Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 28, 2019 | Jun. 30, 2018 | |
Document Information [Line Items] | |||
Entity Registrant Name | NATIONAL WESTERN LIFE GROUP, INC. | ||
Entity Central Index Key | 1,635,984 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 699,652,528 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Common Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 3,436,020 | ||
Common Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 200,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments: | ||
Debt securities held to maturity, at amortized cost (fair value: $7,228,268 and $7,434,104) | $ 7,285,254 | $ 7,247,024 |
Debt securities available for sale, at fair value (amortized cost: $3,008,624 and $2,964,510) | 2,946,059 | 3,041,131 |
Mortgage loans, net of allowance for possible losses ($675 and $650) | 203,180 | 208,249 |
Policy loans | 54,724 | 56,405 |
Derivatives, index options | 14,684 | 194,731 |
Equity securities, at fair value (cost: $14,329 and $12,890) | 17,491 | 18,478 |
Other long-term investments | 56,851 | 51,828 |
Total investments | 10,578,243 | 10,817,846 |
Cash and cash equivalents | 131,976 | 217,624 |
Deferred policy acquisition costs | 841,704 | 819,511 |
Deferred sales inducements | 133,714 | 135,570 |
Accrued investment income | 96,338 | 96,818 |
Federal income tax receivable | 17,934 | 0 |
Other assets | 131,782 | 137,725 |
Total assets | 11,931,691 | 12,225,094 |
Future policy benefits: | ||
Universal life and annuity contracts | 9,608,850 | 9,962,589 |
Traditional life reserves | 135,436 | 135,895 |
Other policyholder liabilities | 135,694 | 128,009 |
Deferred Federal income tax liability | 39,384 | 25,408 |
Federal income tax payable | 0 | 2,701 |
Other liabilities | 111,550 | 138,318 |
Total liabilities | 10,030,914 | 10,392,920 |
COMMITMENTS AND CONTINGENCIES (Notes 4, 7, and 9) | ||
Common stock: | ||
Additional paid-in capital | 41,716 | 41,716 |
Accumulated other comprehensive income (loss) | (37,015) | 14,281 |
Retained earnings | 1,896,040 | 1,776,141 |
Total stockholders' equity | 1,900,777 | 1,832,174 |
Total liabilities and stockholders' equity | 11,931,691 | 12,225,094 |
Common Class A | ||
Common stock: | ||
Common Stock: | 34 | 34 |
Common Class B | ||
Common stock: | ||
Common Stock: | $ 2 | $ 2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments: | ||
Securities held to maturity-fair value | $ 7,228,268 | $ 7,434,104 |
Securities available for sale-amortized cost | 3,008,624 | 2,964,510 |
Equity securities, at fair value cost | 14,329 | 12,890 |
Mortgage loans-allowance for possible losses | $ 675 | $ 650 |
Common Class A | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 7,500,000 | 7,500,000 |
Common Stock, shares issued (in shares) | 3,436,020 | 3,436,166 |
Common Stock, shares outstanding (in shares) | 3,436,020 | 3,436,166 |
Common Class B | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 200,000 | 200,000 |
Common Stock, shares issued (in shares) | 200,000 | 200,000 |
Common Stock, shares outstanding (in shares) | 200,000 | 200,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Universal life and annuity contract charges | $ 155,205 | $ 159,968 | $ 163,447 |
Traditional life premiums | 18,291 | 18,962 | 19,276 |
Net investment income | 349,077 | 659,685 | 467,674 |
Other revenues | 20,603 | 21,070 | 18,901 |
Net realized investment gains (losses): | |||
Total other-than-temporary impairment (“OTTI”) (losses) recoveries | 12 | 487 | 110 |
Portion of OTTI losses recognized in other comprehensive income | (12) | (599) | (110) |
Net OTTI losses recognized in earnings | 0 | 112 | 0 |
Other net investment gains | 8,423 | 14,875 | 13,070 |
Total net realized investment gains (losses) | 8,423 | 14,763 | 13,070 |
Total revenues | 551,599 | 874,448 | 682,368 |
Benefits and expenses: | |||
Life and other policy benefits | 65,297 | 71,485 | 65,529 |
Amortization of deferred policy acquisition costs | 114,771 | 114,387 | 121,139 |
Universal life and annuity contract interest | 136,055 | 437,019 | 248,390 |
Other operating expenses | 93,969 | 107,002 | 94,448 |
Total benefits and expenses | 410,092 | 729,893 | 529,506 |
Earnings before Federal income taxes | 141,507 | 144,555 | 152,862 |
Federal income taxes | 24,749 | 34,134 | 51,970 |
Net earnings | 116,758 | 110,421 | 100,892 |
Common Class A | |||
Benefits and expenses: | |||
Net earnings | $ 113,456 | $ 107,298 | $ 98,039 |
Basic Earnings Per Share: | |||
Earnings Per Share, Basic (in dollars per share) | $ 33.02 | $ 31.23 | $ 28.53 |
Diluted Earnings Per Share: | |||
Earnings Per Share, Diluted (in dollars per share) | $ 33.02 | $ 31.23 | $ 28.53 |
Common Class B | |||
Benefits and expenses: | |||
Net earnings | $ 3,302 | $ 3,123 | $ 2,853 |
Basic Earnings Per Share: | |||
Earnings Per Share, Basic (in dollars per share) | $ 16.51 | $ 15.61 | $ 14.27 |
Diluted Earnings Per Share: | |||
Earnings Per Share, Diluted (in dollars per share) | $ 16.51 | $ 15.61 | $ 14.27 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 116,758 | $ 110,421 | $ 100,892 |
Unrealized gains (losses) on securities: | |||
Net unrealized holding gains (losses) arising during period | (56,818) | 8,288 | 12,621 |
Net unrealized liquidity gains (losses) | 2 | 195 | 37 |
Reclassification adjustment for net amounts included in net earnings | (2,718) | (3,403) | (2,155) |
Net unrealized gains (losses) on securities | (59,534) | 5,080 | 10,503 |
Foreign currency translation adjustments | 1,354 | (9) | (164) |
Benefit plans: | |||
Amortization of net prior service cost and net gain, net of tax | 11,298 | (3,873) | (116) |
Other comprehensive income (loss) | (46,882) | 1,198 | 10,223 |
Comprehensive income (loss) | $ 69,876 | $ 111,619 | $ 111,115 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital: | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) | Unrealized losses on impaired held to maturity securities: | Unrealized losses on impaired available for sale securities: | Foreign currency translation adjustments: | Benefit plan liability adjustment | Retained earnings |
Total stockholders’ equity at Dec. 31, 2015 | $ 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 | $ 12,621 | 10,466 | ||||||||
Amortization | 72 | |||||||||
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 | (35) | 0 | ||||||||
Recoveries, net of tax | 0 | |||||||||
Change in translation adjustments during period | (164) | (164) | ||||||||
Amortization of net prior service cost and net gain, net of tax | (116) | (116) | ||||||||
Net earnings | 100,892 | 100,892 | ||||||||
Stockholder dividends | (1,273) | |||||||||
Total stockholders’ equity at Dec. 31, 2016 | 1,721,828 | 36 | 41,716 | $ 10,552 | 22,813 | (203) | (1) | 2,661 | (14,718) | 1,669,524 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Shares exercised under stock option plan | 0 | 0 | ||||||||
Change in unrealized gains (losses) during period | 8,288 | 4,885 | ||||||||
Amortization | (242) | |||||||||
Other-than-temporary impairments, non-credit, net of tax | 631 | |||||||||
Additional credit loss on previously impaired securities | 0 | |||||||||
Change in shadow deferred policy acquisition costs | (194) | 0 | ||||||||
Recoveries, net of tax | 0 | |||||||||
Change in translation adjustments during period | (9) | (9) | ||||||||
Amortization of net prior service cost and net gain, net of tax | (3,873) | (3,873) | ||||||||
Net earnings | 110,421 | 110,421 | ||||||||
Stockholder dividends | (1,273) | |||||||||
Total stockholders’ equity at Dec. 31, 2017 | 1,832,174 | 36 | 41,716 | 14,281 | 33,664 | (10) | (1) | 3,223 | (22,595) | 1,776,141 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Shares exercised under stock option plan | 0 | 0 | ||||||||
Change in unrealized gains (losses) during period | (56,818) | (59,536) | ||||||||
Amortization | 9 | |||||||||
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 | (6) | (1) | ||||||||
Recoveries, net of tax | 0 | |||||||||
Change in translation adjustments during period | 1,354 | 1,354 | ||||||||
Amortization of net prior service cost and net gain, net of tax | 11,298 | 11,298 | ||||||||
Net earnings | 116,758 | 116,758 | ||||||||
Stockholder dividends | (1,273) | |||||||||
Total stockholders’ equity at Dec. 31, 2018 | $ 1,900,777 | $ 36 | $ 41,716 | $ (37,015) | $ (30,286) | $ (7) | $ (2) | $ 4,577 | $ (11,297) | $ 1,896,040 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net earnings | $ 116,758 | $ 110,421 | $ 100,892 |
Adjustments to reconcile net earnings/(loss) to cash provided by operating activities: | |||
Universal life and annuity contract interest | 136,055 | 437,019 | 248,390 |
Surrender charges and other policy revenues | (37,138) | (42,061) | (44,828) |
Realized (gains) losses on investments | (8,423) | (14,763) | (13,070) |
Accretion/amortization of discounts and premiums, investments | (424) | (281) | (176) |
Depreciation and amortization | 11,825 | 10,005 | 8,057 |
(Increase) decrease in value of equity securities | 1,789 | 0 | 0 |
(Increase) decrease in value of derivatives | 80,004 | (222,875) | (28,364) |
(Increase) decrease in deferred policy acquisition and sales inducement costs | 43,479 | 21,554 | 9,206 |
(Increase) decrease in accrued investment income | 480 | 2,427 | 374 |
(Increase) decrease in other assets | (6,068) | (6,769) | 167 |
Increase (decrease) in liabilities for future policy benefits | (12,474) | 7,694 | 8,988 |
(Decrease) increase in other policyholder liabilities | 7,685 | (15,382) | (11,871) |
(Decrease) increase in Federal income tax liability | (20,635) | 1,912 | 13,301 |
Increase (decrease) in deferred Federal income tax | 26,438 | (40,227) | 10,152 |
(Decrease) increase in other liabilities | (12,728) | 27,456 | 7,925 |
Net cash provided by operating activities | 326,623 | 276,130 | 309,143 |
Proceeds from sales of: | |||
Debt securities held to maturity | 0 | 0 | 975 |
Debt securities available for sale | 28,098 | 22,184 | 15,123 |
Other investments | 6,460 | 10,008 | 5,116 |
Proceeds from maturities and redemptions of: | |||
Debt securities held to maturity | 437,311 | 490,841 | 404,802 |
Debt securities available for sale | 195,874 | 288,208 | 190,150 |
Derivatives, index options | 191,031 | 219,865 | 21,848 |
Property and equipment | 8 | 3,024 | 1,528 |
Purchases of: | |||
Debt securities held to maturity | (472,224) | (570,716) | (383,722) |
Debt securities available for sale | (264,999) | (291,427) | (347,495) |
Equity securities | (2,442) | (1,160) | (679) |
Derivatives, index options | (86,692) | (75,330) | (74,658) |
Other investments | (8,314) | (331) | (29,505) |
Property and equipment | (3,138) | (9,116) | (50,214) |
Principal payments on mortgage loans | 35,159 | 25,901 | 18,469 |
Cost of mortgage loans acquired | (29,884) | (59,448) | (84,561) |
(Increase) decrease in policy loans | 1,681 | 2,294 | 3,258 |
Net cash provided by (used in) investing activities | 27,929 | 54,797 | (309,565) |
Cash flows from financing activities: | |||
Dividends on common stock | (1,273) | (1,273) | (1,273) |
Deposits to account balances for universal life and annuity contracts | 560,583 | 728,873 | 847,147 |
Return of account balances on universal life and annuity contracts | (1,001,224) | (892,135) | (899,961) |
Net cash provided by (used in) financing activities | (441,914) | (164,535) | (54,087) |
Effect of foreign exchange | 1,714 | (15) | (251) |
Net increase (decrease) in cash and cash equivalents | (85,648) | 166,377 | (54,760) |
Cash and cash equivalents at beginning of year | 217,624 | 51,247 | 106,007 |
Cash and cash equivalents at end of year | 131,976 | 217,624 | 51,247 |
Cash paid during the year for: | |||
Interest | 40 | 40 | 44 |
Income taxes | 19,202 | 72,449 | 28,243 |
Noncash operating activities: | |||
Deferral of sales inducements | $ (12,753) | $ (10,650) | $ (7,620) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (A) Principles of Consolidation. On October 1, 2015, National Western Life Insurance Company ("National Western") completed its previously announced holding company reorganization. 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 Consolidated Financial Statements included the accounts of National Western, NWL Services, Inc., and Regent Care San Marcos Holdings, LLC, the wholly owned subsidiaries of NWGLI, as well as the wholly owned subsidiaries of National Western: The Westcap Corporation, NWLSM, Inc., and NWL Financial, Inc. All significant intercorporate transactions and accounts have been eliminated in consolidation and references to the "Company" as contained herein refer to the consolidated entity. (B) Basis of Presentation. The accompanying Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates in the accompanying Consolidated Financial Statements include (1) liabilities for future policy benefits, (2) valuation of derivative instruments, (3) recoverability and amortization of deferred policy acquisition costs, (4) commitments and contingencies, (5) valuation allowances for deferred tax assets, (6) other-than-temporary impairment losses on debt securities, and (7) valuation allowances for mortgage loans and real estate. The table below shows the unrealized gains and losses on available-for-sale securities that were reclassified out of accumulated other comprehensive income for the years ended December 31, 2018 , 2017 and 2016 . Affected Line Item In the Consolidated Statements of Earnings Amount Reclassified from Accumulated Other Comprehensive Income Years Ended December 31, 2018 2017 2016 Other net investment gains (losses) $ 3,441 5,348 3,316 Net OTTI losses recognized in earnings — (112 ) — Earnings before Federal income taxes 3,441 5,236 3,316 Federal income taxes 723 1,833 1,161 Net earnings $ 2,718 3,403 2,155 National Western also files financial statements with insurance regulatory authorities which are prepared on the basis of statutory accounting practices prescribed or permitted by the Colorado Division of Insurance which are significantly different from Consolidated Financial Statements prepared in accordance with GAAP. These differences are described in detail in the statutory information section of this note. Certain amounts in the prior year Consolidated Financial Statements have been reclassified to conform to the current year presentation. (C) Investments. Investments in debt securities the Company purchases with the intent to hold to maturity are classified as securities held to maturity. The Company has the ability to hold the securities until maturity, as it would be unlikely that forced sales of securities would be required, prior to maturity, to cover payments of liabilities. As a result, securities held to maturity are carried at amortized cost less declines in fair value that are deemed other-than-temporary. Investments in debt securities that are not classified as securities held to maturity are reported as securities available for sale. Securities available for sale are reported in the accompanying Consolidated Financial Statements at fair value. Valuation changes resulting from changes in the fair value of the securities are reflected as a component of stockholders' equity in accumulated other comprehensive income (loss). These unrealized gains or losses in stockholders' equity are reported net of taxes and adjustments to deferred policy acquisition costs. Transfers of securities between categories are recorded at fair value at the date of transfer. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to yield using the effective interest method. For mortgage-backed and asset-backed securities, the effective interest method is used based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The net investment in the securities is adjusted to the amount that would have existed had the new effective yield been applied at the time of acquisition (retrospective method). This adjustment is reflected in net investment income. For loan-backed securities not meeting the definition of "highly rated", the prospective method is evaluated and, if materially different from the retrospective method, utilized to account for these securities. The retrospective adjustment method has been used to value all loan-backed and structured securities included in the accompanying Consolidated Financial Statements. Quarterly the Company reviews its investment portfolio for market value changes to identify changes caused by issuer credit deterioration, changes in market interest rates and changes in economic conditions. If this review indicates a decline in fair value that is other-than-temporary, the Company’s carrying amount in the investment is reduced to its estimated fair value. In accordance with GAAP guidance the estimated credit versus non-credit components are bifurcated. The credit component is taken through earnings. The non-credit component is reclassified as unrealized loss in other comprehensive income. The Company would not recognize impairment of securities due to changing of interest rates or market dislocations unless the Company had the intent to sell the securities prior to recovery or maturity. The Company considers a number of factors in determining whether the impairment is other-than-temporary. These include, but are not limited to: 1) actions taken by rating agencies, 2) default by the issuer, 3) the significance of the decline in fair value, 4) the intent and ability to hold the investment until recovery, 5) the time period during which the decline has occurred, 6) an economic analysis of the issuer’s industry, and 7) the financial strength, liquidity, and recoverability of the issuer. Management performs a security-by-security review each quarter in evaluating the need for any other-than-temporary impairments. Although no set formula is used in this process, the investment performance, collateral position, and continued viability of the issuer are significant measures considered. Realized gains and losses for securities available for sale and securities held to maturity are included in earnings and are derived using the specific identification method for determining the cost of securities sold or called. Prepayment penalty fees received from issuers that call their securities before maturity are excluded from the calculation of realized gain or loss and are included as a component of investment income. Decline in the fair value of securities below their cost basis that are deemed other-than-temporary are bifurcated into separate credit and non-credit declinations. The noncredit related declines are reclassified as unrealized losses in accumulated other comprehensive income (loss). Credit losses are recorded in earnings and result in the establishment of a new cost basis for the security. The new discount or reduced premium amount is amortized over the remaining life of the impaired debt security prospectively based on the amount and timing of future estimated cash flows. Mortgage loans and other long-term investments are stated at cost, less unamortized discounts, deferred fees, and allowances for possible losses. Policy loans are stated at their aggregate unpaid balances. Real estate is stated at the lower of cost or fair value less estimated costs to sell. Impaired loans are those loans where it is probable that all amounts due according to contractual terms of the loan agreement will not be collected. The Company has identified these loans through its normal loan review procedures. Impaired loans include: 1) nonaccrual loans, 2) loans which are 90 days or more past due, unless they are well secured and are in the process of collection, and 3) other loans which management believes are impaired. Impaired loans are measured based on: 1) the present value of expected future cash flows discounted at the loan's effective interest rate, 2) the loan's observable market price, or 3) the fair value of the collateral if the loan is collateral dependent. When the Company has loans considered impaired substantially all are measured at the fair value of the collateral. In limited cases, the Company may use other methods to determine the level of impairment of a loan if such loan is not collateral dependent. While the Company closely manages its investment portfolio, future changes in issuer facts and circumstances can result in impairments beyond those currently identified. (D) Cash and Cash Equivalents. For purposes of the Consolidated Statements of Cash Flows, the Company considers all short-term investments with a maturity at the date of purchase of three months or less to be cash equivalents. (E) Derivatives. Fixed-index products combine features associated with traditional fixed annuities and universal life contracts, with the option to have interest rates linked in part to an underlying equity index. The equity return component of such policy contracts is identified separately and accounted for in future policy benefits as embedded derivatives on the Consolidated Balance Sheets. The remaining portions of these policy contracts are considered the host contracts and are recorded separately within future policy benefits as fixed annuity or universal life contracts. The host contracts are accounted for under debt instrument type accounting. The host contracts are recorded as discounted debt instruments that are accreted, using the effective yield method, to their minimum account values at their projected maturities or termination dates. The Company purchases over-the-counter index options, which are derivative financial instruments, to hedge the equity return component of its index annuity and life products. The amounts which may be credited to policyholders are linked, in part, to the returns of the underlying index. The index options act as hedges to match closely the returns on the underlying index. Cash is exchanged upon purchase of the index options and no principal or interest payments are made by either party during the option periods. Upon maturity or expiration of the options, cash is paid to the Company based on the underlying index performance and terms of the contract. As a result, amounts credited to policyholders' account balances are substantially offset by changes in the value of the options. The Company does not elect hedge accounting relative to derivative instruments. The derivatives are reported at their fair value in the accompanying Consolidated Financial Statements. Changes in the values of the index options and changes in the policyholder liabilities are both reflected in the Consolidated Statement of Earnings. Any gains or losses from the sale or expiration of the options, as well as period-to-period changes in values, are reflected as net investment income in the Consolidated Statement of Earnings. Any changes relative to the embedded derivatives associated with policy contracts are reflected in contract interest in the Consolidated Statement of Earnings. Although there is credit risk in the event of nonperformance by counterparties to the index options, the Company does not expect any counterparties to fail to meet their obligations, given their high credit ratings. In addition, credit support agreements are in place with all counterparties for option holdings in excess of specific limits, which further reduces the Company's credit exposure. At December 31, 2018 and 2017 , the fair value of index options owned by the Company totaled $14.7 million and $194.7 million , respectively. Of these amounts, $(72.3) million and $119.4 million represent unrealized gains and losses on the options held at December 31, 2018 and 2017 , respectively. (F) Insurance Revenues and Expenses. Premiums on traditional life insurance products are recognized as revenues as they become due from policyholders. Benefits and expenses are matched with premiums in arriving at profits by providing for policy benefits over the lives of the policies and by amortizing acquisition costs over the premium-paying periods of the policies. For universal life and annuity contracts, revenues consist of policy charges for the cost of insurance, policy administration, and surrender charges assessed during the period. Expenses for these policies include interest credited to policy account balances, benefit claims incurred in excess of policy account balances and amortization of deferred policy acquisition costs and deferred sales inducements. Under GAAP, commissions, sales inducements, and certain expenses related to policy issuance and underwriting, all of which vary with and are related to the production of new business, are deferred. For traditional products, these costs are amortized over the premium-paying period of the related policies in proportion to the ratio of the premium earned to the total premium revenue anticipated, using the same assumptions as to interest, mortality, and withdrawals as were used in calculating the liability for future policy benefits. For universal life and annuity contracts, these costs are amortized in relation to the present value of expected gross profits on these policies. The Company evaluates the recoverability of deferred policy acquisition and sales inducement costs on a quarterly basis. In this evaluation, the Company considers estimated future gross profits or future premiums, as applicable for the type of contract. The Company also considers expected mortality, interest earned and credited rates, persistency, and expenses. In accordance with GAAP guidance, the Company must also write off deferred acquisition costs and unearned revenue liabilities upon internal replacement of certain contracts as well as annuitizations of deferred annuities. A summary of information relative to deferred policy acquisition costs ("DPAC") is provided in the table below. Years Ended December 31, 2018 2017 2016 (In thousands) Deferred policy acquisition costs, beginning of year $ 819,511 835,194 853,451 Policy acquisition costs deferred: Agents' commissions 75,899 95,088 112,048 Other 8,195 8,433 7,808 Total costs deferred 84,094 103,521 119,856 Amortization of deferred policy acquisition costs (114,771 ) (114,387 ) (121,139 ) Adjustments for unrealized (gains) losses on investment securities 52,870 (4,817 ) (16,974 ) Deferred policy acquisition costs, end of year $ 841,704 819,511 835,194 A summary of information relative to deferred sales inducements is provided in the table below. Years Ended December 31, 2018 2017 2016 (In thousands) Deferred sales inducements, beginning of year $ 135,570 147,111 159,166 Sales inducement costs deferred 7,546 17,901 19,302 Amortization of sales inducements (20,299 ) (28,552 ) (26,922 ) Adjustments for unrealized (gains) losses on investment securities 10,897 (890 ) (4,435 ) Deferred sales inducements, end of year $ 133,714 135,570 147,111 Amortization of deferred policy acquisition costs increased marginally to $114.8 million in the year ended December 31, 2018 compared to $114.4 million reported in 2017 . Amortization expense in 2018 included $1.0 million in net prospective unlocking adjustments which decreased amortization expense for the following: (a) mortality and withdrawal benefit election rate assumptions on indexed deferred annuities which decreased amortization expense by $6.2 million ; (b) mortality, surrender and annuitization rates, and the portfolio investment yield on non-indexed deferred annuities which increased amortization expense by $4.0 million ; and (c) mortality, extended death benefit reserves, and the portfolio investment yield on universal life products which increased amortization expense by $1.2 million . Amortization expense in 2017 included $11.9 million in prospective unlocking adjustments which decreased amortization expense for the following: (a) reducing interest crediting rate spreads in the Domestic Life segment which increased amortization expense by $0.8 million ; (b) International Life segment for favorable mortality, improved lapse rates in certain markets, an interest rate clawback provision, and reducing interest crediting rate spreads, collectively decreasing amortization expense by $(27.7) million ; and (c) in the Annuity segment updating surrender and annuitization rates on two tier annuities, reducing interest crediting rate spreads, and adjusting withdrawal benefit assumptions, which collectively increased amortization expense by $15.1 million . Amortization expense in 2016 included $13.8 million in prospective unlocking adjustments which decreased amortization expense for the following: (a) updating DPAC future gross profit projections for universal life insurance riders in the Domestic Life and International Life segments which had not been previously included in software models which decreased amortization expense by $(2.1) million ; (b) favorable mortality in the Domestic Life segment which decreased amortization expense by $(8.2) million ; (c) in the International segment favorable mortality, increased cost of insurance charges that had been implemented, and higher lapse rates for policies associated with the residents that the company ceased accepting applications from, collectively decreasing amortization expense by $(7.3) million ; and (d) updating surrender and annuitization rates on indexed, single tier, and two tier annuities which increased amortization expense by $3.7 million . Similar to deferred policy acquisition costs, amortization of deferred sales inducements includes unlocking adjustments. In 2018, the deferred sales inducement balance was unlocked for the indexed and non-indexed deferred annuity items discussed above which increased contract interest expense by $1.3 million . In 2017, the deferred sales inducement balance was unlocked for updating surrender and annuitization rates on two tier annuities, reducing interest crediting rate spreads, and adjusting withdrawal benefit assumptions which increased contract interest expense by $4.3 million . In 2016, the deferred sales inducement balance was unlocked for updating surrender and annuitization rates on annuities as discussed above which increased contract interest expense by $1.7 million . Under GAAP, the liability for future policy benefits on traditional products has been calculated using assumptions as to future mortality (based on the 1965-1970, 1975-1980, and 2001 Select and Ultimate mortality tables), interest ranging from 3.25% to 8.00% , and withdrawals based on Company experience. For universal life and annuity contracts, the liability for future policy benefits represents the account balance. Fixed-index products combine features associated with traditional fixed annuities and universal life contracts, with the option to have interest rates linked in part to an equity index. In accordance with GAAP guidance , the equity return component of such policy contracts must be identified separately and accounted for as embedded derivatives. The remaining portions of these policy contracts are considered the host contracts and are recorded separately as fixed annuity or universal life contracts. The host contracts are accounted for under GAAP guidance provisions that require debt instrument type accounting. The host contracts are recorded as discounted debt instruments that are accreted, using the effective yield method, to their minimum account values at their projected maturities or termination dates. The embedded derivatives are recorded at fair value. (G) Deferred Federal Income Taxes. Federal income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance for deferred tax assets is provided if all or some portion of the deferred tax asset may not be realized. An increase or decrease in a valuation allowance that results from a change in circumstances that affects the realizability of the related deferred tax asset is included in income in the period the change occurs. (H) Depreciation of Property, Equipment, and Leasehold Improvements. Depreciation is based on the estimated useful lives of the assets and is calculated on the straight-line and accelerated methods. Leasehold improvements are amortized over the lesser of the economic useful life of the improvement or the term of the lease. (I) Statutory Information. Domiciled in Colorado, National Western prepares its statutory financial statements in accordance with accounting practices prescribed or permitted by the Colorado Division of Insurance. The Colorado Division of Insurance has adopted the provisions of the National Association of Insurance Commissioners' ("NAIC") Statutory Accounting Practices (“SSAP”) as the basis for its statutory accounting practices. The following are major differences between GAAP and accounting practices prescribed or permitted by the Colorado Division of Insurance (“statutory accounting practices”). 1. The Company accounts for universal life and annuity contracts based on the provisions of GAAP. The basic difference between GAAP and statutory accounting practices with respect to certain long-duration contracts is that deposits for universal life and annuity contracts are not reflected as revenues, and surrenders and certain other benefit payments are not reflected as expenses. Only contracts with no insurance risk qualify for such treatment under statutory accounting practices. For all other contracts, statutory accounting practices do reflect such items as revenues and expenses. A summary of direct premiums and deposits collected is provided below. Years Ended December 31, 2018 2017 2016 (In thousands) Annuity deposits $ 411,208 608,799 730,740 Universal life insurance deposits 278,971 254,960 250,459 Traditional life and other premiums 21,561 22,624 22,377 Totals $ 711,740 886,383 1,003,576 2. Statutory accounting practices require commissions and related acquisition costs to be expensed as incurred, whereas under GAAP these items are deferred and amortized. 3. For statutory accounting purposes, liabilities for future policy benefits for life insurance policies are calculated by the net level premium method or the commissioners reserve valuation method. Future policy benefit liabilities for annuities are calculated based on the continuous commissioners annuity reserve valuation method and provisions of Actuarial Guidelines 33 and 35. 4. Deferred Federal income taxes are provided for temporary differences which are recognized in the Consolidated Financial Statements in a different period than for Federal income tax purposes. Deferred taxes are also recognized in statutory accounting practices; however, there are limitations as to the amount of deferred tax assets that may be reported as admitted assets. The change in the deferred taxes is recorded directly in surplus, rather than as a component of income tax expense. 5. For statutory accounting purposes, debt securities are recorded at amortized cost, except for securities in or near default, which are reported at fair value. Under GAAP, debt securities are carried at amortized cost or fair value based on their classification as either held to maturity or available for sale. 6. Investments in subsidiaries are recorded as affiliated common stock investments at their respective SSAP investment value under statutory accounting, whereas the financial statements of the subsidiaries have been consolidated with those of the Company under GAAP. 7. The asset valuation reserve and interest maintenance reserve, which are investment valuation reserves prescribed by statutory accounting practices, have been eliminated, as they are not required under GAAP. 8. The table below provides the Company’s net gain from operations, net income, unassigned surplus (retained earnings) and capital and surplus (stockholders' equity), on the statutory basis used to report to regulatory authorities for the years ended December 31. 2018 2017 2016 (In thousands) Net gain from operations before Federal and foreign income taxes $ 27,359 197,597 124,571 Net income $ 31,296 126,932 88,712 Unassigned surplus $ 1,370,468 1,330,491 1,207,298 Capital and surplus $ 1,413,532 1,374,554 1,251,361 (J) Stock Compensation. The Company accounts for its share-based compensation for GAAP reporting using liability accounting, and measures compensation cost using the fair value method at each reporting date. For stock options, fair value is determined using an option pricing model that takes into account various information and assumptions including the Company's stock price, volatility, option price, vesting dates, exercise dates and projected option lapses. The Company used the intrinsic value method for statutory basis reporting through 2015. Under the intrinsic value based method, compensation cost is the excess, if any, of the quoted market price of the stock at grant date or other measurement date over the amount an employee must pay to acquire the stock. The fair value method was adopted for statutory basis reporting effective January 1, 2016. (K) Accounting Standards and Changes in Accounting In August 2018, the FASB issued ASU 2018-12 Financial Services-Insurance (Topic 944) - Targeted Improvements to the Accounting for Long-Duration Contracts . This update is aimed at improving the Codification as it relates to long-duration contracts which will improve the timeliness of recognizing changes in the liability for future policy benefits, simplify accounting for certain market-based options, simplify the amortization of deferred acquisition costs, and improve the effectiveness of required disclosures. Amendments include the following: A. Require insurance entity to (1) review and update assumptions used to measure cash flows at least annually (with changes recognized in net income) and (2) update discount rate assumption at each reporting date (with changes recognized in other comprehensive income). B. Require insurance entity to measure all market risk benefits associated with deposit (i.e. account balance) contracts at fair value, with change in fair value attributable to change in instrument-specific credit risk recognized in other comprehensive income. C. Simplify amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins and require those balances be amortized on constant level basis over expected term of related contract. Deferred acquisition costs are required to be written off for unexpected contract terminations but are not subject to impairment test. D. Require insurance entity to add disclosures of disaggregated rollforwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, and deferred acquisition costs. Insurance entity must also disclose information about significant inputs, judgments, assumptions, and methods used in measurement, including changes in those inputs, judgments, and assumptions, and the effect of those changes on measurement. These updates are required to be applied retrospectively to the earliest period presented in the financial statements for periods beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. In August 2018, the FASB issued a new Concepts Statement No. 8 Conceptual Framework for Financial Reporting - Chapter 8, Notes to Financial Statements . This was issued as part of a disclosure framework project aimed at improving disclosures in financial statements. This issuance provides conceptual guidance that may be followed when determining items to include as disclosures in the notes to financial statements. In conjunction with this issuance, the FASB also issued two accounting standard updates (“ASU”) which identified a particular FASB Topic and evaluated its disclosures through the new conceptual framework of Concepts Statement No. 8, Chapter 8. This process resulted in the issuance of the following two ASUs. In August 2018, FASB issued ASU 2018-13 F air Value Measurement (Topic 820) Disclosure Framework - Changes to the Disclosure requirements for Fair Value Measurement. This update removed disclosures for 1) amount of and reasons for transfers between Level 1 and Level 2 for fair value hierarchy, 2) policy for timing of transfers between levels, 3) valuation process for Level 3 fair value measurements. This update also added disclosure requirement as follows: 1) changes in unrealized gains and losses for the period included in OCI for recurring Level 3 fair value measurements held at end of reporting period; 2) range and weighted average (or other reasonable quantitative measurement) of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments will be effective for interim periods beginning after December 15, 2019. In August 2018, FASB issued ASU 2018-14 Compensation-Retirement Benefits - Defined Benefit Plans-General (Subtopic 715-20) Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . This update removed disclosures for 1) amounts in AOCI expected to be recognized as components of net periodic benefit cost over the next fiscal year, 2) amount and timing of plan assets expected to be returned to the employer, 3) related party disclosures about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan, 4) the effects of a one-percentage-point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of the net periodic benefit costs and (b) benefit obligation for postretirement health care benefits. This update also added disclosures as follow: 1) weighted-average interest crediting rates for cash balance plans and other plans with promised crediting rates, 2) explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. Finally, this update clarified that the following information for defined benefit pension plans should be disclosed: 1) projected benefit obligation (PBO) and fair value of plan assets for plans with PBO in excess of plan assets, 2) accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets. The amendments will be effective for fiscal periods ending after December 31, 2020. In August 2018, the SEC released a final rule updating disclosure requirements, Disclosure Update and Simplification, which resulted in the additional interim disclosure of an analysis of changes in stockholders’ equity to be required for the current and comparative quarter and year-to-date interim periods. Registrants will be required to provide an analysis of changes in each caption of stockholders’ equity and noncontrolling interests, which will need to be accompanied by dividends per share and in the aggregate for each class of shares. The disclosure must be presented in the form of a reconciliation, either as a separate statement or in the footnotes. The amendments will be effective for interim periods beginning after November 5, 2018. In June 2016 |
Deposits with Regulatory Author
Deposits with Regulatory Authorities | 12 Months Ended |
Dec. 31, 2018 | |
Deposits with Regulatory Authorities [Abstract] | |
Deposits With Regulatory Authorities | DEPOSITS WITH REGULATORY AUTHORITIES The following assets were on deposit with state and other regulatory authorities, as required by law, at the end of each year. December 31, 2018 2017 (In thousands) Debt securities held to maturity $ 14,708 14,596 Debt securities available for sale 570 685 Short-term investments 475 475 Totals $ 15,753 15,756 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS (A) Investment Income The major components of net investment income are as follows: Years Ended December 31, 2018 2017 2016 (In thousands) Gross investment income: Debt and equity securities $ 399,645 409,401 416,638 Mortgage loans 12,066 11,045 7,964 Policy loans 3,185 3,485 3,700 Derivative gains (losses) (80,004 ) 222,875 28,364 Short term investments 2,249 1,012 668 Other investment income 13,289 13,137 11,432 Total investment income 350,430 660,955 468,766 Less investment expenses 1,353 1,270 1,092 Net investment income $ 349,077 659,685 467,674 (B) Mortgage Loans and Real Estate A financing receivable is a contractual right to receive money on demand or on fixed or determinable dates that is recognized as an asset in a company’s statement of financial position. The Company’s mortgage, participation and mezzanine loans on real estate are the only financing receivables included in the Consolidated Balance Sheets. In general, the Company originates loans on high quality, income-producing properties such as shopping centers, freestanding retail stores, office buildings, industrial and sales or service facilities, selected apartment buildings, hotels, and health care facilities. The location of these properties is typically in major metropolitan areas that offer a potential for property value appreciation. Credit and default risk is minimized through strict underwriting guidelines and diversification of underlying property types and geographic locations. In addition to being secured by the property, mortgage loans with leases on the underlying property are often guaranteed by the lease payments and also by the borrower. This approach has proven to result in quality mortgage loans with few defaults. Mortgage loan interest income is recognized on an accrual basis with any premium or discount amortized over the life of the loan. Prepayment and late fees are recorded on the date of collection. The Company requires a minimum specified yield on mortgage loan investments determined by reference to currently available debt security instrument yields, plus a desired amount of incremental basis points. During the past several years, the low interest rate environment has resulted in fewer loan opportunities being available that meet the Company's required rate of return. Mortgage loans originated by the Company totaled $29.9 million and $59.4 million for the years 2018 and 2017 , respectively. Loans in foreclosure, loans considered impaired or loans past due 90 days or more are placed on a non-accrual status. If a mortgage loan is determined to be on non-accrual status, the mortgage loan does not accrue any income into the Consolidated Statements of Earnings. The loan is independently monitored and evaluated as to potential impairment or foreclosure. If delinquent payments are made and the loan is brought current, then the Company returns the loan to active status and accrues income accordingly. The Company has no loans past due 90 days which are accruing interest. The Company's direct investments in real estate historically have not been a significant portion of its total investment portfolio as most of these type of investments are acquired through mortgage loan foreclosures. The Company also participates in several real estate joint ventures and limited partnerships that invest primarily in income-producing retail properties. These investments have generally served to enhance the Company's overall investment portfolio returns. The Company held net investments in mortgage loans, after allowances for possible losses, totaling $203.2 million and $208.2 million at December 31, 2018 and 2017 , respectively. The diversification of the portfolio by geographic region, property type, and loan-to-value ratio was as follows: December 31, 2018 December 31, 2017 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Geographic Region: West South Central $ 116,205 57.0 $ 119,794 57.3 East North Central 20,944 10.3 30,876 14.8 South Atlantic 29,829 14.6 19,155 9.2 East South Central 13,801 6.8 14,273 6.8 West North Central 12,751 6.3 12,967 6.2 Pacific 6,626 3.2 8,014 3.8 Middle Atlantic 2,138 1.0 2,215 1.1 Mountain 1,561 0.8 1,605 0.8 Gross balance 203,855 100.0 208,899 100.0 Allowance for possible losses (675 ) (0.3 ) (650 ) (0.3 ) Totals $ 203,180 99.7 $ 208,249 99.7 December 31, 2018 December 31, 2017 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Property Type: Retail $ 96,075 47.1 $ 87,805 42.0 Office 71,194 34.9 74,301 35.6 Hotel 14,454 7.1 13,782 6.6 Land/Lots 3,498 1.7 10,563 5.1 All other 18,634 9.2 22,448 10.7 Gross balance 203,855 100.0 208,899 100.0 Allowance for possible losses (675 ) (0.3 ) (650 ) (0.3 ) Totals $ 203,180 99.7 $ 208,249 99.7 December 31, 2018 December 31, 2017 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Loan-to-Value Ratio (1): Less than 50% $ 66,371 32.6 $ 82,224 39.4 50% to 60% 22,610 11.1 27,395 13.1 60% to 70% 102,857 50.4 86,849 41.6 70% to 80% 6,642 3.3 — — 80% to 90% 5,375 2.6 6,929 3.3 Greater than 90% — — 5,502 2.6 Gross balance 203,855 100.0 208,899 100.0 Allowance for possible losses (675 ) (0.3 ) (650 ) (0.3 ) Totals $ 203,180 99.7 $ 208,249 99.7 (1) Loan-to-Value Ratio using the most recent appraised value. Appraisals are required at the time of funding and may be updated if a material change occurs from the original loan agreement. The greater than 90% category is related to loans made with a long standing borrower which are backed by the investment property, contracted leases and the guarantee of the borrower. All mortgage loans are analyzed quarterly in order to monitor the financial quality of these assets. Based on ongoing monitoring, mortgage loans with a likelihood of becoming delinquent are identified and placed on an internal “watch list”. Among the criteria that would indicate a potential problem are: major tenant vacancies or bankruptcies, late payments, and loan relief/restructuring requests. The mortgage loan portfolio is analyzed for the need for a valuation allowance on any loan that is on the internal watch list, in the process of foreclosure, or that currently has a valuation allowance. Mortgage loans are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. When it is determined that a loan is impaired, a loss is recognized for the difference between the carrying amount of the mortgage loan and the estimated value reduced by the cost to sell. Estimated value is typically based on the loan’s observable market price or the fair value of the collateral less cost to sell. Impairments and changes in the valuation allowance are reported in net realized capital gains (losses) in the Consolidated Statements of Earnings. The Company recognized no impairment losses for the years ended December 31, 2018 , 2017 and 2016 . The current mortgage loan valuation allowance represents a general valuation allowance established for the Company's mortgage loan portfolio based upon the Company's loss experience over an extended period of time and is not specifically identified to individual loans. Impairments are based on information which indicated that the Company may not collect all amounts in accordance with the mortgage agreement. While the Company closely monitors its mortgage loan portfolio, future changes in economic conditions can result in impairments beyond those currently identified. The following table represents the mortgage loan allowance for the years ended December 31, 2018 and 2017 : 2018 2017 (In thousands) Balance, beginning of period $ 650 650 Provision 25 — Releases — — Balance, end of period $ 675 650 The Company does not recognize interest income on loans past due 90 days or more. The Company had no mortgage loans past due six months or more at December 31, 2018 , 2017 and 2016 . There was no interest income not recognized in 2018 , 2017 and 2016 . The contractual maturities of mortgage loan principal balances at December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 Amount % Amount % (In thousands) (In thousands) Principal Balance by Contractual Maturity: Due in one year or less $ 23,839 11.7 $ 22,966 11.0 Due after one year through five years 39,391 19.3 41,248 19.7 Due after five years through ten years 134,574 65.8 119,966 57.2 Due after ten years through fifteen years 6,642 3.2 25,429 12.1 Totals $ 204,446 100.0 $ 209,609 100.0 The Company's direct investments in real estate investments are not a significant portion of its total investment portfolio. These investments totaled approximately $35.7 million at December 31, 2018 and $37.4 million at December 31, 2017 , and consist primarily of income-producing properties which are being operated by a wholly owned subsidiary of National Western. The Company’s real estate holdings are reflected in other long-term investments in the accompanying Consolidated Financial Statements. The Company records real estate at the lower of cost or fair value less estimated cost to sell, which is determined on an individual asset basis. The Company recognized operating income on these properties of approximately $2.2 million , $2.9 million and $2.6 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The Company had real estate investments that were non-income producing for the preceding twelve months totaling $5.2 million , $0.1 million and $0.2 million at December 31, 2018 , 2017 and 2016 , respectively. Included in the balance at December 31, 2018 is National Western's prior home office facility, owned by The Westcap Corporation ("Westcap"), which was being held for sale. Effective February 20, 2019, Westcap entered into an agreement to sell this property for approximately $8.6 million . Closing of the transaction is expected to occur during the third calendar quarter of 2019. The Company monitors the conditions and market values of these properties on a regular basis and makes repairs and capital improvements to keep the properties in good condition. The Company recorded net realized investment gains on disposals of $1.8 million , $2.7 million and $2.9 million associated with these real estate investments in the years ended December 31, 2018 , 2017 and 2016 , respectively. The net realized investment gain in 2018 was on a sale of previously occupied home office property located in Austin, Texas. The net realized investment gains in 2017 were on disposed properties located in Austin, Texas and Dallas, Texas. The net realized investment gains in 2016 were on disposed properties located in Brazoria County (Texas), Ruidoso, New Mexico, and Austin, Texas. During the year ended 2016 the Company purchased two properties, one located in Cypress, Texas and the other in Tupelo, Mississippi for a total of $16.8 million . (C) Debt Securities The table below presents amortized costs and fair values of securities held to maturity at December 31, 2018 . Securities Held to Maturity Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: U.S. Treasury $ 1,341 116 — 1,457 States and political subdivisions 457,404 9,764 (2,376 ) 464,792 Public utilities 930,629 5,928 (12,944 ) 923,613 Corporate 4,715,775 27,652 (87,043 ) 4,656,384 Residential mortgage-backed 1,176,216 13,771 (11,932 ) 1,178,055 Home equity 3,193 47 (10 ) 3,230 Manufactured housing 696 41 — 737 Totals $ 7,285,254 57,319 (114,305 ) 7,228,268 The table below presents amortized costs and fair values of securities available for sale at December 31, 2018 . As indicated in Note (1) Summary of Significant Accounting Policies, effective January 1, 2018, equity securities are no longer included in the Securities Available for Sale category. Securities Available for Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: States and political subdivisions $ 570 — (4 ) 566 Foreign governments 9,974 30 — 10,004 Public utilities 82,943 1,045 (517 ) 83,471 Corporate 2,893,221 15,473 (79,638 ) 2,829,056 Residential mortgage-backed 15,947 937 (84 ) 16,800 Home equity 5,969 193 — 6,162 Manufactured housing — — — — $ 3,008,624 17,678 (80,243 ) 2,946,059 The table below presents amortized costs and fair values of securities held to maturity at December 31, 2017 . Securities Held to Maturity Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: U.S. Treasury $ 1,337 177 — 1,514 States and political subdivisions 467,437 21,907 (100 ) 489,244 Public utilities 1,062,545 30,527 (894 ) 1,092,178 Corporate 4,430,099 121,978 (7,876 ) 4,544,201 Residential mortgage-backed 1,280,307 27,445 (6,216 ) 1,301,536 Home equity 4,262 57 (4 ) 4,315 Manufactured housing 1,037 79 — 1,116 Totals $ 7,247,024 202,170 (15,090 ) 7,434,104 The table below presents amortized costs and fair values of securities available for sale at December 31, 2017 . Securities Available for Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: States and political subdivisions $ 575 — (29 ) 546 Foreign governments 9,964 326 — 10,290 Public utilities 83,466 3,640 — 87,106 Corporate 2,842,381 81,737 (10,744 ) 2,913,374 Residential mortgage-backed 20,246 1,376 (52 ) 21,570 Home equity 7,878 367 — 8,245 Manufactured housing — — — — 2,964,510 87,446 (10,825 ) 3,041,131 Equity securities 12,890 5,708 (120 ) 18,478 Totals $ 2,977,400 93,154 (10,945 ) 3,059,609 The Company's investment policy is to invest in high quality securities with the primary intention of holding these securities until the stated maturity. As such, the portfolio has exposure to interest rate risk, which is the risk that funds are invested today at a market interest rate and in the future interest rates rise causing the current market price on that investment to be lower. This risk is not a significant factor relative to the Company's buy and hold portfolio, since the intention is to receive the stated interest rate and principal at maturity to match liability requirements to policyholders. Also, the Company takes steps to manage these risks. For example, the Company purchases mortgage-backed securities types that have more predictable cash flow patterns. In addition, the Company is exposed to credit risk which is continually monitored. Credit risk is the risk that an issuer of a security will not be able to fulfill their obligations relative to a security payment schedule and maturity date. The Company reviewed pertinent information for all issuers in an unrealized loss position at December 31, 2018 including market pricing history, credit ratings, analyst reports, as well as data provided by the issuers themselves. The Company then made a determination on each specific issuer relating to whether an other-than-temporary impairment existed. For the securities that have not been impaired at December 31, 2018 , the Company intends to hold these securities until recovery in fair value and expects to receive all amounts due relative to principal and interest. The Company held below investment grade debt securities totaling $94.2 million and $101.3 million at December 31, 2018 and 2017 , respectively. These amounts represent 0.9% and 0.9% of total invested assets for December 31, 2018 and 2017 , respectively. Below investment grade holdings are the result of credit rating downgrades subsequent to purchase, as the Company only invests in high quality securities with ratings quoted as investment grade. Below investment grade securities generally have greater default risk than higher rated corporate debt. The issuers of these securities are usually more sensitive to adverse industry or economic conditions than are investment grade issuers. For the year ended December 31, 2018 , the Company recorded net realized gains totaling $8.4 million related to the disposition of investment securities. The net realized gains included $0.0 million losses for other-than-temporary impairment write-downs on investments. For the years ended December 2017 and 2016 , the Company recorded net realized gains totaling $14.8 million and $13.1 million , respectively, related to disposition of securities. The following table shows the gross unrealized losses and fair values of the Company's held to maturity investments by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2018 . 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: State and political subdivisions $ 88,253 (2,124 ) 10,645 (252 ) 98,898 (2,376 ) Public utilities 396,980 (8,371 ) 98,632 (4,573 ) 495,612 (12,944 ) Corporate 2,144,969 (55,125 ) 650,401 (31,918 ) 2,795,370 (87,043 ) Residential mortgage-backed 202,986 (2,032 ) 311,374 (9,900 ) 514,360 (11,932 ) Home equity — — 1,976 (10 ) 1,976 (10 ) Total $ 2,833,188 (67,652 ) 1,073,028 (46,653 ) 3,906,216 (114,305 ) The following table shows the gross unrealized losses and fair values of the Company's available for sale investments by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2018 . 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: State and political subdivisions $ 566 (4 ) — — 566 (4 ) Public utilities 38,903 (517 ) — — 38,903 (517 ) Corporate 1,468,953 (44,575 ) 442,798 (35,063 ) 1,911,751 (79,638 ) Residential mortgage-backed — — 878 (84 ) 878 (84 ) Total $ 1,508,422 (45,096 ) 443,676 (35,147 ) 1,952,098 (80,243 ) The Company does not consider securities to be other-than-temporarily impaired where the market decline is attributable to factors such as market volatility, liquidity, spread widening and credit quality where it is anticipated that a recovery of all amounts due under the contractual terms of the security will occur and the Company has the intent and ability to hold until recovery or maturity. Based on its review, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2018 . The Company monitors the investment portfolio on an ongoing basis for any changes in issuer facts and circumstances that could result in future impairments. Gross unrealized losses for debt securities are made up of 653 individual issues, or 50.6% of the total debt securities held by the Company. The market value of these bonds as a percent of amortized cost averages 96.8% . Of the 653 securities, 195 , or approximately 29.9% , fall in the 12 months or greater aging category; and 644 were rated investment grade at December 31, 2018 . 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, 2017 . 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: State and political subdivisions $ 6,308 (14 ) 4,869 (86 ) 11,177 (100 ) Public utilities 68,368 (407 ) 34,091 (487 ) 102,459 (894 ) Corporate 248,844 (1,296 ) 431,591 (6,580 ) 680,435 (7,876 ) Residential mortgage-backed 130,015 (738 ) 192,399 (5,478 ) 322,414 (6,216 ) Home equity 2,830 (4 ) — — 2,830 (4 ) Total $ 456,365 (2,459 ) 662,950 (12,631 ) 1,119,315 (15,090 ) The following table shows the gross unrealized losses and fair values of the Company's available for sale investments by investment category, and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2017 . 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: State and political subdivisions $ 546 (29 ) — — 546 (29 ) Corporate 201,575 (1,134 ) 296,845 (9,610 ) 498,420 (10,744 ) Residential mortgage-backed 1,325 (14 ) 1,085 (38 ) 2,410 (52 ) Home equity 1,653 — — — 1,653 — 205,099 (1,177 ) 297,930 (9,648 ) 503,029 (10,825 ) Equity securities 1,246 (77 ) 289 (43 ) 1,535 (120 ) Total $ 206,345 (1,254 ) 298,219 (9,691 ) 504,564 (10,945 ) Unrealized losses increased in 2018 from 2017 levels primarily as a result of an increase in market interest rate levels during the year and a slight widening of spreads on corporate debt securities. The Company does not consider these investments to be other-than-temporarily impaired because the Company does not intend to sell these securities before recovery in fair value and expects to receive all amounts due relative to principal and interest. The amortized cost and fair value of investments in debt securities at December 31, 2018 , 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 $ 159,967 162,279 371,423 375,021 Due after 1 year through 5 years 1,076,437 1,073,423 2,885,587 2,889,770 Due after 5 years through 10 years 1,697,093 1,636,466 2,486,014 2,418,209 Due after 10 years 53,211 50,929 362,125 363,246 2,986,708 2,923,097 6,105,149 6,046,246 Mortgage and asset-backed securities 21,916 22,962 1,180,105 1,182,022 Total $ 3,008,624 2,946,059 7,285,254 7,228,268 The Company uses the specific identification method in computing realized gains and losses. The table below details the nature of realized gains and losses, excluding impairments, during the year. Years Ended December 31, 2018 2017 2016 (In thousands) Available for sale debt securities: Realized gains on disposal $ 3,447 5,208 2,644 Realized losses on disposal (6 ) (7 ) (29 ) Held to maturity debt securities: Realized gains on redemption 3,208 6,944 6,940 Realized losses on redemption — (74 ) (137 ) Equity securities realized gains — 147 702 Real estate 1,799 2,657 2,950 Mortgage loans (25 ) — — Other — — — Totals $ 8,423 14,875 13,070 One small municipal bond was sold out of the held to maturity portfolio during 2016 due to a material deterioration in the creditworthiness of the territory it pertained to. No sales were made out of the held to maturity portfolio in 2018 and 2017. Except for the total U.S. government agency mortgage-backed securities held, the Company had no other investments in any entity in excess of 10% of stockholders' equity at December 31, 2018 or 2017 . The table below presents net impairment losses recognized in earnings for the periods indicated. Years Ended December 31, 2018 2017 2016 (In thousands) Total other-than-temporary impairment recoveries (losses) on debt securities $ 12 599 110 Portion recognized in comprehensive income (12 ) (599 ) (110 ) Net impairment losses on debt securities recognized in earnings — — — Equity securities impairments — (112 ) — Totals $ — (112 ) — For the years ended December 31, 2018 , 2017 , and 2016 , the Company recovered $0.0 million , $0.6 million , and $0.1 million , respectively, on previously impaired asset-backed securities. The credit component of the asset-backed securities impairment was determined as the difference between amortized cost and the present value of the cash flows expected to be received, discounted at the original yield. The significant inputs used to project cash flows on asset-backed securities are estimated future prepayment rates, default rates and default loss severity. The table below presents a roll forward of credit losses on securities for which the Company also recorded non-credit other-than-temporary impairments in other comprehensive loss. Year Ended Year Ended December 31, 2018 December 31, 2017 (In thousands) Beginning balance, cumulative credit losses related to other-than-temporary impairments $ 627 1,440 Reductions for securities disposed during current period — (813 ) Additions for OTTI where credit losses have been previously recognized — — Ending balance, cumulative credit losses related to other-than-temporary impairments $ 627 627 (D) Net Unrealized Gains (Losses) Net unrealized gains (losses) on investment securities included in stockholders' equity at December 31, 2018 and 2017 , are as follows: December 31, 2018 2017 (In thousands) Gross unrealized gains $ 17,678 93,034 Gross unrealized losses (80,263 ) (10,856 ) Adjustments for: Deferred policy acquisition costs and sales inducements 24,237 (39,579 ) Deferred Federal income tax expense 8,053 (8,946 ) (30,295 ) 33,653 Net unrealized gains related to securities transferred to held to maturity — — Net unrealized gains (losses) on investment securities $ (30,295 ) 33,653 (E) Transfer of Securities |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2018 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCE The Company reinsures the risk on any one life in excess of $500,000 . Total life insurance in force was $18.6 billion and $19.7 billion at December 31, 2018 and 2017 , respectively. Of these amounts, life insurance in force totaling $4.0 billion and $4.4 billion was ceded to reinsurance companies on a yearly renewable term basis at December 31, 2018 and 2017 , respectively. In accordance with the reinsurance contracts, reinsurance receivables, including amounts related to claims incurred but not reported and liabilities for future policy benefits, totaled $1.1 million and $1.3 million at December 31, 2018 and 2017 , respectively. Premiums and contract revenues were reduced by $20.8 million , $20.3 million and $19.7 million for reinsurance premiums ceded during 2018 , 2017 and 2016 , respectively. Benefit expenses were reduced by $31.2 million , $7.5 million and $12.0 million , for reinsurance recoveries during 2018 , 2017 and 2016 |
Federal Income Taxes
Federal Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Federal Income Taxes | FEDERAL INCOME TAXES Total Federal income taxes were allocated as follows: Years Ended December 31, 2018 2017 2016 (In thousands) Taxes (benefits) on earnings from continuing operations: Current $ (1,697 ) 74,361 41,544 Deferred 26,446 (23,129 ) 10,426 Remeasurement of deferred taxes due to Tax Act — (17,098 ) — Taxes on earnings 24,749 34,134 51,970 Taxes (benefits) on components of stockholders' equity: Net unrealized gains and losses on securities available for sale (15,870 ) 2,736 5,382 Foreign currency translation adjustments 360 (5 ) (88 ) Change in benefit plan liability 3,003 (2,085 ) (62 ) Total Federal income taxes (benefit) $ 12,242 34,780 57,202 On December 22, 2017, the United States Congress enacted the Tax Cuts and Jobs Act ("Tax Act"). See Note 1 for further discussion. Among other things, the Tax Act reduces the federal corporate income tax rate from 35% to 21% effective in 2018. As a result of the change in the federal corporate income tax rate the Company was required to remeasure its deferred tax assets and liabilities at December 31, 2017 using the new corporate rate. This produced a one-time income tax benefit, with a corresponding decrease to the net deferred tax liability, of $17.1 million . As a consequence of the Tax Act, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , in February 2018 which provided the option for reclassification of certain stranded tax effects from accumulated other comprehensive income ("AOCI") to retained earnings. The Company elected to early adopt this standard as of December 31, 2017. Included in the remeasurement of deferred tax assets and liabilities producing the one-time income tax benefit discussed above were stranded taxes included in AOCI of $2.5 million . The provisions for Federal income taxes attributable to earnings from continuing operations vary from amounts computed by applying the statutory income tax rate to income statement earnings before Federal income taxes due to differences between the financial statement reporting and income tax treatment of certain items. These differences and the corresponding tax effects are as follows: Years Ended December 31, 2018 2017 2016 (In thousands) Income tax expense at statutory rate (21% in 2018 and 35% in 2017 and 2016) $ 29,716 50,594 53,502 Dividend received deduction (820 ) (1,099 ) (850 ) Tax exempt interest (1,416 ) (2,276 ) (2,193 ) Non deductible salary expense 54 — — Adjustments pertaining to prior tax years (3,071 ) 895 1,076 Nondeductible insurance 96 160 160 Nondeductible expenses 198 178 588 Remeasurement of deferred taxes due to Tax Act — (17,098 ) — Excess premium liability — 2,870 — Other, net (8 ) (90 ) (313 ) Taxes on earnings from continuing operations $ 24,749 34,134 51,970 The Company's policy is to record changes to deferred taxes for rate changes in the period when changes in tax laws have been enacted. Included in the 2018 adjustments pertaining to prior tax years is $0.5 million related to the writedown of deferred taxes due to the rate change in the Tax Act adjusted in the tax return. As described above there was a net decrease to the net deferred tax liability of $17.1 million recorded for the year ended December 31, 2017 caused by the rate change in the Tax Act. There were no deferred tax changes attributable to enacted tax rate changes for the years ended December 31, 2016 . The excess premium liability provision represents the nondeductible tax effect of an $8.2 million loss contingency recorded by the Company at December 31, 2017 related to excess premiums on certain of its policies. The Company generally expects its effective tax rate to be less than the current statutory rate due to recurring permanent differences that reduce tax expense, principally tax exempt interest income and the dividend received deduction. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2018 and 2017 are presented below. December 31, 2018 2017 (In thousands) Deferred tax assets: Future policy benefits, excess of financial accounting liabilities over tax liabilities $ 189,100 162,424 Investment securities write-downs for financial accounting purposes 311 196 Benefit plan liabilities 7,444 10,355 Real estate, principally due to adjustments for financial accounting purposes 16 — Accrued operating expenses recorded for financial accounting purposes not currently tax deductible 4,426 6,222 Tax reform reserve adjustment — 83,935 Accrued and unearned investment income recognized for tax purposes and deferred for financial accounting purposes 109 265 Net unrealized losses on debt securities available for sale 7,390 — Other 74 94 Total gross deferred tax assets 208,870 263,491 Deferred tax liabilities: Deferred policy acquisition and sales inducement costs, principally expensed for tax purposes (170,940 ) (180,780 ) Tax reform reserve adjustment (61,170 ) (83,935 ) Debt securities, principally due to deferred market discount for tax (7,370 ) (7,526 ) Real estate, principally due to adjustments for financial accounting purposes — (5 ) Net unrealized gains on securities available for sale — (8,945 ) Foreign currency translation adjustments (1,217 ) (857 ) Fixed assets, due to different depreciation bases (7,546 ) (6,853 ) Other (11 ) 2 Total gross deferred tax liabilities (248,254 ) (288,899 ) Net deferred tax liabilities $ (39,384 ) (25,408 ) Beginning January 1, 2018, the Tax Act imposed a limitation on life insurance tax reserves based upon the greater of net surrender value or 92.81% of the reserve method prescribed by the National Association of Insurance Commissioners which covers such contract as of the date the reserve is determined. The Company recognized the provisional tax impacts related to the change in the methodology employed to calculate tax reserves. As a result, the Company recorded a deferred tax asset and offsetting deferred tax liability of $83.9 million in the Consolidated Financial Statements for the year ended December 31, 2017. The amount recorded by the Company was considered provisional as the Company did not have the information currently available in appropriate detail to analyze and calculate the amount required under the change in methodology. Following additional guidance and software updates provided during 2018, the Company performed additional analysis and determined that the correct deferred tax liability as of December 31, 2017 approximated $69.9 million . This amount has been incorporated into the measurement of net deferred tax liabilities as of December 31, 2018. The total tax reserve adjustment of $332.9 million resulting from the limitation imposed under the Tax Act will be recognized as an increase of $41.6 million in taxable income per year through the year 2025. At the statutory rate of 21% , this results in additional tax of $8.7 million per year. There were no valuation allowances for deferred tax assets at December 31, 2018 and 2017 . In assessing deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and available tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deductible differences. In accordance with GAAP, the Company assessed whether it had any significant uncertain tax positions related to open examination or other IRS issues and determined that there were none. Accordingly, no reserve for uncertain tax positions has been recorded. Should a provision for any interest or penalties relative to unrecognized tax benefits be necessary, it is the Company's policy to accrue for such in its income tax accounts. There were no such accruals as of December 31, 2018 or 2017 . The Company and its corporate subsidiaries file a consolidated U.S. Federal income tax return, which is subject to examination for all years after 2014. |
Information Regarding Controlli
Information Regarding Controlling Stockholder | 12 Months Ended |
Dec. 31, 2018 | |
Information Regarding Controlling Stockholder [Abstract] | |
Information Regarding Controlling Stockholder | INFORMATION REGARDING CONTROLLING STOCKHOLDER Robert L. Moody Sr., Chairman Emeritus of the Board of Directors of NWLGI, owns 99.0% of the total outstanding shares of the Company's Class B common stock and 33.7% of the Class A common stock as of December 31, 2018 . |
Pension and Other Postretiremen
Pension and Other Postretirement Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Plans | PENSION AND OTHER POSTRETIREMENT PLANS (A) Defined Benefit Pension Plans National Western sponsors a qualified defined benefit pension plan covering employees enrolled prior to 2008. The plan provides benefits based on the participants' years of service and compensation. The company makes annual contributions to the plan that complies with the minimum funding provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). On October 19, 2007, National Western’s Board of Directors approved an amendment to freeze the Pension Plan as of December 31, 2007. The freeze ceased future benefit accruals to all participants and closed the Plan to any new participants. In addition, all participants became immediately 100% vested in their accrued benefits as of that date. As participants are no longer earning credit for service, future qualified defined benefit plan expense is projected to be minimal. The plan was amended in 2018 to increase the maximum pension value that may be distributed in a lump sum and to decrease the commencement age for in-service distributions by participants. Fair values of plan assets and liabilities are measured as of December 31 for each year. A detail of plan disclosures is provided below. Obligations and Funded Status December 31, 2018 2017 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 24,659 24,553 Service cost 111 106 Interest cost 899 957 Plan amendments (1,396 ) — Actuarial gain (loss) 494 558 Benefits paid (2,829 ) (1,515 ) Projected benefit obligations at end of year 21,938 24,659 Changes in plan assets: Fair value of plan assets at beginning of year 19,312 18,279 Actual return on plan assets (414 ) 2,442 Contributions 100 106 Benefits paid (2,829 ) (1,515 ) Fair value of plan assets at end of year 16,169 19,312 Funded status at end of year $ (5,769 ) (5,347 ) The service cost shown above for each year represents plan expenses expected to be paid out of plan assets. Under the clarified rules of the Pension Protection Act, plan expenses paid from plan assets are to be included in the plan's service cost component. December 31, 2018 2017 (In thousands) Amounts recognized in the Company's Consolidated Financial Statements: Assets $ — — Liabilities (5,769 ) (5,347 ) Net amount recognized $ (5,769 ) (5,347 ) Amounts recognized in accumulated other comprehensive income: Net loss $ 8,435 8,147 Prior service cost — — Net amount recognized $ 8,435 8,147 The accumulated benefit obligation was $21.9 million and $24.7 million at December 31, 2018 and 2017 , respectively. Components of Net Periodic Benefit Cost Years Ended December 31, 2018 2017 2016 (In thousands) Components of net periodic benefit costs: Interest cost $ 899 957 1,000 Service cost 111 106 105 Expected return on plan assets (1,300 ) (1,227 ) (1,215 ) Amortization of prior service cost — — — Amortization of net loss 524 638 772 Net periodic benefit cost 234 474 662 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net loss (gain) 812 (658 ) Amortization of prior service cost — — Amortization of net loss (gain) (524 ) (638 ) Total recognized in other comprehensive income 288 (1,296 ) Total recognized in net periodic benefit cost and other comprehensive income $ 522 (822 ) The components of net periodic benefit cost including service cost are reported in the line item “Other operating expenses” in the income statement. The estimated net loss that will be amortized from accumulated other comprehensive income into net periodic benefit cost over 2019 , based on the average expected future service of plan participants, is $0.6 million . The estimated prior service cost that will be amortized from accumulated other comprehensive income into net periodic benefit cost over 2019 will be minimal. Assumptions December 31, 2018 2017 Weighted-average assumptions used to determine benefit obligations: Discount rate 4.00 % 3.75 % Rate of compensation increase n/a n/a December 31, 2018 2017 2016 Weighted-average assumptions used to determine net periodic benefit cost: Discount rate 3.75 % 4.00 % 4.00 % Expected long-term return on plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase n/a n/a n/a The assumed long-term rate of return on plan assets is generally set at the rate expected to be earned based on the long-term investment policy of the plan and the various classes of invested funds, based on the input of the plan’s investment advisors and consulting actuary and the plan’s historic rate of return. As of December 31, 2018 , the plan’s average 10 -year and inception-to-date returns were 8.66% and 6.90% , respectively. In setting the annual discount rate assumption, the Pension Committee reviews current 10 year and 30 year corporate bond yields, the current spread to treasuries, and their relative change during the past twelve months. It also considers the present value of the projected benefit payment stream based on the Citigroup Pension Discount Curve and market data observations provided by independent consultants. In setting the annual portfolio rate of return assumption, the Pension Committee considers the Plan’s actual long-term performance, the portfolio’s current allocation and individual investment holdings, the Committee’s and the investment manager’s expectations for future long term investment strategy and expected performance, and the advice of consultants knowledgeable about overall market expectations and benchmark rates of return used by comparable companies. Plan Assets As discussed in Note 14, Fair Values of Financial Instruments, the Company adopted GAAP guidance which defines fair value and establishes a framework for measuring fair value of financial assets. Using this guidance, the Company has categorized its pension plan assets into a three level hierarchy, based on the priority of inputs to the valuation process. The fair value hierarchy classifications are reviewed annually. Reclassification of certain financial assets and liabilities may result based on changes in the observability of valuation attributes. The following tables set forth the Company’s pension plan assets within the fair value hierarchy as of December 31, 2018 and 2017 . December 31, 2018 Total Level 1 Level 2 Level 3 (In thousands) Cash and cash equivalents $ 209 209 — — Equity securities Domestic 9,909 9,909 — — International 193 193 — — Debt securities Corporate bonds 5,858 5,858 — Total $ 16,169 10,311 5,858 — December 31, 2017 Total Level 1 Level 2 Level 3 (In thousands) Cash and cash equivalents $ 662 662 — — Equity securities Domestic 11,885 11,885 — — International 394 394 — — Debt securities Corporate bonds 6,371 — 6,371 — Total $ 19,312 12,941 6,371 — Investment securities. Fair values for investments in debt and equity securities are based on quoted market prices, where available. For securities not actively traded, fair values are estimated using values obtained from various independent pricing services. In cases where prices are unavailable from these sources, values are estimated by discounting expected future cash flows using a current market rate applicable to the yield, credit quality, and maturity of the investments. Cash and cash equivalents. Carrying amounts reported in the Consolidated Balance Sheets for these instruments approximate their fair values. The plan’s weighted-average asset allocations by asset category have been as follows: December 31, 2018 2017 2016 Asset Category: Equity securities 63% 64% 62% Debt securities 36% 33% 31% Cash and cash equivalents 1% 3% 7% Total 100% 100% 100% The Company has established and maintains an investment policy statement for the assets held in the plan's trust. The investment strategies are of a long-term nature and are designed to meet the following objectives: ensure that funds are available to pay benefits as they become due set forth an investment structure detailing permitted assets and expected allocation ranges among classes ensure that plan assets are managed in accordance with ERISA The pension plan is a highly diversified portfolio. The 99% of pension assets not invested in cash is allocated among 208 different investments, with no single credit representing more than 2.6% of the fair value of the portfolio. The investment policy statement sets forth the following acceptable ranges for each asset's class. Acceptable Range Asset Category: Equity securities 55-70% Debt securities 30-40% Cash and cash equivalents 0-15% Deviations from these ranges are permitted if such deviations are consistent with the duty of prudence under ERISA. Investments in natural resources, venture capital, precious metals, futures and options, real estate, and other vehicles that do not have readily available objective valuations are not permitted. Short sales, use of margin or leverage, and investment in commodities and art objects are also prohibited. The investment policy statement is reviewed annually to ensure that the objectives are met considering any changes in benefit plan design, market conditions, or other material considerations. Contributions At present, National Western expects to contribute $644,000 to the plan during 2019 which amount includes a $500,000 voluntary contribution. Additional amounts may be contributed at the company's discretion. The plan’s funding status is reviewed periodically throughout the year by National Western’s Pension Plan Committee. The company intends to contribute at least the minimum amounts necessary for tax compliance and to maintain an Adjusted Funding Target Attainment Percentage ("AFTAP") of over 80% to meet the Pension Protection Act Plan’s threshold. Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2019 $ 1,482 2020 1,472 2021 1,455 2022 1,415 2023 1,372 2024-2028 6,561 National Western also sponsors three non-qualified defined benefit pension plans. The first plan covers certain senior officers and provides benefits based on the participants' years of service and compensation. The primary pension obligations and administrative responsibilities of the plan are maintained by a pension administration firm, which is a subsidiary of American National Insurance Company ("ANICO"), a related party. ANICO has guaranteed the payment of pension obligations under the plan. However, the company has a contingent liability with respect to the plan should these entities be unable to meet their obligations under the existing agreements. Also, the company has a contingent liability with respect to the plan in the event that a plan participant continues employment with 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 this 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 then Chairman and the then 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 non-qualified defined benefit plan for the benefit of the then Chairman of the company. This plan is intended to provide for post-2004 benefit accruals that mirror and supplement the pre-2005 benefit accruals under the previously discussed non-qualified plan, while complying with the requirements of the Act. Effective November 1, 2005, National Western established a third non-qualified defined benefit plan for the benefit of the then President of the company. This plan is intended to provide for post-2004 benefit accruals that supplement the pre-2005 benefit accruals under the first non-qualified plan as previously discussed, while complying with the requirements of the Act. A detail of plan disclosures related to the amendments of the original plan and the additional two plans is provided below: Obligations and Funded Status December 31, 2018 2017 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 36,914 26,232 Service cost 361 818 Interest cost 852 1,387 Actuarial (gain) loss (13,870 ) 10,459 Benefits paid (1,982 ) (1,982 ) Projected benefit obligations at end of year 22,275 36,914 Change in plan assets: Fair value of plan assets at beginning of year — — Contributions 1,982 1,982 Benefits paid (1,982 ) (1,982 ) Fair value of plan assets at end of year — — Funded status at end of year $ (22,275 ) (36,914 ) December 31, 2018 2017 (In thousands) Amounts recognized in the Company's Consolidated Financial Statements: Assets $ — — Liabilities (22,275 ) (36,914 ) Net amount recognized $ (22,275 ) (36,914 ) Amounts recognized in accumulated other comprehensive income: Net loss $ 4,475 19,049 Prior service cost 522 582 Net amount recognized $ 4,997 19,631 The accumulated benefit obligation was $18.1 million and $20.7 million at December 31, 2018 and 2017 , respectively. Components of Net Periodic Benefit Cost Years Ended December 31, 2018 2017 2016 (In thousands) Components of net periodic benefit cost: Service cost $ 361 818 438 Interest cost 852 1,387 1,058 Amortization of prior service cost 59 59 59 Amortization of net loss 704 3,274 2,003 Net periodic benefit cost 1,976 5,538 3,558 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net (gain) loss (13,870 ) 10,459 Amortization of prior service cost (59 ) (59 ) Amortization of net (gain) loss (704 ) (3,274 ) Total recognized in other comprehensive income (14,633 ) 7,126 Total recognized in net periodic benefit cost and other comprehensive income $ (12,657 ) 12,664 The components of net periodic benefit cost including service cost are reported in the line item “Other operating expenses” in the income statement. The estimated net loss to be amortized from accumulated other comprehensive income into net periodic benefit cost over 2019 , based on the average expected future service of plan participants, is $0.5 million . The estimated prior service cost to be amortized from accumulated other comprehensive income into net periodic benefit cost over 2019 will be $59,000 . Assumptions December 31, 2018 2017 Weighted-average assumptions used to determine benefit obligations: Discount rate 4.00 % 3.75 % Rate of compensation increase 8.00 % 8.00 % December 31, 2018 2017 2016 Weighted-average assumptions used to determine net periodic benefit costs: Discount rate 3.75 % 4.00 % 4.00 % Expected long-term return on plan assets n/a n/a n/a Rate of compensation increase 8.00 % 8.00 % 8.00 % The plan is unfunded and therefore no assumption has been made related to the expected long-term return on plan assets. Plan Assets The plan is unfunded and therefore had no assets at December 31, 2018 or 2017 . Contributions National Western expects to contribute approximately $2.0 million to the plan in 2019 . Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2019 $ 1,982 2020 1,982 2021 1,982 2022 1,982 2023 1,982 2024-2028 7,228 (B) Defined Contribution Pension Plans In addition to the defined benefit pension plans, National Western sponsors a qualified 401(k) plan for substantially all employees and a non-qualified deferred compensation plan primarily for senior officers. The company made annual contributions to the 401(k) plan in 2018 , 2017 , and 2016 of up to four percent of each employee's compensation, based on the employee's personal level of salary deferrals to the plan. All company contributions are subject to a vesting schedule based on the employee's years of service. For the years ended December 31, 2018 , 2017 and 2016 , company contributions totaled $615,000 , $549,000 and $421,000 , respectively. The non-qualified deferred compensation plan was established to allow eligible employees to defer the payment of a percentage of their compensation and to provide for additional company contributions. Company contributions are subject to a vesting schedule based on the employee's years of service. For the years ended December 31, 2018 , 2017 and 2016 , company contributions totaled $127,000 , $119,000 , and $95,000 , respectively. (C) Postretirement Employment Plans Other Than Pension National Western sponsors a health care plan that was amended in 2004 to provide postretirement benefits to certain fully-vested individuals. The plan is unfunded. The company uses a December 31 measurement date for the plan. A detail of plan disclosures related to the plan is provided below: Obligations and Funded Status December 31, 2018 2017 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 3,774 3,366 Interest cost 158 139 Actuarial loss (gain) 298 274 Benefits paid — (5 ) Projected benefit obligations at end of year 4,230 3,774 Changes in plan assets: Fair value of plan assets at beginning of year — — Contributions — 5 Benefits paid — (5 ) Fair value of plan assets at end of year — — Funded status at end of year $ (4,230 ) (3,774 ) December 31, 2018 2017 (In thousands) Amounts recognized in the Company's Consolidated Financial Statements: Assets $ — — Liabilities (4,230 ) (3,774 ) Net amount recognized $ (4,230 ) (3,774 ) Amounts recognized in accumulated other comprehensive income: Net loss $ 816 669 Prior service cost 51 155 Net amount recognized $ 867 824 Components of Net Periodic Benefit Cost Years Ended December 31, 2018 2017 2016 (In thousands) Components of net periodic benefit cost: Interest cost $ 158 139 121 Amortization of prior service cost 103 103 103 Amortization of net loss 151 41 — Net periodic benefit cost 412 283 224 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net (gain) loss 298 274 Amortization of prior service cost (103 ) (103 ) Amortization of net (gain) loss (151 ) (41 ) Total recognized in other comprehensive income 44 130 Total recognized in net periodic benefit cost and other comprehensive income $ 456 413 The components of net periodic benefit cost including service cost are reported in the line item “Other operating expenses” in the income statement. The estimated net loss to be amortized from accumulated other comprehensive income into net periodic benefit cost over 2019 , based on the average expected future service of plan participants, is $79,000 . The estimated prior service cost to be amortized from accumulated other comprehensive income into net periodic benefit cost over 2019 will be $52,000 . Assumptions December 31, 2018 2017 Weighted-average assumptions used to determine benefit obligations: Discount rate 4.00 % 3.75 % Expected long-term return on plan assets n/a n/a For measurement purposes, a 9% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2019 , decreasing annually by 0.5% until reaching an ultimate rate of 5% . Assumed health care trend rates have a significant effect on the amounts reported for the health care plans. A one percentage point change in assumed health care cost trend rates would have the following effects for the years ended. December 31, 2018 December 31, 2017 1% Point Increase 1% Point Decrease 1% Point Increase 1% Point Decrease (In thousands) Effect on total of service and interest cost components $ 24 (24 ) 22 (21 ) Effect on postretirement benefit obligation $ 630 (624 ) 607 (592 ) Plan Assets The plans are unfunded and therefore had no assets at December 31, 2018 and 2017 . Contributions The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2019 $ 104 2020 111 2021 118 2022 124 2023 129 2024-2028 749 |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Short-term Debt [Abstract] | |
Short-Term Borrowings | SHORT-TERM BORROWINGS National Western has available a $75 million bank line of credit (with Moody National Bank, its custodian bank and a related party) primarily for cash management purposes. The line of credit facility was increased from $40 million effective October 1, 2018. The Company is required to maintain a collateral security deposit in trust with the sponsoring bank having a fair value equal to 110% of any outstanding liability. The Company had no outstanding borrowings with the bank at December 31, 2018 or 2017 . The Company maintained assets having an amortized value of $84.5 million (fair value of $86.6 million ) on deposit with the lender at December 31, 2018 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES (A) Legal Proceedings In the normal course of business, the Company is involved or may become involved in various legal actions in which claims for alleged economic and punitive damages have been or may be asserted, some for substantial amounts. In recent years, carriers offering life insurance and annuity products have faced litigation, including class action lawsuits, alleging improper product design, improper sales practices, and similar claims. As previously disclosed, the Company has been a defendant in prior years in such class action lawsuits. 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. 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, which the Court denied on May 5, 2016. National Western filed a Notice of Appeal on June 10, 2016, filed its Appeal Brief on September 12, 2016, and oral arguments with the U.S. Court of Appeals for the First Circuit were held on March 9, 2017. On June 29, 2017, the Court of Appeals vacated the district court's judgment and remanded to the district court to determine whether it is nevertheless equitable for the case to proceed without Francisco Iglesias-Alvarez. Plaintiffs filed a Motion in Support of Determination in Equity and Good Conscience That Action Should Proceed Among Existing Parties Under Fed.R.Civ.P. 19(B) on September 14, 2017, and National Western filed its Opposition to Plaintiffs' Motion on October 27, 2017. On April 2, 2018 the Court asked the parties for additional briefing regarding the Court's jurisdiction over Francisco Iglesias-Alvarez, which the parties filed on April 30, 2018. On May 14, 2018, National Western filed its Opposition to Plaintiffs' Brief. Plaintiffs filed a Motion to Strike on May 22, 2018, which National Western opposed on June 4, 2018. On August 6, 2018, the Court issued an Opinion and Order dismissing plaintiffs’ case without prejudice and plaintiffs filed a Notice of Appeal to the First Circuit Court of Appeals on September 4, 2018. The case settled in December of 2018, without an admission of liability by either party, via a settlement amount less than the amount previously accrued. On September 28, 2017, a purported shareholder derivative lawsuit was filed in the 122nd District Court of Galveston County, State of Texas entitled Robert L. Moody, Jr. derivatively on behalf of National Western Life Insurance Company and National Western Life Group, Inc. v. Ross Rankin Moody, et al., naming certain current and former directors and current officers as defendants. The complaint challenges the directors’ oversight of insurance sales to non-U.S. residents and alleges that the defendants breached their fiduciary duties in the conduct of their duties as board members by failing to act (i) on an informed basis and (ii) in good faith or with the honest belief that their actions were in the best interests of the Company. The complaint seeks an undetermined amount of damages, attorneys’ fees and costs, and equitable relief, including the removal of the Company’s Chairman and Chief Executive Officer and other board members and/or officers of the Company. The Company believes that the claims in the complaint are baseless and without merit, will vigorously defend this lawsuit, and will seek reimbursement of all legal costs and expenses from plaintiff. The Company believes, based on information currently available, that the final outcome of this lawsuit will not have a material adverse effect on the Company’s business, results of operations, or consolidated financial position. The companies and directors filed their respective Pleas to the Jurisdiction ("Pleas") contesting the plaintiff's standing to even pursue this action, along with their Answers, on October 27, 2017. On December 14, 2017, plaintiff filed a Response to the Pleas and on December 21, 2017, the Court heard oral argument on the Pleas. Plaintiff then filed a First Amended Petition on January 11, 2018. The companies and directors filed a Supplement to the Pleas on January 30, 2018, to which plaintiff responded on February 1, 2018, and the companies and directors replied on February 9, 2018. On May 3, 2018, the Court issued a memorandum to all attorneys of record stating that the Court will grant the defendants' Pleas and asking the attorney for defendants to prepare and submit proposed orders/judgments granting the requested relief for consideration by the Court. The defendants filed such proposed order granting the Pleas on May 7, 2018. On May 16, 2018 the Court issued an Order granting the Pleas and dismissing Robert L. Moody, Jr.’s claims with prejudice, and plaintiff then filed a Motion to Transfer Venue (“MTTV”). Defendants filed an Application for Fees, seeking to recover defendants’ legal costs and expenses from plaintiff, and a Response to the MTTV on June 8, 2018. In response plaintiff filed a Motion to Vacate, a Response to the Application for Fees, and their own Request for Attorney’s Fees on July 5, 2018. Defendants filed a Response to the Motion to Vacate and to plaintiff’s Request for Attorney’s Fees on July 11, 2018, and the Court heard oral arguments on July 16, 2018. Plaintiff filed supplemental briefing in support of their July 5, 2018 filings on July 25, 2018, and defendants filed their response to plaintiff's supplemental briefing on July 27, 2018. On August 8, 2018 the Court issued an Order denying plaintiff's Motion to Vacate. Pursuant to the Court’s instructions, on October 5, 2018, defendants filed an Order Granting Application for Expenses. Defendants then filed a Motion for Entry of Final Judgment and a Request for Submission Date on Motion for Entry of Final Judgment on October 11, 2018, which the Court set as October 30, 2018. Plaintiff filed his Objection to Proposed Final Judgment and Objection to Proposed Order on Attorneys’ Fees on October 25, 2018, to which defendants filed a response on October 30, 2018. On November 11, 2018, the Court issued its Final Judgment: ordering Plaintiff to pay the companies $1,314,053.73 for reasonable and necessary fees and expenses; denying Plaintiff’s Motion to Transfer Venue, and; dismissing Plaintiff’s counterclaim. Plaintiff has appealed the Court’s Final Judgment and that appeal is pending before the First District Court of Appeals in Houston, TX. 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, Brazilian authorities 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 issued a subpoena in March of 2015 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 has been cooperating with the relevant governmental authorities in regard to this matter. (B) Financial Instruments In order to meet the financing needs of its customers in the normal course of business, the Company is a party to financial instruments with off-balance sheet risk. These financial instruments are commitments to extend credit which involve elements of credit and interest rate risk in excess of the amounts recognized in the Consolidated Balance 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 $13.5 million in commitments to fund new loans and $4.3 million in commitments to extend credit relating to existing loans at December 31, 2018 . The Company evaluates each customer's creditworthiness on a case-by-case basis. (C) Guaranty Association Assessments National Western is subject to state guaranty association assessments in all states in which it is licensed to do business. These associations generally guarantee certain levels of benefits payable to resident policyholders of insolvent insurance companies. Many states allow premium tax credits for all or a portion of such assessments, thereby allowing potential recovery of these payments over a period of years. However, several states do not allow such credits. The Company estimates its liabilities for guaranty association assessments by using the latest information available from the National Organization of Life and Health Insurance Guaranty Associations. The Company monitors and revises its estimates for assessments as additional information becomes available which could result in changes to the estimated liabilities. As of December 31, 2018 , 2017 and 2016 , liabilities for guaranty association assessments totaled $0.1 million , $0.3 million and $0.3 million , respectively. Other operating expenses related to state guaranty association assessments were minimal for the years ended December 31, 2018 , 2017 and 2016 . (D) Leases The Company leases various computers and other office related equipment under operating leases. Rental expenses for these leases were $0.4 million , $0.3 million and $0.2 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. In October 2017, the Company entered into a lease agreement for new equipment under a capital lease. This lease will expire in December 2022. The present value of future payments capitalized amounted to $1.6 million and amortization commenced in 2018. The Company's future annual lease obligations as of December 31, 2018 are as shown below (in thousands). 2019 $ 359 2020 359 2021 358 2022 358 Total minimum lease payments 1,434 Less: Interest (117 ) Present value of net minimum lease payments $ 1,317 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY (A) Changes in Common Stock Shares Outstanding Changes in shares of common stock outstanding are provided below. Years Ended December 31, 2018 2017 2016 (In thousands) Common stock shares outstanding: Shares outstanding at beginning of year 3,636 3,636 3,636 Shares exercised under stock option plan — — — Shares outstanding at end of year 3,636 3,636 3,636 (B) Dividend Restrictions National Western is restricted by state insurance laws as to dividend amounts which may be paid to stockholders without prior approval from the Colorado Division of Insurance. The restrictions are based on the lesser 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 2019 is $30.7 million . As discussed in Note (1) Consolidation and Basis of Presentation, on October 1, 2015, National Western completed its previously announced holding company reorganization and became a wholly owned subsidiary of NWLGI. While remaining under the same Colorado Division of Insurance restrictions pertaining to dividend amounts, dividends declared by National Western from that date forward are payable entirely to NWLGI as the sole owner. On October 19, 2018, the Board of Directors of NWLGI declared a cash dividend to stockholders on record as of November 7, 2018 which was paid December 3, 2018. The dividends approved were $0.36 per common share to Class A stockholders and $0.18 per common share to Class B stockholders. A dividend in the same amounts per share on Class A and Class B shares was declared in October 2017 and paid in December of 2017. During 2018, the Board of Directors of National Western declared ordinary cash dividends aggregating $6.0 million which were paid to NWLGI in 2018. During 2017, the Board of Directors of National Western declared ordinary cash dividends totaling $7.0 million which were paid to NWLGI during that year. Dividends paid from National Western to NWLGI are eliminated in consolidation. (C) Regulatory Capital Requirements The Colorado Division of Insurance imposes minimum risk-based capital requirements on insurance companies that were developed by the National Association of Insurance Commissioners ("NAIC"). The formulas for determining the amount of risk-based capital ("RBC") specify various weighting factors that are applied to statutory financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio of National Western's regulatory total adjusted capital to its authorized control level RBC, as defined by the NAIC. Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. National Western's current authorized control level RBC of $127.3 million is significantly below its regulatory total adjusted capital of $1.4 billion . (D) 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 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 holding company reorganization in 2015. On June 15, 2016, stockholders of NWLGI approved an amended and restated 2008 Plan ("Incentive Plan"), which extended the term of the 2008 Plan for ten years from the date of stockholder approval. The Incentive Plan includes additional provisions, most notably regarding the definition of performance objectives which could be used in the issuance of the fourth type of award noted above (performance awards). All of the employees of the Company and its subsidiaries are eligible to participate in the current Incentive 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. At the end of 2018, all stock options granted under the 1995 Plan and 2008 Plan had been exercised, forfeited, or expired. Employee stock option and SARs granted prior to 2016 vest 20% annually following three years of service following the grant date. Employee SARs granted 2016 forward vest 33.3% annually following one year of service from the date of the grant. Directors' stock option and SAR 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 stock 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. These plans were assumed as well by NWLGI from National Western pursuant to the terms of the holding company reorganization. The Incentive 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. For employees, the vesting period for RSUs is 100% at the end of three years from the grant date. 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. 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. PSUs also vest three years from the date of grant. For PSUs, the performance period begins the first day of the calendar year in which the PSUs are granted and runs three calendar 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. Directors of the Company are eligible to receive RSUs under the Incentive Plan. As shown in the table below, during the twelve months ended December 31, 2018 and 2017 , the Company granted RSUs to directors based upon the closing market price per Class A common share at the time of the grant. Unlike RSUs granted to officers, the RSUs granted to directors vest one year from the date of grant. They are payable in cash at the vesting date equal to the closing price of the Company's Class A common share at that time. The following table shows all grants issued to officers and directors for the twelve months ended December 31, 2018 and 2017 . These grants were made based upon closing market price per Class A common share at the grant date. Twelve Months Ended December 31, 2018 December 31, 2017 Officers Directors Officers Directors SARs 12,590 — 22,184 — RSUs 3,149 1,980 5,341 3,290 PSUs 5,070 — 8,736 — The Company uses the current fair value method to measure compensation cost for awards granted under the share-based plans. As of December 31, 2018 and 2017, the liability balance was $11.9 million and $15.2 million , respectively. A summary of awards by type and related activity is detailed below. Options Outstanding Shares Available For Grant Shares Weighted-Average Exercise Price Stock Options: Balance at January 1, 2018 291,000 18,018 $ 242.07 Exercised — (18,018 ) $ 242.07 Forfeited — — $ — Expired — — $ — Stock options granted — — $ — Balance at December 31, 2018 291,000 — $ — Liability Awards Other Share/Unit Awards: SARs RSUs PSUs Balance at January 1, 2018 92,667 11,721 14,052 Exercised (14,034 ) (3,124 ) — Forfeited (1,780 ) (556 ) — Granted 12,590 5,129 5,070 Balance at December 31, 2018 89,443 13,170 19,122 The total intrinsic value of options, SARs, and RSUs exercised was $4.7 million , $1.8 million , and $3.6 million for the years ended December 31, 2018 , 2017 , and 2016 respectively. The total share-based liabilities paid were $4.7 million , $1.8 million , and $3.6 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. The total fair value of options, SARs, and RSUs vested during the years ended December 31, 2018 , 2017 , and 2016 was $3.1 million , $2.7 million , and $1.5 million , respectively. The following table summarizes information about SARs outstanding at December 31, 2018 . SARs Outstanding Number Outstanding Weighted-Average Remaining Contractual Life Number Exercisable Exercise prices: 132.56 19,568 3.0 years 19,568 210.22 25,000 4.9 years 16,400 216.48 11,649 7.1 years 7,589 311.16 10,427 8.1 years 3,444 310.55 203 8.3 years 67 334.34 10,006 9.0 years 3,329 303.77 12,590 10.0 years — Totals 89,443 50,397 Aggregate intrinsic value (in thousands) $ 6,533 $ 5,413 The aggregate intrinsic value in the table above is based on the closing stock price of $300.70 per share on December 31, 2018 . In estimating the fair value of SARs/options outstanding at December 31, 2018 and 2017, the Company employed the Black-Scholes option pricing model with assumptions as detailed below. December 31, 2018 December 31, 2017 Expected term of SARs/options 3.0 to 10.0 years 0.3 to 10.0 years Expected volatility weighted-average 22.14 % 21.55 % Expected dividend yield 0.12 % 0.11 % Risk-free rate weighted-average 2.58 % 1.82 % The Company reviewed the contractual term relative to the options and SARs at each date 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/SARs expected exercise date. The pre-tax compensation expense/(benefit) recognized in the Consolidated Financial Statements related to these plans was $1.4 million , $5.0 million and $7.9 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The related tax (benefit)/expense recognized was $(0.3) million , $(1.8) million and $(2.8) million for the years ended December 31, 2018 , 2017 and 2016 , respectively. For the years ended December 31, 2018 , 2017 and 2016 , the total pre-tax compensation expense related to nonvested share-based awards not yet recognized was $7.1 million , $7.8 million and $2.3 million , respectively. The December 31, 2018 amount is expected to be recognized over a weighted-average period of 1.6 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share of common stock are computed by dividing net income available to each class of common stockholders on an as if distributed basis by the weighted-average number of common shares outstanding for the period. Diluted earnings per share, by definition, reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock, that then shared in the distributed earnings of each class of common stock. U.S. GAAP requires a two-class presentation for the Company’s two classes of common stock (Note 6, Information Regarding Controlling Stockholder). The Company currently has no share-based compensation awards outstanding that could be redeemed for shares of common stock. Net income for the periods shown below is allocated between Class A shares and Class B shares based upon (1) the proportionate number of shares issued and outstanding as of the end of the period, and (2) the per share dividend rights of the two classes under the Company's Restated Certificate of Incorporation (the Class B dividend per share is equal to one-half the Class A dividend per share). Years Ended December 31, 2018 2017 2016 Class A Class B Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net earnings $ 116,758 110,421 100,892 Dividends – Class A shares (1,237 ) (1,237 ) (1,237 ) Dividends – Class B shares (36 ) (36 ) (36 ) Undistributed earnings $ 115,485 109,148 99,619 Allocation of net earnings: Dividends $ 1,237 36 1,237 36 1,237 36 Allocation of undistributed earnings 112,219 3,266 106,061 3,087 96,802 2,817 Net earnings $ 113,456 3,302 107,298 3,123 98,039 2,853 Denominator: Basic earnings per share - weighted-average shares 3,436 200 3,436 200 3,436 200 Effect of dilutive stock options — — — — 1 — Diluted earnings per share - adjusted weighted-average shares for assumed conversions 3,436 200 3,436 200 3,437 200 Basic earnings per share $ 33.02 16.51 31.23 15.61 28.53 14.27 Diluted earnings per share $ 33.02 16.51 31.23 15.61 28.53 14.27 |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Comprehensive Income | COMPREHENSIVE INCOME GAAP guidance requires that all items recognized under accounting standards as components of comprehensive income (loss) be reported in a financial statement that is displayed with the same prominence as other financial statements. This guidance requires that an enterprise (a) classify items of other comprehensive income by their nature in a financial statement and (b) display the accumulated balance of other comprehensive income (loss) separately from retained earnings and additional paid-in capital in the equity section of a statement of financial position. This guidance affects the Company's reporting presentation of certain items such as foreign currency translation adjustments, unrealized gains and losses on investment securities, and benefit plan liabilities. These items are reflected as components of other comprehensive income (loss), net of taxes, as reported in the accompanying Consolidated Financial Statements. During the year ended December 31, 2017, the Company remeasured its deferred tax assets and liabilities as a consequence of the Tax Act (see Notes 1 and 5) lowering the federal corporate income tax rate from 35% to 21% . This tax remeasurement was recorded in the Company's Consolidated Statements of Earnings, including taxes associated with components of other comprehensive income (loss). Recognizing the outcome of "stranding" deferred taxes in Accumulated Other Comprehensive Income ("AOCI"), the FASB released guidance permitting the reclassification of stranded tax effects from AOCI to retained earnings. Adoption of this guidance by the Company at December 31, 2017 resulted in a one-time income tax benefit of $2.5 million to other comprehensive income (loss). Components of other comprehensive income (loss) for 2018 , 2017 and 2016 and the related tax effect are detailed below. Amounts Before Taxes Tax (Expense) Benefit Amounts Net of Taxes (In thousands) 2018: Unrealized gains on securities, net of effects of deferred costs of $63,816: Net unrealized holding gains (losses) arising during the period $ (71,921 ) 15,103 (56,818 ) Unrealized liquidity losses 3 (1 ) 2 Reclassification adjustment for net gains included in net earnings (3,441 ) 723 (2,718 ) Amortization of net unrealized gains (losses) and related to transferred securities — — — Net unrealized gains (losses) on securities (75,359 ) 15,825 (59,534 ) Foreign currency translation adjustments 1,714 (360 ) 1,354 Benefit plan liability adjustment 14,301 (3,003 ) 11,298 Other comprehensive income (loss) $ (59,344 ) 12,462 (46,882 ) Amounts Before Taxes Tax (Expense) Benefit Amounts Net of Taxes (In thousands) 2017: Unrealized gains on securities, net of effects of deferred costs of $(5,670): Net unrealized holding gains (losses) arising during the period $ 12,752 (4,464 ) 8,288 Unrealized liquidity losses 300 (105 ) 195 Reclassification adjustment for net gains included in net earnings (5,236 ) 1,833 (3,403 ) Amortization of net unrealized gains (losses) related to transferred securities — — — Net unrealized gains (losses) on securities 7,816 (2,736 ) 5,080 Foreign currency translation adjustments (14 ) 5 (9 ) Benefit plan liability adjustment (5,958 ) 2,085 (3,873 ) Other comprehensive income (loss) $ 1,844 (646 ) 1,198 Amounts Before Taxes Tax (Expense) Benefit Amounts Net of Taxes (In thousands) 2016: Unrealized gains on securities, net of effects of deferred costs of $(21,105): Net unrealized holding gains (losses) arising during the period $ 19,417 (6,796 ) 12,621 Unrealized liquidity losses 57 (20 ) 37 Reclassification adjustment for net gains included in net earnings (3,315 ) 1,160 (2,155 ) Amortization of net unrealized gains (losses) related to transferred securities — — — Net unrealized gains (losses) on securities 16,159 (5,656 ) 10,503 Foreign currency translation adjustments (251 ) 87 (164 ) Benefit plan liability adjustment (178 ) 62 (116 ) Other comprehensive income (loss) $ 15,730 (5,507 ) 10,223 |
Segment and Other Operating Inf
Segment and Other Operating Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment and Other Operating Information | SEGMENT AND OTHER OPERATING INFORMATION (A) Operating Segment Information The Company defines its reportable operating segments as domestic life insurance, international life insurance, and annuities. The Company's segments are organized based on product types and geographic marketing areas. In addition, the Company regularly evaluates operating performance using non-GAAP financial measures which exclude or segregate realized investment gains and losses from operating revenues and earnings. The Company believes that the presentation of these non-GAAP financial measures enhances the understanding of the Company's results of operations by highlighting the results from ongoing operations and the underlying profitability factors of the Company's business. The Company excludes or segregates realized investment gains and losses because such items are often the result of events which may or may not be at the Company's discretion and the fluctuating effects of these items could distort trends in the underlying profitability of the Company's business. A summary of segment information, prepared in accordance with GAAP guidance, is provided below. Domestic Life Insurance International Life Insurance Annuities All Others Totals (In thousands) 2018: Selected Balance Sheet Items: Deferred policy acquisition costs and sales inducements $ 122,661 243,518 609,239 — 975,418 Total segment assets 1,215,864 1,211,036 8,791,463 370,118 11,588,481 Future policy benefits 1,039,150 894,891 7,810,245 — 9,744,286 Other policyholder liabilities 17,439 20,381 97,874 — 135,694 Condensed Income Statements: Premiums and contract charges $ 40,879 108,923 23,694 — 173,496 Net investment income 23,579 22,603 276,123 26,772 349,077 Other revenues 19 87 66 20,431 20,603 Total revenues 64,477 131,613 299,883 47,203 543,176 Life and other policy benefits 21,688 22,333 21,276 — 65,297 Amortization of deferred policy acquisition costs 11,539 24,358 78,874 — 114,771 Universal life and annuity contract interest 8,826 24,590 102,639 — 136,055 Other operating expenses 20,731 19,593 32,584 21,061 93,969 Federal income taxes (benefit) 292 7,035 11,139 4,514 22,980 Total expenses 63,076 97,909 246,512 25,575 433,072 Segment earnings (loss) $ 1,401 33,704 53,371 21,628 110,104 Domestic Life Insurance International Life Insurance Annuities All Others Totals (In thousands) 2017: Selected Balance Sheet Items: Deferred policy acquisition costs and sales inducements $ 101,253 250,128 603,700 — 955,081 Total segment assets 1,106,410 1,236,733 9,269,956 398,597 12,011,696 Future policy benefits 950,884 915,384 8,232,216 — 10,098,484 Other policyholder liabilities 13,643 11,318 103,048 — 128,009 Condensed Income Statements: Premiums and contract charges $ 37,387 120,852 20,691 — 178,930 Net investment income 73,866 68,399 490,706 26,714 659,685 Other revenues 46 83 109 20,832 21,070 Total revenues 111,299 189,334 511,506 47,546 859,685 Life and other policy benefits 18,565 23,981 28,939 — 71,485 Amortization of deferred policy acquisition costs 10,377 (1,473 ) 105,483 — 114,387 Universal life and annuity contract interest 59,865 54,502 322,652 — 437,019 Other operating expenses 18,842 36,341 32,021 19,798 107,002 Federal income taxes (benefit) 815 16,958 5,002 6,192 28,967 Total expenses 108,464 130,309 494,097 25,990 758,860 Segment earnings (loss) $ 2,835 59,025 17,409 21,556 100,825 Domestic Life Insurance International Life Insurance Annuities All Others Totals (In thousands) 2016: Selected Balance Sheet Items: Deferred policy acquisition costs and sales inducements $ 90,485 243,106 648,714 — 982,305 Total segment assets 971,990 1,232,648 9,193,980 298,481 11,697,099 Future policy benefits 830,460 919,380 8,109,255 — 9,859,095 Other policyholder liabilities 13,998 10,528 118,865 — 143,391 Condensed Income Statements: Premiums and contract charges $ 34,728 125,775 22,220 — 182,723 Net investment income 39,691 42,331 362,700 22,952 467,674 Other revenues 119 321 254 18,207 18,901 Total revenues 74,538 168,427 385,174 41,159 669,298 Life and other policy benefits 17,908 18,759 28,862 — 65,529 Amortization of deferred policy acquisition costs 4,125 18,027 98,987 — 121,139 Universal life and annuity contract interest 28,606 28,636 191,148 — 248,390 Other operating expenses 18,739 25,933 31,852 17,924 94,448 Federal income taxes (benefit) 1,749 26,130 11,638 7,878 47,395 Total expenses 71,127 117,485 362,487 25,802 576,901 Segment earnings (loss) $ 3,411 50,942 22,687 15,357 92,397 Reconciliations of segment information to the Company's Consolidated Financial Statements are provided below. Years Ended December 31, 2018 2017 2016 (In thousands) Premiums and Other Revenue : Premiums and contract charges $ 173,496 178,930 182,723 Net investment income 349,077 659,685 467,674 Other revenues 20,603 21,070 18,901 Realized gains (losses) on investments 8,423 14,763 13,070 Total consolidated premiums and other revenue $ 551,599 874,448 682,368 Years Ended December 31, 2018 2017 2016 (In thousands) Federal Income Taxes : Total segment Federal income taxes $ 22,980 28,967 47,395 Taxes on realized gains (losses) on investments 1,769 5,167 4,575 Total taxes on consolidated net earnings $ 24,749 34,134 51,970 Years Ended December 31, 2018 2017 2016 (In thousands) Net Earnings : Total segment earnings $ 110,104 100,825 92,397 Realized gains (losses) on investments, net of taxes 6,654 9,596 8,495 Total consolidated net earnings $ 116,758 110,421 100,892 December 31, 2018 2017 2016 (In thousands) Assets : Total segment assets $ 11,588,481 12,011,696 11,697,099 Other unallocated assets 343,210 213,398 197,882 Total consolidated assets $ 11,931,691 12,225,094 11,894,981 (B) Geographic Information A portion of the Company's premiums and contract revenues are from international policies with residents of countries other than the United States. Premiums and contract revenues detailed by country are provided below. Years Ended December 31, 2018 2017 2016 (In thousands) United States $ 82,614 74,937 75,405 Brazil 27,280 33,024 38,928 Venezuela 14,414 16,105 15,534 Taiwan 12,864 14,844 14,474 Peru 10,969 11,714 11,378 Chile 8,769 9,201 8,859 Other foreign countries 37,346 39,417 37,820 Revenues, excluding reinsurance premiums 194,256 199,242 202,398 Reinsurance premiums (20,760 ) (20,312 ) (19,675 ) Total premiums and contract revenues $ 173,496 178,930 182,723 Premiums and contract revenues are attributed to countries based on the location of the policyholder. The Company has no significant assets, other than certain limited financial instruments, located in countries other than the United States. (C) Major Agency Relationships A portion exceeding 10% of the Company's annual annuity sales has been sold through one or more of its top independent marketing agencies in recent years. Business from two top agencies accounted for approximately 14% and 13% , respectively, of annuity sales in 2018 . In 2018, three domestic independent marketing agencies exceeded 10% of total Domestic Life sales accounting for 35% , 10% , and 10% |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments | FAIR VALUES OF FINANCIAL INSTRUMENTS For financial instruments the FASB provides guidance which defines fair value, establishes a framework for measuring fair value under GAAP, and requires additional disclosures about fair value measurements. In compliance with this GAAP guidance, the Company has categorized its financial instruments, based on the priority of the inputs to the valuation technique, into a three level hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded at fair value on the Consolidated Balance Sheets are categorized as follows: Level 1: Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. These generally provide the most reliable evidence and are used to measure fair value whenever available. The Company's Level 1 assets are equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets. Level 2: Fair value is based upon significant inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable for substantially the full term of the asset or liability through corroboration with observable market data as of the reporting date. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, model-derived valuations whose inputs are observable or whose significant value drivers are observable and other observable inputs. The Company’s Level 2 assets include fixed maturity debt securities (corporate and private bonds, government or agency securities, asset-backed and mortgage-backed securities). Valuations are generally obtained from third party pricing services for identical or comparable assets or determined through use of valuation methodologies using observable market inputs. Level 3: Fair value is based on significant unobservable inputs which reflect the entity’s or third party pricing service’s assumptions about the assumptions market participants would use in pricing an asset or liability. The Company’s Level 3 assets are over-the-counter derivative contracts and the Company’s Level 3 liabilities consist of share-based compensation obligations and certain product-related embedded derivatives. Valuations are estimated based on non-binding broker prices or internally developed valuation models or methodologies, discounted cash flow models and other similar techniques. The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of the date indicated. December 31, 2018 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available for sale $ 2,946,059 — 2,946,059 — Equity securities 17,491 17,491 — — Derivatives, index options 14,684 — — 14,684 Total assets $ 2,978,234 17,491 2,946,059 14,684 Policyholder account balances (a) $ 44,781 — — 44,781 Other liabilities (b) 11,923 — — 11,923 Total liabilities $ 56,704 — — 56,704 December 31, 2017 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available for sale $ 3,041,131 — 3,041,131 — Equity securities, available for sale 18,478 18,478 — — Derivatives, index options 194,731 — — 194,731 Total assets $ 3,254,340 18,478 3,041,131 194,731 Policyholder account balances (a) $ 211,159 — — 211,159 Other liabilities (b) 15,242 — — 15,242 Total liabilities $ 226,401 — — 226,401 (a) Represents the fair value of certain product-related embedded derivatives that were recorded at fair value. (b) Represents the liability for share-based compensation. The following table provides additional information about fair value measurements for which significant unobservable (Level 3) inputs were utilized to determine fair value. Year Ended December 31, 2018 Debt Securities, Available For Sale Equity Securities Derivatives, Index Options Total Assets Other Liabilities (In thousands) Beginning balance, January 1, 2018 $ — — 194,731 194,731 226,401 Total realized and unrealized gains (losses): Included in net income — — (80,004 ) (80,004 ) (65,046 ) Included in other comprehensive income (loss) — — — — — Purchases, sales, issuances and settlements, net: Purchases — — 86,953 86,953 86,953 Sales — — — — — Issuances — — — — 74 Settlements — — (186,996 ) (186,996 ) (191,678 ) Transfers into (out of) Level 3 — — — — — Balance at end of period $ — — 14,684 14,684 56,704 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income $ — — (72,269 ) (72,269 ) — Benefits and expenses — — — — (70,980 ) Total $ — — (72,269 ) (72,269 ) (70,980 ) Year Ended December 31, 2017 Debt Securities, Available For Sale Equity Securities, Available For Sale Derivatives, Index Options Total Assets Other Liabilities (In thousands) Beginning balance, January 1, 2017 $ — — 120,644 120,644 134,693 Total realized and unrealized gains (losses): Included in net income — — 222,875 222,875 240,605 Included in other comprehensive income (loss) — — — — — Purchases, sales, issuances and settlements, net: Purchases — — 75,346 75,346 75,346 Sales — — — — — Issuances — — — — 1,688 Settlements — — (224,134 ) (224,134 ) (225,931 ) Transfers into (out of) Level 3 — — — — — Balance at end of period $ — — 194,731 194,731 226,401 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income $ — — 119,386 119,386 — Benefits and expenses — — — — 122,318 Total $ — — 119,386 119,386 122,318 The following tables show the quantitative information about the Company's Level 3 assets and liabilities. December 31, 2018 Fair Value Valuation Technique Unobservable Input (In thousands) Derivatives, index options $ 14,684 Broker prices Implied volatility Inputs from broker proprietary models Total assets $ 14,684 Policyholder account balances $ 44,781 Deterministic cash flow model Projected option cost Other liabilities 11,923 Black Scholes Expected term Forfeiture assumptions Total liabilities $ 56,704 December 31, 2017 Fair Value Valuation Technique Unobservable Input (In thousands) Derivatives, index options $ 194,731 Broker prices Implied volatility Inputs from broker proprietary models Total assets $ 194,731 Policyholder account balances $ 211,159 Deterministic cash flow model Projected option cost Other liabilities 15,242 Black Scholes Expected term Forfeiture assumptions Total liabilities $ 226,401 Realized gains (losses) on debt securities assets are reported in the Consolidated Statements of Earnings as net investment gains (losses) with liabilities reported as expenses. Unrealized gains (losses) on available for sale debt securities are reported as other comprehensive income (loss) within stockholders’ equity of the Consolidated Balance Sheets. Effective January 1, 2018, the change in fair value of equity securities is reported in the Condensed Consolidated Statement of Earnings as a component of net investment income. The fair value hierarchy classifications are reviewed each reporting period. Reclassification of certain financial assets and liabilities may result based on changes in the observability of valuation attributes. Reclassifications are reported as transfers into and out of Level 3 at the beginning fair value for the reporting period in which the changes occur. GAAP defines fair value, establishes a framework for measuring fair value and requires additional disclosures about fair value measurements. Fair value is based on an exit price, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The objective of a fair value measurement is to determine that price for each financial instrument at each measurement date. GAAP also establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a variety of factors including the type of instrument and the characteristics of instruments. Financial instruments with readily available active quoted prices or those for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. It is the Company’s policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measures. The following methods and assumptions were used in estimating the fair value of financial instruments and liabilities during the periods presented in the Consolidated Financial Statements. Fixed maturity securities. Fair values for debt securities are based on quoted market prices, where available. For securities not actively traded, fair values are estimated using values obtained from various independent pricing services with any adjustments based upon observable data. In the cases where prices are unavailable for these sources, values are estimated by discounting expected future cash flows using a current market rate applicable to the yield, credit quality, and maturity of the investments. Equity securities. Fair values for equity securities are based upon quoted market prices, where available. For equity securities that are not actively traded, estimated values are based on values of comparable issues or audited financial statements of the issuer. Cash and cash equivalents. The carrying amounts reported in the Consolidated Balance Sheets for these instruments approximate their fair values due to the relatively short time between the purchase of the instrument and its expected repayment or maturity. Mortgage and other loans. The fair values of performing mortgage and other loans are estimated by discounting scheduled cash flows through the scheduled maturities of the loans, using interest rates currently being offered for similar loans to borrowers with similar credit ratings. Fair values for significant nonperforming loans are based on recent internal or external appraisals. If appraisals are not available, estimated cash flows are discounted using a rate commensurate with the risk associated with the estimated cash flows. Assumptions regarding credit risk, cash flows, and discount rates are judgmentally determined using available market information and specific borrower information. Policy Loans. Policy loans with fixed interest rates are classified within Level 3. The estimated fair values for these loans are determined using a discounted cash flow model applied to groups of similar policy loans determined by the nature of the underlying insurance liabilities. Cash flow estimates are developed by applying a weighted-average interest rate to the outstanding principal balance of the respective group of policy loans and an estimated average maturity. These cash flows are discounted using current risk-free interest rates with no adjustment for borrower credit risk as these loans are collateralized by the cash surrender value of the underlying insurance policy. Derivatives. Fair values for index (call) options are based on counterparty market prices. The counterparties use market standard valuation methodologies incorporating market inputs for volatility and risk free interest rates in arriving at a fair value for each option contract. Prices are monitored for reasonableness by the Company using analytical tools. There are no performance obligations related to the call options purchased to hedge the Company’s fixed-index life and annuity policy liabilities. Life interest in Libbie Shearn Moody Trust. The fair value of the life interest asset is determined based on assumptions as to future distributions from the Trust over the life expectancy of Mr. Robert L. Moody, Sr., Chairman Emeritus of the Board of Directors of NWLGI. These estimated cash flows are discounted at a rate consistent with uncertainties relating to the amount and timing of future cash distributions subject to the maximum amount to be received by the Company from life insurance proceeds in the event of Mr. Moody's death. The carrying value or cost basis of the life interest asset is amortized ratably over the remaining expected life of Mr. Moody, updated for changes in expected mortality. Annuity and supplemental contracts. Fair values for the Company's insurance contracts other than annuity contracts are not required to be disclosed. This includes the Company's traditional and universal life products. Fair values for immediate annuities without mortality features are based on the discounted future estimated cash flows using current market interest rates for similar maturities. Fair values for deferred annuities, including fixed-index annuities, are determined using estimated projected future cash flows discounted at the rate that would be required to transfer the liability in an orderly transaction. The fair values of liabilities under all insurance contracts are taken into consideration in the Company's overall management of interest rate risk, which minimizes exposure to changing interest rates through the matching of investment maturities with amounts due under insurance and annuity contracts. The Company utilizes independent third-party pricing services to determine the majority of its fair values of investment securities. The independent pricing services provide quoted market prices when available or otherwise incorporate a variety of observable market data in their valuation techniques including reported trading prices, broker-dealer quotes, bids and offers, benchmark securities, benchmark yields, credit ratings, and other reference data. The Company reviews prices received from service providers for unusual fluctuations to ensure that the prices represent a reasonable estimate of fair value but generally accepts the price identified from the primary pricing service. When quoted market prices in active markets are unavailable, the Company determines fair values using various valuation techniques and models based on a range of observable market inputs including pricing models, quoted market price of publicly traded securities with similar duration and yield, time value, yield curve, prepayment speeds, default rates and discounted cash flow. In most cases, these estimates are determined based on independent third party valuation information, and the amounts are disclosed in Level 2 of the fair value hierarchy. Generally, the Company obtains a single price or quote per instrument from independent third parties to assist in establishing the fair value of these investments. Fair value measurements for investment securities where there exists limited or no observable data are calculated using the Company’s own estimates based on current interest rates, credit spreads, liquidity premium or discount, the economic and competitive environment, unique characteristics of the security and other pertinent factors. These estimates are derived a number of ways including, but not limited to, pricing provided by brokers where the price indicates reliability as to value, fair values of comparable securities incorporating a spread adjustment (for maturity differences, credit quality, liquidity, and collateralization), discounted cash flow models and margin spreads, bond yield curves, and observable market prices and exchange transaction information not provided by external pricing services. The resulting prices may not be realized in an actual sale or immediate settlement and there may be inherent weaknesses in any calculation technique. In addition, changes in underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future values. The following table presents, by pricing source and fair value hierarchy level, the Company’s assets that are measured at fair value on a recurring basis: December 31, 2018 Total Level 1 Level 2 Level 3 (In thousands) Fixed maturities, available for sale: Priced by third-party vendors $ 2,946,059 — 2,946,059 — Priced internally — — — — Subtotal 2,946,059 — 2,946,059 — Equity securities: Priced by third-party vendors 17,491 17,491 — — Priced internally — — — — Subtotal 17,491 17,491 — — Derivatives, index options: Priced by third-party vendors 14,684 — — 14,684 Priced internally — — — — Subtotal 14,684 — — 14,684 Total $ 2,978,234 17,491 2,946,059 14,684 Percent of total 100.0 % 0.6 % 98.9 % 0.5 % The carrying amounts and fair values of the Company's financial instruments are as follows: December 31, 2018 Fair Value Hierarchy Level Carrying Values Fair Values Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities held to maturity $ 7,285,254 7,228,268 — 7,226,362 1,906 Debt securities available for sale 2,946,059 2,946,059 — 2,946,059 — Cash and cash equivalents 131,976 131,976 131,976 — — Mortgage loans 203,180 202,762 — — 202,762 Policy loans 54,724 90,802 — — 90,802 Other loans 12,272 12,709 — — 12,709 Derivatives, index options 14,684 14,684 — — 14,684 Equity securities 17,491 17,491 17,491 — — Life interest in Libbie Shearn Moody Trust 8,692 12,775 — — 12,775 LIABILITIES Deferred annuity contracts $ 7,455,642 6,403,007 — — 6,403,007 Immediate annuity and supplemental contracts 407,413 415,726 — — 415,726 December 31, 2017 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 $ 7,247,024 7,434,104 — 7,431,810 2,294 Securities available for sale 3,059,609 3,059,609 18,478 3,041,131 — Cash and cash equivalents 217,624 217,624 217,624 — — Mortgage loans 208,249 208,815 — — 208,815 Policy loans 56,405 100,230 — — 100,230 Other loans 5,431 5,603 — — 5,603 Derivatives, index options 194,731 194,731 — — 194,731 Life interest in Libbie Shearn Moody Trust 8,676 12,775 — — 12,775 LIABILITIES Deferred annuity contracts $ 7,865,786 7,338,637 — — 7,338,637 Immediate annuity and supplemental contracts 430,494 443,437 — — 443,437 |
Derivative Investments
Derivative Investments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Investments | DERIVATIVE INVESTMENTS Fixed-index products provide traditional fixed annuities and universal life contracts with the option to have credited interest rates linked in part to an underlying equity index or a combination of equity indices. The equity return component of such policy contracts is identified separately and accounted for in future policy benefits as embedded derivatives on the Consolidated Balance 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 that are accreted, using the effective yield method, to their minimum account values at their projected maturities or termination dates. The Company purchases over-the-counter index options, which are derivative financial instruments, to hedge the equity return component of its fixed-index annuity and life products. The index options act as hedges to match closely the returns on the underlying index or indices. The amounts which may be credited to policyholders are linked, in part, to the returns of the underlying index or indices. As a result, changes to policyholders' liabilities are substantially offset by changes in the value of the options. Cash is exchanged upon purchase of the index options and no principal or interest payments are made by either party during the option periods. Upon maturity or expiration of the options, cash may be paid to the Company depending on the performance of the underlying index or indices and terms of the contract. The Company does not elect hedge accounting relative to these derivative instruments. The index options are reported at fair value in the accompanying Consolidated Financial Statements. The changes in the values of the index options and the changes in the policyholder liabilities are both reflected in the Consolidated Statements of Earnings. Any changes relative to the embedded derivatives associated with policy contracts are reflected in contract interest in the Consolidated Statements of Earnings. Any gains or losses from the sale or expiration of the options, as well as period-to-period changes in values, are reflected as net investment income in the Consolidated Statements of Earnings. Although there is credit risk in the event of nonperformance by counterparties to the index options, the Company does not expect any of its counterparties to fail to meet their obligations, given their high credit ratings. In addition, credit support agreements are in place with all counterparties for option holdings in excess of specific limits, which may further reduce the Company's credit exposure. The tables below present the fair value of derivative instruments. December 31, 2018 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 $ 14,684 Fixed-index products Universal Life and Annuity Contracts $ 44,781 Total $ 14,684 $ 44,781 December 31, 2017 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 $ 194,731 Fixed-index products Universal Life and Annuity Contracts $ 211,159 Total $ 194,731 $ 211,159 The table below presents the effect of derivative instruments in the Consolidated Statements of Earnings for the years ended December 31, 2018 , 2017 and 2016 . Amount of Gain or (Loss) Recognized In Income on Derivatives Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized In Income on Derivatives 2018 2017 2016 (In thousands) Equity index options Net investment income $ (80,004 ) 222,875 28,364 Fixed-index products Universal life and annuity contract interest 66,335 (237,281 ) (10,436 ) $ (13,669 ) (14,406 ) 17,928 The embedded derivative liability, the change of which is recorded in universal life and annuity contract interest in the Consolidated Statements of Earnings, includes projected interest credits that are offset by the expected collectability by the Company of asset management fees on fixed-index products. The anticipated asset management fees assumed to be collected increases or decreases based upon the most recent performance of index options and adds to or reduces the offset applied to the embedded derivative liability (increasing or decreasing contract interest expense). In the years ended December 31, 2018 , 2017 , and 2016 , the change in the embedded derivative liability due to the expected collectability of asset management fees increased/(decreased) contract interest expense by $17.6 million , $6.9 million , and $(15.9) million |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Robert L. Moody, Jr. ("Mr. Moody, Jr.") is the brother of Ross R. Moody, NWLGI's Chairman, President and Chief Executive Officer, son of Robert L. Moody, Sr., Chairman Emeritus of the Board of Directors of NWLGI, the stepson of Ann M. Moody who serves as a director of NWLGI, brother of Russell S. Moody who serves as an advisory director of NWLGI, and a half-brother of Frances A. Moody-Dahlberg who serves as a director of NWLGI. Mr. Moody, Jr. wholly owns an insurance marketing organization that maintains agency contracts with National Western pursuant to which agency commissions are paid in accordance with the company's standard commission schedules. Mr. Moody, Jr. also maintains an independent agent contract with National Western for policies personally sold under which commissions are paid in accordance with standard commission schedules. In 2018 , commissions paid under these agency contracts aggregated approximately $123,675 . During 2018 , management fees totaling $680,034 were paid to Regent Management Services, Limited Partnership ("RMS") for services provided to downstream nursing home subsidiaries of NWLGI. RMS is 1% owned by general partner RCC Management Services, Inc. ("RCC"), and 99% owned by limited partner, Three R Trusts. RCC is 100% owned by the Three R Trusts. The Three R Trusts are four Texas trusts for the benefit of the children of Robert L. Moody, Sr. (Robert L. Moody, Jr., Ross R. Moody, Russell S. Moody, and Frances A. Moody-Dahlberg). National Western holds an investment totaling approximately 9.5% of the issued and outstanding shares of Moody Bancshares, Inc. at December 31, 2018 . Moody Bancshares, Inc. owns 100% of the outstanding shares of Moody Bank Holding Company, Inc., which owns approximately 98% of the outstanding shares of The Moody National Bank of Galveston ("MNB"). National Western utilizes MNB for certain bank custodian services as well as for certain administrative services with respect to the company's defined benefit and contribution plans. During 2018 , fees totaling $602,564 were paid to MNB with respect to these services. In 2018, the Company entered into an office space lease with MNB, with payments totaling $10,700 during the year. The ultimate controlling person of MNB is the Three R Trusts. During 2018 , the Company paid American National Insurance Company (“ANICO”) $699,950 in premiums for certain company sponsored benefit plans and $2,886,920 in reimbursements for claim costs for which ANICO provides third party administrative services. ANICO paid the Company $3,007,209 in premiums for its company sponsored benefit plans. The Company maintains an investment agreement with American National Registered Investment Advisory, Inc., a subsidiary of ANICO, under which $45,540 was paid for services. Robert L. Moody, Sr., serves as Chairman Emeritus and Ross R. Moody serves as Chairman of the Board of ANICO. The Company executed a 2 year agreement in April, 2014 with an automatic 1 year renewal with ANICO for a disaster recovery site and incurred expenses of $18,000 during 2018 associated with this agreement. During 2017, MNB sold a 50.0% undivided participation in a mortgage loan to The Westcap Corporation for $7.2 million , and a 50.0% participation in a mortgage loan to National Western, for $5.5 million . The Westcap Corporation and National Western will receive 50.0% of all future cash receipts which will be recognized over the life of the loan. The mortgage loan investment for The Westcap Corporation was paid in full during 2018 and the National Western investment had a balance of $5.0 million as of December 31, 2018. During 2015, ANICO sold a 24.93% undivided participation in a mortgage loan to The Westcap Corporation for $20.0 million . The Westcap Corporation will receive 24.93% of all future cash receipts, which will be recognized over the life of the loan. This mortgage loan investment had a balance of $19.4 million as of December 31, 2018 |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | UNAUDITED QUARTERLY FINANCIAL DATA Quarterly results of operations for 2018 are summarized as follows: First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands except per share data) 2018: Revenues $ 109,018 174,658 225,435 42,486 Earnings (loss) $ 26,875 32,466 35,641 21,776 Basic earnings (loss) per share: Class A $ 7.60 9.18 10.08 6.16 Class B $ 3.80 4.59 5.04 3.08 Diluted earnings (loss) per share: Class A $ 7.60 9.18 10.08 6.16 Class B $ 3.80 4.59 5.04 3.08 Quarterly results of operations for 2017 are summarized as follows: First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands except per share data) 2017: Revenues $ 224,417 198,226 203,990 247,815 Earnings (loss) $ 23,538 25,483 21,813 39,587 Basic earnings (loss) per share: Class A $ 6.66 7.21 6.17 11.19 Class B $ 3.33 3.60 3.08 5.60 Diluted earnings (loss) per share: Class A $ 6.65 7.21 6.17 11.19 Class B $ 3.33 3.60 3.08 5.60 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Effective January 31, 2019, the Company's wholly owned subsidiary, National Western, completed its previously announced acquisition of Ozark National Life Insurance Company ("Ozark National") and N.I.S. Financial Services, Inc. ("NIS") following the receipt of regulatory approvals. NWLGI and National Western paid cash in an aggregate amount of approximately $205.5 million in exchange for all of the outstanding stock of Ozark National (wholly owned by National Western) and NIS (wholly owned by NWLGI). As Ozark National has not previously prepared financial statements in accordance with GAAP, the Company is unable to include the initial business combination disclosures required under ASC 805 Business Combinations as of the date of this filing. The Company entered into separate transactions selling its two nursing home operations subsequent to December 31, 2018. Effective February 1, 2019, the Company completed the sale of its nursing home operations in Reno, Nevada for a purchase price of $13.6 million . On February 15, 2019, the Company entered into a Purchase and Sale Agreement to sell its other nursing home operation in San Marcos, Texas for a purchase price of $7.6 million . The amount of each transaction did not meet the threshold of a Material Definitive Agreement for purposes of filing a Current Report on Form 8-K. At December 31, 2018, the assets of the Reno and San Marcos entities were included in Other Assets on the Consolidated Balance Sheets as held for sale at their combined book values which was lower than the aggregate purchase price for the two facilities. |
Schedule I - Summary of Investm
Schedule I - Summary of Investments Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2018 | |
Schedule I - Summary of Investments Other Than Investments in Related Parties [Abstract] | |
Schedule I - Summary of Investments Other Than Investment in Related Parties | Type of Investment (1) Cost Fair Value Balance Sheet Amount Fixed maturity bonds: Securities held to maturity: United States government and government agencies and authorities $ 1,341 1,457 1,341 States, municipalities, and political subdivisions 457,404 464,792 457,404 Public utilities 930,629 923,613 930,629 Corporate 4,715,775 4,656,384 4,715,775 Residential mortgage-backed 1,176,216 1,178,055 1,176,216 Asset-backed 3,889 3,967 3,889 Total securities held to maturity 7,285,254 7,228,268 7,285,254 Securities available for sale: States, municipalities, and political subdivisions 570 566 566 Foreign governments 9,974 10,004 10,004 Public utilities 82,943 83,471 83,471 Corporate 2,893,221 2,829,056 2,829,056 Residential mortgage-backed 15,947 16,800 16,800 Asset-backed 5,969 6,162 6,162 Total securities available for sale 3,008,624 2,946,059 2,946,059 Total fixed maturity bonds 10,293,878 10,174,327 10,231,313 Equity securities: Common stocks: Public utilities 568 945 945 Banks, trust and insurance companies 1,516 2,480 2,480 Corporate 5,812 7,964 7,964 Preferred stocks 6,433 6,102 6,102 Total equity securities 14,329 17,491 17,491 Derivatives, index options 14,684 14,684 Mortgage loans 203,180 203,180 Policy loans 54,724 54,724 Other long-term investments (2) 56,851 56,851 Total investments other than investments in related parties $ 10,637,646 10,578,243 Notes: (1) Bonds and mortgages are shown at amortized cost reduced by repayments and impairments due to other than temporary declines or allowances for possible losses. Real estate is stated at costs net of accumulated depreciation. Derivatives are shown at fair value. (2) There was no real estate acquired by foreclosure included in other long-term investments. |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant | 2018 2017 ASSETS Investment in subsidiaries $ 1,896,669 1,830,893 Cash and cash equivalents 1,443 1,303 Federal income tax receivable 4,185 3,019 Deferred Federal income tax asset — 51 Other assets 353 383 Total assets $ 1,902,650 1,835,649 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Due to subsidiaries $ — — Deferred Federal income tax liability 397 — Other liabilities 1,476 3,475 Total liabilities 1,873 3,475 Stockholders' Equity: Common Stock: Class A - $.01 par value in 2018 and 2017; 7,500,000 shares authorized; 3,436,020 shares issued and outstanding in 2018 and 3,436,166 shares issued and outstanding in 2017 34 34 Class B - $.01 par value in 2018 and 2017; 200,000 shares authorized, issued, and outstanding in 2018 and 2017 2 2 Additional paid-in capital 41,716 41,716 Accumulated other comprehensive income (loss) (37,015 ) 14,281 Retained earnings 1,896,040 1,776,141 Total stockholders’ equity 1,900,777 1,832,174 Total liabilities and stockholders' equity $ 1,902,650 1,835,649 2018 2017 2016 Revenues: Dividend income from subsidiaries $ 5,957 7,000 3,000 Total revenues 5,957 7,000 3,000 Expenses: Other operating expenses 2,617 4,199 4,493 Total expenses 2,617 4,199 4,493 Earnings/(loss) before Federal income taxes 3,340 2,801 (1,493 ) Federal income taxes/(benefit) (717 ) (1,495 ) (1,539 ) Earnings before equity/(loss) in earnings of affiliates 4,057 4,296 46 Equity/(loss) in earnings of affiliates 112,701 106,125 100,846 Net earnings/(loss) $ 116,758 110,421 100,892 2018 2017 2016 Cash flows from operating activities: Net earnings/(loss) $ 116,758 110,421 100,892 Adjustments to reconcile net earnings/(loss) to cash provided by operating activities: Equity in earnings/(loss) of affiliates (112,701 ) (106,125 ) (100,846 ) Depreciation and amortization 30 30 30 Change in: Federal income tax, net (1,166 ) (1,843 ) (1,008 ) Deferred Federal income tax 448 348 (530 ) Due to subsidiaries, net — (608 ) 608 Other, net (1,956 ) (917 ) 1,896 Net cash provided by operating activities 1,413 1,306 1,042 Cash flows from financing activities: Dividends on common stock (1,273 ) (1,273 ) (1,273 ) Net cash provided by (used in) financing activities (1,273 ) (1,273 ) (1,273 ) Net increase (decrease) in cash and cash equivalents 140 33 (231 ) Cash and cash equivalents at the beginning of year 1,303 1,270 1,501 Cash and cash equivalents at the end of year $ 1,443 1,303 1,270 |
Schedule V - Valuation and Qual
Schedule V - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule V - Valuation and Qualifying Accounts | Description Balance at Beginning of Period (1) Charged to Costs and Expenses Reductions Transfers Balance at End of Period Valuation accounts deducted from applicable assets: Allowance for possible losses on mortgage loans: December 31, 2018 $ 650 25 — — 675 December 31, 2017 $ 650 — — — 650 December 31, 2016 $ 650 — — — 650 Allowance for possible losses on real estate: December 31, 2018 $ 611 — — — 611 December 31, 2017 $ 611 — — — 611 December 31, 2016 $ 1,629 — (1,018 ) — 611 Notes: (1) Amounts were recorded to realized (gains) losses on investments. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation. On October 1, 2015, National Western Life Insurance Company ("National Western") completed its previously announced holding company reorganization. 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 Consolidated Financial Statements included the accounts of National Western, NWL Services, Inc., and Regent Care San Marcos Holdings, LLC, the wholly owned subsidiaries of NWGLI, as well as the wholly owned subsidiaries of National Western: The Westcap Corporation, NWLSM, Inc., and NWL Financial, Inc. All significant intercorporate transactions and accounts have been eliminated in consolidation and references to the "Company" as contained herein refer to the consolidated entity. |
Basis of Presentation | Basis of Presentation. The accompanying Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates in the accompanying Consolidated Financial Statements include (1) liabilities for future policy benefits, (2) valuation of derivative instruments, (3) recoverability and amortization of deferred policy acquisition costs, (4) commitments and contingencies, (5) valuation allowances for deferred tax assets, (6) other-than-temporary impairment losses on debt securities, and (7) valuation allowances for mortgage loans and real estate. |
Investments | Investments. Investments in debt securities the Company purchases with the intent to hold to maturity are classified as securities held to maturity. The Company has the ability to hold the securities until maturity, as it would be unlikely that forced sales of securities would be required, prior to maturity, to cover payments of liabilities. As a result, securities held to maturity are carried at amortized cost less declines in fair value that are deemed other-than-temporary. Investments in debt securities that are not classified as securities held to maturity are reported as securities available for sale. Securities available for sale are reported in the accompanying Consolidated Financial Statements at fair value. Valuation changes resulting from changes in the fair value of the securities are reflected as a component of stockholders' equity in accumulated other comprehensive income (loss). These unrealized gains or losses in stockholders' equity are reported net of taxes and adjustments to deferred policy acquisition costs. Transfers of securities between categories are recorded at fair value at the date of transfer. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to yield using the effective interest method. For mortgage-backed and asset-backed securities, the effective interest method is used based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The net investment in the securities is adjusted to the amount that would have existed had the new effective yield been applied at the time of acquisition (retrospective method). This adjustment is reflected in net investment income. For loan-backed securities not meeting the definition of "highly rated", the prospective method is evaluated and, if materially different from the retrospective method, utilized to account for these securities. The retrospective adjustment method has been used to value all loan-backed and structured securities included in the accompanying Consolidated Financial Statements. Quarterly the Company reviews its investment portfolio for market value changes to identify changes caused by issuer credit deterioration, changes in market interest rates and changes in economic conditions. If this review indicates a decline in fair value that is other-than-temporary, the Company’s carrying amount in the investment is reduced to its estimated fair value. In accordance with GAAP guidance the estimated credit versus non-credit components are bifurcated. The credit component is taken through earnings. The non-credit component is reclassified as unrealized loss in other comprehensive income. The Company would not recognize impairment of securities due to changing of interest rates or market dislocations unless the Company had the intent to sell the securities prior to recovery or maturity. The Company considers a number of factors in determining whether the impairment is other-than-temporary. These include, but are not limited to: 1) actions taken by rating agencies, 2) default by the issuer, 3) the significance of the decline in fair value, 4) the intent and ability to hold the investment until recovery, 5) the time period during which the decline has occurred, 6) an economic analysis of the issuer’s industry, and 7) the financial strength, liquidity, and recoverability of the issuer. Management performs a security-by-security review each quarter in evaluating the need for any other-than-temporary impairments. Although no set formula is used in this process, the investment performance, collateral position, and continued viability of the issuer are significant measures considered. Realized gains and losses for securities available for sale and securities held to maturity are included in earnings and are derived using the specific identification method for determining the cost of securities sold or called. Prepayment penalty fees received from issuers that call their securities before maturity are excluded from the calculation of realized gain or loss and are included as a component of investment income. Decline in the fair value of securities below their cost basis that are deemed other-than-temporary are bifurcated into separate credit and non-credit declinations. The noncredit related declines are reclassified as unrealized losses in accumulated other comprehensive income (loss). Credit losses are recorded in earnings and result in the establishment of a new cost basis for the security. The new discount or reduced premium amount is amortized over the remaining life of the impaired debt security prospectively based on the amount and timing of future estimated cash flows. Mortgage loans and other long-term investments are stated at cost, less unamortized discounts, deferred fees, and allowances for possible losses. Policy loans are stated at their aggregate unpaid balances. Real estate is stated at the lower of cost or fair value less estimated costs to sell. Impaired loans are those loans where it is probable that all amounts due according to contractual terms of the loan agreement will not be collected. The Company has identified these loans through its normal loan review procedures. Impaired loans include: 1) nonaccrual loans, 2) loans which are 90 days or more past due, unless they are well secured and are in the process of collection, and 3) other loans which management believes are impaired. Impaired loans are measured based on: 1) the present value of expected future cash flows discounted at the loan's effective interest rate, 2) the loan's observable market price, or 3) the fair value of the collateral if the loan is collateral dependent. When the Company has loans considered impaired substantially all are measured at the fair value of the collateral. In limited cases, the Company may use other methods to determine the level of impairment of a loan if such loan is not collateral dependent. |
Cash and Short-term Investment | Cash and Cash Equivalents. For purposes of the Consolidated Statements of Cash Flows, the Company considers all short-term investments with a maturity at the date of purchase of three months or less to be cash equivalents. |
Derivatives | Derivatives. Fixed-index products combine features associated with traditional fixed annuities and universal life contracts, with the option to have interest rates linked in part to an underlying equity index. The equity return component of such policy contracts is identified separately and accounted for in future policy benefits as embedded derivatives on the Consolidated Balance Sheets. The remaining portions of these policy contracts are considered the host contracts and are recorded separately within future policy benefits as fixed annuity or universal life contracts. The host contracts are accounted for under debt instrument type accounting. The host contracts are recorded as discounted debt instruments that are accreted, using the effective yield method, to their minimum account values at their projected maturities or termination dates. The Company purchases over-the-counter index options, which are derivative financial instruments, to hedge the equity return component of its index annuity and life products. The amounts which may be credited to policyholders are linked, in part, to the returns of the underlying index. The index options act as hedges to match closely the returns on the underlying index. Cash is exchanged upon purchase of the index options and no principal or interest payments are made by either party during the option periods. Upon maturity or expiration of the options, cash is paid to the Company based on the underlying index performance and terms of the contract. As a result, amounts credited to policyholders' account balances are substantially offset by changes in the value of the options. The Company does not elect hedge accounting relative to derivative instruments. The derivatives are reported at their fair value in the accompanying Consolidated Financial Statements. Changes in the values of the index options and changes in the policyholder liabilities are both reflected in the Consolidated Statement of Earnings. Any gains or losses from the sale or expiration of the options, as well as period-to-period changes in values, are reflected as net investment income in the Consolidated Statement of Earnings. Any changes relative to the embedded derivatives associated with policy contracts are reflected in contract interest in the Consolidated Statement of Earnings. |
Insurance Revenue and Expenses | Insurance Revenues and Expenses. Premiums on traditional life insurance products are recognized as revenues as they become due from policyholders. Benefits and expenses are matched with premiums in arriving at profits by providing for policy benefits over the lives of the policies and by amortizing acquisition costs over the premium-paying periods of the policies. For universal life and annuity contracts, revenues consist of policy charges for the cost of insurance, policy administration, and surrender charges assessed during the period. Expenses for these policies include interest credited to policy account balances, benefit claims incurred in excess of policy account balances and amortization of deferred policy acquisition costs and deferred sales inducements. Under GAAP, commissions, sales inducements, and certain expenses related to policy issuance and underwriting, all of which vary with and are related to the production of new business, are deferred. For traditional products, these costs are amortized over the premium-paying period of the related policies in proportion to the ratio of the premium earned to the total premium revenue anticipated, using the same assumptions as to interest, mortality, and withdrawals as were used in calculating the liability for future policy benefits. For universal life and annuity contracts, these costs are amortized in relation to the present value of expected gross profits on these policies. The Company evaluates the recoverability of deferred policy acquisition and sales inducement costs on a quarterly basis. In this evaluation, the Company considers estimated future gross profits or future premiums, as applicable for the type of contract. The Company also considers expected mortality, interest earned and credited rates, persistency, and expenses. In accordance with GAAP guidance, the Company must also write off deferred acquisition costs and unearned revenue liabilities upon internal replacement of certain contracts as well as annuitizations of deferred annuities. |
Deferred Federal Income Tax | Deferred Federal Income Taxes. Federal income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance for deferred tax assets is provided if all or some portion of the deferred tax asset may not be realized. An increase or decrease in a valuation allowance that results from a change in circumstances that affects the realizability of the related deferred tax asset is included in income in the period the change occurs. |
Depreciation of Property, Equipment, and Leasehold Improvements | Depreciation of Property, Equipment, and Leasehold Improvements. Depreciation is based on the estimated useful lives of the assets and is calculated on the straight-line and accelerated methods. Leasehold improvements are amortized over the lesser of the economic useful life of the improvement or the term of the lease. |
Statutory Information | Statutory Information. Domiciled in Colorado, National Western prepares its statutory financial statements in accordance with accounting practices prescribed or permitted by the Colorado Division of Insurance. The Colorado Division of Insurance has adopted the provisions of the National Association of Insurance Commissioners' ("NAIC") Statutory Accounting Practices (“SSAP”) as the basis for its statutory accounting practices. The following are major differences between GAAP and accounting practices prescribed or permitted by the Colorado Division of Insurance (“statutory accounting practices”). 1. The Company accounts for universal life and annuity contracts based on the provisions of GAAP. The basic difference between GAAP and statutory accounting practices with respect to certain long-duration contracts is that deposits for universal life and annuity contracts are not reflected as revenues, and surrenders and certain other benefit payments are not reflected as expenses. Only contracts with no insurance risk qualify for such treatment under statutory accounting practices. For all other contracts, statutory accounting practices do reflect such items as revenues and expenses. 3. For statutory accounting purposes, liabilities for future policy benefits for life insurance policies are calculated by the net level premium method or the commissioners reserve valuation method. Future policy benefit liabilities for annuities are calculated based on the continuous commissioners annuity reserve valuation method and provisions of Actuarial Guidelines 33 and 35. 4. Deferred Federal income taxes are provided for temporary differences which are recognized in the Consolidated Financial Statements in a different period than for Federal income tax purposes. Deferred taxes are also recognized in statutory accounting practices; however, there are limitations as to the amount of deferred tax assets that may be reported as admitted assets. The change in the deferred taxes is recorded directly in surplus, rather than as a component of income tax expense. 5. For statutory accounting purposes, debt securities are recorded at amortized cost, except for securities in or near default, which are reported at fair value. Under GAAP, debt securities are carried at amortized cost or fair value based on their classification as either held to maturity or available for sale. 6. Investments in subsidiaries are recorded as affiliated common stock investments at their respective SSAP investment value under statutory accounting, whereas the financial statements of the subsidiaries have been consolidated with those of the Company under GAAP. 7. The asset valuation reserve and interest maintenance reserve, which are investment valuation reserves prescribed by statutory accounting practices, have been eliminated, as they are not required under GAAP. |
Stock Compensation | Stock Compensation. The Company accounts for its share-based compensation for GAAP reporting using liability accounting, and measures compensation cost using the fair value method at each reporting date. For stock options, fair value is determined using an option pricing model that takes into account various information and assumptions including the Company's stock price, volatility, option price, vesting dates, exercise dates and projected option lapses. The Company used the intrinsic value method for statutory basis reporting through 2015. Under the intrinsic value based method, compensation cost is the excess, if any, of the quoted market price of the stock at grant date or other measurement date over the amount an employee must pay to acquire the stock. The fair value method was adopted for statutory basis reporting effective January 1, 2016. |
Accounting Standards and Changes in Accounting | Accounting Standards and Changes in Accounting In August 2018, the FASB issued ASU 2018-12 Financial Services-Insurance (Topic 944) - Targeted Improvements to the Accounting for Long-Duration Contracts . This update is aimed at improving the Codification as it relates to long-duration contracts which will improve the timeliness of recognizing changes in the liability for future policy benefits, simplify accounting for certain market-based options, simplify the amortization of deferred acquisition costs, and improve the effectiveness of required disclosures. Amendments include the following: A. Require insurance entity to (1) review and update assumptions used to measure cash flows at least annually (with changes recognized in net income) and (2) update discount rate assumption at each reporting date (with changes recognized in other comprehensive income). B. Require insurance entity to measure all market risk benefits associated with deposit (i.e. account balance) contracts at fair value, with change in fair value attributable to change in instrument-specific credit risk recognized in other comprehensive income. C. Simplify amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins and require those balances be amortized on constant level basis over expected term of related contract. Deferred acquisition costs are required to be written off for unexpected contract terminations but are not subject to impairment test. D. Require insurance entity to add disclosures of disaggregated rollforwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, and deferred acquisition costs. Insurance entity must also disclose information about significant inputs, judgments, assumptions, and methods used in measurement, including changes in those inputs, judgments, and assumptions, and the effect of those changes on measurement. These updates are required to be applied retrospectively to the earliest period presented in the financial statements for periods beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. In August 2018, the FASB issued a new Concepts Statement No. 8 Conceptual Framework for Financial Reporting - Chapter 8, Notes to Financial Statements . This was issued as part of a disclosure framework project aimed at improving disclosures in financial statements. This issuance provides conceptual guidance that may be followed when determining items to include as disclosures in the notes to financial statements. In conjunction with this issuance, the FASB also issued two accounting standard updates (“ASU”) which identified a particular FASB Topic and evaluated its disclosures through the new conceptual framework of Concepts Statement No. 8, Chapter 8. This process resulted in the issuance of the following two ASUs. In August 2018, FASB issued ASU 2018-13 F air Value Measurement (Topic 820) Disclosure Framework - Changes to the Disclosure requirements for Fair Value Measurement. This update removed disclosures for 1) amount of and reasons for transfers between Level 1 and Level 2 for fair value hierarchy, 2) policy for timing of transfers between levels, 3) valuation process for Level 3 fair value measurements. This update also added disclosure requirement as follows: 1) changes in unrealized gains and losses for the period included in OCI for recurring Level 3 fair value measurements held at end of reporting period; 2) range and weighted average (or other reasonable quantitative measurement) of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments will be effective for interim periods beginning after December 15, 2019. In August 2018, FASB issued ASU 2018-14 Compensation-Retirement Benefits - Defined Benefit Plans-General (Subtopic 715-20) Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . This update removed disclosures for 1) amounts in AOCI expected to be recognized as components of net periodic benefit cost over the next fiscal year, 2) amount and timing of plan assets expected to be returned to the employer, 3) related party disclosures about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan, 4) the effects of a one-percentage-point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of the net periodic benefit costs and (b) benefit obligation for postretirement health care benefits. This update also added disclosures as follow: 1) weighted-average interest crediting rates for cash balance plans and other plans with promised crediting rates, 2) explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. Finally, this update clarified that the following information for defined benefit pension plans should be disclosed: 1) projected benefit obligation (PBO) and fair value of plan assets for plans with PBO in excess of plan assets, 2) accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets. The amendments will be effective for fiscal periods ending after December 31, 2020. In August 2018, the SEC released a final rule updating disclosure requirements, Disclosure Update and Simplification, which resulted in the additional interim disclosure of an analysis of changes in stockholders’ equity to be required for the current and comparative quarter and year-to-date interim periods. Registrants will be required to provide an analysis of changes in each caption of stockholders’ equity and noncontrolling interests, which will need to be accompanied by dividends per share and in the aggregate for each class of shares. The disclosure must be presented in the form of a reconciliation, either as a separate statement or in the footnotes. The amendments will be effective for interim periods beginning after November 5, 2018. In June 2016, the FASB released ASU 2016-13, Financial Instruments-Credit Losses , which revises the credit loss recognition criteria for certain financial assets measured at amortized cost. The new guidance replaces the existing incurred loss recognition model with an expected loss recognition model. The objective of the expected credit loss model is for the reporting entity to recognize its estimate of expected credit losses for affected financial assets in a valuation allowance deducted from the amortized cost basis of the related financial assets that results in presenting the net carrying value of the financial assets at the amount expected to be collected. The guidance is effective for interim and annual periods beginning after December 15, 2019, and for most affected instruments must be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to beginning retained income. Adoption of the guidance is not expected to have a material effect on the Company’s results of operations or financial position. In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities , which amends the amortization period for certain purchased callable debt securities held at a premium. The amortization period for premiums is being shortened to the earliest call date. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Adoption of the guidance is not expected to have a material effect on the Company’s results of operations or financial position. Accounting pronouncements adopted In January 2018, the Company adopted ASU 2017-07 Compensation-Retirement Benefits (Topic 615): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The new guidance requires that an employer that offers to its employees defined benefit pension or other postretirement benefit plans report the service cost component in the same line item or items as other compensation costs. The other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item is not used, the line item used in the income statement to present the other components of net periodic benefit cost must be disclosed. In addition, the guidance allows only the service cost component to be eligible for capitalization when applicable. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. The Company does not capitalize service costs. On February 14, 2018, the FASB released ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The update addresses certain stranded income tax effects in accumulated other comprehensive income caused by the Tax Cuts and Job Act ("Tax Act") which was passed in December 2017. Under the new FASB rules, financial statement preparers are provided the option to reclassify stranded tax effects within accumulated other comprehensive income in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recorded. Companies must apply the new guidance for fiscal years, including interim periods within such years, starting after December 15, 2018, with early adoption permitted. The amendments are to be applied in either the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the federal corporate income tax rate from the Tax Act is recognized. The Company elected to adopt the requirements of this update in its Consolidated Financial Statements for the year ended December 31, 2017 and has reported the resultant reclassification amount, $2.5 million , as a charge to Retained Earnings in the accompanying Consolidated Statements of Stockholders' Equity. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . The guidance requires companies to recognize revenue that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. As an insurance enterprise, the primary sources of revenue are excluded from this guidance, including insurance premiums, contract charges, and investment revenues. We have certain types of non-insurance and non-investment revenue from contracts with customers that fall under this guidance. These revenues are recognized when obligations under the terms of the contract are satisfied. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for those services. For these revenues, the performance obligation is fulfilled as services are rendered. Revenues from contracts with customers identified under Topic 606 are not material, representing 2% of our total revenues for the year ended December 31, 2017. The guidance is effective for reporting periods beginning after December 15, 2017 and is to be applied either on a full or modified retrospective basis. The adoption of this ASU did not have a material effect on the results of operations or financial position of the Company. In January 2016, the FASB released ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities . The main provisions of the update 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 require that equity securities be carried at fair market value on the balance sheet and any periodic changes in value be recorded as adjustments directly to the income statement. The provisions of this update became effective for the Company beginning January 1, 2018. The prospective adoption of this update resulted in the reclassification of $4.4 million pertaining to unrealized gains, net of tax, out of Accumulated Other Comprehensive Income into Retained Earnings as a cumulative effect of a change in accounting principle, as shown in the Condensed Consolidated Statements of Changes in Stockholders' Equity. Equity securities, previously included in Securities Available for Sale are now reported as a separate line item on the Consolidated Balance Sheet. The change in fair value of equity securities, previously reported in Other Comprehensive income, is now included in net investment income in the Condensed Consolidated Statements of Earnings. As the Company's equity securities holdings are not significant, the adoption of the requirements of this update did not have a material impact on the Company’s financial position, results of operations or cash flows. In May 2017, the FASB released ASU 2017-09, Compensation - Stock Compensation . The update provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Accounting Standards Codification ("ASC") Topic 718. An entity shall account for the effects of a modification described in ASC paragraphs 718-20-35-3 through 35-9, unless all the following are met: (1) The fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; (2) The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (3) The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The provisions of this update become effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. There was no impact to the Company’s financial position, results of operations or cash flows as the result of the adoption of this ASU. In July 2017, the FASB released ASU 2017-11, Earnings Per Share; Distinguishing Liabilities from Equity; and, Derivatives and Hedging . This update includes: (I) Accounting for Certain Financial Instruments with Down Round Features, and (II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interest with a Scope Exception. Part I of this update changes the classification analysis of certain equity-linked financial instruments with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. Part II of this update recharacterizes the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. There was no impact to the Company’s financial position, results of operations or cash flows as the result of the adoption of this ASU. In June 2018, the FASB released ASU 2018-07 Compensation - Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting . This update largely aligns the accounting for share-based payment awards issued to employees and nonemployees. Previously, nonemployee stock compensation was accounted for under Subtopic 505-50 but will now fall under Topic 718. Changes to the accounting for nonemployee awards include 1) measurement based on fair value of the equity instrument at grant date, rather than previous requirement to measure based on the more reliable option of the fair value of the consideration or the fair value of the equity instrument, 2) initial measurement at grant date, rather than the earlier of the date at which commitment for performance is reached or performance is complete, and 3) when performance conditions are present, the probability of satisfying performance conditions should be considered in measurement rather than the previous requirement to measure at the lowest aggregate fair value. The amendments in the new guidance are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal period. There was no impact to the Company’s financial position, results of operations or cash flows as the result of the adoption of this ASU. In February 2016, the FASB issued new guidance on leasing transactions (ASU 2016-02, Leases - Topic 842). The new guidance is effective for the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and requires a modified retrospective transition approach (subject to optional practical expedients). The new guidance requires a lessee to recognize assets and liabilities for leases with lease terms of more than 12 months. Leases would be classified as finance or operating leases and both types of leases will be recognized on the balance sheet. Lessor accounting will remain largely unchanged from current guidance except for certain targeted changes. The new guidance will also require new qualitative and quantitative disclosures. Early adoption is permitted. There was no impact to the Company’s financial position, results of operations or cash flows as the result of the adoption of this ASU. 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. |
Significant Accounting Policies
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of reclassification from AOCI | The table below shows the unrealized gains and losses on available-for-sale securities that were reclassified out of accumulated other comprehensive income for the years ended December 31, 2018 , 2017 and 2016 . Affected Line Item In the Consolidated Statements of Earnings Amount Reclassified from Accumulated Other Comprehensive Income Years Ended December 31, 2018 2017 2016 Other net investment gains (losses) $ 3,441 5,348 3,316 Net OTTI losses recognized in earnings — (112 ) — Earnings before Federal income taxes 3,441 5,236 3,316 Federal income taxes 723 1,833 1,161 Net earnings $ 2,718 3,403 2,155 |
Deferred Policy Acquisition Costs | A summary of information relative to deferred policy acquisition costs ("DPAC") is provided in the table below. Years Ended December 31, 2018 2017 2016 (In thousands) Deferred policy acquisition costs, beginning of year $ 819,511 835,194 853,451 Policy acquisition costs deferred: Agents' commissions 75,899 95,088 112,048 Other 8,195 8,433 7,808 Total costs deferred 84,094 103,521 119,856 Amortization of deferred policy acquisition costs (114,771 ) (114,387 ) (121,139 ) Adjustments for unrealized (gains) losses on investment securities 52,870 (4,817 ) (16,974 ) Deferred policy acquisition costs, end of year $ 841,704 819,511 835,194 |
Summary of Direct Premiums and Deposits Collected | A summary of direct premiums and deposits collected is provided below. Years Ended December 31, 2018 2017 2016 (In thousands) Annuity deposits $ 411,208 608,799 730,740 Universal life insurance deposits 278,971 254,960 250,459 Traditional life and other premiums 21,561 22,624 22,377 Totals $ 711,740 886,383 1,003,576 |
Schedule of Movement in Deferred Sales Inducement | A summary of information relative to deferred sales inducements is provided in the table below. Years Ended December 31, 2018 2017 2016 (In thousands) Deferred sales inducements, beginning of year $ 135,570 147,111 159,166 Sales inducement costs deferred 7,546 17,901 19,302 Amortization of sales inducements (20,299 ) (28,552 ) (26,922 ) Adjustments for unrealized (gains) losses on investment securities 10,897 (890 ) (4,435 ) Deferred sales inducements, end of year $ 133,714 135,570 147,111 |
Statutory Accounting Practices Disclosure | The table below provides the Company’s net gain from operations, net income, unassigned surplus (retained earnings) and capital and surplus (stockholders' equity), on the statutory basis used to report to regulatory authorities for the years ended December 31. 2018 2017 2016 (In thousands) Net gain from operations before Federal and foreign income taxes $ 27,359 197,597 124,571 Net income $ 31,296 126,932 88,712 Unassigned surplus $ 1,370,468 1,330,491 1,207,298 Capital and surplus $ 1,413,532 1,374,554 1,251,361 December 31, 2018 2017 (In thousands) Debt securities held to maturity $ 14,708 14,596 Debt securities available for sale 570 685 Short-term investments 475 475 Totals $ 15,753 15,756 |
Deposits with Regulatory Auth_2
Deposits with Regulatory Authorities Deposit with Regulatory Authorities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposit with Regulatory Authorities [Abstract] | |
Statutory Accounting Practices Disclosure | The table below provides the Company’s net gain from operations, net income, unassigned surplus (retained earnings) and capital and surplus (stockholders' equity), on the statutory basis used to report to regulatory authorities for the years ended December 31. 2018 2017 2016 (In thousands) Net gain from operations before Federal and foreign income taxes $ 27,359 197,597 124,571 Net income $ 31,296 126,932 88,712 Unassigned surplus $ 1,370,468 1,330,491 1,207,298 Capital and surplus $ 1,413,532 1,374,554 1,251,361 December 31, 2018 2017 (In thousands) Debt securities held to maturity $ 14,708 14,596 Debt securities available for sale 570 685 Short-term investments 475 475 Totals $ 15,753 15,756 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Income | The major components of net investment income are as follows: Years Ended December 31, 2018 2017 2016 (In thousands) Gross investment income: Debt and equity securities $ 399,645 409,401 416,638 Mortgage loans 12,066 11,045 7,964 Policy loans 3,185 3,485 3,700 Derivative gains (losses) (80,004 ) 222,875 28,364 Short term investments 2,249 1,012 668 Other investment income 13,289 13,137 11,432 Total investment income 350,430 660,955 468,766 Less investment expenses 1,353 1,270 1,092 Net investment income $ 349,077 659,685 467,674 |
Mortgage Loans by Geographic Location | he diversification of the portfolio by geographic region, property type, and loan-to-value ratio was as follows: December 31, 2018 December 31, 2017 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Geographic Region: West South Central $ 116,205 57.0 $ 119,794 57.3 East North Central 20,944 10.3 30,876 14.8 South Atlantic 29,829 14.6 19,155 9.2 East South Central 13,801 6.8 14,273 6.8 West North Central 12,751 6.3 12,967 6.2 Pacific 6,626 3.2 8,014 3.8 Middle Atlantic 2,138 1.0 2,215 1.1 Mountain 1,561 0.8 1,605 0.8 Gross balance 203,855 100.0 208,899 100.0 Allowance for possible losses (675 ) (0.3 ) (650 ) (0.3 ) Totals $ 203,180 99.7 $ 208,249 99.7 |
Schedule of Mortgage Loans by Property Type | December 31, 2018 December 31, 2017 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Property Type: Retail $ 96,075 47.1 $ 87,805 42.0 Office 71,194 34.9 74,301 35.6 Hotel 14,454 7.1 13,782 6.6 Land/Lots 3,498 1.7 10,563 5.1 All other 18,634 9.2 22,448 10.7 Gross balance 203,855 100.0 208,899 100.0 Allowance for possible losses (675 ) (0.3 ) (650 ) (0.3 ) Totals $ 203,180 99.7 $ 208,249 99.7 |
Schedule of Mortgage Loans by Loan-to-Value Ratio | December 31, 2018 December 31, 2017 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Loan-to-Value Ratio (1): Less than 50% $ 66,371 32.6 $ 82,224 39.4 50% to 60% 22,610 11.1 27,395 13.1 60% to 70% 102,857 50.4 86,849 41.6 70% to 80% 6,642 3.3 — — 80% to 90% 5,375 2.6 6,929 3.3 Greater than 90% — — 5,502 2.6 Gross balance 203,855 100.0 208,899 100.0 Allowance for possible losses (675 ) (0.3 ) (650 ) (0.3 ) Totals $ 203,180 99.7 $ 208,249 99.7 |
Schedule of Allowance for Mortgage Loans | The following table represents the mortgage loan allowance for the years ended December 31, 2018 and 2017 : 2018 2017 (In thousands) Balance, beginning of period $ 650 650 Provision 25 — Releases — — Balance, end of period $ 675 650 |
Investments Classified by Contractual Maturity Date | The contractual maturities of mortgage loan principal balances at December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 Amount % Amount % (In thousands) (In thousands) Principal Balance by Contractual Maturity: Due in one year or less $ 23,839 11.7 $ 22,966 11.0 Due after one year through five years 39,391 19.3 41,248 19.7 Due after five years through ten years 134,574 65.8 119,966 57.2 Due after ten years through fifteen years 6,642 3.2 25,429 12.1 Totals $ 204,446 100.0 $ 209,609 100.0 |
Schedule of Held-to-Maturity Securities | The table below presents amortized costs and fair values of securities held to maturity at December 31, 2017 . Securities Held to Maturity Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: U.S. Treasury $ 1,337 177 — 1,514 States and political subdivisions 467,437 21,907 (100 ) 489,244 Public utilities 1,062,545 30,527 (894 ) 1,092,178 Corporate 4,430,099 121,978 (7,876 ) 4,544,201 Residential mortgage-backed 1,280,307 27,445 (6,216 ) 1,301,536 Home equity 4,262 57 (4 ) 4,315 Manufactured housing 1,037 79 — 1,116 Totals $ 7,247,024 202,170 (15,090 ) 7,434,104 December 31, 2018 . Securities Held to Maturity Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: U.S. Treasury $ 1,341 116 — 1,457 States and political subdivisions 457,404 9,764 (2,376 ) 464,792 Public utilities 930,629 5,928 (12,944 ) 923,613 Corporate 4,715,775 27,652 (87,043 ) 4,656,384 Residential mortgage-backed 1,176,216 13,771 (11,932 ) 1,178,055 Home equity 3,193 47 (10 ) 3,230 Manufactured housing 696 41 — 737 Totals $ 7,285,254 57,319 (114,305 ) 7,228,268 |
Schedule of Debt Securities, Available-for-sale | The table below presents amortized costs and fair values of securities available for sale at December 31, 2018 . As indicated in Note (1) Summary of Significant Accounting Policies, effective January 1, 2018, equity securities are no longer included in the Securities Available for Sale category. Securities Available for Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: States and political subdivisions $ 570 — (4 ) 566 Foreign governments 9,974 30 — 10,004 Public utilities 82,943 1,045 (517 ) 83,471 Corporate 2,893,221 15,473 (79,638 ) 2,829,056 Residential mortgage-backed 15,947 937 (84 ) 16,800 Home equity 5,969 193 — 6,162 Manufactured housing — — — — $ 3,008,624 17,678 (80,243 ) 2,946,059 |
Schedule of Available-for-Sale Securities | The table below presents amortized costs and fair values of securities available for sale at December 31, 2017 . Securities Available for Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: States and political subdivisions $ 575 — (29 ) 546 Foreign governments 9,964 326 — 10,290 Public utilities 83,466 3,640 — 87,106 Corporate 2,842,381 81,737 (10,744 ) 2,913,374 Residential mortgage-backed 20,246 1,376 (52 ) 21,570 Home equity 7,878 367 — 8,245 Manufactured housing — — — — 2,964,510 87,446 (10,825 ) 3,041,131 Equity securities 12,890 5,708 (120 ) 18,478 Totals $ 2,977,400 93,154 (10,945 ) 3,059,609 |
Schedule of Gross Unrealized Losses and Fair Values of Held-to-Maturity Investments, Continuous Unrealized Loss Position | The following table shows the gross unrealized losses and fair values of the Company's held to maturity investments by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2017 . 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: State and political subdivisions $ 6,308 (14 ) 4,869 (86 ) 11,177 (100 ) Public utilities 68,368 (407 ) 34,091 (487 ) 102,459 (894 ) Corporate 248,844 (1,296 ) 431,591 (6,580 ) 680,435 (7,876 ) Residential mortgage-backed 130,015 (738 ) 192,399 (5,478 ) 322,414 (6,216 ) Home equity 2,830 (4 ) — — 2,830 (4 ) Total $ 456,365 (2,459 ) 662,950 (12,631 ) 1,119,315 (15,090 ) December 31, 2018 . 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: State and political subdivisions $ 88,253 (2,124 ) 10,645 (252 ) 98,898 (2,376 ) Public utilities 396,980 (8,371 ) 98,632 (4,573 ) 495,612 (12,944 ) Corporate 2,144,969 (55,125 ) 650,401 (31,918 ) 2,795,370 (87,043 ) Residential mortgage-backed 202,986 (2,032 ) 311,374 (9,900 ) 514,360 (11,932 ) Home equity — — 1,976 (10 ) 1,976 (10 ) Total $ 2,833,188 (67,652 ) 1,073,028 (46,653 ) 3,906,216 (114,305 ) |
Schedule of Debt Securities, Available-for-sale, Unrealized Loss Position | The following table shows the gross unrealized losses and fair values of the Company's available for sale investments by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2018 . 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: State and political subdivisions $ 566 (4 ) — — 566 (4 ) Public utilities 38,903 (517 ) — — 38,903 (517 ) Corporate 1,468,953 (44,575 ) 442,798 (35,063 ) 1,911,751 (79,638 ) Residential mortgage-backed — — 878 (84 ) 878 (84 ) Total $ 1,508,422 (45,096 ) 443,676 (35,147 ) 1,952,098 (80,243 ) |
Schedule of Gross Unrealized Losses and Fair Values of Available-for-Sale Investments, Continuous Unrealized Loss Position | The following table shows the gross unrealized losses and fair values of the Company's available for sale investments by investment category, and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2017 . 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: State and political subdivisions $ 546 (29 ) — — 546 (29 ) Corporate 201,575 (1,134 ) 296,845 (9,610 ) 498,420 (10,744 ) Residential mortgage-backed 1,325 (14 ) 1,085 (38 ) 2,410 (52 ) Home equity 1,653 — — — 1,653 — 205,099 (1,177 ) 297,930 (9,648 ) 503,029 (10,825 ) Equity securities 1,246 (77 ) 289 (43 ) 1,535 (120 ) Total $ 206,345 (1,254 ) 298,219 (9,691 ) 504,564 (10,945 ) |
Schedule of Amortized Cost and Fair Value of Investments In Debt Securities | The amortized cost and fair value of investments in debt securities at December 31, 2018 , 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 $ 159,967 162,279 371,423 375,021 Due after 1 year through 5 years 1,076,437 1,073,423 2,885,587 2,889,770 Due after 5 years through 10 years 1,697,093 1,636,466 2,486,014 2,418,209 Due after 10 years 53,211 50,929 362,125 363,246 2,986,708 2,923,097 6,105,149 6,046,246 Mortgage and asset-backed securities 21,916 22,962 1,180,105 1,182,022 Total $ 3,008,624 2,946,059 7,285,254 7,228,268 |
Realized Investment Gains (Losses), Excluding Impairment Losses | The table below details the nature of realized gains and losses, excluding impairments, during the year. Years Ended December 31, 2018 2017 2016 (In thousands) Available for sale debt securities: Realized gains on disposal $ 3,447 5,208 2,644 Realized losses on disposal (6 ) (7 ) (29 ) Held to maturity debt securities: Realized gains on redemption 3,208 6,944 6,940 Realized losses on redemption — (74 ) (137 ) Equity securities realized gains — 147 702 Real estate 1,799 2,657 2,950 Mortgage loans (25 ) — — Other — — — Totals $ 8,423 14,875 13,070 |
Net Impairment Losses Recognized in Earnings | The table below presents a roll forward of credit losses on securities for which the Company also recorded non-credit other-than-temporary impairments in other comprehensive loss. Year Ended Year Ended December 31, 2018 December 31, 2017 (In thousands) Beginning balance, cumulative credit losses related to other-than-temporary impairments $ 627 1,440 Reductions for securities disposed during current period — (813 ) Additions for OTTI where credit losses have been previously recognized — — Ending balance, cumulative credit losses related to other-than-temporary impairments $ 627 627 Years Ended December 31, 2018 2017 2016 (In thousands) Total other-than-temporary impairment recoveries (losses) on debt securities $ 12 599 110 Portion recognized in comprehensive income (12 ) (599 ) (110 ) Net impairment losses on debt securities recognized in earnings — — — Equity securities impairments — (112 ) — Totals $ — (112 ) — |
Unrealized Gain (Loss) on Investments | Net unrealized gains (losses) on investment securities included in stockholders' equity at December 31, 2018 and 2017 , are as follows: December 31, 2018 2017 (In thousands) Gross unrealized gains $ 17,678 93,034 Gross unrealized losses (80,263 ) (10,856 ) Adjustments for: Deferred policy acquisition costs and sales inducements 24,237 (39,579 ) Deferred Federal income tax expense 8,053 (8,946 ) (30,295 ) 33,653 Net unrealized gains related to securities transferred to held to maturity — — Net unrealized gains (losses) on investment securities $ (30,295 ) 33,653 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Total Federal income taxes were allocated as follows: Years Ended December 31, 2018 2017 2016 (In thousands) Taxes (benefits) on earnings from continuing operations: Current $ (1,697 ) 74,361 41,544 Deferred 26,446 (23,129 ) 10,426 Remeasurement of deferred taxes due to Tax Act — (17,098 ) — Taxes on earnings 24,749 34,134 51,970 Taxes (benefits) on components of stockholders' equity: Net unrealized gains and losses on securities available for sale (15,870 ) 2,736 5,382 Foreign currency translation adjustments 360 (5 ) (88 ) Change in benefit plan liability 3,003 (2,085 ) (62 ) Total Federal income taxes (benefit) $ 12,242 34,780 57,202 |
Schedule of Income Tax Reconciliation | These differences and the corresponding tax effects are as follows: Years Ended December 31, 2018 2017 2016 (In thousands) Income tax expense at statutory rate (21% in 2018 and 35% in 2017 and 2016) $ 29,716 50,594 53,502 Dividend received deduction (820 ) (1,099 ) (850 ) Tax exempt interest (1,416 ) (2,276 ) (2,193 ) Non deductible salary expense 54 — — Adjustments pertaining to prior tax years (3,071 ) 895 1,076 Nondeductible insurance 96 160 160 Nondeductible expenses 198 178 588 Remeasurement of deferred taxes due to Tax Act — (17,098 ) — Excess premium liability — 2,870 — Other, net (8 ) (90 ) (313 ) Taxes on earnings from continuing operations $ 24,749 34,134 51,970 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2018 and 2017 are presented below. December 31, 2018 2017 (In thousands) Deferred tax assets: Future policy benefits, excess of financial accounting liabilities over tax liabilities $ 189,100 162,424 Investment securities write-downs for financial accounting purposes 311 196 Benefit plan liabilities 7,444 10,355 Real estate, principally due to adjustments for financial accounting purposes 16 — Accrued operating expenses recorded for financial accounting purposes not currently tax deductible 4,426 6,222 Tax reform reserve adjustment — 83,935 Accrued and unearned investment income recognized for tax purposes and deferred for financial accounting purposes 109 265 Net unrealized losses on debt securities available for sale 7,390 — Other 74 94 Total gross deferred tax assets 208,870 263,491 Deferred tax liabilities: Deferred policy acquisition and sales inducement costs, principally expensed for tax purposes (170,940 ) (180,780 ) Tax reform reserve adjustment (61,170 ) (83,935 ) Debt securities, principally due to deferred market discount for tax (7,370 ) (7,526 ) Real estate, principally due to adjustments for financial accounting purposes — (5 ) Net unrealized gains on securities available for sale — (8,945 ) Foreign currency translation adjustments (1,217 ) (857 ) Fixed assets, due to different depreciation bases (7,546 ) (6,853 ) Other (11 ) 2 Total gross deferred tax liabilities (248,254 ) (288,899 ) Net deferred tax liabilities $ (39,384 ) (25,408 ) |
Pension and Other Postretirem_2
Pension and Other Postretirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | Obligations and Funded Status December 31, 2018 2017 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 36,914 26,232 Service cost 361 818 Interest cost 852 1,387 Actuarial (gain) loss (13,870 ) 10,459 Benefits paid (1,982 ) (1,982 ) Projected benefit obligations at end of year 22,275 36,914 Change in plan assets: Fair value of plan assets at beginning of year — — Contributions 1,982 1,982 Benefits paid (1,982 ) (1,982 ) Fair value of plan assets at end of year — — Funded status at end of year $ (22,275 ) (36,914 ) Obligations and Funded Status December 31, 2018 2017 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 24,659 24,553 Service cost 111 106 Interest cost 899 957 Plan amendments (1,396 ) — Actuarial gain (loss) 494 558 Benefits paid (2,829 ) (1,515 ) Projected benefit obligations at end of year 21,938 24,659 Changes in plan assets: Fair value of plan assets at beginning of year 19,312 18,279 Actual return on plan assets (414 ) 2,442 Contributions 100 106 Benefits paid (2,829 ) (1,515 ) Fair value of plan assets at end of year 16,169 19,312 Funded status at end of year $ (5,769 ) (5,347 ) Obligations and Funded Status December 31, 2018 2017 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 3,774 3,366 Interest cost 158 139 Actuarial loss (gain) 298 274 Benefits paid — (5 ) Projected benefit obligations at end of year 4,230 3,774 Changes in plan assets: Fair value of plan assets at beginning of year — — Contributions — 5 Benefits paid — (5 ) Fair value of plan assets at end of year — — Funded status at end of year $ (4,230 ) (3,774 ) |
Schedule of Amounts Recognized in Consolidated Financial Statements and in Other Comprehensive Income | December 31, 2018 2017 (In thousands) Amounts recognized in the Company's Consolidated Financial Statements: Assets $ — — Liabilities (5,769 ) (5,347 ) Net amount recognized $ (5,769 ) (5,347 ) Amounts recognized in accumulated other comprehensive income: Net loss $ 8,435 8,147 Prior service cost — — Net amount recognized $ 8,435 8,147 December 31, 2018 2017 (In thousands) Amounts recognized in the Company's Consolidated Financial Statements: Assets $ — — Liabilities (22,275 ) (36,914 ) Net amount recognized $ (22,275 ) (36,914 ) Amounts recognized in accumulated other comprehensive income: Net loss $ 4,475 19,049 Prior service cost 522 582 Net amount recognized $ 4,997 19,631 December 31, 2018 2017 (In thousands) Amounts recognized in the Company's Consolidated Financial Statements: Assets $ — — Liabilities (4,230 ) (3,774 ) Net amount recognized $ (4,230 ) (3,774 ) Amounts recognized in accumulated other comprehensive income: Net loss $ 816 669 Prior service cost 51 155 Net amount recognized $ 867 824 |
Schedule of Components of Periodic Benefit Cost | Components of Net Periodic Benefit Cost Years Ended December 31, 2018 2017 2016 (In thousands) Components of net periodic benefit costs: Interest cost $ 899 957 1,000 Service cost 111 106 105 Expected return on plan assets (1,300 ) (1,227 ) (1,215 ) Amortization of prior service cost — — — Amortization of net loss 524 638 772 Net periodic benefit cost 234 474 662 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net loss (gain) 812 (658 ) Amortization of prior service cost — — Amortization of net loss (gain) (524 ) (638 ) Total recognized in other comprehensive income 288 (1,296 ) Total recognized in net periodic benefit cost and other comprehensive income $ 522 (822 ) Years Ended December 31, 2018 2017 2016 (In thousands) Components of net periodic benefit cost: Service cost $ 361 818 438 Interest cost 852 1,387 1,058 Amortization of prior service cost 59 59 59 Amortization of net loss 704 3,274 2,003 Net periodic benefit cost 1,976 5,538 3,558 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net (gain) loss (13,870 ) 10,459 Amortization of prior service cost (59 ) (59 ) Amortization of net (gain) loss (704 ) (3,274 ) Total recognized in other comprehensive income (14,633 ) 7,126 Total recognized in net periodic benefit cost and other comprehensive income $ (12,657 ) 12,664 Years Ended December 31, 2018 2017 2016 (In thousands) Components of net periodic benefit cost: Interest cost $ 158 139 121 Amortization of prior service cost 103 103 103 Amortization of net loss 151 41 — Net periodic benefit cost 412 283 224 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net (gain) loss 298 274 Amortization of prior service cost (103 ) (103 ) Amortization of net (gain) loss (151 ) (41 ) Total recognized in other comprehensive income 44 130 Total recognized in net periodic benefit cost and other comprehensive income $ 456 413 |
Schedule of Allocation of Plan Assets | The following tables set forth the Company’s pension plan assets within the fair value hierarchy as of December 31, 2018 and 2017 . December 31, 2018 Total Level 1 Level 2 Level 3 (In thousands) Cash and cash equivalents $ 209 209 — — Equity securities Domestic 9,909 9,909 — — International 193 193 — — Debt securities Corporate bonds 5,858 5,858 — Total $ 16,169 10,311 5,858 — |
Pension Allocation by Type of Fund and Target Allocation | The plan’s weighted-average asset allocations by asset category have been as follows: December 31, 2018 2017 2016 Asset Category: Equity securities 63% 64% 62% Debt securities 36% 33% 31% Cash and cash equivalents 1% 3% 7% Total 100% 100% 100% |
Schedule of Acceptable Ranges for Each Asset as per Investment Policy Statement | The investment policy statement sets forth the following acceptable ranges for each asset's class. Acceptable Range Asset Category: Equity securities 55-70% Debt securities 30-40% Cash and cash equivalents 0-15% |
Schedule of Assumptions Used | December 31, 2018 2017 Weighted-average assumptions used to determine benefit obligations: Discount rate 4.00 % 3.75 % Rate of compensation increase 8.00 % 8.00 % December 31, 2018 2017 2016 Weighted-average assumptions used to determine net periodic benefit costs: Discount rate 3.75 % 4.00 % 4.00 % Expected long-term return on plan assets n/a n/a n/a Rate of compensation increase 8.00 % 8.00 % 8.00 % December 31, 2018 2017 Weighted-average assumptions used to determine benefit obligations: Discount rate 4.00 % 3.75 % Rate of compensation increase n/a n/a December 31, 2018 2017 2016 Weighted-average assumptions used to determine net periodic benefit cost: Discount rate 3.75 % 4.00 % 4.00 % Expected long-term return on plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase n/a n/a n/a |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2019 $ 1,982 2020 1,982 2021 1,982 2022 1,982 2023 1,982 2024-2028 7,228 2019 $ 1,482 2020 1,472 2021 1,455 2022 1,415 2023 1,372 2024-2028 6,561 |
Defined Benefit Postretirement Healthcare Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Assumptions Used | Assumptions December 31, 2018 2017 Weighted-average assumptions used to determine benefit obligations: Discount rate 4.00 % 3.75 % Expected long-term return on plan assets n/a n/a For measurement purposes, a 9% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2019 , decreasing annually by 0.5% until reaching an ultimate rate of 5% . Assumed health care trend rates have a significant effect on the amounts reported for the health care plans. A one percentage point change in assumed health care cost trend rates would have the following effects for the years ended. December 31, 2018 December 31, 2017 1% Point Increase 1% Point Decrease 1% Point Increase 1% Point Decrease (In thousands) Effect on total of service and interest cost components $ 24 (24 ) 22 (21 ) Effect on postretirement benefit obligation $ 630 (624 ) 607 (592 ) |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2019 $ 104 2020 111 2021 118 2022 124 2023 129 2024-2028 749 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The Company's future annual lease obligations as of December 31, 2018 are as shown below (in thousands). 2019 $ 359 2020 359 2021 358 2022 358 Total minimum lease payments 1,434 Less: Interest (117 ) Present value of net minimum lease payments $ 1,317 |
Stockholders Equity (Tables)
Stockholders Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Changes in Shares of Common Stock | Changes in shares of common stock outstanding are provided below. Years Ended December 31, 2018 2017 2016 (In thousands) Common stock shares outstanding: Shares outstanding at beginning of year 3,636 3,636 3,636 Shares exercised under stock option plan — — — Shares outstanding at end of year 3,636 3,636 3,636 |
Summary of Shares Available for Grant and Stock Option Activity | A summary of awards by type and related activity is detailed below. Options Outstanding Shares Available For Grant Shares Weighted-Average Exercise Price Stock Options: Balance at January 1, 2018 291,000 18,018 $ 242.07 Exercised — (18,018 ) $ 242.07 Forfeited — — $ — Expired — — $ — Stock options granted — — $ — Balance at December 31, 2018 291,000 — $ — |
Schedule of Stock Appreciation Rights Activity | Liability Awards Other Share/Unit Awards: SARs RSUs PSUs Balance at January 1, 2018 92,667 11,721 14,052 Exercised (14,034 ) (3,124 ) — Forfeited (1,780 ) (556 ) — Granted 12,590 5,129 5,070 Balance at December 31, 2018 89,443 13,170 19,122 |
Summary of Information About Stock Options and SARs Outstanding | The following table summarizes information about SARs outstanding at December 31, 2018 . SARs Outstanding Number Outstanding Weighted-Average Remaining Contractual Life Number Exercisable Exercise prices: 132.56 19,568 3.0 years 19,568 210.22 25,000 4.9 years 16,400 216.48 11,649 7.1 years 7,589 311.16 10,427 8.1 years 3,444 310.55 203 8.3 years 67 334.34 10,006 9.0 years 3,329 303.77 12,590 10.0 years — Totals 89,443 50,397 Aggregate intrinsic value (in thousands) $ 6,533 $ 5,413 |
Summary of Assumptions Employed Using Black-Scholes Option Pricing Model | In estimating the fair value of SARs/options outstanding at December 31, 2018 and 2017, the Company employed the Black-Scholes option pricing model with assumptions as detailed below. December 31, 2018 December 31, 2017 Expected term of SARs/options 3.0 to 10.0 years 0.3 to 10.0 years Expected volatility weighted-average 22.14 % 21.55 % Expected dividend yield 0.12 % 0.11 % Risk-free rate weighted-average 2.58 % 1.82 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Net income for the periods shown below is allocated between Class A shares and Class B shares based upon (1) the proportionate number of shares issued and outstanding as of the end of the period, and (2) the per share dividend rights of the two classes under the Company's Restated Certificate of Incorporation (the Class B dividend per share is equal to one-half the Class A dividend per share). Years Ended December 31, 2018 2017 2016 Class A Class B Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net earnings $ 116,758 110,421 100,892 Dividends – Class A shares (1,237 ) (1,237 ) (1,237 ) Dividends – Class B shares (36 ) (36 ) (36 ) Undistributed earnings $ 115,485 109,148 99,619 Allocation of net earnings: Dividends $ 1,237 36 1,237 36 1,237 36 Allocation of undistributed earnings 112,219 3,266 106,061 3,087 96,802 2,817 Net earnings $ 113,456 3,302 107,298 3,123 98,039 2,853 Denominator: Basic earnings per share - weighted-average shares 3,436 200 3,436 200 3,436 200 Effect of dilutive stock options — — — — 1 — Diluted earnings per share - adjusted weighted-average shares for assumed conversions 3,436 200 3,436 200 3,437 200 Basic earnings per share $ 33.02 16.51 31.23 15.61 28.53 14.27 Diluted earnings per share $ 33.02 16.51 31.23 15.61 28.53 14.27 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Comprehensive Income | During the year ended December 31, 2017, the Company remeasured its deferred tax assets and liabilities as a consequence of the Tax Act (see Notes 1 and 5) lowering the federal corporate income tax rate from 35% to 21% . This tax remeasurement was recorded in the Company's Consolidated Statements of Earnings, including taxes associated with components of other comprehensive income (loss). Recognizing the outcome of "stranding" deferred taxes in Accumulated Other Comprehensive Income ("AOCI"), the FASB released guidance permitting the reclassification of stranded tax effects from AOCI to retained earnings. Adoption of this guidance by the Company at December 31, 2017 resulted in a one-time income tax benefit of $2.5 million to other comprehensive income (loss). Components of other comprehensive income (loss) for 2018 , 2017 and 2016 and the related tax effect are detailed below. Amounts Before Taxes Tax (Expense) Benefit Amounts Net of Taxes (In thousands) 2018: Unrealized gains on securities, net of effects of deferred costs of $63,816: Net unrealized holding gains (losses) arising during the period $ (71,921 ) 15,103 (56,818 ) Unrealized liquidity losses 3 (1 ) 2 Reclassification adjustment for net gains included in net earnings (3,441 ) 723 (2,718 ) Amortization of net unrealized gains (losses) and related to transferred securities — — — Net unrealized gains (losses) on securities (75,359 ) 15,825 (59,534 ) Foreign currency translation adjustments 1,714 (360 ) 1,354 Benefit plan liability adjustment 14,301 (3,003 ) 11,298 Other comprehensive income (loss) $ (59,344 ) 12,462 (46,882 ) Amounts Before Taxes Tax (Expense) Benefit Amounts Net of Taxes (In thousands) 2017: Unrealized gains on securities, net of effects of deferred costs of $(5,670): Net unrealized holding gains (losses) arising during the period $ 12,752 (4,464 ) 8,288 Unrealized liquidity losses 300 (105 ) 195 Reclassification adjustment for net gains included in net earnings (5,236 ) 1,833 (3,403 ) Amortization of net unrealized gains (losses) related to transferred securities — — — Net unrealized gains (losses) on securities 7,816 (2,736 ) 5,080 Foreign currency translation adjustments (14 ) 5 (9 ) Benefit plan liability adjustment (5,958 ) 2,085 (3,873 ) Other comprehensive income (loss) $ 1,844 (646 ) 1,198 Amounts Before Taxes Tax (Expense) Benefit Amounts Net of Taxes (In thousands) 2016: Unrealized gains on securities, net of effects of deferred costs of $(21,105): Net unrealized holding gains (losses) arising during the period $ 19,417 (6,796 ) 12,621 Unrealized liquidity losses 57 (20 ) 37 Reclassification adjustment for net gains included in net earnings (3,315 ) 1,160 (2,155 ) Amortization of net unrealized gains (losses) related to transferred securities — — — Net unrealized gains (losses) on securities 16,159 (5,656 ) 10,503 Foreign currency translation adjustments (251 ) 87 (164 ) Benefit plan liability adjustment (178 ) 62 (116 ) Other comprehensive income (loss) $ 15,730 (5,507 ) 10,223 |
Segment and Other Operating I_2
Segment and Other Operating Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary of Segment Information, by Quarter | A summary of segment information, prepared in accordance with GAAP guidance, is provided below. Domestic Life Insurance International Life Insurance Annuities All Others Totals (In thousands) 2018: Selected Balance Sheet Items: Deferred policy acquisition costs and sales inducements $ 122,661 243,518 609,239 — 975,418 Total segment assets 1,215,864 1,211,036 8,791,463 370,118 11,588,481 Future policy benefits 1,039,150 894,891 7,810,245 — 9,744,286 Other policyholder liabilities 17,439 20,381 97,874 — 135,694 Condensed Income Statements: Premiums and contract charges $ 40,879 108,923 23,694 — 173,496 Net investment income 23,579 22,603 276,123 26,772 349,077 Other revenues 19 87 66 20,431 20,603 Total revenues 64,477 131,613 299,883 47,203 543,176 Life and other policy benefits 21,688 22,333 21,276 — 65,297 Amortization of deferred policy acquisition costs 11,539 24,358 78,874 — 114,771 Universal life and annuity contract interest 8,826 24,590 102,639 — 136,055 Other operating expenses 20,731 19,593 32,584 21,061 93,969 Federal income taxes (benefit) 292 7,035 11,139 4,514 22,980 Total expenses 63,076 97,909 246,512 25,575 433,072 Segment earnings (loss) $ 1,401 33,704 53,371 21,628 110,104 Domestic Life Insurance International Life Insurance Annuities All Others Totals (In thousands) 2017: Selected Balance Sheet Items: Deferred policy acquisition costs and sales inducements $ 101,253 250,128 603,700 — 955,081 Total segment assets 1,106,410 1,236,733 9,269,956 398,597 12,011,696 Future policy benefits 950,884 915,384 8,232,216 — 10,098,484 Other policyholder liabilities 13,643 11,318 103,048 — 128,009 Condensed Income Statements: Premiums and contract charges $ 37,387 120,852 20,691 — 178,930 Net investment income 73,866 68,399 490,706 26,714 659,685 Other revenues 46 83 109 20,832 21,070 Total revenues 111,299 189,334 511,506 47,546 859,685 Life and other policy benefits 18,565 23,981 28,939 — 71,485 Amortization of deferred policy acquisition costs 10,377 (1,473 ) 105,483 — 114,387 Universal life and annuity contract interest 59,865 54,502 322,652 — 437,019 Other operating expenses 18,842 36,341 32,021 19,798 107,002 Federal income taxes (benefit) 815 16,958 5,002 6,192 28,967 Total expenses 108,464 130,309 494,097 25,990 758,860 Segment earnings (loss) $ 2,835 59,025 17,409 21,556 100,825 Domestic Life Insurance International Life Insurance Annuities All Others Totals (In thousands) 2016: Selected Balance Sheet Items: Deferred policy acquisition costs and sales inducements $ 90,485 243,106 648,714 — 982,305 Total segment assets 971,990 1,232,648 9,193,980 298,481 11,697,099 Future policy benefits 830,460 919,380 8,109,255 — 9,859,095 Other policyholder liabilities 13,998 10,528 118,865 — 143,391 Condensed Income Statements: Premiums and contract charges $ 34,728 125,775 22,220 — 182,723 Net investment income 39,691 42,331 362,700 22,952 467,674 Other revenues 119 321 254 18,207 18,901 Total revenues 74,538 168,427 385,174 41,159 669,298 Life and other policy benefits 17,908 18,759 28,862 — 65,529 Amortization of deferred policy acquisition costs 4,125 18,027 98,987 — 121,139 Universal life and annuity contract interest 28,606 28,636 191,148 — 248,390 Other operating expenses 18,739 25,933 31,852 17,924 94,448 Federal income taxes (benefit) 1,749 26,130 11,638 7,878 47,395 Total expenses 71,127 117,485 362,487 25,802 576,901 Segment earnings (loss) $ 3,411 50,942 22,687 15,357 92,397 |
Reconciliation of Segment Net Earnings to Condensed Consolidated Financial Statements | Reconciliations of segment information to the Company's Consolidated Financial Statements are provided below. Years Ended December 31, 2018 2017 2016 (In thousands) Premiums and Other Revenue : Premiums and contract charges $ 173,496 178,930 182,723 Net investment income 349,077 659,685 467,674 Other revenues 20,603 21,070 18,901 Realized gains (losses) on investments 8,423 14,763 13,070 Total consolidated premiums and other revenue $ 551,599 874,448 682,368 Years Ended December 31, 2018 2017 2016 (In thousands) Net Earnings : Total segment earnings $ 110,104 100,825 92,397 Realized gains (losses) on investments, net of taxes 6,654 9,596 8,495 Total consolidated net earnings $ 116,758 110,421 100,892 |
Reconciliation of Segment Federal Income Taxes to Condensed Consolidated Financial Statements | Years Ended December 31, 2018 2017 2016 (In thousands) Federal Income Taxes : Total segment Federal income taxes $ 22,980 28,967 47,395 Taxes on realized gains (losses) on investments 1,769 5,167 4,575 Total taxes on consolidated net earnings $ 24,749 34,134 51,970 |
Reconciliation of Segment Assets to Condensed Consolidated Financial Statements | December 31, 2018 2017 2016 (In thousands) Assets : Total segment assets $ 11,588,481 12,011,696 11,697,099 Other unallocated assets 343,210 213,398 197,882 Total consolidated assets $ 11,931,691 12,225,094 11,894,981 |
Schedule of Premiums and Contract Revenue Detailed by Country | Premiums and contract revenues detailed by country are provided below. Years Ended December 31, 2018 2017 2016 (In thousands) United States $ 82,614 74,937 75,405 Brazil 27,280 33,024 38,928 Venezuela 14,414 16,105 15,534 Taiwan 12,864 14,844 14,474 Peru 10,969 11,714 11,378 Chile 8,769 9,201 8,859 Other foreign countries 37,346 39,417 37,820 Revenues, excluding reinsurance premiums 194,256 199,242 202,398 Reinsurance premiums (20,760 ) (20,312 ) (19,675 ) Total premiums and contract revenues $ 173,496 178,930 182,723 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of the date indicated. December 31, 2018 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available for sale $ 2,946,059 — 2,946,059 — Equity securities 17,491 17,491 — — Derivatives, index options 14,684 — — 14,684 Total assets $ 2,978,234 17,491 2,946,059 14,684 Policyholder account balances (a) $ 44,781 — — 44,781 Other liabilities (b) 11,923 — — 11,923 Total liabilities $ 56,704 — — 56,704 December 31, 2017 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available for sale $ 3,041,131 — 3,041,131 — Equity securities, available for sale 18,478 18,478 — — Derivatives, index options 194,731 — — 194,731 Total assets $ 3,254,340 18,478 3,041,131 194,731 Policyholder account balances (a) $ 211,159 — — 211,159 Other liabilities (b) 15,242 — — 15,242 Total liabilities $ 226,401 — — 226,401 (a) Represents the fair value of certain product-related embedded derivatives that were recorded at fair value. (b) Represents the liability for share-based compensation. |
Schedule of Significant Unobservable Inputs for Fair Value Measurements | The following table provides additional information about fair value measurements for which significant unobservable (Level 3) inputs were utilized to determine fair value. Year Ended December 31, 2018 Debt Securities, Available For Sale Equity Securities Derivatives, Index Options Total Assets Other Liabilities (In thousands) Beginning balance, January 1, 2018 $ — — 194,731 194,731 226,401 Total realized and unrealized gains (losses): Included in net income — — (80,004 ) (80,004 ) (65,046 ) Included in other comprehensive income (loss) — — — — — Purchases, sales, issuances and settlements, net: Purchases — — 86,953 86,953 86,953 Sales — — — — — Issuances — — — — 74 Settlements — — (186,996 ) (186,996 ) (191,678 ) Transfers into (out of) Level 3 — — — — — Balance at end of period $ — — 14,684 14,684 56,704 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income $ — — (72,269 ) (72,269 ) — Benefits and expenses — — — — (70,980 ) Total $ — — (72,269 ) (72,269 ) (70,980 ) Year Ended December 31, 2017 Debt Securities, Available For Sale Equity Securities, Available For Sale Derivatives, Index Options Total Assets Other Liabilities (In thousands) Beginning balance, January 1, 2017 $ — — 120,644 120,644 134,693 Total realized and unrealized gains (losses): Included in net income — — 222,875 222,875 240,605 Included in other comprehensive income (loss) — — — — — Purchases, sales, issuances and settlements, net: Purchases — — 75,346 75,346 75,346 Sales — — — — — Issuances — — — — 1,688 Settlements — — (224,134 ) (224,134 ) (225,931 ) Transfers into (out of) Level 3 — — — — — Balance at end of period $ — — 194,731 194,731 226,401 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income $ — — 119,386 119,386 — Benefits and expenses — — — — 122,318 Total $ — — 119,386 119,386 122,318 |
Schedule of Quantitative Information about Company's Level 3 Assets | The following tables show the quantitative information about the Company's Level 3 assets and liabilities. December 31, 2018 Fair Value Valuation Technique Unobservable Input (In thousands) Derivatives, index options $ 14,684 Broker prices Implied volatility Inputs from broker proprietary models Total assets $ 14,684 Policyholder account balances $ 44,781 Deterministic cash flow model Projected option cost Other liabilities 11,923 Black Scholes Expected term Forfeiture assumptions Total liabilities $ 56,704 December 31, 2017 Fair Value Valuation Technique Unobservable Input (In thousands) Derivatives, index options $ 194,731 Broker prices Implied volatility Inputs from broker proprietary models Total assets $ 194,731 Policyholder account balances $ 211,159 Deterministic cash flow model Projected option cost Other liabilities 15,242 Black Scholes Expected term Forfeiture assumptions Total liabilities $ 226,401 |
Schedule of Assets by Pricing Source and Fair Value Hierarchy Measured on Recurring Basis | The following table presents, by pricing source and fair value hierarchy level, the Company’s assets that are measured at fair value on a recurring basis: December 31, 2018 Total Level 1 Level 2 Level 3 (In thousands) Fixed maturities, available for sale: Priced by third-party vendors $ 2,946,059 — 2,946,059 — Priced internally — — — — Subtotal 2,946,059 — 2,946,059 — Equity securities: Priced by third-party vendors 17,491 17,491 — — Priced internally — — — — Subtotal 17,491 17,491 — — Derivatives, index options: Priced by third-party vendors 14,684 — — 14,684 Priced internally — — — — Subtotal 14,684 — — 14,684 Total $ 2,978,234 17,491 2,946,059 14,684 Percent of total 100.0 % 0.6 % 98.9 % 0.5 % |
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of the Company's financial instruments are as follows: December 31, 2018 Fair Value Hierarchy Level Carrying Values Fair Values Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities held to maturity $ 7,285,254 7,228,268 — 7,226,362 1,906 Debt securities available for sale 2,946,059 2,946,059 — 2,946,059 — Cash and cash equivalents 131,976 131,976 131,976 — — Mortgage loans 203,180 202,762 — — 202,762 Policy loans 54,724 90,802 — — 90,802 Other loans 12,272 12,709 — — 12,709 Derivatives, index options 14,684 14,684 — — 14,684 Equity securities 17,491 17,491 17,491 — — Life interest in Libbie Shearn Moody Trust 8,692 12,775 — — 12,775 LIABILITIES Deferred annuity contracts $ 7,455,642 6,403,007 — — 6,403,007 Immediate annuity and supplemental contracts 407,413 415,726 — — 415,726 December 31, 2017 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 $ 7,247,024 7,434,104 — 7,431,810 2,294 Securities available for sale 3,059,609 3,059,609 18,478 3,041,131 — Cash and cash equivalents 217,624 217,624 217,624 — — Mortgage loans 208,249 208,815 — — 208,815 Policy loans 56,405 100,230 — — 100,230 Other loans 5,431 5,603 — — 5,603 Derivatives, index options 194,731 194,731 — — 194,731 Life interest in Libbie Shearn Moody Trust 8,676 12,775 — — 12,775 LIABILITIES Deferred annuity contracts $ 7,865,786 7,338,637 — — 7,338,637 Immediate annuity and supplemental contracts 430,494 443,437 — — 443,437 |
Derivative Investments (Tables)
Derivative Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Instruments | The tables below present the fair value of derivative instruments. December 31, 2018 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 $ 14,684 Fixed-index products Universal Life and Annuity Contracts $ 44,781 Total $ 14,684 $ 44,781 December 31, 2017 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 $ 194,731 Fixed-index products Universal Life and Annuity Contracts $ 211,159 Total $ 194,731 $ 211,159 |
Schedule of Derivative Instruments in Condensed Consolidated Statements of Earnings | The table below presents the effect of derivative instruments in the Consolidated Statements of Earnings for the years ended December 31, 2018 , 2017 and 2016 . Amount of Gain or (Loss) Recognized In Income on Derivatives Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized In Income on Derivatives 2018 2017 2016 (In thousands) Equity index options Net investment income $ (80,004 ) 222,875 28,364 Fixed-index products Universal life and annuity contract interest 66,335 (237,281 ) (10,436 ) $ (13,669 ) (14,406 ) 17,928 |
Unaudited Quarterly Financial_2
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results | Quarterly results of operations for 2018 are summarized as follows: First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands except per share data) 2018: Revenues $ 109,018 174,658 225,435 42,486 Earnings (loss) $ 26,875 32,466 35,641 21,776 Basic earnings (loss) per share: Class A $ 7.60 9.18 10.08 6.16 Class B $ 3.80 4.59 5.04 3.08 Diluted earnings (loss) per share: Class A $ 7.60 9.18 10.08 6.16 Class B $ 3.80 4.59 5.04 3.08 Quarterly results of operations for 2017 are summarized as follows: First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands except per share data) 2017: Revenues $ 224,417 198,226 203,990 247,815 Earnings (loss) $ 23,538 25,483 21,813 39,587 Basic earnings (loss) per share: Class A $ 6.66 7.21 6.17 11.19 Class B $ 3.33 3.60 3.08 5.60 Diluted earnings (loss) per share: Class A $ 6.65 7.21 6.17 11.19 Class B $ 3.33 3.60 3.08 5.60 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Jan. 01, 2017 | Jan. 01, 2016 | |
Schedule of Deferred Acquisition Costs [Line Items] | ||||||
Derivatives, index options | $ 14,684 | $ 194,731 | ||||
Unrealized gains (losses) on derivatives | (80,004) | 222,875 | $ 28,364 | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Deferred policy acquisition costs, beginning of year | 819,511 | 835,194 | 853,451 | |||
Policy acquisition costs deferred: | 84,094 | 103,521 | 119,856 | |||
Amortization of deferred policy acquisition costs | (114,771) | (114,387) | (121,139) | |||
Adjustments for unrealized (gains) losses on investment securities | 52,870 | (4,817) | (16,974) | |||
Deferred policy acquisition costs, end of year | 841,704 | 819,511 | 835,194 | |||
Movement in Deferred Sales Inducements [Roll Forward] | ||||||
Deferred sales inducements, beginning of year | 135,570 | 147,111 | 159,166 | |||
Sales inducement costs deferred | 7,546 | 17,901 | 19,302 | |||
Amortization of sales inducements | (20,299) | (28,552) | (26,922) | |||
Adjustments for unrealized (gains) losses on investment securities | 10,897 | (890) | (4,435) | |||
Deferred sales inducements, end of year | 133,714 | 135,570 | 147,111 | |||
Decrease in amortization during the year | (11,900) | (13,800) | ||||
True-up adjustment in deferred sales inducement | 1,300 | 4,300 | ||||
Increase in contract interest expense | 1,700 | |||||
Summary of Premiums and Deposits Collected | ||||||
Annuity deposits | 411,208 | 608,799 | 730,740 | |||
Universal life insurance deposits | 278,971 | 254,960 | 250,459 | |||
Traditional life and other premiums | 21,561 | 22,624 | 22,377 | |||
Totals | 711,740 | 886,383 | 1,003,576 | |||
Statutory Accounting Practices | ||||||
Net gain from operations before Federal and foreign income taxes | 27,359 | 197,597 | 124,571 | |||
Net income | 31,296 | 126,932 | 88,712 | |||
Unassigned surplus | 1,370,468 | 1,330,491 | 1,207,298 | |||
Capital and surplus | 1,413,532 | 1,374,554 | 1,251,361 | |||
Reclassification to retained earnings from Tax Act | $ 2,500 | |||||
Percentage of revenues from contracts with customers | 2.00% | |||||
Agents' commissions | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Policy acquisition costs deferred: | 75,899 | $ 95,088 | 112,048 | |||
Other | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Policy acquisition costs deferred: | 8,195 | 8,433 | 7,808 | |||
Prospective Unlocking Adjustments | ||||||
Movement in Deferred Sales Inducements [Roll Forward] | ||||||
Decrease in amortization during the year | $ (1,000) | |||||
Updating DPAC Future Gross Profit Projections | ||||||
Movement in Deferred Sales Inducements [Roll Forward] | ||||||
Decrease in amortization during the year | (2,100) | |||||
Minimum | ||||||
Movement in Deferred Sales Inducements [Roll Forward] | ||||||
Interest rate range to calculate future mortality | 3.25% | |||||
Maximum | ||||||
Movement in Deferred Sales Inducements [Roll Forward] | ||||||
Interest rate range to calculate future mortality | 8.00% | |||||
Domestic Life Insurance | Reducing Interest Rate Credit Spreads | ||||||
Movement in Deferred Sales Inducements [Roll Forward] | ||||||
Increase in amortization during the year | 800 | |||||
Domestic Life Insurance | Favorable Mortality | ||||||
Movement in Deferred Sales Inducements [Roll Forward] | ||||||
Decrease in amortization during the year | (8,200) | |||||
International Life Insurance | Favorable Mortality, Improved Lapse Rates, Interest Rate Clawback Provision, and Reducing Interest Crediting Rate Spreads | ||||||
Movement in Deferred Sales Inducements [Roll Forward] | ||||||
Decrease in amortization during the year | (27,700) | |||||
International Life Insurance | Favorable Mortality, Increased Cost of Insurance Charges and Higher Laspe Rates | ||||||
Movement in Deferred Sales Inducements [Roll Forward] | ||||||
Decrease in amortization during the year | (7,300) | |||||
Annuities | Updating Surrender and Annuitization Rates, Reducing Interest Crediting Rate Spread and Adjusting Withdrawl Benefit Assumptions | ||||||
Movement in Deferred Sales Inducements [Roll Forward] | ||||||
Increase in amortization during the year | 15,100 | |||||
Annuities | Updating Surrender And Annuitization Rates on Index | ||||||
Movement in Deferred Sales Inducements [Roll Forward] | ||||||
Increase in amortization during the year | $ 3,700 | |||||
Options Held | ||||||
Schedule of Deferred Acquisition Costs [Line Items] | ||||||
Unrealized gains (losses) on derivatives | $ (72,300) | $ 119,400 | ||||
Deferred Indexed Annuity | Mortality and Withdrawal Benefit Election Rate | ||||||
Movement in Deferred Sales Inducements [Roll Forward] | ||||||
Decrease in amortization during the year | (6,200) | |||||
Deferred Non-Indexed Annuity | Mortality, Surrender and Annuitization Rates and Portfolio Investment Yield | ||||||
Movement in Deferred Sales Inducements [Roll Forward] | ||||||
Increase in amortization during the year | 4,000 | |||||
Universal Life Products | Mortality, Extended Death Benefit Reserves and Portfolio Investment Yield | ||||||
Movement in Deferred Sales Inducements [Roll Forward] | ||||||
Increase in amortization during the year | $ 1,200 | |||||
Retained earnings | ||||||
Statutory Accounting Practices | ||||||
Reclassification adjustment from adoption of accounting standard update | $ 4,414 | $ (2,531) | $ 0 | |||
Accounting Standards Update 2016-01 | Retained earnings | ||||||
Statutory Accounting Practices | ||||||
Reclassification adjustment from adoption of accounting standard update | 4,400 | |||||
Accounting Standards Update 2016-01 | Accumulated other comprehensive income (loss) | ||||||
Statutory Accounting Practices | ||||||
Reclassification adjustment from adoption of accounting standard update | $ (4,400) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Other net investment gains (losses) | $ 8,423 | $ 14,875 | $ 13,070 | ||||||||
Earnings before Federal income taxes | 141,507 | 144,555 | 152,862 | ||||||||
Federal income taxes | 24,749 | 34,134 | 51,970 | ||||||||
Net earnings | $ 21,776 | $ 35,641 | $ 32,466 | $ 26,875 | $ 39,587 | $ 21,813 | $ 25,483 | $ 23,538 | 116,758 | 110,421 | 100,892 |
Accumulated other comprehensive income (loss) | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Other net investment gains (losses) | 3,441 | 5,348 | 3,316 | ||||||||
Net OTTI losses recognized in earnings | 0 | (112) | 0 | ||||||||
Earnings before Federal income taxes | 3,441 | 5,236 | 3,316 | ||||||||
Federal income taxes | 723 | 1,833 | 1,161 | ||||||||
Net earnings | $ 2,718 | $ 3,403 | $ 2,155 |
Deposit with Regulatory Authori
Deposit with Regulatory Authorities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Deposit with Regulatory Authorities [Line Items] | ||
Assets on deposit with state and other regulatory authorities | $ 15,753 | $ 15,756 |
Debt securities held to maturity | ||
Schedule of Deposit with Regulatory Authorities [Line Items] | ||
Assets on deposit with state and other regulatory authorities | 14,708 | 14,596 |
Debt securities available for sale | ||
Schedule of Deposit with Regulatory Authorities [Line Items] | ||
Assets on deposit with state and other regulatory authorities | 570 | 685 |
Short-term investments | ||
Schedule of Deposit with Regulatory Authorities [Line Items] | ||
Assets on deposit with state and other regulatory authorities | $ 475 | $ 475 |
Investments (Components of Inve
Investments (Components of Investment Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Total investment income | $ 350,430 | $ 660,955 | $ 468,766 |
Less investment expenses | 1,353 | 1,270 | 1,092 |
Net investment income | 349,077 | 659,685 | 467,674 |
Debt and equity securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 399,645 | 409,401 | 416,638 |
Mortgage loans | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 12,066 | 11,045 | 7,964 |
Policy loans | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 3,185 | 3,485 | 3,700 |
Derivative gains (losses) | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Derivative gains (losses) | (80,004) | 222,875 | 28,364 |
Short term investments | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 2,249 | 1,012 | 668 |
Other investment income | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | $ 13,289 | $ 13,137 | $ 11,432 |
Investments (Mortgage Loans) (D
Investments (Mortgage Loans) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, amount | $ 203,855,000 | $ 208,899,000 | |
Allowance for possible losses, amount | (675,000) | (650,000) | |
Totals, amount | $ 203,180,000 | $ 208,249,000 | |
Mortgage loans, percentage | 100.00% | 100.00% | |
Allowance for possible losses, percentage | (0.30%) | (0.30%) | |
Totals, percentage | 99.70% | 99.70% | |
Less than 50% | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, amount | $ 66,371,000 | $ 82,224,000 | |
Mortgage loans, percentage | 32.60% | 39.40% | |
50% to 60% | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, amount | $ 22,610,000 | $ 27,395,000 | |
Mortgage loans, percentage | 11.10% | 13.10% | |
60% to 70% | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, amount | $ 102,857,000 | $ 86,849,000 | |
Mortgage loans, percentage | 50.40% | 41.60% | |
70% to 80% | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, amount | $ 6,642,000 | $ 0 | |
Mortgage loans, percentage | 3.30% | 0.00% | |
80% to 90% | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, amount | $ 5,375,000 | $ 6,929,000 | |
Mortgage loans, percentage | 2.60% | 3.30% | |
Greater than 90% | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, amount | $ 0 | $ 5,502,000 | |
Mortgage loans, percentage | 0.00% | 2.60% | |
Retail | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, amount | $ 96,075,000 | $ 87,805,000 | |
Mortgage loans, percentage | 47.10% | 42.00% | |
Office | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, amount | $ 71,194,000 | $ 74,301,000 | |
Mortgage loans, percentage | 34.90% | 35.60% | |
Land/Lots | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, amount | $ 3,498,000 | $ 10,563,000 | |
Mortgage loans, percentage | 1.70% | 5.10% | |
Hotel | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, amount | $ 14,454,000 | $ 13,782,000 | |
Mortgage loans, percentage | 7.10% | 6.60% | |
All other | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, amount | $ 18,634,000 | $ 22,448,000 | |
Mortgage loans, percentage | 9.20% | 10.70% | |
West South Central | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, amount | $ 116,205,000 | $ 119,794,000 | |
Mortgage loans, percentage | 57.00% | 57.30% | |
East North Central | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, amount | $ 20,944,000 | $ 30,876,000 | |
Mortgage loans, percentage | 10.30% | 14.80% | |
South Atlantic | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, amount | $ 29,829,000 | $ 19,155,000 | |
Mortgage loans, percentage | 14.60% | 9.20% | |
East South Central | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, amount | $ 13,801,000 | $ 14,273,000 | |
Mortgage loans, percentage | 6.80% | 6.80% | |
West North Central | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, amount | $ 12,751,000 | $ 12,967,000 | |
Mortgage loans, percentage | 6.30% | 6.20% | |
Pacific | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, amount | $ 6,626,000 | $ 8,014,000 | |
Mortgage loans, percentage | 3.20% | 3.80% | |
Middle Atlantic | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, amount | $ 2,138,000 | $ 2,215,000 | |
Mortgage loans, percentage | 1.00% | 1.10% | |
Mountain | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, amount | $ 1,561,000 | $ 1,605,000 | |
Mortgage loans, percentage | 0.80% | 0.80% | |
Mortgage loans | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Impairment charges | $ 0 | $ 0 | $ 0 |
Investments (Mortgage Loan Allo
Investments (Mortgage Loan Allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of period | $ 650 | $ 650 |
Provision | 25 | 0 |
Releases | 0 | 0 |
Balance, end of period | $ 675 | $ 650 |
Investments (Contractual Maturi
Investments (Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Principal Balance by Contractual Maturity, Amount | ||
Due in one year or less | $ 371,423 | |
Due after one year through five years | 2,885,587 | |
Due after five years through ten years | 2,486,014 | |
Totals | 7,285,254 | $ 7,247,024 |
Commercial Mortgage Loans | ||
Principal Balance by Contractual Maturity, Amount | ||
Due in one year or less | 23,839 | 22,966 |
Due after one year through five years | 39,391 | 41,248 |
Due after five years through ten years | 134,574 | 119,966 |
Due after ten years through fifteen years | 6,642 | 25,429 |
Totals | $ 204,446 | $ 209,609 |
Principal Balance by Contractual Maturity, Percentage | ||
Due in one year or less (in percentage) | 11.70% | 11.00% |
Due after one year through five years (in percentage) | 19.30% | 19.70% |
Due after five years through ten years (in percentage) | 65.80% | 57.20% |
Due after ten years through fifteen years (in percentage) | 3.20% | 12.10% |
Totals (in percentage) | 100.00% | 100.00% |
Investments (Securities Held to
Investments (Securities Held to Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Totals | $ 7,285,254 | $ 7,247,024 |
Gross Unrealized Gains | 57,319 | 202,170 |
Gross Unrealized Losses | (114,305) | (15,090) |
Fair Value | 7,228,268 | 7,434,104 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 2,833,188 | 456,365 |
Less than 12 Months, Unrealized Losses | (67,652) | (2,459) |
12 Months or Greater, Fair Value | 1,073,028 | 662,950 |
12 Months or Greater, Unrealized Losses | (46,653) | (12,631) |
Total, Fair Value | 3,906,216 | 1,119,315 |
Gross Unrealized Losses | (114,305) | (15,090) |
U.S. Treasury | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Totals | 1,341 | 1,337 |
Gross Unrealized Gains | 116 | 177 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1,457 | 1,514 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Gross Unrealized Losses | 0 | 0 |
States and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Totals | 457,404 | 467,437 |
Gross Unrealized Gains | 9,764 | 21,907 |
Gross Unrealized Losses | (2,376) | (100) |
Fair Value | 464,792 | 489,244 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 88,253 | 6,308 |
Less than 12 Months, Unrealized Losses | (2,124) | (14) |
12 Months or Greater, Fair Value | 10,645 | 4,869 |
12 Months or Greater, Unrealized Losses | (252) | (86) |
Total, Fair Value | 98,898 | 11,177 |
Gross Unrealized Losses | (2,376) | (100) |
Public utilities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Totals | 930,629 | 1,062,545 |
Gross Unrealized Gains | 5,928 | 30,527 |
Gross Unrealized Losses | (12,944) | (894) |
Fair Value | 923,613 | 1,092,178 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 396,980 | 68,368 |
Less than 12 Months, Unrealized Losses | (8,371) | (407) |
12 Months or Greater, Fair Value | 98,632 | 34,091 |
12 Months or Greater, Unrealized Losses | (4,573) | (487) |
Total, Fair Value | 495,612 | 102,459 |
Gross Unrealized Losses | (12,944) | (894) |
Corporate | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Totals | 4,715,775 | 4,430,099 |
Gross Unrealized Gains | 27,652 | 121,978 |
Gross Unrealized Losses | (87,043) | (7,876) |
Fair Value | 4,656,384 | 4,544,201 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 2,144,969 | 248,844 |
Less than 12 Months, Unrealized Losses | (55,125) | (1,296) |
12 Months or Greater, Fair Value | 650,401 | 431,591 |
12 Months or Greater, Unrealized Losses | (31,918) | (6,580) |
Total, Fair Value | 2,795,370 | 680,435 |
Gross Unrealized Losses | (87,043) | (7,876) |
Residential mortgage-backed | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Totals | 1,176,216 | 1,280,307 |
Gross Unrealized Gains | 13,771 | 27,445 |
Gross Unrealized Losses | (11,932) | (6,216) |
Fair Value | 1,178,055 | 1,301,536 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 202,986 | 130,015 |
Less than 12 Months, Unrealized Losses | (2,032) | (738) |
12 Months or Greater, Fair Value | 311,374 | 192,399 |
12 Months or Greater, Unrealized Losses | (9,900) | (5,478) |
Total, Fair Value | 514,360 | 322,414 |
Gross Unrealized Losses | (11,932) | (6,216) |
Home equity | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Totals | 3,193 | 4,262 |
Gross Unrealized Gains | 47 | 57 |
Gross Unrealized Losses | (10) | (4) |
Fair Value | 3,230 | 4,315 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 0 | 2,830 |
Less than 12 Months, Unrealized Losses | 0 | (4) |
12 Months or Greater, Fair Value | 1,976 | 0 |
12 Months or Greater, Unrealized Losses | (10) | 0 |
Total, Fair Value | 1,976 | 2,830 |
Gross Unrealized Losses | (10) | (4) |
Manufactured housing | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Totals | 696 | 1,037 |
Gross Unrealized Gains | 41 | 79 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 737 | 1,116 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Gross Unrealized Losses | $ 0 | $ 0 |
Investments (Securities Availab
Investments (Securities Available for Sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt securities: | ||
Total | $ 3,008,624 | $ 2,964,510 |
Debt securities, available for sale | 2,946,059 | 3,041,131 |
Equity securities | ||
Amortized Cost, Equity securities | 12,890 | |
Gross Unrealized Gains, Equity securities | 5,708 | |
Gross Unrealized Losses, Equity securities | (120) | |
Fair Value, Equity securities | 18,478 | |
Amortized Cost | 2,977,400 | |
Gross Unrealized Gains | 93,154 | |
Gross Unrealized Losses | (10,945) | |
Fair Value | 3,059,609 | |
Fair Value | ||
Less than 12 Months | 1,508,422 | |
12 Months or Greater | 443,676 | |
Total | 1,952,098 | |
Unrealized Losses | ||
Less than 12 Months | (45,096) | |
12 Months or Greater | (35,147) | |
Total | (80,243) | |
Fair Value [Abstract] | ||
Less than 12 Months | 298,219 | |
12 Months or Greater | 206,345 | |
Total | 504,564 | |
Unrealized Losses [Abstract] | ||
Less than 12 Months | (1,254) | |
12 Months or Greater | (9,691) | |
Total | (10,945) | |
Debt securities | ||
Debt securities: | ||
Total | 3,008,624 | 2,964,510 |
Gross Unrealized Gains, Debt securities | 17,678 | 87,446 |
Gross Unrealized Losses, Debt securities | (80,243) | (10,825) |
Debt securities, available for sale | 2,946,059 | 3,041,131 |
Fair Value [Abstract] | ||
Less than 12 Months | 297,930 | |
12 Months or Greater | 205,099 | |
Total | 503,029 | |
Unrealized Losses [Abstract] | ||
Less than 12 Months | (1,177) | |
12 Months or Greater | (9,648) | |
Total | (10,825) | |
States and political subdivisions | ||
Debt securities: | ||
Total | 570 | 575 |
Gross Unrealized Gains, Debt securities | 0 | 0 |
Gross Unrealized Losses, Debt securities | (4) | (29) |
Debt securities, available for sale | 566 | 546 |
Fair Value | ||
Less than 12 Months | 566 | |
12 Months or Greater | 0 | |
Total | 566 | |
Unrealized Losses | ||
Less than 12 Months | (4) | |
12 Months or Greater | 0 | |
Total | (4) | |
Fair Value [Abstract] | ||
Less than 12 Months | 0 | |
12 Months or Greater | 546 | |
Total | 546 | |
Unrealized Losses [Abstract] | ||
Less than 12 Months | (29) | |
12 Months or Greater | 0 | |
Total | (29) | |
Foreign governments | ||
Debt securities: | ||
Total | 9,974 | 9,964 |
Gross Unrealized Gains, Debt securities | 30 | 326 |
Gross Unrealized Losses, Debt securities | 0 | 0 |
Debt securities, available for sale | 10,004 | 10,290 |
Public utilities | ||
Debt securities: | ||
Total | 82,943 | 83,466 |
Gross Unrealized Gains, Debt securities | 1,045 | 3,640 |
Gross Unrealized Losses, Debt securities | (517) | 0 |
Debt securities, available for sale | 83,471 | 87,106 |
Fair Value | ||
Less than 12 Months | 38,903 | |
12 Months or Greater | 0 | |
Total | 38,903 | |
Unrealized Losses | ||
Less than 12 Months | (517) | |
12 Months or Greater | 0 | |
Total | (517) | |
Corporate | ||
Debt securities: | ||
Total | 2,893,221 | 2,842,381 |
Gross Unrealized Gains, Debt securities | 15,473 | 81,737 |
Gross Unrealized Losses, Debt securities | (79,638) | (10,744) |
Debt securities, available for sale | 2,829,056 | 2,913,374 |
Fair Value | ||
Less than 12 Months | 1,468,953 | |
12 Months or Greater | 442,798 | |
Total | 1,911,751 | |
Unrealized Losses | ||
Less than 12 Months | (44,575) | |
12 Months or Greater | (35,063) | |
Total | (79,638) | |
Fair Value [Abstract] | ||
Less than 12 Months | 296,845 | |
12 Months or Greater | 201,575 | |
Total | 498,420 | |
Unrealized Losses [Abstract] | ||
Less than 12 Months | (1,134) | |
12 Months or Greater | (9,610) | |
Total | (10,744) | |
Residential mortgage-backed | ||
Debt securities: | ||
Total | 15,947 | 20,246 |
Gross Unrealized Gains, Debt securities | 937 | 1,376 |
Gross Unrealized Losses, Debt securities | (84) | (52) |
Debt securities, available for sale | 16,800 | 21,570 |
Fair Value | ||
Less than 12 Months | 0 | |
12 Months or Greater | 878 | |
Total | 878 | |
Unrealized Losses | ||
Less than 12 Months | 0 | |
12 Months or Greater | (84) | |
Total | (84) | |
Fair Value [Abstract] | ||
Less than 12 Months | 1,085 | |
12 Months or Greater | 1,325 | |
Total | 2,410 | |
Unrealized Losses [Abstract] | ||
Less than 12 Months | (14) | |
12 Months or Greater | (38) | |
Total | (52) | |
Home equity | ||
Debt securities: | ||
Total | 5,969 | 7,878 |
Gross Unrealized Gains, Debt securities | 193 | 367 |
Gross Unrealized Losses, Debt securities | 0 | 0 |
Debt securities, available for sale | 6,162 | 8,245 |
Fair Value [Abstract] | ||
Less than 12 Months | 0 | |
12 Months or Greater | 1,653 | |
Total | 1,653 | |
Unrealized Losses [Abstract] | ||
Less than 12 Months | 0 | |
12 Months or Greater | 0 | |
Total | 0 | |
Manufactured housing | ||
Debt securities: | ||
Total | 0 | 0 |
Gross Unrealized Gains, Debt securities | 0 | 0 |
Gross Unrealized Losses, Debt securities | 0 | 0 |
Debt securities, available for sale | $ 0 | 0 |
Equity securities | ||
Fair Value [Abstract] | ||
Less than 12 Months | 289 | |
12 Months or Greater | 1,246 | |
Total | 1,535 | |
Unrealized Losses [Abstract] | ||
Less than 12 Months | (77) | |
12 Months or Greater | (43) | |
Total | $ (120) |
Investments (Unrealized Losses)
Investments (Unrealized Losses) (Details) - Debt securities | Dec. 31, 2018security |
Available-for-Sale Securities and Held-to-Maturity Securities [Line Items] | |
Number of securities with gross unrealized losses | 653 |
Gross unrealized losses, percentage of total debt (in percentage) | 50.60% |
Gross unrealized losses, market value as a percent of amortized cost (in percentage) | 96.80% |
Number of securities with gross unrealized losses with maturities of 12 months or greater | 195 |
Gross unrealized losses, number of securities with maturities of 12 months or greater (in percentage) | 29.90% |
External Credit Rating, Investment Grade | |
Available-for-Sale Securities and Held-to-Maturity Securities [Line Items] | |
Gross unrealized losses, number of securities rated investment grade | 644 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Debt Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities Available for Sale, Amortized Cost | ||
Due in 1 year or less | $ 159,967 | |
Due after 1 year through 5 years | 1,076,437 | |
Due after 5 years through 10 years | 1,697,093 | |
Due after 10 years | 53,211 | |
Amortized Cost, Single Maturity Date Securities | 2,986,708 | |
Mortgage and asset-backed securities | 21,916 | |
Total | 3,008,624 | $ 2,964,510 |
Debt Securities Available for Sale, Fair Value | ||
Due in 1 year or less | 162,279 | |
Due after 1 year through 5 years | 1,073,423 | |
Due after 5 years through 10 years | 1,636,466 | |
Due after 10 years | 50,929 | |
Fair Value, Single Maturity Date Securities | 2,923,097 | |
Mortgage and asset-backed securities | 22,962 | |
Total | 2,946,059 | 3,041,131 |
Debt Securities Held to Maturity, Amortized Cost | ||
Due in 1 year or less | 371,423 | |
Due after 1 year through 5 years | 2,885,587 | |
Due after 5 years through 10 years | 2,486,014 | |
Due after 10 years | 362,125 | |
Amortized Cost, Single Maturity Date Securities | 6,105,149 | |
Mortgage and asset-backed securities | 1,180,105 | |
Totals | 7,285,254 | 7,247,024 |
Debt Securities Held to Maturity, Fair Value | ||
Due in 1 year or less | 375,021 | |
Due after 1 year through 5 years | 2,889,770 | |
Due after 5 years through 10 years | 2,418,209 | |
Due after 10 years | 363,246 | |
Fair Value, Single Maturity Date Securities | 6,046,246 | |
Mortgage and asset-backed securities | 1,182,022 | |
Total | $ 7,228,268 | $ 7,434,104 |
Investments (Realized Gains (Lo
Investments (Realized Gains (Losses)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Available for sale debt securities: | |||
Realized gains on disposal | $ 3,447 | $ 5,208 | $ 2,644 |
Realized losses on disposal | (6) | (7) | (29) |
Held to maturity debt securities: | |||
Equity securities realized gains | 0 | 147 | 702 |
Real estate | 1,799 | 2,657 | 2,950 |
Mortgage loans | (25) | 0 | 0 |
Other | 0 | 0 | 0 |
Other net investment gains (losses) | 8,423 | 14,875 | 13,070 |
Debt Securities | |||
Held to maturity debt securities: | |||
Realized gains on redemption | 3,208 | 6,944 | 6,940 |
Realized losses on redemption | $ 0 | $ (74) | $ (137) |
Investments (Net Impairment Los
Investments (Net Impairment Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investment [Line Items] | |||
Total other-than-temporary impairment (“OTTI”) (losses) recoveries | $ 12 | $ 487 | $ 110 |
Net OTTI losses recognized in earnings | 0 | 112 | 0 |
Debt Securities | |||
Investment [Line Items] | |||
Total other-than-temporary impairment (“OTTI”) (losses) recoveries | 12 | 599 | 110 |
Portion recognized in comprehensive income | (12) | (599) | (110) |
Net OTTI losses recognized in earnings | 0 | 0 | 0 |
Equity securities | |||
Investment [Line Items] | |||
Net OTTI losses recognized in earnings | $ 0 | $ 112 | $ 0 |
Investments (OTTI, Credit Losse
Investments (OTTI, Credit Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
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 | $ 627 | $ 1,440 |
Reductions for securities disposed during current period | 0 | (813) |
Additions for OTTI where credit losses have been previously recognized | 0 | 0 |
Ending balance, cumulative credit losses related to other-than-temporary impairments | $ 627 | $ 627 |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gain (Loss) on Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gross unrealized gains | $ 17,678 | $ 93,034 |
Gross unrealized losses | (80,263) | (10,856) |
Deferred policy acquisition costs and sales inducements | 24,237 | (39,579) |
Deferred Federal income tax expense | 8,053 | (8,946) |
Adjustments for deferred expense, deferred policy acquisition and sales inducement cost | (30,295) | 33,653 |
Net unrealized gains related to securities transferred to held to maturity | 0 | 0 |
Net unrealized gains (losses) on investment securities | $ (30,295) | $ 33,653 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)property | Feb. 20, 2019USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||||
Loans originated during the year | $ 29,900 | $ 59,400 | ||
Real estate investments | 56,851 | 51,828 | ||
Realized gains (losses) on investments | 8,423 | 14,763 | $ 13,070 | |
Number of real estate properties | property | 2 | |||
Payments to acquire real estate | $ 16,800 | |||
OTTI- recoveries | 0 | 600 | 100 | |
Real Estate | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Real estate investments | 35,700 | 37,400 | ||
Operating income recognized on real estate investment properties | 2,200 | 2,900 | 2,600 | |
Realized gains (losses) on investments | 1,800 | 2,700 | 2,900 | |
Other-than Temporary Impairment Write-down on Investments | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Realized gains (losses) on investments | 0 | |||
Debt Securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Realized gains (losses) on investments | 8,400 | 14,800 | 13,100 | |
External Credit Rating, Non Investment Grade | Debt Securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt securities below investment grade | $ 94,200 | $ 101,300 | ||
Debt securities below investment grade, percentage of total invested assets | 0.90% | 0.90% | ||
Maximum | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Loan to value ratio, threshold (in percentage) | 90.00% | |||
Non- Income Producing | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Real estate investment | $ 5,200 | $ 100 | $ 200 | |
Subsequent Event | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Real estate held-for-sale | $ 8,600 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reinsurance Disclosures [Abstract] | |||
Limit for reinsuring risk | $ 500,000 | ||
Total life insurance in force | 18,600,000,000 | $ 19,700,000,000 | |
Ceded premiums | 4,000,000,000 | 4,400,000,000 | |
Reinsurance receivable | 1,100,000 | 1,300,000 | |
Reinsurance premiums | 20,760,000 | 20,312,000 | $ 19,675,000 |
Reinsurance recoveries | $ 31,200,000 | $ 7,500,000 | $ 12,000,000 |
Federal Income Taxes (Component
Federal Income Taxes (Components of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Taxes (benefits) on earnings from continuing operations | |||
Current | $ (1,697) | $ 74,361 | $ 41,544 |
Deferred | 26,446 | (23,129) | 10,426 |
Remeasurement of deferred taxes due to Tax Act | 0 | (17,098) | 0 |
Taxes on earnings from continuing operations | 24,749 | 34,134 | 51,970 |
Taxes (benefits) on components of stockholders' equity: | (12,462) | 646 | 5,507 |
Total Federal income taxes (benefit) | 12,242 | 34,780 | 57,202 |
Net unrealized gains and losses on securities available for sale | |||
Taxes (benefits) on earnings from continuing operations | |||
Taxes (benefits) on components of stockholders' equity: | (15,870) | 2,736 | 5,382 |
Foreign currency translation adjustments | |||
Taxes (benefits) on earnings from continuing operations | |||
Taxes (benefits) on components of stockholders' equity: | 360 | (5) | (88) |
Change in benefit plan liability | |||
Taxes (benefits) on earnings from continuing operations | |||
Taxes (benefits) on components of stockholders' equity: | $ 3,003 | $ (2,085) | $ (62) |
Federal Income Taxes (Reconcili
Federal Income Taxes (Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Reconciliation [Abstract] | |||
Income tax expense at statutory rate (21% in 2018 and 35% in 2017 and 2016) | $ 29,716 | $ 50,594 | $ 53,502 |
Dividend received deduction | (820) | (1,099) | (850) |
Tax exempt interest | (1,416) | (2,276) | (2,193) |
Non deductible salary expense | 54 | 0 | 0 |
Adjustments pertaining to prior tax years | (3,071) | 895 | 1,076 |
Nondeductible insurance | 96 | 160 | 160 |
Nondeductible expenses | 198 | 178 | 588 |
Remeasurement of deferred taxes due to Tax Act | 0 | (17,098) | 0 |
Excess premium liability | 0 | 2,870 | 0 |
Other, net | (8) | (90) | (313) |
Taxes on earnings from continuing operations | $ 24,749 | $ 34,134 | $ 51,970 |
Federal Income Taxes (Deferred
Federal Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Future policy benefits, excess of financial accounting liabilities over tax liabilities | $ 189,100 | $ 162,424 |
Investment securities write-downs for financial accounting purposes | 311 | 196 |
Benefit plan liabilities | 7,444 | 10,355 |
Real estate, principally due to adjustments for financial accounting purposes | 16 | 0 |
Accrued operating expenses recorded for financial accounting purposes not currently tax deductible | 4,426 | 6,222 |
Tax reform reserve adjustment | 0 | 83,935 |
Accrued and unearned investment income recognized for tax purposes and deferred for financial accounting purposes | 109 | 265 |
Net unrealized losses on debt securities available for sale | 7,390 | 0 |
Other | 74 | 94 |
Total gross deferred tax assets | 208,870 | 263,491 |
Deferred tax liabilities: | ||
Deferred policy acquisition and sales inducement costs, principally expensed for tax purposes | (170,940) | (180,780) |
Tax reform reserve adjustment | (61,170) | (83,935) |
Debt securities, principally due to deferred market discount for tax | (7,370) | (7,526) |
Real estate, principally due to adjustments for financial accounting purposes | 0 | (5) |
Net unrealized gains on securities available for sale | 0 | (8,945) |
Foreign currency translation adjustments | (1,217) | (857) |
Fixed assets, due to different depreciation bases | (7,546) | (6,853) |
Other | (11) | 2 |
Total gross deferred tax liabilities | (248,254) | (288,899) |
Net deferred tax liabilities | $ (39,384) | $ (25,408) |
Federal Income Taxes (Narrative
Federal Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Tax benefit remeasurement of deferred tax liability | $ 0 | $ 17,098 | $ 0 | |
Reclassification to retained earnings from Tax Act | 2,500 | |||
Remeasurement of deferred taxes due to Tax Act | $ (500) | |||
Guaranty association assessments | 8,200 | |||
Deferred tax liability from Tax Act | 83,900 | |||
Deferred tax liability from Tax Act | $ 69,900 | |||
Adjustment to tax reserves | $ 332,900 | |||
Annual adjustment to tax reserves | 41,600 | |||
Annual income tax expense from adjustment to tax reserves | $ 8,700 |
Information Regarding Control_2
Information Regarding Controlling Stockholder Narrative (Details) - Chairman of the Board of Directors and Chief Executive Officer | Dec. 31, 2018 |
Common Class A | |
Related Party Transaction [Line Items] | |
Ownership in the company | 99.00% |
Common Class B | |
Related Party Transaction [Line Items] | |
Ownership in the company | 33.70% |
Pension and Other Postretirem_3
Pension and Other Postretirement Plans (Obligations and Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Pension Plans | |||
Change in projected benefit obligations: | |||
Projected benefit obligations at beginning of year | $ 24,659 | $ 24,553 | |
Service cost | 111 | 106 | $ 105 |
Interest cost | 899 | 957 | 1,000 |
Plan amendments | (1,396) | 0 | |
Actuarial (gain) loss | 494 | 558 | |
Benefits paid | (2,829) | (1,515) | |
Projected benefit obligations at end of year | 21,938 | 24,659 | 24,553 |
Change in plan assets: | |||
Fair value at beginning of year | 19,312 | 18,279 | |
Actual return on plan assets | (414) | 2,442 | |
Contributions | 100 | 106 | |
Benefits paid | (2,829) | (1,515) | |
Fair value at end of year | 16,169 | 19,312 | 18,279 |
Funded status at end of year | (5,769) | (5,347) | |
Chairman and President Non-Qualified Defined Benefit Plans | |||
Change in projected benefit obligations: | |||
Projected benefit obligations at beginning of year | 36,914 | 26,232 | |
Service cost | 361 | 818 | 438 |
Interest cost | 852 | 1,387 | 1,058 |
Actuarial (gain) loss | 13,870 | (10,459) | |
Benefits paid | (1,982) | (1,982) | |
Projected benefit obligations at end of year | 22,275 | 36,914 | 26,232 |
Change in plan assets: | |||
Fair value at beginning of year | 0 | 0 | |
Contributions | 1,982 | 1,982 | |
Benefits paid | (1,982) | (1,982) | |
Fair value at end of year | 0 | 0 | 0 |
Funded status at end of year | (22,275) | (36,914) | |
Defined Benefit Postretirement Healthcare Plans | |||
Change in projected benefit obligations: | |||
Projected benefit obligations at beginning of year | 3,774 | 3,366 | |
Interest cost | 158 | 139 | 121 |
Actuarial (gain) loss | (298) | (274) | |
Benefits paid | 0 | (5) | |
Projected benefit obligations at end of year | 4,230 | 3,774 | 3,366 |
Change in plan assets: | |||
Fair value at beginning of year | 0 | 0 | |
Contributions | 0 | 5 | |
Benefits paid | 0 | (5) | |
Fair value at end of year | 0 | 0 | $ 0 |
Funded status at end of year | $ (4,230) | $ (3,774) |
Pension and Other Postretirem_4
Pension and Other Postretirement Plans (Amounts Recognized in Financial Statements and Other Comprehensive Income) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Pension Plans | ||
Amount recognized in the Company's consolidated financial statements | ||
Assets | $ 0 | $ 0 |
Liabilities | (5,769,000) | (5,347,000) |
Net amount recognized | (5,769,000) | (5,347,000) |
Amount recognized in accumulated other comprehensive income | ||
Net loss | 8,435,000 | 8,147,000 |
Prior service cost | 0 | 0 |
Net amount recognized | 8,435,000 | 8,147,000 |
Chairman and President Non-Qualified Defined Benefit Plans | ||
Amount recognized in the Company's consolidated financial statements | ||
Assets | 0 | 0 |
Liabilities | (22,275,000) | (36,914,000) |
Net amount recognized | (22,275,000) | (36,914,000) |
Amount recognized in accumulated other comprehensive income | ||
Net loss | 4,475,000 | 19,049,000 |
Prior service cost | 522,000 | 582,000 |
Net amount recognized | 4,997,000 | 19,631,000 |
Defined Benefit Postretirement Healthcare Plans | ||
Amount recognized in the Company's consolidated financial statements | ||
Assets | 0 | 0 |
Liabilities | (4,230,000) | (3,774,000) |
Net amount recognized | (4,230,000) | (3,774,000) |
Amount recognized in accumulated other comprehensive income | ||
Net loss | 816,000 | 669,000 |
Prior service cost | 51,000 | 155,000 |
Net amount recognized | $ 867,000 | $ 824,000 |
Pension and Other Postretirem_5
Pension and Other Postretirement Plans (Components of Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Pension Plans | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Interest cost | $ 899 | $ 957 | $ 1,000 |
Service cost | 111 | 106 | 105 |
Expected return on plan assets | (1,300) | (1,227) | (1,215) |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net loss (gain) | 524 | 638 | 772 |
Net periodic benefit cost | 234 | 474 | 662 |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Net (gain) loss | 812 | (658) | |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net loss (gain) | (524) | (638) | (772) |
Total recognized in other comprehensive income | 288 | (1,296) | |
Total recognized in net periodic benefit cost and other comprehensive income | 522 | (822) | |
Chairman and President Non-Qualified Defined Benefit Plans | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Interest cost | 852 | 1,387 | 1,058 |
Service cost | 361 | 818 | 438 |
Amortization of prior service cost | 59 | 59 | 59 |
Amortization of net loss (gain) | 704 | 3,274 | 2,003 |
Net periodic benefit cost | 1,976 | 5,538 | 3,558 |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Net (gain) loss | (13,870) | 10,459 | |
Amortization of prior service cost | (59) | (59) | (59) |
Amortization of net loss (gain) | (704) | (3,274) | (2,003) |
Total recognized in other comprehensive income | (14,633) | 7,126 | |
Total recognized in net periodic benefit cost and other comprehensive income | (12,657) | 12,664 | |
Defined Benefit Postretirement Healthcare Plans | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Interest cost | 158 | 139 | 121 |
Amortization of prior service cost | 103 | 103 | 103 |
Amortization of net loss (gain) | 151 | 41 | 0 |
Net periodic benefit cost | 412 | 283 | 224 |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Net (gain) loss | 298 | 274 | |
Amortization of prior service cost | (103) | (103) | (103) |
Amortization of net loss (gain) | (151) | (41) | $ 0 |
Total recognized in other comprehensive income | 44 | 130 | |
Total recognized in net periodic benefit cost and other comprehensive income | $ 456 | $ 413 |
Pension and Other Postretirem_6
Pension and Other Postretirement Plans (Assumptions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Pension Plans | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate (in percentage) | 4.00% | 3.75% | |
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate (in percentage) | 3.75% | 4.00% | 4.00% |
Expected long-term return on plan assets (in percentage) | 7.00% | 7.00% | 7.00% |
Chairman and President Non-Qualified Defined Benefit Plans | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate (in percentage) | 4.00% | 3.75% | |
Rate of compensation increase (in percentage) | 8.00% | 8.00% | |
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate (in percentage) | 3.75% | 4.00% | 4.00% |
Rate of compensation increase (in percentage) | 8.00% | 8.00% | 8.00% |
Defined Benefit Postretirement Healthcare Plans | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate (in percentage) | 4.00% | 3.75% | |
Annual rate of increase in the per capita cost of covered health care benefits (in percentage) | 9.00% | ||
Decrease in annual rate of increase in the per capita cost of covered health care benefits (in percentage) | 0.50% | ||
Ultimate annual rate of increase in the per capita cost of covered health care benefits (in percentage) | 5.00% | ||
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | |||
Effect on total of service and interest cost components, 1% point increase | $ 24 | $ 22 | |
Effect on total of service and interest cost components, 1% point decrease | (24) | (21) | |
Effect on postretirement benefit obligation, 1% point increase | 630 | 607 | |
Effect on postretirement benefit obligation, 1% point decrease | $ (624) | $ (592) |
Pension and Other Postretirem_7
Pension and Other Postretirement Plans (Plan Assets) (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)investment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Defined Benefit Pension Plans | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 16,169,000 | $ 19,312,000 | $ 18,279,000 |
Plan assets | $ 0 | $ 0 | |
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations (in percentage) | 100.00% | 100.00% | 100.00% |
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Percentage pension assets not invested in cash or U.S. Government agencies (in percentage) | 99.00% | ||
Number of different investments | investment | 208 | ||
Acceptable range for each asset class (in percentage) | 2.60% | ||
Defined Benefit Pension Plans | Level 1 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 10,311,000 | $ 12,941,000 | |
Defined Benefit Pension Plans | Level 2 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 5,858,000 | 6,371,000 | |
Defined Benefit Pension Plans | Level 3 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans | Cash and cash equivalents | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 209,000 | $ 662,000 | |
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations (in percentage) | 1.00% | 3.00% | 7.00% |
Defined Benefit Pension Plans | Cash and cash equivalents | Level 1 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 209,000 | $ 662,000 | |
Defined Benefit Pension Plans | Cash and cash equivalents | Level 2 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans | Cash and cash equivalents | Level 3 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 0 | $ 0 | |
Defined Benefit Pension Plans | Equity securities | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations (in percentage) | 63.00% | 64.00% | 62.00% |
Defined Benefit Pension Plans | Domestic | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 9,909,000 | $ 11,885,000 | |
Defined Benefit Pension Plans | Domestic | Level 1 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 9,909,000 | 11,885,000 | |
Defined Benefit Pension Plans | Domestic | Level 2 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans | Domestic | Level 3 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans | International | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 193,000 | 394,000 | |
Defined Benefit Pension Plans | International | Level 1 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 193,000 | 394,000 | |
Defined Benefit Pension Plans | International | Level 2 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans | International | Level 3 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 0 | $ 0 | |
Defined Benefit Pension Plans | Debt securities: | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations (in percentage) | 36.00% | 33.00% | 31.00% |
Defined Benefit Pension Plans | Corporate bonds | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 5,858,000 | $ 6,371,000 | |
Defined Benefit Pension Plans | Corporate bonds | Level 1 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | ||
Defined Benefit Pension Plans | Corporate bonds | Level 2 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 5,858,000 | 6,371,000 | |
Defined Benefit Pension Plans | Corporate bonds | Level 3 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Chairman and President Non-Qualified Defined Benefit Plans | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | $ 0 |
Plan assets | $ 0 | $ 0 | |
Minimum | Cash and cash equivalents | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations (in percentage) | 0.00% | ||
Minimum | Equity securities | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations (in percentage) | 55.00% | ||
Minimum | Debt securities: | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations (in percentage) | 30.00% | ||
Maximum | Cash and cash equivalents | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations (in percentage) | 15.00% | ||
Maximum | Equity securities | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations (in percentage) | 70.00% | ||
Maximum | Debt securities: | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations (in percentage) | 40.00% |
Pension and Other Postretirem_8
Pension and Other Postretirement Plans (Future Pension Benefit Payments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Defined Benefit Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 1,482 |
2,020 | 1,472 |
2,021 | 1,455 |
2,022 | 1,415 |
2,023 | 1,372 |
2024-2028 | 6,561 |
Chairman and President Non-Qualified Defined Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 1,982 |
2,020 | 1,982 |
2,021 | 1,982 |
2,022 | 1,982 |
2,023 | 1,982 |
2024-2028 | 7,228 |
Defined Benefit Postretirement Healthcare Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 104 |
2,020 | 111 |
2,021 | 118 |
2,022 | 124 |
2,023 | 129 |
2024-2028 | $ 749 |
Pension and Other Postretirem_9
Pension and Other Postretirement Plans (Defined Contribution Pension Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Additional company's matching contribution | 4.00% | 4.00% | 4.00% |
Non-Qualified Contribution Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total company contribution, non-qualified deferred compensation | $ 127 | $ 119 | $ 95 |
United States | Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total company contribution, 401(k) plan | $ 615 | $ 549 | $ 421 |
Pension and Other Postretire_10
Pension and Other Postretirement Plans (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)benefit_plan | Dec. 31, 2017USD ($) | Dec. 31, 2007 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 21,900 | $ 24,700 | |
Average rate of return (in percentage) | 8.66% | ||
Average rate of return, inception to date (in percentage) | 6.90% | ||
Number of non-qualified defined benefit pension plan | benefit_plan | 3 | ||
Chairman and President Non-Qualified Defined Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 18,100 | $ 20,700 | |
Amortization of net loss | 500 | ||
Amortization of prior service cost | 59 | ||
Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Vesting percentage in accrued benefits from plan freeze (in percentage) | 100.00% | ||
Amortization of net loss | 600 | ||
Defined Benefit Postretirement Healthcare Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of net loss | 79 | ||
Amortization of prior service cost | $ 52 |
Pension and Other Postretire_11
Pension and Other Postretirement Plans (Contributions) (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution for next fiscal year | $ 644,000 |
Expected voluntary contribution for next fiscal year | $ 500,000 |
Defined Benefit Pension Plans | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Adjusted funding target attainment percentage (in percentage) | 80.00% |
Chairman and President Non-Qualified Defined Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution for next fiscal year | $ 2,000,000 |
Short-Term Borrowing (Details)
Short-Term Borrowing (Details) - USD ($) | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | |||
Collateral security deposit | 110.00% | ||
Amortized value of collateralized assets | $ 84,500,000 | ||
Fair value of assets | 86,600,000 | ||
MNB | |||
Short-term Debt [Line Items] | |||
Bank line of credit available to the company | 75,000,000 | $ 40,000,000 | |
Outstanding borrowings | $ 0 | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | Nov. 11, 2018USD ($) | Dec. 31, 2018USD ($)Annuity_Policy | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Loss Contingencies [Line Items] | |||||
Number of annuity policies | Annuity_Policy | 2 | ||||
Guaranty association assessments | $ 8,200,000 | ||||
Rental expense | $ 400,000 | 300,000 | $ 200,000 | ||
Present value of future payments capitalized | 1,600,000 | ||||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||||
2,019 | 359,000 | ||||
2,020 | 359,000 | ||||
2,021 | 358,000 | ||||
2,022 | 358,000 | ||||
Total minimum lease payments | 1,434,000 | ||||
Less: Interest | (117,000) | ||||
Present value of net minimum lease payments | 1,317,000 | ||||
Guaranty Association Assessments | |||||
Loss Contingencies [Line Items] | |||||
Guaranty association assessments | 100,000 | $ 300,000 | $ 300,000 | ||
New Loans | |||||
Loss Contingencies [Line Items] | |||||
Commitments to extend credit relating to mortgage loans | 13,500,000 | ||||
Existing Loans | |||||
Loss Contingencies [Line Items] | |||||
Commitments to extend credit relating to mortgage loans | 4,300,000 | ||||
Pending Litigation | Damaris Maldonado Vinas Et Al | |||||
Loss Contingencies [Line Items] | |||||
Guaranty association assessments | $ 2,900,000 | ||||
Pending Litigation | National Western Life Insurance Company and National Western Life Group, Inc. v. Ross Rankin Moody et. al | |||||
Loss Contingencies [Line Items] | |||||
Damages award to plaintiff | $ 1,314,053.73 |
Stockholders' Equity (Changes i
Stockholders' Equity (Changes in Common Stock Shares Outstanding) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Common stock shares outstanding: | |||
Total stockholders’ equity | $ 1,832,174 | $ 1,721,828 | |
Total stockholders’ equity | 1,900,777 | 1,832,174 | $ 1,721,828 |
Common Stock | |||
Common stock shares outstanding: | |||
Total stockholders’ equity | 3,636 | 3,636 | |
Shares exercised under stock option plan | 0 | 0 | 0 |
Total stockholders’ equity | $ 3,636 | $ 3,636 | $ 3,636 |
Stockholders' Equity (Dividend
Stockholders' Equity (Dividend Restrictions) (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 19, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||
Dividends payable | $ 6 | ||
Common Class A | |||
Class of Stock [Line Items] | |||
Common stock, dividends declared (in dollars per share) | $ 0.36 | ||
Common Class B | |||
Class of Stock [Line Items] | |||
Common stock, dividends declared (in dollars per share) | $ 0.18 | ||
Dividend Declared | |||
Class of Stock [Line Items] | |||
Dividends payable | $ 7 | ||
National Western Life Insurance Company | |||
Class of Stock [Line Items] | |||
Maximum dividend payment which may be paid without prior approval from Colorado Division of Insurance | $ 30.7 |
Stockholders' Equity (Share-Bas
Stockholders' Equity (Share-Based Payments - General Descriptions) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 15, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 20, 2008 | Jun. 25, 2004 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Capital and surplus | $ 1,413,532 | $ 1,374,554 | $ 1,251,361 | |||
Period in force (in days) | 90 days | |||||
Compensation cost, liability balance | $ 11,900 | 15,200 | ||||
Fair value of options vested | $ 3,100 | 2,700 | 1,500 | |||
Share price (in usd per share) | $ 300.70 | |||||
Pre-tax compensation cost (benefit) recognized | $ 1,400 | 5,000 | 7,900 | |||
Compensation cost (benefit), tax expense (benefit) | (300) | (1,800) | (2,800) | |||
Pre-tax compensation expense related to nonvested share-based awards not yet recognized | $ 7,100 | $ 7,800 | 2,300 | |||
Compensation cost related to nonvested options not yet recognized, weighted-average period of recognition (in years) | 1 year 7 months 6 days | |||||
Common Class A | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | ||||
Common Class B | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | ||||
Stock and Incentive Plan, 1995 Plan | Common Class A | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, par value (usd per share) | $ 1 | |||||
Share-based payments, number of shares authorized under plans | 300,000 | |||||
Stock and Incentive Plan, 2008 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Plan extension term | 10 years | |||||
Stock and Incentive Plan, 2008 Plan | Common Class A | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payments, number of shares authorized under plans | 300,000 | |||||
Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Requisite service period of awards (in years) | 1 year | |||||
Colorado Division of Insurance | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Current authorized control level RBC | $ 127,300 | |||||
Capital and surplus | $ 1,400,000 | |||||
Employee Stock Option and SARs Granted Before 2016 | Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual vesting (in percentage) | 20.00% | |||||
Requisite service period of awards (in years) | 3 years | |||||
Employee Stock Options and SARs | Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Requisite service period of awards (in years) | 1 year | |||||
SARs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Intrinsic value of options exercised | $ 4,700 | $ 1,800 | 3,600 | |||
Share-based compensation liabilities paid | $ 4,700 | $ 1,800 | $ 3,600 | |||
PSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-base payment, performance period (in years) | 3 years | |||||
Award vesting period (in years) | 3 years | |||||
RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual vesting (in percentage) | 100.00% | |||||
Share-based Compensation Award, Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual vesting (in percentage) | 33.30% | |||||
Share-based Compensation Award, Tranche One [Member] | Employee Stock Options and SARs | Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual vesting (in percentage) | 20.00% |
Stockholders' Equity (Share-B_2
Stockholders' Equity (Share-Based Payments - Options and Stock Appreciation Rights Outstanding) (Details) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Shares/Awards [Roll Forward] | |
Options Outstanding, Shares, Beginning Balance (in shares) | 18,018 |
Options Outstanding, Shares, Exercised (in shares) | (18,018) |
Options Outstanding, Shares, Forfeited (in shares) | 0 |
Options Outstanding, Shares, Granted (in shares) | 0 |
Options Outstanding, Shares, Expired (in shares) | 0 |
Options Outstanding, Shares, Ending Balance (in shares) | 0 |
Weighted-Average Exercise Price [Roll Forward] | |
Options Outstanding, Weighted-Average Exercise Price, Beginning Balance (usd per share) | $ / shares | $ 242.07 |
Options Outstanding, Weighted-Average Exercise Price, Exercised (usd per share) | $ / shares | 242.07 |
Options Outstanding, Weighted-Average Exercise Price, Forfeited (usd per share) | $ / shares | 0 |
Options Outstanding, Weighted-Average Exercise Price, Expired (usd per share) | $ / shares | 0 |
Options Outstanding, Weighted-Average Exercise Price, Granted (usd per share) | $ / shares | 0 |
Options Outstanding, Weighted-Average Exercise Price, Ending Balance (usd per share) | $ / shares | $ 0 |
Shares Available For Grant | |
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 |
Stockholders' Equity (Liabilit
Stockholders' Equity (Liability Awards) (Details) | 12 Months Ended |
Dec. 31, 2018shares | |
SARs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance (in shares) | 92,667 |
Exercised (in shares) | (14,034) |
Forfeited (in shares) | (1,780) |
Granted (in shares) | 12,590 |
Ending balance (in shares) | 89,443 |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance (in shares) | 14,052 |
Exercised (in shares) | 0 |
Forfeited (in shares) | 0 |
Granted (in shares) | 5,070 |
Ending balance (in shares) | 19,122 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance (in shares) | 11,721 |
Exercised (in shares) | (3,124) |
Forfeited (in shares) | (556) |
Granted (in shares) | 5,129 |
Ending balance (in shares) | 13,170 |
Stockholders' Equity (Share-B_3
Stockholders' Equity (Share-Based Payments - Exercise Range) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | 89,443 |
Options Exercisable (in shares) | 50,397 |
Number Outstanding, Aggregate intrinsic value | $ | $ 6,533 |
Options Exercisable, Aggregate intrinsic value | $ | $ 5,413 |
Share price (in usd per share) | $ / shares | $ 300.70 |
Stock Appreciation Rights (SARs) | 132.56 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | 19,568 |
Weighted-Average Remaining Contractual Life (in years) | 3 years |
Options Exercisable (in shares) | 19,568 |
Exercise Price (in usd per share) | $ / shares | $ 132.56 |
Stock Appreciation Rights (SARs) | 210.22 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | 25,000 |
Weighted-Average Remaining Contractual Life (in years) | 4 years 10 months 24 days |
Options Exercisable (in shares) | 16,400 |
Exercise Price (in usd per share) | $ / shares | $ 210.22 |
Stock Appreciation Rights (SARs) | 215.48 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | 11,649 |
Weighted-Average Remaining Contractual Life (in years) | 7 years 1 month 6 days |
Options Exercisable (in shares) | 7,589 |
Exercise Price (in usd per share) | $ / shares | $ 216.48 |
Stock Appreciation Rights (SARs) | 311.16 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | 10,427 |
Weighted-Average Remaining Contractual Life (in years) | 8 years 1 month 6 days |
Options Exercisable (in shares) | 3,444 |
Exercise Price (in usd per share) | $ / shares | $ 311.16 |
Stock Appreciation Rights (SARs) | 310.55 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | 203 |
Weighted-Average Remaining Contractual Life (in years) | 8 years 3 months 18 days |
Options Exercisable (in shares) | 67 |
Exercise Price (in usd per share) | $ / shares | $ 310.55 |
Stock Appreciation Rights (SARs) | 334.34 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | 10,006 |
Weighted-Average Remaining Contractual Life (in years) | 9 years |
Options Exercisable (in shares) | 3,329 |
Exercise Price (in usd per share) | $ / shares | $ 334.34 |
Stock Appreciation Rights (SARs) | 303.77 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | 12,590 |
Weighted-Average Remaining Contractual Life (in years) | 10 years |
Options Exercisable (in shares) | 0 |
Exercise Price (in usd per share) | $ / shares | $ 303.77 |
Stockholders' Equity (Share-B_4
Stockholders' Equity (Share-Based Payments - Black Scholes Option Pricing Model Assumptions) (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield (in percentage) | 0.12% | 0.11% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term of SARs/options | 3 years | 3 months 18 days |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term of SARs/options | 10 years | 10 years |
Weighted Average | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, weighted-average (in percentage) | 22.14% | 21.55% |
Risk-free rate, weighted-average (in percentage) | 2.58% | 1.82% |
Stockholders' Equity (Awards to
Stockholders' Equity (Awards to Officers) (Details) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Officers | SARs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 12,590 | 22,184 |
Officers | RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 3,149 | 5,341 |
Officers | PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 5,070 | 8,736 |
Directors | SARs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 0 | 0 |
Directors | RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 1,980 | 3,290 |
Directors | PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 0 | 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Net earnings | $ 21,776 | $ 35,641 | $ 32,466 | $ 26,875 | $ 39,587 | $ 21,813 | $ 25,483 | $ 23,538 | $ 116,758 | $ 110,421 | $ 100,892 | |
Dividends | $ (15,500) | |||||||||||
Undistributed earnings | 115,485 | 109,148 | 99,619 | |||||||||
Allocation of net earnings: | ||||||||||||
Dividends | $ 15,500 | |||||||||||
Allocation of undistributed earnings | 115,485 | 109,148 | 99,619 | |||||||||
Common Class A | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Net earnings | 113,456 | 107,298 | 98,039 | |||||||||
Dividends | (1,237) | (1,237) | (1,237) | |||||||||
Undistributed earnings | 112,219 | 106,061 | 96,802 | |||||||||
Allocation of net earnings: | ||||||||||||
Dividends | 1,237 | 1,237 | 1,237 | |||||||||
Allocation of undistributed earnings | $ 112,219 | $ 106,061 | $ 96,802 | |||||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares (in shares) | 3,436 | 3,436 | 3,436 | |||||||||
Effect of dilutive stock options (in shares) | 0 | 0 | 1 | |||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions (in shares) | 3,436 | 3,436 | 3,437 | |||||||||
Basic Earnings Per Share (in dollars per share) | $ 6.16 | $ 10.08 | $ 9.18 | $ 7.60 | $ 11.19 | $ 6.17 | $ 7.21 | $ 6.66 | $ 33.02 | $ 31.23 | $ 28.53 | |
Diluted Earnings Per Share (in dollars per share) | 6.16 | 10.08 | 9.18 | 7.60 | 11.19 | 6.17 | 7.21 | 6.65 | $ 33.02 | $ 31.23 | $ 28.53 | |
Common Class B | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Net earnings | $ 3,302 | $ 3,123 | $ 2,853 | |||||||||
Dividends | (36) | (36) | (36) | |||||||||
Undistributed earnings | 3,266 | 3,087 | 2,817 | |||||||||
Allocation of net earnings: | ||||||||||||
Dividends | 36 | 36 | 36 | |||||||||
Allocation of undistributed earnings | $ 3,266 | $ 3,087 | $ 2,817 | |||||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares (in shares) | 200 | 200 | 200 | |||||||||
Effect of dilutive stock options (in shares) | 0 | 0 | 0 | |||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions (in shares) | 200 | 200 | 200 | |||||||||
Basic Earnings Per Share (in dollars per share) | 3.08 | 5.04 | 4.59 | 3.80 | 5.60 | 3.08 | 3.60 | 3.33 | $ 16.51 | $ 15.61 | $ 14.27 | |
Diluted Earnings Per Share (in dollars per share) | $ 3.08 | $ 5.04 | $ 4.59 | $ 3.80 | $ 5.60 | $ 3.08 | $ 3.60 | $ 3.33 | $ 16.51 | $ 15.61 | $ 14.27 |
Comprehensive Income (Details)
Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | |||
Reclassification to retained earnings from Tax Act | $ (2,500) | ||
Amounts Before Taxes | |||
Net unrealized holding gains (losses) arising during the period, Before Tax | $ (71,921) | 12,752 | $ 19,417 |
Unrealized liquidity losses, Before Tax | 3 | 300 | 57 |
Reclassification adjustment for net gains included in net earnings, Before Tax | (3,441) | (5,236) | (3,315) |
Amortization of net unrealized gains (losses) and related to transferred securities, Before Tax | 0 | 0 | 0 |
Net unrealized gains (losses) on securities, Before Tax | (75,359) | 7,816 | 16,159 |
Foreign currency translation adjustments, Before Tax | 1,714 | (14) | (251) |
Pension liability adjustment, Before Tax | 14,301 | (5,958) | (178) |
Other comprehensive income, Before Tax | (59,344) | 1,844 | 15,730 |
Tax (Expense) Benefit | |||
Net unrealized holding gains (losses) arising during the period, Tax | 15,103 | (4,464) | (6,796) |
Unrealized liquidity losses, Tax | (1) | (105) | (20) |
Reclassification adjustment for net gains included in net earnings, Tax | 723 | 1,833 | 1,160 |
Amortization of net unrealized gains (losses) and related to transferred securities, Tax | 0 | 0 | 0 |
Net unrealized gains (losses) on securities, Tax | 15,825 | (2,736) | (5,656) |
Foreign currency translation adjustments, Tax | (360) | 5 | 87 |
Pension liability adjustment, Tax | (3,003) | 2,085 | 62 |
Other comprehensive income, Tax | 12,462 | (646) | (5,507) |
Amount Net of Taxes | |||
Net unrealized holding gains (losses) arising during the period, Net of Tax | (56,818) | 8,288 | 12,621 |
Unrealized liquidity losses, Net of Tax | 2 | 195 | 37 |
Reclassification adjustment for net gains included in net earnings, Net of Tax | (2,718) | (3,403) | (2,155) |
Amortization of net unrealized gains (losses) and related to transferred securities, Net of Tax | 0 | 0 | 0 |
Net unrealized gains (losses) on securities | (59,534) | 5,080 | 10,503 |
Foreign currency translation adjustments, Net of Tax | 1,354 | (9) | (164) |
Pension liability adjustment, Net of Tax | 11,298 | (3,873) | (116) |
Other comprehensive income (loss) | (46,882) | 1,198 | 10,223 |
Deferred costs | $ 63,816 | $ (5,670) | $ (21,105) |
Segment and Other Operating I_3
Segment and Other Operating Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)customer | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Selected Condensed Consolidated Balance Sheet Items: | |||||||||||
Total segment assets | $ 11,931,691 | $ 12,225,094 | $ 11,931,691 | $ 12,225,094 | $ 11,894,981 | ||||||
Other policyholder liabilities | 135,694 | 128,009 | 135,694 | 128,009 | |||||||
Condensed Consolidated Income Statements: | |||||||||||
Premiums and contract revenues | 173,496 | 178,930 | 182,723 | ||||||||
Net investment income | 349,077 | 659,685 | 467,674 | ||||||||
Other revenues | 20,603 | 21,070 | 18,901 | ||||||||
Realized gains (losses) on investments | 8,423 | 14,763 | 13,070 | ||||||||
Total revenues | 42,486 | $ 225,435 | $ 174,658 | $ 109,018 | 247,815 | $ 203,990 | $ 198,226 | $ 224,417 | 551,599 | 874,448 | 682,368 |
Life and other policy benefits | 65,297 | 71,485 | 65,529 | ||||||||
Amortization of deferred policy acquisition costs | 114,771 | 114,387 | 121,139 | ||||||||
Universal life and annuity contract interest | 136,055 | 437,019 | 248,390 | ||||||||
Other operating expenses | 93,969 | 107,002 | 94,448 | ||||||||
Taxes on earnings from continuing operations | 24,749 | 34,134 | 51,970 | ||||||||
Net earnings | 21,776 | $ 35,641 | $ 32,466 | $ 26,875 | 39,587 | $ 21,813 | $ 25,483 | $ 23,538 | 116,758 | 110,421 | 100,892 |
Revenues, excluding reinsurance premiums | 194,256 | 199,242 | 202,398 | ||||||||
Reinsurance premiums | (20,760) | (20,312) | (19,675) | ||||||||
United States | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Revenues, excluding reinsurance premiums | 82,614 | 74,937 | 75,405 | ||||||||
Brazil | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Revenues, excluding reinsurance premiums | 27,280 | 33,024 | 38,928 | ||||||||
Venezuela | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Revenues, excluding reinsurance premiums | 14,414 | 16,105 | 15,534 | ||||||||
Taiwan | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Revenues, excluding reinsurance premiums | 12,864 | 14,844 | 14,474 | ||||||||
Peru | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Revenues, excluding reinsurance premiums | 10,969 | 11,714 | 11,378 | ||||||||
Chile | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Revenues, excluding reinsurance premiums | 8,769 | 9,201 | 8,859 | ||||||||
Other foreign countries | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Revenues, excluding reinsurance premiums | $ 37,346 | 39,417 | 37,820 | ||||||||
Domestic Life Insurance | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Number of customers | customer | 3 | ||||||||||
Annuities | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Number of customers | customer | 2 | ||||||||||
Operating Segments | |||||||||||
Selected Condensed Consolidated Balance Sheet Items: | |||||||||||
Deferred policy acquisition costs and sales inducements | 975,418 | 955,081 | $ 975,418 | 955,081 | 982,305 | ||||||
Total segment assets | 11,588,481 | 12,011,696 | 11,588,481 | 12,011,696 | 11,697,099 | ||||||
Future policy benefits | 9,744,286 | 10,098,484 | 9,744,286 | 10,098,484 | 9,859,095 | ||||||
Other policyholder liabilities | 135,694 | 128,009 | 135,694 | 128,009 | 143,391 | ||||||
Condensed Consolidated Income Statements: | |||||||||||
Premiums and contract revenues | 173,496 | 178,930 | 182,723 | ||||||||
Net investment income | 349,077 | 659,685 | 467,674 | ||||||||
Other revenues | 20,603 | 21,070 | 18,901 | ||||||||
Total revenues | 543,176 | 859,685 | 669,298 | ||||||||
Life and other policy benefits | 65,297 | 71,485 | 65,529 | ||||||||
Amortization of deferred policy acquisition costs | 114,771 | 114,387 | 121,139 | ||||||||
Universal life and annuity contract interest | 136,055 | 437,019 | 248,390 | ||||||||
Other operating expenses | 93,969 | 107,002 | 94,448 | ||||||||
Federal income taxes (benefit) | 22,980 | 28,967 | 47,395 | ||||||||
Total expenses | 433,072 | 758,860 | 576,901 | ||||||||
Segment earnings (loss) | 110,104 | 100,825 | 92,397 | ||||||||
Net earnings | 110,104 | 100,825 | |||||||||
Operating Segments | Domestic Life Insurance | |||||||||||
Selected Condensed Consolidated Balance Sheet Items: | |||||||||||
Deferred policy acquisition costs and sales inducements | 122,661 | 101,253 | 122,661 | 101,253 | 90,485 | ||||||
Total segment assets | 1,215,864 | 1,106,410 | 1,215,864 | 1,106,410 | 971,990 | ||||||
Future policy benefits | 1,039,150 | 950,884 | 1,039,150 | 950,884 | 830,460 | ||||||
Other policyholder liabilities | 17,439 | 13,643 | 17,439 | 13,643 | 13,998 | ||||||
Condensed Consolidated Income Statements: | |||||||||||
Premiums and contract revenues | 40,879 | 37,387 | 34,728 | ||||||||
Net investment income | 23,579 | 73,866 | 39,691 | ||||||||
Other revenues | 19 | 46 | 119 | ||||||||
Total revenues | 64,477 | 111,299 | 74,538 | ||||||||
Life and other policy benefits | 21,688 | 18,565 | 17,908 | ||||||||
Amortization of deferred policy acquisition costs | 11,539 | 10,377 | 4,125 | ||||||||
Universal life and annuity contract interest | 8,826 | 59,865 | 28,606 | ||||||||
Other operating expenses | 20,731 | 18,842 | 18,739 | ||||||||
Federal income taxes (benefit) | 292 | 815 | 1,749 | ||||||||
Total expenses | 63,076 | 108,464 | 71,127 | ||||||||
Segment earnings (loss) | 1,401 | 2,835 | 3,411 | ||||||||
Operating Segments | International Life Insurance | |||||||||||
Selected Condensed Consolidated Balance Sheet Items: | |||||||||||
Deferred policy acquisition costs and sales inducements | 243,518 | 250,128 | 243,518 | 250,128 | 243,106 | ||||||
Total segment assets | 1,211,036 | 1,236,733 | 1,211,036 | 1,236,733 | 1,232,648 | ||||||
Future policy benefits | 894,891 | 915,384 | 894,891 | 915,384 | 919,380 | ||||||
Other policyholder liabilities | 20,381 | 11,318 | 20,381 | 11,318 | 10,528 | ||||||
Condensed Consolidated Income Statements: | |||||||||||
Premiums and contract revenues | 108,923 | 120,852 | 125,775 | ||||||||
Net investment income | 22,603 | 68,399 | 42,331 | ||||||||
Other revenues | 87 | 83 | 321 | ||||||||
Total revenues | 131,613 | 189,334 | 168,427 | ||||||||
Life and other policy benefits | 22,333 | 23,981 | 18,759 | ||||||||
Amortization of deferred policy acquisition costs | 24,358 | (1,473) | 18,027 | ||||||||
Universal life and annuity contract interest | 24,590 | 54,502 | 28,636 | ||||||||
Other operating expenses | 19,593 | 36,341 | 25,933 | ||||||||
Federal income taxes (benefit) | 7,035 | 16,958 | 26,130 | ||||||||
Total expenses | 97,909 | 130,309 | 117,485 | ||||||||
Segment earnings (loss) | 33,704 | 59,025 | 50,942 | ||||||||
Operating Segments | Annuities | |||||||||||
Selected Condensed Consolidated Balance Sheet Items: | |||||||||||
Deferred policy acquisition costs and sales inducements | 609,239 | 603,700 | 609,239 | 603,700 | 648,714 | ||||||
Total segment assets | 8,791,463 | 9,269,956 | 8,791,463 | 9,269,956 | 9,193,980 | ||||||
Future policy benefits | 7,810,245 | 8,232,216 | 7,810,245 | 8,232,216 | 8,109,255 | ||||||
Other policyholder liabilities | 97,874 | 103,048 | 97,874 | 103,048 | 118,865 | ||||||
Condensed Consolidated Income Statements: | |||||||||||
Premiums and contract revenues | 23,694 | 20,691 | 22,220 | ||||||||
Net investment income | 276,123 | 490,706 | 362,700 | ||||||||
Other revenues | 66 | 109 | 254 | ||||||||
Total revenues | 299,883 | 511,506 | 385,174 | ||||||||
Life and other policy benefits | 21,276 | 28,939 | 28,862 | ||||||||
Amortization of deferred policy acquisition costs | 78,874 | 105,483 | 98,987 | ||||||||
Universal life and annuity contract interest | 102,639 | 322,652 | 191,148 | ||||||||
Other operating expenses | 32,584 | 32,021 | 31,852 | ||||||||
Federal income taxes (benefit) | 11,139 | 5,002 | 11,638 | ||||||||
Total expenses | 246,512 | 494,097 | 362,487 | ||||||||
Segment earnings (loss) | 53,371 | 17,409 | 22,687 | ||||||||
Operating Segments | All Others | |||||||||||
Selected Condensed Consolidated Balance Sheet Items: | |||||||||||
Deferred policy acquisition costs and sales inducements | 0 | 0 | 0 | 0 | 0 | ||||||
Total segment assets | 370,118 | 398,597 | 370,118 | 398,597 | 298,481 | ||||||
Future policy benefits | 0 | 0 | 0 | 0 | 0 | ||||||
Other policyholder liabilities | 0 | 0 | 0 | 0 | 0 | ||||||
Condensed Consolidated Income Statements: | |||||||||||
Premiums and contract revenues | 0 | 0 | 0 | ||||||||
Net investment income | 26,772 | 26,714 | 22,952 | ||||||||
Other revenues | 20,431 | 20,832 | 18,207 | ||||||||
Total revenues | 47,203 | 47,546 | 41,159 | ||||||||
Life and other policy benefits | 0 | 0 | 0 | ||||||||
Amortization of deferred policy acquisition costs | 0 | 0 | 0 | ||||||||
Universal life and annuity contract interest | 0 | 0 | 0 | ||||||||
Other operating expenses | 21,061 | 19,798 | 17,924 | ||||||||
Federal income taxes (benefit) | 4,514 | 6,192 | 7,878 | ||||||||
Total expenses | 25,575 | 25,990 | 25,802 | ||||||||
Segment earnings (loss) | 21,628 | 21,556 | 15,357 | ||||||||
Segment Reconciling Items | |||||||||||
Selected Condensed Consolidated Balance Sheet Items: | |||||||||||
Total segment assets | $ 343,210 | $ 213,398 | 343,210 | 213,398 | 197,882 | ||||||
Condensed Consolidated Income Statements: | |||||||||||
Taxes on realized gains (losses) on investments | 1,769 | 5,167 | 4,575 | ||||||||
Realized gains (losses) on investments, net of taxes | $ 6,654 | $ 9,596 | $ 8,495 | ||||||||
Agency Two | Domestic Life Insurance | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Major customer, percentage of sales | 10.00% | ||||||||||
Agency Two | Annuities | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Major customer, percentage of sales | 13.00% | ||||||||||
Agency One | Domestic Life Insurance | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Major customer, percentage of sales | 35.00% | ||||||||||
Agency One | Annuities | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Major customer, percentage of sales | 14.00% | ||||||||||
Agency Three | Domestic Life Insurance | |||||||||||
Condensed Consolidated Income Statements: | |||||||||||
Major customer, percentage of sales | 10.00% |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available for sale | $ 2,946,059 | $ 3,041,131 |
Equity securities | 17,491 | 18,478 |
Derivatives, index options | 14,684 | 194,731 |
Total assets | 2,978,234 | 3,254,340 |
Policyholder account balances | 44,781 | 211,159 |
Other liabilities | 11,923 | 15,242 |
Total liabilities | $ 56,704 | 226,401 |
Percent of total (in percentage) | 100.00% | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available for sale | $ 0 | 0 |
Equity securities | 17,491 | 18,478 |
Derivatives, index options | 0 | 0 |
Total assets | 17,491 | 18,478 |
Policyholder account balances | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities | $ 0 | 0 |
Percent of total (in percentage) | 0.60% | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available for sale | $ 2,946,059 | 3,041,131 |
Equity securities | 0 | 0 |
Derivatives, index options | 0 | 0 |
Total assets | 2,946,059 | 3,041,131 |
Policyholder account balances | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities | $ 0 | 0 |
Percent of total (in percentage) | 98.90% | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available for sale | $ 0 | 0 |
Equity securities | 0 | 0 |
Derivatives, index options | 14,684 | 194,731 |
Total assets | 14,684 | 194,731 |
Policyholder account balances | 44,781 | 211,159 |
Other liabilities | 11,923 | 15,242 |
Total liabilities | $ 56,704 | $ 226,401 |
Percent of total (in percentage) | 0.50% | |
Priced by Third-Party Vendors | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available for sale | $ 2,946,059 | |
Equity securities | 17,491 | |
Derivatives, index options | 14,684 | |
Priced by Third-Party Vendors | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available for sale | 0 | |
Equity securities | 17,491 | |
Derivatives, index options | 0 | |
Priced by Third-Party Vendors | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available for sale | 2,946,059 | |
Equity securities | 0 | |
Derivatives, index options | 0 | |
Priced by Third-Party Vendors | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available for sale | 0 | |
Equity securities | 0 | |
Derivatives, index options | 14,684 | |
Priced Internally | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available for sale | 0 | |
Equity securities | 0 | |
Derivatives, index options | 0 | |
Priced Internally | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available for sale | 0 | |
Equity securities | 0 | |
Derivatives, index options | 0 | |
Priced Internally | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available for sale | 0 | |
Equity securities | 0 | |
Derivatives, index options | 0 | |
Priced Internally | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available for sale | 0 | |
Equity securities | 0 | |
Derivatives, index options | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Fair Value Measurements for Level 3 Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | $ 194,731 | $ 120,644 |
Total realized and unrealized gains (losses): | ||
Included in net income | (80,004) | 222,875 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases | 86,953 | 75,346 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (186,996) | (224,134) |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 14,684 | 194,731 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | (72,269) | 119,386 |
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 226,401 | 134,693 |
Total realized and unrealized gains (losses): | ||
Included in net income | (65,046) | 240,605 |
Included in comprehensive income (loss) | 0 | 0 |
Purchases | 86,953 | 75,346 |
Sales | 0 | 0 |
Issuances | 74 | 1,688 |
Settlements | (191,678) | (225,931) |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 56,704 | 226,401 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | (70,980) | 122,318 |
Debt Securities, Available For Sale | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 0 | 0 |
Total realized and unrealized gains (losses): | ||
Included in net income | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 0 | 0 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | 0 |
Equity Securities | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 0 | 0 |
Total realized and unrealized gains (losses): | ||
Included in net income | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 0 | 0 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | 0 |
Derivatives, index options | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 194,731 | 120,644 |
Total realized and unrealized gains (losses): | ||
Included in net income | (80,004) | 222,875 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases | 86,953 | 75,346 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (186,996) | (224,134) |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 14,684 | 194,731 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | (72,269) | 119,386 |
Net investment income | ||
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/liabilities held at the end of the reporting period: | (72,269) | 119,386 |
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/liabilities held at the end of the reporting period: | 0 | 0 |
Net investment income | Debt Securities, Available For Sale | ||
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/liabilities held at the end of the reporting period: | 0 | 0 |
Net investment income | Equity Securities | ||
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/liabilities held at the end of the reporting period: | 0 | 0 |
Net investment income | Derivatives, index options | ||
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/liabilities held at the end of the reporting period: | (72,269) | 119,386 |
Benefits and expenses | ||
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/liabilities 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/liabilities held at the end of the reporting period: | (70,980) | 122,318 |
Benefits and expenses | Debt Securities, Available For Sale | ||
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/liabilities held at the end of the reporting period: | 0 | 0 |
Benefits and expenses | Equity Securities | ||
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/liabilities held at the end of the reporting period: | 0 | 0 |
Benefits and expenses | Derivatives, index options | ||
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/liabilities held at the end of the reporting period: | $ 0 | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Quantitative Information) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Assets | $ 2,978,234 | $ 3,254,340 |
Liabilities | 56,704 | 226,401 |
Level 3 | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Assets | 14,684 | 194,731 |
Liabilities | 56,704 | 226,401 |
Level 3 | Derivatives, index options | Broker prices | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Assets | 14,684 | 194,731 |
Policyholder account balances | Level 3 | Deterministic cash flow model | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liabilities | 44,781 | 211,159 |
Other liabilities | Level 3 | Black Scholes | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liabilities | $ 11,923 | $ 15,242 |
Fair Values of Financial Instru
Fair Values of Financial Instruments (Fair Value by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities held to maturity | $ 7,228,268 | $ 7,434,104 |
Debt securities, available for sale | 2,946,059 | 3,041,131 |
Securities available for sale | 3,059,609 | |
Derivatives, index options | 14,684 | 194,731 |
Equity securities | 17,491 | 18,478 |
Carrying Values | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities held to maturity | 7,285,254 | 7,247,024 |
Debt securities, available for sale | 2,946,059 | |
Securities available for sale | 3,059,609 | |
Cash and cash equivalents | 131,976 | 217,624 |
Mortgage loans | 203,180 | 208,249 |
Policy loans | 54,724 | 56,405 |
Other loans | 12,272 | 5,431 |
Derivatives, index options | 14,684 | 194,731 |
Equity securities | 17,491 | |
Life interest in Libbie Shearn Moody Trust | 8,692 | 8,676 |
Deferred annuity contracts | 7,455,642 | 7,865,786 |
Immediate annuity and supplemental contracts | 407,413 | 430,494 |
Fair Values | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities held to maturity | 7,228,268 | 7,434,104 |
Debt securities, available for sale | 2,946,059 | |
Securities available for sale | 3,059,609 | |
Cash and cash equivalents | 131,976 | 217,624 |
Mortgage loans | 202,762 | 208,815 |
Policy loans | 90,802 | 100,230 |
Other loans | 12,709 | 5,603 |
Derivatives, index options | 14,684 | 194,731 |
Equity securities | 17,491 | |
Life interest in Libbie Shearn Moody Trust | 12,775 | 12,775 |
Deferred annuity contracts | 6,403,007 | 7,338,637 |
Immediate annuity and supplemental contracts | 415,726 | 443,437 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities held to maturity | 0 | 0 |
Debt securities, available for sale | 0 | 0 |
Securities available for sale | 18,478 | |
Cash and cash equivalents | 131,976 | 217,624 |
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Other loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Equity securities | 17,491 | 18,478 |
Life interest in Libbie Shearn Moody Trust | 0 | 0 |
Deferred annuity contracts | 0 | 0 |
Immediate annuity and supplemental contracts | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities held to maturity | 7,226,362 | 7,431,810 |
Debt securities, available for sale | 2,946,059 | 3,041,131 |
Securities available for sale | 3,041,131 | |
Cash and cash equivalents | 0 | 0 |
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Other loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Equity securities | 0 | 0 |
Life interest in Libbie Shearn Moody Trust | 0 | 0 |
Deferred annuity contracts | 0 | 0 |
Immediate annuity and supplemental contracts | 0 | 0 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities held to maturity | 1,906 | 2,294 |
Debt securities, available for sale | 0 | 0 |
Securities available for sale | 0 | |
Cash and cash equivalents | 0 | 0 |
Mortgage loans | 202,762 | 208,815 |
Policy loans | 90,802 | 100,230 |
Other loans | 12,709 | 5,603 |
Derivatives, index options | 14,684 | 194,731 |
Equity securities | 0 | 0 |
Life interest in Libbie Shearn Moody Trust | 12,775 | 12,775 |
Deferred annuity contracts | 6,403,007 | 7,338,637 |
Immediate annuity and supplemental contracts | $ 415,726 | $ 443,437 |
Derivative Investments (Balance
Derivative Investments (Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivatives, index options | $ 14,684 | $ 194,731 |
Liability Derivatives | 44,781 | 211,159 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives, index options | 14,684 | 194,731 |
Liability Derivatives | 44,781 | 211,159 |
Not Designated as Hedging Instrument | Equity index options | Derivatives, index options | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives, index options | 14,684 | 194,731 |
Not Designated as Hedging Instrument | Fixed-index products | Universal Life and Annuity Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 44,781 | $ 211,159 |
Derivative Investments (Stateme
Derivative Investments (Statements of Earnings) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in the embedded derivative liability due to the expected collectability of asset management fees increased/(decreased) contract interest expense | $ 17,600 | $ 6,900 | $ (15,900) |
Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | (13,669) | (14,406) | 17,928 |
Not Designated as Hedging Instrument | Equity index options | Net investment income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | (80,004) | 222,875 | 28,364 |
Not Designated as Hedging Instrument | Fixed-index products | Universal Life and Annuity Contract Interest | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains (losses) | $ 66,335 | $ (237,281) | $ (10,436) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||||
Rental expense | $ 400,000 | $ 300,000 | $ 200,000 | ||
Mortgage loan | 203,180,000 | 208,249,000 | |||
Robert L. Moody, Jr. | |||||
Related Party Transaction [Line Items] | |||||
Commission paid under agency contracts | 123,675 | ||||
MNB | |||||
Related Party Transaction [Line Items] | |||||
Commission and service fees expense | 602,564 | ||||
Rental expense | 10,700 | ||||
Mortgage loan | 5,500,000 | ||||
Mortgage loan | 5,000,000 | ||||
RMS | |||||
Related Party Transaction [Line Items] | |||||
Management fees | 680,034 | ||||
American National Insurance Company | |||||
Related Party Transaction [Line Items] | |||||
Premiums paid during the year | 699,950 | ||||
Reimbursements for claim costs | 2,886,920 | ||||
Premium received | 3,007,209 | ||||
Professional fees | $ 18,000 | ||||
Term of agreement (in years) | 2 years | ||||
Renewal term of agreement (in years) | 1 year | ||||
American National Registered Investment Advisory | |||||
Related Party Transaction [Line Items] | |||||
Professional fees | $ 45,540 | ||||
The Company | Moody Bancshares, Inc. | |||||
Related Party Transaction [Line Items] | |||||
Percentage of ownership (in percentage) | 9.50% | ||||
RCC | RMS | |||||
Related Party Transaction [Line Items] | |||||
Percentage of ownership (in percentage) | 1.00% | ||||
Three R Trusts | RCC | |||||
Related Party Transaction [Line Items] | |||||
Percentage of ownership (in percentage) | 100.00% | ||||
Three R Trusts | RMS | |||||
Related Party Transaction [Line Items] | |||||
Percentage of ownership (in percentage) | 99.00% | ||||
Moody Bancshares, Inc. | Moody Bank Holding | |||||
Related Party Transaction [Line Items] | |||||
Percentage of ownership (in percentage) | 100.00% | ||||
Moody Bank Holding | MNB | |||||
Related Party Transaction [Line Items] | |||||
Percentage of ownership (in percentage) | 98.00% | ||||
The Westcap Corporation | MNB | |||||
Related Party Transaction [Line Items] | |||||
Mortgage loan | $ 7,200,000 | ||||
Percentage of commercial mortgage (in percentage) | 50.00% | ||||
The Westcap Corporation | American National Insurance Company | |||||
Related Party Transaction [Line Items] | |||||
Undivided participation in mortgage (in percentage) | 50.00% | 24.93% | |||
Percentage of commercial mortgage (in percentage) | 24.93% | ||||
Mortgage loan | $ 19,400,000 | $ 20,000,000 |
Unaudited Quarterly Financial_3
Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | $ 42,486 | $ 225,435 | $ 174,658 | $ 109,018 | $ 247,815 | $ 203,990 | $ 198,226 | $ 224,417 | $ 551,599 | $ 874,448 | $ 682,368 |
Earnings (loss) | $ 21,776 | $ 35,641 | $ 32,466 | $ 26,875 | $ 39,587 | $ 21,813 | $ 25,483 | $ 23,538 | 116,758 | 110,421 | 100,892 |
Common Class B | |||||||||||
Earnings (loss) | $ 3,302 | $ 3,123 | $ 2,853 | ||||||||
Basic Earnings Per Share (in dollars per share) | $ 3.08 | $ 5.04 | $ 4.59 | $ 3.80 | $ 5.60 | $ 3.08 | $ 3.60 | $ 3.33 | $ 16.51 | $ 15.61 | $ 14.27 |
Diluted Earnings Per Share (in dollars per share) | 3.08 | 5.04 | 4.59 | 3.80 | 5.60 | 3.08 | 3.60 | 3.33 | $ 16.51 | $ 15.61 | $ 14.27 |
Common Class A | |||||||||||
Earnings (loss) | $ 113,456 | $ 107,298 | $ 98,039 | ||||||||
Basic Earnings Per Share (in dollars per share) | 6.16 | 10.08 | 9.18 | 7.60 | 11.19 | 6.17 | 7.21 | 6.66 | $ 33.02 | $ 31.23 | $ 28.53 |
Diluted Earnings Per Share (in dollars per share) | $ 6.16 | $ 10.08 | $ 9.18 | $ 7.60 | $ 11.19 | $ 6.17 | $ 7.21 | $ 6.65 | $ 33.02 | $ 31.23 | $ 28.53 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ in Millions | Jan. 31, 2019 | Feb. 15, 2019 | Feb. 01, 2019 |
Ozark National Life Insurance Company | |||
Subsequent Event [Line Items] | |||
Cash paid to acquire business | $ 205.5 | ||
Nursing Home Operations in Reno, Nevada | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Subsequent Event [Line Items] | |||
Consideration received from disposal | $ 13.6 | ||
Nursing Home Operations in San Marcos, Texas | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Subsequent Event [Line Items] | |||
Consideration received from disposal | $ 7.6 |
Schedule I - Summary of Inves_2
Schedule I - Summary of Investments Other Than Investments in Related Parties (Details) | Dec. 31, 2018USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | $ 10,637,646,000 |
Fair Value | |
Balance Sheet Amount | 10,578,243,000 |
Total fixed maturity bonds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 10,293,878,000 |
Fair Value | 10,174,327,000 |
Balance Sheet Amount | 10,231,313,000 |
Corporate | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 5,812,000 |
Fair Value | 7,964,000 |
Balance Sheet Amount | 7,964,000 |
Equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 14,329,000 |
Fair Value | 17,491,000 |
Balance Sheet Amount | 17,491,000 |
Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 568,000 |
Fair Value | 945,000 |
Balance Sheet Amount | 945,000 |
Banks, trust and insurance companies | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,516,000 |
Fair Value | 2,480,000 |
Balance Sheet Amount | 2,480,000 |
Preferred stocks | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 6,433,000 |
Fair Value | 6,102,000 |
Balance Sheet Amount | 6,102,000 |
Derivatives, index options | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 14,684,000 |
Balance Sheet Amount | 14,684,000 |
Mortgage loans | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 203,180,000 |
Balance Sheet Amount | 203,180,000 |
Policy loans | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 54,724,000 |
Balance Sheet Amount | 54,724,000 |
Other long-term investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 56,851,000 |
Balance Sheet Amount | 56,851,000 |
Real estate acquired through foreclosure | 0 |
Securities held to maturity: | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 7,285,254,000 |
Fair Value | 7,228,268,000 |
Balance Sheet Amount | 7,285,254,000 |
Securities held to maturity: | United States government and government agencies and authorities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,341,000 |
Fair Value | 1,457,000 |
Balance Sheet Amount | 1,341,000 |
Securities held to maturity: | States, municipalities, and political subdivisions | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 457,404,000 |
Fair Value | 464,792,000 |
Balance Sheet Amount | 457,404,000 |
Securities held to maturity: | Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 930,629,000 |
Fair Value | 923,613,000 |
Balance Sheet Amount | 930,629,000 |
Securities held to maturity: | Corporate | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 4,715,775,000 |
Fair Value | 4,656,384,000 |
Balance Sheet Amount | 4,715,775,000 |
Securities held to maturity: | Residential mortgage-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,176,216,000 |
Fair Value | 1,178,055,000 |
Balance Sheet Amount | 1,176,216,000 |
Securities held to maturity: | Asset-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 3,889,000 |
Fair Value | 3,967,000 |
Balance Sheet Amount | 3,889,000 |
Securities available for sale: | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 3,008,624,000 |
Fair Value | 2,946,059,000 |
Balance Sheet Amount | 2,946,059,000 |
Securities available for sale: | States, municipalities, and political subdivisions | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 570,000 |
Fair Value | 566,000 |
Balance Sheet Amount | 566,000 |
Securities available for sale: | Foreign governments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 9,974,000 |
Fair Value | 10,004,000 |
Balance Sheet Amount | 10,004,000 |
Securities available for sale: | Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 82,943,000 |
Fair Value | 83,471,000 |
Balance Sheet Amount | 83,471,000 |
Securities available for sale: | Corporate | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 2,893,221,000 |
Fair Value | 2,829,056,000 |
Balance Sheet Amount | 2,829,056,000 |
Securities available for sale: | Residential mortgage-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 15,947,000 |
Fair Value | 16,800,000 |
Balance Sheet Amount | 16,800,000 |
Securities available for sale: | Asset-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 5,969,000 |
Fair Value | 6,162,000 |
Balance Sheet Amount | $ 6,162,000 |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information of Registrant Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Cash and cash equivalents | $ 131,976 | $ 217,624 | $ 51,247 | $ 106,007 |
Federal income tax receivable | 17,934 | 0 | ||
Other assets | 131,782 | 137,725 | ||
Total assets | 11,931,691 | 12,225,094 | 11,894,981 | |
LIABILITIES: | ||||
Deferred Federal income tax liability | 39,384 | 25,408 | ||
Other liabilities | 111,550 | 138,318 | ||
Total liabilities | 10,030,914 | 10,392,920 | ||
Stockholders' Equity: | ||||
Additional paid-in capital | 41,716 | 41,716 | ||
Accumulated other comprehensive income (loss) | (37,015) | 14,281 | ||
Retained earnings | 1,896,040 | 1,776,141 | ||
Total stockholders' equity | 1,900,777 | 1,832,174 | 1,721,828 | |
Total liabilities and stockholders' equity | 11,931,691 | 12,225,094 | ||
The Company | ||||
ASSETS | ||||
Investment in subsidiaries | 1,896,669 | 1,830,893 | ||
Cash and cash equivalents | 1,443 | 1,303 | $ 1,270 | $ 1,501 |
Federal income tax receivable | 4,185 | 3,019 | ||
Deferred Federal income tax asset | 0 | 51 | ||
Other assets | 353 | 383 | ||
Total assets | 1,902,650 | 1,835,649 | ||
LIABILITIES: | ||||
Due to subsidiaries | 0 | 0 | ||
Deferred Federal income tax liability | 397 | 0 | ||
Other liabilities | 1,476 | 3,475 | ||
Total liabilities | 1,873 | 3,475 | ||
Stockholders' Equity: | ||||
Additional paid-in capital | 41,716 | 41,716 | ||
Accumulated other comprehensive income (loss) | (37,015) | 14,281 | ||
Retained earnings | 1,896,040 | 1,776,141 | ||
Total stockholders' equity | 1,900,777 | 1,832,174 | ||
Total liabilities and stockholders' equity | 1,902,650 | 1,835,649 | ||
Common Class A | ||||
Stockholders' Equity: | ||||
Common Stock: | 34 | 34 | ||
Common Class A | The Company | ||||
Stockholders' Equity: | ||||
Common Stock: | 34 | 34 | ||
Common Class B | ||||
Stockholders' Equity: | ||||
Common Stock: | 2 | 2 | ||
Common Class B | The Company | ||||
Stockholders' Equity: | ||||
Common Stock: | $ 2 | $ 2 |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information of Registrant (Balance Sheet - Nonprinting) (Details) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Common Class A | ||
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 7,500,000 | 7,500,000 |
Common Stock, shares issued (in shares) | 3,436,020 | 3,436,166 |
Common Stock, shares outstanding (in shares) | 3,436,020 | 3,436,166 |
Common Class B | ||
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 200,000 | 200,000 |
Common Stock, shares issued (in shares) | 200,000 | 200,000 |
Common Stock, shares outstanding (in shares) | 200,000 | 200,000 |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information of Registrant Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||||||||||
Total revenues | $ 42,486 | $ 225,435 | $ 174,658 | $ 109,018 | $ 247,815 | $ 203,990 | $ 198,226 | $ 224,417 | $ 551,599 | $ 874,448 | $ 682,368 |
Expenses: | |||||||||||
Other operating expenses | 93,969 | 107,002 | 94,448 | ||||||||
Total expenses | 410,092 | 729,893 | 529,506 | ||||||||
Federal income taxes/(benefit) | 24,749 | 34,134 | 51,970 | ||||||||
Net earnings | $ 21,776 | $ 35,641 | $ 32,466 | $ 26,875 | $ 39,587 | $ 21,813 | $ 25,483 | $ 23,538 | 116,758 | 110,421 | 100,892 |
The Company | |||||||||||
Revenues: | |||||||||||
Dividend income from subsidiaries | 5,957 | 7,000 | 3,000 | ||||||||
Total revenues | 5,957 | 7,000 | 3,000 | ||||||||
Expenses: | |||||||||||
Other operating expenses | 2,617 | 4,199 | 4,493 | ||||||||
Total expenses | 2,617 | 4,199 | 4,493 | ||||||||
Earnings before Federal income taxes | 3,340 | 2,801 | (1,493) | ||||||||
Federal income taxes/(benefit) | (717) | (1,495) | (1,539) | ||||||||
Earnings before equity/(loss) in earnings of affiliates | 4,057 | 4,296 | 46 | ||||||||
Equity/(loss) in earnings of affiliates | 112,701 | 106,125 | 100,846 | ||||||||
Net earnings | $ 116,758 | $ 110,421 | $ 100,892 |
Schedule II - Condensed Finan_5
Schedule II - Condensed Financial Information of Registrant Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||||||||||
Net earnings | $ 21,776 | $ 35,641 | $ 32,466 | $ 26,875 | $ 39,587 | $ 21,813 | $ 25,483 | $ 23,538 | $ 116,758 | $ 110,421 | $ 100,892 |
Adjustments to reconcile net earnings/(loss) to cash provided by operating activities: | |||||||||||
Depreciation and amortization | 11,825 | 10,005 | 8,057 | ||||||||
Change in: | |||||||||||
Federal income tax, net | (20,635) | 1,912 | 13,301 | ||||||||
Deferred Federal income tax | 26,438 | (40,227) | 10,152 | ||||||||
Other, net | (12,728) | 27,456 | 7,925 | ||||||||
Net cash provided by operating activities | 326,623 | 276,130 | 309,143 | ||||||||
Cash flows from financing activities: | |||||||||||
Dividends on common stock | (1,273) | (1,273) | (1,273) | ||||||||
Net cash provided by (used in) financing activities | (441,914) | (164,535) | (54,087) | ||||||||
Net increase (decrease) in cash and cash equivalents | (85,648) | 166,377 | (54,760) | ||||||||
Cash and cash equivalents at beginning of year | 217,624 | 51,247 | 217,624 | 51,247 | 106,007 | ||||||
Cash and cash equivalents at end of year | 131,976 | 217,624 | 131,976 | 217,624 | 51,247 | ||||||
The Company | |||||||||||
Cash flows from operating activities: | |||||||||||
Net earnings | 116,758 | 110,421 | 100,892 | ||||||||
Adjustments to reconcile net earnings/(loss) to cash provided by operating activities: | |||||||||||
Equity in earnings/(loss) of affiliates | (112,701) | (106,125) | (100,846) | ||||||||
Depreciation and amortization | 30 | 30 | 30 | ||||||||
Change in: | |||||||||||
Federal income tax, net | (1,166) | (1,843) | (1,008) | ||||||||
Deferred Federal income tax | 448 | 348 | (530) | ||||||||
Due to subsidiaries, net | 0 | (608) | 608 | ||||||||
Other, net | (1,956) | (917) | 1,896 | ||||||||
Net cash provided by operating activities | 1,413 | 1,306 | 1,042 | ||||||||
Cash flows from financing activities: | |||||||||||
Dividends on common stock | (1,273) | (1,273) | (1,273) | ||||||||
Net cash provided by (used in) financing activities | (1,273) | (1,273) | (1,273) | ||||||||
Net increase (decrease) in cash and cash equivalents | 140 | 33 | (231) | ||||||||
Cash and cash equivalents at beginning of year | $ 1,303 | $ 1,270 | 1,303 | 1,270 | 1,501 | ||||||
Cash and cash equivalents at end of year | $ 1,443 | $ 1,303 | $ 1,443 | $ 1,303 | $ 1,270 |
Schedule II - Condensed Finan_6
Schedule II - Condensed Financial Information of Registrant (Notes) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Information Disclosure [Abstract] | ||||
Dividends | $ 15.5 | |||
Dividend payments | $ 6 | $ 7 | $ 3 |
Schedule V - Valuation and Qu_2
Schedule V - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for possible losses on mortgage loans: | |||
Allowance for possible losses on mortgage loans: | |||
Balance at beginnning of period | $ 650 | $ 650 | $ 650 |
Charged to cost and expense | 25 | 0 | 0 |
Reduction | 0 | 0 | 0 |
Transfers | 0 | 0 | 0 |
Balance at end of period | 675 | 650 | 650 |
Allowance for possible losses on real estate: | |||
Allowance for possible losses on mortgage loans: | |||
Balance at beginnning of period | 611 | 611 | 1,629 |
Charged to cost and expense | 0 | 0 | 0 |
Reduction | 0 | 0 | (1,018) |
Transfers | 0 | 0 | 0 |
Balance at end of period | $ 611 | $ 611 | $ 611 |
Uncategorized Items - nwlgi2018
Label | Element | Value |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 571,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (4,414,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 5,966,000 |
Accumulated Other-than-Temporary Impairment Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (2,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (4,004,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accumulated Other Than Temporary Impairment Available For Sale [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |