Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 05, 2016 | |
Entity 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-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Class A [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,436,166 | |
Common Class B [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 200,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Investments: | ||
Securities held to maturity, at amortized cost (fair value: $7,525,865 and $7,335,436) | $ 7,195,233 | $ 7,173,967 |
Securities available for sale, at fair value (cost: $2,820,091 and $2,847,414) | 2,924,376 | 2,879,583 |
Mortgage loans, net of allowance for possible losses ($650 and $650) | 110,520 | 108,311 |
Policy loans | 60,488 | 61,957 |
Derivatives, index options | 42,179 | 38,409 |
Other long-term investments | 47,662 | 26,787 |
Total investments | 10,380,458 | 10,289,014 |
Cash and cash equivalents | 141,571 | 106,007 |
Deferred policy acquisition costs | 816,523 | 853,451 |
Deferred sales inducements | 150,080 | 159,166 |
Accrued investment income | 102,040 | 99,619 |
Federal income tax receivable | 2,511 | 12,512 |
Other assets | 90,512 | 92,807 |
Total assets | 11,683,695 | 11,612,576 |
Future policy benefits: | ||
Universal life and annuity contracts | 9,565,173 | 9,561,358 |
Traditional life reserves | 137,819 | 138,000 |
Other policyholder liabilities | 154,199 | 155,261 |
Deferred Federal income tax liability | 70,798 | 49,333 |
Other liabilities | 102,450 | 96,638 |
Total liabilities | $ 10,030,439 | $ 10,000,590 |
COMMITMENTS AND CONTINGENCIES (Note 8) | ||
Common stock: | ||
Additional paid-in capital | $ 41,716 | $ 41,716 |
Accumulated other comprehensive income | 24,340 | 329 |
Retained earnings | 1,587,164 | 1,569,905 |
Total stockholders’ equity | 1,653,256 | 1,611,986 |
Total liabilities and stockholders' equity | 11,683,695 | 11,612,576 |
Common Class A [Member] | ||
Common stock: | ||
Common stock, value outstanding | 34 | 34 |
Common Class B [Member] | ||
Common stock: | ||
Common stock, value outstanding | $ 2 | $ 2 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Securities held to maturity-fair value | $ 7,525,865 | $ 7,335,436 |
Securities available for sale-amortized cost | 2,820,091 | 2,847,414 |
Mortgage loans-allowance for possible losses | $ 650 | $ 650 |
Common Class A [Member] | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
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 (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 200,000 | 200,000 |
Common stock, shares outstanding | 200,000 | 200,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Premiums and other revenues: | ||
Universal life and annuity contract charges | $ 42,010 | $ 37,313 |
Traditional life premiums | 4,173 | 4,347 |
Net investment income | 95,500 | 99,923 |
Other revenues | 4,878 | 5,329 |
Net realized investment gains (losses): | ||
Total other-than-temporary impairment (“OTTI”) gains (losses) | 26 | 160 |
Portion of OTTI (gains) losses recognized in other comprehensive income | (26) | (160) |
Net OTTI losses recognized in earnings | 0 | 0 |
Other net investment gains (losses) | 2,381 | 978 |
Total net realized investment gains (losses) | 2,381 | 978 |
Total condensed consolidated premiums and other revenues | 148,942 | 147,890 |
Benefits and expenses: | ||
Life and other policy benefits | 15,601 | 19,266 |
Amortization of deferred policy acquisition costs | 35,220 | 27,652 |
Universal life and annuity contract interest | 49,017 | 49,039 |
Other operating expenses | 23,307 | 20,510 |
Total benefits and expenses | 123,145 | 116,467 |
Earnings before Federal income taxes | 25,797 | 31,423 |
Federal income taxes | 8,538 | 10,097 |
Net earnings | 17,259 | 21,326 |
Common Class A [Member] | ||
Benefits and expenses: | ||
Net earnings | $ 16,771 | $ 20,723 |
Basic earnings per share: | ||
Earnings Per Share, Basic (in dollars per share) | $ 4.88 | $ 6.03 |
Diluted earnings per share: | ||
Earnings Per Share, Diluted (in dollars per share) | $ 4.88 | $ 6.03 |
Common Class B [Member] | ||
Benefits and expenses: | ||
Net earnings | $ 488 | $ 603 |
Basic earnings per share: | ||
Earnings Per Share, Basic (in dollars per share) | $ 2.44 | $ 3.02 |
Diluted earnings per share: | ||
Earnings Per Share, Diluted (in dollars per share) | $ 2.44 | $ 3.02 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 17,259 | $ 21,326 |
Unrealized gains (losses) on securities: | ||
Net unrealized holding gains (losses) arising during period | 24,646 | 9,372 |
Net unrealized liquidity gains (losses) | 9 | 61 |
Reclassification adjustment for net amounts included in net earnings | (460) | (165) |
Net unrealized gains (losses) on securities | 24,195 | 9,268 |
Foreign currency translation adjustments | 99 | 41 |
Benefit plans: | ||
Amortization of net prior service cost and net gain (loss) | (283) | (303) |
Other comprehensive income (loss) | 24,011 | 9,006 |
Comprehensive income (loss) | $ 41,270 | $ 30,332 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Unrealized gains on non-impaired securities [Member] | Accumulated Other-than-Temporary Impairment [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, 2014 | $ 3,636 | $ 38,116 | $ 54,229 | $ (1,262) | $ (1) | $ 2,685 | $ (13,865) | $ 1,472,782 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Shares exercised under stock option plan | 0 | 0 | ||||||||
Change in unrealized gains (losses) during period, net of tax | $ 9,372 | 9,207 | ||||||||
Amortization | 104 | |||||||||
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 | (43) | 0 | ||||||||
Other-than-temporary impairments, non-credit, net of tax | 0 | |||||||||
Recoveries, net of tax | 0 | |||||||||
Change in translation adjustments during period | 41 | 41 | ||||||||
Amortization of net prior service cost and net loss, net of tax | (303) | (303) | ||||||||
Net earnings | 21,326 | 21,326 | ||||||||
Stockholder dividends | 0 | |||||||||
Total stockholders’ equity at Mar. 31, 2015 | 1,586,652 | 3,636 | 38,116 | $ 50,792 | 63,436 | (1,201) | (1) | 2,726 | (14,168) | 1,494,108 |
Total stockholders’ equity at Dec. 31, 2015 | 1,611,986 | 36 | 41,716 | 12,347 | (240) | (1) | 2,825 | (14,602) | 1,569,905 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Shares exercised under stock option plan | 0 | 0 | ||||||||
Change in unrealized gains (losses) during period, net of tax | 24,646 | 24,186 | ||||||||
Amortization | 17 | |||||||||
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 | (8) | 0 | ||||||||
Other-than-temporary impairments, non-credit, net of tax | 0 | |||||||||
Recoveries, net of tax | 0 | |||||||||
Change in translation adjustments during period | 99 | 99 | ||||||||
Amortization of net prior service cost and net loss, net of tax | (283) | (283) | ||||||||
Net earnings | 17,259 | 17,259 | ||||||||
Stockholder dividends | 0 | |||||||||
Total stockholders’ equity at Mar. 31, 2016 | $ 1,653,256 | $ 36 | $ 41,716 | $ 24,340 | $ 36,533 | $ (231) | $ (1) | $ 2,924 | $ (14,885) | $ 1,587,164 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net earnings | $ 17,259 | $ 21,326 |
Adjustments to reconcile net earnings to net cash from operating activities: | ||
Universal life and annuity contract interest | 49,017 | 49,039 |
Surrender charges and other policy revenues | (5,796) | (3,894) |
Realized (gains) losses on investments | (2,381) | (978) |
Accretion/amortization of discounts and premiums, investments | (23) | (4) |
Depreciation and amortization | 1,985 | 841 |
(Increase) decrease in value of derivatives | 12,901 | 8,287 |
(Increase) decrease in deferred policy acquisition and sales inducement costs | 11,095 | 2,919 |
(Increase) decrease in accrued investment income | (2,421) | (5,418) |
(Increase) decrease in other assets | 188 | (7,227) |
Increase (decrease) in liabilities for future policy benefits | 629 | (129) |
Increase (decrease) in other policyholder liabilities | (1,063) | 14,168 |
Increase (decrease) in Federal income taxes liability | 10,001 | (3,294) |
Increase (decrease) in deferred Federal income tax | 8,536 | 8,327 |
Increase (decrease) in other liabilities | 3,380 | 6,804 |
Net cash provided by operating activities | 103,307 | 90,767 |
Proceeds from sales of: | ||
Securities held to maturity | 0 | 0 |
Securities available for sale | 7,693 | 5,752 |
Other investments | 1,803 | 0 |
Proceeds from maturities and redemptions of: | ||
Securities held to maturity | 54,386 | 101,444 |
Securities available for sale | 72,477 | 48,565 |
Derivatives, index options | 2,090 | 26,450 |
Purchases of: | ||
Securities held to maturity | (75,192) | (271,797) |
Securities available for sale | (49,370) | (152,742) |
Derivatives, index options | (19,332) | (19,166) |
Other investments | (21,517) | (421) |
Net change in short-term investments | 0 | (14,989) |
Principal payments on mortgage loans | 13,354 | 6,907 |
Cost of mortgage loans acquired | (15,542) | (1,281) |
Decrease (increase) in policy loans | 1,469 | (232) |
Other, net | 0 | 0 |
Net cash used in investing activities | (27,681) | (271,510) |
Cash flows from financing activities: | ||
Deposits to account balances for universal life and annuity contracts | 194,091 | 202,472 |
Return of account balances on universal life and annuity contracts | (234,307) | (227,744) |
Issuance of common stock under stock option plan | 0 | 0 |
Net cash provided by (used in) financing activities | (40,216) | (25,272) |
Effect of foreign exchange | 154 | 41 |
Net increase (decrease) in cash and cash equivalents | 35,564 | (205,974) |
Cash and short-term investments at beginning of period | 106,007 | 277,078 |
Cash and short-term investments at end of period | 141,571 | 71,104 |
Cash paid during the period for: | ||
Interest | 13 | 10 |
Income taxes | (10,000) | 5,247 |
Noncash operating activities: | ||
Deferral of sales inducements | $ (2,397) | $ (4,680) |
Consolidation and Basis of Pres
Consolidation and Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation and Basis of Presentation | CONSOLIDATION AND BASIS OF PRESENTATION On October 1, 2015, National Western Life Insurance Company ("National Western", "NWLIC", or "company") completed its previously announced holding company reorganization. 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. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for annual financial statements. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments necessary to present fairly the financial position of NWLGI and its subsidiaries (“Company”) as of March 31, 2016 , and the results of its operations and its cash flows for the for the three months ended March 31, 2016 and 2015 . Such adjustments are of a normal recurring nature. The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results to be expected for the full year. It is recommended that these condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 and are accessible free of charge through the Company's internet site at www.nwlgi.com or the Securities and Exchange Commission internet site at www.sec.gov . The condensed consolidated balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements as of that date. 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. The preparation of financial statements in accordance with GAAP requires 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 condensed 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) valuation allowances for deferred tax assets, (5) other-than-temporary impairment losses on debt securities, (6) commitments and contingencies, 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 three months ended March 31, 2016 and 2015 . Affected Line Item in the Statements of Earnings Amount Reclassified From Accumulated Other Comprehensive Income Three Months Ended March 31, 2016 2015 (In thousands) Other net investment gains (losses) $ 708 254 Net OTTI losses recognized in earnings — — Earnings before Federal income taxes 708 254 Federal income taxes 248 89 Net earnings $ 460 165 |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS 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 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, with early adoption permitted. The Company adopted this standard during the three month period ended March 31, 2016. The adoption of this standard did not have a material impact on the Company’s financial position, results of operations or cash flows. In January 2016, the FASB released accounting standards update 2016-01 Recognition and Measurement of Financial Assets and Liabilities. The main provisions of the update are to eliminate the available for sale classification of accounting for equity securities and to adjust the fair value disclosures for financial instruments carried at amortized costs such that the disclosed fair values represent an exit price as opposed to an entry price. The provisions of this update will require that equity securities be carried at fair market value on the balance sheet and any periodic changes in value will be adjustments to the income statement. The provisions of this update become effective for interim and annual periods beginning after December 15, 2017. The Company does not expect the requirements of this update to have a material impact on the Company’s financial position, results of operations or cash flows. 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. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY NWLIC 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 . National Western did not declare or pay cash dividends on its common stocks during the three months ended March 31, 2016 and 2015. As discussed in Note 1, Consolidation and Basis of Presentation, on October 1, 2015, NWLIC 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 NWLIC from that date forward are payable entirely to NWLGI as the sole owner of NWLIC. The reorganization effective October 1, 2015 provided for the conversion of each share of Class A common stock, par value $1.00 per share, and each share of Class B common stock, par value $1.00 per share, of NWLIC 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. Consequently, NWLGI replaced NWLIC as the publicly held company and is the successor issuer to NWLIC. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share of common stock are computed by dividing net income by the weighted-average basic common shares outstanding during the period. Diluted earnings per share assumes the issuance of common shares applicable to stock options in the denominator. Three Months Ended March 31, 2016 2015 Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net income $ 17,259 21,326 Dividends - Class A shares — — Dividends - Class B shares — — Undistributed income $ 17,259 21,326 Allocation of net income: Dividends $ — — — — Allocation of undistributed income 16,771 488 20,723 603 Net income $ 16,771 488 20,723 603 Denominator: Basic earnings per share - weighted-average shares 3,436 200 3,436 200 Effect of dilutive stock options 1 — 2 — Diluted earnings per share - adjusted weighted-average shares for assumed conversions 3,437 200 3,438 200 Basic Earnings Per Share $ 4.88 2.44 6.03 3.02 Diluted Earnings Per Share $ 4.88 2.44 6.03 3.02 Stock options that were outstanding during the three months ended March 31, 2016 and 2015 , but were not included in the computation of diluted earnings per share because the effect was anti-dilutive, were approximately 20,800 and 21,800 , respectively. |
Pension and Other Postretiremen
Pension and Other Postretirement Plans | 3 Months Ended |
Mar. 31, 2016 | |
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. Fair values of plan assets and liabilities are measured as of the prior December 31 for each respective year. The following table summarizes the components of net periodic benefit cost. Three Months Ended March 31, 2016 2015 (In thousands) Service cost $ 26 51 Interest cost 250 246 Expected return on plan assets (304 ) (330 ) Amortization of prior service cost — 1 Amortization of net loss 193 196 Net periodic benefit cost $ 165 164 The service costs shown in the above table represent 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. The company's minimum required contribution for the 2016 plan year is $0.2 million . There was no remaining contribution payable for the 2015 plan year as of March 31, 2016 . As of March 31, 2016 , the company had contributed a total of $0.0 million to the plan for the 2016 plan year. National Western also sponsors a nonqualified defined benefit plan primarily for senior officers. The plan provides benefits based on the participants' years of service and compensation. The 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"). 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 National Western 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 the plan to allow an additional employee to participate and to change the benefit formula for the then 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, National Western established a second nonqualified defined benefit plan for the benefit of the Chairman and the President 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 nonqualified defined benefit plan, while complying with the requirements of the Act. The following table summarizes the components of net periodic benefit costs for the Chairman and President's nonqualified defined benefit plans. Three Months Ended March 31, 2016 2015 (In thousands) Service cost $ 109 64 Interest cost 265 219 Amortization of prior service cost 15 15 Amortization of net loss 501 378 Net periodic benefit cost $ 890 676 The company expects to contribute $2.0 million to these plans in 2016 . As of March 31, 2016 , the company has contributed $0.4 million to the plans. (B) Defined Benefit Postretirement Healthcare Plans National Western sponsors two healthcare plans to provide postretirement benefits to certain fully-vested individuals. The following table summarizes the components of net periodic benefit costs. Three Months Ended March 31, 2016 2015 (In thousands) Interest cost $ 30 32 Amortization of prior service cost 26 26 Amortization of net loss — 15 Net periodic benefit cost $ 56 73 The company expects to contribute minimal amounts to the plan in 2016 . |
Segment and Other Operating Inf
Segment and Other Operating Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment and Other Operating Information | SEGMENT AND OTHER OPERATING INFORMATION The Company defines its reportable operating segments as domestic life insurance, international life insurance, and annuities. These segments are organized based on product types and geographic marketing areas. A summary of segment information for the quarters ended March 31, 2016 and March 31, 2015 is provided below. Selected Segment Information: Domestic Life Insurance International Life Insurance Annuities All Others Totals (In thousands) March 31, 2016 Condensed Consolidated Balance Sheet Items: Deferred policy acquisition costs and sales inducements $ 76,444 242,788 647,371 — 966,603 Total segment assets 892,147 1,253,574 9,103,314 284,012 11,533,047 Future policy benefits 766,900 936,857 7,999,235 — 9,702,992 Other policyholder liabilities 15,190 12,996 126,013 — 154,199 Three Months Ended March 31, 2016 Condensed Consolidated Income Statements: Premiums and contract revenues $ 7,659 32,788 5,736 — 46,183 Net investment income 6,133 6,847 77,639 4,881 95,500 Other revenues 24 36 60 4,758 4,878 Total revenues 13,816 39,671 83,435 9,639 146,561 Life and other policy benefits 3,621 5,168 6,812 — 15,601 Amortization of deferred acquisition costs 2,011 5,105 28,104 — 35,220 Universal life and annuity contract interest 3,843 5,683 39,491 — 49,017 Other operating expenses 3,575 5,526 9,590 4,616 23,307 Federal income taxes (benefit) 252 5,984 (185 ) 1,653 7,704 Total expenses 13,302 27,466 83,812 6,269 130,849 Segment earnings (loss) $ 514 12,205 (377 ) 3,370 15,712 Selected Segment Information: Domestic Life Insurance International Life Insurance Annuities All Others Totals (In thousands) March 31, 2015 Condensed Consolidated Balance Sheet Items: Deferred policy acquisition costs and sales inducements $ 65,368 249,736 630,240 — 945,344 Total segment assets 783,839 1,246,906 8,988,348 259,212 11,278,305 Future policy benefits 675,837 949,876 7,916,554 — 9,542,267 Other policyholder liabilities 13,661 17,777 121,951 — 153,389 Three Months Ended March 31, 2015 Condensed Consolidated Income Statements: Premiums and contract revenues $ 6,487 30,333 4,840 — 41,660 Net investment income 7,165 8,614 79,236 4,908 99,923 Other revenues 16 86 15 5,212 5,329 Total revenues 13,668 39,033 84,091 10,120 146,912 Life and other policy benefits 5,113 6,205 7,948 — 19,266 Amortization of deferred acquisition costs 3,181 (650 ) 25,121 — 27,652 Universal life and annuity contract interest 4,939 7,130 36,970 — 49,039 Other operating expenses 3,715 5,922 6,178 4,695 20,510 Federal income taxes (benefit) (1,051 ) 6,545 2,523 1,738 9,755 Total expenses 15,897 25,152 78,740 6,433 126,222 Segment earnings (loss) $ (2,229 ) 13,881 5,351 3,687 20,690 Reconciliations of segment information to the Company's condensed consolidated financial statements are provided below. Three Months Ended March 31, 2016 2015 (In thousands) Premiums and Other Revenues : Premiums and contract revenues $ 46,183 41,660 Net investment income 95,500 99,923 Other revenues 4,878 5,329 Realized gains (losses) on investments 2,381 978 Total condensed consolidated premiums and other revenues $ 148,942 147,890 Three Months Ended March 31, 2016 2015 (In thousands) Federal Income Taxes : Total segment Federal income taxes $ 7,704 9,755 Taxes on realized gains (losses) on investments 834 342 Total condensed consolidated Federal income taxes $ 8,538 10,097 Three Months Ended March 31, 2016 2015 (In thousands) Net Earnings : Total segment earnings $ 15,712 20,690 Realized gains (losses) on investments, net of taxes 1,547 636 Total condensed consolidated net earnings $ 17,259 21,326 March 31, 2016 2015 (In thousands) Assets : Total segment assets $ 11,533,047 11,278,305 Other unallocated assets 150,648 183,698 Total condensed consolidated assets $ 11,683,695 11,462,003 |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | SHARE-BASED PAYMENTS The Company had a stock and incentive plan ("1995 Plan") which provided for the grant of any or all of the following types of awards to eligible employees: (1) stock options, including incentive stock options and nonqualified stock options; (2) stock appreciation rights, in tandem with stock options or freestanding; (3) restricted stock or restricted stock units; and, (4) performance awards. 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 ("SARs") or other awards were allowed to be granted, could not exceed 300,000 . 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, $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 current 2008 Plan. 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. Employee grants vest 20% annually following three years of service following the grant date. Directors' grants vest 20% annually following one year of service from the date of grant. Effective during March 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 1995 Plan; however, the program necessitated a change in accounting from the equity classification to the liability classification. In August 2008, the Company implemented another limited stock buy-back program, substantially similar to the 2006 program, for shares issued under the 2008 Plan. On February 17, 2016, the Company granted 14,643 SARs to officers of National Western at the closing market price per Class A common share of $216.48 . These SARs, unlike prior grants, will vest annually at a rate of 33.3% per year from the date of grant. No stock option or SAR awards were issued during the first three months of 2015. While not previously utilized, the 2008 Plan allows for certain other share or unit awards which are solely paid out in cash based on the value of the Company's shares, or changes therein, as well as the financial performance of the Company under pre-determined target performance metrics. Certain awards, such as restricted stock units (RSUs) provide solely for cash settlement based upon the market price of the Company's Class A commons shares, often referred to as "phantom stock-based awards". Unlike share-settled awards, which have a fixed grant-date fair value, the fair value of unsettled or unvested liability awards is remeasured at the end of each reporting period based on the change in fair value of a share. The liability and corresponding expense are adjusted accordingly until the award is settled. Other awards may involve performance share units (PSUs) which are units granted at a specified dollar amount per unit, typically linked to the Company's Class A common share price, that are subsequently multiplied by an attained performance factor to derive the number of PSUs to be paid as cash compensation at the vesting date. On February 17, 2016, the Company granted 5,727 performance stock units and 3,661 restricted stock units to officers of National Western based upon the closing market price per Class A common share of $216.48 . Both the PSUs and RSUs vest three years from the date of grant. The RSUs are payable in cash at the vesting date equal to the closing price of the Company's Class A common share at that time. For PSUs, the performance period begins the first day of the calendar year, in this case January 1, 2016, and runs three years. At that time, the three-year performance outcome will be measured against the pre-defined target amounts to determine the number of PSUs earned as compensation. The Company uses the current fair value method to measure compensation cost. As of March 31, 2016 and 2015 , the liability balance was $6.2 million and $8.4 million , respectively. A summary of shares available for grant and activity is detailed below. Options Outstanding Shares Available For Grant Shares Weighted- Average Exercise Price Stock Options: Balance at January 1, 2016 291,000 27,768 $ 243.26 Exercised — — $ — Forfeited — — $ — Expired — — $ — Stock options granted — — $ — Balance at March 31, 2016 291,000 27,768 $ 243.26 Liability Awards SAR RSU PSU Balance at January 1, 2016 86,261 — — Exercised (275 ) — — Forfeited — — — Granted 14,643 3,661 5,727 Balance at March 31, 2016 100,629 3,661 5,727 Stock options and SARs shown as forfeited in the above tables represent vested and unvested awards not exercised by plan participants prior to their termination from the Company. Forfeited stock options during the three months ended March 31, 2016 were awarded under the 1995 Plan. As the 1995 Plan terminated during calendar year 2010, the forfeited shares are not shown as being added back to the "Shares Available For Grant" balance. The total intrinsic value of SARs exercised was $0.1 million and $0.1 million for the three months ended March 31, 2016 and 2015 , respectively. The total share-based liabilities paid for the exercised SARs were $0 million and $0.1 million for the three months ended March 31, 2016 and 2015 , respectively. The total fair value of stock options and SARs vested during the three months ended March 31, 2016 and 2015 was $0.6 million and $0.3 million , respectively. For the three months ended March 31, 2016 and 2015 , the total cash received from the exercise of stock options under the Plans was $0 million and $0 million , respectively. The following table summarizes information about stock options and SARs outstanding at March 31, 2016 . Options/SARs Outstanding Number Outstanding Weighted- Average Remaining Contractual Life Number Exercisable Exercise prices: 255.13 (options) 20,768 2.1 years 20,768 208.05 (options) 7,000 2.2 years 7,000 114.64 (SARs) 23,268 2.9 years 23,268 132.56 (SARs) 28,218 5.7 years 13,508 210.22 (SARs) 34,500 7.7 years 3,600 216.48 (SARs) 14,643 9.9 years — Totals 128,397 68,144 Aggregate intrinsic value (in thousands) $ 6,536 $ 4,255 The aggregate intrinsic value in the table above is based on the closing stock price of $ 230.63 per share on March 31, 2016 . In estimating the fair value of the share based awards outstanding at March 31, 2016 and December 31, 2015 , the Company employed the Black-Scholes option pricing model with assumptions detailed below. March 31, December 31, Expected term of options 2.0 to 9.9 years 2.3 to 8.0 years Expected volatility: Range 21.95% to 25.44% 21.11% to 37.77% Weighted-average 23.57 % 23.89 % Expected dividend yield 0.16 % 0.14 % Risk-free rate: Range 0.53% to 1.22% 0.22% to 1.67% Weighted-average 0.67 % 0.63 % 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 of the option’s expected exercise date. The pre-tax compensation cost (benefit) recognized in the financial statements related to the two plans defined above was $(1.5) million and $(0.8) million for the three months ended March 31, 2016 and 2015, respectively. The related tax (expense)/benefit recognized was $0.5 million and $0.3 million for the three months ended March 31, 2016 and 2015 , respectively. As of March 31, 2016 , the total compensation cost related to nonvested share based awards not yet recognized was $3.8 million . 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. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
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. 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. 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. National Western was the named defendant in the case of Damaris Maldonado Vinas, et al. vs. National Western Life Insurance , in which the plaintiffs, after National Western had paid the death benefits to the beneficiary (Francisco Iglesias-Alvarez) upon the annuitant’s (Carlos Iglesias-Alvarez) death, sought to annul two annuity policies issued by National Western at the behest of Carlos Iglesias-Alvarez and which named Francisco Iglesias-Alvarez as their beneficiary. On March 31, 2016, the United States District Court for the District of Puerto Rico (the “Court”) issued its Opinion and Order on the pending Motions for Summary Judgment submitted by the parties, and therein denied National Western’s motion and granted plaintiffs’ motion voiding the two annuities and requesting a refund of the premiums paid $(2.9) million . National Western vigorously defended the case and believes that the Court’s Opinion and Order is contrary to applicable law. As such, National Western filed a Motion for Reconsideration of Opinion and Order and Corresponding Judgment with the Court on April 27, 2016, and if unsuccessful National Western intends to appeal the judgment. 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 condensed consolidated balance sheets. 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 $25.9 million commitments to fund new loans and $2.9 million commitments on existing loans to extend credit relating to loans at March 31, 2016 . The Company evaluates each customer's creditworthiness on a case-by-case basis. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS (A) Investment Gains and Losses The table below presents realized investment gains and losses, excluding impairment losses, for the periods indicated. Three Months Ended March 31, 2016 2015 (In thousands) Available for sale debt securities: Realized gains on disposal $ 677 213 Realized losses on disposal (6 ) (9 ) Held to maturity debt securities: Realized gains on disposal 489 724 Realized losses on disposal (106 ) — Equity securities realized gains (losses) 37 50 Real estate gains (losses) 1,290 — Other — — Totals $ 2,381 978 The Company uses the specific identification method in computing realized gains and losses. For the three months ended March 31, 2016 and 2015 the percentage of gains on bonds due to the call of securities was 36% and 75% , respectively. This includes calls out of the Company's available for sale portfolio of debt securities. The table below presents net impairment losses recognized in earnings for the periods indicated. Three Months Ended March 31, 2016 2015 (In thousands) Total other-than-temporary impairment gains (losses) on debt securities $ 26 160 Portion of loss (gain) recognized in comprehensive income (26 ) (160 ) Net impairment losses on debt securities recognized in earnings — — Equity securities impairments — — Totals $ — — 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. For the Three Months Ended March 31, 2016 For the Year Ended (In thousands) Beginning balance, cumulative credit losses related to other-than-temporary impairments $ 2,278 2,298 Reductions for securities sold during current period (629 ) (20 ) Additions for credit losses not previously recognized in other-than-temporary impairments — — Ending balance, cumulative credit losses related to other-than-temporary impairments $ 1,649 2,278 (B) Debt and Equity Securities The table below presents amortized costs and fair values of securities held to maturity at March 31, 2016 . Securities Held to Maturity Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: U.S. agencies $ 10,015 183 — 10,198 U.S. Treasury 1,928 342 — 2,270 States and political subdivisions 441,630 37,605 (26 ) 479,209 Public utilities 1,094,032 63,064 (2,326 ) 1,154,770 Corporate 4,159,049 177,686 (33,112 ) 4,303,623 Residential mortgage-backed 1,475,990 85,835 (421 ) 1,561,404 Home equity 10,639 1,618 — 12,257 Manufactured housing 1,950 184 — 2,134 Totals $ 7,195,233 366,517 (35,885 ) 7,525,865 The table below presents amortized costs and fair values of securities available for sale at March 31, 2016 . Securities Available for Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: States and political subdivisions $ 584 — (20 ) 564 Foreign governments 9,949 636 — 10,585 Public utilities 162,228 7,879 (996 ) 169,111 Corporate 2,586,105 113,956 (25,493 ) 2,674,568 Residential mortgage-backed 33,606 3,183 (35 ) 36,754 Home equity 13,050 357 (31 ) 13,376 Manufactured housing 931 21 — 952 2,806,453 126,032 (26,575 ) 2,905,910 Equity securities 13,638 5,032 (204 ) 18,466 Totals $ 2,820,091 131,064 (26,779 ) 2,924,376 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 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 March 31, 2016 . Securities 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: States and political subdivisions $ 1,336 (17 ) 1,491 (9 ) 2,827 (26 ) Public utilities 46,415 (1,743 ) 26,439 (583 ) 72,854 (2,326 ) Corporate 528,338 (21,958 ) 311,381 (11,154 ) 839,719 (33,112 ) Residential mortgage-backed — — 38,165 (421 ) 38,165 (421 ) Total temporarily impaired securities $ 576,089 (23,718 ) 377,476 (12,167 ) 953,565 (35,885 ) 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 March 31, 2016 . Securities 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: States and political subdivisions $ — — 564 (20 ) 564 (20 ) Public utilities 26,010 (996 ) — — 26,010 (996 ) Corporate 232,775 (10,073 ) 150,985 (15,420 ) 383,760 (25,493 ) Residential mortgage-backed 1,566 (35 ) — — 1,566 (35 ) Home equity — — 4,804 (31 ) 4,804 (31 ) 260,351 (11,104 ) 156,353 (15,471 ) 416,704 (26,575 ) Equity securities 620 (153 ) 181 (51 ) 801 (204 ) Total temporarily impaired securities $ 260,971 (11,257 ) 156,534 (15,522 ) 417,505 (26,779 ) Unrealized losses for securities held to maturity and securities available for sale decreased during the first three months of 2016 due primarily to the downward movement in market interest rates. The Company does not consider investments with unrealized losses to be other-than-temporarily impaired since it does not anticipate selling these securities prior to maturity and expects to receive all amounts due relative to principal and interest. 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 . Securities 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: States 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 ) 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 that the individual securities have been in a continuous unrealized loss position at December 31, 2015 . Securities 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: States 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 when the market decline is attributable to factors such as interest rate movements, market volatility, liquidity, spread widening and credit quality and when recovery of all amounts due under the contractual terms of the security is anticipated. Based on the review and the Company's ability and intent not to sell these securities until maturity, the Company does not consider these investments to be other-than-temporarily impaired at March 31, 2016 . 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. During the first quarter of 2016, the Company recorded no other-than-temporary impairment on debt and equity securities. Debt securities. The gross unrealized losses for debt securities are made up of 156 individual issues, or 11.7% of the total debt securities held by the Company. The market value of these bonds as a percent of amortized cost averages 95.6% . Of the 156 securities, 72 , or 46.2% , fall in the 12 months or greater aging category; and 144 were rated investment grade at March 31, 2016 . Equity securities. The gross unrealized losses for equity securities are made up of 25 individual issues. These holdings are reviewed quarterly for impairment. The amortized cost and fair value of investments in debt securities at March 31, 2016 , 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 $ 104,883 107,348 197,771 200,277 Due after 1 year through 5 years 854,799 915,279 1,682,002 1,819,497 Due after 5 years through 10 years 1,757,807 1,789,908 3,537,404 3,626,374 Due after 10 years 41,377 42,293 289,477 303,922 2,758,866 2,854,828 5,706,654 5,950,070 Mortgage and asset-backed securities 47,587 51,082 1,488,579 1,575,795 Total $ 2,806,453 2,905,910 7,195,233 7,525,865 (C) Transfer of Securities During the three months ended March 31, 2016 and 2015 , the Company made no transfers from the held to maturity category to securities available for sale. (D) 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. Mortgage, equity, participation and mezzanine loans on real estate are considered financing receivables reported by the Company. 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. 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 Condensed 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 had no mortgage loans past due 90 days or more at March 31, 2016 or 2015 and as a result all interest income was recognized at March 31, 2016 and 2015 . The following table represents the mortgage loan portfolio by loan-to-value ratio. March 31, 2016 December 31, 2015 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Loan-to-Value Ratio (1): Less than 50% $ 47,384 42.6 $ 64,986 59.7 50% to 60% 9,931 8.9 9,714 8.9 60% to 70% 29,831 26.9 10,134 9.3 70% to 80% — — 4,843 4.4 80% to 90% 24,024 21.6 19,284 17.7 Greater than 90% — — — — Gross balance 111,170 100.0 108,961 100.0 Allowance for possible losses (650 ) (0.6 ) (650 ) (0.6 ) Totals $ 110,520 99.4 $ 108,311 99.4 (1) Loan-to-Value Ratio determined 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. 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 may indicate a potential problem include: 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 investment gains (losses) in the Condensed Consolidated Statements of Earnings. The following table represents the mortgage loan allowance. March 31, 2016 December 31, 2015 (In thousands) Balance, beginning of period $ 650 650 Provision — — Releases — — Balance, end of period $ 650 650 The Company's direct investments in real estate are not a significant portion of its total investment portfolio totaling approximately $32.5 million and $16.3 million at March 31, 2016 and December 31, 2015 , respectively. During the quarter ended March 31, 2016 the Company purchased two properties, one located in Cypress, Texas and the other in Tupelo, Mississippi for a total of $16.8 million . The Company recognized operating income on these properties of approximately $0.5 million for the first three months of 2016 . In addition, the Company recorded a net realized investment gain on a disposed property located in Brazoria county, Texas of $1.3 million in the quarter ended March 31, 2016. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
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 the required 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 Condensed 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 tables set forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of the date indicated: March 31, 2016 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available for sale $ 2,905,910 — 2,905,910 — Equity securities, available for sale 18,466 18,136 330 — Derivatives, index options 42,179 — — 42,179 Total assets $ 2,966,555 18,136 2,906,240 42,179 Policyholder account balances (a) $ 63,308 — — 63,308 Other liabilities (b) 6,162 — — 6,162 Total liabilities $ 69,470 — — 69,470 During the three months ended March 31, 2016 , the Company had no transfers into or out of Levels 1, 2 or 3. 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 (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 tables present, by pricing source and fair value hierarchy level, the Company’s assets that are measured at fair value on a recurring basis: March 31, 2016 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available for sale: Priced by third-party vendors $ 2,905,910 — 2,905,910 — Priced internally — — — — Subtotal 2,905,910 — 2,905,910 — Equity securities, available for sale: Priced by third-party vendors 18,466 18,136 330 — Priced internally — — — — Subtotal 18,466 18,136 330 — Derivatives, index options: Priced by third-party vendors 42,179 — — 42,179 Priced internally — — — — Subtotal 42,179 — — 42,179 Total $ 2,966,555 18,136 2,906,240 42,179 Percent of total 100.0 % 0.6 % 98.0 % 1.4 % December 31, 2015 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, 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 following tables provide additional information about fair value measurements for which significant unobservable (Level 3) inputs were utilized to determine fair value. For the Three Months Ended March 31, 2016 Debt Securities, Available for Sale Equity Securities, Available for Sale Derivatives, Index Options Total Assets Other Liabilities (In thousands) Balance at January 1, 2016 $ — — 38,409 38,409 66,028 Total realized and unrealized gains (losses): Included in net income — — (12,901 ) (12,901 ) (13,423 ) Purchases, sales, issuances and settlements, net: Purchases — — 18,493 18,493 18,493 Sales — — — — — Issuances — — — — — Settlements — — (1,822 ) (1,822 ) (1,628 ) Transfers into (out of) Level 3 — — — — — Balance at end of period $ — — 42,179 42,179 69,470 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 $ — — (11,362 ) (11,362 ) — Benefits and expenses — — — — (13,064 ) Total $ — — (11,362 ) (11,362 ) (13,064 ) For the Three Months ended March 31, 2015 Debt Securities, Available for Sale Equity Securities, Available for Sale Derivatives, Index Options Total Assets Other Liabilities (In thousands) Balance at January 1, 2015 $ — — 114,287 114,287 142,492 Total realized and unrealized gains (losses): Included in net income — — (8,287 ) (8,287 ) (12,383 ) Included in other comprehensive income — — — — — Purchases, sales, issuances and settlements, net: Purchases — — 18,456 18,456 18,456 Sales — — — — — Issuances — — — — — Settlements — — (28,469 ) (28,469 ) (28,578 ) Transfers into (out of) Level 3 — — — — — Balance at end of period $ — — 95,987 95,987 119,987 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 $ — — (6,843 ) (6,843 ) — Benefits and expenses — — — — (787 ) Total $ — — (6,843 ) (6,843 ) (787 ) The following tables show the quantitative information about the Company's level 3 assets and liabilities. March 31, 2016 Fair Value Valuation Technique Unobservable Input (In thousands) Derivatives, index options $ 42,179 Broker prices Implied volatility Inputs from broker proprietary models Total assets $ 42,179 Policyholder account balances $ 63,308 Deterministic cash flow model Projected option cost Other liabilities 6,162 Black-Scholes model Expected term Forfeiture assumptions Total liabilities $ 69,470 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 model Expected term Forfeiture assumptions Total liabilities $ 66,028 Realized gains (losses) on debt and equity securities are reported in the Condensed Consolidated Statements of Earnings as net investment gains (losses). Unrealized gains (losses) on available for sale debt and equity securities are reported as other comprehensive income (loss) within the stockholders' equity of the Condensed 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. The carrying amounts and fair values of the Company's financial instruments are as follows: March 31, 2016 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 $ 7,195,233 7,525,864 — 7,525,864 — Securities available for sale 2,924,376 2,924,376 18,136 2,906,240 — Cash and cash equivalents 141,571 141,571 141,571 — — Mortgage loans 110,520 113,436 — — 113,436 Policy loans 60,488 112,860 — — 112,860 Other loans 7,502 7,895 — — 7,895 Derivatives, index options 42,179 42,179 — — 42,179 Life interest in Trust 7,379 12,775 — — 12,775 LIABILITIES Deferred annuity contracts $ 7,626,304 7,265,074 — — 7,265,074 Immediate annuity and supplemental contracts 445,075 482,769 — — 482,769 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 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 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 condensed consolidated balance sheets. 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 and 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 condensed consolidated financial statements. The changes in the values of the index options and the changes in the policyholder liabilities are both reflected in the Condensed Consolidated Statements of Earnings. Any changes relative to the embedded derivatives associated with policy contracts are reflected in contract interest in the Condensed 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 Condensed 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 as of March 31, 2016 and December 31, 2015 , respectively. March 31, 2016 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 $ 42,179 Fixed-index products Universal Life and Annuity Contracts $ 63,308 Total $ 42,179 $ 63,308 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 The table below presents the effect of derivative instruments in the Condensed Consolidated Statements of Earnings for the three months ended March 31, 2016 and 2015 . March 31, March 31, Derivatives Not Designated As Hedging Instruments Location of Gain or (Loss) Recognized In Income on Derivatives Amount of Gain or (Loss) Recognized in Income on Derivatives (In thousands) Equity index options Net investment income $ (12,901 ) (8,287 ) Fixed-index products Universal life and annuity contract interest 11,722 11,596 $ (1,179 ) 3,309 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Subsequent events have been evaluated and no reportable items were identified. |
Consolidation and Basis of Pr20
Consolidation and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | 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 three months ended March 31, 2016 and 2015 . Affected Line Item in the Statements of Earnings Amount Reclassified From Accumulated Other Comprehensive Income Three Months Ended March 31, 2016 2015 (In thousands) Other net investment gains (losses) $ 708 254 Net OTTI losses recognized in earnings — — Earnings before Federal income taxes 708 254 Federal income taxes 248 89 Net earnings $ 460 165 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Three Months Ended March 31, 2016 2015 Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net income $ 17,259 21,326 Dividends - Class A shares — — Dividends - Class B shares — — Undistributed income $ 17,259 21,326 Allocation of net income: Dividends $ — — — — Allocation of undistributed income 16,771 488 20,723 603 Net income $ 16,771 488 20,723 603 Denominator: Basic earnings per share - weighted-average shares 3,436 200 3,436 200 Effect of dilutive stock options 1 — 2 — Diluted earnings per share - adjusted weighted-average shares for assumed conversions 3,437 200 3,438 200 Basic Earnings Per Share $ 4.88 2.44 6.03 3.02 Diluted Earnings Per Share $ 4.88 2.44 6.03 3.02 |
Pension and Other Postretirem22
Pension and Other Postretirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Defined Benefit Pension Plans [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Periodic Benefit Costs | The following table summarizes the components of net periodic benefit cost. Three Months Ended March 31, 2016 2015 (In thousands) Service cost $ 26 51 Interest cost 250 246 Expected return on plan assets (304 ) (330 ) Amortization of prior service cost — 1 Amortization of net loss 193 196 Net periodic benefit cost $ 165 164 |
Chairman and President Non-Qualified Defined Benefit Plans [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Periodic Benefit Costs | The following table summarizes the components of net periodic benefit costs for the Chairman and President's nonqualified defined benefit plans. Three Months Ended March 31, 2016 2015 (In thousands) Service cost $ 109 64 Interest cost 265 219 Amortization of prior service cost 15 15 Amortization of net loss 501 378 Net periodic benefit cost $ 890 676 |
Defined Benefit Postretirement Healthcare Plans [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Periodic Benefit Costs | The following table summarizes the components of net periodic benefit costs. Three Months Ended March 31, 2016 2015 (In thousands) Interest cost $ 30 32 Amortization of prior service cost 26 26 Amortization of net loss — 15 Net periodic benefit cost $ 56 73 |
Segment and Other Operating I23
Segment and Other Operating Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Summary of Segment Information, by Quarter | A summary of segment information for the quarters ended March 31, 2016 and March 31, 2015 is provided below. Selected Segment Information: Domestic Life Insurance International Life Insurance Annuities All Others Totals (In thousands) March 31, 2016 Condensed Consolidated Balance Sheet Items: Deferred policy acquisition costs and sales inducements $ 76,444 242,788 647,371 — 966,603 Total segment assets 892,147 1,253,574 9,103,314 284,012 11,533,047 Future policy benefits 766,900 936,857 7,999,235 — 9,702,992 Other policyholder liabilities 15,190 12,996 126,013 — 154,199 Three Months Ended March 31, 2016 Condensed Consolidated Income Statements: Premiums and contract revenues $ 7,659 32,788 5,736 — 46,183 Net investment income 6,133 6,847 77,639 4,881 95,500 Other revenues 24 36 60 4,758 4,878 Total revenues 13,816 39,671 83,435 9,639 146,561 Life and other policy benefits 3,621 5,168 6,812 — 15,601 Amortization of deferred acquisition costs 2,011 5,105 28,104 — 35,220 Universal life and annuity contract interest 3,843 5,683 39,491 — 49,017 Other operating expenses 3,575 5,526 9,590 4,616 23,307 Federal income taxes (benefit) 252 5,984 (185 ) 1,653 7,704 Total expenses 13,302 27,466 83,812 6,269 130,849 Segment earnings (loss) $ 514 12,205 (377 ) 3,370 15,712 Selected Segment Information: Domestic Life Insurance International Life Insurance Annuities All Others Totals (In thousands) March 31, 2015 Condensed Consolidated Balance Sheet Items: Deferred policy acquisition costs and sales inducements $ 65,368 249,736 630,240 — 945,344 Total segment assets 783,839 1,246,906 8,988,348 259,212 11,278,305 Future policy benefits 675,837 949,876 7,916,554 — 9,542,267 Other policyholder liabilities 13,661 17,777 121,951 — 153,389 Three Months Ended March 31, 2015 Condensed Consolidated Income Statements: Premiums and contract revenues $ 6,487 30,333 4,840 — 41,660 Net investment income 7,165 8,614 79,236 4,908 99,923 Other revenues 16 86 15 5,212 5,329 Total revenues 13,668 39,033 84,091 10,120 146,912 Life and other policy benefits 5,113 6,205 7,948 — 19,266 Amortization of deferred acquisition costs 3,181 (650 ) 25,121 — 27,652 Universal life and annuity contract interest 4,939 7,130 36,970 — 49,039 Other operating expenses 3,715 5,922 6,178 4,695 20,510 Federal income taxes (benefit) (1,051 ) 6,545 2,523 1,738 9,755 Total expenses 15,897 25,152 78,740 6,433 126,222 Segment earnings (loss) $ (2,229 ) 13,881 5,351 3,687 20,690 |
Reconciliation of Segment Premiums and Other Revenues to Condensed Consolidated Financial Statements | Reconciliations of segment information to the Company's condensed consolidated financial statements are provided below. Three Months Ended March 31, 2016 2015 (In thousands) Premiums and Other Revenues : Premiums and contract revenues $ 46,183 41,660 Net investment income 95,500 99,923 Other revenues 4,878 5,329 Realized gains (losses) on investments 2,381 978 Total condensed consolidated premiums and other revenues $ 148,942 147,890 |
Reconciliation of Segment Federal Income Taxes to Condensed Consolidated Financial Statements | Three Months Ended March 31, 2016 2015 (In thousands) Federal Income Taxes : Total segment Federal income taxes $ 7,704 9,755 Taxes on realized gains (losses) on investments 834 342 Total condensed consolidated Federal income taxes $ 8,538 10,097 |
Reconciliation of Segment Net Earnings to Condensed Consolidated Financial Statements | Three Months Ended March 31, 2016 2015 (In thousands) Net Earnings : Total segment earnings $ 15,712 20,690 Realized gains (losses) on investments, net of taxes 1,547 636 Total condensed consolidated net earnings $ 17,259 21,326 |
Reconciliation of Segment Assets to Condensed Consolidated Financial Statements | March 31, 2016 2015 (In thousands) Assets : Total segment assets $ 11,533,047 11,278,305 Other unallocated assets 150,648 183,698 Total condensed consolidated assets $ 11,683,695 11,462,003 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Shares Available for Grant and Stock Option Activity | A summary of shares available for grant and activity is detailed below. Options Outstanding Shares Available For Grant Shares Weighted- Average Exercise Price Stock Options: Balance at January 1, 2016 291,000 27,768 $ 243.26 Exercised — — $ — Forfeited — — $ — Expired — — $ — Stock options granted — — $ — Balance at March 31, 2016 291,000 27,768 $ 243.26 |
Schedule of Stock Appreciation Rights Activity | Liability Awards SAR RSU PSU Balance at January 1, 2016 86,261 — — Exercised (275 ) — — Forfeited — — — Granted 14,643 3,661 5,727 Balance at March 31, 2016 100,629 3,661 5,727 |
Summary of Information About Stock Options and SARs Outstanding | The following table summarizes information about stock options and SARs outstanding at March 31, 2016 . Options/SARs Outstanding Number Outstanding Weighted- Average Remaining Contractual Life Number Exercisable Exercise prices: 255.13 (options) 20,768 2.1 years 20,768 208.05 (options) 7,000 2.2 years 7,000 114.64 (SARs) 23,268 2.9 years 23,268 132.56 (SARs) 28,218 5.7 years 13,508 210.22 (SARs) 34,500 7.7 years 3,600 216.48 (SARs) 14,643 9.9 years — Totals 128,397 68,144 Aggregate intrinsic value (in thousands) $ 6,536 $ 4,255 |
Summary of Assumptions Employed Using Black-Scholes Option Pricing Model | In estimating the fair value of the share based awards outstanding at March 31, 2016 and December 31, 2015 , the Company employed the Black-Scholes option pricing model with assumptions detailed below. March 31, December 31, Expected term of options 2.0 to 9.9 years 2.3 to 8.0 years Expected volatility: Range 21.95% to 25.44% 21.11% to 37.77% Weighted-average 23.57 % 23.89 % Expected dividend yield 0.16 % 0.14 % Risk-free rate: Range 0.53% to 1.22% 0.22% to 1.67% Weighted-average 0.67 % 0.63 % |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Realized Investment Gains (Losses), Excluding Impairment Losses | The table below presents realized investment gains and losses, excluding impairment losses, for the periods indicated. Three Months Ended March 31, 2016 2015 (In thousands) Available for sale debt securities: Realized gains on disposal $ 677 213 Realized losses on disposal (6 ) (9 ) Held to maturity debt securities: Realized gains on disposal 489 724 Realized losses on disposal (106 ) — Equity securities realized gains (losses) 37 50 Real estate gains (losses) 1,290 — Other — — Totals $ 2,381 978 |
Net Impairment Losses Recognized in Earnings | The table below presents net impairment losses recognized in earnings for the periods indicated. Three Months Ended March 31, 2016 2015 (In thousands) Total other-than-temporary impairment gains (losses) on debt securities $ 26 160 Portion of loss (gain) recognized in comprehensive income (26 ) (160 ) Net impairment losses on debt securities recognized in earnings — — Equity securities impairments — — Totals $ — — |
Credit Losses on Securities, Also Recorded as Non-Credit Other-than-Temporary Impairments in Other Comprehensive Loss | 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. For the Three Months Ended March 31, 2016 For the Year Ended (In thousands) Beginning balance, cumulative credit losses related to other-than-temporary impairments $ 2,278 2,298 Reductions for securities sold during current period (629 ) (20 ) Additions for credit losses not previously recognized in other-than-temporary impairments — — Ending balance, cumulative credit losses related to other-than-temporary impairments $ 1,649 2,278 |
Schedule of Held-to-Maturity 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 held to maturity at March 31, 2016 . Securities Held to Maturity Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: U.S. agencies $ 10,015 183 — 10,198 U.S. Treasury 1,928 342 — 2,270 States and political subdivisions 441,630 37,605 (26 ) 479,209 Public utilities 1,094,032 63,064 (2,326 ) 1,154,770 Corporate 4,159,049 177,686 (33,112 ) 4,303,623 Residential mortgage-backed 1,475,990 85,835 (421 ) 1,561,404 Home equity 10,639 1,618 — 12,257 Manufactured housing 1,950 184 — 2,134 Totals $ 7,195,233 366,517 (35,885 ) 7,525,865 |
Schedule of Available-for-Sale Securities | The table below presents amortized costs and fair values of securities available for sale at March 31, 2016 . Securities Available for Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: States and political subdivisions $ 584 — (20 ) 564 Foreign governments 9,949 636 — 10,585 Public utilities 162,228 7,879 (996 ) 169,111 Corporate 2,586,105 113,956 (25,493 ) 2,674,568 Residential mortgage-backed 33,606 3,183 (35 ) 36,754 Home equity 13,050 357 (31 ) 13,376 Manufactured housing 931 21 — 952 2,806,453 126,032 (26,575 ) 2,905,910 Equity securities 13,638 5,032 (204 ) 18,466 Totals $ 2,820,091 131,064 (26,779 ) 2,924,376 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 |
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 March 31, 2016 . Securities 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: States and political subdivisions $ 1,336 (17 ) 1,491 (9 ) 2,827 (26 ) Public utilities 46,415 (1,743 ) 26,439 (583 ) 72,854 (2,326 ) Corporate 528,338 (21,958 ) 311,381 (11,154 ) 839,719 (33,112 ) Residential mortgage-backed — — 38,165 (421 ) 38,165 (421 ) Total temporarily impaired securities $ 576,089 (23,718 ) 377,476 (12,167 ) 953,565 (35,885 ) 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 . Securities 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: States 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 ) 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 that the individual securities have been in a continuous unrealized loss position at December 31, 2015 . Securities 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: States 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 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 March 31, 2016 . Securities 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: States and political subdivisions $ — — 564 (20 ) 564 (20 ) Public utilities 26,010 (996 ) — — 26,010 (996 ) Corporate 232,775 (10,073 ) 150,985 (15,420 ) 383,760 (25,493 ) Residential mortgage-backed 1,566 (35 ) — — 1,566 (35 ) Home equity — — 4,804 (31 ) 4,804 (31 ) 260,351 (11,104 ) 156,353 (15,471 ) 416,704 (26,575 ) Equity securities 620 (153 ) 181 (51 ) 801 (204 ) Total temporarily impaired securities $ 260,971 (11,257 ) 156,534 (15,522 ) 417,505 (26,779 ) |
Schedule of Mortgage Loans by Loan-to-Value Ratio | The following table represents the mortgage loan portfolio by loan-to-value ratio. March 31, 2016 December 31, 2015 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Loan-to-Value Ratio (1): Less than 50% $ 47,384 42.6 $ 64,986 59.7 50% to 60% 9,931 8.9 9,714 8.9 60% to 70% 29,831 26.9 10,134 9.3 70% to 80% — — 4,843 4.4 80% to 90% 24,024 21.6 19,284 17.7 Greater than 90% — — — — Gross balance 111,170 100.0 108,961 100.0 Allowance for possible losses (650 ) (0.6 ) (650 ) (0.6 ) Totals $ 110,520 99.4 $ 108,311 99.4 (1) Loan-to-Value Ratio determined 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. March 31, 2016 December 31, 2015 (In thousands) Balance, beginning of period $ 650 650 Provision — — Releases — — Balance, end of period $ 650 650 |
Investments Classified by Contractual Maturity Date |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables set forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of the date indicated: March 31, 2016 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available for sale $ 2,905,910 — 2,905,910 — Equity securities, available for sale 18,466 18,136 330 — Derivatives, index options 42,179 — — 42,179 Total assets $ 2,966,555 18,136 2,906,240 42,179 Policyholder account balances (a) $ 63,308 — — 63,308 Other liabilities (b) 6,162 — — 6,162 Total liabilities $ 69,470 — — 69,470 During the three months ended March 31, 2016 , the Company had no transfers into or out of Levels 1, 2 or 3. 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 (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 Assets by Pricing Source and Fair Value Hierarchy Measured on Recurring Basis | The following tables present, by pricing source and fair value hierarchy level, the Company’s assets that are measured at fair value on a recurring basis: March 31, 2016 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available for sale: Priced by third-party vendors $ 2,905,910 — 2,905,910 — Priced internally — — — — Subtotal 2,905,910 — 2,905,910 — Equity securities, available for sale: Priced by third-party vendors 18,466 18,136 330 — Priced internally — — — — Subtotal 18,466 18,136 330 — Derivatives, index options: Priced by third-party vendors 42,179 — — 42,179 Priced internally — — — — Subtotal 42,179 — — 42,179 Total $ 2,966,555 18,136 2,906,240 42,179 Percent of total 100.0 % 0.6 % 98.0 % 1.4 % December 31, 2015 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, 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 Significant Unobservable Inputs for Fair Value Measurements | The following tables provide additional information about fair value measurements for which significant unobservable (Level 3) inputs were utilized to determine fair value. For the Three Months Ended March 31, 2016 Debt Securities, Available for Sale Equity Securities, Available for Sale Derivatives, Index Options Total Assets Other Liabilities (In thousands) Balance at January 1, 2016 $ — — 38,409 38,409 66,028 Total realized and unrealized gains (losses): Included in net income — — (12,901 ) (12,901 ) (13,423 ) Purchases, sales, issuances and settlements, net: Purchases — — 18,493 18,493 18,493 Sales — — — — — Issuances — — — — — Settlements — — (1,822 ) (1,822 ) (1,628 ) Transfers into (out of) Level 3 — — — — — Balance at end of period $ — — 42,179 42,179 69,470 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 $ — — (11,362 ) (11,362 ) — Benefits and expenses — — — — (13,064 ) Total $ — — (11,362 ) (11,362 ) (13,064 ) For the Three Months ended March 31, 2015 Debt Securities, Available for Sale Equity Securities, Available for Sale Derivatives, Index Options Total Assets Other Liabilities (In thousands) Balance at January 1, 2015 $ — — 114,287 114,287 142,492 Total realized and unrealized gains (losses): Included in net income — — (8,287 ) (8,287 ) (12,383 ) Included in other comprehensive income — — — — — Purchases, sales, issuances and settlements, net: Purchases — — 18,456 18,456 18,456 Sales — — — — — Issuances — — — — — Settlements — — (28,469 ) (28,469 ) (28,578 ) Transfers into (out of) Level 3 — — — — — Balance at end of period $ — — 95,987 95,987 119,987 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 $ — — (6,843 ) (6,843 ) — Benefits and expenses — — — — (787 ) Total $ — — (6,843 ) (6,843 ) (787 ) |
Schedule of quantitative information of Level 3 liabilities | The following tables show the quantitative information about the Company's level 3 assets and liabilities. March 31, 2016 Fair Value Valuation Technique Unobservable Input (In thousands) Derivatives, index options $ 42,179 Broker prices Implied volatility Inputs from broker proprietary models Total assets $ 42,179 Policyholder account balances $ 63,308 Deterministic cash flow model Projected option cost Other liabilities 6,162 Black-Scholes model Expected term Forfeiture assumptions Total liabilities $ 69,470 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 model Expected term Forfeiture assumptions Total liabilities $ 66,028 |
Schedule of quantitative information of Level 3 assets | The following tables show the quantitative information about the Company's level 3 assets and liabilities. March 31, 2016 Fair Value Valuation Technique Unobservable Input (In thousands) Derivatives, index options $ 42,179 Broker prices Implied volatility Inputs from broker proprietary models Total assets $ 42,179 Policyholder account balances $ 63,308 Deterministic cash flow model Projected option cost Other liabilities 6,162 Black-Scholes model Expected term Forfeiture assumptions Total liabilities $ 69,470 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 model Expected term Forfeiture assumptions Total liabilities $ 66,028 |
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: March 31, 2016 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 $ 7,195,233 7,525,864 — 7,525,864 — Securities available for sale 2,924,376 2,924,376 18,136 2,906,240 — Cash and cash equivalents 141,571 141,571 141,571 — — Mortgage loans 110,520 113,436 — — 113,436 Policy loans 60,488 112,860 — — 112,860 Other loans 7,502 7,895 — — 7,895 Derivatives, index options 42,179 42,179 — — 42,179 Life interest in Trust 7,379 12,775 — — 12,775 LIABILITIES Deferred annuity contracts $ 7,626,304 7,265,074 — — 7,265,074 Immediate annuity and supplemental contracts 445,075 482,769 — — 482,769 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 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 |
Derivative Investments (Tables)
Derivative Investments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Instruments | The tables below present the fair value of derivative instruments as of March 31, 2016 and December 31, 2015 , respectively. March 31, 2016 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 $ 42,179 Fixed-index products Universal Life and Annuity Contracts $ 63,308 Total $ 42,179 $ 63,308 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 |
Schedule of Derivative Instruments in Condensed Consolidated Statements of Earnings | The table below presents the effect of derivative instruments in the Condensed Consolidated Statements of Earnings for the three months ended March 31, 2016 and 2015 . March 31, March 31, Derivatives Not Designated As Hedging Instruments Location of Gain or (Loss) Recognized In Income on Derivatives Amount of Gain or (Loss) Recognized in Income on Derivatives (In thousands) Equity index options Net investment income $ (12,901 ) (8,287 ) Fixed-index products Universal life and annuity contract interest 11,722 11,596 $ (1,179 ) 3,309 |
Consolidation and Basis of Pr28
Consolidation and Basis of Presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Other net investment gains (losses) | $ 2,381 | $ 978 |
Earnings before Federal income taxes | 25,797 | 31,423 |
Federal income taxes | 8,538 | 10,097 |
Net earnings | 17,259 | 21,326 |
Unrealized Gains and Losses on Available-for-sale Securities [Member] | Amount Reclassified From Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Other net investment gains (losses) | 708 | 254 |
Net OTTI losses recognized in earnings | 0 | 0 |
Earnings before Federal income taxes | 708 | 254 |
Federal income taxes | 248 | 89 |
Net earnings | $ 460 | $ 165 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | Mar. 31, 2016 | Oct. 01, 2015 | Sep. 30, 2015 | Mar. 31, 2015 | Jun. 20, 2008 | Jun. 25, 2004 |
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, par value (usd per share) | $ 0.01 | $ 1 | $ 0.01 | $ 0.01 | $ 1 | |
Common Class B [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common stock, par value (usd per share) | $ 0.01 | $ 1 | $ 0.01 | |||
Newco Merger [Member] | Common Class A [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common stock, par value (usd per share) | $ 0.01 | |||||
Newco Merger [Member] | Common Class B [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common stock, par value (usd per share) | $ 0.01 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net income | $ 17,259 | $ 21,326 |
Undistributed income | 17,259 | 21,326 |
Allocation of net income: | ||
Allocation of undistributed income | 17,259 | 21,326 |
Net earnings | 17,259 | 21,326 |
Class A [Member] | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net income | 16,771 | 20,723 |
Dividends | 0 | 0 |
Undistributed income | 16,771 | 20,723 |
Allocation of net income: | ||
Dividends | 0 | 0 |
Allocation of undistributed income | 16,771 | 20,723 |
Net earnings | $ 16,771 | $ 20,723 |
Denominator: | ||
Basic earnings per share - weighted-average shares (in shares) | 3,436 | 3,436 |
Effect of dilutive stock options (in shares) | 1 | 2 |
Diluted earnings per share - adjusted weighted-average shares for assumed conversions (in shares) | 3,437 | 3,438 |
Basic Earnings Per Share (in dollars per share) | $ 4.88 | $ 6.03 |
Diluted Earnings Per Share (in dollars per share) | $ 4.88 | $ 6.03 |
Class B [Member] | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net income | $ 488 | $ 603 |
Dividends | 0 | 0 |
Undistributed income | 488 | 603 |
Allocation of net income: | ||
Dividends | 0 | 0 |
Allocation of undistributed income | 488 | 603 |
Net earnings | $ 488 | $ 603 |
Denominator: | ||
Basic earnings per share - weighted-average shares (in shares) | 200 | 200 |
Effect of dilutive stock options (in shares) | 0 | 0 |
Diluted earnings per share - adjusted weighted-average shares for assumed conversions (in shares) | 200 | 200 |
Basic Earnings Per Share (in dollars per share) | $ 2.44 | $ 3.02 |
Diluted Earnings Per Share (in dollars per share) | $ 2.44 | $ 3.02 |
Earnings Per Share (Antidilutiv
Earnings Per Share (Antidilutive Securities) (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Equity Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities outstanding but not included in the computation of diluted earnings per share | 20,800 | 21,800 |
Pension and Other Postretirem32
Pension and Other Postretirement Plans (Details) | 3 Months Ended | ||
Mar. 31, 2016USD ($)benefit_plan | Mar. 31, 2015USD ($) | Dec. 31, 2007 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of healthcare plans | benefit_plan | 2 | ||
Defined Benefit Pension Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Vesting percentage in accrued benefits from plan freeze | 100.00% | ||
Service cost | $ 26,000 | $ 51,000 | |
Interest cost | 250,000 | 246,000 | |
Expected return on plan assets | (304,000) | (330,000) | |
Amortization of prior service cost | 0 | 1,000 | |
Amortization of net loss | 193,000 | 196,000 | |
Net periodic benefit cost | 165,000 | 164,000 | |
Minimum required contribution | 200,000 | ||
Company contributions to plan | 0 | ||
Chairman and President Non-Qualified Defined Benefit Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 109,000 | 64,000 | |
Interest cost | 265,000 | 219,000 | |
Amortization of prior service cost | 15,000 | 15,000 | |
Amortization of net loss | 501,000 | 378,000 | |
Net periodic benefit cost | 890,000 | 676,000 | |
Company contributions to plan | 400,000 | ||
Company expected contributions to plans in fiscal year | 2,000,000 | ||
Defined Benefit Postretirement Healthcare Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Interest cost | 30,000 | 32,000 | |
Amortization of prior service cost | 26,000 | 26,000 | |
Amortization of net loss | 0 | 15,000 | |
Net periodic benefit cost | $ 56,000 | $ 73,000 | |
Minimum [Member] | Chairman and President Non-Qualified Defined Benefit Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Aggregate average annual participant salary increase (as a percentage) | 10.00% |
Segment and Other Operating I33
Segment and Other Operating Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Selected Condensed Consolidated Balance Sheet Items: | |||
Total segment assets | $ 11,683,695 | $ 11,462,003 | $ 11,612,576 |
Other policyholder liabilities | 154,199 | $ 155,261 | |
Condensed Consolidated Income Statements: | |||
Premiums and contract revenues | 46,183 | 41,660 | |
Net investment income | 95,500 | 99,923 | |
Other revenues | 4,878 | 5,329 | |
Realized gains (losses) on investments | 2,381 | 978 | |
Total condensed consolidated premiums and other revenues | 148,942 | 147,890 | |
Life and other policy benefits | 15,601 | 19,266 | |
Amortization of deferred acquisition costs | 35,220 | 27,652 | |
Universal life and annuity contract interest | 49,017 | 49,039 | |
Other operating expenses | 23,307 | 20,510 | |
Federal income taxes (benefit) | 7,704 | 9,755 | |
Taxes on realized gains (losses) on investments | 834 | 342 | |
Total condensed consolidated Federal income taxes | 8,538 | 10,097 | |
Segment earnings (loss) | 15,712 | 20,690 | |
Realized gains (losses) on investments, net of taxes | 1,547 | 636 | |
Net earnings | 17,259 | 21,326 | |
Segments [Member] | |||
Selected Condensed Consolidated Balance Sheet Items: | |||
Deferred policy acquisition costs and sales inducements | 966,603 | 945,344 | |
Total segment assets | 11,533,047 | 11,278,305 | |
Future policy benefits | 9,702,992 | 9,542,267 | |
Other policyholder liabilities | 154,199 | 153,389 | |
Condensed Consolidated Income Statements: | |||
Premiums and contract revenues | 46,183 | 41,660 | |
Net investment income | 95,500 | 99,923 | |
Other revenues | 4,878 | 5,329 | |
Total condensed consolidated premiums and other revenues | 146,561 | 146,912 | |
Life and other policy benefits | 15,601 | 19,266 | |
Amortization of deferred acquisition costs | 35,220 | 27,652 | |
Universal life and annuity contract interest | 49,017 | 49,039 | |
Other operating expenses | 23,307 | 20,510 | |
Federal income taxes (benefit) | 7,704 | 9,755 | |
Total expenses | 130,849 | 126,222 | |
Segment earnings (loss) | 15,712 | 20,690 | |
Segments [Member] | Domestic Life Insurance [Member] | |||
Selected Condensed Consolidated Balance Sheet Items: | |||
Deferred policy acquisition costs and sales inducements | 76,444 | 65,368 | |
Total segment assets | 892,147 | 783,839 | |
Future policy benefits | 766,900 | 675,837 | |
Other policyholder liabilities | 15,190 | 13,661 | |
Condensed Consolidated Income Statements: | |||
Premiums and contract revenues | 7,659 | 6,487 | |
Net investment income | 6,133 | 7,165 | |
Other revenues | 24 | 16 | |
Total condensed consolidated premiums and other revenues | 13,816 | 13,668 | |
Life and other policy benefits | 3,621 | 5,113 | |
Amortization of deferred acquisition costs | 2,011 | 3,181 | |
Universal life and annuity contract interest | 3,843 | 4,939 | |
Other operating expenses | 3,575 | 3,715 | |
Federal income taxes (benefit) | 252 | (1,051) | |
Total expenses | 13,302 | 15,897 | |
Segment earnings (loss) | 514 | (2,229) | |
Segments [Member] | International Life Insurance [Member] | |||
Selected Condensed Consolidated Balance Sheet Items: | |||
Deferred policy acquisition costs and sales inducements | 242,788 | 249,736 | |
Total segment assets | 1,253,574 | 1,246,906 | |
Future policy benefits | 936,857 | 949,876 | |
Other policyholder liabilities | 12,996 | 17,777 | |
Condensed Consolidated Income Statements: | |||
Premiums and contract revenues | 32,788 | 30,333 | |
Net investment income | 6,847 | 8,614 | |
Other revenues | 36 | 86 | |
Total condensed consolidated premiums and other revenues | 39,671 | 39,033 | |
Life and other policy benefits | 5,168 | 6,205 | |
Amortization of deferred acquisition costs | 5,105 | (650) | |
Universal life and annuity contract interest | 5,683 | 7,130 | |
Other operating expenses | 5,526 | 5,922 | |
Federal income taxes (benefit) | 5,984 | 6,545 | |
Total expenses | 27,466 | 25,152 | |
Segment earnings (loss) | 12,205 | 13,881 | |
Segments [Member] | Annuities [Member] | |||
Selected Condensed Consolidated Balance Sheet Items: | |||
Deferred policy acquisition costs and sales inducements | 647,371 | 630,240 | |
Total segment assets | 9,103,314 | 8,988,348 | |
Future policy benefits | 7,999,235 | 7,916,554 | |
Other policyholder liabilities | 126,013 | 121,951 | |
Condensed Consolidated Income Statements: | |||
Premiums and contract revenues | 5,736 | 4,840 | |
Net investment income | 77,639 | 79,236 | |
Other revenues | 60 | 15 | |
Total condensed consolidated premiums and other revenues | 83,435 | 84,091 | |
Life and other policy benefits | 6,812 | 7,948 | |
Amortization of deferred acquisition costs | 28,104 | 25,121 | |
Universal life and annuity contract interest | 39,491 | 36,970 | |
Other operating expenses | 9,590 | 6,178 | |
Federal income taxes (benefit) | (185) | 2,523 | |
Total expenses | 83,812 | 78,740 | |
Segment earnings (loss) | (377) | 5,351 | |
Segments [Member] | All Others [Member] | |||
Selected Condensed Consolidated Balance Sheet Items: | |||
Deferred policy acquisition costs and sales inducements | 0 | 0 | |
Total segment assets | 284,012 | 259,212 | |
Future policy benefits | 0 | 0 | |
Other policyholder liabilities | 0 | 0 | |
Condensed Consolidated Income Statements: | |||
Premiums and contract revenues | 0 | 0 | |
Net investment income | 4,881 | 4,908 | |
Other revenues | 4,758 | 5,212 | |
Total condensed consolidated premiums and other revenues | 9,639 | 10,120 | |
Life and other policy benefits | 0 | 0 | |
Amortization of deferred acquisition costs | 0 | 0 | |
Universal life and annuity contract interest | 0 | 0 | |
Other operating expenses | 4,616 | 4,695 | |
Federal income taxes (benefit) | 1,653 | 1,738 | |
Total expenses | 6,269 | 6,433 | |
Segment earnings (loss) | 3,370 | 3,687 | |
Other unallocated [Member] | |||
Selected Condensed Consolidated Balance Sheet Items: | |||
Total segment assets | $ 150,648 | $ 183,698 |
Share-Based Payments (General D
Share-Based Payments (General Descriptions) (Details) $ / shares in Units, $ in Millions | Feb. 17, 2016$ / sharesshares | Mar. 31, 2016USD ($)plan$ / shares | Mar. 31, 2015USD ($)$ / shares | Sep. 30, 2015$ / shares | Jun. 20, 2008$ / sharesshares | Jun. 25, 2004$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Period in force, from which option holders may elect to sell back acquired shares | 90 days | |||||
Number of plans | plan | 2 | |||||
Pre-tax compensation cost (benefit) recognized | $ | $ (1.5) | $ (0.8) | ||||
Compensation cost (benefit), tax expense (benefit) | $ | 0.5 | $ 0.3 | ||||
Compensation cost related to nonvested options not yet recognized | $ | $ 3.8 | |||||
Weighted average period over which the compensation is expected to be recognized (in years) | 2 years | |||||
Common Class A [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, par value (usd per share) | $ / shares | $ 0.01 | $ 0.01 | $ 1 | $ 0.01 | $ 1 | |
Director [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage (in percentage) | 20.00% | |||||
Requisite service period of awards (in years) | 1 year | |||||
Employees [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Requisite service period of awards (in years) | 3 years | |||||
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 (in shares) | 300,000 | |||||
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 (in shares) | 300,000 | |||||
Stock Appreciation Rights [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage (in percentage) | 33.30% | |||||
Grants during the period (in shares) | 14,643 | |||||
Grants during the period (in dollars per share) | $ / shares | $ 216.48 | |||||
Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grants during the period (in shares) | 5,727 | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grants during the period (in shares) | 3,661 | |||||
Vesting period (in years) | 3 years | |||||
Share-base Payment, Performance Period | 3 years |
Share-Based Payments (Options a
Share-Based Payments (Options and Stock Appreciation Rights Outstanding) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Available For Grant, Beginning Balance (in shares) | 291,000 | |
Shares Available For Grant, Exercised (in shares) | 0 | |
Shares Available For Grant, Forfeited (in shares) | 0 | |
Shares Available For Grant, Expired (in shares) | 0 | |
Shares Available For Grant, Granted (in shares) | 0 | |
Shares Available For Grant, Ending Balance (in shares) | 291,000 | |
Shares/Awards | ||
Opening Balance (in shares) | 27,768 | |
Expired (in shares) | 0 | |
Exercised (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Granted (in shares) | 0 | |
Ending Balance (in shares) | 27,768 | |
Weighted-Average Exercise Price (usd per share) | ||
Opening Balance (in usd per share) | $ 243.26 | |
Expired (in usd per share) | 0 | |
Exercised (in usd per share) | 0 | |
Forfeited (in usd per share) | 0 | |
Granted (in usd per share) | 0 | |
Ending Balance (in usd per share) | $ 243.26 | |
Liability Awards | ||
Compensation cost, liability balance | $ 6.2 | $ 8.4 |
Cash received from exercise of options | 0.6 | 0.3 |
Total fair value of shares vested | $ 0 | $ 0 |
Stock Appreciation Rights [Member] | ||
Liability Awards | ||
Granted (in shares) | 14,643 | |
Exercised (in shares) | 275 | |
Forfeited (in shares) | 0 | |
Closing balance (in shares) | 100,629 | 86,261 |
Total intrinsic value of options exercised | $ 0.1 | $ 0.1 |
Total share-based liabilities paid | $ 0 | $ 0.1 |
Restricted Stock Units (RSUs) [Member] | ||
Liability Awards | ||
Granted (in shares) | 3,661 | |
Exercised (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Closing balance (in shares) | 3,661 | 0 |
Performance Shares [Member] | ||
Liability Awards | ||
Granted (in shares) | 5,727 | |
Exercised (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Closing balance (in shares) | 5,727 | 0 |
Share-Based Payments (Exercise
Share-Based Payments (Exercise Range) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($)$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | 128,397 |
Number Outstanding, Aggregate intrinsic value | $ | $ 6,536 |
Number Exercisable | 68,144 |
Options Exercisable, Aggregate intrinsic value | $ | $ 4,255 |
Closing stock price | $ / shares | $ 230.63 |
Exercise Price $255.13 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | 255.13 |
Exercise Price $208.05 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 208.05 |
Employee Stock Option [Member] | Exercise Price $255.13 [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 1 month 6 days |
Number Exercisable | 20,768 |
Employee Stock Option [Member] | Exercise Price $208.05 [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 2 months 12 days |
Number Exercisable | 7,000 |
Stock Appreciation Rights [Member] | Exercise Price $114.64 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 114.64 |
Number Outstanding | 23,268 |
Weighted- Average Remaining Contractual Life | 2 years 10 months 24 days |
Number Exercisable | 23,268 |
Stock Appreciation Rights [Member] | Exercise Price $132.56 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 132.56 |
Number Outstanding | 28,218 |
Weighted- Average Remaining Contractual Life | 5 years 8 months 12 days |
Number Exercisable | 13,508 |
Stock Appreciation Rights [Member] | Exercise Price $210.22 [Member]] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 210.22 |
Number Outstanding | 34,500 |
Weighted- Average Remaining Contractual Life | 7 years 8 months 12 days |
Number Exercisable | 3,600 |
Stock Appreciation Rights [Member] | Exercise Price $216.48 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 216.48 |
Number Outstanding | 14,643 |
Weighted- Average Remaining Contractual Life | 9 years 10 months 24 days |
Number Exercisable | 0 |
Share-Based Payments (Black Sch
Share-Based Payments (Black Scholes Option Pricing Model Assumptions) (Details) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, minimum (in percentage) | 21.95% | 21.11% |
Expected volatility, maximum (in percentage) | 25.44% | 37.77% |
Expected dividend yield (in percentage) | 0.16% | 0.14% |
Risk-free rate, minimum (in percentage) | 0.53% | 0.22% |
Risk-free rate, maximum (in percentage) | 1.22% | 1.67% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period of awards (in years) | 2 years | 2 years 3 months 10 days |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period of awards (in years) | 9 years 10 months 24 days | 8 years |
Weighted-average [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, weighted-average (in percentage) | 23.57% | 23.89% |
Risk-free rate, weighted-average (in percentage) | 0.67% | 0.63% |
Commitments and Contingencies (
Commitments and Contingencies (Details) BRL in Millions | Oct. 26, 2011USD ($) | Mar. 31, 2016BRL | Mar. 31, 2016USD ($) |
Brazilian Superintendence of Private Insurance [Member] | |||
Loss Contingencies [Line Items] | |||
Fine SUSEP is attempting to impose on the company | $ 6,000,000,000 | BRL 3 | $ 800,000 |
Existing Loans [Member] | |||
Loss Contingencies [Line Items] | |||
Other commitment | 2,900,000 | ||
New Loans [Member] | |||
Loss Contingencies [Line Items] | |||
Other commitment | 25,900,000 | ||
Pending Litigation [Member] | Damaris Maldonado Vinas Et Al [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Accrual | $ (2,900,000) |
Investments (Investment Gains a
Investments (Investment Gains and Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Held to maturity debt securities: | ||
Real estate gains (losses) | $ 1,290 | $ 0 |
Other | 0 | 0 |
Totals | $ 2,381 | $ 978 |
Percentage of gains on bonds, due to calls of securities (in percentage) | 36.00% | 75.00% |
Total other-than-temporary impairment gains (losses) on debt securities | $ 26 | $ 160 |
Portion of loss (gain) recognized in comprehensive income | (26) | (160) |
Net impairment losses on debt securities recognized in earnings | 0 | 0 |
Equity securities impairments | 0 | 0 |
Net OTTI losses recognized in earnings | 0 | 0 |
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 | 2,278 | 2,298 |
Reductions for securities sold during current period | (629) | (20) |
Additions for credit losses not previously recognized in other-than-temporary impairments | 0 | 0 |
Ending balance, cumulative credit losses related to other-than-temporary impairments | 1,649 | 2,278 |
Debt Securities [Member] | ||
Available for sale debt securities: | ||
Realized gains on disposal | 677 | 213 |
Realized losses on disposal | (6) | (9) |
Held to maturity debt securities: | ||
Realized gains on disposal | 489 | 724 |
Realized losses on disposal | (106) | 0 |
Equity Securities [Member] | ||
Held to maturity debt securities: | ||
Equity securities realized gains (losses) | $ 37 | $ 50 |
Investments (Securities Availab
Investments (Securities Available for Sale) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | |||
Total | $ 2,806,453 | $ 2,833,698 | |
Gross Unrealized Gains, Debt securities | 126,032 | 82,848 | |
Gross Unrealized Losses, Debt securities | (26,575) | (55,324) | |
Fair Value, Debt securities | 2,905,910 | 2,861,222 | |
Amortized Cost, Equity securities | 13,638 | 13,716 | |
Gross Unrealized Gains, Equity securities | 5,032 | 4,797 | |
Gross Unrealized Losses, Equity securities | (204) | (152) | |
Fair Value, Equity securities | 18,466 | 18,361 | |
Amortized Cost | 2,820,091 | 2,847,414 | $ 2,847,414 |
Gross Unrealized Gains | 131,064 | 87,645 | |
Gross Unrealized Losses | (26,779) | (55,476) | |
Fair Value | 2,924,376 | 2,879,583 | |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 Months, Fair Value | 260,971 | 886,421 | |
Less than 12 Months, Unrealized Losses | (11,257) | (33,399) | |
12 Months or Greater, Fair Value | 156,534 | 156,796 | |
12 Months or Greater, Unrealized Losses | (15,522) | (22,077) | |
Total, Fair Value | 417,505 | 1,043,217 | |
Total, Unrealized Losses | (26,779) | (55,476) | |
Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value | 2,905,910 | 2,861,222 | |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 Months, Fair Value | 260,351 | 885,772 | |
Less than 12 Months, Unrealized Losses | (11,104) | (33,275) | |
12 Months or Greater, Fair Value | 156,353 | 156,694 | |
12 Months or Greater, Unrealized Losses | (15,471) | (22,049) | |
Total, Fair Value | 416,704 | 1,042,466 | |
Total, Unrealized Losses | (26,575) | (55,324) | |
States and Political Subdivisions [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total | 584 | 586 | |
Gross Unrealized Gains, Debt securities | 0 | 0 | |
Gross Unrealized Losses, Debt securities | (20) | (34) | |
Fair Value, Debt securities | 564 | 552 | |
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 | 564 | 552 | |
12 Months or Greater, Unrealized Losses | (20) | (34) | |
Total, Fair Value | 564 | 552 | |
Total, Unrealized Losses | (20) | (34) | |
Foreign Governments [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total | 9,949 | 9,947 | |
Gross Unrealized Gains, Debt securities | 636 | 408 | |
Gross Unrealized Losses, Debt securities | 0 | 0 | |
Fair Value, Debt securities | 10,585 | 10,355 | |
Public Utilities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total | 162,228 | 129,980 | |
Gross Unrealized Gains, Debt securities | 7,879 | 5,354 | |
Gross Unrealized Losses, Debt securities | (996) | (775) | |
Fair Value, Debt securities | 169,111 | 134,559 | |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 Months, Fair Value | 26,010 | 42,093 | |
Less than 12 Months, Unrealized Losses | (996) | (775) | |
12 Months or Greater, Fair Value | 0 | 0 | |
12 Months or Greater, Unrealized Losses | 0 | 0 | |
Total, Fair Value | 26,010 | 42,093 | |
Total, Unrealized Losses | (996) | (775) | |
Corporate [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total | 2,586,105 | 2,635,536 | |
Gross Unrealized Gains, Debt securities | 113,956 | 73,132 | |
Gross Unrealized Losses, Debt securities | (25,493) | (54,503) | |
Fair Value, Debt securities | 2,674,568 | 2,654,165 | |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 Months, Fair Value | 232,775 | 843,679 | |
Less than 12 Months, Unrealized Losses | (10,073) | (32,500) | |
12 Months or Greater, Fair Value | 150,985 | 151,319 | |
12 Months or Greater, Unrealized Losses | (15,420) | (22,003) | |
Total, Fair Value | 383,760 | 994,998 | |
Total, Unrealized Losses | (25,493) | (54,503) | |
Residential Mortgage Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total | 33,606 | 36,463 | |
Gross Unrealized Gains, Debt securities | 3,183 | 3,103 | |
Gross Unrealized Losses, Debt securities | (35) | 0 | |
Fair Value, Debt securities | 36,754 | 39,566 | |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 Months, Fair Value | 1,566 | ||
Less than 12 Months, Unrealized Losses | (35) | ||
12 Months or Greater, Fair Value | 0 | ||
12 Months or Greater, Unrealized Losses | 0 | ||
Total, Fair Value | 1,566 | ||
Total, Unrealized Losses | (35) | ||
Home Equity [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total | 13,050 | 20,123 | |
Gross Unrealized Gains, Debt securities | 357 | 825 | |
Gross Unrealized Losses, Debt securities | (31) | (12) | |
Fair Value, Debt securities | 13,376 | 20,936 | |
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 | 4,804 | 4,823 | |
12 Months or Greater, Unrealized Losses | (31) | (12) | |
Total, Fair Value | 4,804 | 4,823 | |
Total, Unrealized Losses | (31) | (12) | |
Manufactured Housing [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total | 931 | 1,063 | |
Gross Unrealized Gains, Debt securities | 21 | 26 | |
Gross Unrealized Losses, Debt securities | 0 | 0 | |
Fair Value, Debt securities | 952 | 1,089 | |
Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value | 18,466 | 18,361 | |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 Months, Fair Value | 620 | 649 | |
Less than 12 Months, Unrealized Losses | (153) | (124) | |
12 Months or Greater, Fair Value | 181 | 102 | |
12 Months or Greater, Unrealized Losses | (51) | (28) | |
Equity Public [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Total, Fair Value | 801 | 751 | |
Total, Unrealized Losses | $ (204) | $ (152) |
Investments (Securities Held to
Investments (Securities Held to Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 |
Schedule of Held-to-maturity Securities [Line Items] | |||
Total | $ 7,195,233 | $ 7,173,967 | |
Gross Unrealized Gains | 366,517 | 247,892 | |
Gross Unrealized Losses | (35,885) | (86,423) | |
Fair Value | 7,525,865 | 7,335,436 | $ 7,335,436 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 Months, Fair Value | 576,089 | 1,986,981 | |
Less than 12 Months, Unrealized Losses | (23,718) | (63,361) | |
12 Months or Greater, Fair Value | 377,476 | 445,573 | |
12 Months or Greater, Unrealized Losses | (12,167) | (23,062) | |
Total, Fair Value | 953,565 | 2,432,554 | |
Total, Unrealized Losses | (35,885) | (86,423) | |
U.S. Agencies [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Total | 10,015 | 15,019 | |
Gross Unrealized Gains | 183 | 275 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 10,198 | 15,294 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Total, Unrealized Losses | 0 | 0 | |
U.S. Treasury [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Total | 1,928 | 1,927 | |
Gross Unrealized Gains | 342 | 317 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 2,270 | 2,244 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Total, Unrealized Losses | 0 | 0 | |
States and Political Subdivisions [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Total | 441,630 | 435,941 | |
Gross Unrealized Gains | 37,605 | 29,129 | |
Gross Unrealized Losses | (26) | (662) | |
Fair Value | 479,209 | 464,408 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 Months, Fair Value | 1,336 | 16,763 | |
Less than 12 Months, Unrealized Losses | (17) | (387) | |
12 Months or Greater, Fair Value | 1,491 | 8,723 | |
12 Months or Greater, Unrealized Losses | (9) | (275) | |
Total, Fair Value | 2,827 | 25,486 | |
Total, Unrealized Losses | (26) | (662) | |
Public Utilities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Total | 1,094,032 | 1,044,063 | |
Gross Unrealized Gains | 63,064 | 42,271 | |
Gross Unrealized Losses | (2,326) | (6,621) | |
Fair Value | 1,154,770 | 1,079,713 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 Months, Fair Value | 46,415 | 298,962 | |
Less than 12 Months, Unrealized Losses | (1,743) | (5,953) | |
12 Months or Greater, Fair Value | 26,439 | 17,840 | |
12 Months or Greater, Unrealized Losses | (583) | (668) | |
Total, Fair Value | 72,854 | 316,802 | |
Total, Unrealized Losses | (2,326) | (6,621) | |
Corporate [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Total | 4,159,049 | 4,160,628 | |
Gross Unrealized Gains | 177,686 | 114,920 | |
Gross Unrealized Losses | (33,112) | (72,913) | |
Fair Value | 4,303,623 | 4,202,635 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 Months, Fair Value | 528,338 | 1,522,544 | |
Less than 12 Months, Unrealized Losses | (21,958) | (54,295) | |
12 Months or Greater, Fair Value | 311,381 | 323,567 | |
12 Months or Greater, Unrealized Losses | (11,154) | (18,618) | |
Total, Fair Value | 839,719 | 1,846,111 | |
Total, Unrealized Losses | (33,112) | (72,913) | |
Residential Mortgage Backed Securities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Total | 1,475,990 | 1,503,021 | |
Gross Unrealized Gains | 85,835 | 59,013 | |
Gross Unrealized Losses | (421) | (6,227) | |
Fair Value | 1,561,404 | 1,555,807 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 Months, Fair Value | 0 | 148,712 | |
Less than 12 Months, Unrealized Losses | 0 | (2,726) | |
12 Months or Greater, Fair Value | 38,165 | 95,443 | |
12 Months or Greater, Unrealized Losses | (421) | (3,501) | |
Total, Fair Value | 38,165 | 244,155 | |
Total, Unrealized Losses | (421) | (6,227) | |
Home Equity [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Total | 10,639 | 11,047 | |
Gross Unrealized Gains | 1,618 | 1,701 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 12,257 | 12,748 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Total, Unrealized Losses | 0 | 0 | |
Manufactured Housing [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Total | 1,950 | 2,321 | |
Gross Unrealized Gains | 184 | 266 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 2,134 | 2,587 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Total, Unrealized Losses | $ 0 | $ 0 |
Investments (Unrealized Losses)
Investments (Unrealized Losses) (Details) | 3 Months Ended |
Mar. 31, 2016USD ($)security | |
Asset-Backed Security [Member] | |
Available-for-Sale Securities and Held-to-Maturity Securities [Line Items] | |
Securities, other-than-temporarily impaired | $ | $ 0 |
Debt Securities [Member] | |
Available-for-Sale Securities and Held-to-Maturity Securities [Line Items] | |
Gross unrealized losses, number of issues | 156 |
Gross unrealized losses, percentage of total debt | 11.70% |
Gross unrealized losses, market value as a percent of amortized cost | 95.60% |
Gross unrealized losses, number of securities with maturities of 12 months or greater | 72 |
Gross unrealized losses, number of securities with maturities of 12 months or greater (as a percentage) | 46.20% |
Equity Securities [Member] | |
Available-for-Sale Securities and Held-to-Maturity Securities [Line Items] | |
Gross unrealized losses, number of securities rated investment grade | 25 |
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 | 144 |
Investments (Mortgage Loans and
Investments (Mortgage Loans and Real Estate) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loan, amount | $ 111,170 | $ 108,961 | |
Allowance for possible losses, amount | (650) | $ (650) | (650) |
Totals, amount | $ 110,520 | $ 108,311 | |
Mortgage loans, percentage | 100.00% | 100.00% | |
Allowance for possible losses, percentage | (0.60%) | (0.60%) | |
Totals, percentage | 99.40% | 99.40% | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance, beginning of period | $ 650 | 650 | |
Provision | 0 | 0 | |
Releases | 0 | 0 | |
Balance, end of period | 650 | $ 650 | |
Less than 50% [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loan, amount | $ 47,384 | $ 64,986 | |
Mortgage loans, percentage | 42.60% | 59.70% | |
50% to 60% [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loan, amount | $ 9,931 | $ 9,714 | |
Mortgage loans, percentage | 8.90% | 8.90% | |
60% to 70% [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loan, amount | $ 29,831 | $ 10,134 | |
Mortgage loans, percentage | 26.90% | 9.30% | |
70% to 80% [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loan, amount | $ 0 | $ 4,843 | |
Mortgage loans, percentage | 0.00% | 4.40% | |
80% to 90% [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loan, amount | $ 24,024 | $ 19,284 | |
Mortgage loans, percentage | 21.60% | 17.70% | |
Greater than 90% [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loan, amount | $ 0 | $ 0 | |
Mortgage loans, percentage | 0.00% | 0.00% |
Investments (Contractual Maturi
Investments (Contractual Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 |
Debt Securities Available for Sale- Amortized Cost | |||
Due in 1 year or less | $ 104,883 | ||
Due after 1 year through 5 years | 854,799 | ||
Due after 5 years through 10 years | 1,757,807 | ||
Due after 10 years | 41,377 | ||
Amortized Cost | 2,758,866 | ||
Mortgage and asset-backed securities | 47,587 | ||
Total | 2,806,453 | $ 2,833,698 | |
Debt Securities Available for Sale- Fair Value | |||
Due in 1 year or less | 107,348 | ||
Due after 1 year through 5 years | 915,279 | ||
Due after 5 years through 10 years | 1,789,908 | ||
Due after 10 years | 42,293 | ||
Fair Value | 2,854,828 | ||
Mortgage and asset-backed securities | 51,082 | ||
Total | 2,905,910 | 2,861,222 | |
Debt Securities Held to Maturity - Amortized Costs | |||
Due in 1 year or less | 197,771 | ||
Due after 1 year through 5 years | 1,682,002 | ||
Due after 5 years through 10 years | 3,537,404 | ||
Due after 10 years | 289,477 | ||
Amortized Cost | 5,706,654 | ||
Mortgage and asset-backed securities | 1,488,579 | ||
Total | 7,195,233 | 7,173,967 | |
Debt Securities Held to Maturity - Fair Value | |||
Due in 1 year or less | 200,277 | ||
Due after 1 year through 5 years | 1,819,497 | ||
Due after 5 years through 10 years | 3,626,374 | ||
Due after 10 years | 303,922 | ||
Fair Value | 5,950,070 | ||
Mortgage and asset-backed securities | 1,575,795 | ||
Total | $ 7,525,865 | $ 7,335,436 | $ 7,335,436 |
Investments (Real Estate) (Deta
Investments (Real Estate) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016USD ($)property | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |||
Other long-term investments | $ 47,662 | $ 26,787 | |
Real estate gains (losses) | $ 1,290 | $ 0 | |
Number of real estate properties purchased | property | 2 | ||
Real estate investment during the period | $ 16,800 | ||
Brazoria County, Texas [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Real estate gains (losses) | 1,300 | ||
Real Estate [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Other long-term investments | 32,500 | $ 16,300 | |
Operating income from real estate | $ 500 |
Fair Value of Financial Instr46
Fair Value of Financial Instruments (Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 2,924,376 | $ 2,879,583 |
Derivatives, index options | 42,179 | 38,409 |
Total assets | 2,966,555 | 2,917,992 |
Policyholder account balances | 63,308 | 58,359 |
Other liabilities | 6,162 | 7,669 |
Total liabilities | $ 69,470 | $ 66,028 |
Percent of total (in percentage) | 100.00% | 100.00% |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 18,136 | $ 17,980 |
Derivatives, index options | 0 | 0 |
Total assets | 18,136 | 17,980 |
Policyholder account balances | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Percent of total (in percentage) | 0.60% | 0.60% |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 2,906,240 | $ 2,861,603 |
Derivatives, index options | 0 | 0 |
Total assets | 2,906,240 | 2,861,603 |
Policyholder account balances | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Percent of total (in percentage) | 98.00% | 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 | 42,179 | 38,409 |
Total assets | 42,179 | 38,409 |
Policyholder account balances | 63,308 | 58,359 |
Other liabilities | 6,162 | 7,669 |
Total liabilities | $ 69,470 | $ 66,028 |
Percent of total (in percentage) | 1.40% | 1.30% |
Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 2,905,910 | $ 2,861,222 |
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 | 2,905,910 | 2,861,222 |
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 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 18,466 | 18,361 |
Equity Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 18,136 | 17,980 |
Equity Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 330 | 381 |
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 |
Derivatives, Index Options [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | 42,179 | 38,409 |
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 | 42,179 | 38,409 |
Priced by Third-Party Vendors [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | 42,179 | 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 | 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 | 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 | 42,179 | 38,409 |
Priced by Third-Party Vendors [Member] | Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,905,910 | 2,861,222 |
Priced by Third-Party Vendors [Member] | 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 |
Priced by Third-Party Vendors [Member] | Debt Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,905,910 | 2,861,222 |
Priced by Third-Party Vendors [Member] | 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 |
Priced by Third-Party Vendors [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 18,466 | 18,361 |
Priced by Third-Party Vendors [Member] | Equity Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 18,136 | 17,980 |
Priced by Third-Party Vendors [Member] | Equity Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 330 | 381 |
Priced by Third-Party Vendors [Member] | 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 |
Priced Internally [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | 0 | 0 |
Priced Internally [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | 0 | 0 |
Priced Internally [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | 0 | 0 |
Priced Internally [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | 0 | 0 |
Priced Internally [Member] | Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Priced Internally [Member] | 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 |
Priced Internally [Member] | Debt Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Priced Internally [Member] | 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 |
Priced Internally [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Priced Internally [Member] | Equity Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Priced Internally [Member] | Equity Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Priced Internally [Member] | 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 |
Fair Value of Financial Instr47
Fair Value of Financial Instruments (Fair Value Measurements for Level 3 Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | $ 38,409 | $ 114,287 |
Total realized and unrealized gains (losses): | ||
Included in net income | (12,901) | (8,287) |
Included in other comprehensive income | 0 | |
Purchases | 18,493 | 18,456 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (1,822) | (28,469) |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 42,179 | 95,987 |
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: | (11,362) | (6,843) |
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | 66,028 | 142,492 |
Total realized and unrealized gains (losses): | ||
Included in net income | (13,423) | (12,383) |
Included in other comprehensive income | 0 | |
Purchases | 18,493 | 18,456 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (1,628) | (28,578) |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 69,470 | 119,987 |
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: | (13,064) | (787) |
Debt Securities, Available for Sale [Member] | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | 0 | 0 |
Total realized and unrealized gains (losses): | ||
Included in net income | 0 | 0 |
Included in other comprehensive income | 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] | ||
Balance at beginning of period | 0 | 0 |
Total realized and unrealized gains (losses): | ||
Included in net income | 0 | 0 |
Included in other comprehensive income | 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] | ||
Balance at beginning of period | 38,409 | 114,287 |
Total realized and unrealized gains (losses): | ||
Included in net income | (12,901) | (8,287) |
Included in other comprehensive income | 0 | |
Purchases | 18,493 | 18,456 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (1,822) | (28,469) |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 42,179 | 95,987 |
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: | (11,362) | (6,843) |
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: | (11,362) | (6,843) |
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: | (11,362) | (6,843) |
Other Operating Income (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: | (13,064) | (787) |
Other Operating Income (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 Income (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 Income (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 Values of Financial Inst48
Fair Values of Financial Instruments (Quantitative Information) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 2,966,555 | $ 2,917,992 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 69,470 | 66,028 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 42,179 | 38,409 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 69,470 | 66,028 |
Derivatives, Index Options [Member] | Broker Prices [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 42,179 | 38,409 |
Policyholders Account Balance [Member] | Deterministic Cash Flow [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 63,308 | 58,359 |
Other Liabilities [Member] | Black Scholes [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 6,162 | $ 7,669 |
Fair Values of Financial Inst49
Fair Values of Financial Instruments (Fair Value by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 |
ASSETS | |||
Securities held to maturity | $ 7,525,865 | $ 7,335,436 | $ 7,335,436 |
Securities available for sale | 2,924,376 | 2,879,583 | |
Derivatives, index options | 42,179 | 38,409 | |
Fair Values [Member] | |||
ASSETS | |||
Securities held to maturity | 7,525,864 | 7,335,436 | |
Securities available for sale | 2,924,376 | 2,879,583 | |
Cash and cash equivalents | 141,571 | 106,007 | |
Mortgage loans | 113,436 | 111,162 | |
Policy loans | 112,860 | 108,550 | |
Other loans | 7,895 | 2,957 | |
Derivatives, index options | 42,179 | 38,409 | |
Life interest in Trust | 12,775 | 12,775 | |
LIABILITIES | |||
Deferred annuity contracts | 7,265,074 | 7,288,108 | |
Immediate annuity and supplemental contracts | 482,769 | 461,457 | |
Carrying Values [Member] | |||
ASSETS | |||
Securities held to maturity | 7,195,233 | 7,173,967 | |
Securities available for sale | 2,924,376 | 2,879,583 | |
Cash and cash equivalents | 141,571 | 106,007 | |
Mortgage loans | 110,520 | 108,311 | |
Policy loans | 60,488 | 61,957 | |
Other loans | 7,502 | 2,779 | |
Derivatives, index options | 42,179 | 38,409 | |
Life interest in Trust | 7,379 | 7,379 | |
LIABILITIES | |||
Deferred annuity contracts | 7,626,304 | 7,640,951 | |
Immediate annuity and supplemental contracts | 445,075 | 434,468 | |
Level 1 [Member] | |||
ASSETS | |||
Securities held to maturity | 0 | 0 | |
Securities available for sale | 18,136 | 17,980 | |
Cash and cash equivalents | 141,571 | 106,007 | |
Mortgage loans | 0 | 0 | |
Policy loans | 0 | 0 | |
Other loans | 0 | 0 | |
Derivatives, index options | 0 | 0 | |
Life interest in Trust | 0 | 0 | |
LIABILITIES | |||
Deferred annuity contracts | 0 | 0 | |
Immediate annuity and supplemental contracts | 0 | 0 | |
Level 2 [Member] | |||
ASSETS | |||
Securities held to maturity | 7,525,864 | 7,335,436 | |
Securities available for sale | 2,906,240 | 2,861,603 | |
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 Trust | 0 | $ 0 | |
LIABILITIES | |||
Deferred annuity contracts | 0 | ||
Immediate annuity and supplemental contracts | 0 | $ 0 | |
Level 3 [Member] | |||
ASSETS | |||
Securities held to maturity | 0 | 0 | |
Securities available for sale | 0 | 0 | |
Cash and cash equivalents | 0 | 0 | |
Mortgage loans | 113,436 | 111,162 | |
Policy loans | 112,860 | 108,550 | |
Other loans | 7,895 | 2,957 | |
Derivatives, index options | 42,179 | 38,409 | |
Life interest in Trust | 12,775 | 12,775 | |
LIABILITIES | |||
Deferred annuity contracts | 7,265,074 | 7,288,108 | |
Immediate annuity and supplemental contracts | $ 482,769 | $ 461,457 |
Derivative Investments (Balance
Derivative Investments (Balance Sheet) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 42,179 | $ 38,409 |
Liability Derivatives | 63,308 | 58,359 |
Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 42,179 | 38,409 |
Liability Derivatives | 63,308 | 58,359 |
Derivatives Not Designated as Hedging Instruments [Member] | Equity Index Options [Member] | Derivatives, Index Options [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 42,179 | 38,409 |
Derivatives Not Designated as Hedging Instruments [Member] | Fixed-Index Products [Member] | Universal Life and Annuity Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 63,308 | $ 58,359 |
Derivative Investments (Stateme
Derivative Investments (Statements of Earnings) (Details) - Derivatives Not Designated as Hedging Instruments [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in Income on Derivatives | $ (1,179) | $ 3,309 |
Equity Index Options [Member] | Investment Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in Income on Derivatives | (12,901) | (8,287) |
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 Derivatives | $ 11,722 | $ 11,596 |