Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Mar. 10, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | NATIONAL WESTERN LIFE GROUP, INC. | |
Entity Central Index Key | 1,635,984 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float | $ 568,168,220 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,436,166 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 200,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments: | ||
Securities held to maturity, at amortized cost (fair value: $7,335,436 and $7,175,443) | $ 7,173,967 | $ 6,841,543 |
Securities available for sale, at fair value (amortized cost: $2,847,414 and $2,590,074) | 2,879,583 | 2,728,680 |
Mortgage loans, net of allowance for possible losses ($650 and $650) | 108,311 | 149,503 |
Policy loans | 61,957 | 63,645 |
Derivatives, index options | 38,409 | 114,287 |
Other long-term investments | 26,787 | 28,774 |
Total investments | 10,289,014 | 9,926,432 |
Cash and cash equivalents | 106,007 | 277,078 |
Deferred policy acquisition costs | 853,451 | 802,919 |
Deferred sales inducements | 159,166 | 159,766 |
Accrued investment income | 99,619 | 96,127 |
Federal income tax receivable | 12,512 | 0 |
Other assets | 92,807 | 89,570 |
Total assets | 11,612,576 | 11,351,892 |
Future policy benefits: | ||
Universal life and annuity contracts | 9,561,358 | 9,384,297 |
Traditional life reserves | 138,000 | 138,225 |
Other policyholder liabilities | 155,261 | 139,222 |
Deferred Federal income tax liability | 49,333 | 31,675 |
Federal income tax payable | 0 | 3,336 |
Other liabilities | 96,638 | 98,817 |
Total liabilities | 10,000,590 | 9,795,572 |
COMMITMENTS AND CONTINGENCIES (Notes 4, 7, and 9) | 0 | 0 |
Common stock: | ||
Additional paid-in capital | 41,716 | 38,116 |
Accumulated other comprehensive income | 329 | 41,786 |
Retained earnings | 1,569,905 | 1,472,782 |
Total stockholders' equity | 1,611,986 | 1,556,320 |
Total liabilities and stockholders' equity | 11,612,576 | 11,351,892 |
Common Class A [Member] | ||
Common stock: | ||
Common stock, value outstanding | 34 | 3,436 |
Common Class B [Member] | ||
Common stock: | ||
Common stock, value outstanding | $ 2 | $ 200 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments: | ||
Securities held to maturity-fair value | $ 7,335,436 | $ 7,175,443 |
Securities available for sale-amortized cost | 2,847,414 | 2,590,074 |
Mortgage loans-allowance for possible losses | $ 650 | $ 650 |
Common Class A [Member] | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, par value | $ 0.01 | $ 1 |
Common Stock, shares authorized | 7,500,000 | 7,500,000 |
Common Stock, shares issued | 3,436,166 | 3,436,166 |
Common Stock, shares outstanding | 3,436,166 | 3,436,166 |
Common Class B [Member] | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, par value | $ 0.01 | $ 1 |
Common Stock, shares authorized | 200,000 | 200,000 |
Common Stock, shares issued | 200,000 | 200,000 |
Common Stock, shares outstanding | 200,000 | 200,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Premiums and other revenue: | |||
Universal life and annuity contract charges | $ 155,608 | $ 150,596 | $ 148,388 |
Traditional life premiums | 19,699 | 19,519 | 19,078 |
Net investment income | 379,114 | 505,430 | 660,432 |
Other revenues | 28,166 | 21,630 | 23,716 |
Net realized investment gains (losses): | |||
Total other-than-temporary impairment (“OTTI”) (losses) recoveries | 2,801 | (18) | 846 |
Portion of OTTI losses recognized in other comprehensive income | (3,053) | (132) | (1,151) |
Net OTTI losses recognized in earnings | (252) | (150) | (305) |
Other net investment gains | 7,461 | 11,755 | 8,958 |
Total net realized investment gains (losses) | 7,209 | 11,605 | 8,653 |
Total revenues | 589,796 | 708,780 | 860,267 |
Benefits and expenses: | |||
Life and other policy benefits | 67,452 | 54,295 | 60,050 |
Amortization of deferred policy acquisition costs | 120,333 | 115,154 | 108,233 |
Universal life and annuity contract interest | 176,901 | 298,259 | 454,594 |
Other operating expenses | 78,442 | 83,551 | 95,693 |
Total benefits and expenses | 443,128 | 551,259 | 718,570 |
Earnings before Federal income taxes | 146,668 | 157,521 | 141,697 |
Federal income taxes | 48,272 | 51,933 | 45,450 |
Net earnings | 98,396 | 105,588 | 96,247 |
Common Class A [Member] | |||
Benefits and expenses: | |||
Net earnings | $ 95,613 | $ 102,602 | $ 93,524 |
Basic Earnings Per Share: | |||
Earnings Per Share, Basic (in dollars per share) | $ 27.83 | $ 29.87 | $ 27.23 |
Diluted Earnings Per Share: | |||
Earnings Per Share, Diluted (in dollars per share) | $ 27.82 | $ 29.85 | $ 27.19 |
Common Class B [Member] | |||
Benefits and expenses: | |||
Net earnings | $ 2,783 | $ 2,986 | $ 2,723 |
Basic Earnings Per Share: | |||
Earnings Per Share, Basic (in dollars per share) | $ 13.91 | $ 14.93 | $ 13.61 |
Diluted Earnings Per Share: | |||
Earnings Per Share, Diluted (in dollars per share) | $ 13.91 | $ 14.93 | $ 13.61 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 98,396 | $ 105,588 | $ 96,247 |
Unrealized gains (losses) on securities: | |||
Net unrealized holding gains (losses) arising during period | (39,797) | 12,536 | (42,218) |
Net unrealized liquidity gains (losses) | 1,022 | 26 | 333 |
Reclassification adjustment for net amounts included in net earnings | (2,085) | (5,000) | (3,061) |
Amortization of net unrealized (gains) losses related to transferred securities | 0 | 0 | 0 |
Net unrealized gains (losses) on securities | (40,860) | 7,562 | (44,946) |
Foreign currency translation adjustments | 140 | (556) | 652 |
Benefit plans: | |||
Amortization of net prior service cost and net gain, net of tax | (737) | (3,300) | 5,588 |
Other comprehensive income (loss) | (41,457) | 3,706 | (38,706) |
Comprehensive income (loss) | $ 56,939 | $ 109,294 | $ 57,541 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated other comprehensive income (loss) [Member] | Unrealized losses on impaired held to maturity securities [Member] | Unrealized losses on impaired available for sale securities [Member] | Foreign currency translation adjustments [Member] | Benefit plan liability adjustment [Member] | Retained Earnings [Member] |
Total stockholders’ equity at Dec. 31, 2012 | $ 3,635 | $ 37,767 | $ 91,972 | $ (1,426) | $ (196) | $ 2,589 | $ (16,153) | $ 1,273,492 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Reclass par value due to reorganization (see Note 10) | 0 | 0 | ||||||||
Shares exercised under stock option plan | 0 | 0 | ||||||||
Change in unrealized gains (losses) during period | $ (42,218) | (45,279) | ||||||||
Amortization | 210 | |||||||||
Other-than-temporary impairments, non-credit, net of tax | 95 | |||||||||
Additional credit loss on previously impaired securities | 54 | |||||||||
Change in shadow deferred policy acquisition costs | (220) | (196) | ||||||||
Recoveries, net of tax | 390 | |||||||||
Change in translation adjustments during period | 652 | 652 | ||||||||
Amortization of net prior service cost and net gain, net of tax | 5,588 | 5,588 | ||||||||
Net earnings | 96,247 | 96,247 | ||||||||
Stockholder dividends | (1,273) | |||||||||
Total stockholders’ equity at Dec. 31, 2013 | 1,447,948 | 3,635 | 37,767 | $ 38,080 | 46,693 | (1,287) | (2) | 3,241 | (10,565) | 1,368,466 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Reclass par value due to reorganization (see Note 10) | 0 | 0 | ||||||||
Shares exercised under stock option plan | 1 | 349 | ||||||||
Change in unrealized gains (losses) during period | 12,536 | 7,536 | ||||||||
Amortization | 84 | |||||||||
Other-than-temporary impairments, non-credit, net of tax | 0 | |||||||||
Additional credit loss on previously impaired securities | 0 | |||||||||
Change in shadow deferred policy acquisition costs | (59) | (1) | ||||||||
Recoveries, net of tax | 2 | |||||||||
Change in translation adjustments during period | (556) | (556) | ||||||||
Amortization of net prior service cost and net gain, net of tax | (3,300) | (3,300) | ||||||||
Net earnings | 105,588 | 105,588 | ||||||||
Stockholder dividends | (1,272) | |||||||||
Total stockholders’ equity at Dec. 31, 2014 | 1,556,320 | 3,636 | 38,116 | 41,786 | 54,229 | (1,262) | (1) | 2,685 | (13,865) | 1,472,782 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Reclass par value due to reorganization (see Note 10) | (3,600) | 3,600 | ||||||||
Shares exercised under stock option plan | 0 | 0 | ||||||||
Change in unrealized gains (losses) during period | (39,797) | (41,882) | ||||||||
Amortization | (29) | |||||||||
Other-than-temporary impairments, non-credit, net of tax | 2,013 | |||||||||
Additional credit loss on previously impaired securities | 0 | |||||||||
Change in shadow deferred policy acquisition costs | (962) | 0 | ||||||||
Recoveries, net of tax | 0 | |||||||||
Change in translation adjustments during period | 140 | 140 | ||||||||
Amortization of net prior service cost and net gain, net of tax | (737) | (737) | ||||||||
Net earnings | 98,396 | 98,396 | ||||||||
Stockholder dividends | (1,273) | |||||||||
Total stockholders’ equity at Dec. 31, 2015 | $ 1,611,986 | $ 36 | $ 41,716 | $ 329 | $ 12,347 | $ (240) | $ (1) | $ 2,825 | $ (14,602) | $ 1,569,905 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net earnings | $ 98,396 | $ 105,588 | $ 96,247 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Universal life and annuity contract interest | 176,901 | 298,259 | 454,594 |
Surrender charges and other policy revenues | (20,493) | (12,913) | (14,622) |
Realized (gains) losses on investments | (7,209) | (11,605) | (8,653) |
Accretion/amortization of discounts and premiums, investments | 525 | (653) | (2,019) |
Depreciation and amortization | 2,987 | 3,421 | 4,674 |
(Increase) decrease in value of derivatives | 61,750 | (68,616) | (225,899) |
(Increase) decrease in deferred policy acquisition and sales inducement costs | 120 | (18,336) | (26,165) |
(Increase) decrease in accrued investment income | (3,492) | (760) | (2,312) |
(Increase) decrease in other assets | (12,929) | (867) | (17,343) |
Increase (decrease) in liabilities for future policy benefits | 12,256 | 7,698 | 9,664 |
(Decrease) increase in other policyholder liabilities | 16,041 | (3,365) | (5,974) |
(Decrease) increase in Federal income tax liability | (15,848) | (6,731) | 15,722 |
Increase (decrease) in deferred Federal income tax | 40,017 | 22,538 | (23,654) |
(Decrease) increase in other liabilities | (2,798) | (394) | (660) |
Other, net | 0 | 0 | (1) |
Net cash provided by operating activities | 346,224 | 313,264 | 253,599 |
Proceeds from sales of: | |||
Securities held to maturity | 0 | 0 | 1,980 |
Securities available for sale | 14,203 | 29,730 | 10,246 |
Other investments | 3,684 | 3,399 | 11,024 |
Proceeds from maturities and redemptions of: | |||
Securities held to maturity | 475,151 | 445,679 | 1,231,796 |
Securities available for sale | 270,044 | 330,127 | 287,858 |
Derivatives, index options | 100,050 | 203,349 | 172,112 |
Purchases of: | |||
Securities held to maturity | (810,384) | (773,743) | (1,775,153) |
Securities available for sale | (529,242) | (410,127) | (256,855) |
Derivatives, index options | (86,927) | (73,318) | (61,624) |
Other investments | (4,250) | (376) | (15) |
Principal payments on mortgage loans | 80,047 | 20,506 | 43,856 |
Cost of mortgage loans acquired | (38,471) | (37,104) | (34,129) |
(Increase) decrease in policy loans | 1,688 | 2,324 | 5,580 |
Net cash used in investing activities | (524,407) | (259,554) | (363,324) |
Cash flows from financing activities: | |||
Dividends on common stock | (1,273) | (1,273) | (1,273) |
Deposits to account balances for universal life and annuity contracts | 918,574 | 985,003 | 982,305 |
Return of account balances on universal life and annuity contracts | (910,403) | (880,658) | (875,661) |
Issuance of common stock under stock option plan | 0 | 350 | 0 |
Net cash provided by (used in) financing activities | 6,898 | 103,422 | 105,371 |
Effect of foreign exchange | 214 | (913) | 652 |
Net increase (decrease) in cash and cash equivalents | (171,071) | 156,219 | (3,702) |
Cash and cash equivalents at beginning of year | 277,078 | 120,859 | 124,561 |
Cash and cash equivalents at end of year | 106,007 | 277,078 | 120,859 |
Cash paid during the period for: | |||
Interest | 30 | 40 | 50 |
Income taxes | 24,127 | 36,123 | 57,350 |
Noncash operating activities: | |||
Deferral of sales inducements | $ (10,854) | $ (8,003) | $ (803) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (A) Principles of Consolidation. On October 1, 2015, National Western Life Insurance Company ("National Western") completed its previously announced holding company reorganization pursuant to the Agreement and Plan of Merger, dated April 6, 2015, which was approved by the shareholders of National Western at its Annual Meeting of Shareholders held on June 19, 2015. As a result of the reorganization, National Western became a wholly owned subsidiary of National Western Life Group, Inc. ("NWLGI"), a Delaware Corporation, and NWLGI replaced National Western as the publicly held company. Consequently, all filings with the Securities and Exchange Corporation ("SEC") from October 2, 2015 and forward will be filed by NWLGI under CIK No. 0001635984. Prior to the reorganization, the accompanying consolidated financial statements included the accounts of National Western and its wholly owned subsidiaries: The Westcap Corporation, Regent Care San Marcos Holdings, LLC, NWL Investments, Inc., NWL Services, Inc., NWLSM, Inc., and NWL Financial, Inc. During the fourth quarter of 2015, subsequent to the reorganization, National Western transferred ownership of Regent Care San Marcos Holdings, LLC, NWL Investments, Inc., and NWL Services, Inc. to NWLGI via a dividend transaction resulting in those entities becoming wholly owned subsidiaries of NWLGI. For purposes of filing this Form 10-K for the years ended December 31, 2015, 2014, and 2013, the accompanying consolidated financial statements and notes thereto have been titled "National Western Life Group, Inc." to reflect the current name of the public registrant with the parenthetical notation "formerly National Western Life Insurance Company and Subsidiaries" to reflect the reporting entity for the previous periods covered herein. All significant intercorporate transactions and accounts have been eliminated in consolidation and references to the "Company" as contained herein refer to the consolidated entity. (B) Basis of Presentation. The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates in the accompanying consolidated financial statements include (1) liabilities for future policy benefits, (2) valuation of derivative instruments, (3) recoverability and amortization of deferred policy acquisition costs, (4) commitments and contingencies, (5) valuation allowances for deferred tax assets, (6) other-than-temporary impairment losses on debt securities, and (7) valuation allowances for mortgage loans and real estate. The table below shows the unrealized gains and losses on available-for-sale securities that were reclassified out of accumulated other comprehensive income for the years ended December 31, 2015 , 2014 and 2013 . Affected Line Item In the Consolidated Statements of Earnings Amount Reclassified from Accumulated Other Comprehensive Income Years Ended December 31, 2015 2014 2013 Other net investment gains (losses) $ 3,459 7,843 4,923 Net OTTI losses recognized in earnings (252 ) (150 ) (213 ) Earnings before Federal income taxes 3,207 7,693 4,710 Federal income taxes 1,122 2,693 1,649 Net earnings $ 2,085 5,000 3,061 The Company (National Western) also files financial statements with insurance regulatory authorities which are prepared on the basis of statutory accounting practices prescribed or permitted by the Colorado Division of Insurance which are significantly different from consolidated financial statements prepared in accordance with GAAP. These differences are described in detail in the statutory information section of this note. Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year presentation. (C) Investments. Investments in debt securities the Company purchases with the intent to hold to maturity are classified as securities held to maturity. The Company has the ability to hold the securities until maturity, as it would be unlikely that forced sales of securities would be required, prior to maturity, to cover payments of liabilities. As a result, securities held to maturity are carried at amortized cost less declines in fair value that are deemed other-than-temporary. Investments in debt and equity securities that are not classified as securities held to maturity are reported as securities available for sale. Securities available for sale are reported in the accompanying consolidated financial statements at fair value. Valuation changes resulting from changes in the fair value of the securities are reflected as a component of stockholders' equity in accumulated other comprehensive income (loss). These unrealized gains or losses in stockholders' equity are reported net of taxes and adjustments to deferred policy acquisition costs. Transfers of securities between categories are recorded at fair value at the date of transfer. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to yield using the effective interest method. For mortgage-backed and asset-backed securities, the effective interest method is used based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The net investment in the securities is adjusted to the amount that would have existed had the new effective yield been applied at the time of acquisition. This adjustment is reflected in net investment income. Quarterly the Company reviews its investment portfolio for market value changes to identify changes caused by issuer credit deterioration, changes in market interest rates and changes in economic conditions. If this review indicates a decline in fair value that is other-than-temporary, the Company’s carrying amount in the investment is reduced to its estimated fair value. In accordance with GAAP guidance the estimated credit versus non-credit components are bifurcated. The credit component is taken through earnings. The non-credit component is reclassified as unrealized loss in other comprehensive income. The Company would not recognize impairment of securities due to changing of interest rates or market dislocations unless the Company had the intent to sell the securities prior to recovery or maturity. The Company considers a number of factors in determining whether the impairment is other-than-temporary. These include, but are not limited to: 1) actions taken by rating agencies, 2) default by the issuer, 3) the significance of the decline in fair value, 4) the intent and ability to hold the investment until recovery, 5) the time period during which the decline has occurred, 6) an economic analysis of the issuer’s industry, and 7) the financial strength, liquidity, and recoverability of the issuer. Management performs a security-by-security review each quarter in evaluating the need for any other-than-temporary impairments. Although no set formula is used in this process, the investment performance, collateral position, and continued viability of the issuer are significant measures considered. Realized gains and losses for securities available for sale and securities held to maturity are included in earnings and are derived using the specific identification method for determining the cost of securities sold or called. Decline in the fair value below cost that is deemed other-than-temporary is bifurcated in credit and non-credit declines. The noncredit related declines are reclassified as unrealized losses in accumulated other comprehensive income (loss). Credit losses are recorded in earnings and result in the establishment of a new cost basis for the security. The new discount or reduced premium amount is amortized over the remaining life of the impaired debt security prospectively based on the amount and timing of future estimated cash flows. Mortgage loans and other long-term investments are stated at cost, less unamortized discounts, deferred fees, and allowances for possible losses. Policy loans are stated at their aggregate unpaid balances. Real estate is stated at the lower of cost or fair value less estimated costs to sell. Impaired loans are those loans where it is probable that all amounts due according to contractual terms of the loan agreement will not be collected. The Company has identified these loans through its normal loan review procedures. Impaired loans include: 1) nonaccrual loans, 2) loans which are 90 days or more past due, unless they are well secured and are in the process of collection, and 3) other loans which management believes are impaired. Impaired loans are measured based on: 1) the present value of expected future cash flows discounted at the loan's effective interest rate, 2) the loan's observable market price, or 3) the fair value of the collateral if the loan is collateral dependent. Substantially all of the Company's impaired loans are measured at the fair value of the collateral. In limited cases, the Company may use other methods to determine the level of impairment of a loan if such loan is not collateral dependent. While the Company closely manages its investment portfolio, future changes in issuer facts and circumstances can result in impairments beyond those currently identified. (D) Cash and Cash Equivalents. For purposes of the consolidated statements of cash flows, the Company considers all short-term investments with a maturity at the date of purchase of three months or less to be cash equivalents. (E) Derivatives. Fixed-index products combine features associated with traditional fixed annuities and universal life contracts, with the option to have interest rates linked in part to an underlying equity index. The equity return component of such policy contracts is identified separately and accounted for in future policy benefits as embedded derivatives on the consolidated balance sheet. The remaining portions of these policy contracts are considered the host contracts and are recorded separately as fixed annuity or universal life contracts. The host contracts are accounted for under debt instrument type accounting. The host contracts are recorded as discounted debt instruments that are accreted, using the effective yield method, to their minimum account values at their projected maturities or termination dates. The Company purchases over-the-counter index options, which are derivative financial instruments, to hedge the equity return component of its index annuity and life products. The amounts which may be credited to policyholders are linked, in part, to the returns of the underlying index. The index options act as hedges to match closely the returns on the underlying index. Cash is exchanged upon purchase of the index options and no principal or interest payments are made by either party during the option periods. Upon maturity or expiration of the options, cash is paid to the Company based on the underlying index performance and terms of the contract. As a result, amounts credited to policyholders' account balances are substantially offset by changes in the value of the options. The Company does not elect hedge accounting relative to derivative instruments. The derivatives are reported at fair value in the accompanying consolidated financial statements. Changes in the values of the index options and changes in the policyholder liabilities are both reflected in the consolidated statement of earnings. Any gains or losses from the sale or expiration of the options, as well as period-to-period changes in values, are reflected as net investment income in the consolidated statement of earnings. Any changes relative to the embedded derivatives associated with policy contracts are reflected in contract interest in the consolidated statement of earnings. Although there is credit risk in the event of nonperformance by counterparties to the index options, the Company does not expect any counterparties to fail to meet their obligations, given their high credit ratings. In addition, credit support agreements are in place with all counterparties for option holdings in excess of specific limits, which may further reduce the Company's credit exposure. At December 31, 2015 and 2014 , the fair values of index options owned by the Company totaled $38.4 million and $114.3 million , respectively. (F) Insurance Revenues and Expenses. Premiums on traditional life insurance products are recognized as revenues as they become due from policyholders. Benefits and expenses are matched with premiums in arriving at profits by providing for policy benefits over the lives of the policies and by amortizing acquisition costs over the premium-paying periods of the policies. For universal life and annuity contracts, revenues consist of policy charges for the cost of insurance, policy administration, and surrender charges assessed during the period. Expenses for these policies include interest credited to policy account balances, benefit claims incurred in excess of policy account balances and amortization of deferred policy acquisition costs and deferred sales inducements. Under GAAP, commissions, sales inducements, and certain expenses related to policy issuance and underwriting, all of which vary with and are related to the production of new business, are deferred. For traditional products, these costs are amortized over the premium-paying period of the related policies in proportion to the ratio of the premium earned to the total premium revenue anticipated, using the same assumptions as to interest, mortality, and withdrawals as were used in calculating the liability for future policy benefits. For universal life and annuity contracts, these costs are amortized in relation to the present value of expected gross profits on these policies. The Company evaluates the recoverability of deferred policy acquisition and sales inducement costs on a quarterly basis. In this evaluation, the Company considers estimated future gross profits or future premiums, as applicable for the type of contract. The Company also considers expected mortality, interest earned and credited rates, persistency, and expenses. In accordance with GAAP guidance, the Company must also write off deferred acquisition costs and unearned revenue liabilities upon internal replacement of certain contracts as well as annuitizations of deferred annuities. A summary of information relative to deferred policy acquisition costs (DPAC) is provided in the table below. Years Ended December 31, 2015 2014 2013 (In thousands) Deferred policy acquisition costs, beginning of year $ 802,919 785,706 705,397 Policy acquisition costs deferred: Agents' commissions 124,498 134,262 127,161 Other 6,894 7,606 6,821 Total costs deferred 131,392 141,868 133,982 Amortization of deferred policy acquisition costs (120,333 ) (115,154 ) (108,233 ) Adjustments for unrealized (gains) losses on investment securities 39,473 (9,501 ) 54,560 Deferred policy acquisition costs, end of year $ 853,451 802,919 785,706 A summary of information relative to deferred sales inducements is provided in the table below. Years Ended December 31, 2015 2014 2013 (In thousands) Deferred sales inducements, beginning of year $ 159,766 169,570 152,844 Sales inducement costs deferred 17,704 18,355 26,159 Amortization of sales inducements (28,559 ) (26,357 ) (25,357 ) Adjustments for unrealized (gains) losses on investment securities 10,255 (1,802 ) 15,924 Deferred sales inducements, end of year $ 159,166 159,766 169,570 Amortization of deferred policy acquisition costs increased to $120.3 million in the year ended December 31, 2015 compared to $115.2 million reported in 2014 . Amortization expense in 2015 included two unlocking adjustments. The first unlocking adjustment was for favorable mortality experience on an International Life universal life product which decreased amortization expense by $7.1 million . The second unlocking adjustment unlocked future expense assumptions pertaining to product development override costs (trailer commissions) in the Annuity segment which increased amortization expense by $5.3 million . Amortization expense in 2014 includes an unlocking adjustment to incorporate premium load increases implemented on several international life contracts which decreased DPAC amortization by $1.4 million . There were no DPAC unlocking adjustments in 2013. DPAC true-up adjustments were also recorded in 2015 , 2014 and 2013 relative to renewal trailer commissions, partial surrender rates, mortality rates, credited interest rates and earned rates for the current year’s experience resulting in a $2.8 million , $7.2 million and $15.8 million decrease in amortization expense in 2015, 2014 and 2013, respectively. Similar to deferred policy acquisition costs, amortization of deferred sales inducements include true-up and unlocking adjustments. Deferred sales inducement true-up adjustments were recorded in 2015 , 2014 , and 2013 of $3.9 million , $1.6 million and $0.8 million , respectively, each of which increased contract interest expense. In 2015, the deferred sales inducement balance was unlocked for future expenses assumptions pertaining to product development costs as discussed above. The effect of the prospective unlocking was to decrease the deferred sales inducement balance and increase contract interest expense by $1.8 million . There were no unlocking adjustments during 2014 and 2013. Under GAAP, the liability for future policy benefits on traditional products has been calculated using assumptions as to future mortality (based on the 1965-1970, 1975-1980 and 2001 Select and Ultimate mortality tables), interest ranging from 3.25% to 8% , and withdrawals based on Company experience. For universal life and annuity contracts, the liability for future policy benefits represents the account balance. Fixed-index products combine features associated with traditional fixed annuities and universal life contracts, with the option to have interest rates linked in part to an equity index. In accordance with GAAP guidance , the equity return component of such policy contracts must be identified separately and accounted for as embedded derivatives. The remaining portions of these policy contracts are considered the host contracts and are recorded separately as fixed annuity or universal life contracts. The host contracts are accounted for under GAAP guidance provisions that require debt instrument type accounting. The host contracts are recorded as discounted debt instruments that are accreted, using the effective yield method, to their minimum account values at their projected maturities or termination dates. The embedded derivatives are recorded at fair value. (G) Deferred Federal Income Taxes. Federal income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance for deferred tax assets is provided if all or some portion of the deferred tax asset may not be realized. An increase or decrease in a valuation allowance that results from a change in circumstances that affects the realizability of the related deferred tax asset is included in income in the period the change occurs. (H) Depreciation of Property, Equipment, and Leasehold Improvements. Depreciation is based on the estimated useful lives of the assets and is calculated on the straight-line and accelerated methods. Leasehold improvements are amortized over the lesser of the economic useful life of the improvement or the term of the lease. (I) Statutory Information. Domiciled in Colorado, National Western prepares its statutory financial statements in accordance with accounting practices prescribed or permitted by the Colorado Division of Insurance. The Colorado Division of Insurance has adopted the provisions of the National Association of Insurance Commissioners' ("NAIC") Statutory Accounting Practices (“SSAP”) as the basis for its statutory accounting practices. The following are major differences between GAAP and accounting practices prescribed or permitted by the Colorado Division of Insurance (“statutory accounting practices”). 1. The Company accounts for universal life and annuity contracts based on the provisions of GAAP guidance. The basic difference between GAAP guidance and statutory accounting practices with respect to certain long-duration contracts is that deposits for universal life and annuity contracts are not reflected as revenues, and surrenders and certain other benefit payments are not reflected as expenses. Only contracts with no insurance risk qualify for such treatment under statutory accounting practices. For all other contracts, statutory accounting practices do reflect such items as revenues and expenses. A summary of direct premiums and deposits collected is provided below. Years Ended December 31, 2015 2014 2013 (In thousands) Annuity deposits $ 775,010 833,273 813,868 Universal life insurance deposits 277,229 280,980 296,286 Traditional life and other premiums 23,162 22,651 22,164 Totals $ 1,075,401 1,136,904 1,132,318 2. Statutory accounting practices require commissions and related acquisition costs to be expensed as incurred, whereas under GAAP these items are deferred and amortized. 3. For statutory accounting purposes, liabilities for future policy benefits for life insurance policies are calculated by the net level premium method or the commissioners reserve valuation method. Future policy benefit liabilities for annuities are calculated based on the continuous commissioners annuity reserve valuation method and provisions of Actuarial Guidelines 33 and 35. 4. Deferred Federal income taxes are provided for temporary differences which are recognized in the consolidated financial statements in a different period than for Federal income tax purposes. Deferred taxes are also recognized in statutory accounting practices; however, there are limitations as to the amount of deferred tax assets that may be reported as admitted assets. The change in the deferred taxes is recorded in surplus, rather than as a component of income tax expense. 5. For statutory accounting purposes, debt securities are recorded at amortized cost, except for securities in or near default, which are reported at fair value. Under GAAP, debt securities are carried at amortized cost or fair value based on their classification as either held to maturity or available for sale. 6. Investments in subsidiaries are recorded as affiliated common stock investments at their respective SSAP investment value under statutory accounting, whereas the financial statements of the subsidiaries have been consolidated with those of the Company under GAAP. 7. Compensation costs related to the Company’s share based compensation plans are recognized in income based on intrinsic value at each reporting date under statutory accounting, whereas under GAAP these costs are determined using the fair value method. 8. The asset valuation reserve and interest maintenance reserve, which are investment valuation reserves prescribed by statutory accounting practices, have been eliminated, as they are not required under GAAP. 9. The table below provides the Company’s net gain from operations, net income, unassigned surplus (retained earnings) and capital and surplus (stockholders' equity), on the statutory basis used to report to regulatory authorities for the years ended December 31. 2015 2014 2013 (In thousands) Net gain from operations before Federal and foreign income taxes $ 8,139 95,892 170,796 Net income $ 7,060 77,220 106,159 Unassigned surplus $ 1,127,140 1,141,579 1,082,519 Capital and surplus $ 1,171,203 1,185,643 1,126,232 (J) Stock Compensation. The Company accounts for its share-based compensation for GAAP reporting using liability accounting, and measures compensation cost using the fair value method at each reporting date. For stock options, fair value is determined using an option pricing model that takes into account various information and assumptions including the Company's stock price, volatility, option price, vesting dates, exercise dates and projected option lapses. Under the intrinsic value based method, compensation cost is the excess, if any, of the quoted market price of the stock at grant date or other measurement date over the amount an employee must pay to acquire the stock. (K) Accounting Standards and Changes in Accounting In June 2014, the FASB issued guidance that applies to all reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. It requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition and follows existing accounting guidance for the treatment of performance conditions. The standard will be effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, with early adoption permitted. The Company’s current employee share-based plans do not require performance targets and the adoption of this guidance has no impact on the Company’s financial position or results of operations. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC did not, or are not believed by management to, have a material impact on the Company’s present or future consolidated financial statements. |
Deposits with Regulatory Author
Deposits with Regulatory Authorities | 12 Months Ended |
Dec. 31, 2015 | |
Deposits with Regulatory Authorities [Abstract] | |
Deposits With Regulatory Authorities | DEPOSITS WITH REGULATORY AUTHORITIES The following assets were on deposit with state and other regulatory authorities as required by law, at the end of each year. December 31, 2015 2014 (In thousands) Debt securities held to maturity $ 15,281 15,279 Debt securities available for sale 810 814 Short-term investments 475 475 Totals $ 16,566 16,568 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS (A) Investment Income The major components of net investment income are as follows: Years Ended December 31, 2015 2014 2013 (In thousands) Gross investment income: Debt and equity securities $ 416,633 410,809 410,790 Mortgage loans 10,274 9,847 9,256 Policy loans 3,938 4,252 4,503 Derivative gains (losses) (61,750 ) 68,616 225,899 Money market investments 197 401 252 Other investment income 10,939 12,591 10,759 Total investment income 380,231 506,516 661,459 Investment expenses 1,117 1,086 1,027 Net investment income $ 379,114 505,430 660,432 (B) Mortgage Loans and Real Estate A financing receivable is a contractual right to receive money on demand or on fixed or determinable dates that is recognized as an asset in a company’s statement of financial position. The Company’s mortgage, participation and mezzanine loans on real estate are the only financing receivables included in the consolidated balance sheets. In general, the Company originates loans on high quality, income-producing properties such as shopping centers, freestanding retail stores, office buildings, industrial and sales or service facilities, selected apartment buildings, motels, and health care facilities. The location of these properties is typically in major metropolitan areas that offer a potential for property value appreciation. Credit and default risk is minimized through strict underwriting guidelines and diversification of underlying property types and geographic locations. In addition to being secured by the property, mortgage loans with leases on the underlying property are often guaranteed by the lease payments and also by the borrower. This approach has proven to result in quality mortgage loans with few defaults. Mortgage loan interest income is recognized on an accrual basis with any premium or discount amortized over the life of the loan. Prepayment and late fees are recorded on the date of collection. The Company requires a minimum specified yield on mortgage loan investments. The historically low interest rate environment of the past couple of years has resulted in fewer loan opportunities being available meeting the Company's required rate of return. Consequently, new mortgage loan origination activity has been less significant in this time frame with $38.5 million and $37.1 million in total loan originations for the years 2015 and 2014 , respectively. Loans in foreclosure, loans considered impaired or loans past due 90 days or more are placed on a non-accrual status. If a mortgage loan is determined to be on non-accrual status, the mortgage loan does not accrue any revenue into the consolidated statements of earnings. The loan is independently monitored and evaluated as to potential impairment or foreclosure. If delinquent payments are made and the loan is brought current, then the Company returns the loan to active status and accrues income accordingly. The Company has no loans past due 90 days which are accruing interest. The Company's direct investments in real estate are not a significant portion of its total investment portfolio as most of these investments were acquired through mortgage loan foreclosures. The Company also participates in several real estate joint ventures and limited partnerships that invest primarily in income-producing retail properties. These investments have generally served to enhance the Company's overall investment portfolio returns. The Company held net investments in mortgage loans totaling $108.3 million and $149.5 million at December 31, 2015 and 2014 , respectively. The diversification of the portfolio by geographic region, property type, and loan-to-value ratio was as follows: December 31, 2015 December 31, 2014 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Geographic Region: West South Central $ 58,002 53.2 $ 97,918 65.2 East North Central 18,477 17.0 10,714 7.1 New England 11,830 10.9 12,155 8.1 Pacific 10,101 9.3 10,282 6.9 East South Central 5,818 5.3 14,137 9.4 South Atlantic 3,047 2.8 — — Mountain 1,686 1.5 3,050 2.0 Middle Atlantic — — 1,897 1.3 Gross balance 108,961 100.0 150,153 100.0 Allowance for possible losses (650 ) (0.6 ) (650 ) (0.4 ) Totals $ 108,311 99.4 $ 149,503 99.6 December 31, 2015 December 31, 2014 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Property Type: Retail $ 66,237 60.8 $ 130,544 86.9 Office 22,941 21.0 893 0.6 Land/Lots 4,445 4.1 3,333 2.2 Hotel/Motel 1,513 1.4 1,600 1.1 Apartments — — 7,333 4.9 All other 13,825 12.7 6,450 4.3 Gross balance 108,961 100.0 150,153 100.0 Allowance for possible losses (650 ) (0.6 ) (650 ) (0.4 ) Totals $ 108,311 99.4 $ 149,503 99.6 December 31, 2015 December 31, 2014 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Loan-to-Value Ratio (1): Less than 50% $ 64,986 59.7 $ 52,564 35.0 50% to 60% 9,714 8.9 50,553 33.7 60% to 70% 10,134 9.3 14,567 9.7 70% to 80% 4,843 4.4 12,656 8.4 80% to 90% 19,284 17.7 5,399 3.6 Greater than 90% — — 14,414 9.6 Gross balance 108,961 100.0 150,153 100.0 Allowance for possible losses (650 ) (0.6 ) (650 ) (0.4 ) Totals $ 108,311 99.4 $ 149,503 99.6 (1) Loan-to-Value Ratio using the most recent appraised value. Appraisals are required at the time of funding and may be updated if a material change occurs from the original loan agreement. The greater than 90% category is related to loans made with a long standing borrower which are backed by the investment property, contracted leases and the guarantee of the borrower. All mortgage loans are analyzed quarterly in order to monitor the financial quality of these assets. Based on ongoing monitoring, mortgage loans with a likelihood of becoming delinquent are identified and placed on an internal “watch list”. Among the criteria that would indicate a potential problem are: major tenant vacancies or bankruptcies, late payments, and loan relief/restructuring requests. The mortgage loan portfolio is analyzed for the need for a valuation allowance on any loan that is on the internal watch list, in the process of foreclosure or that currently has a valuation allowance. Mortgage loans are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. When it is determined that a loan is impaired, a loss is recognized for the difference between the carrying amount of the mortgage loan and the estimated value reduced by the cost to sell. Estimated value is typically based on the loan’s observable market price or the fair value of the collateral less cost to sell. Impairments and changes in the valuation allowance are reported in net realized capital gains (losses) in the consolidated statements of earnings. The Company recognized valuation losses of $0.0 million , $0.0 million and $0.0 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The mortgage loan valuation write-down represents a general valuation allowance established for the Company's mortgage loan portfolio based upon the Company's loss experience over the past ten years and is not specifically identified to individual loans. Impairments are based on information which indicated that the Company may not collect all amounts in accordance with the mortgage agreement. While the Company closely monitors its mortgage loan portfolio, future changes in economic conditions can result in impairments beyond those currently identified. The following table represents the mortgage loan allowance for the years ended December 31, 2015 and 2014 : 2015 2014 (In thousands) Balance, beginning of period $ 650 650 Provision — — Releases — — Balance, end of period $ 650 650 The Company does not recognize interest income on loans past due 90 days or more. The Company had no mortgage loan past due six months or more at December 31, 2015 , 2014 and 2013 . There was no interest income not recognized in 2015 , 2014 and 2013 . The contractual maturities of mortgage loan principal balances at December 31, 2015 and 2014 were as follows: December 31, 2015 December 31, 2014 Amount % Amount % (In thousands) (In thousands) Principal Balance by Contractual Maturity: Due in one year or less $ 7,950 7.3 $ 16,390 10.9 Due after one year through five years 24,236 22.1 83,965 55.7 Due after five years through ten years 50,431 46.1 30,591 20.3 Due after ten years through fifteen years 7,500 6.9 — — Due after fifteen years 19,284 17.6 19,813 13.1 Totals $ 109,401 100.0 $ 150,759 100.0 The Company's real estate investments totaled approximately $16.3 million at December 31, 2015 and $16.7 million at December 31, 2014 , and consist primarily of income-producing properties which are being operated by a wholly-owned subsidiary of National Western. The Company’s real estate holdings are reflected in other long-term investments in the accompanying consolidated financial statements. The Company records real estate at the lower of cost or fair value less estimated cost to sell, which is determined on an individual asset basis. The Company recognized operating income on these properties of approximately $1.8 million , $1.7 million and $1.7 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company had real estate investments that were non-income producing for the preceding twelve months totaling $0.9 million , $0.9 million and $1.3 million at December 31, 2015 , 2014 and 2013 , respectively. The Company monitors the conditions and market values of these properties on a regular basis and makes repairs and capital improvements to keep the properties in good condition. The Company recorded net realized investment gains on disposals of $0.0 million , $1.0 million and $0.3 million associated with these properties in the years ended December 31, 2015 , 2014 and 2013 , respectively. The realized gains in 2014 were due to several properties being sold: one was an impaired and foreclosed property located in Steubenville, Ohio, another property was located in Houston, Texas, and two were located in Freeport, Texas. (C) Debt and Equity Securities The table below presents amortized costs and fair values of securities held to maturity at December 31, 2015 . Securities Held to Maturity Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: U.S. agencies $ 15,019 275 — 15,294 U.S. Treasury 1,927 317 — 2,244 States and political subdivisions 435,941 29,129 (662 ) 464,408 Public utilities 1,044,063 42,271 (6,621 ) 1,079,713 Corporate 4,160,628 114,920 (72,913 ) 4,202,635 Residential mortgage-backed 1,503,021 59,013 (6,227 ) 1,555,807 Home equity 11,047 1,701 — 12,748 Manufactured housing 2,321 266 — 2,587 Totals $ 7,173,967 247,892 (86,423 ) 7,335,436 The table below presents amortized costs and fair values of securities available for sale at December 31, 2015 . Securities Available for Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: States and political subdivisions $ 586 — (34 ) 552 Foreign governments 9,947 408 — 10,355 Public utilities 129,980 5,354 (775 ) 134,559 Corporate 2,635,536 73,132 (54,503 ) 2,654,165 Residential mortgage-backed 36,463 3,103 — 39,566 Home equity 20,123 825 (12 ) 20,936 Manufactured housing 1,063 26 — 1,089 2,833,698 82,848 (55,324 ) 2,861,222 Equity securities 13,716 4,797 (152 ) 18,361 Totals $ 2,847,414 87,645 (55,476 ) 2,879,583 The table below presents amortized costs and fair values of securities held to maturity at December 31, 2014 . Securities Held to Maturity Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: U.S. agencies $ 10,061 705 — 10,766 U.S. Treasury 1,920 409 — 2,329 States and political subdivisions 432,186 31,417 (336 ) 463,267 Public utilities 978,847 67,836 (757 ) 1,045,926 Corporate 3,754,222 183,650 (18,591 ) 3,919,281 Residential mortgage-backed 1,640,582 68,726 (4,164 ) 1,705,144 Home equity 18,886 4,734 (57 ) 23,563 Manufactured housing 4,839 328 — 5,167 Totals $ 6,841,543 357,805 (23,905 ) 7,175,443 The table below presents amortized costs and fair values of securities available for sale at December 31, 2014 . Securities Available for Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: States and political subdivisions $ 589 — (36 ) 553 Foreign governments 9,939 386 — 10,325 Public utilities 169,179 10,163 (126 ) 179,216 Corporate 2,334,700 128,280 (8,961 ) 2,454,019 Residential mortgage-backed 48,674 4,116 — 52,790 Home equity 11,702 225 (9 ) 11,918 Manufactured housing 2,492 64 — 2,556 2,577,275 143,234 (9,132 ) 2,711,377 Equity securities 12,799 4,849 (345 ) 17,303 Totals $ 2,590,074 148,083 (9,477 ) 2,728,680 The Company's investment policy is to invest in high quality securities with the primary intention of holding these securities until the stated maturity. As such, the portfolio has exposure to interest rate risk, which is the risk that funds are invested today at a market interest rate and in the future interest rates rise causing the current market price on that investment to be lower. This risk is not a significant factor relative to the Company's buy and hold portfolio, since the original intention was to receive the stated interest rate and principal at maturity to match liability requirements to policyholders. Also, the Company takes steps to manage these risks. For example, the Company purchases the type of mortgage-backed securities that have more predictable cash flow patterns. In addition, the Company is exposed to credit risk which is continually monitored. Credit risk is the risk that an issuer of a security will not be able to fulfill their obligations relative to a security payment schedule. The Company reviewed pertinent information for all issuers in an unrealized loss position at December 31, 2015 including market pricing history, credit ratings, analyst reports, as well as data provided by the issuers themselves. The Company then made a determination on each specific issuer relating to other-than-temporary impairment. For the securities that have not been impaired at December 31, 2015 , the Company intends to hold these securities until recovery in fair value and expects to receive all amounts due relative to principal and interest. The Company held below investment grade debt securities totaling $160.8 million and $147.1 million at December 31, 2015 and 2014 , respectively. These amounts represent 1.6% and 1.5% of total invested assets for December 31, 2015 and 2014 , respectively. Below investment grade holdings are the result of downgrades subsequent to purchase, as the Company only invests in high quality securities with ratings quoted as investment grade. Below investment grade securities generally have greater default risk than higher rated corporate debt. The issuers of these securities are usually more sensitive to adverse industry or economic conditions than are investment grade issuers. For the year ended December 31, 2015 , the Company recorded net realized gains totaling $7.2 million related to the disposition of investment securities. The net realized gains included $0.3 million of losses for other-than-temporary impairment write-downs on investments in equity securities. For the years ended December 2014 and 2013 , the Company recorded net realized gains totaling $11.6 million and $8.7 million , respectively, related to disposition of securities. The following table shows the gross unrealized losses and fair values of the Company's held to maturity investments by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2015 . Held to Maturity Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Debt securities: State and political subdivisions $ 16,763 (387 ) 8,723 (275 ) 25,486 (662 ) Public utilities 298,962 (5,953 ) 17,840 (668 ) 316,802 (6,621 ) Corporate 1,522,544 (54,295 ) 323,567 (18,618 ) 1,846,111 (72,913 ) Residential mortgage-backed 148,712 (2,726 ) 95,443 (3,501 ) 244,155 (6,227 ) Home equity — — — — — — Total temporarily impaired securities $ 1,986,981 (63,361 ) 445,573 (23,062 ) 2,432,554 (86,423 ) The following table shows the gross unrealized losses and fair values of the Company's available for sale investments by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2015 . Available For Sale Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Debt securities: State and political subdivisions $ — — 552 (34 ) 552 (34 ) Public utilities 42,093 (775 ) — — 42,093 (775 ) Corporate 843,679 (32,500 ) 151,319 (22,003 ) 994,998 (54,503 ) Home equity — — 4,823 (12 ) 4,823 (12 ) 885,772 (33,275 ) 156,694 (22,049 ) 1,042,466 (55,324 ) Equity securities 649 (124 ) 102 (28 ) 751 (152 ) Total temporarily impaired securities $ 886,421 (33,399 ) 156,796 (22,077 ) 1,043,217 (55,476 ) The Company does not consider securities to be other-than-temporarily impaired where the market decline is attributable to factors such as market volatility, liquidity, spread widening and credit quality where we anticipate a recovery of all amounts due under the contractual terms of the security and have the intent and ability to hold until recovery or maturity. Based on review in concert with the Company’s ability and intent to hold these securities until maturity, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2015 . The Company will monitor the investment portfolio for future changes in issuer facts and circumstances that could result in future impairments beyond those currently identified. Debt securities. The gross unrealized losses for debt securities are made up of 396 individual issues, or 29.7% of the total debt securities held by the Company. The market value of these bonds as a percent of amortized cost averages 96.1% . Of the 396 securities, 86 , or approximately 21.7% , fall in the 12 months or greater aging category; and 387 were rated investment grade at December 31, 2015 . Equity securities. The gross unrealized losses for equity securities are made up of 21 individual issues. These holdings are reviewed quarterly for impairment. Twelve of the equity securities were other-than-temporarily impaired at December 31, 2015 , in accordance with Company policy. The following table shows the gross unrealized losses and fair values of the Company's held to maturity investments by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2014 . Held to Maturity Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Debt securities: State and political subdivisions $ — — 23,076 (336 ) 23,076 (336 ) Public utilities 7,078 (13 ) 48,198 (744 ) 55,276 (757 ) Corporate 156,839 (2,997 ) 698,316 (15,594 ) 855,155 (18,591 ) Residential mortgage-backed 17,698 (240 ) 181,694 (3,924 ) 199,392 (4,164 ) Home equity 2,206 (57 ) — — 2,206 (57 ) Total temporarily impaired securities $ 183,821 (3,307 ) 951,284 (20,598 ) 1,135,105 (23,905 ) The following table shows the gross unrealized losses and fair values of the Company's available for sale investments by investment category, and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2014 . Available For Sale Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Debt securities: State and political subdivisions $ — — 553 (36 ) 553 (36 ) Public utilities — — 14,827 (126 ) 14,827 (126 ) Corporate 100,373 (2,990 ) 187,699 (5,971 ) 288,072 (8,961 ) Residential mortgage-backed — — — — — — Home equity — — 4,826 (9 ) 4,826 (9 ) 100,373 (2,990 ) 207,905 (6,142 ) 308,278 (9,132 ) Equity securities 305 (52 ) 3,801 (293 ) 4,106 (345 ) Total temporarily impaired securities $ 100,678 (3,042 ) 211,706 (6,435 ) 312,384 (9,477 ) Unrealized losses increased in 2015 from 2014 levels due to a rise in interest rate levels during the period (which serves to decrease market values of debt securities) and as a result of valuation declines in the oil and gas (energy) sector in conjunction with the drop in oil prices. The Company does not consider these investments to be other-than-temporarily impaired because the Company does not intend to sell these securities until recovery in fair value and expects to receive all amounts due relative to principal and interest. The amortized cost and fair value of investments in debt securities at December 31, 2015 , by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Debt Securities Available for Sale Debt Securities Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) Due in 1 year or less $ 131,110 132,759 152,369 155,910 Due after 1 year through 5 years 830,945 878,847 1,534,855 1,641,932 Due after 5 years through 10 years 1,774,539 1,749,470 3,663,415 3,650,811 Due after 10 years 60,641 60,580 320,307 330,976 2,797,235 2,821,656 5,670,946 5,779,629 Mortgage and asset-backed securities 36,463 39,566 1,503,021 1,555,807 Total $ 2,833,698 2,861,222 7,173,967 7,335,436 The Company uses the specific identification method in computing realized gains and losses. The table below details the nature of realized gains and losses, excluding impairments, during the year. Years Ended December 31, 2015 2014 2013 (In thousands) Available for sale debt securities: Realized gains on disposal $ 3,378 7,795 4,418 Realized losses on disposal (74 ) (22 ) (6 ) Held to maturity debt securities: Realized gains on redemption 4,027 3,453 3,845 Realized losses on redemption (25 ) (17 ) (72 ) Equity securities realized gains 155 69 511 Real estate — 955 262 Mortgage loans — — — Other — (478 ) — Totals $ 7,461 11,755 8,958 Due to significant credit deterioration, one bond from the held to maturity portfolio was sold in 2013. The sale in 2013 resulted in an insignificant realized gain. No sales were made out of the held to maturity portfolio in 2015 and 2014. Except for the total U.S. government agency mortgage-backed securities held, the Company had no other investments in any entity in excess of 10% of stockholders' equity at December 31, 2015 or 2014 . The table below presents net impairment losses recognized in earnings for the periods indicated. Years Ended 2015 2014 2013 (In thousands) Total other-than-temporary impairment recoveries (losses) on debt securities $ 3,053 125 909 Portion recognized in comprehensive income (3,053 ) (132 ) (1,151 ) Net impairment losses on debt securities recognized in earnings — (7 ) (242 ) Equity securities impairments (252 ) (143 ) (63 ) Totals $ (252 ) (150 ) (305 ) For the years ended December 31, 2015 and December 31, 2014 , the Company recovered $3.1 million and $0.1 million , respectively, on previously impaired asset-backed securities. The credit component of the asset-backed securities impairment was determined as the difference between amortized cost and the present value of the cash flows expected to be received, discounted at the original yield. The significant inputs used to project cash flows on asset-backed securities are estimated future prepayment rates, default rates and default loss severity. The table below presents a roll forward of credit losses on securities for which the Company also recorded non-credit other-than-temporary impairments in other comprehensive loss. Year Ended Year Ended December 31, 2015 December 31, 2014 (In thousands) Beginning balance, cumulative credit losses related to other-than-temporary impairments $ 2,298 2,472 Reductions for securities disposed during current period (20 ) (181 ) Additions for OTTI where credit losses have been previously recognized — 7 Ending balance, cumulative credit losses related to other-than-temporary impairments $ 2,278 2,298 (D) Net Unrealized Gains (Losses) Net unrealized gains (losses) on investment securities included in stockholders' equity at December 31, 2015 and 2014 , are as follows: December 31, 2015 2014 (In thousands) Gross unrealized gains $ 87,493 157,304 Gross unrealized losses (56,064 ) (12,926 ) Adjustments for: Deferred policy acquisition costs and sales inducements (12,804 ) (62,856 ) Deferred Federal income tax expense (6,519 ) (28,556 ) 12,106 52,966 Net unrealized gains related to securities transferred to held to maturity — — Net unrealized gains on investment securities $ 12,106 52,966 (E) Transfer of Securities For the year ended December 31, 2015, the Company transferred one security with an amortized value of $9.1 million from the held to maturity portfolio to the available for sale portfolio. The security had been downgraded by S&P to a CCC rating in the period transferred and was at risk for transitioning to a D rating due to certain credit-related events. There were no transfers in 2014 between held to maturity and available for sale. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2015 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCE Effective January 1, 2011, the Company began reinsuring any risk on any one life in excess of $500,000 . The Company's general policy prior to that date was to reinsure that portion of any risk in excess of $250,000 on the life of any one individual. Total life insurance in force was $22.0 billion and $23.1 billion at December 31, 2015 and 2014 , respectively. Of these amounts, life insurance in force totaling $5.0 billion and $5.3 billion was ceded to reinsurance companies on a yearly renewable term basis at December 31, 2015 and 2014 , respectively. In accordance with the reinsurance contracts, reinsurance receivables including amounts related to claims incurred but not reported and liabilities for future policy benefits totaled $3.7 million and $7.4 million at December 31, 2015 and 2014 , respectively. Premiums and contract revenues were reduced by $19.1 million , $19.0 million and $18.7 million for reinsurance premiums ceded during 2015 , 2014 and 2013 , respectively. Benefit expenses were reduced by $14.2 million , $6.4 million and $7.0 million , for reinsurance recoveries during 2015 , 2014 and 2013 , respectively. A contingent liability exists with respect to reinsurance, as the Company remains liable if the reinsurance companies are unable to perform and meet their obligations under the existing agreements. The Company does not assume reinsurance. |
Federal Income Taxes
Federal Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Federal Income Taxes | FEDERAL INCOME TAXES Total Federal income taxes were allocated as follows: Years Ended December 31, 2015 2014 2013 (In thousands) Taxes (benefits) on earnings from continuing operations: Current $ 8,279 29,395 71,709 Deferred 39,993 22,538 (26,259 ) Taxes on earnings 48,272 51,933 45,450 Taxes (benefits) on components of stockholders' equity: Net unrealized gains and losses on securities available for sale (22,014 ) 4,072 (24,201 ) Foreign currency translation adjustments 75 (358 ) (398 ) Change in benefit plan liability (397 ) (1,777 ) 3,005 Total Federal income taxes (benefit) $ 25,936 53,870 23,856 The provisions for Federal income taxes attributable to earnings from continuing operations vary from amounts computed by applying the statutory income tax rate of 35% to income statement earnings before Federal income taxes due to differences between the financial statement reporting and income tax treatment of certain items. The reasons for the differences and the corresponding tax effects are as follows: Years Ended December 31, 2015 2014 2013 (In thousands) Income tax expense at statutory rate of 35% $ 51,334 55,133 49,594 Dividend received deduction (1,194 ) (1,076 ) (1,140 ) Tax exempt interest (2,195 ) (2,155 ) (2,065 ) Tax adjustment on foreign currency 618 (358 ) (214 ) Adjustments pertaining to prior tax years (296 ) 1 (273 ) Nondeductible insurance 160 160 160 Nondeductible expenses 261 277 121 Other, net (416 ) (49 ) (733 ) Taxes on earnings from continuing operations $ 48,272 51,933 45,450 There were no deferred taxes attributable to enacted tax rate changes for the years ended December 31, 2015 , 2014 and 2013 . The Company expects its effective tax rate to be less than the statutory rate of 35% due to recurring permanent differences that reduce tax expense, principally tax exempt interest income and the dividend received deduction. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014 are presented below. December 31, 2015 2014 (In thousands) Deferred tax assets: Future policy benefits, excess of financial accounting liabilities over tax liabilities $ 251,701 292,262 Investment securities write-downs for financial accounting purposes 3,493 6,246 Benefit plan liabilities 12,397 11,333 Accrued operating expenses recorded for financial accounting purposes not currently tax deductible 4,859 5,588 Foreign currency translation adjustments 5,098 4,318 Accrued and unearned investment income recognized for tax purposes and deferred for financial accounting purposes 334 390 Other 5 6 Total gross deferred tax assets 277,887 320,143 Deferred tax liabilities: Deferred policy acquisition and sales inducement costs, principally expensed for tax purposes (309,476 ) (311,680 ) Debt securities, principally due to deferred market discount for tax (9,182 ) (8,477 ) Real estate, principally due to adjustments for financial accounting purposes (1,025 ) (1,023 ) Net unrealized gains on securities available for sale (6,519 ) (25,185 ) Fixed assets, due to different depreciation bases (492 ) (757 ) Other (526 ) (4,696 ) Total gross deferred tax liabilities (327,220 ) (351,818 ) Net deferred tax liabilities $ (49,333 ) (31,675 ) There were no valuation allowances for deferred tax assets at December 31, 2015 and 2014 . In assessing deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and available tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deductible differences. In accordance with GAAP, the Company assessed whether it had any significant uncertain tax positions related to open examination or other IRS issues and determined that there were none. Accordingly, no reserve for uncertain tax positions has been recorded. Should a provision for any interest or penalties relative to unrecognized tax benefits be necessary, it is the Company's policy to accrue for such in its income tax accounts. There were no such accruals as of December 31, 2015 or 2014 . The Company and its corporate subsidiaries file a consolidated U.S. Federal income tax return, which is subject to examination for all years after 2011. Allocation of the consolidated Federal income tax liability amongst the Company and its consolidated subsidiaries is based on separate return calculations pursuant to the "wait-and-see" method as described in sections 1.1552-1(a)(1) and 1.1502-33(d)(2) of the current Treasury Regulations. Under this method, consolidated group members are not given current credit for net losses until future net taxable income is generated to realize such credits. |
Information Regarding Controlli
Information Regarding Controlling Stockholder | 12 Months Ended |
Dec. 31, 2015 | |
Information Regarding Controlling Stockholder [Abstract] | |
Information Regarding Controlling Stockholder | INFORMATION REGARDING CONTROLLING STOCKHOLDER Robert L. Moody, Chairman of the Board of Directors of NWLGI, owns 99.0% of the total outstanding shares of the Company's Class B common stock and 33.7% of the Class A common stock as of December 31, 2015 . Holders of the Company's Class A common stock elect one-third of the Board of Directors of the Company, and holders of the Class B common stock elect the remainder. Any cash or in-kind dividends paid on each share of Class B common stock are to be only one-half of the cash or in-kind dividends paid on each share of Class A common stock. Also, in the event of liquidation of the Company, the Class A stockholders shall first receive the par value of their shares; then the Class B stockholders shall receive the par value of their shares; and the remaining net assets of the Company shall be divided between the stockholders of both Class A and Class B common stock, based on the number of shares held. |
Pension and Other Postretiremen
Pension and Other Postretirement Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Plans | PENSION AND OTHER POSTRETIREMENT PLANS (A) Defined Benefit Pension Plans National Western sponsors a qualified defined benefit pension plan covering employees enrolled prior to 2008. The plan provides benefits based on the participants' years of service and compensation. The company makes annual contributions to the plan that complies with the minimum funding provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). On October 19, 2007, National Western’s Board of Directors approved an amendment to freeze the Pension Plan as of December 31, 2007. The freeze ceased future benefit accruals to all participants and closed the Plan to any new participants. In addition, all participants became immediately 100% vested in their accrued benefits as of that date. As participants are no longer earning credit for service, future qualified defined benefit plan expense is projected to be minimal. Fair values of plan assets and liabilities are measured as of December 31 for each year. A detail of plan disclosures is provided below. Obligations and Funded Status December 31, 2015 2014 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 23,328 21,187 Service cost 205 168 Interest cost 983 958 Actuarial gain (loss) 2,358 2,357 Benefits paid (1,404 ) (1,342 ) Projected benefit obligations at end of year 25,470 23,328 Changes in plan assets: Fair value of plan assets at beginning of year 19,646 18,908 Actual return on plan assets (127 ) 1,747 Contributions — 333 Benefits paid (1,404 ) (1,342 ) Fair value of plan assets at end of year 18,115 19,646 Funded status at end of year $ (7,355 ) (3,682 ) The service cost shown above for each year represents plan expenses expected to be paid out of plan assets. Under the clarified rules of the Pension Protection Act, plan expenses paid from plan assets are to be included in the plan's service cost component. December 31, 2015 2014 (In thousands) Amounts recognized in the Company's consolidated financial statements: Assets $ — — Liabilities (7,355 ) (3,682 ) Net amount recognized $ (7,355 ) (3,682 ) Amounts recognized in accumulated other comprehensive income: Net loss $ 11,039 8,017 Prior service cost — 3 Net amount recognized $ 11,039 8,020 The accumulated benefit obligation was $25.5 million and $23.3 million at December 31, 2015 and 2014 , respectively. Components of Net Periodic Benefit Cost Years Ended December 31, 2015 2014 2013 (In thousands) Components of net periodic benefit costs: Interest cost $ 983 958 873 Service cost 205 168 190 Expected return on plan assets (1,320 ) (1,278 ) (1,134 ) Amortization of prior service cost 3 4 4 Amortization of net loss 784 422 812 Net periodic benefit cost 655 274 745 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net loss (gain) 3,806 1,888 Amortization of prior service cost (3 ) (4 ) Amortization of net loss (gain) (784 ) (422 ) Total recognized in other comprehensive income 3,019 1,462 Total recognized in net periodic benefit cost and other comprehensive income $ 3,674 1,736 The estimated net loss that will be amortized from accumulated other comprehensive income into net periodic benefit cost over 2016 , based on the average expected future service of plan participants, is $746,200 . The estimated prior service cost that will be amortized from accumulated other comprehensive income into net periodic benefit cost over 2016 will be minimal. Assumptions December 31, 2015 2014 Weighted-average assumptions used to determine benefit obligations: Discount rate 4.00 % 3.75 % Rate of compensation increase n/a n/a December 31, 2015 2014 2013 Weighted-average assumptions used to determine net periodic benefit cost: Discount rate 3.75 % 4.60 % 3.75 % Expected long-term return on plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase n/a n/a n/a The assumed long-term rate of return on plan assets is generally set at the rate expected to be earned based on the long-term investment policy of the plan and the various classes of invested funds, based on the input of the plan’s investment advisors and consulting actuary and the plan’s historic rate of return. As of December 31, 2015 , the plan’s average 10 -year and inception-to-date returns were 5.80% and 6.96% , respectively. In setting the annual discount rate assumption, the Pension Committee reviews the current 10 year and 30 year corporate bond yields, the current spread to treasuries and their relative change during the past twelve months. It also considers the present value of the projected benefit payment stream based on the Citigroup Pension Discount Curve and market data observations provided by independent consultants. In setting the annual portfolio rate of return assumption, the Pension Committee considers the Plan’s actual long-term performance, the portfolio’s current allocation and individual investment holdings, the Committee’s and the investment manager’s expectations for future long term investment strategy and expected performance, and the advice of consultants knowledgeable about overall market expectations and benchmark rates of return used by comparable companies. Plan Assets As discussed in Note 14, Fair Values of Financial Instruments, the Company adopted GAAP guidance which defines fair value and establishes a framework for measuring fair value of financial assets. Using this guidance, the Company has categorized its pension plan assets into a three level hierarchy, based on the priority of inputs to the valuation process. The fair value hierarchy classifications are reviewed annually. Reclassification of certain financial assets and liabilities may result based on changes in the observability of valuation attributes. The following table sets forth the Company’s pension plan assets within the fair value hierarchy as of December 31, 2015 . December 31, 2015 Total Level 1 Level 2 Level 3 (In thousands) Cash $ 778 778 — — Equity securities Domestic 10,684 10,684 — — International 382 382 — — Debt securities U.S. government agencies — — — — Corporate bonds 6,271 — 6,271 — Total $ 18,115 11,844 6,271 — Investment securities. Fair values for investments in debt and equity securities are based on quoted market prices, where available. For securities not actively traded, fair values are estimated using values obtained from various independent pricing services. In the cases where prices are unavailable from these sources, values are estimated by discounting expected future cash flows using a current market rate applicable to the yield, credit quality, and maturity of the investments. Cash and cash equivalents. The carrying amounts reported in the consolidated balance sheet for these instruments approximate their fair values. The plan’s weighted-average asset allocations by asset category have been as follows: December 31, 2015 2014 2013 Asset Category: Equity securities 61% 64% 70% Debt securities 35% 32% 29% Cash and cash equivalents 4% 4% 1% Total 100% 100% 100% The Company has established and maintains an investment policy statement for the assets held in the plan's trust. The investment strategies are of a long-term nature and are designed to meet the following objectives: ensure that funds are available to pay benefits as they become due set forth an investment structure detailing permitted assets and expected allocation ranges among classes ensure that plan assets are managed in accordance with ERISA The Pension Plan is a highly diversified portfolio, the 96% of the pension assets not invested in cash or U.S. Government agencies are allocated among 228 different investments, with no single credit representing more than 2.2% of the fair value of the portfolio. The investment policy statement sets forth the following acceptable ranges for each asset's class. Acceptable Range Asset Category: Equity securities 55-70% Debt securities 30-40% Cash and cash equivalents 0-15% Deviations from these ranges are permitted if such deviations are consistent with the duty of prudence under ERISA. Investments in natural resources, venture capital, precious metals, futures and options, real estate, and other vehicles that do not have readily available objective valuations are not permitted. Short sales, use of margin or leverage, and investment in commodities and art objects are also prohibited. The investment policy statement is reviewed annually to ensure that the objectives are met considering any changes in benefit plan design, market conditions, or other material considerations. Contributions The Company does not expect to contribute to the plan during 2016 although additional amounts may be contributed. The plan’s funding status is reviewed periodically throughout the year by National Western’s Pension Plan Committee. The Company intends to contribute at least the minimum amounts necessary for tax compliance and to maintain an Adjusted Funding Target Attainment Percentage (AFTAP) of over 80% to meet the Pension Protection Act Plan’s threshold. Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2016 $ 1,398 2017 1,493 2018 1,472 2019 1,464 2020 1,463 2021-2025 7,079 The Company also sponsors three non-qualified defined benefit pension plans. The first plan covers certain senior officers and provides benefits based on the participants' years of service and compensation. The primary pension obligations and administrative responsibilities of the plan are maintained by a pension administration firm, which is a subsidiary of American National Insurance Company ("ANICO"), a related party. ANICO has guaranteed the payment of pension obligations under the plan. However, the Company has a contingent liability with respect to the plan should these entities be unable to meet their obligations under the existing agreements. Also, the Company has a contingent liability with respect to the plan in the event that a plan participant continues employment with the Company beyond age seventy, the aggregate average annual participant salary increases exceed 10% per year, or any additional employees become eligible to participate in the plan. If any of these conditions are met, the Company would be responsible for any additional pension obligations resulting from these items. Amendments were made to this plan to allow an additional employee to participate and to change the benefit formula for the Chairman of the Company. As previously mentioned, these additional obligations are a liability to the Company. Effective December 31, 2004, this plan was frozen with respect to the continued accrual of benefits of the Chairman and the President of the Company in order to comply with law changes under the American Jobs Creation Act of 2004 ("Act"). Effective July 1, 2005, the Company established a second non-qualified defined benefit plan for the benefit of the Chairman of the Company. This plan is intended to provide for post-2004 benefit accruals that mirror and supplement the pre-2005 benefit accruals under the previously discussed non-qualified plan, while complying with the requirements of the Act. Effective November 1, 2005, the Company established a third non-qualified defined benefit plan for the benefit of the President of the Company. This plan is intended to provide for post-2004 benefit accruals that supplement the pre-2005 benefit accruals under the first non-qualified plan as previously discussed, while complying with the requirements of the Act. A detail of plan disclosures related to the amendments of the original plan and the additional two plans is provided below: Obligations and Funded Status December 31, 2015 2014 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 24,145 19,870 Service cost 256 294 Interest cost 876 1,003 Actuarial (gain) loss (560 ) 4,960 Benefits paid (1,982 ) (1,982 ) Projected benefit obligations at end of year 22,735 24,145 Change in plan assets: Fair value of plan assets at beginning of year — — Contributions 1,982 1,982 Benefits paid (1,982 ) (1,982 ) Fair value of plan assets at end of year — — Funded status at end of year $ (22,735 ) (24,145 ) December 31, 2015 2014 (In thousands) Amounts recognized in the Company's consolidated financial statements: Assets $ — — Liabilities (22,735 ) (24,145 ) Net amount recognized $ (22,735 ) (24,145 ) Amounts recognized in accumulated other comprehensive income: Net loss $ 9,885 11,959 Prior service cost 700 759 Net amount recognized $ 10,585 12,718 The accumulated benefit obligation was $19.5 million and $17.7 million at December 31, 2015 and 2014 , respectively. Components of Net Periodic Benefit Cost Years Ended December 31, 2015 2014 2013 (In thousands) Components of net periodic benefit cost: Service cost $ 256 294 177 Interest cost 876 1,003 801 Amortization of prior service cost 59 59 59 Amortization of net loss 1,514 1,294 1,173 Net periodic benefit cost 2,705 2,650 2,210 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net (gain) loss (560 ) 4,960 Amortization of prior service cost (59 ) (59 ) Amortization of net (gain) loss (1,514 ) (1,294 ) Total recognized in other comprehensive income (2,133 ) 3,607 Total recognized in net periodic benefit cost and other comprehensive income $ 572 6,257 The estimated net loss to be amortized from accumulated other comprehensive income into net periodic benefit cost over 2016 , based on the average expected future service of plan participants, is $1,286,000 . The estimated prior service cost to be amortized from accumulated other comprehensive income into net periodic benefit cost over 2016 will be $59,000 . Assumptions December 31, 2015 2014 Weighted-average assumptions used to determine benefit obligations: Discount rate 4.00 % 3.75 % Rate of compensation increase 4.00 % 4.00 % December 31, 2015 2014 2013 Weighted-average assumptions used to determine net periodic benefit costs: Discount rate 3.75 % 4.60 % 3.75 % Expected long-term return on plan assets n/a n/a n/a Rate of compensation increase 4.00 % 4.00 % 4.00 % The plan is unfunded and therefore no assumption has been made related to the expected long-term return on plan assets. Plan Assets The plan is unfunded and therefore had no assets at December 31, 2015 or 2014 . Contributions The Company expects to contribute approximately $2.0 million to the plan in 2016 . Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2016 $ 1,982 2017 1,982 2018 1,982 2019 1,982 2020 1,982 2021-2025 9,908 (B) Defined Contribution Pension Plans In addition to the defined benefit pension plans, the Company sponsors a qualified 401(k) plan for substantially all employees and a non-qualified deferred compensation plan primarily for senior officers. The Company made annual contributions to the 401(k) plan in 2015 and 2014 , of up to four percent of each employee's compensation, and in 2013 , of up to three percent of each employee's compensation, based on the employee's personal level of salary deferrals to the plan. All Company contributions are subject to a vesting schedule based on the employee's years of service. For the years ended December 31, 2015 , 2014 and 2013 , Company contributions totaled $489,000 , $491,000 and $410,000 , respectively. The non-qualified deferred compensation plan was established to allow eligible employees to defer the payment of a percentage of their compensation and to provide for additional Company contributions. Company contributions are subject to a vesting schedule based on the employee's years of service. For the years ended December 31, 2015 , 2014 and 2013 , Company contributions totaled $103,667 , $99,000 , and $140,000 , respectively. (C) Postretirement Employment Plans Other Than Pension The Company sponsors a health care plan that was amended in 2004 to provide postretirement benefits to certain fully-vested individuals. The plan is unfunded. The Company uses a December 31 measurement date for the plan. A detail of plan disclosures related to the plan is provided below: Obligations and Funded Status December 31, 2015 2014 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 2,890 2,725 Interest cost 130 111 Actuarial loss (gain) 412 107 Benefits paid (125 ) (53 ) Projected benefit obligations at end of year 3,307 2,890 Changes in plan assets: Fair value of plan assets at beginning of year — — Contributions 125 53 Benefits paid (125 ) (53 ) Fair value of plan assets at end of year — — Funded status at end of year $ (3,307 ) (2,890 ) December 31, 2015 2014 (In thousands) Amounts recognized in the Company's consolidated financial statements: Assets $ — — Liabilities (3,307 ) (2,890 ) Net amount recognized $ (3,307 ) (2,890 ) Amounts recognized in accumulated other comprehensive income: Net loss $ 480 128 Prior service cost 361 464 Net amount recognized $ 841 592 Components of Net Periodic Benefit Cost Years Ended December 31, 2015 2014 2013 (In thousands) Components of net periodic benefit cost: Interest cost $ 130 111 117 Amortization of prior service cost 103 103 103 Amortization of net loss 61 (4 ) 33 Net periodic benefit cost 294 210 253 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net (gain) loss 412 107 Amortization of prior service cost (103 ) (103 ) Amortization of net (gain) loss (61 ) 4 Total recognized in other comprehensive income 248 8 Total recognized in net periodic benefit cost and other comprehensive income $ 542 218 The estimated net loss to be amortized from accumulated other comprehensive income into net periodic benefit cost over 2016 , based on the average expected future service of plan participants, is $23,000 . The estimated prior service cost to be amortized from accumulated other comprehensive income into net periodic benefit cost over 2016 will be $103,000 . Assumptions December 31, 2015 2014 Weighted-average assumptions used to determine benefit obligations: Discount rate 4.00 % 3.75 % Expected long-term return on plan assets n/a n/a For measurement purposes, an 8% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2016 and future years. Assumed health care trend rates have a significant effect on the amounts reported for the health care plans. A one percentage point change in assumed health care cost trend rates would have the following effects for the years ended December 31: December 31, 2015 December 31, 2014 1% Point Increase 1% Point Decrease 1% Point Increase 1% Point Decrease (In thousands) Effect on total of service and interest cost components $ 35 (26 ) 22 (17 ) Effect on postretirement benefit obligation $ 913 (679 ) 595 (466 ) Plan Assets The plans are unfunded and therefore had no assets at December 31, 2015 and 2014 . Contributions The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2016 $ 59 2017 63 2018 67 2019 72 2020 76 2021-2025 452 |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Short-term Debt [Abstract] | |
Short-Term Borrowings | SHORT-TERM BORROWINGS National Western has available a $40 million bank line of credit (with Moody National Bank, a related party) primarily for cash management purposes. The Company is required to maintain a collateral security deposit in trust with the sponsoring bank having a fair value equal to 110% of any outstanding liability. The Company had no outstanding borrowings with the bank at December 31, 2015 or 2014 . The Company had assets having an amortized value of $43.5 million (fair value of $45.8 million ) on deposit with the lender at year end 2015 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES (A) Legal Proceedings In the normal course of business, the Company is involved or may become involved in various legal actions in which claims for alleged economic and punitive damages have been or may be asserted, some for substantial amounts. In recent years, carriers offering life insurance and annuity products have faced litigation, including class action lawsuits, alleging improper product design, improper sales practices, and similar claims. As discussed below, the Company has been a defendant over the past several years in such a class action lawsuit. Given the uncertainty involved in these types of actions, the ability to make a reliable evaluation of the likelihood of an unfavorable outcome or an estimate of the amount of or range of potential loss is endemic to the particular circumstances and evolving developments of each individual matter on its own merits. During 2014, the Company (National Western) resolved a class action lawsuit pending since June 12, 2006, in the U.S. District Court for the Southern District of California. The case was titled In Re National Western Life Insurance Deferred Annuities Litigation . The complaint asserted claims for RICO violations, Financial Elder Abuse, Violation of Cal. Bus. & Prof. Code 17200, et seq, Violation of Cal. Bus. & Prof. Code 17500, et seq, Breach of Fiduciary Duty, Aiding and Abetting Breach of Fiduciary Duty, Fraudulent Concealment, Cal. Civ. Code 1710, et seq, Breach of the Duty of Good Faith and Fair Dealing, and Unjust Enrichment and Imposition of Constructive Trust. On July 12, 2010 the Court certified a nationwide class of policyholders under the RICO allegation and a California class under all of the remaining causes of action except breach of fiduciary duty. The parties entered into a Settlement and Release Agreement in August of 2013 ("Settlement") which was finally approved by the Court on February 11, 2014. On February 12, 2014, the Court issued a redacted final approval order granting the Motion for Final Approval of Class Action Settlement. The Settlement became final and non-appealable on April 12, 2014. The Settlement Agreement and Plaintiffs' Request for Attorneys' Fees and Costs were approved by the Court, and the Company paid the Court-approved amount of attorneys’ fees and costs in April 2014. The Company also made certain payments to surrendered and annuitized policyholders in June 2014. In addition, the Company agreed to provide bonuses on annuitization for active policyholders who choose a 10 -year or a 20 -year certain and life settlement option. The Company had held reserves of $6.5 million for the matter at December 31, 2013 which approximated the ultimate settlement amounts described above. In addition to the class action lawsuit described above, the Company was the named defendant in the case of Sheila Newman vs. National Western Life Insurance Company , which alleged mishandling of policyholder funds by an agent. On February 3, 2010, the 415th Judicial District Court of Parker County in Weatherford, Texas, entered a Final Judgment against the Company of approximately $208,000 including actual damages of $113,000 and amounts for attorney's fees, and prejudgment interest on the actual damages. In addition, the Final Judgment included $150 million for exemplary damages. The Company vigorously defended this case and appealed the Final Judgment to the Court of Appeals Second District of Texas in Fort Worth. The Court of Appeals on August 11, 2011, reversed the trial court judgment in its entirety and rendered a take nothing verdict in favor of National Western. Plaintiffs (Appellees) filed a motion for a rehearing which the Court ruled on October 13, 2011, that the trial court's judgment was still reversed and judgment was still entered that Newman take nothing, all in favor of National Western. The Plaintiffs (Appellees) filed a Motion for Reconsideration En Banc which the Court of Appeals denied on October 27, 2011. The Plaintiffs (Appellees) then filed a Motion for Rehearing of the Court's amended decision, which the Court of Appeals denied on December 22, 2011. On March 21, 2012, Plaintiffs (Appellees) filed a petition for review with the Texas Supreme Court and the Company filed its response on April 20, 2012. The Supreme Court asked the parties for briefs on the issues before deciding on whether to hear the case and both parties submitted their briefs. On February 14, 2013, the Supreme Court denied the Plaintiffs petition for review. On April 3, 2013, Plaintiff filed a Motion for Rehearing. The Supreme Court denied Plaintiff's Motion for Rehearing on June 7, 2013 thus ending the matter. On October 26, 2011 the Brazilian Superintendence of Private Insurance (“SUSEP”) attempted to serve National Western with a subpoena regarding an administrative proceeding initiated by SUSEP in which it alleged that National Western was operating as an insurance company in Brazil without due authorization. National Western had been informed that SUSEP was attempting to impose a penal fine, based on currency exchange rates at that time, of approximately $6.0 billion on the company. SUSEP unsuccessfully attempted to serve National Western with notice regarding this matter. National Western does not transact business in Brazil and has no officers, employees, property, or assets in Brazil. National Western believes that SUSEP has no jurisdiction over the company, that SUSEP's attempts at service of process were invalid, and that any penal fine would be unenforceable. In addition, a new law recently enacted in Brazil would limit the amount of any penal fine to 3 million reais (approximately $800,000 based on current exchange rates). For the reasons described above, the Company does not believe that this matter meets the definition of a material pending legal proceeding as such term is defined in Item 103 of Regulation S-K but has included the foregoing description solely due to the purported amount of the fine sought at that time. Nonetheless, National Western is in discussions with SUSEP in an effort to resolve this matter. No conclusion can be drawn at this time as to the outcome of these discussions, or whether they will continue, or how any such outcome may impact the Company’s business, results of operations, or financial condition. However, in light of the pendency of discussions with Brazilian authorities, National Western has ceased accepting new applications from residents in Brazil. Although there can be no assurances, at the present time, the Company does not anticipate that the ultimate liability arising from such other potential, pending, or threatened legal actions will have a material adverse effect on the financial condition or operating results of the Company. Separately, the Brazilian authorities have commenced an investigation into possible violations of Brazilian criminal law in connection with the issuance of National Western insurance policies to Brazilian residents, and in assistance of such investigation a Commissioner appointed by the U.S. District Court for the Western District of Texas has issued a subpoena upon the company to provide information relating to such possible violations. No conclusion can be drawn at this time as to its outcome or how such outcome may impact the Company’s business, results of operations or financial condition. National Western is cooperating with the relevant governmental authorities in regard to this matter. (B) Financial Instruments In order to meet the financing needs of its customers in the normal course of business, the Company is a party to financial instruments with off-balance sheet risk. These financial instruments are commitments to extend credit which involve elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheet. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amounts, assuming that the amounts are fully advanced and that collateral or other security is of no value. Commitments to extend credit are legally binding agreements to lend to a customer that generally have fixed expiration dates or other termination clauses and may require payment of a fee. Commitments do not necessarily represent future liquidity requirements, as some could expire without being drawn upon. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The Company controls the credit risk of these transactions through credit approvals, limits, and monitoring procedures. The Company had $23.1 million in commitments to fund new loans and $1.7 million in commitments to extend credit relating to existing loans at December 31, 2015 . The Company evaluates each customer's creditworthiness on a case-by-case basis. (C) Guaranty Association Assessments The Company (National Western) is subject to state guaranty association assessments in all states in which it is licensed to do business. These associations generally guarantee certain levels of benefits payable to resident policyholders of insolvent insurance companies. Many states allow premium tax credits for all or a portion of such assessments, thereby allowing potential recovery of these payments over a period of years. However, several states do not allow such credits. The Company estimates its liabilities for guaranty association assessments by using the latest information available from the National Organization of Life and Health Insurance Guaranty Associations. The Company monitors and revises its estimates for assessments as additional information becomes available which could result in changes to the estimated liabilities. As of December 31, 2015 , 2014 and 2013 , liabilities for guaranty association assessments totaled $0.3 million , $0.3 million and $1.0 million , respectively. Other operating expenses related to state guaranty association assessments were minimal for the years ended December 31, 2015 , 2014 and 2013 . (D) Leases The Company leases various computers and other office related equipment under operating leases. Rental expenses for these leases were $0.2 million , $0.1 million and $0.4 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company's future annual lease obligations as of December 31, 2015 are in the table below (in thousands). 2016 $ 96 2017 and thereafter 192 Total $ 288 (E) Compensation Plan Effective January 1, 2006, the Company implemented a non-qualified deferred compensation plan to provide incentive bonuses to eligible agents. Agents qualified for participation by attaining certain sales goals each year. Company contributions were subject to a vesting schedule based on the agents’ number of years of qualification in the plan. The Company completed termination of the plan in 2015, paying out approximately $1.8 million of vested balances for the year ended December 31, 2015, and recaptured nonvested amounts of approximately $1.3 million . |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY (A) Changes in Common Stock Shares Outstanding Details of changes in shares of common stock outstanding are provided below. Years Ended December 31, 2015 2014 2013 (In thousands) Common stock shares outstanding: Shares outstanding at beginning of year 3,636 3,635 3,635 Shares exercised under stock option plan — 1 — Shares outstanding at end of year 3,636 3,636 3,635 The holding company reorganization effective October 1, 2015, provided for the conversion of each share of National Western Class A common stock, par value $1.00 per share, and each share of National Western Class B common stock, par value $1.00 per share, issued and outstanding immediately prior to the effective time of the merger, into one duly issued, fully paid and non-assessable share of Class A common stock, par value $0.01 per share and Class B common stock, par value $0.01 per share, of NWLGI. (B) Dividend Restrictions National Western is restricted by state insurance laws as to dividend amounts which may be paid to stockholders without prior approval from the Colorado Division of Insurance. The restrictions are based on the greater of statutory earnings from operations excluding capital gains or 10% of statutory surplus of the Company. The maximum dividend payment which may be made without prior approval in 2016 is $117.1 million . As discussed in Note 1 Consolidation and Basis of Presentation, on October 1, 2015, National Western completed its previously announced holding company reorganization and became a wholly owned subsidiary of NWLGI. While remaining under the same Colorado Division of Insurance restrictions pertaining to dividend amounts, dividends declared by National Western from that date forward will be payable entirely to NWLGI as the sole owner. National Western declared a $ 3.5 million ordinary cash dividend on October 2, 2015 which was paid October 16, 2015 to NWLGI. National Western also declared a $15.5 million property dividend of its wholly owned subsidiaries, NWL Investments, Inc., NWL Services, Inc., and Regent Care San Marcos Holdings, LLC., which were transferred to NWLGI on December 18, 2015. Dividends paid from National Western to NWLGI were eliminated in consolidation. On October 16, 2015, the Board of Directors of the NWLGI declared a cash dividend to stockholders on record as of October 30, 2015 which was paid December 3, 2015. The dividends approved were $0.36 per common share to Class A stockholders and $0.18 per common share to Class B stockholders. A dividend in the same amounts per share on Class A and Class B shares was declared in August and paid in December of 2014. (C) Regulatory Capital Requirements The Colorado Division of Insurance imposes minimum risk-based capital requirements on insurance companies that were developed by the National Association of Insurance Commissioners ("NAIC"). The formulas for determining the amount of risk-based capital ("RBC") specify various weighting factors that are applied to statutory financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio of National Western's regulatory total adjusted capital to its authorized control level RBC, as defined by the NAIC. Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. National Western's current authorized control level RBC of $108.2 million is significantly below its regulatory total adjusted capital of $1.2 billion . (D) Share-Based Payments The Company has a stock and incentive plan ("1995 Plan") which provides for the grant of any or all of the following types of awards to eligible employees: (1) stock options, including incentive stock options and non-qualified stock options; (2) stock appreciation rights, in tandem with stock options or freestanding; (3) restricted stock; and (4) performance awards. The Company has issued only non-qualified stock options under the 1995 Plan. The 1995 Plan began on April 21, 1995, and was amended on June 25, 2004 to extend the termination date to April 20, 2010. The number of shares of Class A, $1.00 par value, common stock which were allowed to be issued under the 1995 Plan, or as to which stock appreciation rights or other awards were allowed to be granted, could not exceed 300,000 . All shares under the 1995 Plan have been issued. Effective June 20, 2008, the Company’s shareholders approved a 2008 Incentive Plan (“2008 Plan”). The 2008 Plan is substantially similar to the 1995 Plan and authorized an additional number of Class A, currently $0.01 par value, common stock shares eligible for issue not to exceed 300,000 . These plans were assumed by NWLGI from National Western pursuant to the terms of the reorganization. All of the employees of the Company and its subsidiaries are eligible to participate in the two Plans. In addition, directors of the Company are eligible to receive the same types of awards as employees except that they are not eligible to receive incentive stock options. Company directors, including members of the Compensation and Stock Option Committee, are eligible for nondiscretionary stock options. The directors’ grants vest 20% annually following one full year of service to the Company from the date of grant. The employees’ grants vest 20% annually following three full years of service to the Company from the date of grant. All grants issued expire after ten years. In 2006, the Company adopted and implemented a limited stock buy-back program with respect to the 1995 Plan which provides option holders the additional alternative of selling shares acquired through the exercise of options directly back to the Company. Option holders may elect to sell such acquired shares back to the Company at any time within ninety (90) days after the exercise of options at the prevailing market price as of the date of notice of election. The buy-back program did not alter the terms and conditions of the Plan, however the program necessitated a change in accounting from the equity classification to the liability classification. In 2008, the Company implemented another limited stock buy-back program, substantially similar to the 2006 program, for shares issued under the 2008 Plan. These plans were assumed by NWLGI from National Western pursuant to the terms of the reorganization. The Company uses the current fair value method to measure compensation cost. As of December 31, 2015 , the liability balance was $7.7 million versus $9.3 million as of December 31, 2014 . A summary of shares available for grant and stock option activity is detailed below. Options Outstanding Shares Available For Grant Shares Weighted-Average Exercise Price Stock Options: Balance at January 1, 2015 291,000 29,768 $ 242.48 Exercised — (1,000 ) $ 208.05 Forfeited — (1,000 ) $ 255.13 Expired — — $ — Stock options granted — — $ — Balance at December 31, 2015 291,000 27,768 $ 243.26 Stock Appreciation Rights Outstanding Awards Weighted-Average Exercise Price Balance at January 1, 2015 92,186 $ 157.71 Exercised (5,925 ) $ 142.55 Forfeited — $ — Granted — $ — Balance at December 31, 2015 86,261 $ 158.75 The total intrinsic value of options exercised was $0.7 million , $1.1 million , and $2.5 million for the years ended December 31, 2015 , 2014 , and 2013 respectively. The total share-based liabilities paid were $0.7 million , $1.1 million , and $2.5 million for the years ended December 31, 2015 , 2014 , and 2013 respectively. For the years ended December 31, 2015 , 2014 , and 2013 the total cash received by the Company from the exercise of options under the Plan was $0.0 million , $0.2 million , and $0.0 million , respectively. The total fair value of shares vested during the years ended December 31, 2015 , 2014 , and 2013 was $1.1 million , $1.1 million , and $0.7 million , respectively. The following table summarizes information about stock options and SARs outstanding at December 31, 2015 . Options and SARs Outstanding Number Outstanding Weighted-Average Remaining Contractual Life Number Exercisable Exercise prices: 255.13 (options) 20,768 2.3 years 20,768 208.05 (options) 7,000 2.5 years 7,000 114.64 (SARs) 23,443 3.1 years 19,264 132.56 (SARs) 28,318 6.0 years 13,608 210.22 (SARs) 34,500 8.0 years 3,600 Totals 114,029 64,240 Aggregate intrinsic value (in thousands) $ 8,346 $ 4,727 The aggregate intrinsic value in the table above is based on the closing stock price of $251.94 per share on December 31, 2015 . In estimating the fair value of the options/SARs outstanding at December 31, the Company employed the Black-Scholes option pricing model with assumptions as detailed below. December 31, 2015 December 31, 2014 Expected term of options 2.3 to 8.0 years 3.3 to 9.0 years Expected volatility: Range 21.11% to 37.77% 19.67% to 37.75% Weighted-average 23.89 % 22.91 % Expected dividend yield 0.14 % 0.13 % Risk-free rate: Range 0.22% to 1.67% 0.13% to 1.62% Weighted-average 0.63 % 0.56 % The Company reviewed the contractual term relative to the options as well as perceived future behavior patterns of exercise. Volatility is based on the Company’s historical volatility over the expected term. The pre-tax compensation expense/(benefit) recognized in the consolidated financial statements related to the two Plans was $(0.9) million , $4.4 million and $5.7 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The related tax (benefit)/expense recognized was $0.3 million , $(1.5) million and $(2.0) million for the years ended December 31, 2015 , 2014 and 2013 , respectively. For the years ended December 31, 2015 , 2014 and 2013 , the total pre-tax compensation expense related to nonvested options not yet recognized was $1.4 million , $2.3 million and $3.7 million , respectively. This amount is expected to be recognized over a weighted-average period of 2.0 years. The Company recognizes compensation cost over the graded vesting periods. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Earnings per share amounts are presented using two different computations. Basic earnings per share excludes dilutive effects of certain securities or contracts, such as stock options, and is computed by dividing income available to each class of common stockholders on an as if distributed basis by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock, that then shared in the distributed earnings of each class of common stock. Stock options not included in the weighted-average number of diluted shares, because such shares would have been anti-dilutive, were immaterial. U.S. GAAP requires a two-class presentation for the Company’s two classes of common stock (Note 6, Information Regarding Controlling Stockholder). Accordingly, the earnings per share for both Class A and Class B are presented. The following table sets forth the computations of basic and diluted earnings per share. Years Ended December 31, 2015 2014 2013 Class A Class B Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net income $ 98,396 105,588 96,247 Dividends – Class A shares (1,237 ) (1,237 ) (1,237 ) Dividends – Class B shares (36 ) (36 ) (36 ) Undistributed income $ 97,123 104,315 94,974 Allocation of net income: Dividends $ 1,237 36 1,237 36 1,237 36 Allocation of undistributed income 94,376 2,747 101,365 2,950 92,287 2,687 Net income $ 95,613 2,783 102,602 2,986 93,524 2,723 Denominator: Basic earnings per share - weighted-average shares 3,436 200 3,436 200 3,435 200 Effect of dilutive stock options 1 — 1 — 4 — Diluted earnings per share - adjusted weighted-average shares for assumed conversions 3,437 200 3,437 200 3,439 200 Basic earnings per share $ 27.83 13.91 29.87 14.93 27.23 13.61 Diluted earnings per share $ 27.82 13.91 29.85 14.93 27.19 13.61 Stock options that were outstanding during the years ended December 31, 2015 and 2014 , but were not included in the computation of diluted earnings per share because the effect was anti-dilutive were approximately 21,000 and 22,200 respectively. |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Comprehensive Income | COMPREHENSIVE INCOME GAAP guidance requires that all items recognized under accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. This guidance requires that an enterprise (a) classify items of other comprehensive income by their nature in a financial statement and (b) display the accumulated balance of other comprehensive income separately from retained earnings and additional paid-in capital in the equity section of a statement of financial position. This guidance affects the Company's reporting presentation of certain items such as foreign currency translation adjustments, unrealized gains and losses on investment securities, and benefit plan liabilities. These items are reflected as components of other comprehensive income (loss), as reported in the accompanying consolidated financial statements. Components of other comprehensive income (loss) for 2015 , 2014 and 2013 and the related tax effect are detailed below. Amounts Before Taxes Tax (Expense)Benefit Amounts Net of Taxes (In thousands) 2015: Unrealized gains on securities, net of effects of deferred costs of $50,052: Net unrealized holding gains (losses) arising during the period $ (61,226 ) 21,429 (39,797 ) Unrealized liquidity losses 1,572 (550 ) 1,022 Reclassification adjustment for net gains included in net earnings (3,207 ) 1,122 (2,085 ) Amortization of net unrealized gains (losses) and related to transferred securities — — — Net unrealized gains (losses) on securities (62,861 ) 22,001 (40,860 ) Foreign currency translation adjustments 215 (75 ) 140 Benefit plan liability adjustment (1,134 ) 397 (737 ) Other comprehensive income (loss) $ (63,780 ) 22,323 (41,457 ) Amounts Before Taxes Tax (Expense)Benefit Amounts Net of Taxes (In thousands) 2014: Unrealized gains on securities, net of effects of deferred costs of $(10,927): Net unrealized holding gains (losses) arising during the period $ 19,287 (6,751 ) 12,536 Unrealized liquidity losses 40 (14 ) 26 Reclassification adjustment for net gains included in net earnings (7,693 ) 2,693 (5,000 ) Amortization of net unrealized gains (losses) related to transferred securities — — — Net unrealized gains (losses) on securities 11,634 (4,072 ) 7,562 Foreign currency translation adjustments (913 ) 357 (556 ) Benefit plan liability adjustment (5,077 ) 1,777 (3,300 ) Other comprehensive income (loss) $ 5,644 (1,938 ) 3,706 Amounts Before Taxes Tax (Expense)Benefit Amounts Net of Taxes (In thousands) 2013: Unrealized gains on securities, net of effects of deferred costs of $70,870: Net unrealized holding gains (losses) arising during the period $ (64,951 ) 22,733 (42,218 ) Unrealized liquidity losses 512 (179 ) 333 Reclassification adjustment for net gains included in net earnings (4,709 ) 1,648 (3,061 ) Amortization of net unrealized gains (losses) related to transferred securities — — — Net unrealized gains (losses) on securities (69,148 ) 24,202 (44,946 ) Foreign currency translation adjustments 246 406 652 Benefit plan liability adjustment 8,592 (3,004 ) 5,588 Other comprehensive income (loss) $ (60,310 ) 21,604 (38,706 ) |
Segment and Other Operating Inf
Segment and Other Operating Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment and Other Operating Information | SEGMENT AND OTHER OPERATING INFORMATION (A) Operating Segment Information The Company defines its reportable operating segments as domestic life insurance, international life insurance, annuities, and all other operations. The Company's segments are organized based on product types and geographic marketing areas. In addition, the Company regularly evaluates operating performance using non-GAAP financial measures which exclude or segregate realized investment gains and losses from operating revenues and earnings. The Company believes that the presentation of these non-GAAP financial measures enhances the understanding of the Company's results of operations by highlighting the results from ongoing operations and the underlying profitability factors of the Company's business. The Company excludes or segregates realized investment gains and losses because such items are often the result of events which may or may not be at the Company's discretion and the fluctuating effects of these items could distort trends in the underlying profitability of the Company's business. A summary of segment information, prepared in accordance with GAAP guidance, is provided below. Domestic Life Insurance International Life Insurance Annuities All Others Totals (In thousands) 2015: Selected Balance Sheet Items: Deferred policy acquisition costs and sales inducements $ 78,650 251,790 682,177 — 1,012,617 Total segment assets 868,466 1,260,538 9,054,951 268,675 11,452,630 Future policy benefits 748,853 944,672 8,005,833 — 9,699,358 Other policyholder liabilities 14,084 16,710 124,467 — 155,261 Condensed Income Statements: Premiums and contract charges $ 30,743 122,393 22,171 — 175,307 Net investment income 27,172 29,400 300,198 22,344 379,114 Other revenues 56 14 50 28,046 28,166 Total revenues 57,971 151,807 322,419 50,390 582,587 Life and other policy benefits 17,905 24,237 25,310 — 67,452 Amortization of deferred policy acquisition costs 8,647 19,975 91,711 — 120,333 Universal life and annuity contract interest 17,799 23,423 135,679 — 176,901 Other operating expenses 12,774 20,706 25,723 19,239 78,442 Federal income taxes (benefit) 278 20,819 14,432 10,220 45,749 Total expenses 57,403 109,160 292,855 29,459 488,877 Segment earnings (loss) $ 568 42,647 29,564 20,931 93,710 Domestic Life Insurance International Life Insurance Annuities All Others Totals (In thousands) 2014: Selected Balance Sheet Items: Deferred policy acquisition costs and sales inducements $ 64,279 245,353 653,053 — 962,685 Total segment assets 746,051 1,250,629 8,933,274 257,568 11,187,522 Future policy benefits 648,864 953,076 7,920,582 — 9,522,522 Other policyholder liabilities 12,159 11,898 115,165 — 139,222 Condensed Income Statements: Premiums and contract charges $ 28,801 118,838 22,476 — 170,115 Net investment income 34,695 51,539 398,163 21,033 505,430 Other revenues 55 372 68 21,135 21,630 Total revenues 63,551 170,749 420,707 42,168 697,175 Life and other policy benefits 11,856 24,034 18,405 — 54,295 Amortization of deferred policy acquisition costs 6,913 21,807 86,434 — 115,154 Universal life and annuity contract interest 27,050 46,255 224,954 — 298,259 Other operating expenses 13,547 23,449 27,015 19,540 83,551 Federal income taxes (benefit) 1,373 18,112 20,964 7,424 47,873 Total expenses 60,739 133,657 377,772 26,964 599,132 Segment earnings (loss) $ 2,812 37,092 42,935 15,204 98,043 Domestic Life Insurance International Life Insurance Annuities All Others Totals (In thousands) 2013: Selected Balance Sheet Items: Deferred policy acquisition costs and sales inducements $ 53,540 240,468 661,268 — 955,276 Total segment assets 610,570 1,200,347 8,586,871 260,007 10,657,795 Future policy benefits 535,710 913,339 7,676,085 — 9,125,134 Other policyholder liabilities 11,450 14,618 116,519 — 142,587 Condensed Income Statements: Premiums and contract charges $ 29,567 117,668 20,231 — 167,466 Net investment income 33,818 63,504 543,077 20,033 660,432 Other revenues 29 299 45 23,343 23,716 Total revenues 63,414 181,471 563,353 43,376 851,614 Life and other policy benefits 11,660 25,706 22,684 — 60,050 Amortization of deferred policy acquisition costs 6,738 18,946 82,549 — 108,233 Universal life and annuity contract interest 26,427 58,757 369,410 — 454,594 Other operating expenses 15,515 25,624 33,325 21,229 95,693 Federal income taxes (benefit) 980 16,720 17,660 7,062 42,422 Total expenses 61,320 145,753 525,628 28,291 760,992 Segment earnings (loss) $ 2,094 35,718 37,725 15,085 90,622 Reconciliations of segment information to the Company's consolidated financial statements are provided below. Years Ended December 31, 2015 2014 2013 (In thousands) Premiums and Other Revenue : Premiums and contract charges $ 175,307 170,115 167,466 Net investment income 379,114 505,430 660,432 Other revenues 28,166 21,630 23,716 Realized gains (losses) on investments 7,209 11,605 8,653 Total consolidated premiums and other revenue $ 589,796 708,780 860,267 Years Ended December 31, 2015 2014 2013 (In thousands) Federal Income Taxes : Total segment Federal income taxes $ 45,749 47,873 42,422 Taxes on realized gains (losses) on investments 2,523 4,060 3,028 Total taxes on consolidated net earnings $ 48,272 51,933 45,450 Years Ended December 31, 2015 2014 2013 (In thousands) Net Earnings : Total segment earnings $ 93,710 98,043 90,622 Realized gains (losses) on investments, net of taxes 4,686 7,545 5,625 Total consolidated net earnings $ 98,396 105,588 96,247 December 31, 2015 2014 2013 (In thousands) Assets : Total segment assets $ 11,452,630 11,187,522 10,657,795 Other unallocated assets 159,946 164,370 172,621 Total consolidated assets $ 11,612,576 11,351,892 10,830,416 (B) Geographic Information A significant portion of the Company's premiums and contract revenues are from countries other than the United States. Premiums and contract revenues detailed by country are provided below. Years Ended December 31, 2015 2014 2013 (In thousands) United States $ 66,750 65,078 64,267 Brazil 40,640 38,563 38,205 Venezuela 15,466 14,931 14,017 Taiwan 14,882 14,166 14,047 Peru 10,915 10,327 9,366 Argentina 9,007 9,324 9,102 Other foreign countries 36,776 36,775 37,203 Revenues, excluding reinsurance premiums 194,436 189,164 186,207 Reinsurance premiums (19,129 ) (19,049 ) (18,741 ) Total premiums and contract revenues $ 175,307 170,115 167,466 Premiums and contract revenues are attributed to countries based on the location of the policyholder. The Company has no significant assets, other than certain financial instruments, located in countries other than the United States. (C) Major Agency Relationships A portion exceeding 10% of the Company's annual annuity sales has been sold through one or more of its top independent marketing agencies in recent years. Business from two top agencies accounted for approximately 14% and 10% , respectively, of annuity sales in 2015 . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments | FAIR VALUES OF FINANCIAL INSTRUMENTS For financial instruments the FASB provides guidance which defines fair value, establishes a framework for measuring fair value under GAAP, and requires additional disclosures about fair value measurements. In compliance with this GAAP guidance, the Company has categorized its financial instruments, based on the priority of the inputs to the valuation technique, into a three level hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded at fair value on the consolidated balance sheets are categorized as follows: Level 1: Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. These generally provide the most reliable evidence and are used to measure fair value whenever available. The Company's Level 1 assets are equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets. Level 2: Fair value is based upon significant inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable for substantially the full term of the asset or liability through corroboration with observable market data as of the reporting date. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, model-derived valuations whose inputs are observable or whose significant value drivers are observable and other observable inputs. The Company’s Level 2 assets include fixed maturity debt securities (corporate and private bonds, government or agency securities, asset-backed and mortgage-backed securities), and preferred stock. Valuations are generally obtained from third party pricing services for identical or comparable assets or determined through use of valuation methodologies using observable market inputs. Level 3: Fair value is based on significant unobservable inputs which reflect the entity’s or third party pricing service’s assumptions about the assumptions market participants would use in pricing an asset or liability. The Company’s Level 3 assets are over-the-counter derivative contracts and the Company’s Level 3 liabilities consist of share-based compensation obligations and certain product-related embedded derivatives. Valuations are estimated based on non-binding broker prices or internally developed valuation models or methodologies, discounted cash flow models and other similar techniques. The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of the date indicated. December 31, 2015 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available for sale $ 2,861,222 — 2,861,222 — Equity securities, available for sale 18,361 17,980 381 — Derivatives, index options 38,409 — — 38,409 Total assets $ 2,917,992 17,980 2,861,603 38,409 Policyholder account balances (a) $ 58,359 — — 58,359 Other liabilities (b) 7,669 — — 7,669 Total liabilities $ 66,028 — — 66,028 December 31, 2014 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available for sale $ 2,711,377 — 2,711,377 — Equity securities, available for sale 17,303 16,862 441 — Derivatives, index options 114,287 — — 114,287 Total assets $ 2,842,967 16,862 2,711,818 114,287 Policyholder account balances (a) $ 133,236 — — 133,236 Other liabilities (b) 9,256 — — 9,256 Total liabilities $ 142,492 — — 142,492 (a) Represents the fair value of certain product-related embedded derivatives that were recorded at fair value. (b) Represents the liability for share-based compensation. The following table provides additional information about fair value measurements for which significant unobservable (Level 3) inputs were utilized to determine fair value. Year Ended December 31, 2015 Debt Securities, Available For Sale Equity Securities, Available For Sale Derivatives, Index Options Total Assets Other Liabilities (In thousands) Beginning balance, January 1, 2015 $ — — 114,287 114,287 142,492 Total realized and unrealized gains (losses): Included in net income — — (61,750 ) (61,750 ) (61,676 ) Included in other comprehensive income (loss) — — — — — Purchases, sales, issuances and settlements, net: Purchases — — 86,189 86,189 86,189 Sales — — — — — Issuances — — — — — Settlements — — (100,317 ) (100,317 ) (100,977 ) Transfers into (out of) Level 3 — — — — — Balance at end of period $ — — 38,409 38,409 66,028 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: Net investment income $ — — (47,780 ) (47,780 ) — Benefits and expenses — — — — (48,707 ) Total $ — — (47,780 ) (47,780 ) (48,707 ) Year Ended December 31, 2014 Debt Securities, Available For Sale Equity Securities, Available For Sale Derivatives, Index Options Total Assets Other Liabilities (In thousands) Beginning balance, January 1, 2014 $ — — 169,314 169,314 193,338 Total realized and unrealized gains (losses): Included in net income — — 68,616 68,616 73,851 Included in other comprehensive income (loss) — — — — — Purchases, sales, issuances and settlements, net: Purchases — — 73,937 73,937 73,937 Sales — — — — — Issuances — — — — — Settlements — — (197,580 ) (197,580 ) (198,634 ) Transfers into (out of) Level 3 — — — — — Balance at end of period $ — — 114,287 114,287 142,492 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: Net investment income $ — — 40,350 40,350 — Benefits and expenses — — — — 44,722 Total $ — — 40,350 40,350 44,722 The following tables show the quantitative information about the Company's level 3 assets and liabilities. December 31, 2015 Fair Value Valuation Technique Unobservable Input (In thousands) Derivatives, index options $ 38,409 Broker prices Implied volatility Inputs from broker proprietary models Total assets $ 38,409 Policyholder account balances $ 58,359 Deterministic cash flow model Projected option cost Other liabilities 7,669 Black Scholes Expected term Forfeiture assumptions Total liabilities $ 66,028 December 31, 2014 Fair Value Valuation Technique Unobservable Input (In thousands) Derivatives, index options $ 114,287 Broker prices Implied volatility Inputs from broker proprietary models Total assets $ 114,287 Policyholder account balances $ 133,236 Deterministic cash flow model Projected option cost Other liabilities $ 9,256 Black Scholes Expected term Forfeiture assumptions Total liabilities $ 142,492 Realized gains (losses) on Level 3 assets are reported in the consolidated statements of earnings as net investment gains (losses) with liabilities reported as expenses. Unrealized gains (losses) on available for sale debt and equity securities are reported as other comprehensive income (loss) within stockholders’ equity of the consolidated balance sheet. The fair value hierarchy classifications are reviewed each reporting period. Reclassification of certain financial assets and liabilities may result based on changes in the observability of valuation attributes. Reclassifications are reported as transfers into and out of Level 3 at the beginning fair value for the reporting period in which the changes occur. GAAP defines fair value, establishes a framework for measuring fair value and requires additional disclosures about fair value measurements. Fair value is based on an exit price, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The objective of a fair value measurement is to determine that price for each financial instrument at each measurement date. GAAP also establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a variety of factors including the type of instrument and the characteristics of instruments. Financial instruments with readily available active quoted prices or those for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. It is the Company’s policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measures. The following methods and assumptions were used in estimating the fair value of financial instruments and liabilities during the periods presented in the consolidated financial statements. Fixed maturity securities. Fair values for investments in debt securities available for sale are based on quoted market prices, where available. For securities not actively traded, fair values are estimated using values obtained from various independent pricing services with any adjustments based upon observable data. In the cases where prices are unavailable for these sources, values are estimated by discounting expected future cash flows using a current market rate applicable to the yield, credit quality, and maturity of the investments. Equity securities. Fair values for equity securities are based upon quoted market prices, where available. For equity securities that are not actively traded, estimated values are based on values of comparable issues or audited financial statements of the issuer. Cash and cash equivalents. The carrying amounts reported in the consolidated balance sheet for these instruments approximate their fair values due to the relatively short time between the purchase of the instrument and its expected repayment or maturity. Mortgage and other loans. The fair values of performing mortgage and other loans are estimated by discounting scheduled cash flows through the scheduled maturities of the loans, using interest rates currently being offered for similar loans to borrowers with similar credit ratings. Fair values for significant nonperforming loans are based on recent internal or external appraisals. If appraisals are not available, estimated cash flows are discounted using a rate commensurate with the risk associated with the estimated cash flows. Assumptions regarding credit risk, cash flows, and discount rates are judgmentally determined using available market information and specific borrower information. Policy Loans. Policy loans with fixed interest rates are classified within Level 3. The estimated fair values for these loans are determined using a discounted cash flow model applied to groups of similar policy loans determined by the nature of the underlying insurance liabilities. Cash flow estimates are developed by applying a weighted-average interest rate to the outstanding principal balance of the respective group of policy loans and an estimated average maturity. These cash flows are discounted using current risk-free interest rates with no adjustment for borrower credit risk as these loans are collateralized by the cash surrender value of the underlying insurance policy. Derivatives. Fair values for index (call) options are based on counterparty market prices. The counterparties use market standard valuation methodologies incorporating market inputs for volatility and risk free interest rates in arriving at a fair value for each option contract. Prices are monitored for reasonableness by the Company using analytical tools. There are no performance obligations related to the call options purchased to hedge the Company’s fixed-index life and annuity policy liabilities. Life interest in Libbie Shearn Moody Trust. The fair value of the life interest asset was determined based on assumptions as to future distributions from the Trust over the life expectancy of Mr. Robert L. Moody, Chairman of the Board of NWLGI. These estimated cash flows were discounted at a rate consistent with uncertainties relating to the amount and timing of future cash distributions subject to the maximum amount to be received by the Company from life insurance proceeds in the event of Mr. Moody's death. The carrying value or cost basis of the life interest asset is amortized ratably over the remaining expected life of Mr. Moody, updated for changes in expected mortality. Annuity and supplemental contracts. Fair values for the Company's insurance contracts other than annuity contracts are not required to be disclosed. This includes the Company's traditional and universal life products. Fair values for immediate annuities without mortality features are based on the discounted future estimated cash flows using current market interest rates for similar maturities. Fair values for deferred annuities, including fixed-index annuities, are determined using estimated projected future cash flows discounted at the rate that would be required to transfer the liability in an orderly transaction. The fair values of liabilities under all insurance contracts are taken into consideration in the Company's overall management of interest rate risk, which minimizes exposure to changing interest rates through the matching of investment maturities with amounts due under insurance and annuity contracts. The Company utilizes independent third-party pricing services to determine the majority of its fair values of investment securities. The independent pricing services provide quoted market prices when available or otherwise incorporate a variety of observable market data in their valuation techniques including reported trading prices, broker-dealer quotes, bids and offers, benchmark securities, benchmark yields, credit ratings, and other reference data. The Company reviews prices received from service providers for unusual fluctuations to ensure that the prices represent a reasonable estimate of fair value but generally accepts the price identified from the primary pricing service. When quoted market prices in active markets are unavailable, the Company determines fair values using various valuation techniques and models based on a range of observable market inputs including pricing models, quoted market price of publicly traded securities with similar duration and yield, time value, yield curve, prepayment speeds, default rates and discounted cash flow. In most cases, these estimates are determined based on independent third party valuation information, and the amounts are disclosed in Level 2 of the fair value hierarchy. Generally, the Company obtains a single price or quote per instrument from independent third parties to assist in establishing the fair value of these investments. Fair value measurements for investment securities where there exists limited or no observable data are calculated using the Company’s own estimates based on current interest rates, credit spreads, liquidity premium or discount, the economic and competitive environment, unique characteristics of the security and other pertinent factors. These estimates are derived a number of ways including, but not limited to, pricing provided by brokers where the price indicates reliability as to value, fair values of comparable securities incorporating a spread adjustment (for maturity differences, credit quality, liquidity, collateralization), discounted cash flow models and margin spreads, bond yield curves, and observable market prices and exchange transaction information not provided by external pricing services. The resulting prices may not be realized in an actual sale or immediate settlement and there may be inherent weaknesses in any calculation technique. In addition, changes in underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future values. The following table presents, by pricing source and fair value hierarchy level, the Company’s assets that are measured at fair value on a recurring basis: December 31, 2015 Total Level 1 Level 2 Level 3 (In thousands) Fixed maturities, available for sale: Priced by third-party vendors $ 2,861,222 — 2,861,222 — Priced internally — — — — Subtotal 2,861,222 — 2,861,222 — Equity securities, available for sale: Priced by third-party vendors 18,361 17,980 381 — Priced internally — — — — Subtotal 18,361 17,980 381 — Derivatives, index options: Priced by third-party vendors 38,409 — — 38,409 Priced internally — — — — Subtotal 38,409 — — 38,409 Total $ 2,917,992 17,980 2,861,603 38,409 Percent of total 100.0 % 0.6 % 98.1 % 1.3 % The carrying amounts and fair values of the Company's financial instruments are as follows: December 31, 2015 Fair Value Hierarchy Level Carrying Values Fair Values Level 1 Level 2 Level 3 (In thousands) ASSETS Investments in debt and equity securities: Securities held to maturity $ 7,173,967 7,335,436 — 7,335,436 — Securities available for sale 2,879,583 2,879,583 17,980 2,861,603 — Cash and cash equivalents 106,007 106,007 106,007 — — Mortgage loans 108,311 111,162 — — 111,162 Policy loans 61,957 108,550 — — 108,550 Other loans 2,779 2,957 — — 2,957 Derivatives, index options 38,409 38,409 — — 38,409 Life interest in Libbie Shearn Moody Trust 7,379 12,775 — — 12,775 LIABILITIES Deferred annuity contracts $ 7,640,951 7,288,108 — — 7,288,108 Immediate annuity and supplemental contracts 434,468 461,457 — — 461,457 December 31, 2014 Fair Value Hierarchy Level Carrying Values Fair Values Level 1 Level 2 Level 3 (In thousands) ASSETS Investments in debt and equity securities: Securities held to maturity $ 6,841,543 7,175,443 — 7,175,443 — Securities available for sale 2,728,680 2,728,680 16,862 2,711,818 — Cash and cash equivalents 277,078 277,078 277,078 — — Mortgage loans 149,503 156,548 — — 156,548 Policy loans 63,645 111,040 — — 111,040 Other loans 2,171 2,300 — — 2,300 Derivatives, index options 114,287 114,287 — — 114,287 Life interest in Libbie Shearn Moody Trust — 12,775 — — 12,775 LIABILITIES Deferred annuity contracts $ 7,546,504 7,178,535 — — 7,178,535 Immediate annuity and supplemental contracts 446,458 474,843 — — 474,843 Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument. Because no market exists for a portion of the Company's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
Derivative Investments
Derivative Investments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Investments | DERIVATIVE INVESTMENTS Fixed-index products provide traditional fixed annuities and universal life contracts with the option to have credited interest rates linked in part to an underlying equity index or a combination of equity indices. The equity return component of such policy contracts is identified separately and accounted for in future policy benefits as embedded derivatives on the consolidated balance sheet. The remaining portions of these policy contracts are considered the host contracts and are recorded separately as fixed annuity or universal life contracts. The host contracts are accounted for under debt instrument type accounting in which future policy benefits are recorded as discounted debt instruments that are accreted, using the effective yield method, to their minimum account values at their projected maturities or termination dates. The Company purchases over-the-counter index options, which are derivative financial instruments, to hedge the equity return component of its fixed-index annuity and life products. The index options act as hedges to match closely the returns on the underlying index or indices. The amounts which may be credited to policyholders are linked, in part, to the returns of the underlying index or indices. As a result, changes to policyholders' liabilities are substantially offset by changes in the value of the options. Cash is exchanged upon purchase of the index options and no principal or interest payments are made by either party during the option periods. Upon maturity or expiration of the options, cash may be paid to the Company depending on the performance of the underlying index or indices and terms of the contract. The Company does not elect hedge accounting relative to these derivative instruments. The index options are reported at fair value in the accompanying consolidated financial statements. The changes in the values of the index options and the changes in the policyholder liabilities are both reflected in the consolidated statements of earnings. Any changes relative to the embedded derivatives associated with policy contracts are reflected in contract interest in the consolidated statements of earnings. Any gains or losses from the sale or expiration of the options, as well as period-to-period changes in values, are reflected as net investment income in the consolidated statements of earnings. Although there is credit risk in the event of nonperformance by counterparties to the index options, the Company does not expect any of its counterparties to fail to meet their obligations, given their high credit ratings. In addition, credit support agreements are in place with all counterparties for option holdings in excess of specific limits, which may further reduce the Company's credit exposure. The tables below present the fair value of derivative instruments. December 31, 2015 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) (In thousands) Derivatives not designated as hedging instruments Equity index options Derivatives, Index Options $ 38,409 Fixed-index products Universal Life and Annuity Contracts $ 58,359 Total $ 38,409 $ 58,359 December 31, 2014 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) (In thousands) Derivatives not designated as hedging instruments Equity index options Derivatives, Index Options $ 114,287 Fixed-index products Universal Life and Annuity Contracts $ 133,236 Total $ 114,287 $ 133,236 The table below presents the effect of derivative instruments in the consolidated statements of earnings for the years ended December 31, 2015 and 2014 . Amount of Gain or (Loss) Recognized In Income on Derivatives Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized In Income on Derivatives 2015 2014 2013 (In thousands) Equity index options Net investment income $ (61,750 ) 68,616 225,899 Fixed-indexed products Universal life and annuity contract interest 60,749 (69,480 ) (229,404 ) $ (1,001 ) (864 ) (3,505 ) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Robert L. Moody, Jr. ("Mr. Moody, Jr.") is the son of Robert L. Moody, NWLGI's Chairman, the stepson of Ann M. Moody who serves as a director of NWLGI, and is the brother of Ross R. Moody, the Company's President and Interim Chief Executive Officer, and of Russell S. Moody and Frances A. Moody-Dahlberg who serve as directors of NWLGI. Frances A. Moody-Dahlberg is also an employee of National Western. Mr. Moody, Jr. wholly owns an insurance marketing organization that maintains agency contracts with National Western pursuant to which agency commissions are paid in accordance with the company's standard commission schedules. Mr. Moody, Jr. also maintains an independent agent contract with National Western for policies personally sold under which commissions are paid in accordance with standard commission schedules. In 2015 , commissions paid under these agency contracts aggregated approximately $336,844 . In his capacity as an insurance marketing organization with National Western, Mr. Moody, Jr. also received fees of $48,000 in 2015 under a marketing consultant agreement. Mr. Moody, Jr. further serves as the agent of record for several of National Western's benefit plans including the self-insured health plan for which Mr. Moody, Jr. provides utilization review services through a wholly-owned utilization review company. In 2015 , amounts paid to Mr. Moody, Jr. as commissions and service fees pertaining to these benefit plans approximated $79,784 . Mr. Moody, Jr. is an Advisory Director of a wholly owned subsidiary of National Western. As an Advisory Director, Mr. Moody, Jr. received director fees and other perquisites during 2015 of $56,609 . During 2015 , management fees totaling $793,574 were paid to Regent Management Services, Limited Partnership ("RMS") for services provided to downstream nursing home subsidiaries of NWLGI. RMS is 1% owned by general partner RCC Management Services, Inc. ("RCC"), and 99% owned by limited partner, Three R Trusts. RCC is 100% owned by the Three R Trusts. The Three R Trusts are four Texas trusts for the benefit of the children of Robert L. Moody (Robert L. Moody, Jr., Ross R. Moody, Russell S. Moody, and Frances A. Moody-Dahlberg). Charles D. Milos, Senior Vice President-Mortgage Loans and Real Estate for National Western, and a director of NWLGI, is a director of RCC. National Western holds an investment totaling approximately 9.5% of the issued and outstanding shares of Moody Bancshares, Inc. at December 31, 2015 . Moody Bancshares, Inc. owns 100% of the outstanding shares of Moody Bank Holding Company, Inc., which owns approximately 98% of the outstanding shares of The Moody National Bank of Galveston ("MNB"). National Western utilizes MNB for certain bank custodian services as well as for certain administrative services with respect to the company's defined benefit and contribution plans. During 2015 , fees totaling $718,022 were paid to MNB with respect to these services. National Western maintained a sublease of a portion of its home office space with Moody National Bank which expired April 30, 2015 and was not renewed. The sublease amount collected from MNB was $6,363 per month. Robert L. Moody, NWLGI’s Chairman, serves as Chairman of the Board of MNB. The ultimate controlling person of MNB is the Three R Trusts. During 2015 , the Company paid American National Insurance Company (“ANICO”) $411,519 in premiums for certain company sponsored benefit plans and $2,024,637 in reimbursements for claim costs for which ANICO provides third party administrative services. ANICO paid the Company $2,108,997 in premiums for its company sponsored benefit plans. The Company maintains an investment agreement with American National Registered Investment Advisory, Inc., a subsidiary of ANICO, under which $40,066 was paid for services. Robert L. Moody, the Company’s Chairman, is the former Chairman of ANICO. The Company executed a 2 year agreement in April, 2014 with ANICO for a disaster recovery site and incurred expenses of $18,000 during 2015 associated with this agreement. During 2015 , The Westcap Corporation, a wholly owned subsidiary of National Western, entered into a loan participation agreement with ANICO under which it agreed to fund $20.0 million in exchange for a 24.93% interest in a commercial mortgage. The mortgage investment had a balance of $20.0 million as of December 31, 2015 which is reflected in the consolidated balance sheet. |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | UNAUDITED QUARTERLY FINANCIAL DATA Quarterly results of operations for 2015 are summarized as follows: First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands except per share data) 2015: Revenues $ 147,890 155,218 106,104 180,583 Earnings (loss) $ 21,326 28,858 16,221 31,991 Basic earnings (loss) per share: Class A $ 6.03 8.16 4.59 9.05 Class B $ 3.02 4.08 2.29 4.52 Diluted earnings (loss) per share: Class A $ 6.03 8.16 4.59 9.04 Class B $ 3.02 4.08 2.29 4.52 Quarterly results of operations for 2014 are summarized as follows: First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands except per share data) 2014: Revenues $ 158,003 206,841 159,620 184,315 Earnings (loss) $ 19,826 29,183 28,466 28,113 Basic earnings (loss) per share: Class A $ 5.61 8.26 8.05 7.95 Class B $ 2.80 4.13 4.03 3.98 Diluted earnings (loss) per share: Class A $ 5.61 8.25 8.05 7.94 Class B $ 2.80 4.13 4.03 3.98 |
Schedule I - Summary of Investm
Schedule I - Summary of Investments Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2015 | |
Schedule I - Summary of Investments Other Than Investments in Related Parties [Abstract] | |
Schedule I - Summary of Investments Other Than Investment in Related Parties | Type of Investment (1) Cost Fair Value Balance Sheet Amount Fixed maturity bonds: Securities held to maturity: United States government and government agencies and authorities $ 16,946 17,538 16,946 States, municipalities, and political subdivisions 435,941 464,408 435,941 Public utilities 1,044,063 1,079,713 1,044,063 Corporate 4,160,628 4,202,635 4,160,628 Residential mortgage-backed 1,503,021 1,555,807 1,503,021 Asset-backed 13,368 15,335 13,368 Total securities held to maturity 7,173,967 7,335,436 7,173,967 Securities available for sale: States, municipalities, and political subdivisions 586 552 552 Foreign governments 9,947 10,355 10,355 Public utilities 129,980 134,559 134,559 Corporate 2,635,536 2,654,165 2,654,165 Residential mortgage-backed 36,463 39,566 39,566 Asset-backed 21,186 22,025 22,025 Total securities available for sale 2,833,698 2,861,222 2,861,222 Total fixed maturity bonds 10,007,665 10,196,658 10,035,189 Equity securities: Securities available for sale: Common stocks: Public utilities 809 1,288 1,288 Banks, trust and insurance companies 1,430 2,552 2,552 Corporate 3,361 5,598 5,598 Preferred stocks 8,116 8,923 8,923 Total equity securities 13,716 18,361 18,361 Derivatives, index options 38,409 38,409 Mortgage loans 108,311 108,311 Policy loans 61,957 61,957 Other long-term investments (2) 26,787 26,787 Total investments other than investments in related parties $ 10,256,845 10,289,014 Notes: (1) Bonds and mortgages are shown at amortized cost reduced by repayments and impairments due to other than temporary declines or allowances for possible losses. Real estate is stated at costs net of accumulated depreciation. Derivatives are shown at fair value. (2) There was no real estate acquired by foreclosure included in other long-term investments. See accompanying report of Independent Registered Public Accounting Firm. |
Schedule V - Valuation and Qual
Schedule V - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule V - Valuation and Qualifying Accounts | Description Balance at Beginning of Period (1) Charged to Costs and Expenses Reductions Transfers Balance at End of Period Valuation accounts deducted from applicable assets: Allowance for possible losses on mortgage loans: December 31, 2015 $ 650 — — — 650 December 31, 2014 $ 650 — — — 650 December 31, 2013 $ 650 — — — 650 Allowance for possible losses on real estate: December 31, 2015 $ 1,629 — — — 1,629 December 31, 2014 $ 1,735 — (106 ) — 1,629 December 31, 2013 $ 1,813 — (78 ) — 1,735 Notes: (1) Amounts were recorded to realized (gains) losses on investments. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation. On October 1, 2015, National Western Life Insurance Company ("National Western") completed its previously announced holding company reorganization pursuant to the Agreement and Plan of Merger, dated April 6, 2015, which was approved by the shareholders of National Western at its Annual Meeting of Shareholders held on June 19, 2015. As a result of the reorganization, National Western became a wholly owned subsidiary of National Western Life Group, Inc. ("NWLGI"), a Delaware Corporation, and NWLGI replaced National Western as the publicly held company. Consequently, all filings with the Securities and Exchange Corporation ("SEC") from October 2, 2015 and forward will be filed by NWLGI under CIK No. 0001635984. Prior to the reorganization, the accompanying consolidated financial statements included the accounts of National Western and its wholly owned subsidiaries: The Westcap Corporation, Regent Care San Marcos Holdings, LLC, NWL Investments, Inc., NWL Services, Inc., NWLSM, Inc., and NWL Financial, Inc. During the fourth quarter of 2015, subsequent to the reorganization, National Western transferred ownership of Regent Care San Marcos Holdings, LLC, NWL Investments, Inc., and NWL Services, Inc. to NWLGI via a dividend transaction resulting in those entities becoming wholly owned subsidiaries of NWLGI. For purposes of filing this Form 10-K for the years ended December 31, 2015, 2014, and 2013, the accompanying consolidated financial statements and notes thereto have been titled "National Western Life Group, Inc." to reflect the current name of the public registrant with the parenthetical notation "formerly National Western Life Insurance Company and Subsidiaries" to reflect the reporting entity for the previous periods covered herein. All significant intercorporate transactions and accounts have been eliminated in consolidation and references to the "Company" as contained herein refer to the consolidated entity. |
Basis of Presentation | Basis of Presentation. The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates in the accompanying consolidated financial statements include (1) liabilities for future policy benefits, (2) valuation of derivative instruments, (3) recoverability and amortization of deferred policy acquisition costs, (4) commitments and contingencies, (5) valuation allowances for deferred tax assets, (6) other-than-temporary impairment losses on debt securities, and (7) valuation allowances for mortgage loans and real estate. The table below shows the unrealized gains and losses on available-for-sale securities that were reclassified out of accumulated other comprehensive income for the years ended December 31, 2015 , 2014 and 2013 . Affected Line Item In the Consolidated Statements of Earnings Amount Reclassified from Accumulated Other Comprehensive Income Years Ended December 31, 2015 2014 2013 Other net investment gains (losses) $ 3,459 7,843 4,923 Net OTTI losses recognized in earnings (252 ) (150 ) (213 ) Earnings before Federal income taxes 3,207 7,693 4,710 Federal income taxes 1,122 2,693 1,649 Net earnings $ 2,085 5,000 3,061 The Company (National Western) also files financial statements with insurance regulatory authorities which are prepared on the basis of statutory accounting practices prescribed or permitted by the Colorado Division of Insurance which are significantly different from consolidated financial statements prepared in accordance with GAAP. These differences are described in detail in the statutory information section of this note. Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year presentation. |
Investments | Investments. Investments in debt securities the Company purchases with the intent to hold to maturity are classified as securities held to maturity. The Company has the ability to hold the securities until maturity, as it would be unlikely that forced sales of securities would be required, prior to maturity, to cover payments of liabilities. As a result, securities held to maturity are carried at amortized cost less declines in fair value that are deemed other-than-temporary. Investments in debt and equity securities that are not classified as securities held to maturity are reported as securities available for sale. Securities available for sale are reported in the accompanying consolidated financial statements at fair value. Valuation changes resulting from changes in the fair value of the securities are reflected as a component of stockholders' equity in accumulated other comprehensive income (loss). These unrealized gains or losses in stockholders' equity are reported net of taxes and adjustments to deferred policy acquisition costs. Transfers of securities between categories are recorded at fair value at the date of transfer. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to yield using the effective interest method. For mortgage-backed and asset-backed securities, the effective interest method is used based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The net investment in the securities is adjusted to the amount that would have existed had the new effective yield been applied at the time of acquisition. This adjustment is reflected in net investment income. Quarterly the Company reviews its investment portfolio for market value changes to identify changes caused by issuer credit deterioration, changes in market interest rates and changes in economic conditions. If this review indicates a decline in fair value that is other-than-temporary, the Company’s carrying amount in the investment is reduced to its estimated fair value. In accordance with GAAP guidance the estimated credit versus non-credit components are bifurcated. The credit component is taken through earnings. The non-credit component is reclassified as unrealized loss in other comprehensive income. The Company would not recognize impairment of securities due to changing of interest rates or market dislocations unless the Company had the intent to sell the securities prior to recovery or maturity. The Company considers a number of factors in determining whether the impairment is other-than-temporary. These include, but are not limited to: 1) actions taken by rating agencies, 2) default by the issuer, 3) the significance of the decline in fair value, 4) the intent and ability to hold the investment until recovery, 5) the time period during which the decline has occurred, 6) an economic analysis of the issuer’s industry, and 7) the financial strength, liquidity, and recoverability of the issuer. Management performs a security-by-security review each quarter in evaluating the need for any other-than-temporary impairments. Although no set formula is used in this process, the investment performance, collateral position, and continued viability of the issuer are significant measures considered. Realized gains and losses for securities available for sale and securities held to maturity are included in earnings and are derived using the specific identification method for determining the cost of securities sold or called. Decline in the fair value below cost that is deemed other-than-temporary is bifurcated in credit and non-credit declines. The noncredit related declines are reclassified as unrealized losses in accumulated other comprehensive income (loss). Credit losses are recorded in earnings and result in the establishment of a new cost basis for the security. The new discount or reduced premium amount is amortized over the remaining life of the impaired debt security prospectively based on the amount and timing of future estimated cash flows. Mortgage loans and other long-term investments are stated at cost, less unamortized discounts, deferred fees, and allowances for possible losses. Policy loans are stated at their aggregate unpaid balances. Real estate is stated at the lower of cost or fair value less estimated costs to sell. Impaired loans are those loans where it is probable that all amounts due according to contractual terms of the loan agreement will not be collected. The Company has identified these loans through its normal loan review procedures. Impaired loans include: 1) nonaccrual loans, 2) loans which are 90 days or more past due, unless they are well secured and are in the process of collection, and 3) other loans which management believes are impaired. Impaired loans are measured based on: 1) the present value of expected future cash flows discounted at the loan's effective interest rate, 2) the loan's observable market price, or 3) the fair value of the collateral if the loan is collateral dependent. Substantially all of the Company's impaired loans are measured at the fair value of the collateral. In limited cases, the Company may use other methods to determine the level of impairment of a loan if such loan is not collateral dependent. While the Company closely manages its investment portfolio, future changes in issuer facts and circumstances can result in impairments beyond those currently identified. |
Cash and Short-term Investment | Cash and Cash Equivalents. For purposes of the consolidated statements of cash flows, the Company considers all short-term investments with a maturity at the date of purchase of three months or less to be cash equivalents. |
Derivatives | Derivatives. Fixed-index products combine features associated with traditional fixed annuities and universal life contracts, with the option to have interest rates linked in part to an underlying equity index. The equity return component of such policy contracts is identified separately and accounted for in future policy benefits as embedded derivatives on the consolidated balance sheet. The remaining portions of these policy contracts are considered the host contracts and are recorded separately as fixed annuity or universal life contracts. The host contracts are accounted for under debt instrument type accounting. The host contracts are recorded as discounted debt instruments that are accreted, using the effective yield method, to their minimum account values at their projected maturities or termination dates. The Company purchases over-the-counter index options, which are derivative financial instruments, to hedge the equity return component of its index annuity and life products. The amounts which may be credited to policyholders are linked, in part, to the returns of the underlying index. The index options act as hedges to match closely the returns on the underlying index. Cash is exchanged upon purchase of the index options and no principal or interest payments are made by either party during the option periods. Upon maturity or expiration of the options, cash is paid to the Company based on the underlying index performance and terms of the contract. As a result, amounts credited to policyholders' account balances are substantially offset by changes in the value of the options. The Company does not elect hedge accounting relative to derivative instruments. The derivatives are reported at fair value in the accompanying consolidated financial statements. Changes in the values of the index options and changes in the policyholder liabilities are both reflected in the consolidated statement of earnings. Any gains or losses from the sale or expiration of the options, as well as period-to-period changes in values, are reflected as net investment income in the consolidated statement of earnings. Any changes relative to the embedded derivatives associated with policy contracts are reflected in contract interest in the consolidated statement of earnings. Although there is credit risk in the event of nonperformance by counterparties to the index options, the Company does not expect any counterparties to fail to meet their obligations, given their high credit ratings. In addition, credit support agreements are in place with all counterparties for option holdings in excess of specific limits, which may further reduce the Company's credit exposure. |
Insurance Revenue and Expenses | Insurance Revenues and Expenses. Premiums on traditional life insurance products are recognized as revenues as they become due from policyholders. Benefits and expenses are matched with premiums in arriving at profits by providing for policy benefits over the lives of the policies and by amortizing acquisition costs over the premium-paying periods of the policies. For universal life and annuity contracts, revenues consist of policy charges for the cost of insurance, policy administration, and surrender charges assessed during the period. Expenses for these policies include interest credited to policy account balances, benefit claims incurred in excess of policy account balances and amortization of deferred policy acquisition costs and deferred sales inducements. Under GAAP, commissions, sales inducements, and certain expenses related to policy issuance and underwriting, all of which vary with and are related to the production of new business, are deferred. For traditional products, these costs are amortized over the premium-paying period of the related policies in proportion to the ratio of the premium earned to the total premium revenue anticipated, using the same assumptions as to interest, mortality, and withdrawals as were used in calculating the liability for future policy benefits. For universal life and annuity contracts, these costs are amortized in relation to the present value of expected gross profits on these policies. The Company evaluates the recoverability of deferred policy acquisition and sales inducement costs on a quarterly basis. In this evaluation, the Company considers estimated future gross profits or future premiums, as applicable for the type of contract. The Company also considers expected mortality, interest earned and credited rates, persistency, and expenses. In accordance with GAAP guidance, the Company must also write off deferred acquisition costs and unearned revenue liabilities upon internal replacement of certain contracts as well as annuitizations of deferred annuities. |
Deferred Federal Income Tax | Deferred Federal Income Taxes. Federal income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance for deferred tax assets is provided if all or some portion of the deferred tax asset may not be realized. An increase or decrease in a valuation allowance that results from a change in circumstances that affects the realizability of the related deferred tax asset is included in income in the period the change occurs. |
Depreciation of Property, Equipment, and Leasehold Improvements | Depreciation of Property, Equipment, and Leasehold Improvements. Depreciation is based on the estimated useful lives of the assets and is calculated on the straight-line and accelerated methods. Leasehold improvements are amortized over the lesser of the economic useful life of the improvement or the term of the lease. |
Stock Compensation | Stock Compensation. The Company accounts for its share-based compensation for GAAP reporting using liability accounting, and measures compensation cost using the fair value method at each reporting date. For stock options, fair value is determined using an option pricing model that takes into account various information and assumptions including the Company's stock price, volatility, option price, vesting dates, exercise dates and projected option lapses. Under the intrinsic value based method, compensation cost is the excess, if any, of the quoted market price of the stock at grant date or other measurement date over the amount an employee must pay to acquire the stock. |
Significant Accounting Policies
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of reclassification from AOCI | The table below shows the unrealized gains and losses on available-for-sale securities that were reclassified out of accumulated other comprehensive income for the years ended December 31, 2015 , 2014 and 2013 . Affected Line Item In the Consolidated Statements of Earnings Amount Reclassified from Accumulated Other Comprehensive Income Years Ended December 31, 2015 2014 2013 Other net investment gains (losses) $ 3,459 7,843 4,923 Net OTTI losses recognized in earnings (252 ) (150 ) (213 ) Earnings before Federal income taxes 3,207 7,693 4,710 Federal income taxes 1,122 2,693 1,649 Net earnings $ 2,085 5,000 3,061 |
Deferred Policy Acquisition Costs | A summary of information relative to deferred policy acquisition costs (DPAC) is provided in the table below. Years Ended December 31, 2015 2014 2013 (In thousands) Deferred policy acquisition costs, beginning of year $ 802,919 785,706 705,397 Policy acquisition costs deferred: Agents' commissions 124,498 134,262 127,161 Other 6,894 7,606 6,821 Total costs deferred 131,392 141,868 133,982 Amortization of deferred policy acquisition costs (120,333 ) (115,154 ) (108,233 ) Adjustments for unrealized (gains) losses on investment securities 39,473 (9,501 ) 54,560 Deferred policy acquisition costs, end of year $ 853,451 802,919 785,706 |
Summary of Direct Premiums and Deposits Collected | A summary of direct premiums and deposits collected is provided below. Years Ended December 31, 2015 2014 2013 (In thousands) Annuity deposits $ 775,010 833,273 813,868 Universal life insurance deposits 277,229 280,980 296,286 Traditional life and other premiums 23,162 22,651 22,164 Totals $ 1,075,401 1,136,904 1,132,318 |
Schedule of Movement in Deferred Sales Inducement | A summary of information relative to deferred sales inducements is provided in the table below. Years Ended December 31, 2015 2014 2013 (In thousands) Deferred sales inducements, beginning of year $ 159,766 169,570 152,844 Sales inducement costs deferred 17,704 18,355 26,159 Amortization of sales inducements (28,559 ) (26,357 ) (25,357 ) Adjustments for unrealized (gains) losses on investment securities 10,255 (1,802 ) 15,924 Deferred sales inducements, end of year $ 159,166 159,766 169,570 |
Statutory Accounting Practices Disclosure | The table below provides the Company’s net gain from operations, net income, unassigned surplus (retained earnings) and capital and surplus (stockholders' equity), on the statutory basis used to report to regulatory authorities for the years ended December 31. 2015 2014 2013 (In thousands) Net gain from operations before Federal and foreign income taxes $ 8,139 95,892 170,796 Net income $ 7,060 77,220 106,159 Unassigned surplus $ 1,127,140 1,141,579 1,082,519 Capital and surplus $ 1,171,203 1,185,643 1,126,232 The following assets were on deposit with state and other regulatory authorities as required by law, at the end of each year. December 31, 2015 2014 (In thousands) Debt securities held to maturity $ 15,281 15,279 Debt securities available for sale 810 814 Short-term investments 475 475 Totals $ 16,566 16,568 |
Deposits with Regulatory Auth29
Deposits with Regulatory Authorities Deposit with Regulatory Authorities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposit with Regulatory Authorities [Abstract] | |
Statutory Accounting Practices Disclosure | The table below provides the Company’s net gain from operations, net income, unassigned surplus (retained earnings) and capital and surplus (stockholders' equity), on the statutory basis used to report to regulatory authorities for the years ended December 31. 2015 2014 2013 (In thousands) Net gain from operations before Federal and foreign income taxes $ 8,139 95,892 170,796 Net income $ 7,060 77,220 106,159 Unassigned surplus $ 1,127,140 1,141,579 1,082,519 Capital and surplus $ 1,171,203 1,185,643 1,126,232 The following assets were on deposit with state and other regulatory authorities as required by law, at the end of each year. December 31, 2015 2014 (In thousands) Debt securities held to maturity $ 15,281 15,279 Debt securities available for sale 810 814 Short-term investments 475 475 Totals $ 16,566 16,568 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Income | The major components of net investment income are as follows: Years Ended December 31, 2015 2014 2013 (In thousands) Gross investment income: Debt and equity securities $ 416,633 410,809 410,790 Mortgage loans 10,274 9,847 9,256 Policy loans 3,938 4,252 4,503 Derivative gains (losses) (61,750 ) 68,616 225,899 Money market investments 197 401 252 Other investment income 10,939 12,591 10,759 Total investment income 380,231 506,516 661,459 Investment expenses 1,117 1,086 1,027 Net investment income $ 379,114 505,430 660,432 |
Mortgage Loans by Geographic Location | The diversification of the portfolio by geographic region, property type, and loan-to-value ratio was as follows: December 31, 2015 December 31, 2014 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Geographic Region: West South Central $ 58,002 53.2 $ 97,918 65.2 East North Central 18,477 17.0 10,714 7.1 New England 11,830 10.9 12,155 8.1 Pacific 10,101 9.3 10,282 6.9 East South Central 5,818 5.3 14,137 9.4 South Atlantic 3,047 2.8 — — Mountain 1,686 1.5 3,050 2.0 Middle Atlantic — — 1,897 1.3 Gross balance 108,961 100.0 150,153 100.0 Allowance for possible losses (650 ) (0.6 ) (650 ) (0.4 ) Totals $ 108,311 99.4 $ 149,503 99.6 |
Schedule of Mortgage Loans by Property Type | December 31, 2015 December 31, 2014 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Property Type: Retail $ 66,237 60.8 $ 130,544 86.9 Office 22,941 21.0 893 0.6 Land/Lots 4,445 4.1 3,333 2.2 Hotel/Motel 1,513 1.4 1,600 1.1 Apartments — — 7,333 4.9 All other 13,825 12.7 6,450 4.3 Gross balance 108,961 100.0 150,153 100.0 Allowance for possible losses (650 ) (0.6 ) (650 ) (0.4 ) Totals $ 108,311 99.4 $ 149,503 99.6 |
Schedule of Mortgage Loans by Loan-to-Value Ratio | December 31, 2015 December 31, 2014 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Loan-to-Value Ratio (1): Less than 50% $ 64,986 59.7 $ 52,564 35.0 50% to 60% 9,714 8.9 50,553 33.7 60% to 70% 10,134 9.3 14,567 9.7 70% to 80% 4,843 4.4 12,656 8.4 80% to 90% 19,284 17.7 5,399 3.6 Greater than 90% — — 14,414 9.6 Gross balance 108,961 100.0 150,153 100.0 Allowance for possible losses (650 ) (0.6 ) (650 ) (0.4 ) Totals $ 108,311 99.4 $ 149,503 99.6 (1) Loan-to-Value Ratio using the most recent appraised value. Appraisals are required at the time of funding and may be updated if a material change occurs from the original loan agreement. |
Schedule of Allowance for Mortgage Loans | The following table represents the mortgage loan allowance for the years ended December 31, 2015 and 2014 : 2015 2014 (In thousands) Balance, beginning of period $ 650 650 Provision — — Releases — — Balance, end of period $ 650 650 |
Investments Classified by Contractual Maturity Date | The contractual maturities of mortgage loan principal balances at December 31, 2015 and 2014 were as follows: December 31, 2015 December 31, 2014 Amount % Amount % (In thousands) (In thousands) Principal Balance by Contractual Maturity: Due in one year or less $ 7,950 7.3 $ 16,390 10.9 Due after one year through five years 24,236 22.1 83,965 55.7 Due after five years through ten years 50,431 46.1 30,591 20.3 Due after ten years through fifteen years 7,500 6.9 — — Due after fifteen years 19,284 17.6 19,813 13.1 Totals $ 109,401 100.0 $ 150,759 100.0 |
Schedule of Held-to-Maturity Securities | The table below presents amortized costs and fair values of securities held to maturity at December 31, 2014 . Securities Held to Maturity Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: U.S. agencies $ 10,061 705 — 10,766 U.S. Treasury 1,920 409 — 2,329 States and political subdivisions 432,186 31,417 (336 ) 463,267 Public utilities 978,847 67,836 (757 ) 1,045,926 Corporate 3,754,222 183,650 (18,591 ) 3,919,281 Residential mortgage-backed 1,640,582 68,726 (4,164 ) 1,705,144 Home equity 18,886 4,734 (57 ) 23,563 Manufactured housing 4,839 328 — 5,167 Totals $ 6,841,543 357,805 (23,905 ) 7,175,443 The table below presents amortized costs and fair values of securities held to maturity at December 31, 2015 . Securities Held to Maturity Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: U.S. agencies $ 15,019 275 — 15,294 U.S. Treasury 1,927 317 — 2,244 States and political subdivisions 435,941 29,129 (662 ) 464,408 Public utilities 1,044,063 42,271 (6,621 ) 1,079,713 Corporate 4,160,628 114,920 (72,913 ) 4,202,635 Residential mortgage-backed 1,503,021 59,013 (6,227 ) 1,555,807 Home equity 11,047 1,701 — 12,748 Manufactured housing 2,321 266 — 2,587 Totals $ 7,173,967 247,892 (86,423 ) 7,335,436 |
Schedule of Available-for-Sale Securities | The table below presents amortized costs and fair values of securities available for sale at December 31, 2015 . Securities Available for Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: States and political subdivisions $ 586 — (34 ) 552 Foreign governments 9,947 408 — 10,355 Public utilities 129,980 5,354 (775 ) 134,559 Corporate 2,635,536 73,132 (54,503 ) 2,654,165 Residential mortgage-backed 36,463 3,103 — 39,566 Home equity 20,123 825 (12 ) 20,936 Manufactured housing 1,063 26 — 1,089 2,833,698 82,848 (55,324 ) 2,861,222 Equity securities 13,716 4,797 (152 ) 18,361 Totals $ 2,847,414 87,645 (55,476 ) 2,879,583 The table below presents amortized costs and fair values of securities available for sale at December 31, 2014 . Securities Available for Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: States and political subdivisions $ 589 — (36 ) 553 Foreign governments 9,939 386 — 10,325 Public utilities 169,179 10,163 (126 ) 179,216 Corporate 2,334,700 128,280 (8,961 ) 2,454,019 Residential mortgage-backed 48,674 4,116 — 52,790 Home equity 11,702 225 (9 ) 11,918 Manufactured housing 2,492 64 — 2,556 2,577,275 143,234 (9,132 ) 2,711,377 Equity securities 12,799 4,849 (345 ) 17,303 Totals $ 2,590,074 148,083 (9,477 ) 2,728,680 |
Schedule of Gross Unrealized Losses and Fair Values of Held-to-Maturity Investments, Continuous Unrealized Loss Position | The following table shows the gross unrealized losses and fair values of the Company's held to maturity investments by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2014 . Held to Maturity Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Debt securities: State and political subdivisions $ — — 23,076 (336 ) 23,076 (336 ) Public utilities 7,078 (13 ) 48,198 (744 ) 55,276 (757 ) Corporate 156,839 (2,997 ) 698,316 (15,594 ) 855,155 (18,591 ) Residential mortgage-backed 17,698 (240 ) 181,694 (3,924 ) 199,392 (4,164 ) Home equity 2,206 (57 ) — — 2,206 (57 ) Total temporarily impaired securities $ 183,821 (3,307 ) 951,284 (20,598 ) 1,135,105 (23,905 ) The following table shows the gross unrealized losses and fair values of the Company's held to maturity investments by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2015 . Held to Maturity Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Debt securities: State and political subdivisions $ 16,763 (387 ) 8,723 (275 ) 25,486 (662 ) Public utilities 298,962 (5,953 ) 17,840 (668 ) 316,802 (6,621 ) Corporate 1,522,544 (54,295 ) 323,567 (18,618 ) 1,846,111 (72,913 ) Residential mortgage-backed 148,712 (2,726 ) 95,443 (3,501 ) 244,155 (6,227 ) Home equity — — — — — — Total temporarily impaired securities $ 1,986,981 (63,361 ) 445,573 (23,062 ) 2,432,554 (86,423 ) |
Schedule of Gross Unrealized Losses and Fair Values of Available-for-Sale Investments, Continuous Unrealized Loss Position | The following table shows the gross unrealized losses and fair values of the Company's available for sale investments by investment category, and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2014 . Available For Sale Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Debt securities: State and political subdivisions $ — — 553 (36 ) 553 (36 ) Public utilities — — 14,827 (126 ) 14,827 (126 ) Corporate 100,373 (2,990 ) 187,699 (5,971 ) 288,072 (8,961 ) Residential mortgage-backed — — — — — — Home equity — — 4,826 (9 ) 4,826 (9 ) 100,373 (2,990 ) 207,905 (6,142 ) 308,278 (9,132 ) Equity securities 305 (52 ) 3,801 (293 ) 4,106 (345 ) Total temporarily impaired securities $ 100,678 (3,042 ) 211,706 (6,435 ) 312,384 (9,477 ) The following table shows the gross unrealized losses and fair values of the Company's available for sale investments by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2015 . Available For Sale Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Debt securities: State and political subdivisions $ — — 552 (34 ) 552 (34 ) Public utilities 42,093 (775 ) — — 42,093 (775 ) Corporate 843,679 (32,500 ) 151,319 (22,003 ) 994,998 (54,503 ) Home equity — — 4,823 (12 ) 4,823 (12 ) 885,772 (33,275 ) 156,694 (22,049 ) 1,042,466 (55,324 ) Equity securities 649 (124 ) 102 (28 ) 751 (152 ) Total temporarily impaired securities $ 886,421 (33,399 ) 156,796 (22,077 ) 1,043,217 (55,476 ) |
Schedule of Amortized Cost and Fair Value of Investments In Debt Securities | The amortized cost and fair value of investments in debt securities at December 31, 2015 , by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Debt Securities Available for Sale Debt Securities Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) Due in 1 year or less $ 131,110 132,759 152,369 155,910 Due after 1 year through 5 years 830,945 878,847 1,534,855 1,641,932 Due after 5 years through 10 years 1,774,539 1,749,470 3,663,415 3,650,811 Due after 10 years 60,641 60,580 320,307 330,976 2,797,235 2,821,656 5,670,946 5,779,629 Mortgage and asset-backed securities 36,463 39,566 1,503,021 1,555,807 Total $ 2,833,698 2,861,222 7,173,967 7,335,436 |
Realized Investment Gains (Losses), Excluding Impairment Losses | The table below details the nature of realized gains and losses, excluding impairments, during the year. Years Ended December 31, 2015 2014 2013 (In thousands) Available for sale debt securities: Realized gains on disposal $ 3,378 7,795 4,418 Realized losses on disposal (74 ) (22 ) (6 ) Held to maturity debt securities: Realized gains on redemption 4,027 3,453 3,845 Realized losses on redemption (25 ) (17 ) (72 ) Equity securities realized gains 155 69 511 Real estate — 955 262 Mortgage loans — — — Other — (478 ) — Totals $ 7,461 11,755 8,958 |
Net Impairment Losses Recognized in Earnings | The table below presents net impairment losses recognized in earnings for the periods indicated. Years Ended 2015 2014 2013 (In thousands) Total other-than-temporary impairment recoveries (losses) on debt securities $ 3,053 125 909 Portion recognized in comprehensive income (3,053 ) (132 ) (1,151 ) Net impairment losses on debt securities recognized in earnings — (7 ) (242 ) Equity securities impairments (252 ) (143 ) (63 ) Totals $ (252 ) (150 ) (305 ) The table below presents a roll forward of credit losses on securities for which the Company also recorded non-credit other-than-temporary impairments in other comprehensive loss. Year Ended Year Ended December 31, 2015 December 31, 2014 (In thousands) Beginning balance, cumulative credit losses related to other-than-temporary impairments $ 2,298 2,472 Reductions for securities disposed during current period (20 ) (181 ) Additions for OTTI where credit losses have been previously recognized — 7 Ending balance, cumulative credit losses related to other-than-temporary impairments $ 2,278 2,298 |
Unrealized Gain (Loss) on Investments | Net unrealized gains (losses) on investment securities included in stockholders' equity at December 31, 2015 and 2014 , are as follows: December 31, 2015 2014 (In thousands) Gross unrealized gains $ 87,493 157,304 Gross unrealized losses (56,064 ) (12,926 ) Adjustments for: Deferred policy acquisition costs and sales inducements (12,804 ) (62,856 ) Deferred Federal income tax expense (6,519 ) (28,556 ) 12,106 52,966 Net unrealized gains related to securities transferred to held to maturity — — Net unrealized gains on investment securities $ 12,106 52,966 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Total Federal income taxes were allocated as follows: Years Ended December 31, 2015 2014 2013 (In thousands) Taxes (benefits) on earnings from continuing operations: Current $ 8,279 29,395 71,709 Deferred 39,993 22,538 (26,259 ) Taxes on earnings 48,272 51,933 45,450 Taxes (benefits) on components of stockholders' equity: Net unrealized gains and losses on securities available for sale (22,014 ) 4,072 (24,201 ) Foreign currency translation adjustments 75 (358 ) (398 ) Change in benefit plan liability (397 ) (1,777 ) 3,005 Total Federal income taxes (benefit) $ 25,936 53,870 23,856 |
Schedule of Income Tax Reconciliation | The reasons for the differences and the corresponding tax effects are as follows: Years Ended December 31, 2015 2014 2013 (In thousands) Income tax expense at statutory rate of 35% $ 51,334 55,133 49,594 Dividend received deduction (1,194 ) (1,076 ) (1,140 ) Tax exempt interest (2,195 ) (2,155 ) (2,065 ) Tax adjustment on foreign currency 618 (358 ) (214 ) Adjustments pertaining to prior tax years (296 ) 1 (273 ) Nondeductible insurance 160 160 160 Nondeductible expenses 261 277 121 Other, net (416 ) (49 ) (733 ) Taxes on earnings from continuing operations $ 48,272 51,933 45,450 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014 are presented below. December 31, 2015 2014 (In thousands) Deferred tax assets: Future policy benefits, excess of financial accounting liabilities over tax liabilities $ 251,701 292,262 Investment securities write-downs for financial accounting purposes 3,493 6,246 Benefit plan liabilities 12,397 11,333 Accrued operating expenses recorded for financial accounting purposes not currently tax deductible 4,859 5,588 Foreign currency translation adjustments 5,098 4,318 Accrued and unearned investment income recognized for tax purposes and deferred for financial accounting purposes 334 390 Other 5 6 Total gross deferred tax assets 277,887 320,143 Deferred tax liabilities: Deferred policy acquisition and sales inducement costs, principally expensed for tax purposes (309,476 ) (311,680 ) Debt securities, principally due to deferred market discount for tax (9,182 ) (8,477 ) Real estate, principally due to adjustments for financial accounting purposes (1,025 ) (1,023 ) Net unrealized gains on securities available for sale (6,519 ) (25,185 ) Fixed assets, due to different depreciation bases (492 ) (757 ) Other (526 ) (4,696 ) Total gross deferred tax liabilities (327,220 ) (351,818 ) Net deferred tax liabilities $ (49,333 ) (31,675 ) |
Pension and Other Postretirem32
Pension and Other Postretirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Components of Periodic Benefit Cost | Components of Net Periodic Benefit Cost Years Ended December 31, 2015 2014 2013 (In thousands) Components of net periodic benefit costs: Interest cost $ 983 958 873 Service cost 205 168 190 Expected return on plan assets (1,320 ) (1,278 ) (1,134 ) Amortization of prior service cost 3 4 4 Amortization of net loss 784 422 812 Net periodic benefit cost 655 274 745 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net loss (gain) 3,806 1,888 Amortization of prior service cost (3 ) (4 ) Amortization of net loss (gain) (784 ) (422 ) Total recognized in other comprehensive income 3,019 1,462 Total recognized in net periodic benefit cost and other comprehensive income $ 3,674 1,736 |
Schedule of Allocation of Plan Assets | The following table sets forth the Company’s pension plan assets within the fair value hierarchy as of December 31, 2015 . December 31, 2015 Total Level 1 Level 2 Level 3 (In thousands) Cash $ 778 778 — — Equity securities Domestic 10,684 10,684 — — International 382 382 — — Debt securities U.S. government agencies — — — — Corporate bonds 6,271 — 6,271 — Total $ 18,115 11,844 6,271 — |
Pension Allocation by Type of Fund and Target Allocation | The plan’s weighted-average asset allocations by asset category have been as follows: December 31, 2015 2014 2013 Asset Category: Equity securities 61% 64% 70% Debt securities 35% 32% 29% Cash and cash equivalents 4% 4% 1% Total 100% 100% 100% |
Schedule of Acceptable Ranges for Each Asset as per Investment Policy Statement | The investment policy statement sets forth the following acceptable ranges for each asset's class. Acceptable Range Asset Category: Equity securities 55-70% Debt securities 30-40% Cash and cash equivalents 0-15% |
Schedule of Assumptions Used | Assumptions December 31, 2015 2014 Weighted-average assumptions used to determine benefit obligations: Discount rate 4.00 % 3.75 % Rate of compensation increase n/a n/a December 31, 2015 2014 2013 Weighted-average assumptions used to determine net periodic benefit cost: Discount rate 3.75 % 4.60 % 3.75 % Expected long-term return on plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase n/a n/a n/a |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2016 $ 1,398 2017 1,493 2018 1,472 2019 1,464 2020 1,463 2021-2025 7,079 |
Defined Benefit Pension Plans [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | A detail of plan disclosures is provided below. Obligations and Funded Status December 31, 2015 2014 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 23,328 21,187 Service cost 205 168 Interest cost 983 958 Actuarial gain (loss) 2,358 2,357 Benefits paid (1,404 ) (1,342 ) Projected benefit obligations at end of year 25,470 23,328 Changes in plan assets: Fair value of plan assets at beginning of year 19,646 18,908 Actual return on plan assets (127 ) 1,747 Contributions — 333 Benefits paid (1,404 ) (1,342 ) Fair value of plan assets at end of year 18,115 19,646 Funded status at end of year $ (7,355 ) (3,682 ) |
Schedule of Amounts Recognized in Consolidated Financial Statements and in Other Comprehensive Income | December 31, 2015 2014 (In thousands) Amounts recognized in the Company's consolidated financial statements: Assets $ — — Liabilities (7,355 ) (3,682 ) Net amount recognized $ (7,355 ) (3,682 ) Amounts recognized in accumulated other comprehensive income: Net loss $ 11,039 8,017 Prior service cost — 3 Net amount recognized $ 11,039 8,020 |
Chairman and President Non-Qualified Defined Benefit Plans [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | Obligations and Funded Status December 31, 2015 2014 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 24,145 19,870 Service cost 256 294 Interest cost 876 1,003 Actuarial (gain) loss (560 ) 4,960 Benefits paid (1,982 ) (1,982 ) Projected benefit obligations at end of year 22,735 24,145 Change in plan assets: Fair value of plan assets at beginning of year — — Contributions 1,982 1,982 Benefits paid (1,982 ) (1,982 ) Fair value of plan assets at end of year — — Funded status at end of year $ (22,735 ) (24,145 ) |
Schedule of Amounts Recognized in Consolidated Financial Statements and in Other Comprehensive Income | December 31, 2015 2014 (In thousands) Amounts recognized in the Company's consolidated financial statements: Assets $ — — Liabilities (22,735 ) (24,145 ) Net amount recognized $ (22,735 ) (24,145 ) Amounts recognized in accumulated other comprehensive income: Net loss $ 9,885 11,959 Prior service cost 700 759 Net amount recognized $ 10,585 12,718 |
Schedule of Components of Periodic Benefit Cost | Components of Net Periodic Benefit Cost Years Ended December 31, 2015 2014 2013 (In thousands) Components of net periodic benefit cost: Service cost $ 256 294 177 Interest cost 876 1,003 801 Amortization of prior service cost 59 59 59 Amortization of net loss 1,514 1,294 1,173 Net periodic benefit cost 2,705 2,650 2,210 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net (gain) loss (560 ) 4,960 Amortization of prior service cost (59 ) (59 ) Amortization of net (gain) loss (1,514 ) (1,294 ) Total recognized in other comprehensive income (2,133 ) 3,607 Total recognized in net periodic benefit cost and other comprehensive income $ 572 6,257 |
Schedule of Assumptions Used | December 31, 2015 2014 Weighted-average assumptions used to determine benefit obligations: Discount rate 4.00 % 3.75 % Rate of compensation increase 4.00 % 4.00 % December 31, 2015 2014 2013 Weighted-average assumptions used to determine net periodic benefit costs: Discount rate 3.75 % 4.60 % 3.75 % Expected long-term return on plan assets n/a n/a n/a Rate of compensation increase 4.00 % 4.00 % 4.00 % |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2016 $ 1,982 2017 1,982 2018 1,982 2019 1,982 2020 1,982 2021-2025 9,908 |
Defined Benefit Postretirement Healthcare Plans [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | he Company uses a December 31 measurement date for the plan. A detail of plan disclosures related to the plan is provided below: Obligations and Funded Status December 31, 2015 2014 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 2,890 2,725 Interest cost 130 111 Actuarial loss (gain) 412 107 Benefits paid (125 ) (53 ) Projected benefit obligations at end of year 3,307 2,890 Changes in plan assets: Fair value of plan assets at beginning of year — — Contributions 125 53 Benefits paid (125 ) (53 ) Fair value of plan assets at end of year — — Funded status at end of year $ (3,307 ) (2,890 ) |
Schedule of Amounts Recognized in Consolidated Financial Statements and in Other Comprehensive Income | December 31, 2015 2014 (In thousands) Amounts recognized in the Company's consolidated financial statements: Assets $ — — Liabilities (3,307 ) (2,890 ) Net amount recognized $ (3,307 ) (2,890 ) Amounts recognized in accumulated other comprehensive income: Net loss $ 480 128 Prior service cost 361 464 Net amount recognized $ 841 592 |
Schedule of Components of Periodic Benefit Cost | Components of Net Periodic Benefit Cost Years Ended December 31, 2015 2014 2013 (In thousands) Components of net periodic benefit cost: Interest cost $ 130 111 117 Amortization of prior service cost 103 103 103 Amortization of net loss 61 (4 ) 33 Net periodic benefit cost 294 210 253 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net (gain) loss 412 107 Amortization of prior service cost (103 ) (103 ) Amortization of net (gain) loss (61 ) 4 Total recognized in other comprehensive income 248 8 Total recognized in net periodic benefit cost and other comprehensive income $ 542 218 |
Schedule of Assumptions Used | Assumptions December 31, 2015 2014 Weighted-average assumptions used to determine benefit obligations: Discount rate 4.00 % 3.75 % Expected long-term return on plan assets n/a n/a For measurement purposes, an 8% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2016 and future years. Assumed health care trend rates have a significant effect on the amounts reported for the health care plans. A one percentage point change in assumed health care cost trend rates would have the following effects for the years ended December 31: December 31, 2015 December 31, 2014 1% Point Increase 1% Point Decrease 1% Point Increase 1% Point Decrease (In thousands) Effect on total of service and interest cost components $ 35 (26 ) 22 (17 ) Effect on postretirement benefit obligation $ 913 (679 ) 595 (466 ) |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2016 $ 59 2017 63 2018 67 2019 72 2020 76 2021-2025 452 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The Company's future annual lease obligations as of December 31, 2015 are in the table below (in thousands). 2016 $ 96 2017 and thereafter 192 Total $ 288 |
Stockholders Equity (Tables)
Stockholders Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Changes in Shares of Common Stock | Details of changes in shares of common stock outstanding are provided below. Years Ended December 31, 2015 2014 2013 (In thousands) Common stock shares outstanding: Shares outstanding at beginning of year 3,636 3,635 3,635 Shares exercised under stock option plan — 1 — Shares outstanding at end of year 3,636 3,636 3,635 |
Summary of Shares Available for Grant and Stock Option Activity | A summary of shares available for grant and stock option activity is detailed below. Options Outstanding Shares Available For Grant Shares Weighted-Average Exercise Price Stock Options: Balance at January 1, 2015 291,000 29,768 $ 242.48 Exercised — (1,000 ) $ 208.05 Forfeited — (1,000 ) $ 255.13 Expired — — $ — Stock options granted — — $ — Balance at December 31, 2015 291,000 27,768 $ 243.26 |
Schedule of Stock Appreciation Rights Activity | Stock Appreciation Rights Outstanding Awards Weighted-Average Exercise Price Balance at January 1, 2015 92,186 $ 157.71 Exercised (5,925 ) $ 142.55 Forfeited — $ — Granted — $ — Balance at December 31, 2015 86,261 $ 158.75 |
Summary of Information About Stock Options and SARs Outstanding | The following table summarizes information about stock options and SARs outstanding at December 31, 2015 . Options and SARs Outstanding Number Outstanding Weighted-Average Remaining Contractual Life Number Exercisable Exercise prices: 255.13 (options) 20,768 2.3 years 20,768 208.05 (options) 7,000 2.5 years 7,000 114.64 (SARs) 23,443 3.1 years 19,264 132.56 (SARs) 28,318 6.0 years 13,608 210.22 (SARs) 34,500 8.0 years 3,600 Totals 114,029 64,240 Aggregate intrinsic value (in thousands) $ 8,346 $ 4,727 |
Summary of Assumptions Employed Using Black-Scholes Option Pricing Model | In estimating the fair value of the options/SARs outstanding at December 31, the Company employed the Black-Scholes option pricing model with assumptions as detailed below. December 31, 2015 December 31, 2014 Expected term of options 2.3 to 8.0 years 3.3 to 9.0 years Expected volatility: Range 21.11% to 37.77% 19.67% to 37.75% Weighted-average 23.89 % 22.91 % Expected dividend yield 0.14 % 0.13 % Risk-free rate: Range 0.22% to 1.67% 0.13% to 1.62% Weighted-average 0.63 % 0.56 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table sets forth the computations of basic and diluted earnings per share. Years Ended December 31, 2015 2014 2013 Class A Class B Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net income $ 98,396 105,588 96,247 Dividends – Class A shares (1,237 ) (1,237 ) (1,237 ) Dividends – Class B shares (36 ) (36 ) (36 ) Undistributed income $ 97,123 104,315 94,974 Allocation of net income: Dividends $ 1,237 36 1,237 36 1,237 36 Allocation of undistributed income 94,376 2,747 101,365 2,950 92,287 2,687 Net income $ 95,613 2,783 102,602 2,986 93,524 2,723 Denominator: Basic earnings per share - weighted-average shares 3,436 200 3,436 200 3,435 200 Effect of dilutive stock options 1 — 1 — 4 — Diluted earnings per share - adjusted weighted-average shares for assumed conversions 3,437 200 3,437 200 3,439 200 Basic earnings per share $ 27.83 13.91 29.87 14.93 27.23 13.61 Diluted earnings per share $ 27.82 13.91 29.85 14.93 27.19 13.61 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Comprehensive Income | Components of other comprehensive income (loss) for 2015 , 2014 and 2013 and the related tax effect are detailed below. Amounts Before Taxes Tax (Expense)Benefit Amounts Net of Taxes (In thousands) 2015: Unrealized gains on securities, net of effects of deferred costs of $50,052: Net unrealized holding gains (losses) arising during the period $ (61,226 ) 21,429 (39,797 ) Unrealized liquidity losses 1,572 (550 ) 1,022 Reclassification adjustment for net gains included in net earnings (3,207 ) 1,122 (2,085 ) Amortization of net unrealized gains (losses) and related to transferred securities — — — Net unrealized gains (losses) on securities (62,861 ) 22,001 (40,860 ) Foreign currency translation adjustments 215 (75 ) 140 Benefit plan liability adjustment (1,134 ) 397 (737 ) Other comprehensive income (loss) $ (63,780 ) 22,323 (41,457 ) Amounts Before Taxes Tax (Expense)Benefit Amounts Net of Taxes (In thousands) 2014: Unrealized gains on securities, net of effects of deferred costs of $(10,927): Net unrealized holding gains (losses) arising during the period $ 19,287 (6,751 ) 12,536 Unrealized liquidity losses 40 (14 ) 26 Reclassification adjustment for net gains included in net earnings (7,693 ) 2,693 (5,000 ) Amortization of net unrealized gains (losses) related to transferred securities — — — Net unrealized gains (losses) on securities 11,634 (4,072 ) 7,562 Foreign currency translation adjustments (913 ) 357 (556 ) Benefit plan liability adjustment (5,077 ) 1,777 (3,300 ) Other comprehensive income (loss) $ 5,644 (1,938 ) 3,706 Amounts Before Taxes Tax (Expense)Benefit Amounts Net of Taxes (In thousands) 2013: Unrealized gains on securities, net of effects of deferred costs of $70,870: Net unrealized holding gains (losses) arising during the period $ (64,951 ) 22,733 (42,218 ) Unrealized liquidity losses 512 (179 ) 333 Reclassification adjustment for net gains included in net earnings (4,709 ) 1,648 (3,061 ) Amortization of net unrealized gains (losses) related to transferred securities — — — Net unrealized gains (losses) on securities (69,148 ) 24,202 (44,946 ) Foreign currency translation adjustments 246 406 652 Benefit plan liability adjustment 8,592 (3,004 ) 5,588 Other comprehensive income (loss) $ (60,310 ) 21,604 (38,706 ) |
Segment and Other Operating I37
Segment and Other Operating Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Summary of Segment Information, by Quarter | A summary of segment information, prepared in accordance with GAAP guidance, is provided below. Domestic Life Insurance International Life Insurance Annuities All Others Totals (In thousands) 2015: Selected Balance Sheet Items: Deferred policy acquisition costs and sales inducements $ 78,650 251,790 682,177 — 1,012,617 Total segment assets 868,466 1,260,538 9,054,951 268,675 11,452,630 Future policy benefits 748,853 944,672 8,005,833 — 9,699,358 Other policyholder liabilities 14,084 16,710 124,467 — 155,261 Condensed Income Statements: Premiums and contract charges $ 30,743 122,393 22,171 — 175,307 Net investment income 27,172 29,400 300,198 22,344 379,114 Other revenues 56 14 50 28,046 28,166 Total revenues 57,971 151,807 322,419 50,390 582,587 Life and other policy benefits 17,905 24,237 25,310 — 67,452 Amortization of deferred policy acquisition costs 8,647 19,975 91,711 — 120,333 Universal life and annuity contract interest 17,799 23,423 135,679 — 176,901 Other operating expenses 12,774 20,706 25,723 19,239 78,442 Federal income taxes (benefit) 278 20,819 14,432 10,220 45,749 Total expenses 57,403 109,160 292,855 29,459 488,877 Segment earnings (loss) $ 568 42,647 29,564 20,931 93,710 Domestic Life Insurance International Life Insurance Annuities All Others Totals (In thousands) 2014: Selected Balance Sheet Items: Deferred policy acquisition costs and sales inducements $ 64,279 245,353 653,053 — 962,685 Total segment assets 746,051 1,250,629 8,933,274 257,568 11,187,522 Future policy benefits 648,864 953,076 7,920,582 — 9,522,522 Other policyholder liabilities 12,159 11,898 115,165 — 139,222 Condensed Income Statements: Premiums and contract charges $ 28,801 118,838 22,476 — 170,115 Net investment income 34,695 51,539 398,163 21,033 505,430 Other revenues 55 372 68 21,135 21,630 Total revenues 63,551 170,749 420,707 42,168 697,175 Life and other policy benefits 11,856 24,034 18,405 — 54,295 Amortization of deferred policy acquisition costs 6,913 21,807 86,434 — 115,154 Universal life and annuity contract interest 27,050 46,255 224,954 — 298,259 Other operating expenses 13,547 23,449 27,015 19,540 83,551 Federal income taxes (benefit) 1,373 18,112 20,964 7,424 47,873 Total expenses 60,739 133,657 377,772 26,964 599,132 Segment earnings (loss) $ 2,812 37,092 42,935 15,204 98,043 Domestic Life Insurance International Life Insurance Annuities All Others Totals (In thousands) 2013: Selected Balance Sheet Items: Deferred policy acquisition costs and sales inducements $ 53,540 240,468 661,268 — 955,276 Total segment assets 610,570 1,200,347 8,586,871 260,007 10,657,795 Future policy benefits 535,710 913,339 7,676,085 — 9,125,134 Other policyholder liabilities 11,450 14,618 116,519 — 142,587 Condensed Income Statements: Premiums and contract charges $ 29,567 117,668 20,231 — 167,466 Net investment income 33,818 63,504 543,077 20,033 660,432 Other revenues 29 299 45 23,343 23,716 Total revenues 63,414 181,471 563,353 43,376 851,614 Life and other policy benefits 11,660 25,706 22,684 — 60,050 Amortization of deferred policy acquisition costs 6,738 18,946 82,549 — 108,233 Universal life and annuity contract interest 26,427 58,757 369,410 — 454,594 Other operating expenses 15,515 25,624 33,325 21,229 95,693 Federal income taxes (benefit) 980 16,720 17,660 7,062 42,422 Total expenses 61,320 145,753 525,628 28,291 760,992 Segment earnings (loss) $ 2,094 35,718 37,725 15,085 90,622 |
Reconciliation of Segment Net Earnings to Condensed Consolidated Financial Statements | Reconciliations of segment information to the Company's consolidated financial statements are provided below. Years Ended December 31, 2015 2014 2013 (In thousands) Premiums and Other Revenue : Premiums and contract charges $ 175,307 170,115 167,466 Net investment income 379,114 505,430 660,432 Other revenues 28,166 21,630 23,716 Realized gains (losses) on investments 7,209 11,605 8,653 Total consolidated premiums and other revenue $ 589,796 708,780 860,267 Years Ended December 31, 2015 2014 2013 (In thousands) Net Earnings : Total segment earnings $ 93,710 98,043 90,622 Realized gains (losses) on investments, net of taxes 4,686 7,545 5,625 Total consolidated net earnings $ 98,396 105,588 96,247 |
Reconciliation of Segment Federal Income Taxes to Condensed Consolidated Financial Statements | Years Ended December 31, 2015 2014 2013 (In thousands) Federal Income Taxes : Total segment Federal income taxes $ 45,749 47,873 42,422 Taxes on realized gains (losses) on investments 2,523 4,060 3,028 Total taxes on consolidated net earnings $ 48,272 51,933 45,450 |
Reconciliation of Segment Assets to Condensed Consolidated Financial Statements | December 31, 2015 2014 2013 (In thousands) Assets : Total segment assets $ 11,452,630 11,187,522 10,657,795 Other unallocated assets 159,946 164,370 172,621 Total consolidated assets $ 11,612,576 11,351,892 10,830,416 |
Schedule of Premiums and Contract Revenue Detailed by Country | Premiums and contract revenues detailed by country are provided below. Years Ended December 31, 2015 2014 2013 (In thousands) United States $ 66,750 65,078 64,267 Brazil 40,640 38,563 38,205 Venezuela 15,466 14,931 14,017 Taiwan 14,882 14,166 14,047 Peru 10,915 10,327 9,366 Argentina 9,007 9,324 9,102 Other foreign countries 36,776 36,775 37,203 Revenues, excluding reinsurance premiums 194,436 189,164 186,207 Reinsurance premiums (19,129 ) (19,049 ) (18,741 ) Total premiums and contract revenues $ 175,307 170,115 167,466 |
Fair Value of Financial Instr38
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of the date indicated. December 31, 2015 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available for sale $ 2,861,222 — 2,861,222 — Equity securities, available for sale 18,361 17,980 381 — Derivatives, index options 38,409 — — 38,409 Total assets $ 2,917,992 17,980 2,861,603 38,409 Policyholder account balances (a) $ 58,359 — — 58,359 Other liabilities (b) 7,669 — — 7,669 Total liabilities $ 66,028 — — 66,028 December 31, 2014 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available for sale $ 2,711,377 — 2,711,377 — Equity securities, available for sale 17,303 16,862 441 — Derivatives, index options 114,287 — — 114,287 Total assets $ 2,842,967 16,862 2,711,818 114,287 Policyholder account balances (a) $ 133,236 — — 133,236 Other liabilities (b) 9,256 — — 9,256 Total liabilities $ 142,492 — — 142,492 (a) Represents the fair value of certain product-related embedded derivatives that were recorded at fair value. (b) Represents the liability for share-based compensation. |
Schedule of Significant Unobservable Inputs for Fair Value Measurements | The following table provides additional information about fair value measurements for which significant unobservable (Level 3) inputs were utilized to determine fair value. Year Ended December 31, 2015 Debt Securities, Available For Sale Equity Securities, Available For Sale Derivatives, Index Options Total Assets Other Liabilities (In thousands) Beginning balance, January 1, 2015 $ — — 114,287 114,287 142,492 Total realized and unrealized gains (losses): Included in net income — — (61,750 ) (61,750 ) (61,676 ) Included in other comprehensive income (loss) — — — — — Purchases, sales, issuances and settlements, net: Purchases — — 86,189 86,189 86,189 Sales — — — — — Issuances — — — — — Settlements — — (100,317 ) (100,317 ) (100,977 ) Transfers into (out of) Level 3 — — — — — Balance at end of period $ — — 38,409 38,409 66,028 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: Net investment income $ — — (47,780 ) (47,780 ) — Benefits and expenses — — — — (48,707 ) Total $ — — (47,780 ) (47,780 ) (48,707 ) Year Ended December 31, 2014 Debt Securities, Available For Sale Equity Securities, Available For Sale Derivatives, Index Options Total Assets Other Liabilities (In thousands) Beginning balance, January 1, 2014 $ — — 169,314 169,314 193,338 Total realized and unrealized gains (losses): Included in net income — — 68,616 68,616 73,851 Included in other comprehensive income (loss) — — — — — Purchases, sales, issuances and settlements, net: Purchases — — 73,937 73,937 73,937 Sales — — — — — Issuances — — — — — Settlements — — (197,580 ) (197,580 ) (198,634 ) Transfers into (out of) Level 3 — — — — — Balance at end of period $ — — 114,287 114,287 142,492 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: Net investment income $ — — 40,350 40,350 — Benefits and expenses — — — — 44,722 Total $ — — 40,350 40,350 44,722 |
Schedule of Quantitative Information about Company's Level 3 Liabilities | The following tables show the quantitative information about the Company's level 3 assets and liabilities. December 31, 2015 Fair Value Valuation Technique Unobservable Input (In thousands) Derivatives, index options $ 38,409 Broker prices Implied volatility Inputs from broker proprietary models Total assets $ 38,409 Policyholder account balances $ 58,359 Deterministic cash flow model Projected option cost Other liabilities 7,669 Black Scholes Expected term Forfeiture assumptions Total liabilities $ 66,028 December 31, 2014 Fair Value Valuation Technique Unobservable Input (In thousands) Derivatives, index options $ 114,287 Broker prices Implied volatility Inputs from broker proprietary models Total assets $ 114,287 Policyholder account balances $ 133,236 Deterministic cash flow model Projected option cost Other liabilities $ 9,256 Black Scholes Expected term Forfeiture assumptions Total liabilities $ 142,492 |
Schedule of Quantitative Information about Company's Level 3 Assets | The following tables show the quantitative information about the Company's level 3 assets and liabilities. December 31, 2015 Fair Value Valuation Technique Unobservable Input (In thousands) Derivatives, index options $ 38,409 Broker prices Implied volatility Inputs from broker proprietary models Total assets $ 38,409 Policyholder account balances $ 58,359 Deterministic cash flow model Projected option cost Other liabilities 7,669 Black Scholes Expected term Forfeiture assumptions Total liabilities $ 66,028 December 31, 2014 Fair Value Valuation Technique Unobservable Input (In thousands) Derivatives, index options $ 114,287 Broker prices Implied volatility Inputs from broker proprietary models Total assets $ 114,287 Policyholder account balances $ 133,236 Deterministic cash flow model Projected option cost Other liabilities $ 9,256 Black Scholes Expected term Forfeiture assumptions Total liabilities $ 142,492 |
Schedule of Assets by Pricing Source and Fair Value Hierarchy Measured on Recurring Basis | The following table presents, by pricing source and fair value hierarchy level, the Company’s assets that are measured at fair value on a recurring basis: December 31, 2015 Total Level 1 Level 2 Level 3 (In thousands) Fixed maturities, available for sale: Priced by third-party vendors $ 2,861,222 — 2,861,222 — Priced internally — — — — Subtotal 2,861,222 — 2,861,222 — Equity securities, available for sale: Priced by third-party vendors 18,361 17,980 381 — Priced internally — — — — Subtotal 18,361 17,980 381 — Derivatives, index options: Priced by third-party vendors 38,409 — — 38,409 Priced internally — — — — Subtotal 38,409 — — 38,409 Total $ 2,917,992 17,980 2,861,603 38,409 Percent of total 100.0 % 0.6 % 98.1 % 1.3 % |
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of the Company's financial instruments are as follows: December 31, 2015 Fair Value Hierarchy Level Carrying Values Fair Values Level 1 Level 2 Level 3 (In thousands) ASSETS Investments in debt and equity securities: Securities held to maturity $ 7,173,967 7,335,436 — 7,335,436 — Securities available for sale 2,879,583 2,879,583 17,980 2,861,603 — Cash and cash equivalents 106,007 106,007 106,007 — — Mortgage loans 108,311 111,162 — — 111,162 Policy loans 61,957 108,550 — — 108,550 Other loans 2,779 2,957 — — 2,957 Derivatives, index options 38,409 38,409 — — 38,409 Life interest in Libbie Shearn Moody Trust 7,379 12,775 — — 12,775 LIABILITIES Deferred annuity contracts $ 7,640,951 7,288,108 — — 7,288,108 Immediate annuity and supplemental contracts 434,468 461,457 — — 461,457 December 31, 2014 Fair Value Hierarchy Level Carrying Values Fair Values Level 1 Level 2 Level 3 (In thousands) ASSETS Investments in debt and equity securities: Securities held to maturity $ 6,841,543 7,175,443 — 7,175,443 — Securities available for sale 2,728,680 2,728,680 16,862 2,711,818 — Cash and cash equivalents 277,078 277,078 277,078 — — Mortgage loans 149,503 156,548 — — 156,548 Policy loans 63,645 111,040 — — 111,040 Other loans 2,171 2,300 — — 2,300 Derivatives, index options 114,287 114,287 — — 114,287 Life interest in Libbie Shearn Moody Trust — 12,775 — — 12,775 LIABILITIES Deferred annuity contracts $ 7,546,504 7,178,535 — — 7,178,535 Immediate annuity and supplemental contracts 446,458 474,843 — — 474,843 |
Derivative Investments (Tables)
Derivative Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Instruments | The tables below present the fair value of derivative instruments. December 31, 2015 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) (In thousands) Derivatives not designated as hedging instruments Equity index options Derivatives, Index Options $ 38,409 Fixed-index products Universal Life and Annuity Contracts $ 58,359 Total $ 38,409 $ 58,359 December 31, 2014 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) (In thousands) Derivatives not designated as hedging instruments Equity index options Derivatives, Index Options $ 114,287 Fixed-index products Universal Life and Annuity Contracts $ 133,236 Total $ 114,287 $ 133,236 |
Schedule of Derivative Instruments in Condensed Consolidated Statements of Earnings | The table below presents the effect of derivative instruments in the consolidated statements of earnings for the years ended December 31, 2015 and 2014 . Amount of Gain or (Loss) Recognized In Income on Derivatives Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized In Income on Derivatives 2015 2014 2013 (In thousands) Equity index options Net investment income $ (61,750 ) 68,616 225,899 Fixed-indexed products Universal life and annuity contract interest 60,749 (69,480 ) (229,404 ) $ (1,001 ) (864 ) (3,505 ) |
Unaudited Quarterly Financial40
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results | Quarterly results of operations for 2015 are summarized as follows: First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands except per share data) 2015: Revenues $ 147,890 155,218 106,104 180,583 Earnings (loss) $ 21,326 28,858 16,221 31,991 Basic earnings (loss) per share: Class A $ 6.03 8.16 4.59 9.05 Class B $ 3.02 4.08 2.29 4.52 Diluted earnings (loss) per share: Class A $ 6.03 8.16 4.59 9.04 Class B $ 3.02 4.08 2.29 4.52 Quarterly results of operations for 2014 are summarized as follows: First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands except per share data) 2014: Revenues $ 158,003 206,841 159,620 184,315 Earnings (loss) $ 19,826 29,183 28,466 28,113 Basic earnings (loss) per share: Class A $ 5.61 8.26 8.05 7.95 Class B $ 2.80 4.13 4.03 3.98 Diluted earnings (loss) per share: Class A $ 5.61 8.25 8.05 7.94 Class B $ 2.80 4.13 4.03 3.98 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)unlocking_adjustment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Schedule of Deferred Acquisition Costs [Line Items] | |||
Derivatives, index options | $ 38,409 | $ 114,287 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Deferred policy acquisition costs, beginning of year | 802,919 | 785,706 | $ 705,397 |
Policy acquisition costs deferred | 131,392 | 141,868 | 133,982 |
Amortization of deferred policy acquisition costs | (120,333) | (115,154) | (108,233) |
Adjustments for unrealized (gains) losses on investment securities | 39,473 | (9,501) | 54,560 |
Deferred policy acquisition costs, end of year | 853,451 | 802,919 | 785,706 |
Movement in Deferred Sales Inducements [Roll Forward] | |||
Deferred sales inducements, beginning of year | 159,766 | 169,570 | 152,844 |
Sales inducement costs deferred | 17,704 | 18,355 | 26,159 |
Amortization of sales inducements | (28,559) | (26,357) | (25,357) |
Adjustments for unrealized (gains) losses on investment securities | 10,255 | (1,802) | 15,924 |
Deferred sales inducements, end of year | $ 159,166 | 159,766 | 169,570 |
Number of unlocking adjustments | unlocking_adjustment | 2 | ||
Decrease in amortization during the year | $ 7,100 | 1,400 | |
Increase in amortization during the year | 5,300 | ||
True-up adjustments recorded | 2,800 | 7,200 | 15,800 |
True-up adjustment in deferred sales inducement | 3,900 | 1,600 | 800 |
Increase in contract interest expense | 1,800 | ||
Summary of Premiums and Deposits Collected | |||
Annuity deposits | 775,010 | 833,273 | 813,868 |
Universal life insurance deposits | 277,229 | 280,980 | 296,286 |
Traditional life and other premiums | 23,162 | 22,651 | 22,164 |
Totals | 1,075,401 | 1,136,904 | 1,132,318 |
Statutory Accounting Practices | |||
Net gain from operations before Federal and foreign income taxes | 8,139 | 95,892 | 170,796 |
Net income | 7,060 | 77,220 | 106,159 |
Unassigned surplus | 1,127,140 | 1,141,579 | 1,082,519 |
Capital and surplus | 1,171,203 | 1,185,643 | 1,126,232 |
Agents' Commissions [Member] | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Policy acquisition costs deferred | 124,498 | 134,262 | 127,161 |
Other Costs [Member] | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Policy acquisition costs deferred | $ 6,894 | $ 7,606 | $ 6,821 |
Minimum [Member] | |||
Movement in Deferred Sales Inducements [Roll Forward] | |||
Interest rate range to calculate future mortality | 3.25% | ||
Maximum [Member] | |||
Movement in Deferred Sales Inducements [Roll Forward] | |||
Interest rate range to calculate future mortality | 8.00% |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||||
Other net investment gains (losses) | $ 7,461 | $ 11,755 | $ 8,958 | |||||||
Earnings before Federal income taxes | 146,668 | 157,521 | 141,697 | |||||||
Federal income taxes | 48,272 | 51,933 | 45,450 | |||||||
Net earnings | $ 16,221 | $ 28,858 | $ 21,326 | $ 28,113 | $ 28,466 | $ 29,183 | $ 19,826 | 98,396 | 105,588 | 96,247 |
Accumulated other comprehensive income (loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||||
Other net investment gains (losses) | 3,459 | 7,843 | 4,923 | |||||||
Net OTTI losses recognized in earnings | (252) | (150) | (213) | |||||||
Earnings before Federal income taxes | 3,207 | 7,693 | 4,710 | |||||||
Federal income taxes | 1,122 | 2,693 | 1,649 | |||||||
Net earnings | $ 2,085 | $ 5,000 | $ 3,061 |
Deposits with Regulatory Auth43
Deposits with Regulatory Authorities Deposit with Regulatory Authorities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Deposit with Regulatory Authorities [Line Items] | ||
Assets on deposit with state and other regulatory authorities | $ 16,566 | $ 16,568 |
Debt securities held to maturity [Member] | ||
Schedule of Deposit with Regulatory Authorities [Line Items] | ||
Assets on deposit with state and other regulatory authorities | 15,281 | 15,279 |
Debt securities available for sale [Member] | ||
Schedule of Deposit with Regulatory Authorities [Line Items] | ||
Assets on deposit with state and other regulatory authorities | 810 | 814 |
Short-term investments [Member] | ||
Schedule of Deposit with Regulatory Authorities [Line Items] | ||
Assets on deposit with state and other regulatory authorities | $ 475 | $ 475 |
Investments (Components of Inve
Investments (Components of Investment Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Total investment income | $ 380,231 | $ 506,516 | $ 661,459 |
Investment expenses | 1,117 | 1,086 | 1,027 |
Net investment income | 379,114 | 505,430 | 660,432 |
Non-income producing [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Real estate investment | 900 | 900 | 1,300 |
Debt securities [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Total investment income | 416,633 | 410,809 | 410,790 |
Mortgage loans [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Total investment income | 10,274 | 9,847 | 9,256 |
Policy loans [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Total investment income | 3,938 | 4,252 | 4,503 |
Derivative gains (losses) [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Total investment income | (61,750) | 68,616 | 225,899 |
Money market investments [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Total investment income | 197 | 401 | 252 |
Other investment income [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Total investment income | $ 10,939 | $ 12,591 | $ 10,759 |
Investments (Mortgage Loans) (D
Investments (Mortgage Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans, amount | $ 108,961 | $ 150,153 |
Allowance for possible losses, amount | (650) | (650) |
Totals, amount | $ 108,311 | $ 149,503 |
Mortgage loans, percentage | 100.00% | 100.00% |
Allowance for possible losses, percentage | (0.60%) | (0.40%) |
Totals, percentage | 99.40% | 99.60% |
Less than 50% [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans, amount | $ 64,986 | $ 52,564 |
Mortgage loans, percentage | 59.70% | 35.00% |
50% to 60% [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans, amount | $ 9,714 | $ 50,553 |
Mortgage loans, percentage | 8.90% | 33.70% |
60% to 70% [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans, amount | $ 10,134 | $ 14,567 |
Mortgage loans, percentage | 9.30% | 9.70% |
70% to 80% [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans, amount | $ 4,843 | $ 12,656 |
Mortgage loans, percentage | 4.40% | 8.40% |
80% to 90% [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans, amount | $ 19,284 | $ 5,399 |
Mortgage loans, percentage | 17.70% | 3.60% |
Greater than 90% [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans, amount | $ 0 | $ 14,414 |
Mortgage loans, percentage | 0.00% | 9.60% |
Retail [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans, amount | $ 66,237 | $ 130,544 |
Mortgage loans, percentage | 60.80% | 86.90% |
Office [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans, amount | $ 22,941 | $ 893 |
Mortgage loans, percentage | 21.00% | 0.60% |
Land and Lots [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans, amount | $ 4,445 | $ 3,333 |
Mortgage loans, percentage | 4.10% | 2.20% |
Hotal and Motel [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans, amount | $ 1,513 | $ 1,600 |
Mortgage loans, percentage | 1.40% | 1.10% |
Apartment [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans, amount | $ 0 | $ 7,333 |
Mortgage loans, percentage | 0.00% | 4.90% |
All Other [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans, amount | $ 13,825 | $ 6,450 |
Mortgage loans, percentage | 12.70% | 4.30% |
West South Central [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans, amount | $ 58,002 | $ 97,918 |
Mortgage loans, percentage | 53.20% | 65.20% |
East North Central [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans, amount | $ 18,477 | $ 10,714 |
Mortgage loans, percentage | 17.00% | 7.10% |
New England [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans, amount | $ 11,830 | $ 12,155 |
Mortgage loans, percentage | 10.90% | 8.10% |
Pacific [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans, amount | $ 10,101 | $ 10,282 |
Mortgage loans, percentage | 9.30% | 6.90% |
East South Central [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans, amount | $ 5,818 | $ 14,137 |
Mortgage loans, percentage | 5.30% | 9.40% |
South Atlantic [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans, amount | $ 3,047 | $ 0 |
Mortgage loans, percentage | 2.80% | 0.00% |
Mountain [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans, amount | $ 1,686 | $ 3,050 |
Mortgage loans, percentage | 1.50% | 2.00% |
Middle Atlantic [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans, amount | $ 0 | $ 1,897 |
Mortgage loans, percentage | 0.00% | 1.30% |
Investments (Mortgage Loan Allo
Investments (Mortgage Loan Allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance, beginning of period | $ 650 | $ 650 | |
Provision | 0 | 0 | $ 0 |
Releases | 0 | 0 | |
Balance, end of period | $ 650 | $ 650 |
Investments (Contractual Maturi
Investments (Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Principal Balance by Contractual Maturity, Amount | ||
Due in one year or less | $ 152,369 | |
Due after one year through five years | 1,534,855 | |
Due after five years through ten years | 3,663,415 | |
Totals | 7,173,967 | $ 6,841,543 |
Commercial Mortgage Loans [Member] | ||
Principal Balance by Contractual Maturity, Amount | ||
Due in one year or less | 7,950 | 16,390 |
Due after one year through five years | 24,236 | 83,965 |
Due after five years through ten years | 50,431 | 30,591 |
Due after ten years through fifteen years | 7,500 | 0 |
Due after fifteen years | 19,284 | 19,813 |
Totals | $ 109,401 | $ 150,759 |
Principal Balance by Contractual Maturity, Percentage | ||
Due in one year or less | 7.30% | 10.90% |
Due after one year through five years | 22.10% | 55.70% |
Due after five years through ten years | 46.10% | 20.30% |
Due after ten years through fifteen years | 6.90% | 0.00% |
Due after fifteen years | 17.60% | 13.10% |
Totals | 100.00% | 100.00% |
Investments (Securities Held to
Investments (Securities Held to Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Totals | $ 7,173,967 | $ 6,841,543 |
Gross Unrealized Gains | 247,892 | 357,805 |
Gross Unrealized Losses | (86,423) | (23,905) |
Fair Value | 7,335,436 | 7,175,443 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 1,986,981 | 183,821 |
Less than 12 Months, Unrealized Losses | (63,361) | (3,307) |
12 Months or Greater, Fair Value | 445,573 | 951,284 |
12 Months or Greater, Unrealized Losses | (23,062) | (20,598) |
Total, Fair Value | 2,432,554 | 1,135,105 |
Gross Unrealized Losses | (86,423) | (23,905) |
U.S. Agencies [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Totals | 15,019 | 10,061 |
Gross Unrealized Gains | 275 | 705 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 15,294 | 10,766 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Gross Unrealized Losses | 0 | 0 |
U.S. Treasury [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Totals | 1,927 | 1,920 |
Gross Unrealized Gains | 317 | 409 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 2,244 | 2,329 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Gross Unrealized Losses | 0 | 0 |
States and Political Subdivisions [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Totals | 435,941 | 432,186 |
Gross Unrealized Gains | 29,129 | 31,417 |
Gross Unrealized Losses | (662) | (336) |
Fair Value | 464,408 | 463,267 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 16,763 | 0 |
Less than 12 Months, Unrealized Losses | (387) | 0 |
12 Months or Greater, Fair Value | 8,723 | 23,076 |
12 Months or Greater, Unrealized Losses | (275) | (336) |
Total, Fair Value | 25,486 | 23,076 |
Gross Unrealized Losses | (662) | (336) |
Public Utilities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Totals | 1,044,063 | 978,847 |
Gross Unrealized Gains | 42,271 | 67,836 |
Gross Unrealized Losses | (6,621) | (757) |
Fair Value | 1,079,713 | 1,045,926 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 298,962 | 7,078 |
Less than 12 Months, Unrealized Losses | (5,953) | (13) |
12 Months or Greater, Fair Value | 17,840 | 48,198 |
12 Months or Greater, Unrealized Losses | (668) | (744) |
Total, Fair Value | 316,802 | 55,276 |
Gross Unrealized Losses | (6,621) | (757) |
Corporate [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Totals | 4,160,628 | 3,754,222 |
Gross Unrealized Gains | 114,920 | 183,650 |
Gross Unrealized Losses | (72,913) | (18,591) |
Fair Value | 4,202,635 | 3,919,281 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 1,522,544 | 156,839 |
Less than 12 Months, Unrealized Losses | (54,295) | (2,997) |
12 Months or Greater, Fair Value | 323,567 | 698,316 |
12 Months or Greater, Unrealized Losses | (18,618) | (15,594) |
Total, Fair Value | 1,846,111 | 855,155 |
Gross Unrealized Losses | (72,913) | (18,591) |
Mortgage-backed [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Totals | 1,503,021 | 1,640,582 |
Gross Unrealized Gains | 59,013 | 68,726 |
Gross Unrealized Losses | (6,227) | (4,164) |
Fair Value | 1,555,807 | 1,705,144 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 148,712 | 17,698 |
Less than 12 Months, Unrealized Losses | (2,726) | (240) |
12 Months or Greater, Fair Value | 95,443 | 181,694 |
12 Months or Greater, Unrealized Losses | (3,501) | (3,924) |
Total, Fair Value | 244,155 | 199,392 |
Gross Unrealized Losses | (6,227) | (4,164) |
Home Equity [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Totals | 11,047 | 18,886 |
Gross Unrealized Gains | 1,701 | 4,734 |
Gross Unrealized Losses | 0 | (57) |
Fair Value | 12,748 | 23,563 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 0 | 2,206 |
Less than 12 Months, Unrealized Losses | 0 | (57) |
12 Months or Greater, Fair Value | 0 | 0 |
12 Months or Greater, Unrealized Losses | 0 | 0 |
Total, Fair Value | 0 | 2,206 |
Gross Unrealized Losses | 0 | (57) |
Manufactured Housing [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Totals | 2,321 | 4,839 |
Gross Unrealized Gains | 266 | 328 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 2,587 | 5,167 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Gross Unrealized Losses | $ 0 | $ 0 |
Investments (Securities Availab
Investments (Securities Available for Sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total | $ 2,833,698 | |
Fair Value, Debt securities | 2,861,222 | |
Amortized Cost, Equity securities | 13,716 | $ 12,799 |
Gross Unrealized Gains, Equity securities | 4,797 | 4,849 |
Gross Unrealized Losses, Equity securities | (152) | (345) |
Fair Value, Equity securities | 18,361 | 17,303 |
Amortized Cost | 2,847,414 | 2,590,074 |
Gross Unrealized Gains | 87,645 | 148,083 |
Gross Unrealized Losses | (55,476) | (9,477) |
Fair Value | 2,879,583 | 2,728,680 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 886,421 | 100,678 |
Less than 12 Months, Unrealized Losses | (33,399) | (3,042) |
12 Months or Greater, Fair Value | 156,796 | 211,706 |
12 Months or Greater, Unrealized Losses | (22,077) | (6,435) |
Total, Fair Value | 1,043,217 | 312,384 |
Total, Unrealized Losses | (55,476) | (9,477) |
Debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 2,833,698 | 2,577,275 |
Gross Unrealized Gains, Debt securities | 82,848 | 143,234 |
Gross Unrealized Losses, Debt securities | (55,324) | (9,132) |
Fair Value, Debt securities | 2,861,222 | 2,711,377 |
Fair Value | 2,861,222 | 2,711,377 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 885,772 | 100,373 |
Less than 12 Months, Unrealized Losses | (33,275) | (2,990) |
12 Months or Greater, Fair Value | 156,694 | 207,905 |
12 Months or Greater, Unrealized Losses | (22,049) | (6,142) |
Total, Fair Value | 1,042,466 | 308,278 |
Total, Unrealized Losses | (55,324) | (9,132) |
States and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 586 | 589 |
Gross Unrealized Gains, Debt securities | 0 | 0 |
Gross Unrealized Losses, Debt securities | (34) | (36) |
Fair Value, Debt securities | 552 | 553 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 0 | 0 |
Less than 12 Months, Unrealized Losses | 0 | 0 |
12 Months or Greater, Fair Value | 552 | 553 |
12 Months or Greater, Unrealized Losses | (34) | (36) |
Total, Fair Value | 552 | 553 |
Total, Unrealized Losses | (34) | (36) |
Foreign Governments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 9,947 | 9,939 |
Gross Unrealized Gains, Debt securities | 408 | 386 |
Gross Unrealized Losses, Debt securities | 0 | 0 |
Fair Value, Debt securities | 10,355 | 10,325 |
Public Utilities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 129,980 | 169,179 |
Gross Unrealized Gains, Debt securities | 5,354 | 10,163 |
Gross Unrealized Losses, Debt securities | (775) | (126) |
Fair Value, Debt securities | 134,559 | 179,216 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 42,093 | 0 |
Less than 12 Months, Unrealized Losses | (775) | 0 |
12 Months or Greater, Fair Value | 0 | 14,827 |
12 Months or Greater, Unrealized Losses | 0 | (126) |
Total, Fair Value | 42,093 | 14,827 |
Total, Unrealized Losses | (775) | (126) |
Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 2,635,536 | 2,334,700 |
Gross Unrealized Gains, Debt securities | 73,132 | 128,280 |
Gross Unrealized Losses, Debt securities | (54,503) | (8,961) |
Fair Value, Debt securities | 2,654,165 | 2,454,019 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 843,679 | 100,373 |
Less than 12 Months, Unrealized Losses | (32,500) | (2,990) |
12 Months or Greater, Fair Value | 151,319 | 187,699 |
12 Months or Greater, Unrealized Losses | (22,003) | (5,971) |
Total, Fair Value | 994,998 | 288,072 |
Total, Unrealized Losses | (54,503) | (8,961) |
Mortgage-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 36,463 | 48,674 |
Gross Unrealized Gains, Debt securities | 3,103 | 4,116 |
Gross Unrealized Losses, Debt securities | 0 | 0 |
Fair Value, Debt securities | 39,566 | 52,790 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 0 | |
Less than 12 Months, Unrealized Losses | 0 | |
12 Months or Greater, Fair Value | 0 | |
12 Months or Greater, Unrealized Losses | 0 | |
Total, Fair Value | 0 | |
Total, Unrealized Losses | 0 | |
Home Equity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 20,123 | 11,702 |
Gross Unrealized Gains, Debt securities | 825 | 225 |
Gross Unrealized Losses, Debt securities | (12) | (9) |
Fair Value, Debt securities | 20,936 | 11,918 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 0 | 0 |
Less than 12 Months, Unrealized Losses | 0 | 0 |
12 Months or Greater, Fair Value | 4,823 | 4,826 |
12 Months or Greater, Unrealized Losses | (12) | (9) |
Total, Fair Value | 4,823 | 4,826 |
Total, Unrealized Losses | (12) | (9) |
Manufactured Housing [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 1,063 | 2,492 |
Gross Unrealized Gains, Debt securities | 26 | 64 |
Gross Unrealized Losses, Debt securities | 0 | 0 |
Fair Value, Debt securities | 1,089 | 2,556 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 18,361 | 17,303 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 649 | 305 |
Less than 12 Months, Unrealized Losses | (124) | (52) |
12 Months or Greater, Fair Value | 102 | 3,801 |
12 Months or Greater, Unrealized Losses | (28) | (293) |
Total, Fair Value | 751 | 4,106 |
Total, Unrealized Losses | $ (152) | $ (345) |
Investments (Unrealized Losses)
Investments (Unrealized Losses) (Details) | Dec. 31, 2015security |
Debt securities [Member] | |
Available-for-Sale Securities and Held-to-Maturity Securities [Line Items] | |
Gross unrealized losses, number of issues | 396 |
Gross unrealized losses, percentage of total debt | 29.70% |
Gross unrealized losses, market value as a percent of amortized cost | 96.10% |
Gross unrealized losses, number of securities with maturities of 12 months or greater | 86 |
Gross unrealized losses, number of securities with maturities of 12 months or greater (as a percentage) | 21.70% |
Equity Securities [Member] | |
Available-for-Sale Securities and Held-to-Maturity Securities [Line Items] | |
Gross unrealized losses, number of securities rated investment grade | 21 |
Other-than-temporarily impaired securities, number of securities rated investment grade | 12 |
External Credit Rating, Investment Grade [Member] | Debt securities [Member] | |
Available-for-Sale Securities and Held-to-Maturity Securities [Line Items] | |
Gross unrealized losses, number of securities rated investment grade | 387 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Debt Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Securities Available for Sale, Amortized Cost | ||
Due in 1 year or less | $ 131,110 | |
Due after 1 year through 5 years | 830,945 | |
Due after 5 years through 10 years | 1,774,539 | |
Due after 10 years | 60,641 | |
Amortized Cost, Single Maturity Date Securities | 2,797,235 | |
Mortgage and asset-backed securities | 36,463 | |
Total | 2,833,698 | |
Debt Securities Available for Sale, Fair Value | ||
Due in 1 year or less | 132,759 | |
Due after 1 year through 5 years | 878,847 | |
Due after 5 years through 10 years | 1,749,470 | |
Due after 10 years | 60,580 | |
Fair Value, Single Maturity Date Securities | 2,821,656 | |
Mortgage and asset-backed securities | 39,566 | |
Total | 2,861,222 | |
Debt Securities Held to Maturity, Amortized Cost | ||
Due in 1 year or less | 152,369 | |
Due after 1 year through 5 years | 1,534,855 | |
Due after 5 years through 10 years | 3,663,415 | |
Due after 10 years | 320,307 | |
Amortized Cost, Single Maturity Date Securities | 5,670,946 | |
Mortgage and asset-backed securities | 1,503,021 | |
Totals | 7,173,967 | $ 6,841,543 |
Debt Securities Held to Maturity, Fair Value | ||
Due in 1 year or less | 155,910 | |
Due after 1 year through 5 years | 1,641,932 | |
Due after 5 years through 10 years | 3,650,811 | |
Due after 10 years | 330,976 | |
Fair Value, Single Maturity Date Securities | 5,779,629 | |
Mortgage and asset-backed securities | 1,555,807 | |
Total | $ 7,335,436 | $ 7,175,443 |
Investments (Realized Gains (Lo
Investments (Realized Gains (Losses)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Held to maturity debt securities: | |||
Real estate | $ 0 | $ 955 | $ 262 |
Mortgage loans | 0 | 0 | 0 |
Other | 0 | (478) | 0 |
Other net investment gains (losses) | 7,461 | 11,755 | 8,958 |
Debt Securities [Member] | |||
Available for sale debt securities: | |||
Realized gains on disposal | 3,378 | 7,795 | 4,418 |
Realized losses on disposal | (74) | (22) | (6) |
Held to maturity debt securities: | |||
Realized gains on redemption | 4,027 | 3,453 | 3,845 |
Realized losses on redemption | (25) | (17) | (72) |
Equity Securities [Member] | |||
Held to maturity debt securities: | |||
Equity securities realized gains | $ 155 | $ 69 | $ 511 |
Investments (Net Impairment Los
Investments (Net Impairment Losses) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)security | |
Investments, Debt and Equity Securities [Abstract] | |||
Total other-than-temporary impairment recoveries (losses) on debt securities | $ 3,053 | $ 125 | $ 909 |
Portion recognized in comprehensive income | (3,053) | (132) | (1,151) |
Net impairment losses (gains) on debt securities recognized in earnings | 0 | (7) | (242) |
Equity securities impairments | (252) | (143) | (63) |
Net OTTI losses recognized in earnings | $ (252) | $ (150) | $ (305) |
Number of debt securities | security | 1 |
Investments (OTTI, Credit Losse
Investments (OTTI, Credit Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Non-Credit Other-than-Temporary Impairment, Credit Losses Recognized in Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance, cumulative credit losses related to other-than-temporary impairments | $ 2,298 | $ 2,472 |
Reductions for securities disposed during current period | (20) | (181) |
Additions for OTTI where credit losses have been previously recognized | 0 | 7 |
Ending balance, cumulative credit losses related to other-than-temporary impairments | $ 2,278 | $ 2,298 |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gain (Loss) on Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gross unrealized gains | $ 87,493 | $ 157,304 |
Gross unrealized losses | (56,064) | (12,926) |
Deferred policy acquisition costs and sales inducements | (12,804) | (62,856) |
Deferred federal income tax expense | (6,519) | (28,556) |
Adjustments for deferred expense, deferred policy acquisition and sales inducement cost | 12,106 | 52,966 |
Net unrealized gains related to securities transferred to held to maturity | 0 | 0 |
Net unrealized gains on investment securities | $ 12,106 | $ 52,966 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($)security | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Loans originated during the year | $ 38,500 | $ 37,100 | ||
Recognized valuation losses | 0 | 0 | $ 0 | |
Real estate investments | 26,787 | 28,774 | ||
Realized gains (losses) on investments | $ 7,209 | $ 11,605 | $ 8,653 | |
Held-to-maturity securities transferred to Available for sale, security | security | 1 | 0 | ||
Debt securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Realized gains (losses) on investments | $ 7,200 | $ 11,600 | $ 8,700 | |
Real Estate [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Real estate investments | 16,300 | 16,700 | ||
Operating income recognized on real estate investment properties | 1,800 | 1,700 | 1,700 | |
Realized gains (losses) on investments | 0 | 1,000 | $ 300 | |
Other-than Temporary Impairment Write-down on Investments [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Realized gains (losses) on investments | 300 | |||
External Credit Rating, Non Investment Grade [Member] | Debt securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Debt securities below investment grade | $ 160,800 | $ 147,100 | ||
Debt securities below investment grade, percentage of total invested assets | 1.60% | 1.50% | ||
Standard & Poor's, CCC Rating [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Held-to-maturity securities transferred to Available for sale, value | $ 9,100 | |||
Maximum [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Loan to value ratio, threshold, percentage | 90.00% |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | |
Reinsurance Disclosures [Abstract] | ||||
Limit for reinsuring risk | $ 500,000 | $ 250,000 | ||
Total life insurance in force | 22,000,000,000 | $ 23,100,000,000 | ||
Ceded premiums | 5,000,000,000 | 5,300,000,000 | ||
Reinsurance receivable | 3,700,000 | 7,400,000 | ||
Reinsurance premiums | 19,129,000 | 19,049,000 | $ 18,741,000 | |
Reinsurance recoveries | $ 14,200,000 | $ 6,400,000 | $ 7,000,000 |
Federal Income Taxes (Component
Federal Income Taxes (Components of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Taxes (benefits) on earnings from continuing operations | |||
Current | $ 8,279 | $ 29,395 | $ 71,709 |
Deferred | 39,993 | 22,538 | (26,259) |
Taxes on earnings from continuing operations | 48,272 | 51,933 | 45,450 |
Taxes (benefits) on components of stockholders' equity: | (22,323) | 1,938 | (21,604) |
Total Federal income taxes (benefit) | 25,936 | 53,870 | 23,856 |
Net Unrealized Gains and Losses on Securities Available for Sale [Member] | |||
Taxes (benefits) on earnings from continuing operations | |||
Taxes (benefits) on components of stockholders' equity: | (22,014) | 4,072 | (24,201) |
Foreign Currency Translation Adjustments [Member] | |||
Taxes (benefits) on earnings from continuing operations | |||
Taxes (benefits) on components of stockholders' equity: | 75 | (358) | (398) |
Change in Benefit Liability [Member] | |||
Taxes (benefits) on earnings from continuing operations | |||
Taxes (benefits) on components of stockholders' equity: | $ (397) | $ (1,777) | $ 3,005 |
Federal Income Taxes (Reconcili
Federal Income Taxes (Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Reconciliation [Abstract] | |||
Income tax expense at statutory rate of 35% | $ 51,334 | $ 55,133 | $ 49,594 |
Dividend received deduction | (1,194) | (1,076) | (1,140) |
Tax adjustment on foreign currency | (2,195) | (2,155) | (2,065) |
Tax adjustment on foreign currency | 618 | (358) | (214) |
Adjustments pertaining to prior tax years | (296) | 1 | (273) |
Nondeductible insurance | 160 | 160 | 160 |
Nondeductible expenses | 261 | 277 | 121 |
Other, net | (416) | (49) | (733) |
Taxes on earnings from continuing operations | $ 48,272 | $ 51,933 | $ 45,450 |
Statutory Rate | 35.00% |
Federal Income Taxes (Deferred
Federal Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Future policy benefits, excess of financial accounting liabilities over tax liabilities | $ 251,701 | $ 292,262 |
Investment securities write-downs for financial accounting purposes | 3,493 | 6,246 |
Benefit plan liabilities | 12,397 | 11,333 |
Accrued operating expenses recorded for financial accounting purposes not currently tax deductible | 4,859 | 5,588 |
Foreign currency translation adjustments | 5,098 | 4,318 |
Accrued and unearned investment income recognized for tax purposes and deferred for financial accounting purposes | 334 | 390 |
Other | 5 | 6 |
Total gross deferred tax assets | 277,887 | 320,143 |
Deferred tax liabilities: | ||
Deferred policy acquisition and sales inducement costs, principally expensed for tax purposes | (309,476) | (311,680) |
Debt securities, principally due to deferred market discount for tax | (9,182) | (8,477) |
Real estate, principally due to adjustments for financial accounting purposes | (1,025) | (1,023) |
Net unrealized gains on securities available for sale | (6,519) | (25,185) |
Fixed assets, due to different depreciation bases | (492) | (757) |
Other | (526) | (4,696) |
Total gross deferred tax liabilities | (327,220) | (351,818) |
Net deferred tax liabilities | $ (49,333) | $ (31,675) |
Information Regarding Control61
Information Regarding Controlling Stockholder Narrative (Details) - Chairman of the Board of Directors and Chief Executive Officer [Member] | Dec. 31, 2015 |
Common Class A [Member] | |
Related Party Transaction [Line Items] | |
Ownership in the company | 99.00% |
Common Class B [Member] | |
Related Party Transaction [Line Items] | |
Ownership in the company | 33.70% |
Pension and Other Postretirem62
Pension and Other Postretirement Plans (Obligations and Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Pension Plans [Member] | ||||
Change in projected benefit obligations: | ||||
Projected benefit obligations at beginning of year | $ 23,328 | $ 21,187 | ||
Service cost | 205 | 168 | $ 190 | |
Interest cost | 983 | 958 | 873 | |
Actuarial loss (gain) | (2,358) | (2,357) | ||
Benefits paid | (1,404) | (1,342) | ||
Projected benefit obligations at end of year | 25,470 | 23,328 | $ 21,187 | |
Change in plan assets: | ||||
Fair value at beginning of year | 19,646 | 18,908 | ||
Actual return on plan assets | (127) | 1,747 | ||
Contributions | 0 | 333 | ||
Benefits paid | (1,404) | (1,342) | ||
Fair value at end of year | 18,115 | 19,646 | 18,908 | |
Funded status at end of year | (7,355) | (3,682) | ||
Chairman and President Non-Qualified Defined Benefit Plans [Member] | ||||
Change in projected benefit obligations: | ||||
Projected benefit obligations at beginning of year | 24,145 | 19,870 | ||
Service cost | 256 | 294 | 177 | |
Interest cost | 876 | 1,003 | 801 | |
Actuarial loss (gain) | (560) | 4,960 | ||
Benefits paid | (1,982) | (1,982) | ||
Projected benefit obligations at end of year | 22,735 | 24,145 | 19,870 | |
Change in plan assets: | ||||
Fair value at beginning of year | 0 | 0 | ||
Contributions | 1,982 | 1,982 | ||
Benefits paid | (1,982) | (1,982) | ||
Fair value at end of year | 0 | 0 | 0 | |
Funded status at end of year | (22,735) | (24,145) | ||
Defined Benefit Postretirement Healthcare Plans [Member] | ||||
Change in projected benefit obligations: | ||||
Projected benefit obligations at beginning of year | 2,890 | 2,725 | ||
Interest cost | 130 | 111 | $ 117 | |
Actuarial loss (gain) | 412 | 107 | ||
Benefits paid | (125) | (53) | ||
Projected benefit obligations at end of year | 3,307 | 2,890 | 2,725 | |
Change in plan assets: | ||||
Fair value at beginning of year | 0 | 0 | ||
Contributions | 125 | 53 | ||
Benefits paid | (125) | (53) | ||
Fair value at end of year | 0 | 0 | $ 0 | |
Funded status at end of year | $ (3,307) | $ (2,890) |
Pension and Other Postretirem63
Pension and Other Postretirement Plans (Amounts Recognized in Financial Statements and Other Comprehensive Income) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Pension Plans [Member] | ||
Amount recognized in the Company's consolidated financial statements | ||
Assets | $ 0 | $ 0 |
Liabilities | (7,355,000) | (3,682,000) |
Net amount recognized | (7,355,000) | (3,682,000) |
Amount recognized in accumulated other comprehensive income | ||
Net loss | 11,039,000 | 8,017,000 |
Prior service cost | 0 | 3,000 |
Net amount recognized | 11,039,000 | 8,020,000 |
Chairman and President Non-Qualified Defined Benefit Plans [Member] | ||
Amount recognized in the Company's consolidated financial statements | ||
Assets | 0 | 0 |
Liabilities | (22,735,000) | (24,145,000) |
Net amount recognized | (22,735,000) | (24,145,000) |
Amount recognized in accumulated other comprehensive income | ||
Net loss | 9,885,000 | 11,959,000 |
Prior service cost | 700,000 | 759,000 |
Net amount recognized | 10,585,000 | 12,718,000 |
Defined Benefit Postretirement Healthcare Plans [Member] | ||
Amount recognized in the Company's consolidated financial statements | ||
Assets | 0 | 0 |
Liabilities | (3,307,000) | (2,890,000) |
Net amount recognized | (3,307,000) | (2,890,000) |
Amount recognized in accumulated other comprehensive income | ||
Net loss | 480,000 | 128,000 |
Prior service cost | 361,000 | 464,000 |
Net amount recognized | $ 841,000 | $ 592,000 |
Pension and Other Postretirem64
Pension and Other Postretirement Plans (Components of Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Pension Plans [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Interest cost | $ 983 | $ 958 | $ 873 | |
Service cost | 205 | 168 | 190 | |
Expected return on plan assets | (1,320) | (1,278) | (1,134) | |
Amortization of prior service cost | 3 | 4 | 4 | |
Amortization of net loss (gain) | 784 | 422 | 812 | |
Net periodic benefit cost | 655 | 274 | 745 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||
Net (gain) loss | 3,806 | 1,888 | ||
Amortization of prior service cost | (3) | (4) | (4) | |
Amortization of net loss (gain) | (784) | (422) | (812) | |
Total recognized in other comprehensive income | 3,019 | 1,462 | ||
Total recognized in net periodic benefit cost and other comprehensive income | 3,674 | 1,736 | ||
Chairman and President Non-Qualified Defined Benefit Plans [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Interest cost | 876 | 1,003 | $ 801 | |
Service cost | 256 | 294 | 177 | |
Amortization of prior service cost | 59 | 59 | 59 | |
Amortization of net loss (gain) | 1,514 | 1,294 | 1,173 | |
Net periodic benefit cost | 2,705 | 2,650 | 2,210 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||
Net (gain) loss | (560) | 4,960 | ||
Amortization of prior service cost | (59) | (59) | (59) | |
Amortization of net loss (gain) | (1,514) | (1,294) | $ (1,173) | |
Total recognized in other comprehensive income | (2,133) | 3,607 | ||
Total recognized in net periodic benefit cost and other comprehensive income | 572 | 6,257 | ||
Defined Benefit Postretirement Healthcare Plans [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Interest cost | 130 | 111 | 117 | |
Amortization of prior service cost | 103 | 103 | 103 | |
Amortization of net loss (gain) | 61 | (4) | 33 | |
Net periodic benefit cost | 294 | 210 | 253 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||
Net (gain) loss | 412 | 107 | ||
Amortization of prior service cost | (103) | (103) | (103) | |
Amortization of net loss (gain) | (61) | 4 | $ (33) | |
Total recognized in other comprehensive income | 248 | 8 | ||
Total recognized in net periodic benefit cost and other comprehensive income | $ 542 | $ 218 |
Pension and Other Postretirem65
Pension and Other Postretirement Plans (Assumptions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Pension Plans [Member] | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 4.00% | 3.75% | |
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate | 3.75% | 4.60% | 3.75% |
Expected long-term return on plan assets | 7.00% | 7.00% | 7.00% |
Chairman and President Non-Qualified Defined Benefit Plans [Member] | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 4.00% | 3.75% | |
Rate of compensation increase | 4.00% | 4.00% | |
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate | 3.75% | 4.60% | 3.75% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Defined Benefit Postretirement Healthcare Plans [Member] | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 4.00% | 3.75% | |
Annual rate of increase in the per capita cost of covered health care benefits | 8.00% | ||
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |||
Effect on total of service and interest cost components, 1% point increase | $ 35 | $ 22 | |
Effect on total of service and interest cost components, 1% point decrease | (26) | (17) | |
Effect on postretirement benefit obligation, 1% point increase | 913 | 595 | |
Effect on postretirement benefit obligation, 1% point decrease | $ (679) | $ (466) |
Pension and Other Postretirem66
Pension and Other Postretirement Plans (Plan Assets) (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)investments | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Defined Benefit Pension Plans [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 18,115,000 | $ 19,646,000 | $ 18,908,000 |
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 100.00% | 100.00% | 100.00% |
Defined Benefit Plan, Assets for Plan Benefits [Abstract] | |||
Planned assets | $ 0 | $ 0 | |
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Percentage pension assets not invested in cash or U.S. Government agencies | 96.00% | ||
Number of different investments | investments | 228 | ||
Acceptable range for each asset class | 2.21% | ||
Defined Benefit Pension Plans [Member] | Level 1 [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 11,844,000 | ||
Defined Benefit Pension Plans [Member] | Level 2 [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 6,271,000 | ||
Defined Benefit Pension Plans [Member] | Level 3 [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | ||
Defined Benefit Pension Plans [Member] | Cash and cash equivalents [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 778,000 | ||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 4.00% | 4.00% | 1.00% |
Defined Benefit Pension Plans [Member] | Cash and cash equivalents [Member] | Level 1 [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 778,000 | ||
Defined Benefit Pension Plans [Member] | Cash and cash equivalents [Member] | Level 2 [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | ||
Defined Benefit Pension Plans [Member] | Cash and cash equivalents [Member] | Level 3 [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 0 | ||
Defined Benefit Pension Plans [Member] | Equity Securities [Member] | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 61.00% | 64.00% | 70.00% |
Defined Benefit Pension Plans [Member] | Equity - Domestic [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 10,684,000 | ||
Defined Benefit Pension Plans [Member] | Equity - Domestic [Member] | Level 1 [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 10,684,000 | ||
Defined Benefit Pension Plans [Member] | Equity - Domestic [Member] | Level 2 [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | ||
Defined Benefit Pension Plans [Member] | Equity - Domestic [Member] | Level 3 [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | ||
Defined Benefit Pension Plans [Member] | Equity - International [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 382,000 | ||
Defined Benefit Pension Plans [Member] | Equity - International [Member] | Level 1 [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 382,000 | ||
Defined Benefit Pension Plans [Member] | Equity - International [Member] | Level 2 [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | ||
Defined Benefit Pension Plans [Member] | Equity - International [Member] | Level 3 [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | ||
Defined Benefit Pension Plans [Member] | U.S. government agencies [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | ||
Defined Benefit Pension Plans [Member] | U.S. government agencies [Member] | Level 1 [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | ||
Defined Benefit Pension Plans [Member] | U.S. government agencies [Member] | Level 2 [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | ||
Defined Benefit Pension Plans [Member] | U.S. government agencies [Member] | Level 3 [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | ||
Defined Benefit Pension Plans [Member] | Corporate bonds [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 6,271,000 | ||
Defined Benefit Pension Plans [Member] | Corporate bonds [Member] | Level 1 [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | ||
Defined Benefit Pension Plans [Member] | Corporate bonds [Member] | Level 2 [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 6,271,000 | ||
Defined Benefit Pension Plans [Member] | Corporate bonds [Member] | Level 3 [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 0 | ||
Defined Benefit Pension Plans [Member] | Debt securities [Member] | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 35.00% | 32.00% | 29.00% |
Chairman and President Non-Qualified Defined Benefit Plans [Member] | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 0 | $ 0 | $ 0 |
Defined Benefit Plan, Assets for Plan Benefits [Abstract] | |||
Planned assets | $ 0 | $ 0 | |
Minimum [Member] | Defined Benefit Pension Plans [Member] | Cash and cash equivalents [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Acceptable range for each asset class | 0.00% | ||
Minimum [Member] | Defined Benefit Pension Plans [Member] | Equity Securities [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Acceptable range for each asset class | 55.00% | ||
Minimum [Member] | Defined Benefit Pension Plans [Member] | Debt securities [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Acceptable range for each asset class | 30.00% | ||
Maximum [Member] | Defined Benefit Pension Plans [Member] | Cash and cash equivalents [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Acceptable range for each asset class | 15.00% | ||
Maximum [Member] | Defined Benefit Pension Plans [Member] | Equity Securities [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Acceptable range for each asset class | 70.00% | ||
Maximum [Member] | Defined Benefit Pension Plans [Member] | Debt securities [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Acceptable range for each asset class | 40.00% |
Pension and Other Postretirem67
Pension and Other Postretirement Plans (Future Pension Benefit Payments) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Defined Benefit Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 1,398 |
2,017 | 1,493 |
2,018 | 1,472 |
2,019 | 1,464 |
2,020 | 1,463 |
2021-2024 | 7,079 |
Chairman and President Non-Qualified Defined Benefit Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 1,982 |
2,017 | 1,982 |
2,018 | 1,982 |
2,019 | 1,982 |
2,020 | 1,982 |
2021-2024 | 9,908 |
Defined Benefit Postretirement Healthcare Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 59 |
2,017 | 63 |
2,018 | 67 |
2,019 | 72 |
2,020 | 76 |
2021-2024 | $ 452 |
Pension and Other Postretirem68
Pension and Other Postretirement Plans (Defined Contribution Pension Plans) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Additional company's matching contribution | 4.00% | 3.00% | ||
Non-Qualified Contribution Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total company contribution, non-qualified deferred compensation | $ 103,667 | $ 99,000 | $ 140,000 | |
401K Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total company contribution, 401(k) plan | $ 489,000 | $ 491,000 | $ 410,000 | |
Company's employee annual contribution percentage for 401K | 4.00% |
Pension and Other Postretirem69
Pension and Other Postretirement Plans (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)benefit_plan | Dec. 31, 2014USD ($) | Dec. 31, 2007 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 25,500,000 | $ 23,300,000 | |
Amortization of net loss | (23,000) | ||
Amortization of prior service cost | $ 103,000 | ||
Average rate of return | 5.80% | ||
Average rate of return, inception to date | 6.96% | ||
Number of non-qualified defined benefit pension plan | benefit_plan | 3 | ||
Chairman and President Non-Qualified Defined Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 19,500,000 | $ 17,700,000 | |
Amortization of net loss | 1,286,000 | ||
Amortization of prior service cost | 59,000 | ||
Defined Benefit Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Vesting percentage in accrued benefits from plan freeze | 100.00% | ||
Amortization of net loss | $ (746,200) |
Pension and Other Postretirem70
Pension and Other Postretirement Plans (Contributions) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Defined Benefit Pension Plans [Member] | Minimum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Adjusted funding target attainment percentage | 80.00% |
Chairman and President Non-Qualified Defined Benefit Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution for next fiscal year | $ 2 |
Short-Term Borrowings Short-Ter
Short-Term Borrowings Short-Term Borrowing (Details) | Dec. 31, 2015USD ($) |
Short-term Debt [Line Items] | |
Collateral security deposit | 110.00% |
Short-term debt | $ 0 |
Amortized value of collateralized assets | 43,500,000 |
Fair value of assets | 45,800,000 |
MNB [Member] | |
Short-term Debt [Line Items] | |
Bank line of credit available to the company | $ 40,000,000 |
Commitments and Contingencies72
Commitments and Contingencies (Details) $ in Thousands, BRL in Millions | Oct. 26, 2011USD ($) | Feb. 03, 2010USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015BRL | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Loss Contingencies [Line Items] | ||||||
Rental expense | $ 200 | $ 100 | $ 400 | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||||
2,015 | 96 | |||||
2017 and thereafter | 192 | |||||
Total | 288 | |||||
Expected contribution in 2015 | 1,800 | |||||
Recovery of nonvested amounts in 2015 | 1,300 | |||||
Guaranty Association Assessments [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Guaranty association assessments | 300 | $ 300 | $ 1,000 | |||
Deferred Annuities Litigation [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Guaranty association assessments | 6,500 | |||||
Sheila Newman case [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Final Judgment amount | $ 208 | |||||
Final Judgment amount, actual damages | 113 | |||||
Final Judgment amount, exemplary damages | $ 150,000 | |||||
Brazilian Superintendence of Private Insurance [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
SUSEP is attempting to impose peal fine | $ 6,000,000 | $ 800 | BRL 3 | |||
Option One [Member] | Deferred Annuities Litigation [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Life Settlement in Years | 10 years | 10 years | ||||
Option Two [Member] | Deferred Annuities Litigation [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Life Settlement in Years | 20 years | 20 years | ||||
New Loans [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Commitments to extend credit relating to mortgage loans | $ 23,100 | |||||
Existing Loans [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Commitments to extend credit relating to mortgage loans | $ 1,700 |
Stockholders' Equity (Changes i
Stockholders' Equity (Changes in Common Stock Shares Outstanding) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Common stock shares outstanding: | |||
Total stockholders’ equity | $ 1,556,320 | $ 1,447,948 | |
Total stockholders’ equity | 1,611,986 | 1,556,320 | $ 1,447,948 |
Common Stock [Member] | |||
Common stock shares outstanding: | |||
Total stockholders’ equity | 3,636 | 3,635 | 3,635 |
Shares exercised under stock option plan | 0 | 1 | 0 |
Total stockholders’ equity | $ 3,636 | $ 3,636 | $ 3,635 |
Stockholders' Equity (Dividend
Stockholders' Equity (Dividend Restrictions) (Details) - USD ($) | Oct. 16, 2015 | Dec. 04, 2013 | Aug. 16, 2013 | Aug. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2015 | Oct. 02, 2015 |
Class of Stock [Line Items] | |||||||
Maximum dividend payment which may be paid without prior approval from Colorado Division of Insurance | $ 117,100,000 | ||||||
Common Class A [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common stock, dividends declared (in dollars per share) | $ 0.36 | $ 0.36 | |||||
Common stock, dividend paid (in dollar per share) | $ 0.36 | $ 0.36 | |||||
Common Class B [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common stock, dividends declared (in dollars per share) | $ 0.18 | $ 0.18 | |||||
Common stock, dividend paid (in dollar per share) | $ 0.18 | $ 0.18 | |||||
Dividend Declared [Member] | |||||||
Class of Stock [Line Items] | |||||||
Dividends payable | $ 3,500,000 | ||||||
Subsidiaries [Member] | Dividend Declared [Member] | |||||||
Class of Stock [Line Items] | |||||||
Dividends payable | $ 15,500,000 |
Stockholders' Equity (Share-Bas
Stockholders' Equity (Share-Based Payments - Options and Stock Appreciation Rights Outstanding) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares Available For Grant, Beginning Balance | 291,000 | ||
Shares Available For Grant, Exercised | 0 | ||
Shares Available For Grant, Forfeited | 0 | ||
Shares Available For Grant, Expired | 0 | ||
Shares Available For Grant, Granted | 0 | ||
Shares Available For Grant, Ending Balance | 291,000 | 291,000 | |
Shares/Awards [Roll Forward] | |||
Options Outstanding, Shares, Beginning Balance | 29,768 | ||
Options Outstanding, Shares, Exercised | (1,000) | ||
Options Outstanding, Shares, Forfeited | (1,000) | ||
Options Outstanding, Shares, Granted | 0 | ||
Options Outstanding, Shares, Expired | 0 | ||
Options Outstanding, Shares, Ending Balance | 27,768 | 29,768 | |
Weighted-Average Exercise Price [Roll Forward] | |||
Options Outstanding, Weighted-Average Exercise Price, Beginning Balance (usd per share) | $ 242.48 | ||
Options Outstanding, Weighted-Average Exercise Price, Exercised (usd per share) | 208.05 | ||
Options Outstanding, Weighted-Average Exercise Price, Forfeited (usd per share) | 255.13 | ||
Options Outstanding, Weighted-Average Exercise Price, Expired (usd per share) | 0 | ||
Options Outstanding, Weighted-Average Exercise Price, Granted (usd per share) | 0 | ||
Options Outstanding, Weighted-Average Exercise Price, Ending Balance (usd per share) | $ 243.26 | $ 242.48 | |
Cash received from options exercised | $ 0 | $ 0.2 | $ 0 |
Total fair value of shares vested | $ 1.1 | $ 1.1 | 0.7 |
Stock Appreciation Rights (SARs) [Member] | |||
Shares/Awards [Roll Forward] | |||
Options Outstanding, Shares, Beginning Balance | 92,186 | ||
Options Outstanding, Shares, Exercised | (5,925) | ||
Options Outstanding, Shares, Forfeited | 0 | ||
Options Outstanding, Shares, Granted | 0 | ||
Options Outstanding, Shares, Ending Balance | 86,261 | 92,186 | |
Weighted-Average Exercise Price [Roll Forward] | |||
Options Outstanding, Weighted-Average Exercise Price, Beginning Balance (usd per share) | $ 157.71 | ||
Options Outstanding, Weighted-Average Exercise Price, Exercised (usd per share) | 142.55 | ||
Options Outstanding, Weighted-Average Exercise Price, Forfeited (usd per share) | 0 | ||
Options Outstanding, Weighted-Average Exercise Price, Granted (usd per share) | 0 | ||
Options Outstanding, Weighted-Average Exercise Price, Ending Balance (usd per share) | $ 158.75 | $ 157.71 | |
Total intrinsic value of options exercised | $ 0.7 | $ 1.1 | 2.5 |
Share-based compensation liabilities paid | $ 0.7 | $ 1.1 | $ 2.5 |
Stockholders' Equity (Share-B76
Stockholders' Equity (Share-Based Payments - Exercise Range) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | 114,029 |
Options Exercisable | 64,240 |
Number Outstanding, Aggregate intrinsic value | $ | $ 8,346 |
Options Exercisable, Aggregate intrinsic value | $ | $ 4,727 |
Share Price | $ / shares | $ 251.94 |
Employee Stock Option [Member] | Exercise Price Range 1 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | 20,768 |
Weighted-Average Remaining Contractual Life | 2 years 3 months 18 days |
Options Exercisable | 20,768 |
Exercise Price | $ / shares | $ 255.13 |
Employee Stock Option [Member] | Exercise Price Range 2 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | 7,000 |
Weighted-Average Remaining Contractual Life | 2 years 6 months |
Options Exercisable | 7,000 |
Exercise Price | $ / shares | $ 208.05 |
Stock Appreciation Rights (SARs) [Member] | Exercise Price Range 3 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | 23,443 |
Weighted-Average Remaining Contractual Life | 3 years 1 month 6 days |
Options Exercisable | 19,264 |
Exercise Price | $ / shares | $ 114.64 |
Stock Appreciation Rights (SARs) [Member] | Exercise Price Range 4 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | 28,318 |
Weighted-Average Remaining Contractual Life | 6 years |
Options Exercisable | 13,608 |
Exercise Price | $ / shares | $ 132.56 |
Stock Appreciation Rights (SARs) [Member] | Exercise Price Range 5 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | 34,500 |
Weighted-Average Remaining Contractual Life | 8 years |
Options Exercisable | 3,600 |
Exercise Price | $ / shares | $ 210.22 |
Stockholders' Equity (Share-B77
Stockholders' Equity (Share-Based Payments - Black Scholes Option Pricing Model Assumptions) (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, minimum | 21.11% | 19.67% |
Expected volatility, maximum | 37.77% | 37.75% |
Expected dividend yield | 0.14% | 0.13% |
Risk-free rate, minimum | 0.22% | 0.13% |
Risk-free rate, maximum | 1.67% | 1.62% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term of options | 2 years 3 months 18 days | 2 years 3 months 18 days |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term of options | 8 years | |
Weighted Average [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, weighted-average | 23.89% | 22.91% |
Risk-free rate, weighted-average | 0.63% | 0.56% |
Stockholders' Equity (Share-B78
Stockholders' Equity (Share-Based Payments - General Descriptions) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 01, 2015 | Sep. 30, 2015 | Jun. 20, 2008 | Jun. 25, 2004 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Adjusted Capital | $ 1,171,203 | $ 1,185,643 | $ 1,126,232 | ||||
Pre-tax compensation cost (benefit) recognized | $ (900) | 4,400 | 5,700 | ||||
Expiration period of awards | 10 years | ||||||
Period in force, from which option holders may elect to sell back acquired shares | 90 days | ||||||
Compensation cost related to nonvested options not yet recognized, weighted-average period of recognition | 2 years | ||||||
Compensation cost, liability balance | $ 7,700 | 9,300 | |||||
Compensation cost (benefit), tax expense (benefit) | 300 | (1,500) | (2,000) | ||||
Period of recognition | $ 1,400 | $ 2,300 | $ 3,700 | ||||
Common Class A [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, par value | $ 0.01 | $ 1 | $ 0.01 | $ 1 | $ 0.01 | $ 1 | |
Common Class B [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, par value | $ 0.01 | $ 1 | $ 0.01 | ||||
Stock and Incentive Plan, 1995 Plan [Member] | Common Class A [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payments, number of shares authorized under plans | 300,000 | ||||||
Stock and Incentive Plan, 2008 Plan [Member] | Common Class A [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payments, number of shares authorized under plans | 300,000 | ||||||
Director [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Requisite service period of awards | 1 year | ||||||
Annual vesting percentage | 20.00% | ||||||
Employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Requisite service period of awards | 3 years | ||||||
Annual vesting percentage | 20.00% | ||||||
Colorado Division of Insurance [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Current authorized control level RBC | $ 108,200 | ||||||
Adjusted Capital | $ 1,200,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income | $ 16,221 | $ 28,858 | $ 21,326 | $ 28,113 | $ 28,466 | $ 29,183 | $ 19,826 | $ 98,396 | $ 105,588 | $ 96,247 | |
Allocation of net income: | |||||||||||
Allocation of undistributed income | $ 97,123 | $ 104,315 | 94,974 | ||||||||
Denominator: | |||||||||||
Antidilutive securities excluded from computation of EPS (shares) | 21,000 | 22,200 | |||||||||
Class A [Member] | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income | $ 95,613 | $ 102,602 | 93,524 | ||||||||
Dividends | (1,237) | (1,237) | (1,237) | ||||||||
Allocation of net income: | |||||||||||
Dividends | 1,237 | 1,237 | 1,237 | ||||||||
Allocation of undistributed income | $ 94,376 | $ 101,365 | $ 92,287 | ||||||||
Denominator: | |||||||||||
Basic earnings per share - weighted-average shares (in shares) | 3,436,000 | 3,436,000 | 3,435,000 | ||||||||
Effect of dilutive stock options (in shares) | 1,000 | 1,000 | 4,000 | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions (in shares) | 3,437,000 | 3,437,000 | 3,439,000 | ||||||||
Basic Earnings Per Share (in dollars per share) | $ 9.05 | $ 4.59 | $ 8.16 | $ 6.03 | $ 7.95 | $ 8.05 | $ 8.26 | $ 5.61 | $ 27.83 | $ 29.87 | $ 27.23 |
Diluted Earnings Per Share (in dollars per share) | 9.04 | 4.59 | 8.16 | 6.03 | 7.94 | 8.05 | 8.25 | 5.61 | $ 27.82 | $ 29.85 | $ 27.19 |
Class B [Member] | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income | $ 2,783 | $ 2,986 | $ 2,723 | ||||||||
Dividends | (36) | (36) | (36) | ||||||||
Allocation of net income: | |||||||||||
Dividends | 36 | 36 | 36 | ||||||||
Allocation of undistributed income | $ 2,747 | $ 2,950 | $ 2,687 | ||||||||
Denominator: | |||||||||||
Basic earnings per share - weighted-average shares (in shares) | 200,000 | 200,000 | 200,000 | ||||||||
Effect of dilutive stock options (in shares) | 0 | 0 | 0 | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions (in shares) | 200,000 | 200,000 | 200,000 | ||||||||
Basic Earnings Per Share (in dollars per share) | 4.52 | 2.29 | 4.08 | 3.02 | 3.98 | 4.03 | 4.13 | 2.80 | $ 13.91 | $ 14.93 | $ 13.61 |
Diluted Earnings Per Share (in dollars per share) | $ 4.52 | $ 2.29 | $ 4.08 | $ 3.02 | $ 3.98 | $ 4.03 | $ 4.13 | $ 2.80 | $ 13.91 | $ 14.93 | $ 13.61 |
Comprehensive Income (Details)
Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | |||
Deferred Costs, Current | $ 50,052 | $ (10,927) | $ 70,870 |
Amounts Before Taxes | |||
Net unrealized holding gains (losses) arising during the period, Before Tax | (61,226) | 19,287 | (64,951) |
Unrealized liquidity losses, Before Tax | 1,572 | 40 | 512 |
Reclassification adjustment for net gains included in net earnings, Before Tax | (3,207) | (7,693) | (4,709) |
Amortization of net unrealized gains (losses) and related to transferred securities, Before Tax | 0 | 0 | 0 |
Net unrealized gains (losses) on securities, Before Tax | (62,861) | 11,634 | (69,148) |
Foreign currency translation adjustments, Before Tax | 215 | (913) | 246 |
Pension liability adjustment, Before Tax | (1,134) | (5,077) | 8,592 |
Other comprehensive income, Before Tax | (63,780) | 5,644 | (60,310) |
Tax (Expense) Benefit | |||
Net unrealized holding gains (losses) arising during the period, Tax | 21,429 | (6,751) | 22,733 |
Unrealized liquidity losses, Tax | (550) | (14) | (179) |
Reclassification adjustment for net gains included in net earnings, Tax | 1,122 | 2,693 | 1,648 |
Amortization of net unrealized gains (losses) and related to transferred securities, Tax | 0 | 0 | 0 |
Net unrealized gains (losses) on securities, Tax | 22,001 | (4,072) | 24,202 |
Foreign currency translation adjustments, Tax | (75) | 357 | 406 |
Pension liability adjustment, Tax | 397 | 1,777 | (3,004) |
Other comprehensive income, Tax | 22,323 | (1,938) | 21,604 |
Amount Net of Taxes | |||
Net unrealized holding gains (losses) arising during the period, Net of Tax | (39,797) | 12,536 | (42,218) |
Unrealized liquidity losses, Net of Tax | (1,022) | (26) | (333) |
Reclassification adjustment for net gains included in net earnings, Net of Tax | (2,085) | (5,000) | (3,061) |
Amortization of net unrealized gains (losses) and related to transferred securities, Net of Tax | 0 | 0 | 0 |
Net unrealized gains (losses) on securities | (40,860) | 7,562 | (44,946) |
Foreign currency translation adjustments, Net of Tax | 140 | (556) | 652 |
Pension liability adjustment, Net of Tax | (737) | (3,300) | 5,588 |
Other comprehensive income (loss) | $ (41,457) | $ 3,706 | $ (38,706) |
Segment and Other Operating I81
Segment and Other Operating Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)customer | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Selected Condensed Consolidated Balance Sheet Items: | |||||||||||
Total segment assets | $ 11,612,576 | $ 11,351,892 | $ 11,612,576 | $ 11,351,892 | $ 10,830,416 | ||||||
Other policyholder liabilities | 155,261 | 139,222 | 155,261 | 139,222 | |||||||
Condensed Consolidated Income Statements: | |||||||||||
Premiums and contract revenues | 175,307 | 170,115 | 167,466 | ||||||||
Net investment income | 379,114 | 505,430 | 660,432 | ||||||||
Other revenues | 28,166 | 21,630 | 23,716 | ||||||||
Realized gains (losses) on investments | 7,209 | 11,605 | 8,653 | ||||||||
Total revenues | 180,583 | $ 106,104 | $ 155,218 | $ 147,890 | 184,315 | $ 159,620 | $ 206,841 | $ 158,003 | 589,796 | 708,780 | 860,267 |
Life and other policy benefits | 67,452 | 54,295 | 60,050 | ||||||||
Amortization of deferred policy acquisition costs | 120,333 | 115,154 | 108,233 | ||||||||
Universal life and annuity contract interest | 176,901 | 298,259 | 454,594 | ||||||||
Other operating expenses | 78,442 | 83,551 | 95,693 | ||||||||
Federal income taxes (benefit) | 45,749 | 47,873 | 42,422 | ||||||||
Taxes on realized gains (losses) on investments | 2,523 | 4,060 | 3,028 | ||||||||
Taxes on earnings from continuing operations | 48,272 | 51,933 | 45,450 | ||||||||
Segment earnings (loss) | 93,710 | 98,043 | 90,622 | ||||||||
Realized gains (losses) on investments, net of taxes | 4,686 | 7,545 | 5,625 | ||||||||
Net earnings | $ 16,221 | $ 28,858 | $ 21,326 | 28,113 | $ 28,466 | $ 29,183 | $ 19,826 | 98,396 | 105,588 | 96,247 | |
Revenues, excluding reinsurance premiums | 194,436 | 189,164 | 186,207 | ||||||||
Reinsurance premiums | (19,129) | (19,049) | (18,741) | ||||||||
United States [Member] | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Revenues, excluding reinsurance premiums | 66,750 | 65,078 | 64,267 | ||||||||
Brazil [Member] | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Revenues, excluding reinsurance premiums | 40,640 | 38,563 | 38,205 | ||||||||
Venezuela [Member] | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Revenues, excluding reinsurance premiums | 15,466 | 14,931 | 14,017 | ||||||||
Taiwan [Member] | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Revenues, excluding reinsurance premiums | 14,882 | 14,166 | 14,047 | ||||||||
Peru | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Revenues, excluding reinsurance premiums | 10,915 | 10,327 | 9,366 | ||||||||
Argentina [Member] | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Revenues, excluding reinsurance premiums | (9,007) | (9,324) | (9,102) | ||||||||
Other foreign countries [Member] | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Revenues, excluding reinsurance premiums | $ 36,776 | 36,775 | 37,203 | ||||||||
Annuities [Member] | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Number of customers | customer | 2 | ||||||||||
Operating Segments [Member] | |||||||||||
Selected Condensed Consolidated Balance Sheet Items: | |||||||||||
Deferred policy acquisition costs and sales inducements | 1,012,617 | 962,685 | $ 1,012,617 | 962,685 | 955,276 | ||||||
Total segment assets | 11,452,630 | 11,187,522 | 11,452,630 | 11,187,522 | 10,657,795 | ||||||
Future policy benefits | 9,699,358 | 9,522,522 | 9,699,358 | 9,522,522 | 9,125,134 | ||||||
Other policyholder liabilities | 155,261 | 139,222 | 155,261 | 139,222 | 142,587 | ||||||
Condensed Consolidated Income Statements: | |||||||||||
Premiums and contract revenues | 175,307 | 170,115 | 167,466 | ||||||||
Net investment income | 379,114 | 505,430 | 660,432 | ||||||||
Other revenues | 28,166 | 21,630 | 23,716 | ||||||||
Total revenues | 582,587 | 697,175 | 851,614 | ||||||||
Life and other policy benefits | 67,452 | 54,295 | 60,050 | ||||||||
Amortization of deferred policy acquisition costs | 120,333 | 115,154 | 108,233 | ||||||||
Universal life and annuity contract interest | 176,901 | 298,259 | 454,594 | ||||||||
Other operating expenses | 78,442 | 83,551 | 95,693 | ||||||||
Federal income taxes (benefit) | 45,749 | 47,873 | 42,422 | ||||||||
Total expenses | 488,877 | 599,132 | 760,992 | ||||||||
Segment earnings (loss) | 93,710 | 98,043 | 90,622 | ||||||||
Operating Segments [Member] | Domestic Life Insurance [Member] | |||||||||||
Selected Condensed Consolidated Balance Sheet Items: | |||||||||||
Deferred policy acquisition costs and sales inducements | 78,650 | 64,279 | 78,650 | 64,279 | 53,540 | ||||||
Total segment assets | 868,466 | 746,051 | 868,466 | 746,051 | 610,570 | ||||||
Future policy benefits | 748,853 | 648,864 | 748,853 | 648,864 | 535,710 | ||||||
Other policyholder liabilities | 14,084 | 12,159 | 14,084 | 12,159 | 11,450 | ||||||
Condensed Consolidated Income Statements: | |||||||||||
Premiums and contract revenues | 30,743 | 28,801 | 29,567 | ||||||||
Net investment income | 27,172 | 34,695 | 33,818 | ||||||||
Other revenues | 56 | 55 | 29 | ||||||||
Total revenues | 57,971 | 63,551 | 63,414 | ||||||||
Life and other policy benefits | 17,905 | 11,856 | 11,660 | ||||||||
Amortization of deferred policy acquisition costs | 8,647 | 6,913 | 6,738 | ||||||||
Universal life and annuity contract interest | 17,799 | 27,050 | 26,427 | ||||||||
Other operating expenses | 12,774 | 13,547 | 15,515 | ||||||||
Federal income taxes (benefit) | 278 | 1,373 | 980 | ||||||||
Total expenses | 57,403 | 60,739 | 61,320 | ||||||||
Segment earnings (loss) | 568 | 2,812 | 2,094 | ||||||||
Operating Segments [Member] | International Life Insurance [Member] | |||||||||||
Selected Condensed Consolidated Balance Sheet Items: | |||||||||||
Deferred policy acquisition costs and sales inducements | 251,790 | 245,353 | 251,790 | 245,353 | 240,468 | ||||||
Total segment assets | 1,260,538 | 1,250,629 | 1,260,538 | 1,250,629 | 1,200,347 | ||||||
Future policy benefits | 944,672 | 953,076 | 944,672 | 953,076 | 913,339 | ||||||
Other policyholder liabilities | 16,710 | 11,898 | 16,710 | 11,898 | 14,618 | ||||||
Condensed Consolidated Income Statements: | |||||||||||
Premiums and contract revenues | 122,393 | 118,838 | 117,668 | ||||||||
Net investment income | 29,400 | 51,539 | 63,504 | ||||||||
Other revenues | 14 | 372 | 299 | ||||||||
Total revenues | 151,807 | 170,749 | 181,471 | ||||||||
Life and other policy benefits | 24,237 | 24,034 | 25,706 | ||||||||
Amortization of deferred policy acquisition costs | 19,975 | 21,807 | 18,946 | ||||||||
Universal life and annuity contract interest | 23,423 | 46,255 | 58,757 | ||||||||
Other operating expenses | 20,706 | 23,449 | 25,624 | ||||||||
Federal income taxes (benefit) | 20,819 | 18,112 | 16,720 | ||||||||
Total expenses | 109,160 | 133,657 | 145,753 | ||||||||
Segment earnings (loss) | 42,647 | 37,092 | 35,718 | ||||||||
Operating Segments [Member] | Annuities [Member] | |||||||||||
Selected Condensed Consolidated Balance Sheet Items: | |||||||||||
Deferred policy acquisition costs and sales inducements | 682,177 | 653,053 | 682,177 | 653,053 | 661,268 | ||||||
Total segment assets | 9,054,951 | 8,933,274 | 9,054,951 | 8,933,274 | 8,586,871 | ||||||
Future policy benefits | 8,005,833 | 7,920,582 | 8,005,833 | 7,920,582 | 7,676,085 | ||||||
Other policyholder liabilities | 124,467 | 115,165 | 124,467 | 115,165 | 116,519 | ||||||
Condensed Consolidated Income Statements: | |||||||||||
Premiums and contract revenues | 22,171 | 22,476 | 20,231 | ||||||||
Net investment income | 300,198 | 398,163 | 543,077 | ||||||||
Other revenues | 50 | 68 | 45 | ||||||||
Total revenues | 322,419 | 420,707 | 563,353 | ||||||||
Life and other policy benefits | 25,310 | 18,405 | 22,684 | ||||||||
Amortization of deferred policy acquisition costs | 91,711 | 86,434 | 82,549 | ||||||||
Universal life and annuity contract interest | 135,679 | 224,954 | 369,410 | ||||||||
Other operating expenses | 25,723 | 27,015 | 33,325 | ||||||||
Federal income taxes (benefit) | 14,432 | 20,964 | 17,660 | ||||||||
Total expenses | 292,855 | 377,772 | 525,628 | ||||||||
Segment earnings (loss) | 29,564 | 42,935 | 37,725 | ||||||||
Operating Segments [Member] | All Others [Member] | |||||||||||
Selected Condensed Consolidated Balance Sheet Items: | |||||||||||
Deferred policy acquisition costs and sales inducements | 0 | 0 | 0 | 0 | 0 | ||||||
Total segment assets | 268,675 | 257,568 | 268,675 | 257,568 | 260,007 | ||||||
Future policy benefits | 0 | 0 | 0 | 0 | 0 | ||||||
Other policyholder liabilities | 0 | 0 | 0 | 0 | 0 | ||||||
Condensed Consolidated Income Statements: | |||||||||||
Premiums and contract revenues | 0 | 0 | 0 | ||||||||
Net investment income | 22,344 | 21,033 | 20,033 | ||||||||
Other revenues | 28,046 | 21,135 | 23,343 | ||||||||
Total revenues | 50,390 | 42,168 | 43,376 | ||||||||
Life and other policy benefits | 0 | 0 | 0 | ||||||||
Amortization of deferred policy acquisition costs | 0 | 0 | 0 | ||||||||
Universal life and annuity contract interest | 0 | 0 | 0 | ||||||||
Other operating expenses | 19,239 | 19,540 | 21,229 | ||||||||
Federal income taxes (benefit) | 10,220 | 7,424 | 7,062 | ||||||||
Total expenses | 29,459 | 26,964 | 28,291 | ||||||||
Segment earnings (loss) | 20,931 | 15,204 | 15,085 | ||||||||
Segment Reconciling Items [Member] | |||||||||||
Selected Condensed Consolidated Balance Sheet Items: | |||||||||||
Total segment assets | $ 159,946 | $ 164,370 | $ 159,946 | $ 164,370 | $ 172,621 | ||||||
Agency Two [Member] | Annuities [Member] | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Major customer, percentage of sales | 10.00% | ||||||||||
Agency One [Member] | Annuities [Member] | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Major customer, percentage of sales | 14.00% |
Fair Value of Financial Instr82
Fair Value of Financial Instruments (Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 2,879,583 | $ 2,728,680 |
Derivatives, index options | 38,409 | 114,287 |
Total assets | 2,917,992 | 2,842,967 |
Policyholder account balances | 58,359 | 133,236 |
Other liabilities | 7,669 | 9,256 |
Total liabilities | $ 66,028 | 142,492 |
Percent of total | 100.00% | |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 17,980 | 16,862 |
Derivatives, index options | 0 | 0 |
Total assets | 17,980 | 16,862 |
Policyholder account balances | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities | $ 0 | 0 |
Percent of total | 0.60% | |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 2,861,603 | 2,711,818 |
Derivatives, index options | 0 | 0 |
Total assets | 2,861,603 | 2,711,818 |
Policyholder account balances | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities | $ 0 | 0 |
Percent of total | 98.10% | |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 0 | 0 |
Derivatives, index options | 38,409 | 114,287 |
Total assets | 38,409 | 114,287 |
Policyholder account balances | 58,359 | 133,236 |
Other liabilities | 7,669 | 9,256 |
Total liabilities | $ 66,028 | 142,492 |
Percent of total | 1.30% | |
Priced by Third-Party Vendors [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | $ 38,409 | |
Priced by Third-Party Vendors [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | 0 | |
Priced by Third-Party Vendors [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | 0 | |
Priced by Third-Party Vendors [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | 38,409 | |
Priced Internally [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | 0 | |
Priced Internally [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | 0 | |
Priced Internally [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | 0 | |
Priced Internally [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | 0 | |
Debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,861,222 | 2,711,377 |
Debt securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Debt securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,861,222 | 2,711,377 |
Debt securities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Debt securities [Member] | Priced by Third-Party Vendors [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,861,222 | |
Debt securities [Member] | Priced by Third-Party Vendors [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
Debt securities [Member] | Priced by Third-Party Vendors [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,861,222 | |
Debt securities [Member] | Priced by Third-Party Vendors [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
Debt securities [Member] | Priced Internally [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
Debt securities [Member] | Priced Internally [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
Debt securities [Member] | Priced Internally [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
Debt securities [Member] | Priced Internally [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 18,361 | 17,303 |
Equity Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 17,980 | 16,862 |
Equity Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 381 | 441 |
Equity Securities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Equity Securities [Member] | Priced by Third-Party Vendors [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 18,361 | |
Equity Securities [Member] | Priced by Third-Party Vendors [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 17,980 | |
Equity Securities [Member] | Priced by Third-Party Vendors [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 381 | |
Equity Securities [Member] | Priced by Third-Party Vendors [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
Equity Securities [Member] | Priced Internally [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
Equity Securities [Member] | Priced Internally [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
Equity Securities [Member] | Priced Internally [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
Equity Securities [Member] | Priced Internally [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
Derivatives, Index Options [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | 38,409 | 114,287 |
Derivatives, Index Options [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | 0 | 0 |
Derivatives, Index Options [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | 0 | 0 |
Derivatives, Index Options [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | $ 38,409 | $ 114,287 |
Fair Value of Financial Instr83
Fair Value of Financial Instruments (Fair Value Measurements for Level 3 Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | $ 114,287 | $ 169,314 |
Total realized and unrealized gains (losses): | ||
Included in net income | (61,750) | 68,616 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases | 86,189 | 73,937 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (100,317) | (197,580) |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 38,409 | 114,287 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | (47,780) | 40,350 |
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 142,492 | 193,338 |
Total realized and unrealized gains (losses): | ||
Included in net income | (61,676) | 73,851 |
Included in comprehensive income (loss) | 0 | 0 |
Purchases | 86,189 | 73,937 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (100,977) | (198,634) |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 66,028 | 142,492 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | (48,707) | 44,722 |
Debt Securities, Available for Sale [Member] | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 0 | 0 |
Total realized and unrealized gains (losses): | ||
Included in net income | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 0 | 0 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | 0 | 0 |
Equity Securities, Available for Sale [Member] | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 0 | 0 |
Total realized and unrealized gains (losses): | ||
Included in net income | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 0 | 0 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | 0 | 0 |
Derivatives, Index Options [Member] | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 114,287 | 169,314 |
Total realized and unrealized gains (losses): | ||
Included in net income | (61,750) | 68,616 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases | 86,189 | 73,937 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (100,317) | (197,580) |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 38,409 | 114,287 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | (47,780) | 40,350 |
Net Investment Income [Member] | ||
Total realized and unrealized gains (losses): | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | (47,780) | 40,350 |
Total realized and unrealized gains (losses): | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | 0 | 0 |
Net Investment Income [Member] | Debt Securities, Available for Sale [Member] | ||
Total realized and unrealized gains (losses): | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | 0 | 0 |
Net Investment Income [Member] | Equity Securities, Available for Sale [Member] | ||
Total realized and unrealized gains (losses): | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | 0 | 0 |
Net Investment Income [Member] | Derivatives, Index Options [Member] | ||
Total realized and unrealized gains (losses): | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | (47,780) | 40,350 |
Other Operating Expense [Member] | ||
Total realized and unrealized gains (losses): | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | 0 | 0 |
Total realized and unrealized gains (losses): | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | (48,707) | 44,722 |
Other Operating Expense [Member] | Debt Securities, Available for Sale [Member] | ||
Total realized and unrealized gains (losses): | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | 0 | 0 |
Other Operating Expense [Member] | Equity Securities, Available for Sale [Member] | ||
Total realized and unrealized gains (losses): | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | 0 | 0 |
Other Operating Expense [Member] | Derivatives, Index Options [Member] | ||
Total realized and unrealized gains (losses): | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | $ 0 | $ 0 |
Fair Value of Financial Instr84
Fair Value of Financial Instruments (Quantitative Information) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Assets | $ 2,917,992 | $ 2,842,967 |
Liabilities | 66,028 | 142,492 |
Level 3 [Member] | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Assets | 38,409 | 114,287 |
Liabilities | 66,028 | 142,492 |
Level 3 [Member] | Derivatives, index options | Broker Prices [Member] | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Assets | 38,409 | 114,287 |
Policyholders Account Balance [Member] | Level 3 [Member] | Deterministic Cash Flow [Member] | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liabilities | 58,359 | 133,236 |
Other Liabilities [Member] | Level 3 [Member] | Black Scholes [Member] | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liabilities | $ 7,669 | $ 9,256 |
Fair Values of Financial Instru
Fair Values of Financial Instruments (Fair Value by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity | $ 7,335,436 | $ 7,175,443 |
Securities available for sale | 2,879,583 | 2,728,680 |
Derivatives, index options | 38,409 | 114,287 |
Carrying Values [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity | 7,173,967 | 6,841,543 |
Securities available for sale | 2,879,583 | 2,728,680 |
Cash and cash equivalents | 106,007 | 277,078 |
Mortgage loans | 108,311 | 149,503 |
Policy loans | 61,957 | 63,645 |
Other loans | 2,779 | 2,171 |
Derivatives, index options | 38,409 | 114,287 |
Life interest in Libbie Shearn Moody Trust | 7,379 | 0 |
Deferred annuity contracts | 7,640,951 | 7,546,504 |
Immediate annuity and supplemental contracts | 434,468 | 446,458 |
Fair Values [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity | 7,335,436 | 7,175,443 |
Securities available for sale | 2,879,583 | 2,728,680 |
Cash and cash equivalents | 106,007 | 277,078 |
Mortgage loans | 111,162 | 156,548 |
Policy loans | 108,550 | 111,040 |
Other loans | 2,957 | 2,300 |
Derivatives, index options | 38,409 | 114,287 |
Life interest in Libbie Shearn Moody Trust | 12,775 | 12,775 |
Deferred annuity contracts | 7,288,108 | 7,178,535 |
Immediate annuity and supplemental contracts | 461,457 | 474,843 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity | 0 | |
Securities available for sale | 17,980 | 16,862 |
Cash and cash equivalents | 106,007 | 277,078 |
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Other loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Life interest in Libbie Shearn Moody Trust | 0 | 0 |
Deferred annuity contracts | 0 | 0 |
Immediate annuity and supplemental contracts | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity | 7,335,436 | 7,175,443 |
Securities available for sale | 2,861,603 | 2,711,818 |
Cash and cash equivalents | 0 | 0 |
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Other loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Life interest in Libbie Shearn Moody Trust | 0 | 0 |
Deferred annuity contracts | 0 | 0 |
Immediate annuity and supplemental contracts | 0 | 0 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity | 0 | 0 |
Securities available for sale | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Mortgage loans | 111,162 | 156,548 |
Policy loans | 108,550 | 111,040 |
Other loans | 2,957 | 2,300 |
Derivatives, index options | 38,409 | 114,287 |
Life interest in Libbie Shearn Moody Trust | 12,775 | 12,775 |
Deferred annuity contracts | 7,288,108 | 7,178,535 |
Immediate annuity and supplemental contracts | $ 461,457 | $ 474,843 |
Derivative Investments (Balance
Derivative Investments (Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivatives, index options | $ 38,409 | $ 114,287 |
Liability Derivatives | 58,359 | 133,236 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives, index options | 38,409 | 114,287 |
Liability Derivatives | 58,359 | 133,236 |
Not Designated as Hedging Instrument [Member] | Equity Index Options [Member] | Derivatives, Index Options [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives, index options | 38,409 | 114,287 |
Not Designated as Hedging Instrument [Member] | Fixed-Index Products [Member] | Universal Life and Annuity Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 58,359 | $ 133,236 |
Derivative Investments (Stateme
Derivative Investments (Statements of Earnings) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ (1,001) | $ (864) | $ (3,505) |
Equity Index Options [Member] | Investment Income [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in Income on Derivative | (61,750) | 68,616 | 225,899 |
Fixed-Index Products [Member] | Universal Life and Annuity Contract Interest [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ 60,749 | $ (69,480) | $ (229,404) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 30, 2015 | |
Related Party Transaction [Line Items] | ||||
Mortgage loan | $ 108,311,000 | $ 149,503,000 | ||
Robert L. Moody, Jr. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Commission paid under agency contracts | 336,844 | |||
Marketing consulting fees | $ 48,000 | |||
Commission and service fees expense | 79,784 | |||
Company paid guest travel | 56,609 | |||
MNB [Member] | ||||
Related Party Transaction [Line Items] | ||||
Commission and service fees expense | 718,022 | |||
RMS [Member] | ||||
Related Party Transaction [Line Items] | ||||
Management fees | 793,574 | |||
American National Insurance Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Premiums paid during the year | 411,519 | |||
Reimbursements for claim costs | 2,024,637 | |||
Premium received | 2,108,997 | |||
Professional fees | 18,000 | |||
Term of agreement (in years) | 2 years | |||
American National Registered Investment Advisory [Member] | ||||
Related Party Transaction [Line Items] | ||||
Professional fees | $ 40,066 | |||
The Company [Member] | Moody Bancshares, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percentage of ownership | 9.50% | |||
RCC [Member] | RMS [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percentage of ownership | 1.00% | |||
Three R Trusts [Member] | RCC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percentage of ownership | 100.00% | |||
Three R Trusts [Member] | RMS [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percentage of ownership | 99.00% | |||
Moody Bancshares, Inc. [Member] | Moody Bank Holding [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percentage of ownership | 100.00% | |||
Moody Bank Holding [Member] | MNB [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percentage of ownership | 98.00% | |||
MNB [Member] | ||||
Related Party Transaction [Line Items] | ||||
Rent per month | $ 6,363 | |||
The Westcap Corporation [Member] | American National Insurance Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Mortgage loan | $ 20,000,000 | |||
Percentage of commercial mortgage ( in percentage) | 24.93% |
Unaudited Quarterly Financial89
Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | $ 180,583 | $ 106,104 | $ 155,218 | $ 147,890 | $ 184,315 | $ 159,620 | $ 206,841 | $ 158,003 | $ 589,796 | $ 708,780 | $ 860,267 |
Earnings (loss) | $ 16,221 | $ 28,858 | $ 21,326 | $ 28,113 | $ 28,466 | $ 29,183 | $ 19,826 | 98,396 | 105,588 | 96,247 | |
Common Class B [Member] | |||||||||||
Earnings (loss) | $ 2,783 | $ 2,986 | $ 2,723 | ||||||||
Basic Earnings Per Share (in dollars per share) | $ 4.52 | $ 2.29 | $ 4.08 | $ 3.02 | $ 3.98 | $ 4.03 | $ 4.13 | $ 2.80 | $ 13.91 | $ 14.93 | $ 13.61 |
Diluted Earnings Per Share (in dollars per share) | 4.52 | 2.29 | 4.08 | 3.02 | 3.98 | 4.03 | 4.13 | 2.80 | $ 13.91 | $ 14.93 | $ 13.61 |
Common Class A [Member] | |||||||||||
Earnings (loss) | $ 95,613 | $ 102,602 | $ 93,524 | ||||||||
Basic Earnings Per Share (in dollars per share) | 9.05 | 4.59 | 8.16 | 6.03 | 7.95 | 8.05 | 8.26 | 5.61 | $ 27.83 | $ 29.87 | $ 27.23 |
Diluted Earnings Per Share (in dollars per share) | $ 9.04 | $ 4.59 | $ 8.16 | $ 6.03 | $ 7.94 | $ 8.05 | $ 8.25 | $ 5.61 | $ 27.82 | $ 29.85 | $ 27.19 |
Schedule I - Summary of Inves90
Schedule I - Summary of Investments Other Than Investments in Related Parties Schedule I - Summary of Investments Other Than Investments in Related Parties (Details) | Dec. 31, 2015USD ($) |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | $ 10,256,845,000 |
Fair Value | |
Balance Sheet Amount | $ 10,289,014,000 |
Corporate [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 3,361,000 |
Fair Value | 5,598,000 |
Balance Sheet Amount | 5,598,000 |
Fixed Maturities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 10,007,665,000 |
Fair Value | 10,196,658,000 |
Balance Sheet Amount | 10,035,189,000 |
Public Utility, Equities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 809,000 |
Fair Value | 1,288,000 |
Balance Sheet Amount | 1,288,000 |
Banks, Trust and Insurance Companies [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,430,000 |
Fair Value | 2,552,000 |
Balance Sheet Amount | 2,552,000 |
Preferred Stock [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 8,116,000 |
Fair Value | 8,923,000 |
Balance Sheet Amount | 8,923,000 |
Equity Securities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 13,716,000 |
Fair Value | 18,361,000 |
Balance Sheet Amount | 18,361,000 |
Derivatives, Index Options [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 38,409,000 |
Balance Sheet Amount | 38,409,000 |
Mortgage Loans [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 108,311,000 |
Balance Sheet Amount | 108,311,000 |
Policy loans [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 61,957,000 |
Balance Sheet Amount | 61,957,000 |
Other Long-term Investments [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 26,787,000 |
Balance Sheet Amount | 26,787,000 |
Real estate acquired through foreclosure | 0 |
Held-to-maturity Securities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 7,173,967,000 |
Fair Value | 7,335,436,000 |
Balance Sheet Amount | 7,173,967,000 |
Held-to-maturity Securities [Member] | US Government and Government Agencies and Authorities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 16,946,000 |
Fair Value | 17,538,000 |
Balance Sheet Amount | 16,946,000 |
Held-to-maturity Securities [Member] | US States and Political Subdivisions Debt Securities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 435,941,000 |
Fair Value | 464,408,000 |
Balance Sheet Amount | 435,941,000 |
Held-to-maturity Securities [Member] | Public Utility [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,044,063,000 |
Fair Value | 1,079,713,000 |
Balance Sheet Amount | 1,044,063,000 |
Held-to-maturity Securities [Member] | Corporate [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 4,160,628,000 |
Fair Value | 4,202,635,000 |
Balance Sheet Amount | 4,160,628,000 |
Held-to-maturity Securities [Member] | Mortgage-backed [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,503,021,000 |
Fair Value | 1,555,807,000 |
Balance Sheet Amount | 1,503,021,000 |
Held-to-maturity Securities [Member] | Asset-Backed [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 13,368,000 |
Fair Value | 15,335,000 |
Balance Sheet Amount | 13,368,000 |
Available-for-sale Securities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 2,833,698,000 |
Fair Value | 2,861,222,000 |
Balance Sheet Amount | 2,861,222,000 |
Available-for-sale Securities [Member] | US States and Political Subdivisions Debt Securities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 586,000 |
Fair Value | 552,000 |
Balance Sheet Amount | 552,000 |
Available-for-sale Securities [Member] | Foreign Government Debt [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 9,947,000 |
Fair Value | 10,355,000 |
Balance Sheet Amount | 10,355,000 |
Available-for-sale Securities [Member] | Public Utility [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 129,980,000 |
Fair Value | 134,559,000 |
Balance Sheet Amount | 134,559,000 |
Available-for-sale Securities [Member] | Corporate [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 2,635,536,000 |
Fair Value | 2,654,165,000 |
Balance Sheet Amount | 2,654,165,000 |
Available-for-sale Securities [Member] | Mortgage-backed [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 36,463,000 |
Fair Value | 39,566,000 |
Balance Sheet Amount | 39,566,000 |
Available-for-sale Securities [Member] | Asset-Backed [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 21,186,000 |
Fair Value | 22,025,000 |
Balance Sheet Amount | $ 22,025,000 |
Schedule V - Valuation and Qu91
Schedule V - Valuation and Qualifying Accounts Schedule V - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Possible Loss on Mortgage Loans [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginnning of period | $ 650 | $ 650 | $ 650 |
Charged to cost and expense | 0 | 0 | 0 |
Reduction | 0 | 0 | 0 |
Transfers | 0 | 0 | 0 |
Balance at end of period | 650 | 650 | 650 |
Allowance for Loan and Lease Losses, Real Estate [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginnning of period | 1,629 | 1,735 | 1,813 |
Charged to cost and expense | 0 | 0 | 0 |
Reduction | 0 | (106) | (78) |
Transfers | 0 | 0 | 0 |
Balance at end of period | $ 1,629 | $ 1,629 | $ 1,735 |