefits | 6,057,112 | 5,954,524 | ||
Unearned premiums | 452 | 486 | ||
Policy claims and other benefits payable | 286,890 | 307,401 | ||
Other policyholders’ funds | 386,571 | 377,998 | ||
Notes payable | 373,474 | 373,288 | ||
Surplus note | 843,073 | 736,381 | ||
Income taxes | 182,140 | 177,468 | ||
Other liabilities | 495,242 | 451,398 | ||
Payable under securities lending | 82,096 | 89,786 | ||
Separate account liabilities | 2,389,007 | 2,572,872 | ||
Commitments and contingent liabilities (see Commitments and Contingent Liabilities note) | ||||
Total liabilities | 11,096,057 | 11,041,602 | ||
Stockholders’ equity: | ||||
Common stock ($0.01 par value; authorized 500,000 in 2018 and 2017; issued and outstanding 43,168 shares in 2018 and 44,251 shares in 2017) | 432 | 443 | ||
Retained earnings | 1,409,104 | 1,375,090 | ||
Accumulated other comprehensive income (loss), net of income tax: | ||||
Unrealized foreign currency translation gains (losses) | (10,309) | 3,995 | ||
Net unrealized investment gains (losses) on available-for-sale securities: | ||||
Net unrealized investment gains not other-than-temporarily impaired | 1,493 | 39,686 | ||
Net unrealized investment losses other-than-temporarily impaired | (136) | (113) | ||
Total stockholders’ equity | 1,400,584 | 1,419,101 | ||
Total liabilities and stockholders’ equity | $ 12,496,641 | $ 12,460,703 | ||
[1] | Includes $0.2 million of other-than-temporary impairment ("OTTI") losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income (loss). | |||
[2] | Includes $0.2 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income (loss). |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | ||
Investments: | ||||
Fixed-maturity securities available for sale, amortized cost | $ 1,983,956 | [1] | $ 1,877,326 | [2] |
Fixed-maturity securities held to maturity, fair value | 838,637 | 779,472 | ||
Equity securities available for sale, amortized cost | 0 | 31,331 | ||
Equity securities, at fair value, historical cost | 36,711 | 0 | ||
Trading securities, amortized cost | 23,090 | 6,172 | ||
Intangible assets, net | ||||
Accumulated amortization on definite-lived intangible assets | $ 80,335 | $ 78,633 | ||
Stockholders’ equity: | ||||
Common stock, par value | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 500,000,000 | 500,000,000 | ||
Common stock, shares issued | 43,168,000 | 44,251,000 | ||
Common stock, shares outstanding | 43,168,000 | 44,251,000 | ||
[1] | Includes $0.2 million of other-than-temporary impairment ("OTTI") losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income (loss). | |||
[2] | Includes $0.2 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income (loss). |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues: | ||||
Direct premiums | $ 667,191 | $ 637,426 | $ 1,323,278 | $ 1,265,124 |
Ceded premiums | (403,449) | (406,043) | (797,698) | (805,811) |
Net premiums | 263,742 | 231,383 | 525,580 | 459,313 |
Investment income net of investment expenses | 29,082 | 25,829 | 56,472 | 51,442 |
Interest expense on surplus note | (9,052) | (6,087) | (17,425) | (11,806) |
Net investment income | 20,030 | 19,742 | 39,047 | 39,636 |
Realized investment gains (losses), including other-than- temporary impairment losses | 1,313 | 104 | (344) | 238 |
Other, net | 14,790 | 14,150 | 28,687 | 27,089 |
Total revenues | 467,815 | 413,696 | 927,737 | 818,860 |
Benefits and expenses: | ||||
Benefits and claims | 105,069 | 99,512 | 221,960 | 201,897 |
Amortization of deferred policy acquisition costs | 53,847 | 47,861 | 114,011 | 99,710 |
Sales commissions | 82,954 | 75,440 | 165,473 | 149,144 |
Insurance expenses | 43,451 | 36,920 | 84,560 | 74,541 |
Insurance commissions | 6,417 | 5,157 | 12,294 | 10,057 |
Interest expense | 7,229 | 7,143 | 14,401 | 14,270 |
Other operating expenses | 55,083 | 45,274 | 118,311 | 98,011 |
Total benefits and expenses | 354,050 | 317,307 | 731,010 | 647,630 |
Income before income taxes | 113,765 | 96,389 | 196,727 | 171,230 |
Income taxes | 27,065 | 33,282 | 44,313 | 56,054 |
Net income | $ 86,700 | $ 63,107 | $ 152,414 | $ 115,176 |
Earnings per share: | ||||
Basic earnings per share | $ 1.96 | $ 1.36 | $ 3.41 | $ 2.48 |
Diluted earnings per share | $ 1.95 | $ 1.36 | $ 3.40 | $ 2.47 |
Weighted-average shares used in computing earnings per share: | ||||
Basic | 44,066 | 45,984 | 44,401 | 46,142 |
Diluted | 44,207 | 46,071 | 44,529 | 46,222 |
Supplemental disclosures: | ||||
Total impairment losses | $ (54) | $ (484) | $ (103) | $ (695) |
Net impairment losses recognized in earnings | (54) | (484) | (103) | (695) |
Other net realized investment gains | 828 | 588 | 1,165 | 933 |
Net gains (losses) recognized on equity securities | 539 | (1,406) | ||
Net realized investment gains (losses), including other-than- temporary impairment losses | $ 1,313 | $ 104 | $ (344) | $ 238 |
Dividends declared per share | $ 0.25 | $ 0.19 | $ 0.50 | $ 0.38 |
Commissions and Fees [Member] | ||||
Revenues: | ||||
Commissions and fees | $ 167,940 | $ 148,317 | $ 334,767 | $ 292,584 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 86,700 | $ 63,107 | $ 152,414 | $ 115,176 |
Unrealized investment gains (losses) on available-for-sale securities: | ||||
Change in unrealized holding gains (losses) on investment securities | (15,578) | 3,889 | (47,920) | 11,170 |
Reclassification adjustment for realized investment (gains) losses included in net income | (347) | (273) | (662) | (341) |
Foreign currency translation adjustments: | ||||
Change in unrealized foreign currency translation gains (losses) | (5,902) | 6,753 | (14,304) | 7,880 |
Total other comprehensive income (loss) before income taxes | (21,827) | 10,369 | (62,886) | 18,709 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | (3,379) | 1,339 | (10,293) | 3,879 |
Other comprehensive income (loss), net of income taxes | (18,448) | 9,030 | (52,593) | 14,830 |
Total comprehensive income | $ 68,252 | $ 72,137 | $ 99,821 | $ 130,006 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance, beginning of period at Dec. 31, 2016 | $ 457 | $ 52,468 | $ 1,138,851 | $ 29,598 | |
Repurchases of common stock | (11) | (69,556) | (11,972) | ||
Share-based compensation | 17,092 | ||||
Net issuance of common stock | 4 | (4) | |||
Net income | $ 115,176 | 115,176 | |||
Dividends | (17,680) | ||||
Change in foreign currency translation adjustment, net of income tax expense (benefit) | 7,792 | ||||
Change in net unrealized investment gains (losses) not-other- than temporarily impaired | 7,031 | ||||
Change in net unrealized investment gains (losses) other-than-temporarily impaired | 7 | ||||
Balance, end of period at Jun. 30, 2017 | 1,269,253 | 450 | 1,224,375 | 44,428 | |
Balance, beginning of period at Dec. 31, 2017 | 1,419,101 | 443 | 1,375,090 | 43,568 | |
Cumulative effect from the adoption of new accounting standards, net | 24,610 | 73 | |||
Repurchases of common stock | (14) | (18,353) | (120,646) | ||
Share-based compensation | 18,356 | ||||
Net issuance of common stock | 3 | $ (3) | |||
Net income | 152,414 | 152,414 | |||
Dividends | (22,364) | ||||
Change in foreign currency translation adjustment, net of income tax expense (benefit) | (14,304) | ||||
Change in net unrealized investment gains (losses) not-other- than temporarily impaired | (38,266) | ||||
Change in net unrealized investment gains (losses) other-than-temporarily impaired | (23) | ||||
Balance, end of period at Jun. 30, 2018 | $ 1,400,584 | $ 432 | $ 1,409,104 | $ (8,952) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 152,414 | $ 115,176 |
Adjustments to reconcile net income to cash provided by (used in) operating activities: | ||
Change in future policy benefits and other policy liabilities | 111,917 | 139,105 |
Deferral of policy acquisition costs | (221,934) | (208,391) |
Amortization of deferred policy acquisition costs | 114,011 | 99,710 |
Change in income taxes | 6,023 | 10,020 |
Realized investment (gains) losses, including other-than-temporary impairments | 344 | (238) |
Accretion and amortization of investments | (675) | (684) |
Depreciation and amortization | 5,994 | 6,994 |
Change in reinsurance recoverables | (9,280) | 11,394 |
Change in agent balances, due premiums and other receivables | (9,780) | (13,475) |
Trading securities sold, matured, or called (acquired), net | (18,309) | (8,173) |
Share-based compensation | 13,392 | 11,667 |
Change in other operating assets and liabilities, net | 19,918 | (43,235) |
Net cash provided by (used in) operating activities | 164,035 | 119,870 |
Cash flows from investing activities: | ||
Fixed-maturity securities — sold | 30,825 | 43,232 |
Fixed-maturity securities — matured or called | 209,438 | 98,904 |
Available-for-sale equity securities — sold | 562 | |
Equity securities — sold | 1,819 | |
Fixed-maturity securities — acquired | (357,861) | (214,974) |
Available-for-sale equity securities — acquired | (212) | |
Equity securities — acquired | (130) | |
Purchases of property and equipment and other investing activities, net | (6,154) | (6,194) |
Cash collateral received (returned) on loaned securities, net | (7,690) | 42,229 |
Sales (purchases) of short-term investments using securities lending collateral, net | 7,690 | (42,229) |
Net cash provided by (used in) investing activities | (122,063) | (78,682) |
Cash flows from financing activities: | ||
Dividends paid | (22,364) | (17,680) |
Common stock repurchased | (133,776) | (75,042) |
Tax withholdings on share-based compensation | (5,237) | (6,497) |
Net cash provided by (used in) financing activities | (161,377) | (99,219) |
Effect of foreign exchange rate changes on cash | (1,277) | 554 |
Change in cash and cash equivalents | (120,682) | (57,477) |
Cash and cash equivalents, beginning of period | 279,962 | 211,976 |
Cash and cash equivalents, end of period | $ 159,280 | $ 154,499 |
Description of Business, Basis
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
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, managed investments 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 Tennessee, owns National Benefit Life Insurance Company ("NBLIC"), a New York life insurance company. Peach Re, Inc. ("Peach Re") and Vidalia Re, Inc. ("Vidalia Re") are 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 June 30, 2018 and December 31, 2017, the statements of income and comprehensive income (loss) for the three and six months ended June 30, 2018 and 2017, and the statements of stockholders' equity and cash flows for the six months ended June 30, 2018 and 2017. 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, 2017 ("2017 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"), future policy benefit reserves and corresponding amounts recoverable from reinsurers, 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 U.S. GAAP. 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. Significant Accounting Policies . All significant accounting policies remain unchanged from the 2017 Annual Report unless otherwise described. New Accounting Principles. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"). ASU 2014-09 clarifies the principles for recognizing revenue by establishing the core principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue that is recognized. Insurance contracts are specifically excluded from the scope of ASU 2014-09 and therefore revenue from our insurance product lines is not affected by the new standard. We adopted the amendments in ASU 2014-09 during the first quarter of 2018 using the modified retrospective method. The cumulative effect of adopting ASU 2014-09 resulted in an increase to retained earnings of $24.7 million or 1.7% on January 1, 2018. The adjustment recognized upon the adoption of ASU 2014-09 primarily consisted of recognizing the after tax net impact of renewal commissions we anticipate collecting in future periods less the portion we pay to our agents for the sale of prepaid legal service subscriptions and the referral of auto and homeowners’ insurance policies in our Corporate and Other Distributed Products segment made prior to January 1, 2018. Specifically, the cumulative effect adjustment recognized as of January 1, 2018 increased the following balance sheet line items: January 1, 2018 (In thousands) Agent balances, due premiums and other receivables $ 45,730 Other liabilities 14,400 Income taxes (Liabilities) 6,647 Retained earnings 24,683 After the initial product sale or referral, we earn commissions from product providers for our distribution services as clients pay ongoing subscription fees for prepaid legal service subscriptions or premiums on auto and homeowners’ insurance policies purchased through our referral channel. Prior to the adoption of ASU 2014-09, we recognized commission revenue upon receipt of the commission revenue from the product providers, which is the point in time when revenue becomes fixed and determinable, as the commissions earned are dependent on our clients’ future renewal activity. After the adoption of ASU 2014-09, we recognize commission revenue equal to the expected value of the commissions we will earn over the life of the subscription or the referred policy when that initial subscription sale or policy referral occurs, which coincides with when we satisfy our performance obligation to the product provider. The application of ASU 2014-09 did not result in any material changes in the line items within our statements of income and comprehensive income (loss) during the three and six months ended June 30, 2018 or our statement of cash flows during the six months ended June 30, 2018 as compared with guidance in effect prior to the adoption of ASU 2014-09, primarily due to the immaterial amount of revenue associated with these product distributions as well as the offsetting effect of replacing revenue for commissions received from existing sales prior to adopting ASU 2014-09 with revenue for future estimated commissions from new sales subsequent to adopting ASU 2014-09. Likewise, the application of ASU 2014-09 as compared with guidance in effect prior to the adoption of ASU 2014-09 did not have a material effect on the line items within our balance sheet or statement of stockholders’ equity between January 1, 2018 and June 30, 2018. In addition, no changes in the timing or measurement of revenue recognition have been made in any of our other product lines as discussed further in Note 13 (Revenue from Contracts with Customers). In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instruments—Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities In February 2018, the FASB issued Accounting Standards Update No. 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income Future Application of Accounting Standards. Recent accounting guidance not discussed above 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 recently-issued accounting guidance that has not yet been adopted, see Note 1 (Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies) to our consolidated financial statements within our 2017 Annual Report. Income Taxes. On December 22, 2017, the Tax Reform Act was enacted in the United States, which includes a broad range of tax reforms affecting businesses, including corporate tax rates, business deductions, and international tax provisions. Under U.S. GAAP, the effects of new legislation are recognized upon enactment, which, for federal legislation, is the date the president signs a bill into law. Accordingly, we recognized the tax effects of the Tax Reform Act as of December 31, 2017. Amounts recognized as of December 31, 2017 represent reasonable estimates based on obtaining, preparing, and analyzing the information necessary to account for the tax effects of the Tax Reform Act under Accounting Standards Codification Topic 740, Income Taxes ( " ASC 740 " ). However, the breadth and complexity of reforms included in the Tax Reform Act combined with the lack of precedent in its application may result in changes to the tax effects recognized when interpretations of the legislation are finalized, including the Company’s application of any additional guidance that may be issued by U.S. tax authorities. The SEC staff issued Staff Accounting Bulletin No. 118, which allows companies to recognize provisional amounts for the tax effects resulting from the enactment of the Tax Reform Act for which the accounting under ASC 740 is incomplete but a reasonable estimate can be determined. Adjustments to these provisional amounts, if any, are to be completed within a measurement period not to exceed one year. As of June 30, 2018, we continued the effort to finalize our analysis of the incomplete areas and make any necessary adjustments to the provisional amounts recognized as of December 31, 2017. We identified the following updates to the areas discussed in the 2017 Annual Report that were or remain incomplete and subject to adjustment when the necessary information is available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting: • The Company has made a policy election to account for estimated taxes in regard to global intangible low-taxed income under the provisions o f the Tax Reform Act by recognizing such taxes as incurred. We recognized $1.0 million and $2.0 million of income • We refined the provisional amount recognized for the one-time mandatory deemed repatriation of Canadian earnings required by the Tax Reform Act, which resulted in $0 and $1.8 million • No changes have been made to the provisional amount recognized as of December 31, 2017 for the timing difference for the haircut on deductibility of future policy benefit reserves prescribed in the Tax Reform Act. The provisional amount could be subject to change upon the Company’s final computation as it relates to insurance contracts identified with cash value features. Adjustments to the provisional amount are not expected to impact the Company’s effective income tax rate or net deferred tax liability position but could impact the timing of when such temporary differences are eliminated. We expect to finalize our analysis of the incomplete areas and make any necessary adjustments during the second half of 2018. The Tax Reform Act reduced the U.S. federal statutory rate from 35% to 21% effective January 1, 2018 and had a significant impact on our effective tax rate during the three and six months ended June 30, 2018 as compared with the three and six months ended June 30, 2017. We have presented the primary components impacting our effective tax rate as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 U.S. federal statutory rate 21.0 % 35.0 % 21.0 % 35.0 % Difference between foreign statutory rate and U.S. statutory rate 1.0 % (1.6 )% 1.2 % (1.7 )% Excess tax benefits recognized on share-based compensation (0.6 )% (1.0 )% (1.2 )% (2.5 )% Tax on global intangible low-taxed income under the provisions of the Tax Reform Act 0.9 % — % 1.0 % — % Updates to the provisional amount recognized for the one-time mandatory deemed repatriation of Canadian earnings required by the Tax Reform Act — % — % (0.9 )% — % Other 1.5 % 2.1 % 1.4 % 1.9 % Effective tax rate 23.8 % 34.5 % 22.5 % 32.7 % 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 June 30, 2018 . |
Segment and Geographical Inform
Segment and Geographical Information | 6 Months Ended |
Jun. 30, 2018 | |
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. Notable information included in profit or loss by segment was as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Revenues: Term life insurance segment $ 272,978 $ 238,901 $ 543,286 $ 472,953 Investment and savings products segment 162,841 143,774 324,883 284,180 Corporate and other distributed products segment 31,996 31,021 59,568 61,727 Total revenues $ 467,815 $ 413,696 $ 927,737 $ 818,860 Net investment income: Term life insurance segment $ 3,246 $ 2,347 $ 6,334 $ 4,650 Investment and savings products segment - - - - Corporate and other distributed products segment 16,784 17,395 32,713 34,986 Total net investment income $ 20,030 $ 19,742 $ 39,047 $ 39,636 Amortization of DAC: Term life insurance segment $ 51,257 $ 44,937 $ 107,930 $ 95,070 Investment and savings products segment 2,080 2,310 5,521 4,044 Corporate and other distributed products segment 510 614 560 596 Total amortization of DAC $ 53,847 $ 47,861 $ 114,011 $ 99,710 Non-cash share-based compensation expense: Term life insurance segment $ 793 $ 301 $ 2,966 $ 2,077 Investment and savings products segment 325 361 1,518 1,541 Corporate and other distributed products segment 773 1,261 8,908 8,049 Total non-cash share-based compensation expense $ 1,891 $ 1,923 $ 13,392 $ 11,667 Income (loss) before income taxes: Term life insurance segment $ 75,828 $ 61,854 $ 135,448 $ 110,877 Investment and savings products segment 43,227 39,684 83,214 76,803 Corporate and other distributed products segment (5,290 ) (5,149 ) (21,935 ) (16,450 ) Total income before income taxes $ 113,765 $ 96,389 $ 196,727 $ 171,230 Total assets by segment were as follows: June 30, 2018 December 31, 2017 (In thousands) Assets: Term life insurance segment $ 6,307,722 $ 6,205,837 Investment and savings products segment (1) 2,512,547 2,684,717 Corporate and other distributed products segment 3,676,372 3,570,149 Total assets $ 12,496,641 $ 12,460,703 (1) 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 June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Revenues by country: United States $ 395,710 $ 349,388 $ 779,504 $ 689,182 Canada 72,105 64,308 148,233 129,678 Total revenues $ 467,815 $ 413,696 $ 927,737 $ 818,860 Income before income taxes by country: United States $ 94,100 $ 77,511 $ 157,314 $ 135,543 Canada 19,665 18,878 39,413 35,687 Total income before income taxes $ 113,765 $ 96,389 $ 196,727 $ 171,230 June 30, 2018 December 31, 2017 (In thousands) Long-lived assets by country: United States $ 26,122 $ 27,443 Canada 546 656 Total long-lived assets $ 26,668 $ 28,099 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | (3) Investments Available-for-sale Securities. The period-end amortized cost, gross unrealized gains and losses, and fair value of available-for-sale securities were as follows: June 30, 2018 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 $ 11,636 $ 165 $ (87 ) $ 11,714 Foreign government 148,158 4,033 (1,144 ) 151,047 States and political subdivisions 54,943 1,076 (388 ) 55,631 Corporates 1,391,181 17,607 (18,262 ) 1,390,526 Residential mortgage-backed securities 161,338 2,388 (2,344 ) 161,382 Commercial mortgage-backed securities 136,639 1,973 (2,469 ) 136,143 Other asset-backed securities 80,061 210 (824 ) 79,447 Total available-for-sale securities (1) $ 1,983,956 $ 27,452 $ (25,518 ) $ 1,985,890 (1) December 31, 2017 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 $ 11,577 $ 283 $ (47 ) $ 11,813 Foreign government 139,486 5,651 (648 ) 144,489 States and political subdivisions 54,714 1,554 (141 ) 56,127 Corporates 1,337,321 42,616 (3,655 ) 1,376,282 Residential mortgage-backed securities 119,672 3,583 (297 ) 122,958 Commercial mortgage-backed securities 134,003 2,299 (910 ) 135,392 Other asset-backed securities 80,553 452 (224 ) 80,781 Total fixed-maturity securities (1) 1,877,326 56,438 (5,922 ) 1,927,842 Equity securities 31,331 9,796 (20 ) 41,107 Total fixed-maturity and equity securities $ 1,908,657 $ 66,234 $ (5,942 ) $ 1,968,949 (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 as of June 30, 2018 was as follows: Amortized cost Fair value (In thousands) Due in one year or less $ 167,037 $ 168,983 Due after one year through five years 861,401 864,997 Due after five years through 10 years 526,109 520,398 Due after 10 years 51,371 54,540 1,605,918 1,608,918 Mortgage- and asset-backed securities 378,038 376,972 Total fixed-maturity securities $ 1,983,956 $ 1,985,890 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: June 30, 2018 December 31, 2017 (In thousands) Net unrealized investment gains on available-for-sale securities including OTTI: Available-for-sale securities $ 1,934 $ 60,292 (1) OTTI 172 174 Net unrealized investment gains on available-for-sale securities excluding OTTI 2,106 60,466 Deferred income taxes (613 ) (20,780 ) Net unrealized investment gains on available-for-sale securities excluding OTTI, net of tax $ 1,493 $ 39,686 (1) Trading Securities. The amortized cost and fair value of the securities classified as trading securities were as follows: June 30, 2018 December 31, 2017 Amortized cost Fair value Amortized cost Fair value (In thousands) Fixed-maturity securities $ 23,090 $ 23,079 $ 4,801 $ 4,800 Equity securities (1) - - 1,371 1,428 Total trading securities $ 23,090 $ 23,079 $ 6,172 $ 6,228 (1) . 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, 2030 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 VIE 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 June 30, 2018, the LLC Note, which was rated A+ by Fitch Ratings, had an estimated unrealized holding loss of $5.2 million 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 $10.1 million and $11.1 million as of June 30, 2018 and December 31, 2017, 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 $82.1 million and $89.8 million as of June 30, 2018 and December 31, 2017, respectively. Investment Income. The components of net investment income were as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Fixed-maturity securities (available-for-sale) $ 19,743 $ 19,200 $ 39,031 $ 38,269 Fixed-maturity security (held-to-maturity) 9,052 6,087 17,425 11,806 Equity securities 466 515 979 1,051 Policy loans and other invested assets 390 316 801 622 Cash and cash equivalents 641 246 1,227 439 Total return on deposit asset underlying 10% coinsurance agreement (1) 895 770 788 1,801 Gross investment income 31,187 27,134 60,251 53,988 Investment expenses (2,105 ) (1,305 ) (3,779 ) (2,546 ) Investment income net of investment expenses 29,082 25,829 56,472 51,442 Interest expense on surplus note (9,052 ) (6,087 ) (17,425 ) (11,806 ) Net investment income $ 20,030 $ 19,742 $ 39,047 $ 39,636 (1) The components of net realized investment gains (losses) recognized in net income as well as details on gross realized investment gains and losses were as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Net realized investment gains (losses): Gross gains from sales of available-for-sale securities $ 404 $ 770 $ 786 $ 1,064 Gross losses from sales of available-for-sale securities (3 ) (13 ) (21 ) (28 ) OTTI losses of available-for-sale securities (54 ) (484 ) (103 ) (695 ) Net gains (losses) recognized in net income during the period on equity securities 539 - (1,406 ) - Gains (losses) from bifurcated options 427 (169 ) 400 (103 ) Net realized investment gains (losses) $ 1,313 $ 104 $ (344 ) $ 238 The proceeds from sales or other redemptions of available-for-sale securities were as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Proceeds from sales or other redemptions $ 118,557 $ 67,721 $ 240,263 $ 142,698 The components of net gains (losses) recognized in net income during the three and six months ended June 30, 2018 on equity securities still held as of period-end were as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Net gains (losses) recognized on equity securities $ 539 $ - $ (1,406 ) $ - Less: Net gains (losses) recognized on equity securities sold (49 ) - (49 ) - Net gains (losses) recognized in net income on equity securities still held as of period-end $ 588 $ - $ (1,357 ) $ - 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 security is impaired if its fair value falls below its cost. Factors considered in determining whether an impairment 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. Available-for-sale fixed-maturity securities with a cost basis in excess of their fair values were $1,193.2 million and $529.2 million as of June 30, 2018 and December 31, 2017, 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: June 30, 2018 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 $ 6,044 $ (80 ) 5 $ 1,729 $ (7 ) 3 Foreign government 43,032 (578 ) 40 25,350 (566 ) 31 States and political subdivisions 21,410 (252 ) 19 6,229 (136 ) 7 Corporates 730,969 (15,574 ) 588 51,454 (2,688 ) 60 Residential mortgage-backed securities 97,132 (2,271 ) 49 2,332 (73 ) 6 Commercial mortgage-backed securities 100,307 (1,902 ) 82 19,084 (567 ) 24 Other asset-backed securities 52,116 (698 ) 53 10,541 (126 ) 13 Total fixed-maturity securities $ 1,051,010 $ (21,355 ) $ 116,719 $ (4,163 ) December 31, 2017 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 $ 4,754 $ (34 ) 5 $ 2,975 $ (13 ) 3 Foreign government 40,287 (465 ) 45 7,102 (183 ) 7 States and political subdivisions 7,369 (43 ) 7 6,267 (98 ) 7 Corporates 247,613 (2,323 ) 216 39,767 (1,332 ) 43 Residential mortgage-backed securities 33,610 (263 ) 16 2,592 (34 ) 8 Commercial mortgage-backed securities 60,116 (394 ) 52 22,149 (516 ) 25 Other asset-backed securities 32,605 (121 ) 33 14,819 (103 ) 19 Total fixed-maturity securities 426,354 (3,643 ) 95,671 (2,279 ) Equity securities 1,076 (16 ) 4 170 (4 ) 2 Total fixed-maturity and equity securities $ 427,430 $ (3,659 ) $ 95,841 $ (2,283 ) The amortized cost and fair value of available-for-sale fixed-maturity securities in default were as follows: June 30, 2018 December 31, 2017 Amortized cost Fair value Amortized cost Fair value (In thousands) Fixed-maturity securities in default $ 10 $ 201 $ 503 $ 654 OTTI recognized in earnings on available-for-sale securities were as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) OTTI on fixed-maturity securities not in default $ 54 $ 459 $ 103 $ 535 OTTI on fixed-maturity securities in default - - - - OTTI on equity securities (1) - 25 - 160 Total OTTI recognized in earnings $ 54 $ 484 $ 103 $ 695 (1) . 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 OTTI related to invested assets held at the Parent Company that we intended to sell to fund share repurchases. As of June 30, 2018, the unrealized losses on our available-for-sale fixed-maturity security portfolio were largely caused by interest rate sensitivity and changes in credit spreads. We believe that fluctuations caused by movement 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. OTTI recognized in earnings for available-for-sale securities were as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Total OTTI 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 $ 54 $ 459 $ 103 $ 535 Less portion of OTTI recognized in accumulated other comprehensive income (loss) - - - - OTTI recognized in earnings for securities which the Company does not intend to sell or more-likely than-not will not be required to sell 54 459 103 535 OTTI recognized in earnings for securities which the Company intends to sell or more-likely-than-not will be required to sell before recovery - 25 - 160 OTTI recognized in earnings $ 54 $ 484 $ 103 $ 695 The rollforward of the OTTI recognized in net income for all fixed-maturity securities still held was as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Cumulative OTTI recognized in net income for securities still held, beginning of period $ 4,298 $ 5,759 $ 4,346 $ 5,774 Additions for securities where no OTTI were recognized prior to the beginning of the period - - - - Additions for securities where OTTI have been recognized prior to the beginning of the period 54 459 103 535 Reductions due to sales, maturities, calls, amortization or increases in cash flows expected to be collected over the remaining life of credit impaired securities (1,058 ) (643 ) (1,155 ) (597 ) Reductions for exchanges of securities previously impaired - - - (137 ) Cumulative OTTI recognized in net income for securities still held, end of period $ 3,294 $ 5,575 $ 3,294 $ 5,575 As of June 30, 2018, no cumulative 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. The fair value of these bifurcated options was $1.3 million and $0.9 million as of June 30, 2018 and December 31, 2017, 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 (loss) was $26.4 million |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
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 or paid to transfer a liability 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 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 and yield curves, 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 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 mortgage-and asset-backed securities and equity 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: June 30, 2018 Level 1 Level 2 Level 3 Total (In thousands) Fair value assets: Available-for-sale fixed-maturity securities: U.S. government and agencies $ - $ 11,714 $ - $ 11,714 Foreign government - 151,047 - 151,047 States and political subdivisions - 55,631 - 55,631 Corporates 3,130 1,387,393 3 1,390,526 Residential mortgage-backed securities - 161,063 319 161,382 Commercial mortgage-backed securities - 136,143 - 136,143 Other asset-backed securities - 79,447 - 79,447 Total available-for-sale fixed-maturity securities 3,130 1,982,438 322 1,985,890 Equity securities 37,350 2,298 194 39,842 Trading securities - 23,079 - 23,079 Separate accounts - 2,389,007 - 2,389,007 Total fair value assets $ 40,480 $ 4,396,822 $ 516 $ 4,437,818 Fair value liabilities: Separate accounts $ - $ 2,389,007 $ - $ 2,389,007 Total fair value liabilities $ - $ 2,389,007 $ - $ 2,389,007 December 31, 2017 Level 1 Level 2 Level 3 Total (In thousands) Fair value assets: Available-for-sale fixed-maturity securities: U.S. government and agencies $ - $ 11,813 $ - $ 11,813 Foreign government - 144,489 - 144,489 States and political subdivisions - 56,127 - 56,127 Corporates 3,240 1,373,039 3 1,376,282 Residential mortgage-backed securities - 122,544 414 122,958 Commercial mortgage-backed securities - 135,392 - 135,392 Other asset-backed securities - 80,781 - 80,781 Total available-for-sale fixed-maturity securities 3,240 1,924,185 417 1,927,842 Available-for-sale equity securities 39,026 1,931 150 41,107 Trading securities 1,428 4,800 - 6,228 Separate accounts - 2,572,872 - 2,572,872 Total fair value assets $ 43,694 $ 4,503,788 $ 567 $ 4,548,049 Fair value liabilities: Separate accounts $ - $ 2,572,872 $ - $ 2,572,872 Total fair value liabilities $ - $ 2,572,872 $ - $ 2,572,872 In assessing fair value of our investments, we use a third-party pricing service for 94% 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), liquidity and yield based on quality rating, average life and U.S. 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 as of 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 U.S. 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 June 30, (1) Six months ended June 30, 2018 2017 2018 2017 (In thousands) Level 3 assets, beginning of period $ 535 $ 9,788 $ 567 $ 8,162 Net unrealized gains (losses) included in other comprehensive income (4 ) 236 (13 ) 222 Realized gains (losses) and accretion (amortization) recognized in earnings, including OTTI 27 3 45 10 Purchases - 1,250 - 1,250 Settlements (42 ) (213 ) (83 ) (441 ) Transfers into Level 3 - 4 - 2,439 Transfers out of Level 3 (2) - (9,207 ) - (9,781 ) Level 3 assets, end of period $ 516 $ 1,861 $ 516 $ 1,861 (1) Activities for investments that enter Level 3 in one quarter and exit Level 3 in another quarter within the same fiscal year are not eliminated until year-end when only the full year amounts are presented. (2) During the three and six months ended June 30, 2017, transfers out of Level 3 assets primarily consisted of newly issued fixed-maturity securities in the previous quarter for which observable inputs, most notably quoted prices, used to derive valuations became 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. There were no material transfers between Level 1 and Level 2 or between Level 1 and Level 3 during the three and six months ended June 30, 2018 and 2017. The carrying values and estimated fair values of our financial instruments were as follows: June 30, 2018 December 31, 2017 Carrying value Estimated fair value Carrying value Estimated fair value (In thousands) Assets: Fixed-maturity securities (available-for-sale) $ 1,985,890 $ 1,985,890 $ 1,927,842 $ 1,927,842 Fixed-maturity security (held-to-maturity) (3) 843,810 838,637 737,150 779,472 Available-for-sale equity securities - - 41,107 41,107 Equity securities 39,842 39,842 - - Trading securities 23,079 23,079 6,228 6,228 Policy loans (3) 30,954 30,954 32,816 32,816 Deposit asset underlying 10% coinsurance agreement (3) 223,105 223,105 217,336 217,336 Separate accounts 2,389,007 2,389,007 2,572,872 2,572,872 Liabilities: Notes payable (1) (2) $ 373,474 $ 384,401 $ 373,288 $ 400,628 Surplus note (1) (3) 843,073 838,459 736,381 778,050 Separate accounts 2,389,007 2,389,007 2,572,872 2,572,872 (1) Carrying value amounts shown are net of issuance costs. (2) Classified as a level 2 fair value measurement. (3) Classified as a level 3 fair value measurement. 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. Financial Instruments Recognized at Fair Value in the Balance Sheet. 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 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. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2018 | |
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 were as follows: June 30, 2018 December 31, 2017 (Dollars in thousands) Direct life insurance in force $ 776,662,402 $ 767,001,938 Amounts ceded to other companies (677,001,612 ) (668,446,638 ) Net life insurance in force $ 99,660,790 $ 98,555,300 Percentage of reinsured life insurance in force 87 % 87 % Reinsurance recoverables include ceded reserve balances and ceded claim liabilities. Reinsurance recoverables and financial strength ratings by reinsurer were as follows: June 30, 2018 December 31, 2017 Reinsurance recoverables A.M. Best rating Reinsurance recoverables A.M. Best rating (In thousands) Pecan Re Inc. (1) (2) $ 2,740,406 NR $ 2,725,795 NR SCOR Global Life Reinsurance Companies (3) 358,777 A+ 354,458 A+ Munich Re of Malta (2) (5) 287,853 NR 302,391 NR Swiss Re Life & Health America Inc. (4) 237,868 A+ 245,543 A+ American Health and Life Insurance Company (2) 171,072 B 172,956 B Munich American Reassurance Company 113,630 A+ 112,841 A+ Korean Reinsurance Company 102,602 A 102,915 A RGA Reinsurance Company 89,156 A+ 90,037 A+ Hannover Life Reassurance Company 31,126 A+ 32,250 A+ TOA Reinsurance Company 24,446 A 24,619 A All other reinsurers 42,339 - 41,368 - Reinsurance recoverables $ 4,199,275 $ 4,205,173 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 recoverables 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) Benefits and claims ceded to reinsurers during the three and six months ended June 30, 2018 were $312.9 million and $653.2 million, respectively, compared to $334.3 million and $677.2 million for the three and six months ended June 30, 2017, respectively. |
Policy Claims and Other Benefit
Policy Claims and Other Benefits Payable | 6 Months Ended |
Jun. 30, 2018 | |
Liability For Future Policy Benefits And Unpaid Claims And Claims Adjustment Expense [Abstract] | |
Policy Claims and Other Benefits Payable | (6) Policy Claims and Other Benefits Payable Changes in policy claims incurred and other benefits payable were as follows: Six months ended June 30, 2018 2017 (In thousands) Policy claims and other benefits payable, beginning of period $ 307,401 $ 268,136 Less reinsured policy claims and other benefits payable 322,137 323,195 Net balance, beginning of period (14,736 ) (55,059 ) Incurred related to current year 90,659 82,358 Incurred related to prior years (1) (2,233 ) 2,033 Total incurred 88,426 84,391 Claims paid related to current year, net of reinsured policy claims received (152,561 ) (122,097 ) Reinsured policy claims received related to prior years, net of claims paid 24,575 57,146 Total paid (127,986 ) (64,951 ) Foreign currency translation (267 ) 154 Net balance, end of period (54,563 ) (35,465 ) Add reinsured policy claims and other benefits payable 341,453 303,095 Balance, end of period $ 286,890 $ 267,630 (1) des the difference between our estimate of claims incurred but not yet reported as of period end and the actual incurred claims reported after period end. The liability for policy claims and other benefits payable on traditional life insurance products includes estimated unpaid claims that have been reported to us and claims incurred but not yet reported. We estimate claims incurred but not yet reported based on our historical claims activity and reported lag time experience. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | (7) Stockholders’ Equity A reconciliation of the number of shares of our common stock follows: Six months ended June 30, 2018 2017 (In thousands) Common stock, beginning of period 44,251 45,721 Shares issued for stock options exercised - 38 Shares of common stock issued upon lapse of restricted stock units ("RSUs") 329 341 Common stock retired (1,412 ) (1,065 ) Common stock, end of period 43,168 45,035 The above reconciliation excludes RSUs and performance-based stock units (“PSUs”), which do not have voting rights. As sales restrictions on RSUs lapse and PSUs are earned, we issue common shares with voting rights. As of June 30, 2018, we had a total of 717,358 RSUs and 85,010 PSUs outstanding. The PSU outstanding balance is based on the target number of PSUs granted pursuant to the award agreements; however, the actual number of common shares issued could be higher or lower based on actual versus target performance. See Note 9 (Share Based Transactions) for discussion of the PSU award structure. On February 6, 2018, our Board of Directors authorized a share repurchase program for up to $275.0 million of our outstanding common stock for purchases through June 30, 2019 (the “share repurchase program”). Under the share repurchase program, we repurchased 1,358,480 shares of our common stock in the open market for an aggregate purchase price of $133.7 million through June 30, 2018. Approximately $141.3 million remains available for repurchases of our outstanding common stock under the share repurchase program as of June 30, 2018. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (8) Earnings Per Share The Company has outstanding common stock and equity awards that consist of RSUs, PSUs and stock options. The 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 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 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 from net income any dividends and undistributed earnings allocated to unvested RSUs 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 and the cash received for the exercise price on 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 was as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands, except per-share amounts) Basic EPS: Numerator: Net income $ 86,700 $ 63,107 $ 152,414 $ 115,176 Income attributable to unvested participating securities (483 ) (430 ) (917 ) (859 ) Net income used in calculating basic EPS $ 86,217 $ 62,677 $ 151,497 $ 114,317 Denominator: Weighted-average vested shares 44,066 45,984 44,401 46,142 Basic EPS $ 1.96 $ 1.36 $ 3.41 $ 2.48 Diluted EPS: Numerator: Net income $ 86,700 $ 63,107 $ 152,414 $ 115,176 Income attributable to unvested participating securities (482 ) (430 ) (915 ) (857 ) Net income used in calculating diluted EPS $ 86,218 $ 62,677 $ 151,499 $ 114,319 Denominator: Weighted-average vested shares 44,066 45,984 44,401 46,142 Dilutive effect of incremental shares to be issued for contingently-issuable shares 141 87 128 80 Weighted-average shares used in calculating diluted EPS 44,207 46,071 44,529 46,222 Diluted EPS $ 1.95 $ 1.36 $ 3.40 $ 2.47 |
Share-Based Transactions
Share-Based Transactions | 6 Months Ended |
Jun. 30, 2018 | |
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, PSUs, and stock payment awards, as well as cash-based awards. In addition to time-based vesting requirements, awards granted under the OIP may also be subject to specified performance criteria. Since 2010, the Company has issued equity awards under the OIP to our management (officers and other key employees), non-employees who serve on our Board of Directors, and sales force leaders. For more information on equity awards granted under the OIP, see Note 14 (Share-Based Transactions) to our consolidated financial statements within our 2017 Annual Report. Equity awards granted to our sales force prior to January 2018 contained sales restrictions that expired over three years. Because of such sales restrictions, the fair market value of the awards incorporated an illiquidity discount reflecting the risk associated with the post-vesting restrictions. Equity awards granted under quarterly contests starting in January 2018 no longer contain sales restrictions, thereby eliminating the need to incorporate an illiquidity discount. These awards are measured using the fair value at the conclusion of the quarterly contest. Awards granted before January 2018 maintain the post-vest restrictions established at the time of grant. In connection with our granting of equity awards to management and members of the Board of Directors, we recognize expense over the requisite service period of the equity award. We defer and amortize the fair value of equity awards granted to our sales force in the same manner as other deferred policy acquisition cost for those awards that 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. All equity awards granted to our sales force that are not directly related to the successful acquisition of life insurance policies are recognized as expense in the quarter granted and earned. The impacts of equity awards granted are as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Total equity awards expense recognized $ 1,891 $ 1,923 $ 13,392 $ 11,667 Quarterly incentive awards expense deferred 2,485 2,668 4,979 5,418 On February 26, 2018, the Compensation Committee of our Board of Directors granted the following equity awards to employees as part of the annual approval of management incentive compensation: • 94,758 RSUs awarded to management with a measurement-date fair value of $100.55 per unit that have time-based vesting requirements with equal and annual graded vesting over approximately three years subsequent to the grant date. • 30,579 PSUs awarded under the OIP to our four top executives with a measurement-date fair value of $100.55 per unit. The PSUs will be earned on March 1, 2021 contingent upon the Company achieving a target annual average three-year return on adjusted equity (“ROAE”) for the period from January 1, 2018 through December 31, 2020. The actual number of common shares that will be issued will vary based on the actual ROAE relative to the target ROAE and can range from zero to 45,868 shares. All awards granted to employees on February 26, 2018 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, 2020, even if that employee retires prior to the completion of the three-year performance period. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
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. At June 30, 2018, the amount of the LOC outstanding was $326.2 million. This amount will decline over the remaining term of the LOC to correspond with declines in the Regulation XXX reserves. As of June 30, 2018, the Company was in compliance with all financial covenants under the Credit Facility Agreement. 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 2017 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 unclaimed property audits by 30 jurisdictions, currently focusing on the life insurance claims paying practices of its subsidiaries, Primerica Life and NBLIC. Other jurisdictions may pursue similar audits. The potential outcome of such audits 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 | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Other Comprehensive Income | (11) Other Comprehensive Income The components of other comprehensive income (loss) ( " " Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Foreign currency translation adjustments: Change in unrealized foreign currency translation gains (losses) before income taxes $ (5,902 ) $ 6,753 $ (14,304 ) $ 7,880 Income tax expense (benefit) on unrealized foreign currency translation gains (losses) - 74 - 88 Change in unrealized foreign currency translation gains (losses), net of income taxes $ (5,902 ) $ 6,679 $ (14,304 ) $ 7,792 Unrealized gain (losses) on available-for-sale securities: Change in unrealized holding gains (losses) arising during period before income taxes $ (15,578 ) $ 3,889 $ (47,920 ) $ 11,170 Income tax expense (benefit) on unrealized holding gains (losses) arising during period (3,306 ) 1,361 (10,154 ) 3,910 Change in unrealized holding gains (losses) on available-for-sale securities arising during period, net of income taxes (12,272 ) 2,528 (37,766 ) 7,260 Reclassification from accumulated OCI to net income for (gains) losses realized on available-for-sale securities (347 ) (273 ) (662 ) (341 ) Income tax (expense) benefit on (gains) losses reclassified from accumulated OCI to net income (73 ) (96 ) (139 ) (119 ) Reclassification from accumulated OCI to net income for (gains) losses realized on available-for-sale securities, net of income taxes (274 ) (177 ) (523 ) (222 ) Change in unrealized gains (losses) on available-for-sale securities, net of income taxes and reclassification adjustment $ (12,546 ) $ 2,351 $ (38,289 ) $ 7,038 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | (12) Debt Notes Payable. At June 30, 2018, the Company had $375.0 million of publicly-traded, senior unsecured notes (the " Senior Notes " ), with an annual interest rate of 4.75% that are scheduled to mature on July 15, 2022. As of June 30, 2018, we were in compliance with the covenants of the Senior Notes. No events of default occurred on the Senior Notes during the three and six months ended June 30, 2018. Further discussion on the Company’s Senior Notes is included in Note 10 (Debt) to our consolidated financial statements within our 2017 Annual Report. Surplus Note. At June 30, 2018, the principal amount outstanding on the Surplus Note issued by Vidalia Re was $843.8 million, which is equal to the principal amount of the LLC Note. The principal amount of both the Surplus Note and the LLC Note will fluctuate over time to coincide with the amount of policy reserves being contractually supported under the Vidalia Re Coinsurance Agreement. Both the LLC Note and the Surplus Note mature on December 31, 2030 and bear interest at an annual interest rate of 4.50%. Based on the estimated reserves for policies issued in 2011 through 2016 that have been ceded under the Vidalia Re Coinsurance Agreement, the principal amounts of the Surplus Note and the LLC Note are expected to reach $1.3 billion each. The Vidalia Re Coinsurance Agreement also provides the option for Primerica Life to cede level-premium term life insurance policies issued in 2017 to Vidalia Re at a future date. This financing arrangement is non-recourse to the Parent Company and Primerica Life, meaning that neither of these companies has guaranteed the Surplus Note or is otherwise liable for reimbursement for any payments triggered by the LLC Note’s credit enhancement feature. The Parent Company has agreed to support Vidalia Re’s obligation to pay the credit enhancement fee incurred on the LLC Note. 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 2017 Annual Report. Revolving Credit Facility. We maintain an unsecured $200.0 million revolving credit facility ("Revolving Credit Facility") with a syndicate of commercial banks that has a scheduled termination date of December 19, 2022. Amounts outstanding under the Revolving Credit Facility bear interest at a periodic rate equal to LIBOR or the base rate, plus in either case an applicable margin. The Revolving Credit Facility also permits the issuance of letters of credit. The applicable margins are based on our debt rating with such margins for LIBOR rate loans and letters of credit ranging from 1.125% to 1.625% per annum and for base rate loans ranging from 0.125% to 0.625% per annum. Under the Revolving Credit Facility, we incur a commitment fee that is payable quarterly in arrears and is determined by our debt rating. This commitment fee ranges from 0.125% to 0.225% per annum of the aggregate $200.0 million commitment of the lenders under the Revolving Credit Facility. As of June 30, 2018, no amounts have been drawn under the Revolving Credit Facility and we were in compliance with its covenants. Furthermore, no events of default have occurred under the Revolving Credit Facility during the three and six months ended June 30, 2018. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contract with Customers | (13) Revenue from Contracts with Customers Our revenues from contracts with customers primarily include: • Commissions and fees earned for the marketing and distribution of investment and savings products underwritten by mutual fund companies and annuity providers. For purposes of ASU 2014-09, mutual fund companies and annuity providers are considered the customers in marketing and distribution arrangements. • Fees earned for investment advisory and administrative services within our managed investments programs. • Account-based fees for transfer agent recordkeeping functions and non-bank custodial services. • Fees associated with the distribution of other third-party financial products. • Other revenue from the sale of miscellaneous products and services including monthly subscription fees from our sales representatives for access to Primerica Online ( " " Premiums from insurance contracts we underwrite, fees received from segregated funds insurance contracts, and income earned on our invested assets are excluded from the definition of revenues from contracts with customers in accordance with U.S. GAAP. The disaggregation of our revenues from contracts with customers were as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Term Life Insurance segment revenues: Other, net $ 10,913 $ 10,244 $ 21,328 $ 19,690 Total segment revenues from contracts with customers 10,913 10,244 21,328 19,690 Revenues from sources other than contracts with customers 262,065 228,657 521,958 453,263 Total Term Life Insurance segment revenues $ 272,978 $ 238,901 $ 543,286 $ 472,953 Investment and Savings Products segment revenues: Commissions and fees Sales-based revenues $ 64,307 $ 60,692 $ 128,768 $ 121,209 Asset-based revenues 66,230 53,066 125,771 103,529 Account-based revenues 20,438 13,282 41,033 26,499 Other, net 2,424 2,376 4,760 4,575 Total segment revenues from contracts with customers 153,399 129,416 300,332 255,812 Revenues from sources other than contracts with customers (segregated funds) 9,442 14,358 24,551 28,368 Total Investment and Savings Products segment revenues $ 162,841 $ 143,774 $ 324,883 $ 284,180 Corporate and Other Distributed Products segment revenues: Commissions and fees (1) $ 7,523 $ 6,919 $ 14,644 $ 12,979 Other, net 1,453 1,530 2,599 2,824 Total segment revenues from contracts with customers 8,976 8,449 17,243 15,803 Revenues from sources other than contracts with customers 23,020 22,572 42,325 45,924 Total Corporate and Other Distributed Products segment revenues $ 31,996 $ 31,021 $ 59,568 $ 61,727 (1) Commissions and fees for the three and six months ended June 30, 2018 include to performance obligations satisfied in a previous reporting period and represent the collection of variable consideration in the transaction price that had been previously constrained. We recognize revenue upon the satisfaction of the related performance obligation, unless the transaction price includes variable consideration that is constrained; in which case, we recognize revenue when the uncertainty associated with the constrained amount is subsequently resolved. Variable consideration is not treated as constrained to the extent it is probable that no significant reversal in the amount of cumulative revenue recognized will occur when the uncertainty associated with the variable consideration is resolved. We have no material obligations for refunds of commission and fees on contracts with customers subsequent to completion of our performance obligation. Investment and Savings Products Marketing and Distribution Services. We receive commissions and fees from mutual fund companies and annuity providers for the marketing and distribution by our licensed sales representatives of investment and savings products underwritten by such companies and providers. We recognize the sales-based marketing and distribution revenue received from such companies and providers at the point in time our performance obligation to them is satisfied, which is the trade date. The sales-based commissions from mutual fund companies and annuity providers are known and are due at the same time our performance obligation to such mutual fund companies and annuity providers is satisfied. We also receive ongoing asset-based commissions from mutual fund companies and annuity providers each reporting period based on client asset values. We do not recognize revenue for asset-based marketing and distribution commissions until the end of each subsequent reporting period when the amount becomes known and due from mutual fund companies or annuity providers as this revenue represents variable consideration that is fully constrained at the point in time our distinct performance obligation to mutual fund companies and annuity providers is satisfied. We consider variable consideration in the form of asset-based marketing and distribution commissions to be fully constrained as the amounts we will be entitled to collect are highly uncertain and susceptible to factors outside of our control. Such factors include the market values of assets under management and the length of time investors hold their accounts. Asset-based marketing and distribution commissions recognized during the current period are almost exclusively attributable to distinct performance obligations satisfied to mutual fund companies and annuity providers in previous periods. The adoption of ASU 2014-09 did not result in any changes in the timing or measurement of revenue recognition for marketing and distribution services of investment and savings products. Investment Advisory and Administrative Services. We provide investment advisory and administrative services over time to investors in the managed investments programs we offer. We recognize revenue as our performance obligation is satisfied over time for daily investment advisory and administrative services that are substantially the same and have the same pattern of delivery. Fees for these services, which are based on a percentage of client assets in managed investment programs, become known and are charged to investors during the same reporting period in which the daily investment advisory and administrative services are performed. The adoption of ASU 2014-09 did not result in any changes in the timing or measurement of revenue recognition for investment advisory and administrative services. Account-based Services. We provide distinct transfer agent recordkeeping services for certain mutual funds we distribute and non-bank custodial services to investors purchasing investment products we distribute through qualified retirement accounts in the United States. Fees charged for these account-based services consist primarily of a stated fee for each investment position or each qualified retirement account. Generally, our performance obligation for each account-based service arrangement is satisfied over time and is substantially the same with the same pattern of delivery. We recognize revenue to which we are entitled for each investment position or each qualified account over time based on the time-based pro-rata amount earned each reporting period. The adoption of ASU 2014-09 did not result in any changes in the timing or measurement of revenue recognition for account-based services. Distribution of Other Third-party Financial Products. We distribute various other financial products on behalf of third parties to consumers. We receive upfront commissions and/or renewal commissions from product providers for sales of other financial product sales we have arranged. We recognize revenue at the point in time our performance obligation to product providers is satisfied, which is generally on the date the financial product is purchased by the consumer from the product provider. For certain financial products, most notably prepaid legal subscriptions and auto and homeowners’ insurance referrals, we receive ongoing renewal commissions that coincide with recurring payments received by product providers from active subscribers or policyholders. Ongoing renewal commissions represent variable consideration that will not be resolved until after the reporting period in which our performance obligation has been satisfied. We estimate variable consideration in the transaction price for these financial products (with the exception of miscellaneous products for which we expect nominal ongoing commissions) as the expected amount of commissions to be received over the life of the subscription or referred policy and apply a constraint so that it is probable that a subsequent change in estimate will not result in a significant revenue reversal. Management judgement primarily is required to determine the average life of a subscription or referred policy, which we establish based on historical information. We recognize variable consideration in excess of the amount constrained in subsequent reporting periods when the uncertainty is resolved and the excess amounts are due from the product providers. Prior to the adoption of ASU 2014-09, we recognized revenue for ongoing renewal commissions associated with other third-party financial products upon receipt of the commission revenue from the product providers, which is the point in time when the amount became fixed and determinable. Revenue for Other Services. We recognize revenue from the sale of other miscellaneous products and services, including monthly subscription fees from our sales representatives for access to POL, upon the transfer of the promised product or service. For POL subscriptions, we satisfy our performance obligation by providing subscribers access to the promised services over time during each monthly subscription period. Revenue recognized from the sale of other miscellaneous products and services becomes known and charged at the same time we satisfy the corresponding performance obligation. The adoption of ASU 2014-09 did not result in any changes in the timing or measurement of revenue recognition for revenue for other services. Contract Balances. For revenue associated with ongoing renewal commissions on other distributed financial products, we record a contract asset for the amount of ongoing renewal commissions we anticipate collecting in reporting periods subsequent to the sale or referral, less amounts that are constrained. The contract asset is reduced for commissions that are billed and become due receivables from product providers during the reporting period. Activity in the contract asset account was as follows: Three months ended June 30, 2018 Six months ended June 30, 2018 (In thousands) Balance, beginning of period $ 48,413 $ 48,533 Current period sales, net of collection of renewal commissions (245 ) (365 ) Balance, at the end of period $ 48,168 $ 48,168 No significant estimate adjustments were made to the contract asset and no impairment losses were recognized on the contract asset during the three and six months ended June 30, 2018. Incremental costs to obtain or fulfill contracts, most notably sales commissions to our sales representatives, are not incurred prior to the recognition of the related revenue. Therefore, we have no assets recognized for incremental costs to obtain or fulfill contracts. |
Description of Business, Basi21
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and December 31, 2017, the statements of income and comprehensive income (loss) for the three and six months ended June 30, 2018 and 2017, and the statements of stockholders' equity and cash flows for the six months ended June 30, 2018 and 2017. 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, 2017 ("2017 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"), future policy benefit reserves and corresponding amounts recoverable from reinsurers, 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 U.S. GAAP. 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. |
Significant Accounting Policies | Significant Accounting Policies . All significant accounting policies remain unchanged from the 2017 Annual Report unless otherwise described. |
New Accounting Principles | New Accounting Principles. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"). ASU 2014-09 clarifies the principles for recognizing revenue by establishing the core principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue that is recognized. Insurance contracts are specifically excluded from the scope of ASU 2014-09 and therefore revenue from our insurance product lines is not affected by the new standard. We adopted the amendments in ASU 2014-09 during the first quarter of 2018 using the modified retrospective method. The cumulative effect of adopting ASU 2014-09 resulted in an increase to retained earnings of $24.7 million or 1.7% on January 1, 2018. The adjustment recognized upon the adoption of ASU 2014-09 primarily consisted of recognizing the after tax net impact of renewal commissions we anticipate collecting in future periods less the portion we pay to our agents for the sale of prepaid legal service subscriptions and the referral of auto and homeowners’ insurance policies in our Corporate and Other Distributed Products segment made prior to January 1, 2018. Specifically, the cumulative effect adjustment recognized as of January 1, 2018 increased the following balance sheet line items: January 1, 2018 (In thousands) Agent balances, due premiums and other receivables $ 45,730 Other liabilities 14,400 Income taxes (Liabilities) 6,647 Retained earnings 24,683 After the initial product sale or referral, we earn commissions from product providers for our distribution services as clients pay ongoing subscription fees for prepaid legal service subscriptions or premiums on auto and homeowners’ insurance policies purchased through our referral channel. Prior to the adoption of ASU 2014-09, we recognized commission revenue upon receipt of the commission revenue from the product providers, which is the point in time when revenue becomes fixed and determinable, as the commissions earned are dependent on our clients’ future renewal activity. After the adoption of ASU 2014-09, we recognize commission revenue equal to the expected value of the commissions we will earn over the life of the subscription or the referred policy when that initial subscription sale or policy referral occurs, which coincides with when we satisfy our performance obligation to the product provider. The application of ASU 2014-09 did not result in any material changes in the line items within our statements of income and comprehensive income (loss) during the three and six months ended June 30, 2018 or our statement of cash flows during the six months ended June 30, 2018 as compared with guidance in effect prior to the adoption of ASU 2014-09, primarily due to the immaterial amount of revenue associated with these product distributions as well as the offsetting effect of replacing revenue for commissions received from existing sales prior to adopting ASU 2014-09 with revenue for future estimated commissions from new sales subsequent to adopting ASU 2014-09. Likewise, the application of ASU 2014-09 as compared with guidance in effect prior to the adoption of ASU 2014-09 did not have a material effect on the line items within our balance sheet or statement of stockholders’ equity between January 1, 2018 and June 30, 2018. In addition, no changes in the timing or measurement of revenue recognition have been made in any of our other product lines as discussed further in Note 13 (Revenue from Contracts with Customers). In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instruments—Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities In February 2018, the FASB issued Accounting Standards Update No. 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income Future Application of Accounting Standards. Recent accounting guidance not discussed above 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 recently-issued accounting guidance that has not yet been adopted, see Note 1 (Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies) to our consolidated financial statements within our 2017 Annual Report. |
Income Taxes | Income Taxes. On December 22, 2017, the Tax Reform Act was enacted in the United States, which includes a broad range of tax reforms affecting businesses, including corporate tax rates, business deductions, and international tax provisions. Under U.S. GAAP, the effects of new legislation are recognized upon enactment, which, for federal legislation, is the date the president signs a bill into law. Accordingly, we recognized the tax effects of the Tax Reform Act as of December 31, 2017. Amounts recognized as of December 31, 2017 represent reasonable estimates based on obtaining, preparing, and analyzing the information necessary to account for the tax effects of the Tax Reform Act under Accounting Standards Codification Topic 740, Income Taxes ( " ASC 740 " ). However, the breadth and complexity of reforms included in the Tax Reform Act combined with the lack of precedent in its application may result in changes to the tax effects recognized when interpretations of the legislation are finalized, including the Company’s application of any additional guidance that may be issued by U.S. tax authorities. The SEC staff issued Staff Accounting Bulletin No. 118, which allows companies to recognize provisional amounts for the tax effects resulting from the enactment of the Tax Reform Act for which the accounting under ASC 740 is incomplete but a reasonable estimate can be determined. Adjustments to these provisional amounts, if any, are to be completed within a measurement period not to exceed one year. As of June 30, 2018, we continued the effort to finalize our analysis of the incomplete areas and make any necessary adjustments to the provisional amounts recognized as of December 31, 2017. We identified the following updates to the areas discussed in the 2017 Annual Report that were or remain incomplete and subject to adjustment when the necessary information is available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting: • The Company has made a policy election to account for estimated taxes in regard to global intangible low-taxed income under the provisions o f the Tax Reform Act by recognizing such taxes as incurred. We recognized $1.0 million and $2.0 million of income • We refined the provisional amount recognized for the one-time mandatory deemed repatriation of Canadian earnings required by the Tax Reform Act, which resulted in $0 and $1.8 million • No changes have been made to the provisional amount recognized as of December 31, 2017 for the timing difference for the haircut on deductibility of future policy benefit reserves prescribed in the Tax Reform Act. The provisional amount could be subject to change upon the Company’s final computation as it relates to insurance contracts identified with cash value features. Adjustments to the provisional amount are not expected to impact the Company’s effective income tax rate or net deferred tax liability position but could impact the timing of when such temporary differences are eliminated. We expect to finalize our analysis of the incomplete areas and make any necessary adjustments during the second half of 2018. The Tax Reform Act reduced the U.S. federal statutory rate from 35% to 21% effective January 1, 2018 and had a significant impact on our effective tax rate during the three and six months ended June 30, 2018 as compared with the three and six months ended June 30, 2017. We have presented the primary components impacting our effective tax rate as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 U.S. federal statutory rate 21.0 % 35.0 % 21.0 % 35.0 % Difference between foreign statutory rate and U.S. statutory rate 1.0 % (1.6 )% 1.2 % (1.7 )% Excess tax benefits recognized on share-based compensation (0.6 )% (1.0 )% (1.2 )% (2.5 )% Tax on global intangible low-taxed income under the provisions of the Tax Reform Act 0.9 % — % 1.0 % — % Updates to the provisional amount recognized for the one-time mandatory deemed repatriation of Canadian earnings required by the Tax Reform Act — % — % (0.9 )% — % Other 1.5 % 2.1 % 1.4 % 1.9 % Effective tax rate 23.8 % 34.5 % 22.5 % 32.7 % |
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 June 30, 2018 . |
Description of Business, Basi22
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Schedule of Effective Income Tax Rate Reconciliation | The Tax Reform Act reduced the U.S. federal statutory rate from 35% to 21% effective January 1, 2018 and had a significant impact on our effective tax rate during the three and six months ended June 30, 2018 as compared with the three and six months ended June 30, 2017. We have presented the primary components impacting our effective tax rate as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 U.S. federal statutory rate 21.0 % 35.0 % 21.0 % 35.0 % Difference between foreign statutory rate and U.S. statutory rate 1.0 % (1.6 )% 1.2 % (1.7 )% Excess tax benefits recognized on share-based compensation (0.6 )% (1.0 )% (1.2 )% (2.5 )% Tax on global intangible low-taxed income under the provisions of the Tax Reform Act 0.9 % — % 1.0 % — % Updates to the provisional amount recognized for the one-time mandatory deemed repatriation of Canadian earnings required by the Tax Reform Act — % — % (0.9 )% — % Other 1.5 % 2.1 % 1.4 % 1.9 % Effective tax rate 23.8 % 34.5 % 22.5 % 32.7 % |
Accounting Standards Update 2014-09 [Member] | |
Schedule of Cumulative Effect Adjustment of Balance Sheet | Specifically, the cumulative effect adjustment recognized as of January 1, 2018 increased the following balance sheet line items: January 1, 2018 (In thousands) Agent balances, due premiums and other receivables $ 45,730 Other liabilities 14,400 Income taxes (Liabilities) 6,647 Retained earnings 24,683 |
Segment and Geographical Info23
Segment and Geographical Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Summary of Assets and Profit or Loss by Segment | Notable information included in profit or loss by segment was as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Revenues: Term life insurance segment $ 272,978 $ 238,901 $ 543,286 $ 472,953 Investment and savings products segment 162,841 143,774 324,883 284,180 Corporate and other distributed products segment 31,996 31,021 59,568 61,727 Total revenues $ 467,815 $ 413,696 $ 927,737 $ 818,860 Net investment income: Term life insurance segment $ 3,246 $ 2,347 $ 6,334 $ 4,650 Investment and savings products segment - - - - Corporate and other distributed products segment 16,784 17,395 32,713 34,986 Total net investment income $ 20,030 $ 19,742 $ 39,047 $ 39,636 Amortization of DAC: Term life insurance segment $ 51,257 $ 44,937 $ 107,930 $ 95,070 Investment and savings products segment 2,080 2,310 5,521 4,044 Corporate and other distributed products segment 510 614 560 596 Total amortization of DAC $ 53,847 $ 47,861 $ 114,011 $ 99,710 Non-cash share-based compensation expense: Term life insurance segment $ 793 $ 301 $ 2,966 $ 2,077 Investment and savings products segment 325 361 1,518 1,541 Corporate and other distributed products segment 773 1,261 8,908 8,049 Total non-cash share-based compensation expense $ 1,891 $ 1,923 $ 13,392 $ 11,667 Income (loss) before income taxes: Term life insurance segment $ 75,828 $ 61,854 $ 135,448 $ 110,877 Investment and savings products segment 43,227 39,684 83,214 76,803 Corporate and other distributed products segment (5,290 ) (5,149 ) (21,935 ) (16,450 ) Total income before income taxes $ 113,765 $ 96,389 $ 196,727 $ 171,230 |
Total Assets by Segment | Total assets by segment were as follows: June 30, 2018 December 31, 2017 (In thousands) Assets: Term life insurance segment $ 6,307,722 $ 6,205,837 Investment and savings products segment (1) 2,512,547 2,684,717 Corporate and other distributed products segment 3,676,372 3,570,149 Total assets $ 12,496,641 $ 12,460,703 (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 June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Revenues by country: United States $ 395,710 $ 349,388 $ 779,504 $ 689,182 Canada 72,105 64,308 148,233 129,678 Total revenues $ 467,815 $ 413,696 $ 927,737 $ 818,860 Income before income taxes by country: United States $ 94,100 $ 77,511 $ 157,314 $ 135,543 Canada 19,665 18,878 39,413 35,687 Total income before income taxes $ 113,765 $ 96,389 $ 196,727 $ 171,230 June 30, 2018 December 31, 2017 (In thousands) Long-lived assets by country: United States $ 26,122 $ 27,443 Canada 546 656 Total long-lived assets $ 26,668 $ 28,099 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Schedule of Investments Debt and Equity Securities [Line Items] | |
Schedule of Available-for-sale Securities | The period-end amortized cost, gross unrealized gains and losses, and fair value of available-for-sale securities were as follows: June 30, 2018 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 $ 11,636 $ 165 $ (87 ) $ 11,714 Foreign government 148,158 4,033 (1,144 ) 151,047 States and political subdivisions 54,943 1,076 (388 ) 55,631 Corporates 1,391,181 17,607 (18,262 ) 1,390,526 Residential mortgage-backed securities 161,338 2,388 (2,344 ) 161,382 Commercial mortgage-backed securities 136,639 1,973 (2,469 ) 136,143 Other asset-backed securities 80,061 210 (824 ) 79,447 Total available-for-sale securities (1) $ 1,983,956 $ 27,452 $ (25,518 ) $ 1,985,890 (1) December 31, 2017 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 $ 11,577 $ 283 $ (47 ) $ 11,813 Foreign government 139,486 5,651 (648 ) 144,489 States and political subdivisions 54,714 1,554 (141 ) 56,127 Corporates 1,337,321 42,616 (3,655 ) 1,376,282 Residential mortgage-backed securities 119,672 3,583 (297 ) 122,958 Commercial mortgage-backed securities 134,003 2,299 (910 ) 135,392 Other asset-backed securities 80,553 452 (224 ) 80,781 Total fixed-maturity securities (1) 1,877,326 56,438 (5,922 ) 1,927,842 Equity securities 31,331 9,796 (20 ) 41,107 Total fixed-maturity and equity securities $ 1,908,657 $ 66,234 $ (5,942 ) $ 1,968,949 (1) |
Fixed-maturity Securities Classified by Contractual Maturity Date | The scheduled maturity distribution of the available-for-sale fixed-maturity portfolio as of June 30, 2018 was as follows: Amortized cost Fair value (In thousands) Due in one year or less $ 167,037 $ 168,983 Due after one year through five years 861,401 864,997 Due after five years through 10 years 526,109 520,398 Due after 10 years 51,371 54,540 1,605,918 1,608,918 Mortgage- and asset-backed securities 378,038 376,972 Total fixed-maturity securities $ 1,983,956 $ 1,985,890 |
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: June 30, 2018 December 31, 2017 (In thousands) Net unrealized investment gains on available-for-sale securities including OTTI: Available-for-sale securities $ 1,934 $ 60,292 (1) OTTI 172 174 Net unrealized investment gains on available-for-sale securities excluding OTTI 2,106 60,466 Deferred income taxes (613 ) (20,780 ) Net unrealized investment gains on available-for-sale securities excluding OTTI, net of tax $ 1,493 $ 39,686 (1) |
Amortized Costs and Fair Value of Securities Classified as Trading Securities | The amortized cost and fair value of the securities classified as trading securities were as follows: June 30, 2018 December 31, 2017 Amortized cost Fair value Amortized cost Fair value (In thousands) Fixed-maturity securities $ 23,090 $ 23,079 $ 4,801 $ 4,800 Equity securities (1) - - 1,371 1,428 Total trading securities $ 23,090 $ 23,079 $ 6,172 $ 6,228 (1) . |
Net Investment Income | Investment Income. The components of net investment income were as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Fixed-maturity securities (available-for-sale) $ 19,743 $ 19,200 $ 39,031 $ 38,269 Fixed-maturity security (held-to-maturity) 9,052 6,087 17,425 11,806 Equity securities 466 515 979 1,051 Policy loans and other invested assets 390 316 801 622 Cash and cash equivalents 641 246 1,227 439 Total return on deposit asset underlying 10% coinsurance agreement (1) 895 770 788 1,801 Gross investment income 31,187 27,134 60,251 53,988 Investment expenses (2,105 ) (1,305 ) (3,779 ) (2,546 ) Investment income net of investment expenses 29,082 25,829 56,472 51,442 Interest expense on surplus note (9,052 ) (6,087 ) (17,425 ) (11,806 ) Net investment income $ 20,030 $ 19,742 $ 39,047 $ 39,636 (1) |
Schedule of Net Realized Investment Gains and Losses Recognized in Net Income | The components of net realized investment gains (losses) recognized in net income as well as details on gross realized investment gains and losses were as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Net realized investment gains (losses): Gross gains from sales of available-for-sale securities $ 404 $ 770 $ 786 $ 1,064 Gross losses from sales of available-for-sale securities (3 ) (13 ) (21 ) (28 ) OTTI losses of available-for-sale securities (54 ) (484 ) (103 ) (695 ) Net gains (losses) recognized in net income during the period on equity securities 539 - (1,406 ) - Gains (losses) from bifurcated options 427 (169 ) 400 (103 ) Net realized investment gains (losses) $ 1,313 $ 104 $ (344 ) $ 238 |
Schedule of Proceeds from Sales or Other Redemptions of Available-for-Sale Securities | The proceeds from sales or other redemptions of available-for-sale securities were as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Proceeds from sales or other redemptions $ 118,557 $ 67,721 $ 240,263 $ 142,698 |
Schedule of Unrealized Net Gains (Losses) Recognized in NI on Equity Securities Still Held at Period-End | The components of net gains (losses) recognized in net income during the three and six months ended June 30, 2018 on equity securities still held as of period-end were as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Net gains (losses) recognized on equity securities $ 539 $ - $ (1,406 ) $ - Less: Net gains (losses) recognized on equity securities sold (49 ) - (49 ) - Net gains (losses) recognized in net income on equity securities still held as of period-end $ 588 $ - $ (1,357 ) $ - |
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: June 30, 2018 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 $ 6,044 $ (80 ) 5 $ 1,729 $ (7 ) 3 Foreign government 43,032 (578 ) 40 25,350 (566 ) 31 States and political subdivisions 21,410 (252 ) 19 6,229 (136 ) 7 Corporates 730,969 (15,574 ) 588 51,454 (2,688 ) 60 Residential mortgage-backed securities 97,132 (2,271 ) 49 2,332 (73 ) 6 Commercial mortgage-backed securities 100,307 (1,902 ) 82 19,084 (567 ) 24 Other asset-backed securities 52,116 (698 ) 53 10,541 (126 ) 13 Total fixed-maturity securities $ 1,051,010 $ (21,355 ) $ 116,719 $ (4,163 ) December 31, 2017 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 $ 4,754 $ (34 ) 5 $ 2,975 $ (13 ) 3 Foreign government 40,287 (465 ) 45 7,102 (183 ) 7 States and political subdivisions 7,369 (43 ) 7 6,267 (98 ) 7 Corporates 247,613 (2,323 ) 216 39,767 (1,332 ) 43 Residential mortgage-backed securities 33,610 (263 ) 16 2,592 (34 ) 8 Commercial mortgage-backed securities 60,116 (394 ) 52 22,149 (516 ) 25 Other asset-backed securities 32,605 (121 ) 33 14,819 (103 ) 19 Total fixed-maturity securities 426,354 (3,643 ) 95,671 (2,279 ) Equity securities 1,076 (16 ) 4 170 (4 ) 2 Total fixed-maturity and equity securities $ 427,430 $ (3,659 ) $ 95,841 $ (2,283 ) |
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: June 30, 2018 December 31, 2017 Amortized cost Fair value Amortized cost Fair value (In thousands) Fixed-maturity securities in default $ 10 $ 201 $ 503 $ 654 |
OTTI in Earnings on Available-for-sale Securities | OTTI recognized in earnings on available-for-sale securities were as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) OTTI on fixed-maturity securities not in default $ 54 $ 459 $ 103 $ 535 OTTI on fixed-maturity securities in default - - - - OTTI on equity securities (1) - 25 - 160 Total OTTI recognized in earnings $ 54 $ 484 $ 103 $ 695 (1) . |
Schedule of OTTI Recognized in Earnings for Available-for-sale Securities | The rollforward of the OTTI recognized in net income for all fixed-maturity securities still held was as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Cumulative OTTI recognized in net income for securities still held, beginning of period $ 4,298 $ 5,759 $ 4,346 $ 5,774 Additions for securities where no OTTI were recognized prior to the beginning of the period - - - - Additions for securities where OTTI have been recognized prior to the beginning of the period 54 459 103 535 Reductions due to sales, maturities, calls, amortization or increases in cash flows expected to be collected over the remaining life of credit impaired securities (1,058 ) (643 ) (1,155 ) (597 ) Reductions for exchanges of securities previously impaired - - - (137 ) Cumulative OTTI recognized in net income for securities still held, end of period $ 3,294 $ 5,575 $ 3,294 $ 5,575 |
Available-for-Sale [Member] | |
Schedule of Investments Debt and Equity Securities [Line Items] | |
Schedule of OTTI Recognized in Earnings for Available-for-sale Securities | OTTI recognized in earnings for available-for-sale securities were as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Total OTTI 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 $ 54 $ 459 $ 103 $ 535 Less portion of OTTI recognized in accumulated other comprehensive income (loss) - - - - OTTI recognized in earnings for securities which the Company does not intend to sell or more-likely than-not will not be required to sell 54 459 103 535 OTTI recognized in earnings for securities which the Company intends to sell or more-likely-than-not will be required to sell before recovery - 25 - 160 OTTI recognized in earnings $ 54 $ 484 $ 103 $ 695 |
Fair Value of Financial Instr25
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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: June 30, 2018 Level 1 Level 2 Level 3 Total (In thousands) Fair value assets: Available-for-sale fixed-maturity securities: U.S. government and agencies $ - $ 11,714 $ - $ 11,714 Foreign government - 151,047 - 151,047 States and political subdivisions - 55,631 - 55,631 Corporates 3,130 1,387,393 3 1,390,526 Residential mortgage-backed securities - 161,063 319 161,382 Commercial mortgage-backed securities - 136,143 - 136,143 Other asset-backed securities - 79,447 - 79,447 Total available-for-sale fixed-maturity securities 3,130 1,982,438 322 1,985,890 Equity securities 37,350 2,298 194 39,842 Trading securities - 23,079 - 23,079 Separate accounts - 2,389,007 - 2,389,007 Total fair value assets $ 40,480 $ 4,396,822 $ 516 $ 4,437,818 Fair value liabilities: Separate accounts $ - $ 2,389,007 $ - $ 2,389,007 Total fair value liabilities $ - $ 2,389,007 $ - $ 2,389,007 December 31, 2017 Level 1 Level 2 Level 3 Total (In thousands) Fair value assets: Available-for-sale fixed-maturity securities: U.S. government and agencies $ - $ 11,813 $ - $ 11,813 Foreign government - 144,489 - 144,489 States and political subdivisions - 56,127 - 56,127 Corporates 3,240 1,373,039 3 1,376,282 Residential mortgage-backed securities - 122,544 414 122,958 Commercial mortgage-backed securities - 135,392 - 135,392 Other asset-backed securities - 80,781 - 80,781 Total available-for-sale fixed-maturity securities 3,240 1,924,185 417 1,927,842 Available-for-sale equity securities 39,026 1,931 150 41,107 Trading securities 1,428 4,800 - 6,228 Separate accounts - 2,572,872 - 2,572,872 Total fair value assets $ 43,694 $ 4,503,788 $ 567 $ 4,548,049 Fair value liabilities: Separate accounts $ - $ 2,572,872 $ - $ 2,572,872 Total fair value liabilities $ - $ 2,572,872 $ - $ 2,572,872 |
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 June 30, (1) Six months ended June 30, 2018 2017 2018 2017 (In thousands) Level 3 assets, beginning of period $ 535 $ 9,788 $ 567 $ 8,162 Net unrealized gains (losses) included in other comprehensive income (4 ) 236 (13 ) 222 Realized gains (losses) and accretion (amortization) recognized in earnings, including OTTI 27 3 45 10 Purchases - 1,250 - 1,250 Settlements (42 ) (213 ) (83 ) (441 ) Transfers into Level 3 - 4 - 2,439 Transfers out of Level 3 (2) - (9,207 ) - (9,781 ) Level 3 assets, end of period $ 516 $ 1,861 $ 516 $ 1,861 (1) Activities for investments that enter Level 3 in one quarter and exit Level 3 in another quarter within the same fiscal year are not eliminated until year-end when only the full year amounts are presented. (2) During the three and six months ended June 30, 2017, transfers out of Level 3 assets primarily consisted of newly issued fixed-maturity securities in the previous quarter for which observable inputs, most notably quoted prices, used to derive valuations became readily available. |
Carrying Values and Estimated Fair Values of Financial Instruments | The carrying values and estimated fair values of our financial instruments were as follows: June 30, 2018 December 31, 2017 Carrying value Estimated fair value Carrying value Estimated fair value (In thousands) Assets: Fixed-maturity securities (available-for-sale) $ 1,985,890 $ 1,985,890 $ 1,927,842 $ 1,927,842 Fixed-maturity security (held-to-maturity) (3) 843,810 838,637 737,150 779,472 Available-for-sale equity securities - - 41,107 41,107 Equity securities 39,842 39,842 - - Trading securities 23,079 23,079 6,228 6,228 Policy loans (3) 30,954 30,954 32,816 32,816 Deposit asset underlying 10% coinsurance agreement (3) 223,105 223,105 217,336 217,336 Separate accounts 2,389,007 2,389,007 2,572,872 2,572,872 Liabilities: Notes payable (1) (2) $ 373,474 $ 384,401 $ 373,288 $ 400,628 Surplus note (1) (3) 843,073 838,459 736,381 778,050 Separate accounts 2,389,007 2,389,007 2,572,872 2,572,872 (1) Carrying value amounts shown are net of issuance costs. (2) Classified as a level 2 fair value measurement. (3) Classified as a level 3 fair value measurement. |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Reinsurance Disclosures [Abstract] | |
In-force Life Insurance | Details on in-force life insurance were as follows: June 30, 2018 December 31, 2017 (Dollars in thousands) Direct life insurance in force $ 776,662,402 $ 767,001,938 Amounts ceded to other companies (677,001,612 ) (668,446,638 ) Net life insurance in force $ 99,660,790 $ 98,555,300 Percentage of reinsured life insurance in force 87 % 87 % |
Reinsurance Recoverables and Financial Strength Ratings by Reinsurer | Reinsurance recoverables include ceded reserve balances and ceded claim liabilities. Reinsurance recoverables and financial strength ratings by reinsurer were as follows: June 30, 2018 December 31, 2017 Reinsurance recoverables A.M. Best rating Reinsurance recoverables A.M. Best rating (In thousands) Pecan Re Inc. (1) (2) $ 2,740,406 NR $ 2,725,795 NR SCOR Global Life Reinsurance Companies (3) 358,777 A+ 354,458 A+ Munich Re of Malta (2) (5) 287,853 NR 302,391 NR Swiss Re Life & Health America Inc. (4) 237,868 A+ 245,543 A+ American Health and Life Insurance Company (2) 171,072 B 172,956 B Munich American Reassurance Company 113,630 A+ 112,841 A+ Korean Reinsurance Company 102,602 A 102,915 A RGA Reinsurance Company 89,156 A+ 90,037 A+ Hannover Life Reassurance Company 31,126 A+ 32,250 A+ TOA Reinsurance Company 24,446 A 24,619 A All other reinsurers 42,339 - 41,368 - Reinsurance recoverables $ 4,199,275 $ 4,205,173 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 recoverables 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) |
Policy Claims and Other Benef27
Policy Claims and Other Benefits Payable (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Liability For Future Policy Benefits And Unpaid Claims And Claims Adjustment Expense [Abstract] | |
Schedule of Liability For Future Policy Benefits and Unpaid Claims | Changes in policy claims incurred and other benefits payable were as follows: Six months ended June 30, 2018 2017 (In thousands) Policy claims and other benefits payable, beginning of period $ 307,401 $ 268,136 Less reinsured policy claims and other benefits payable 322,137 323,195 Net balance, beginning of period (14,736 ) (55,059 ) Incurred related to current year 90,659 82,358 Incurred related to prior years (1) (2,233 ) 2,033 Total incurred 88,426 84,391 Claims paid related to current year, net of reinsured policy claims received (152,561 ) (122,097 ) Reinsured policy claims received related to prior years, net of claims paid 24,575 57,146 Total paid (127,986 ) (64,951 ) Foreign currency translation (267 ) 154 Net balance, end of period (54,563 ) (35,465 ) Add reinsured policy claims and other benefits payable 341,453 303,095 Balance, end of period $ 286,890 $ 267,630 (1) des the difference between our estimate of claims incurred but not yet reported as of period end and the actual incurred claims reported after period end. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders Equity Note [Abstract] | |
Reconciliation of Number of Shares of Common Stock | A reconciliation of the number of shares of our common stock follows: Six months ended June 30, 2018 2017 (In thousands) Common stock, beginning of period 44,251 45,721 Shares issued for stock options exercised - 38 Shares of common stock issued upon lapse of restricted stock units ("RSUs") 329 341 Common stock retired (1,412 ) (1,065 ) Common stock, end of period 43,168 45,035 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | The calculation of basic and diluted EPS was as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands, except per-share amounts) Basic EPS: Numerator: Net income $ 86,700 $ 63,107 $ 152,414 $ 115,176 Income attributable to unvested participating securities (483 ) (430 ) (917 ) (859 ) Net income used in calculating basic EPS $ 86,217 $ 62,677 $ 151,497 $ 114,317 Denominator: Weighted-average vested shares 44,066 45,984 44,401 46,142 Basic EPS $ 1.96 $ 1.36 $ 3.41 $ 2.48 Diluted EPS: Numerator: Net income $ 86,700 $ 63,107 $ 152,414 $ 115,176 Income attributable to unvested participating securities (482 ) (430 ) (915 ) (857 ) Net income used in calculating diluted EPS $ 86,218 $ 62,677 $ 151,499 $ 114,319 Denominator: Weighted-average vested shares 44,066 45,984 44,401 46,142 Dilutive effect of incremental shares to be issued for contingently-issuable shares 141 87 128 80 Weighted-average shares used in calculating diluted EPS 44,207 46,071 44,529 46,222 Diluted EPS $ 1.95 $ 1.36 $ 3.40 $ 2.47 |
Share-Based Transactions (Table
Share-Based Transactions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Total equity awards expense recognized $ 1,891 $ 1,923 $ 13,392 $ 11,667 Quarterly incentive awards expense deferred 2,485 2,668 4,979 5,418 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of other comprehensive income (loss) ( " " Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Foreign currency translation adjustments: Change in unrealized foreign currency translation gains (losses) before income taxes $ (5,902 ) $ 6,753 $ (14,304 ) $ 7,880 Income tax expense (benefit) on unrealized foreign currency translation gains (losses) - 74 - 88 Change in unrealized foreign currency translation gains (losses), net of income taxes $ (5,902 ) $ 6,679 $ (14,304 ) $ 7,792 Unrealized gain (losses) on available-for-sale securities: Change in unrealized holding gains (losses) arising during period before income taxes $ (15,578 ) $ 3,889 $ (47,920 ) $ 11,170 Income tax expense (benefit) on unrealized holding gains (losses) arising during period (3,306 ) 1,361 (10,154 ) 3,910 Change in unrealized holding gains (losses) on available-for-sale securities arising during period, net of income taxes (12,272 ) 2,528 (37,766 ) 7,260 Reclassification from accumulated OCI to net income for (gains) losses realized on available-for-sale securities (347 ) (273 ) (662 ) (341 ) Income tax (expense) benefit on (gains) losses reclassified from accumulated OCI to net income (73 ) (96 ) (139 ) (119 ) Reclassification from accumulated OCI to net income for (gains) losses realized on available-for-sale securities, net of income taxes (274 ) (177 ) (523 ) (222 ) Change in unrealized gains (losses) on available-for-sale securities, net of income taxes and reclassification adjustment $ (12,546 ) $ 2,351 $ (38,289 ) $ 7,038 |
Revenue from Contracts with C32
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregation of Revenues from Contracts | The disaggregation of our revenues from contracts with customers were as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Term Life Insurance segment revenues: Other, net $ 10,913 $ 10,244 $ 21,328 $ 19,690 Total segment revenues from contracts with customers 10,913 10,244 21,328 19,690 Revenues from sources other than contracts with customers 262,065 228,657 521,958 453,263 Total Term Life Insurance segment revenues $ 272,978 $ 238,901 $ 543,286 $ 472,953 Investment and Savings Products segment revenues: Commissions and fees Sales-based revenues $ 64,307 $ 60,692 $ 128,768 $ 121,209 Asset-based revenues 66,230 53,066 125,771 103,529 Account-based revenues 20,438 13,282 41,033 26,499 Other, net 2,424 2,376 4,760 4,575 Total segment revenues from contracts with customers 153,399 129,416 300,332 255,812 Revenues from sources other than contracts with customers (segregated funds) 9,442 14,358 24,551 28,368 Total Investment and Savings Products segment revenues $ 162,841 $ 143,774 $ 324,883 $ 284,180 Corporate and Other Distributed Products segment revenues: Commissions and fees (1) $ 7,523 $ 6,919 $ 14,644 $ 12,979 Other, net 1,453 1,530 2,599 2,824 Total segment revenues from contracts with customers 8,976 8,449 17,243 15,803 Revenues from sources other than contracts with customers 23,020 22,572 42,325 45,924 Total Corporate and Other Distributed Products segment revenues $ 31,996 $ 31,021 $ 59,568 $ 61,727 (1) Commissions and fees for the three and six months ended June 30, 2018 include to performance obligations satisfied in a previous reporting period and represent the collection of variable consideration in the transaction price that had been previously constrained. |
Summary of Contract Asset Account | Activity in the contract asset account was as follows: Three months ended June 30, 2018 Six months ended June 30, 2018 (In thousands) Balance, beginning of period $ 48,413 $ 48,533 Current period sales, net of collection of renewal commissions (245 ) (365 ) Balance, at the end of period $ 48,168 $ 48,168 |
Description of Business, Basi33
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Jan. 02, 2018 | |
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies [Line Items] | |||||||
Equity securities, carrying value | $ 41,107 | ||||||
Tax cuts and jobs act, incomplete accounting, estimated income tax expense | $ 1,000 | $ 2,000 | |||||
Tax cuts and jobs act, incomplete accounting, change in provisional income tax expense related to deemed repatriation of Canadian earnings | $ 0 | $ 1,800 | |||||
Federal Statutory Tax Rate | 21.00% | 35.00% | 21.00% | 35.00% | 35.00% | ||
Maximum [Member] | |||||||
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies [Line Items] | |||||||
Provisional information accounting incomplete measurement period | 1 year | ||||||
Accounting Standards Update 2014-09 [Member] | |||||||
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies [Line Items] | |||||||
Cumulative effect of accounting standard adoption on retained earnings | $ 24,700 | ||||||
Percentage of cumulative effect of accounting standard adoption on retained earnings | 1.70% | ||||||
Accounting Standards Update 2016-01 [Member] | |||||||
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies [Line Items] | |||||||
Cumulative effect of accounting standard adoption on increase retained earnings | $ 7,700 | ||||||
Decrease accumulated other comprehensive income (loss) | 7,700 | ||||||
Pre-tax gains and losses in realized investment gains (losses) | $ 500 | $ 1,400 | |||||
Equity securities, carrying value | $ 1,400 | $ 1,400 | |||||
Accounting Standards Update 2018-02 [Member] | |||||||
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies [Line Items] | |||||||
Decrease to retained earnings due to accounting standard adoption to reclassify stranded tax effects from Tax Reform Act | $ 7,800 |
Description of Business, Basi34
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies - Schedule of Cumulative Effect Adjustment of Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Agent balances, due premiums and other receivables | $ 291,329 | $ 229,522 | |
Other liabilities | 495,242 | 451,398 | |
Income taxes | 182,140 | 177,468 | |
Retained earnings | $ 1,409,104 | $ 1,375,090 | |
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Agent balances, due premiums and other receivables | $ 45,730 | ||
Other liabilities | 14,400 | ||
Income taxes | 6,647 | ||
Retained earnings | $ 24,683 |
Description of Business, Basi35
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies - Schedule of Effective Income Tax Rate Reconciliation (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
U.S. federal statutory rate | 21.00% | 35.00% | 21.00% | 35.00% | 35.00% |
Difference between foreign statutory rate and U.S. statutory rate | 1.00% | (1.60%) | 1.20% | (1.70%) | |
Excess tax benefits recognized on share-based compensation | (0.60%) | (1.00%) | (1.20%) | (2.50%) | |
Tax on global intangible low-taxed income under the provisions of the Tax Reform Act | 0.90% | 1.00% | |||
Updates to the provisional amount recognized for the one-time mandatory deemed repatriation of Canadian earnings required by the Tax Reform Act | (0.90%) | ||||
Other | 1.50% | 2.10% | 1.40% | 1.90% | |
Effective tax rate | 23.80% | 34.50% | 22.50% | 32.70% |
Segment and Geographical Info36
Segment and Geographical Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2018Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment and Geographical Info37
Segment and Geographical Information - Summary of Assets and Profit or Loss by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 467,815 | $ 413,696 | $ 927,737 | $ 818,860 | ||
Net investment income | 20,030 | 19,742 | 39,047 | 39,636 | ||
Amortization of deferred policy acquisition costs | 53,847 | 47,861 | 114,011 | 99,710 | ||
Share-based compensation | 1,891 | 1,923 | 13,392 | 11,667 | ||
Income (loss) before income taxes | 113,765 | 96,389 | 196,727 | 171,230 | ||
Assets | 12,496,641 | 12,496,641 | $ 12,460,703 | |||
Term Life Insurance Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 272,978 | 238,901 | 543,286 | 472,953 | ||
Net investment income | 3,246 | 2,347 | 6,334 | 4,650 | ||
Amortization of deferred policy acquisition costs | 51,257 | 44,937 | 107,930 | 95,070 | ||
Share-based compensation | 793 | 301 | 2,966 | 2,077 | ||
Income (loss) before income taxes | 75,828 | 61,854 | 135,448 | 110,877 | ||
Assets | 6,307,722 | 6,307,722 | 6,205,837 | |||
Investment and Savings Products Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 162,841 | 143,774 | 324,883 | 284,180 | ||
Amortization of deferred policy acquisition costs | 2,080 | 2,310 | 5,521 | 4,044 | ||
Share-based compensation | 325 | 361 | 1,518 | 1,541 | ||
Income (loss) before income taxes | 43,227 | 39,684 | 83,214 | 76,803 | ||
Assets | [1] | 2,512,547 | 2,512,547 | 2,684,717 | ||
Corporate and Other Distributed Products Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 31,996 | 31,021 | 59,568 | 61,727 | ||
Net investment income | 16,784 | 17,395 | 32,713 | 34,986 | ||
Amortization of deferred policy acquisition costs | 510 | 614 | 560 | 596 | ||
Share-based compensation | 773 | 1,261 | 8,908 | 8,049 | ||
Income (loss) before income taxes | (5,290) | $ (5,149) | (21,935) | $ (16,450) | ||
Assets | $ 3,676,372 | $ 3,676,372 | $ 3,570,149 | |||
[1] | The Investment and Savings Products segment includes assets held in separate accounts. Excluding separate accounts, the Investment and Savings Products segment assets were $123.6 million and $112.0 million as of June 30, 2018 and December 31, 2017, respectively. |
Segment and Geographical Info38
Segment and Geographical Information - Summary of Assets and Profit or Loss by Segment (Parenthetical) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Investment and Savings Products Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets, excluding separate account assets | $ 123.6 | $ 112 |
Segment and Geographical Info39
Segment and Geographical Information - Long Lived Assets and Continuing Operations by Country (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Revenues | $ 467,815 | $ 413,696 | $ 927,737 | $ 818,860 | |
Income (loss) before income taxes | 113,765 | 96,389 | 196,727 | 171,230 | |
Long-lived assets | 26,668 | 26,668 | $ 28,099 | ||
United States [Member] | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Revenues | 395,710 | 349,388 | 779,504 | 689,182 | |
Income (loss) before income taxes | 94,100 | 77,511 | 157,314 | 135,543 | |
Long-lived assets | 26,122 | 26,122 | 27,443 | ||
Canada [Member] | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Revenues | 72,105 | 64,308 | 148,233 | 129,678 | |
Income (loss) before income taxes | 19,665 | $ 18,878 | 39,413 | $ 35,687 | |
Long-lived assets | $ 546 | $ 546 | $ 656 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | $ 1,983,956 | [1] | $ 1,877,326 | [2] |
Available-for-sale debt securities gross unrealized gain | 27,452 | [1] | 56,438 | [2] |
Available-for-sale debt securities, gross unrealized loss | (25,518) | [1] | (5,922) | [2] |
Available-for-sale debt securities, at fair value | 1,985,890 | [1] | 1,927,842 | [2] |
Available-for-sale equity securities, cost | 0 | 31,331 | ||
Available-for-sale equity securities, gross unrealized gain | 9,796 | |||
Available-for-sale equity securities, gross unrealized loss | (20) | |||
Available-for-sale equity securities, at fair value | 41,107 | |||
Available-for-sale securities, amortized cost basis | 1,908,657 | |||
Available-for-sale securities, gross unrealized gain | 66,234 | |||
Available-for-sale securities, gross unrealized loss | (5,942) | |||
Available-for-sale securities, fair value | 1,968,949 | |||
U.S. Government and Agencies [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 11,636 | 11,577 | ||
Available-for-sale debt securities gross unrealized gain | 165 | 283 | ||
Available-for-sale debt securities, gross unrealized loss | (87) | (47) | ||
Available-for-sale debt securities, at fair value | 11,714 | 11,813 | ||
Foreign Government [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 148,158 | 139,486 | ||
Available-for-sale debt securities gross unrealized gain | 4,033 | 5,651 | ||
Available-for-sale debt securities, gross unrealized loss | (1,144) | (648) | ||
Available-for-sale debt securities, at fair value | 151,047 | 144,489 | ||
States and Political Subdivisions [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 54,943 | 54,714 | ||
Available-for-sale debt securities gross unrealized gain | 1,076 | 1,554 | ||
Available-for-sale debt securities, gross unrealized loss | (388) | (141) | ||
Available-for-sale debt securities, at fair value | 55,631 | 56,127 | ||
Corporates [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 1,391,181 | 1,337,321 | ||
Available-for-sale debt securities gross unrealized gain | 17,607 | 42,616 | ||
Available-for-sale debt securities, gross unrealized loss | (18,262) | (3,655) | ||
Available-for-sale debt securities, at fair value | 1,390,526 | 1,376,282 | ||
Residential Mortgage-backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 161,338 | 119,672 | ||
Available-for-sale debt securities gross unrealized gain | 2,388 | 3,583 | ||
Available-for-sale debt securities, gross unrealized loss | (2,344) | (297) | ||
Available-for-sale debt securities, at fair value | 161,382 | 122,958 | ||
Commercial Mortgage-backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 136,639 | 134,003 | ||
Available-for-sale debt securities gross unrealized gain | 1,973 | 2,299 | ||
Available-for-sale debt securities, gross unrealized loss | (2,469) | (910) | ||
Available-for-sale debt securities, at fair value | 136,143 | 135,392 | ||
Other Asset-backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale debt securities, amortized cost basis | 80,061 | 80,553 | ||
Available-for-sale debt securities gross unrealized gain | 210 | 452 | ||
Available-for-sale debt securities, gross unrealized loss | (824) | (224) | ||
Available-for-sale debt securities, at fair value | $ 79,447 | $ 80,781 | ||
[1] | Includes $0.2 million of other-than-temporary impairment ("OTTI") losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income (loss). | |||
[2] | Includes $0.2 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income (loss). |
Investments - Schedule of Ava41
Investments - Schedule of Available-for-sale Securities (Parenthetical) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Other-than-temporary impairment losses, investments, portion in other comprehensive income (loss) | $ 0.2 | $ 0.2 |
Investments - Fixed-maturity Se
Investments - Fixed-maturity Securities Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | [2] | |
Available-for-sale Securities, Debt Maturities [Abstract] | ||||
Due in one year or less, amortized cost | $ 167,037 | |||
Due after one year through five years, amortized cost | 861,401 | |||
Due after five years through 10 years, amortized cost | 526,109 | |||
Due after 10 years, amortized cost | 51,371 | |||
Total fixed-maturity securities with single maturity dates, amortized cost | 1,605,918 | |||
Mortgage and asset-backed securities, amortized cost | 378,038 | |||
Available-for-sale debt securities, amortized cost basis | 1,983,956 | [1] | $ 1,877,326 | |
Due in one year or less, fair value | 168,983 | |||
Due after one year through five years, fair value | 864,997 | |||
Due after five years through 10 years, fair value | 520,398 | |||
Due after 10 years, fair value | 54,540 | |||
Total fixed-maturity securities with single maturity dates, fair value | 1,608,918 | |||
Mortgage and asset-backed securities, fair value | 376,972 | |||
Available-for-sale debt securities, at fair value | $ 1,985,890 | [1] | $ 1,927,842 | |
[1] | Includes $0.2 million of other-than-temporary impairment ("OTTI") losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income (loss). | |||
[2] | Includes $0.2 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income (loss). |
Investments - Net Effect on Sto
Investments - Net Effect on Stockholders' Equity of Unrealized Gains and Losses on Available-for-sale Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax [Abstract] | |||
Net unrealized investment gains on available-for-sale securities including OTTI, Available-for-sale securities | $ 1,934 | $ 60,292 | [1] |
OTTI | 172 | 174 | |
Net unrealized investment gains on available-for-sale securities excluding OTTI | 2,106 | 60,466 | |
Less deferred income taxes | (613) | (20,780) | |
Net unrealized investment gains on available-for-sale securities excluding OTTI, net of tax | $ 1,493 | $ 39,686 | |
[1] | Includes $9.8 million of net unrealized gains for equity securities recognized in accumulated other comprehensive income (loss) prior to the adoption of ASU 2016-01. |
Investments - Net Effect on S44
Investments - Net Effect on Stockholders' Equity of Unrealized Gains and Losses on Available-for-sale Securities (Parenthetical) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Prior to adoption of ASU 2016-01 [Member] | |
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |
Net unrealized gains for equity securities recognized in accumulated other comprehensive income (loss) prior to adoption of ASU 2016-01 | $ 9.8 |
Investments - Amortized Costs a
Investments - Amortized Costs and Fair Value of Securities Classified as Trading Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Total trading securities, Amortized cost | $ 23,090 | $ 6,172 | |
Total trading securities, Fair value | 23,079 | 6,228 | |
Fixed-maturity Securities [Member] | |||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Total trading securities, Amortized cost | 23,090 | 4,801 | |
Total trading securities, Fair value | $ 23,079 | 4,800 | |
Equity Securities [Member] | |||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Total trading securities, Amortized cost | [1] | 1,371 | |
Total trading securities, Fair value | [1] | $ 1,428 | |
[1] | Equity securities, previously classified as trading securities, are no longer classified as trading securities due to the adoption of ASU 2016-01. As of June 30, 2018, all equity security investments held by the Company are presented in the balance sheet as equity securities. |
Investments - Held-to-maturity
Investments - Held-to-maturity Security - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Schedule Of Held To Maturity Securities [Line Items] | |
Held-to-maturity debt security estimated unrealized holding loss | $ 5.2 |
LLC Note [Member] | |
Schedule Of Held To Maturity Securities [Line Items] | |
Debt instrument, maturity date | Dec. 31, 2030 |
Debt instrument, interest rate, stated percentage | 4.50% |
Surplus Note [Member] | |
Schedule Of Held To Maturity Securities [Line Items] | |
Debt instrument, maturity date | Dec. 31, 2030 |
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 | Jun. 30, 2018 | Dec. 31, 2017 |
Investments Debt And Equity Securities [Abstract] | ||
Fair values of investments on deposit | $ 10.1 | $ 11.1 |
Investments - Securities Lendin
Investments - Securities Lending Collateral - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
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 | $ 82.1 | $ 89.8 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | |||||
Gross investment income, operating | $ 31,187 | $ 27,134 | $ 60,251 | $ 53,988 | |
Investment expenses | (2,105) | (1,305) | (3,779) | (2,546) | |
Investment income net of investment expenses | 29,082 | 25,829 | 56,472 | 51,442 | |
Interest expense on surplus note | (9,052) | (6,087) | (17,425) | (11,806) | |
Net investment income | 20,030 | 19,742 | 39,047 | 39,636 | |
Equity Securities [Member] | |||||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | |||||
Gross investment income, operating | 466 | 515 | 979 | 1,051 | |
Policy Loans and Other Invested Assets [Member] | |||||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | |||||
Gross investment income, operating | 390 | 316 | 801 | 622 | |
Cash and Cash Equivalents [Member] | |||||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | |||||
Gross investment income, operating | 641 | 246 | 1,227 | 439 | |
Total 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] | 895 | 770 | 788 | 1,801 |
Available-for-Sale [Member] | Fixed-maturity Securities [Member] | |||||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | |||||
Gross investment income, operating | 19,743 | 19,200 | 39,031 | 38,269 | |
Held-to-Maturity [Member] | Fixed-maturity Securities [Member] | |||||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | |||||
Gross investment income, operating | $ 9,052 | $ 6,087 | $ 17,425 | $ 11,806 | |
[1] | Includes $0.4 million and $1.7 million of losses recognized for the change in fair value of the deposit asset underlying the 10% coinsurance agreement for the three and six months ended June 30, 2018, respectively. The change in fair value of the deposit asset underlying the 10% coinsurance agreement for the three and six months ended June 30, 2017 was not material. |
Investments - Net Investment 50
Investments - Net Investment Income (Parenthetical) (Details) - Deposit asset underlying 10% coinsurance agreement [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | ||||
Losses recognized for change in fair value of deposit asset underlying the 10% coinsurance agreement | $ 400,000 | $ 0 | $ 1,700,000 | $ 0 |
Percentage of coinsurance costs | 10.00% | 10.00% | 10.00% | 10.00% |
Investments - Schedule of Net R
Investments - Schedule of Net Realized Investment Gains and Losses Recognized in Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Realized Investment Gains Losses [Abstract] | ||||
Gross gains from sales of available-for-sale securities | $ 404 | $ 770 | $ 786 | $ 1,064 |
Gross losses from sales of available-for-sale securities | (3) | (13) | (21) | (28) |
OTTI losses of available-for-sale securities | (54) | (484) | (103) | (695) |
Net gains (losses) recognized in net income during the period on equity securities | 539 | (1,406) | ||
Gains (losses) from bifurcated options | 427 | (169) | 400 | (103) |
Net realized investment gains (losses), including other-than- temporary impairment losses | $ 1,313 | $ 104 | $ (344) | $ 238 |
Investments - Schedule of Proce
Investments - Schedule of Proceeds from Sales or Other Redemptions of Available-For-Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Proceeds From Sale And Maturity Of Available For Sale Securities [Abstract] | ||||
Proceeds from sales or other redemptions | $ 118,557 | $ 67,721 | $ 240,263 | $ 142,698 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Net Gains (Losses) Recognized in NI on Equity Securities Still Held at Period-End (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Realized Investment Gains Losses [Abstract] | ||
Net gains (losses) recognized on equity securities | $ 539 | $ (1,406) |
Less: Net gains (losses) recognized on equity securities sold | (49) | (49) |
Net gains (losses) recognized in net income on equity securities still held as of period-end | $ 588 | $ (1,357) |
Investments - Available-for-sal
Investments - Available-for-sale Securities with Cost Basis in Excess of Fair Value - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Investments Debt And Equity Securities [Abstract] | ||
Available-for-sale fixed-maturities with cost basis in excess of fair values, cost basis | $ 1,193.2 | $ 529.2 |
Investments - Schedule of Secur
Investments - Schedule of Securities in Unrealized Loss Position (Details) $ in Thousands | Jun. 30, 2018USD ($)Securities | Dec. 31, 2017USD ($)Securities |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | $ 427,430 | |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (3,659) | |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 95,841 | |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (2,283) | |
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 | $ 1,051,010 | 426,354 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (21,355) | (3,643) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 116,719 | 95,671 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (4,163) | (2,279) |
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 | 6,044 | 4,754 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (80) | $ (34) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 5 | 5 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 1,729 | $ 2,975 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (7) | $ (13) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 3 | 3 |
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 | $ 43,032 | $ 40,287 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (578) | $ (465) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 40 | 45 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 25,350 | $ 7,102 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (566) | $ (183) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 31 | 7 |
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 | $ 21,410 | $ 7,369 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (252) | $ (43) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 19 | 7 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 6,229 | $ 6,267 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (136) | $ (98) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 7 | 7 |
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 | $ 730,969 | $ 247,613 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (15,574) | $ (2,323) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 588 | 216 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 51,454 | $ 39,767 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (2,688) | $ (1,332) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 60 | 43 |
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 | $ 97,132 | $ 33,610 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (2,271) | $ (263) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 49 | 16 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 2,332 | $ 2,592 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (73) | $ (34) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 6 | 8 |
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 | $ 100,307 | $ 60,116 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (1,902) | $ (394) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 82 | 52 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 19,084 | $ 22,149 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (567) | $ (516) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 24 | 25 |
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 | $ 52,116 | $ 32,605 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (698) | $ (121) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 53 | 33 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 10,541 | $ 14,819 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (126) | $ (103) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 13 | 19 |
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 | $ 1,076 | |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ (16) | |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | Securities | 4 | |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | $ 170 | |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (4) | |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Securities | 2 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Available-for-sale Fixed-maturity Securities in Default (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Investments Debt And Equity Securities [Abstract] | ||
Available-for-sale fixed-maturity securities in default, amortized cost | $ 10 | $ 503 |
Available-for-sale fixed-maturity securities in default, fair value | $ 201 | $ 654 |
Investments - OTTI in Earnings
Investments - OTTI in Earnings on Available-for-sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
OTTI recognized in earnings | $ 54 | $ 484 | $ 103 | $ 695 | |
Equity Securities [Member] | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
OTTI recognized in earnings | [1] | 25 | 160 | ||
Investments in fixed-maturity securities not in default [Member] | Fixed-maturity Securities [Member] | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
OTTI recognized in earnings | $ 54 | $ 459 | $ 103 | $ 535 | |
[1] | Subsequent to the adoption of ASU 2016-01 all changes in the fair value of equity securities are recognized in net income and thus OTTI no longer applies to equity securities. |
Investments - Schedule of OTTI
Investments - Schedule of OTTI Recognized in Earnings for Available-for-sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Total OTTI losses recognized | $ 54 | $ 484 | $ 103 | $ 695 |
OTTI recognized in earnings | 54 | 484 | 103 | 695 |
Does not intend to sell or more-likely-than-not will not be required to sell [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Total OTTI losses recognized | 54 | 459 | 103 | 535 |
OTTI recognized in earnings | $ 54 | 459 | $ 103 | 535 |
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] | ||||
OTTI recognized in earnings | $ 25 | $ 160 |
Investments - Rollforward of OT
Investments - Rollforward of OTTI Recognized in Net Income, Fixed-maturity Securities Still Held (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other than Temporary Impairment, OTTI Recognized in Earnings [Roll Forward] | ||||
Cumulative OTTI recognized in net income for securities still held, beginning of period | $ 4,298 | $ 5,759 | $ 4,346 | $ 5,774 |
Additions for securities where OTTI have been recognized prior to the beginning of the period | 54 | 459 | 103 | 535 |
Reductions due to sales, maturities, calls, amortization or increases in cash flows expected to be collected over the remaining life of credit impaired securities | (1,058) | (643) | (1,155) | (597) |
Reductions for exchanges of securities previously impaired | (137) | |||
Cumulative OTTI recognized in net income for securities still held, end of period | $ 3,294 | $ 5,575 | $ 3,294 | $ 5,575 |
Investments - Impairment Losses
Investments - Impairment Losses on Held-to-maturity Security - Narrative (Details) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Investments Debt And Equity Securities [Abstract] | |
Cumulative impairment loss held-to-maturity security | $ 0 |
Investments - Derivative - Narr
Investments - Derivative - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Aggregate fair value of embedded conversion options | $ 1.3 | $ 0.9 |
Investments - Loss from Closed
Investments - Loss from Closed Currency Forward Contracts Recorded in Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
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 Instr63
Fair Value of Financial Instruments - Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | $ 1,985,890 | [1] | $ 1,927,842 | [2] |
Equity securities | 39,842 | |||
Available-for-sale equity securities, at fair value | 41,107 | |||
Trading securities | $ 23,079 | 6,228 | ||
Fair value assumptions, percentage of securities assessed by third-party pricing service | 94.00% | |||
Fair Value, Recurring Measurements [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | $ 1,985,890 | 1,927,842 | ||
Equity securities | 39,842 | |||
Available-for-sale equity securities, at fair value | 41,107 | |||
Trading securities | 23,079 | 6,228 | ||
Assets, fair value disclosure | 4,437,818 | 4,548,049 | ||
Liabilities, fair value disclosure | 2,389,007 | 2,572,872 | ||
Fair Value, Recurring Measurements [Member] | U.S. Government and Agencies [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | 11,714 | 11,813 | ||
Fair Value, Recurring Measurements [Member] | Foreign Government [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | 151,047 | 144,489 | ||
Fair Value, Recurring Measurements [Member] | States and Political Subdivisions [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | 55,631 | 56,127 | ||
Fair Value, Recurring Measurements [Member] | Corporates [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | 1,390,526 | 1,376,282 | ||
Fair Value, Recurring Measurements [Member] | Residential Mortgage-backed Securities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | 161,382 | 122,958 | ||
Fair Value, Recurring Measurements [Member] | Commercial Mortgage-backed Securities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | 136,143 | 135,392 | ||
Fair Value, Recurring Measurements [Member] | Other Asset-backed Securities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | 79,447 | 80,781 | ||
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 | 2,389,007 | 2,572,872 | ||
Fair Value, Recurring Measurements [Member] | Separate Accounts Liabilities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Separate accounts liabilities | 2,389,007 | 2,572,872 | ||
Fair Value, Recurring Measurements [Member] | Level 1 [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | 3,130 | 3,240 | ||
Equity securities | 37,350 | |||
Available-for-sale equity securities, at fair value | 39,026 | |||
Trading securities | 1,428 | |||
Assets, fair value disclosure | 40,480 | 43,694 | ||
Fair Value, Recurring Measurements [Member] | Level 1 [Member] | Corporates [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | 3,130 | 3,240 | ||
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | 1,982,438 | 1,924,185 | ||
Equity securities | 2,298 | |||
Available-for-sale equity securities, at fair value | 1,931 | |||
Trading securities | 23,079 | 4,800 | ||
Assets, fair value disclosure | 4,396,822 | 4,503,788 | ||
Liabilities, fair value disclosure | 2,389,007 | 2,572,872 | ||
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | U.S. Government and Agencies [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | 11,714 | 11,813 | ||
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | Foreign Government [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | 151,047 | 144,489 | ||
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | States and Political Subdivisions [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | 55,631 | 56,127 | ||
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | Corporates [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | 1,387,393 | 1,373,039 | ||
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | Residential Mortgage-backed Securities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | 161,063 | 122,544 | ||
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | Commercial Mortgage-backed Securities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | 136,143 | 135,392 | ||
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | Other Asset-backed Securities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | 79,447 | 80,781 | ||
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | Separate Accounts Assets, Fair Value Disclosure [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Separate accounts assets | 2,389,007 | 2,572,872 | ||
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | Separate Accounts Liabilities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Separate accounts liabilities | 2,389,007 | 2,572,872 | ||
Fair Value, Recurring Measurements [Member] | Level 3 [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | 322 | 417 | ||
Equity securities | 194 | |||
Available-for-sale equity securities, at fair value | 150 | |||
Assets, fair value disclosure | 516 | 567 | ||
Fair Value, Recurring Measurements [Member] | Level 3 [Member] | Corporates [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | 3 | 3 | ||
Fair Value, Recurring Measurements [Member] | Level 3 [Member] | Residential Mortgage-backed Securities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total available-for-sale fixed-maturity securities | $ 319 | $ 414 | ||
[1] | Includes $0.2 million of other-than-temporary impairment ("OTTI") losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income (loss). | |||
[2] | Includes $0.2 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income (loss). |
Fair Value of Financial Instr64
Fair Value of Financial Instruments - Rollforward of Level 3 Assets Measured on Recurring Basis (Details) - Fair Value, Recurring Measurements [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||
Level 3 assets, beginning of period | $ 535 | [1] | $ 9,788 | [1] | $ 567 | $ 8,162 | |
Net unrealized gains (losses) included in other comprehensive income | (4) | [1] | 236 | [1] | (13) | 222 | |
Realized gains (losses) and accretion (amortization) recognized in earnings, including OTTI | 27 | [1] | 3 | [1] | 45 | 10 | |
Purchases | 1,250 | [1] | 1,250 | ||||
Settlements | (42) | [1] | (213) | [1] | (83) | (441) | |
Transfers into Level 3 | 4 | [1] | 2,439 | ||||
Transfers out of Level 3 | [2] | (9,207) | [1] | (9,781) | |||
Level 3 assets, end of period | [1] | $ 516 | $ 1,861 | $ 516 | $ 1,861 | ||
[1] | Activities for investments that enter Level 3 in one quarter and exit Level 3 in another quarter within the same fiscal year are not eliminated until year-end when only the full year amounts are presented. | ||||||
[2] | During the three and six months ended June 30, 2017, transfers out of Level 3 assets primarily consisted of newly issued fixed-maturity securities in the previous quarter for which observable inputs, most notably quoted prices, used to derive valuations became readily available. |
Fair Value of Financial Instr65
Fair Value of Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | ||||
Fair value security, level 1 to level 2 transfers, amount | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value security, level 1 to level 3 transfers, amount | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value of Financial Instr66
Fair Value of Financial Instruments - Carrying Values and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale debt securities, at fair value | $ 1,985,890 | [1] | $ 1,927,842 | [2] | |
Fixed-maturity security held to maturity, fair value | 838,637 | 779,472 | |||
Available-for-sale equity securities, at fair value | 41,107 | ||||
Equity securities | 39,842 | ||||
Trading securities | 23,079 | 6,228 | |||
Surplus note | 843,073 | 736,381 | |||
Fixed-maturity security (held-to-maturity) | 843,810 | 737,150 | |||
Reported Value Measurement [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale debt securities, at fair value | 1,985,890 | 1,927,842 | |||
Available-for-sale equity securities, at fair value | 41,107 | ||||
Equity securities | 39,842 | ||||
Trading securities | 23,079 | 6,228 | |||
Reported Value Measurement [Member] | Level 3 [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Policy loans | [3] | 30,954 | 32,816 | ||
Surplus note | [3],[4] | 843,073 | 736,381 | ||
Fixed-maturity security (held-to-maturity) | [3] | 843,810 | 737,150 | ||
Reported Value Measurement [Member] | Level 3 [Member] | Deposits [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Deposit asset underlying 10% coinsurance agreement | [3] | 223,105 | 217,336 | ||
Reported Value Measurement [Member] | Separate Accounts Assets, Fair Value Disclosure [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Separate accounts assets | 2,389,007 | 2,572,872 | |||
Reported Value Measurement [Member] | Senior Notes [Member] | Level 2 [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Notes payable | [4],[5] | 373,474 | 373,288 | ||
Reported Value Measurement [Member] | Separate Accounts Liabilities [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Separate accounts liabilities | 2,389,007 | 2,572,872 | |||
Estimate of Fair Value Measurement [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale debt securities, at fair value | 1,985,890 | 1,927,842 | |||
Available-for-sale equity securities, at fair value | 41,107 | ||||
Equity securities | 39,842 | ||||
Trading securities | 23,079 | 6,228 | |||
Estimate of Fair Value Measurement [Member] | Level 3 [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Fixed-maturity security held to maturity, fair value | [3] | 838,637 | 779,472 | ||
Policy loans | [3] | 30,954 | 32,816 | ||
Surplus note | [3],[4] | 838,459 | 778,050 | ||
Estimate of Fair Value Measurement [Member] | Level 3 [Member] | Deposits [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Deposit asset underlying 10% coinsurance agreement | [3] | 223,105 | 217,336 | ||
Estimate of Fair Value Measurement [Member] | Separate Accounts Assets, Fair Value Disclosure [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Separate accounts assets | 2,389,007 | 2,572,872 | |||
Estimate of Fair Value Measurement [Member] | Senior Notes [Member] | Level 2 [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Notes payable | [4],[5] | 384,401 | 400,628 | ||
Estimate of Fair Value Measurement [Member] | Separate Accounts Liabilities [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Separate accounts liabilities | $ 2,389,007 | $ 2,572,872 | |||
[1] | Includes $0.2 million of other-than-temporary impairment ("OTTI") losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income (loss). | ||||
[2] | Includes $0.2 million of OTTI losses related to corporates and mortgage- and asset-backed securities recognized in accumulated other comprehensive income (loss). | ||||
[3] | Classified as a level 3 fair value measurement. | ||||
[4] | Carrying value amounts shown are net of issuance costs | ||||
[5] | Classified as a level 2 fair value measurement. |
Fair Value of Financial Instr67
Fair Value of Financial Instruments - Carrying Values and Estimated Fair Values of Financial Instruments (Parenthetical) (Details) | Jun. 30, 2018 | Dec. 31, 2017 |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Percentage of coinsurance costs | 10.00% | 10.00% |
Reinsurance - In-force Life Ins
Reinsurance - In-force Life Insurance (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | ||
Direct life insurance in force | $ 776,662,402 | $ 767,001,938 |
Amounts ceded to other companies | (677,001,612) | (668,446,638) |
Net life insurance in force | $ 99,660,790 | $ 98,555,300 |
Percentage of reinsured life insurance in force | 87.00% | 87.00% |
Reinsurance - Reinsurance Recov
Reinsurance - Reinsurance Recoverables and Financial Strength Ratings by Reinsurer (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | $ 4,199,275 | $ 4,205,173 | |
Pecan Re Inc [Member] | External credit rating, not rated [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | [1],[2] | 2,740,406 | 2,725,795 |
SCOR Global Life Reinsurance Companies [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | [3] | 358,777 | 354,458 |
Munich Re of Malta [Member] | External credit rating, not rated [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | [1],[4] | 287,853 | 302,391 |
Swiss Re Life & Health America Inc. [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | [5] | 237,868 | 245,543 |
American Health and Life Insurance Company [Member] | AM Best, B Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | [1] | 171,072 | 172,956 |
Munich American Reassurance Company [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 113,630 | 112,841 | |
Korean Reinsurance Company [Member] | AM Best, A Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 102,602 | 102,915 | |
RGA Reinsurance Company [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 89,156 | 90,037 | |
Hannover Life Reassurance Company [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 31,126 | 32,250 | |
TOA Reinsurance Company [Member] | AM Best, A Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 24,446 | 24,619 | |
All Other Reinsurers [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | $ 42,339 | $ 41,368 | |
[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 recoverables 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] | This entity is rated AA- by S&P. | ||
[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) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reinsurance Disclosures [Abstract] | ||||
Benefits and claims ceded to reinsurers | $ 312.9 | $ 334.3 | $ 653.2 | $ 677.2 |
Policy Claims and Other Benef71
Policy Claims and Other Benefits Payable - Schedule of Liability For Policy Claims and Other Benefits Payable (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | ||
Roll Forward In Liability For Unpaid Claims And Claims Adjustment Expense [Abstract] | |||
Policy claims and other benefits payable, beginning of period | $ 307,401 | $ 268,136 | |
Reinsured policy claims and other benefits payable, beginning of period | 322,137 | 323,195 | |
Net balance, beginning of period | (14,736) | (55,059) | |
Incurred related to current year | 90,659 | 82,358 | |
Incurred related to prior years | [1] | (2,233) | 2,033 |
Total incurred | 88,426 | 84,391 | |
Claims paid related to current year, net of reinsured policy claims received | (152,561) | (122,097) | |
Reinsured policy claims received related to prior years, net of claims paid | 24,575 | 57,146 | |
Total paid | (127,986) | (64,951) | |
Foreign currency translation | (267) | 154 | |
Net balance, end of period | (54,563) | (35,465) | |
Reinsured policy claims and other benefits payable, end of period | 341,453 | 303,095 | |
Policy claims and other benefits payable, end of period | $ 286,890 | $ 267,630 | |
[1] | Includes the difference between our estimate of claims incurred but not yet reported as of period end and the actual incurred claims reported after period end. |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of Number of Shares of Common Stock (Details) - shares | 5 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Stockholders Equity Note [Abstract] | |||
Common stock, beginning of period | 44,251,000 | 45,721,000 | |
Shares issued for stock options exercised | 38,000 | ||
Shares of common stock issued upon lapse of restricted stock units ("RSUs") | 329,000 | 341,000 | |
Common stock retired | (1,358,480) | (1,412,000) | (1,065,000) |
Common stock, end of period | 43,168,000 | 43,168,000 | 45,035,000 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | 5 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Feb. 06, 2018 | |
Class Of Stock [Line Items] | ||||
Stock repurchased program, authorized amount | $ 275,000,000 | |||
Stock repurchased and retired during period, shares | 1,358,480 | 1,412,000 | 1,065,000 | |
Stock repurchased and retired during period, value | $ 133,700,000 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 141,300,000 | $ 141,300,000 | ||
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 | 717,358 | 717,358 | ||
Performance share units (PSUs) [Member] | ||||
Class Of Stock [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number | 85,010 | 85,010 |
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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 86,700 | $ 63,107 | $ 152,414 | $ 115,176 |
Income attributable to unvested participating securities, basic EPS | (483) | (430) | (917) | (859) |
Net income used in calculating basic EPS | $ 86,217 | $ 62,677 | $ 151,497 | $ 114,317 |
Weighted-average vested shares | 44,066 | 45,984 | 44,401 | 46,142 |
Basic EPS | $ 1.96 | $ 1.36 | $ 3.41 | $ 2.48 |
Income attributable to unvested participating securities, diluted EPS | $ (482) | $ (430) | $ (915) | $ (857) |
Net income used in calculating diluted EPS | $ 86,218 | $ 62,677 | $ 151,499 | $ 114,319 |
Dilutive effect of incremental shares to be issued for contingently-issuable shares | 141 | 87 | 128 | 80 |
Weighted-average shares used in calculating diluted EPS | 44,207 | 46,071 | 44,529 | 46,222 |
Diluted EPS | $ 1.95 | $ 1.36 | $ 3.40 | $ 2.47 |
Share-Based Transactions - Narr
Share-Based Transactions - Narrative (Details) - $ / shares | Feb. 26, 2018 | Jun. 30, 2018 |
Equity award granted with sales restrictions [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, sale restrictions expiration period | 3 years | |
Restricted stock units (RSUs) [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares awarded | 94,758 | |
Measurement date fair value | $ 100.55 | |
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | |
Performance share units (PSUs) [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares awarded | 30,579 | |
Measurement date fair value | $ 100.55 | |
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 | 45,868 | |
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 |
Share-Based Transactions - Impa
Share-Based Transactions - Impact of Equity Awards Granted (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total equity awards expense recognized | $ 1,891 | $ 1,923 | $ 13,392 | $ 11,667 |
Expense Deferred [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Quarterly incentive awards expense deferred | $ 2,485 | $ 2,668 | $ 4,979 | $ 5,418 |
Commitments and Contingent Li77
Commitments and Contingent Liabilities - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($)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 | $ | $ 326.2 |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Foreign currency translation adjustments: | ||||
Change in unrealized foreign currency translation gains (losses) before income tax expense (benefit) | $ (5,902) | $ 6,753 | $ (14,304) | $ 7,880 |
Income tax expense (benefit) on unrealized foreign currency translation gains (losses) | 74 | 88 | ||
Change in unrealized foreign currency translation gains (losses), net of income taxes | (5,902) | 6,679 | (14,304) | 7,792 |
Unrealized gain (losses) on available-for-sale securities: | ||||
Change in unrealized holding gains (losses) on investment securities | (15,578) | 3,889 | (47,920) | 11,170 |
Change in net unrealized investment gains (losses) not-other-than-temporarily impaired, income tax expense (benefit) | (3,306) | 1,361 | (10,154) | 3,910 |
Change in unrealized holding gains (losses) on available-for-sale securities arising during period, net of income taxes | (12,272) | 2,528 | (37,766) | 7,260 |
Reclassification adjustment for realized investment (gains) losses included in net income | (347) | (273) | (662) | (341) |
Income tax (expense) benefits on (gains) losses reclassified from accumulated OCI to net income | (73) | (96) | (139) | (119) |
Reclassification from accumulated OCI to net income for (gains) losses realized on available-for-sale securities, net of income taxes | (274) | (177) | (523) | (222) |
Change in unrealized gains (losses) on available-for-sale securities, net of income taxes and reclassification adjustment | $ (12,546) | $ 2,351 | $ (38,289) | $ 7,038 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 200,000,000 |
Debt instrument maturity date | Dec. 19, 2022 |
Debt instrument, frequency of commitment fee payable | quarterly |
Debt instrument, current borrowing capacity | $ 0 |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 1,300,000,000 |
Maximum [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, commitment fee percentage | 0.225% |
Maximum [Member] | LIBOR Rate [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate margin | 1.625% |
Maximum [Member] | Base Rate [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate margin | 0.625% |
Minimum [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, commitment fee percentage | 0.125% |
Minimum [Member] | LIBOR Rate [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate margin | 1.125% |
Minimum [Member] | Base Rate [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate margin | 0.125% |
Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 375,000,000 |
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 | $ 843,800,000 |
Debt instrument, interest rate, stated percentage | 4.50% |
Debt instrument maturity date | Dec. 31, 2030 |
Revenue from Contracts with C80
Revenue from Contracts with Customers - Summary of Disaggregation of Revenues from Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Term Life Insurance Segment Revenues [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Commissions and fees | $ 272,978 | $ 238,901 | $ 543,286 | $ 472,953 | |
Term Life Insurance Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Commissions and fees | 10,913 | 10,244 | 21,328 | 19,690 | |
Term Life Insurance Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member] | Other, Net [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Commissions and fees | 10,913 | 10,244 | 21,328 | 19,690 | |
Term Life Insurance Segment Revenues [Member] | Revenues from Sources Other Than Contracts with Customers (Segregated Funds) [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Commissions and fees | 262,065 | 228,657 | 521,958 | 453,263 | |
Investment and Savings Products Segment Revenues [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Commissions and fees | 162,841 | 143,774 | 324,883 | 284,180 | |
Investment and Savings Products Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Commissions and fees | 153,399 | 129,416 | 300,332 | 255,812 | |
Investment and Savings Products Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member] | Other, Net [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Commissions and fees | 2,424 | 2,376 | 4,760 | 4,575 | |
Investment and Savings Products Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member] | Commissions and Fees [Member] | Sales-based Revenues [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Commissions and fees | 64,307 | 60,692 | 128,768 | 121,209 | |
Investment and Savings Products Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member] | Commissions and Fees [Member] | Asset-based Revenues [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Commissions and fees | 66,230 | 53,066 | 125,771 | 103,529 | |
Investment and Savings Products Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member] | Commissions and Fees [Member] | Account-based Revenues [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Commissions and fees | 20,438 | 13,282 | 41,033 | 26,499 | |
Investment and Savings Products Segment Revenues [Member] | Revenues from Sources Other Than Contracts with Customers (Segregated Funds) [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Commissions and fees | 9,442 | 14,358 | 24,551 | 28,368 | |
Corporate and Other Distributed Products Segment Revenues [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Commissions and fees | 31,996 | 31,021 | 59,568 | 61,727 | |
Corporate and Other Distributed Products Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Commissions and fees | 8,976 | 8,449 | 17,243 | 15,803 | |
Corporate and Other Distributed Products Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member] | Other, Net [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Commissions and fees | 1,453 | 1,530 | 2,599 | 2,824 | |
Corporate and Other Distributed Products Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member] | Commissions and Fees [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Commissions and fees | [1] | 7,523 | 6,919 | 14,644 | 12,979 |
Corporate and Other Distributed Products Segment Revenues [Member] | Revenues from Sources Other Than Contracts with Customers (Segregated Funds) [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Commissions and fees | $ 23,020 | $ 22,572 | $ 42,325 | $ 45,924 | |
[1] | Commissions and fees for the three and six months ended June 30, 2018 include $1.3 million and $2.1 million, respectively, attributable to performance obligations satisfied in a previous reporting period and represent the collection of variable consideration in the transaction price that had been previously constrained. |
Revenue from Contracts with C81
Revenue from Contracts with Customers - Summary of Disaggregation of Revenues from Contracts (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Corporate and Other Distributed Products Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member] | Commissions and Fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Performance obligation satisfied and collection of variable consideration in transaction price | $ 1.3 | $ 2.1 |
Revenue from Contracts with C82
Revenue from Contracts with Customers - Summary of Contract Asset Account (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Contract With Customer Asset And Liability [Abstract] | ||
Balance, beginning of period | $ 48,413 | $ 48,533 |
Current period sales, net of collection of renewal commissions | (245) | (365) |
Balance, at the end of period | $ 48,168 | $ 48,168 |
Revenue from Contracts with C83
Revenue from Contracts with Customers - Narrative (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | |
Revenue From Contract With Customer [Abstract] | ||
Estimate adjustments to contract asset | $ 0 | $ 0 |
Impairment losses recognized on contract asset | 0 | 0 |
Assets recognized for incremental costs | $ 0 | $ 0 |