Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 09, 2019 | |
Entity Information [Line Items] | ||
Entity Registrant Name | NATIONAL WESTERN LIFE GROUP, INC. | |
Entity Central Index Key | 0001635984 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (shares) | 3,436,020 | |
Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (shares) | 200,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investments: | ||
Debt securities held to maturity, at amortized cost (fair value: $7,529,552 and $7,228,268) | $ 7,428,925 | $ 7,285,254 |
Fair Value | 3,334,485 | 2,946,059 |
Mortgage loans, net of allowance for possible losses ($675 and $675) | 205,368 | 203,180 |
Policy loans | 81,162 | 54,724 |
Derivatives, index options | 71,001 | 14,684 |
Equity securities, at fair value (cost: $14,374 and $14,329) | 19,196 | 17,491 |
Other long-term investments | 68,167 | 56,851 |
Total investments | 11,208,304 | 10,578,243 |
Cash and cash equivalents | 91,936 | 131,976 |
Deferred policy acquisition costs | 793,940 | 841,704 |
Deferred sales inducements | 123,880 | 133,714 |
Value of business acquired | 145,696 | 0 |
Accrued investment income | 105,650 | 96,338 |
Federal income tax receivable | 0 | 17,934 |
Other assets | 179,470 | 131,782 |
Total assets | 12,648,876 | 11,931,691 |
Future policy benefits: | ||
Universal life and annuity contracts | 9,524,265 | 9,608,850 |
Traditional life reserves | 828,189 | 135,436 |
Other policyholder liabilities | 148,809 | 135,694 |
Deferred Federal income tax liability | 41,705 | 39,384 |
Federal income tax payable | 1,282 | 0 |
Other liabilities | 121,726 | 111,550 |
Total liabilities | 10,665,976 | 10,030,914 |
COMMITMENTS AND CONTINGENCIES (Note 8) | ||
Common stock: | ||
Additional paid-in capital | 41,716 | 41,716 |
Accumulated other comprehensive income (loss) | 4,910 | (37,015) |
Retained earnings | 1,936,238 | 1,896,040 |
Total stockholders’ equity | 1,982,900 | 1,900,777 |
Total liabilities and stockholders' equity | 12,648,876 | 11,931,691 |
Class A | ||
Common stock: | ||
Common stock, value outstanding | 34 | 34 |
Class B | ||
Common stock: | ||
Common stock, value outstanding | $ 2 | $ 2 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt securities held to maturity - fair value | $ 7,529,552 | $ 7,228,268 |
Debt securities available for sale, amortized cost | 3,306,789 | 3,008,624 |
Mortgage loans - allowance for possible losses | 675 | 675 |
Equity securities - cost | $ 14,374 | $ 14,329 |
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 | 3,436,020 |
Common stock, shares outstanding (in shares) | 3,436,020 | 3,436,020 |
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 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Premiums and other revenues: | ||
Universal life and annuity contract charges | $ 37,953 | $ 38,520 |
Traditional life premiums | 17,583 | 4,145 |
Net investment income | 151,331 | 60,745 |
Other revenues | 6,413 | 4,997 |
Net realized investment gains (losses): | ||
Total other-than-temporary impairment (“OTTI”) gains (losses) | 3 | 3 |
Portion of OTTI (gains) losses recognized in other comprehensive income | (3) | (3) |
Net OTTI losses recognized in earnings | 0 | 0 |
Other net investment gains (losses) | 4,629 | 611 |
Total net realized investment gains (losses) | 4,629 | 611 |
Total revenues | 217,909 | 109,018 |
Benefits and expenses: | ||
Life and other policy benefits | 28,189 | 21,401 |
Amortization of deferred policy acquisition costs and value of business acquired | 32,164 | 32,229 |
Universal life and annuity contract interest | 80,916 | (1,818) |
Other operating expenses | 26,049 | 23,633 |
Total benefits and expenses | 167,318 | 75,445 |
Earnings before Federal income taxes | 50,591 | 33,573 |
Federal income taxes | 10,393 | 6,698 |
Net earnings | 40,198 | 26,875 |
Class A | ||
Benefits and expenses: | ||
Net earnings | $ 39,061 | $ 26,115 |
Basic earnings per share: | ||
Earnings per share, basic (in dollars per share) | $ 11.37 | $ 7.60 |
Diluted earnings per share: | ||
Earnings per share, diluted (in dollars per share) | $ 11.37 | $ 7.60 |
Class B | ||
Benefits and expenses: | ||
Net earnings | $ 1,137 | $ 760 |
Basic earnings per share: | ||
Earnings per share, basic (in dollars per share) | $ 5.68 | $ 3.80 |
Diluted earnings per share: | ||
Earnings per share, diluted (in dollars per share) | $ 5.68 | $ 3.80 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 40,198 | $ 26,875 |
Unrealized gains (losses) on securities: | ||
Net unrealized holding gains (losses) arising during period | 42,743 | (34,754) |
Net unrealized liquidity gains (losses) | 1 | 0 |
Reclassification adjustment for net amounts included in net earnings | (868) | (33) |
Net unrealized gains (losses) on securities | 41,876 | (34,787) |
Foreign currency translation adjustments | 553 | 1,168 |
Benefit plans: | ||
Amortization of net prior service cost and net gain (loss) | (504) | 2,801 |
Other comprehensive income (loss) | 41,925 | (30,818) |
Comprehensive income (loss) | $ 82,123 | $ (3,943) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Unrealized gains (losses) on non-impaired securities | 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, beginning of period at Dec. 31, 2017 | $ 36 | $ 41,716 | $ 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, net of tax | $ (34,754) | (34,787) | ||||||||
Amortization | 2 | |||||||||
Other-than-temporary impairments, non-credit, net of tax | 0 | |||||||||
Additional credit loss on previously impaired securities | 0 | |||||||||
Other-than-temporary impairments, non-credit, net of tax | 0 | |||||||||
Change in shadow deferred policy acquisition costs | (2) | 0 | ||||||||
Recoveries, net of tax | 0 | |||||||||
Change in translation adjustments during period | 1,168 | 1,168 | ||||||||
Amortization of net prior service cost and net loss, net of tax | 2,801 | 2,801 | ||||||||
Net earnings | 26,875 | 26,875 | ||||||||
Stockholder dividends | 0 | |||||||||
Total stockholders’ equity, end of period at Mar. 31, 2018 | 1,828,231 | 36 | 41,716 | $ (20,951) | (5,537) | (10) | (1) | 4,391 | (19,794) | 1,807,430 |
Total stockholders’ equity, beginning of period at Dec. 31, 2018 | 1,900,777 | 36 | 41,716 | (30,286) | (7) | (2) | 4,577 | (11,297) | 1,896,040 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Shares exercised under stock option plan | 0 | 0 | ||||||||
Change in unrealized gains (losses) during period, net of tax | 42,743 | 41,875 | ||||||||
Amortization | 2 | |||||||||
Other-than-temporary impairments, non-credit, net of tax | 0 | |||||||||
Additional credit loss on previously impaired securities | 0 | |||||||||
Other-than-temporary impairments, non-credit, net of tax | 0 | |||||||||
Change in shadow deferred policy acquisition costs | (1) | 0 | ||||||||
Recoveries, net of tax | 0 | |||||||||
Change in translation adjustments during period | 553 | 553 | ||||||||
Amortization of net prior service cost and net loss, net of tax | (504) | (504) | ||||||||
Net earnings | 40,198 | 40,198 | ||||||||
Stockholder dividends | 0 | |||||||||
Total stockholders’ equity, end of period at Mar. 31, 2019 | $ 1,982,900 | $ 36 | $ 41,716 | $ 4,910 | $ 11,589 | $ (6) | $ (2) | $ 5,130 | $ (11,801) | $ 1,936,238 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net earnings | $ 40,198 | $ 26,875 |
Adjustments to reconcile net earnings to net cash from operating activities: | ||
Universal life and annuity contract interest | 80,916 | (1,818) |
Surrender charges and other policy revenues | (8,049) | (8,988) |
Realized (gains) losses on investments | (4,629) | (611) |
Accretion/amortization of discounts and premiums, investments | 490 | 123 |
Depreciation and amortization | 4,455 | 3,021 |
(Increase) decrease in value of equity securities | (1,951) | 541 |
(Increase) decrease in value of derivatives | (42,003) | 44,394 |
(Increase) decrease in deferred policy acquisition and sales inducement costs | 20,342 | 11,673 |
(Increase) decrease in accrued investment income | (3,195) | (2,966) |
(Increase) decrease in other assets | (1,790) | (7,635) |
Increase (decrease) in liabilities for future policy benefits | (776) | 2,594 |
Increase (decrease) in other policyholder liabilities | (753) | 9,101 |
Increase (decrease) in Federal income tax liability | 19,114 | (13,451) |
Increase (decrease) in deferred Federal income tax | (8,823) | 11,864 |
Increase (decrease) in other liabilities | (4,142) | (1,844) |
Net cash provided by operating activities | 89,404 | 72,873 |
Proceeds from sales of: | ||
Debt securities available for sale | 73,257 | 0 |
Other investments | 13,193 | 140 |
Proceeds from maturities and redemptions of: | ||
Debt securities held to maturity | 137,732 | 113,157 |
Debt securities available for sale | 55,569 | 7,156 |
Derivatives, index options | 3,047 | 59,321 |
Property and equipment | 0 | 9 |
Purchases of: | ||
Debt securities held to maturity | (20,690) | (142,867) |
Debt securities available for sale | (20,474) | (126,544) |
Equity securities | (262) | (376) |
Derivatives, index options | (18,264) | (22,556) |
Other investments | (6,908) | (96) |
Property and equipment | (77) | (2,553) |
Payment to acquire businesses, net of cash acquired | (189,120) | 0 |
Principal payments on mortgage loans | 15,171 | 3,365 |
Cost of mortgage loans acquired | (17,271) | (24) |
Decrease (increase) in policy loans | 1,690 | 890 |
Net cash provided by/(used in) investing activities | 26,593 | (110,978) |
Cash flows from financing activities: | ||
Deposits to account balances for universal life and annuity contracts | 92,153 | 154,914 |
Return of account balances on universal life and annuity contracts | (248,890) | (252,988) |
Net cash provided by (used in) financing activities | (156,737) | (98,074) |
Effect of foreign exchange | 700 | 1,479 |
Net increase (decrease) in cash and cash equivalents | (40,040) | (134,700) |
Cash and cash equivalents at beginning of period | 131,976 | 217,624 |
Cash and cash equivalents at end of period | 91,936 | 82,924 |
Cash paid (received) during the period for: | ||
Interest | 19 | 10 |
Income taxes | 1 | 8,283 |
Noncash operating activities: | ||
Deferral of sales inducements | (4,105) | (3,007) |
Noncash investing activities: | ||
Contingent consideration to acquire businesses | $ 3,700 | $ 0 |
Consolidation and Basis of Pres
Consolidation and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation and Basis of Presentation | CONSOLIDATION AND BASIS OF PRESENTATION The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for annual financial statements. In the opinion of management, the accompanying Condensed Consolidated Financial Statements contain all adjustments necessary to present fairly the financial position of National Western Life Group, Inc. ("NWLGI") and its wholly owned subsidiaries (“Company”) as of March 31, 2019 , and the results of its operations and its cash flows for the three months ended March 31, 2019 and March 31, 2018 . Such adjustments are of a normal recurring nature. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the full year. It is recommended that these Condensed Consolidated Financial Statements be read in conjunction with the audited consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 which is accessible free of charge through the Company's internet site at www.nwlgi.com or the Securities and Exchange Commission internet site at www.sec.gov . The Condensed Consolidated Balance Sheet at December 31, 2018 has been derived from the audited consolidated financial statements as of that date. The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of NWLGI and its wholly owned subsidiaries: National Western Life Insurance Company ("NWLIC" or "National Western"), Regent Care San Marcos Holdings, LLC, NWL Services, Inc., and N.I.S. Financial Services, Inc. ("NIS"). National Western's wholly owned subsidiaries include The Westcap Corporation, NWL Financial, Inc., NWLSM, Inc., Braker P III, LLC, and Ozark National Life Insurance Company ("Ozark National"). The results of operations for Ozark National and NIS include the two months ended March 31, 2019, subsequent to their acquisition effective January 31, 2019. All significant intercorporate transactions and accounts have been eliminated in consolidation. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates in the accompanying Condensed Consolidated Financial Statements include: (1) liabilities for future policy benefits, (2) valuation of derivative instruments, (3) recoverability and amortization of deferred policy acquisition costs, (4) valuation allowances for deferred tax assets, (5) other-than-temporary impairment losses on debt securities, (6) commitments and contingencies, and (7) valuation allowances for mortgage loans and real estate. During the first quarter of 2019, the Company incorporated accounting estimates for business combinations, value of business acquired, and fair value measurement as a result of its acquisition of Ozark National and NIS. The table below shows the unrealized gains and losses on available-for-sale securities that were reclassified out of accumulated other comprehensive income for the three months ended March 31, 2019 and March 31, 2018 . Affected Line Item in the Statements of Earnings Amount Reclassified From Accumulated Other Comprehensive Income Three Months Ended March 31, 2019 2018 (In thousands) Other net investment gains (losses) $ 1,099 40 Net OTTI losses recognized in earnings — — Earnings before Federal income taxes 1,099 40 Federal income taxes 231 7 Net earnings $ 868 33 |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS Recent accounting pronouncements not yet adopted On April 25, 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments . The amendments in this Update add clarification and correction to various aspects of the following guidance previously issued related to financial instruments, based on feedback from stakeholders. A. ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Areas for improvement . The amendments clarify guidance and implementation around accrued interest, transfers between classifications or categories for loans and debt securities, consideration of recoveries in estimating allowances, reinsurance recoveries, consideration of prepayments and estimated costs to sell when foreclosure is probable. Additionally, the amendments correct certain cross-references. B. ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Liabilities. The amendments clarify the scope of the original Update, and add clarification on the guidance and implementation around fair value disclosure requirements for nonpublic entities, measurement alternatives for equity securities without readily determinable fair values at nonrecurring fair value measurement, remeasurement of equity securities without readily determinable fair values at historical exchange rates, and associated disclosure requirements. C. ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The amendments clarify the guidance and implementation around partial-term fair value hedges of interest rate risk, amortization of fair value hedge basis adjustments, disclosure of fair value hedge basis adjustments, consideration of the hedged contractually specified interest rate under the hypothetical derivative method, scope for nonpublic entities, and application of a first-payments-received cash flow hedging technique to overall cash flows on a group of variable interest payments. The amendments contained in this update will be effective for the same fiscal years in which the original ASU becomes effective, or, if already implemented, annual periods beginning after the issuance of this update. The Company will be primarily affected by the clarifications provided to ASU 2016-13, which is still pending adoption. 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. Adoption of the guidance is not expected to have a material effect on the Company’s results of operations or financial position. 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. Adoption of the guidance is not expected to have a material effect on the Company’s results of operations or financial position. 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. Recent accounting pronouncements adopted 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 are required to provide an analysis of changes in each caption of stockholders’ equity and noncontrolling interests, which will 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 adoption of this ASU in 2019 did not have a material effect on the results of operations or financial position of the Company as this information in year-to-date format is already provided. 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. The adoption of this ASU in 2019 did not have a material effect on the results of operations or financial position of the Company. 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. The Company elected to early adopt this guidance in 2018. There was no material impact to the Company’s financial position, results of operations or cash flows as the result of the adoption of this ASU in 2018. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY NWLIC is restricted by state insurance laws as to dividend amounts which may be paid to stockholders without prior approval from the Colorado Division of Insurance. The restrictions are based on the lesser of statutory earnings from operations, excluding capital gains, from the prior calendar year or 10% of statutory surplus of the company as of the previous calendar year-end. Under these guidelines the maximum dividend payment which may be made without prior approval in 2019 is $30.7 million . As the sole owner of NWLIC, all dividends declared by National Western are payable entirely to NWLGI and are eliminated in consolidation. Ozark National is similarly restricted under the state insurance laws of Missouri as to dividend amounts which may be paid to stockholders without prior approval to the greater of 10% of the statutory surplus of the company from the prior year-end or the company's net gain from operations, excluding capital gains, from the prior calendar year. Based upon this restriction, the maximum dividend payment which may be made in 2019 without prior approval is $20.4 million . As part of the Stock Purchase Agreement dated October 3, 2018, by and between NWLIC and Ozark National's previous owner, the Missouri Department of Insurance granted approval for an extraordinary dividend of $102.7 million to be paid to the prior owner concurrent with the closing of the transaction effective January 31, 2019. Consequently, any additional dividends during 2019 will require prior approval of the Missouri Department of Insurance. As the sole owner of Ozark National, all dividends declared by Ozark National going forward are payable entirely to NWLIC and are eliminated in consolidation. In the first quarter of 2019, National Western declared and paid a $32.0 million dividend to NWLGI the proceeds of which were used as part of the cash purchase of NIS. In the first quarter of 2018, National Western declared and paid a $3.0 million dividend to NWLGI. Ozark National did not declare or pay cash dividends on its shares during the two month period ended March 31, 2019. NWLGI did not declare or pay cash dividends on its common shares during the three months ended March 31, 2019 and 2018 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
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. 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). Three Months Ended March 31, 2019 2018 Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net income $ 40,198 26,875 Dividends - Class A shares — — Dividends - Class B shares — — Undistributed earnings $ 40,198 26,875 Allocation of net income: Dividends $ — — — — Allocation of undistributed income 39,061 1,137 26,115 760 Net earnings $ 39,061 1,137 26,115 760 Denominator: Basic earnings per share - weighted-average shares 3,436 200 3,436 200 Effect of dilutive stock options — — — — Diluted earnings per share - adjusted weighted-average shares for assumed conversions 3,436 200 3,436 200 Basic Earnings Per Share $ 11.37 5.68 7.60 3.80 Diluted Earnings Per Share $ 11.37 5.68 7.60 3.80 |
Pension and Other Postretiremen
Pension and Other Postretirement Plans | 3 Months Ended |
Mar. 31, 2019 | |
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 comply 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 a credit for service, future qualified defined benefit plan expense is projected to be minimal. Fair values of plan assets and liabilities are measured as of the prior December 31 for each year. The following table summarizes the components of net periodic benefit cost. Three Months Ended March 31, 2019 2018 (In thousands) Service cost $ 24 28 Interest cost 210 225 Expected return on plan assets (272 ) (325 ) Amortization of prior service cost — — Amortization of net loss 165 131 Net periodic benefit cost $ 127 59 The service cost shown above for each period 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. The Company's minimum required contribution for the 2019 plan year is $0.4 million . There was $0.5 million in planned contributions remaining for the 2018 plan year as of March 31, 2019 . As of March 31, 2019 , the Company had made $0.0 million in contributions to the plan for the 2019 plan year. The components of net periodic benefit cost including service cost are reported in the line item “Other operating expenses” in the income statement. 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 the plan to allow an additional employee to participate and to change the benefit formula for the then Chairman of the Company. As previously mentioned, these additional obligations are a liability to the company. Effective December 31, 2004, this plan was frozen with respect to the continued accrual of benefits of the 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. The following table summarizes the components of net periodic benefit costs for the non-qualified defined benefit plans. Three Months Ended March 31, 2019 2018 (In thousands) Service cost $ 125 90 Interest cost 256 213 Amortization of prior service cost 15 15 Amortization of net loss 348 176 Net periodic benefit cost $ 744 494 The Company expects to contribute $2.0 million to these plans in 2019 . As of March 31, 2019 , the Company has contributed $0.4 million to the plans. The components of net periodic benefit cost including service cost are reported in the line item “Other operating expenses” in the income statement. Ozark National and NIS have no defined benefit plans. (B) Postretirement Employment Plans Other Than Pension National Western sponsors two healthcare plans that were amended in 2004 to provide postretirement benefits to certain fully-vested individuals. The plan is unfunded. The following table summarizes the components of net periodic benefit costs. Three Months Ended March 31, 2019 2018 (In thousands) Interest cost $ 49 40 Amortization of prior service cost 13 26 Amortization of net loss 61 37 Net periodic benefit cost $ 123 103 The Company expects to contribute minimal amounts to the plan in 2019 . Ozark National and NIS do not offer postemployment benefits. |
Segment and Other Operating Inf
Segment and Other Operating Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Other Operating Information | SEGMENT AND OTHER OPERATING INFORMATION The Company defines its reportable operating segments as domestic life insurance, international life insurance, annuities, and acquired companies. These segments are organized based on product types, geographic marketing areas, and business groupings. Ozark National and NIS have been combined into the segment "Acquired Businesses" given its inter-related marketing and sales approach which consists of a coordinated sale of a non-participating whole life insurance product (Ozark National) and a mutual fund investment product (NIS). As disclosed in the Company's filings for 2018, National Western discontinued accepting applications for the Company's international products from foreign residents in May 2018. A fifth category "All Others" primarily includes investments and earnings of non-operating subsidiaries as well as other remaining investments and assets not otherwise supporting specific segment operations. A summary of segment information as of March 31, 2019 and December 31, 2018 for the Condensed Consolidated Balance Sheet items and for the three months ended March 31, 2019 and March 31, 2018 for the Condensed Consolidated Statement of Earnings is provided below. Condensed Consolidated Balance Sheet Items: March 31, 2019 Domestic International Annuities Acquired Businesses All Totals (In thousands) Deferred policy acquisition costs, sales inducements, and value of business acquired $ 118,471 231,166 567,505 146,374 — 1,063,516 Total segment assets 1,243,412 1,185,862 8,569,375 940,933 366,626 12,306,208 Future policy benefits 1,075,603 890,562 7,691,496 694,793 — 10,352,454 Other policyholder liabilities 18,156 14,700 101,485 14,468 — 148,809 December 31, 2018 Domestic International Annuities Acquired Businesses All Totals (In thousands) 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 Consolidated Statement of Earnings: Three Months Ended March 31, 2019 Domestic Life Insurance International Life Insurance Annuities Acquired Businesses All Others Totals (In thousands) Premiums and contract revenues $ 10,804 26,063 4,868 13,801 — 55,536 Net investment income 23,499 14,017 103,154 3,976 6,685 151,331 Other revenues 44 21 8 1,441 4,899 6,413 Total revenues 34,347 40,101 108,030 19,218 11,584 213,280 Life and other policy benefits 3,922 2,162 11,430 10,675 — 28,189 Amortization of deferred policy acquisition costs and value of business acquired 3,410 7,294 19,712 1,748 — 32,164 Universal life and annuity contract interest 21,441 11,993 47,482 — — 80,916 Other operating expenses 4,123 4,264 7,508 3,085 7,069 26,049 Federal income taxes (benefit) 324 3,208 4,883 747 259 9,421 Total expenses 33,220 28,921 91,015 16,255 7,328 176,739 Segment earnings (loss) $ 1,127 11,180 17,015 2,963 4,256 36,541 Three Months Ended March 31, 2018 Domestic Life Insurance International Life Insurance Annuities Acquired Businesses All Others Totals (In thousands) Premiums and contract revenues $ 9,601 27,917 5,147 — — 42,665 Net investment income 663 1,971 53,543 — 4,568 60,745 Other revenues — 30 19 — 4,948 4,997 Total revenues 10,264 29,918 58,709 — 9,516 108,407 Life and other policy benefits 4,809 5,728 10,864 — — 21,401 Amortization of deferred acquisition costs 2,675 7,380 22,174 — — 32,229 Universal life and annuity contract interest (2,861 ) (1,150 ) 2,193 — — (1,818 ) Other operating expenses 5,147 5,381 7,935 — 5,170 23,633 Federal income taxes (benefit) 98 2,507 3,098 — 867 6,570 Total expenses 9,868 19,846 46,264 — 6,037 82,015 Segment earnings (loss) $ 396 10,072 12,445 — 3,479 26,392 Reconciliations of segment information to the Company's Condensed Consolidated Financial Statements are provided below. Three Months Ended March 31, 2019 2018 (In thousands) Premiums and Other Revenues : Premiums and contract revenues $ 55,536 42,665 Net investment income 151,331 60,745 Other revenues 6,413 4,997 Realized gains (losses) on investments 4,629 611 Total condensed consolidated premiums and other revenues $ 217,909 109,018 Three Months Ended March 31, 2019 2018 (In thousands) Federal Income Taxes : Total segment Federal income taxes $ 9,421 6,570 Taxes on realized gains (losses) on investments 972 128 Total condensed consolidated Federal income taxes $ 10,393 6,698 Three Months Ended March 31, 2019 2018 (In thousands) Net Earnings : Total segment earnings $ 36,541 26,392 Realized gains (losses) on investments, net of taxes 3,657 483 Total condensed consolidated net earnings $ 40,198 26,875 March 31, December 31, 2019 2018 (In thousands) Assets : Total segment assets $ 12,306,208 11,588,481 Other unallocated assets 342,668 343,210 Total condensed consolidated assets $ 12,648,876 11,931,691 |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | SHARE-BASED PAYMENTS The Company had a stock and incentive plan ("1995 Plan") which provided for the grant of any or all of the following types of awards to eligible employees: (1) stock options, including incentive stock options and nonqualified stock options; (2) stock appreciation rights ("SARs"), 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 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. 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 SARs 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 common 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 shares 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 which are paid at the closing price of the Company's Class A common shares on the vesting date. PSU awards covering the three year measurement period ended December 31, 2018 were paid out in March of 2019. The performance factor during the measurement period used to determine compensation payouts was 93.86% of the pre-defined metric target. Directors of the Company are eligible to receive RSUs under the Incentive Plan. 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 shares at that time. No awards were granted to officers and directors during the three months ended March 31, 2019 and 2018 . The Company uses the current fair value method to measure compensation cost for awards granted under the share-based plans. As of March 31, 2019 and December 31, 2018 , the liability balance was $7.9 million and $11.9 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, 2019 291,000 — $ — Exercised — — $ — Forfeited — — $ — Expired — — $ — Stock options granted — — $ — Balance at March 31, 2019 291,000 — $ — Liability Awards SAR RSU PSU Other Share/Unit Awards: Balance at January 1, 2019 89,443 13,170 19,122 Exercised — (3,051 ) (5,426 ) Forfeited (543 ) (200 ) (401 ) Granted — — — Balance at March 31, 2019 88,900 9,919 13,295 Stock options, SARs, RSUs, and PSUs shown as forfeited in the above tables represent vested and unvested awards not exercised by plan participants prior to their termination from the Company. Forfeited stock options, if any, are not shown as being added back to the "Shares Available For Grant" balance as they were awarded under the 1995 Plan which was terminated during calendar year 2010. The total intrinsic value of share-based compensation exercised was $2.5 million and $1.5 million for the three months ended March 31, 2019 and 2018 , respectively. The total share-based compensation paid was $2.5 million and $1.5 million for the three months ended March 31, 2019 and 2018 , respectively. The total fair value of stock options, SARs, RSUs, and PSUs vested during the three months ended March 31, 2019 and 2018 was $3.0 million and $0.8 million , respectively. For the three months ended March 31, 2019 and 2018 , the total cash received from the exercise of stock options under the Plans was $0.0 million and $0.0 million , respectively. The following table summarizes information about SARs outstanding at March 31, 2019 . There were no options outstanding as of March 31, 2019 . SARs Outstanding Number Outstanding Weighted- Average Remaining Contractual Life Number Exercisable Exercise prices: $132.56 19,568 2.7 years 19,568 $210.22 25,000 4.7 years 16,400 $216.48 11,649 6.9 years 11,649 $311.16 10,338 7.8 years 6,929 $310.55 203 8.1 years 67 $334.34 9,841 8.6 years 3,329 $303.77 12,301 9.7 years — Totals 88,900 57,942 Aggregate intrinsic value (in thousands) $ 4,384 $ 3,935 The aggregate intrinsic value in the table above is based on the closing Class A stock price of $ 262.47 per share on March 31, 2019 . In estimating the fair value of the share-based awards outstanding at March 31, 2019 and December 31, 2018 , the Company employed the Black-Scholes option pricing model with assumptions detailed below. March 31, December 31, Expected term 2.7 to 9.7 years 3.0 to 10.0 years Expected volatility weighted-average 22.17 % 22.14 % Expected dividend yield 0.14 % 0.12 % Risk-free rate weighted-average 2.35 % 2.58 % The Company reviewed the contractual term relative to the SARs 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 cost/(benefit) recognized in the financial statements related to these plans was $(1.5) million and $(0.5) million for the three months ended March 31, 2019 and 2018, respectively. The related tax expense/(benefit) recognized was $0.3 million and $0.1 million for the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019 , the total compensation cost related to non-vested share-based awards not yet recognized was $4.8 million . This amount is expected to be recognized over a weighted-average period of 1.4 years |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES (A) Legal Proceedings In the normal course of business, the Company is involved or may become involved in various legal actions in which claims for alleged economic and punitive damages have been or may be asserted, some for substantial amounts. In recent years, carriers offering life insurance and annuity products have faced litigation, including class action lawsuits, alleging improper product design, improper sales practices, and similar claims. Given the uncertainty involved in these types of actions, the ability to make a reliable evaluation of the likelihood of an unfavorable outcome or an estimate of the amount of or range of potential loss is endemic to the particular circumstances and evolving developments of each individual matter on its own merits. On 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. National Western recently defended a two week jury trial in which it was alleged that the Company committed actionable Financial Elder Abuse in its issuance of a $100,000 equity indexed annuity to the Plaintiff in the case of Williams v Pantaleoni et al , Case No. 17CV03462, Butte County California Superior Court. No final judgment has been issued in the case. The jury verdict awarded $364,499 as compensatory damages on the claim of Financial Elder Abuse and $2.5 million in punitive damages on said claim. There was also an allocated award of $420,608 against the Company for general negligence. The separate awards are not cumulative and a final award based on the separate verdict awards must be determined by the court which will likely result in a verdict equaling approximately $2.92 million . Plaintiff also intends to pursue an award of attorney's fees and costs in the amount of approximately $1 million for a net potential recovery of approximately $4 million . The Company intends to vigorously dispute the verdicts and the amounts awarded in post-trial motions. The Company will also protect its appellate rights pending a final judgment. Although there can be no assurances, at the present time, the Company does not anticipate that the ultimate liability arising from such other potential, pending, or threatened legal actions will have a material adverse effect on the financial condition or operating results of the Company. Separately, 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 Condensed Consolidated Balance Sheets. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amounts, assuming that the amounts are fully advanced and that collateral or other security is of no value. Commitments to extend credit are legally binding agreements to lend to a customer that generally have fixed expiration dates or other termination clauses and may require payment of a fee. Commitments do not necessarily represent future liquidity requirements, as some could expire without being drawn upon. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The Company controls the credit risk of these transactions through credit approvals, limits, and monitoring procedures. The Company had $16.0 million commitments to fund new loans and $2.9 million in commitments to extend credit relating to existing loans at March 31, 2019 |
Investments
Investments | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS (A) Investment Gains and Losses The table below presents realized investment gains and losses, excluding impairment losses, for the periods indicated. Three Months Ended March 31, 2019 2018 (In thousands) Available for sale debt securities: Realized gains on disposal $ 1,183 40 Realized losses on disposal (84 ) — Held to maturity debt securities: Realized gains on disposal 27 571 Realized losses on disposal — — Equity securities realized gains (losses) — — Real estate gains (losses) 3,503 — Totals $ 4,629 611 Disposals in the held to maturity category during the periods shown represent calls initiated by the credit issuer of the debt security. It is the Company's policy to initiate disposals of debt securities in the held to maturity category only in instances in which the credit status of the issuer comes into question and the realization of all or a significant portion of the investment principal of the holding is deemed to be in jeopardy. Net real estate gains for the quarter ended March 31, 2019 pertain to the Company's sale of its nursing home operations in Reno, Nevada, and its pending sale of nursing home operations in San Marcos, Texas. The sale of the Reno nursing home was completed effective February 1, 2019 and a gain of $5.7 million was realized on the sale of the land and building associated with the operation. The sale of the San Marcos nursing home was concluded effective May 1, 2019. As of March 31, 2019, the Company recorded a loss of $2.2 million associated with the land and building of this operation based upon the agreed upon allocation of the purchase price. The Company uses the specific identification method in computing realized gains and losses. For the three months ended March 31, 2019 and 2018 the percentage of gains on bonds due to the call of securities was 41.4% and 99.0% , respectively. This includes calls out of the Company's available for sale portfolio of debt securities. The table below presents net impairment losses recognized in earnings for the periods indicated. Three Months Ended March 31, 2019 2018 (In thousands) Total other-than-temporary impairment gains (losses) on debt securities $ 3 3 Portion of loss (gain) recognized in comprehensive income (3 ) (3 ) Net impairment losses on debt securities recognized in earnings — — Equity securities impairments — Totals $ — — The table below presents a roll forward of credit losses on securities for which the Company also recorded non-credit other-than-temporary impairments in other comprehensive loss. Three Months Ended March 31, 2019 Year Ended (In thousands) Beginning balance, cumulative credit losses related to other-than-temporary impairments $ 627 627 Reductions for securities sold during current period — — Additions for credit losses not previously recognized in other-than-temporary impairments — — Ending balance, cumulative credit losses related to other-than-temporary impairments $ 627 627 (B) Debt Securities The table below presents amortized costs and fair values of debt securities held to maturity at March 31, 2019 . Debt Securities Held to Maturity Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: U.S. agencies $ 130,883 678 — 131,561 U.S. Treasury 3,767 126 — 3,893 States and political subdivisions 476,164 14,195 (136 ) 490,223 Foreign governments 1,159 38 — 1,197 Public utilities 911,697 13,595 (2,366 ) 922,926 Corporate 4,741,367 79,305 (20,304 ) 4,800,368 Commercial mortgage-backed 3,051 21 — 3,072 Residential mortgage-backed 1,157,197 20,439 (5,026 ) 1,172,610 Asset-backed 3,640 65 (3 ) 3,702 Totals $ 7,428,925 128,462 (27,835 ) 7,529,552 The table below presents amortized costs and fair values of debt securities available for sale at March 31, 2019 . Debt Securities Available for Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: States and political subdivisions $ 100,491 1,864 — 102,355 Foreign governments 9,976 194 — 10,170 Public utilities 80,923 2,095 (148 ) 82,870 Corporate 2,977,002 44,619 (23,080 ) 2,998,541 Commercial mortgage-backed 33,027 485 — 33,512 Residential mortgage-backed 15,212 1,025 (120 ) 16,117 Asset-backed 90,158 825 (63 ) 90,920 Totals $ 3,306,789 51,107 (23,411 ) 3,334,485 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 Asset-backed 3,889 88 (10 ) 3,967 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 . 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 Asset-backed 5,969 193 — 6,162 Totals $ 3,008,624 17,678 (80,243 ) 2,946,059 The Company does not consider securities to be other-than-temporarily impaired when 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 March 31, 2019 . The Company monitors the investment portfolio on an ongoing basis for any changes in issuer facts and circumstances that could result in future impairments. During the three months ended March 31, 2019 , the Company recorded no other-than-temporary impairment on debt securities. Unrealized losses for debt securities held to maturity and debt securities available for sale decreased during the first three months of 2019 primarily due to the downward movement in market interest rates during this period (which increases the market price of debt securities). Debt Securities balances at March 31, 2019 include Ozark National holdings of $265.2 million in held to maturity and $392.5 million in available for sale. As part of the acquisition effective January 31, 2019 the Company employed purchase accounting procedures in accordance with GAAP which revalued the acquired investment portfolio to their fair values as of the date of the acquisition. These fair values became the book values for Ozark National from that point going forward. Accordingly, unrealized gains and losses for the Ozark National debt securities represent the changes subsequent to the purchase accounting book values established at January 31, 2019. The following table shows the gross unrealized losses and fair values of the Company's held to maturity debt securities by investment category and length of time the individual securities have been in a continuous unrealized loss position at March 31, 2019 . Debt Securities Held to Maturity Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Debt securities: States and political subdivisions 2,925 (3 ) 8,533 (133 ) 11,458 (136 ) Public utilities 5,332 (34 ) 193,680 (2,332 ) 199,012 (2,366 ) Corporate 75,247 (930 ) 1,126,912 (19,374 ) 1,202,159 (20,304 ) Residential mortgage-backed 5,626 (7 ) 313,590 (5,019 ) 319,216 (5,026 ) Asset-backed — — 1,862 (3 ) 1,862 (3 ) Total $ 89,130 (974 ) 1,644,577 (26,861 ) 1,733,707 (27,835 ) The following table shows the gross unrealized losses and fair values of the Company's available for sale debt securities by investment category and length of time the individual securities have been in a continuous unrealized loss position at March 31, 2019 . Debt 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: Public utilities — — 9,844 (148 ) 9,844 (148 ) Corporate 52,799 (1,597 ) 827,900 (21,483 ) 880,699 (23,080 ) Residential mortgage-backed — — 841 (120 ) 841 (120 ) Asset-backed 8,470 (63 ) — — 8,470 (63 ) Total $ 61,269 $ (1,660 ) $ 838,585 $ (21,751 ) $ 899,854 $ (23,411 ) 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: States 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 ) Asset-backed — — 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 that 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: States 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 ) Debt securities. The gross unrealized losses for debt securities are made up of 306 individual issues, or 19.9% of the total debt securities held by the Company at March 31, 2019 . The market value of these bonds as a percent of amortized cost approximates 98.1% . Of the 306 securities, 273 , or 89.2% , fall in the 12 months or greater aging category; and 298 were rated investment grade at March 31, 2019 . The amortized cost and fair value of investments in debt securities at March 31, 2019 , 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 $ 173,689 176,102 390,291 394,159 Due after 1 year through 5 years 1,112,653 1,128,539 3,016,887 3,066,168 Due after 5 years through 10 years 1,701,123 1,705,183 2,451,482 2,469,058 Due after 10 years 180,927 184,112 406,377 420,783 3,168,392 3,193,936 6,265,037 6,350,168 Mortgage and asset-backed securities 138,397 140,549 1,163,888 1,179,384 Total $ 3,306,789 3,334,485 7,428,925 7,529,552 (C) Transfer of Securities During the three months ended March 31, 2019 the Company made no transfers from the held to maturity category to securities available for sale. (D) Mortgage Loans and Real Estate A financing receivable is a contractual right to receive money on demand or on fixed or determinable dates that is recognized as an asset in a company's statement of financial position. The Company's mortgage, participation and mezzanine loans on real estate are the only financing receivables included in the Condensed Consolidated Balance Sheets. 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 proved to result in quality mortgage loans with few defaults. Mortgage loan interest income is recognized on an accrual basis with any premium or discount amortized over the life of the loan. Prepayment and late fees are recorded on the date of collection. Loans in foreclosure, loans considered impaired or loans past due 90 days or more are placed on a non-accrual status. If a mortgage loan is determined to be on non-accrual status, the mortgage loan does not accrue any revenue into the Condensed Consolidated Statements of Earnings. The loan is independently monitored and evaluated as to potential impairment or foreclosure. If delinquent payments are made and the loan is brought current, then the Company returns the loan to active status and accrues income accordingly. The Company had no mortgage loans past due 90 days or more at March 31, 2019 or 2018 and as a result all interest income was recognized at March 31, 2019 and 2018 . The following table represents the mortgage loan portfolio by loan-to-value ratio. March 31, 2019 December 31, 2018 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Loan-to-Value Ratio (1): Less than 50% $ 59,797 29.0 $ 66,371 32.6 50% to 60% 37,904 18.4 22,610 11.1 60% to 70% 96,435 46.8 102,857 50.4 70% to 80% 6,566 3.2 6,642 3.3 80% to 90% 5,341 2.6 5,375 2.6 Greater than 90% — — — — Gross balance 206,043 100.0 203,855 100.0 Allowance for possible losses (675 ) (0.3 ) (675 ) (0.3 ) Totals $ 205,368 99.7 $ 203,180 99.7 (1) Loan-to-Value Ratio is determined using the most recent appraised value. Appraisals are required at the time of funding and may be updated if a material change occurs from the original loan agreement. All mortgage loans are analyzed quarterly in order to monitor the financial quality of these assets. Based on ongoing monitoring, mortgage loans with a likelihood of becoming delinquent are identified and placed on an internal “watch list”. Among the criteria that may indicate a potential problem include: major tenant vacancies or bankruptcies, late payments, and loan relief/restructuring requests. The mortgage loan portfolio is analyzed for the need for a valuation allowance on any loan that is on the internal watch list, in the process of foreclosure or that currently has a valuation allowance. Mortgage loans are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. When it is determined that a loan is impaired, a loss is recognized for the difference between the carrying amount of the mortgage loan and the estimated value reduced by the cost to sell. Estimated value is typically based on the loan's observable market price or the fair value of the collateral less cost to sell. Impairments and changes in the valuation allowance are reported in net realized investment gains (losses) in the Condensed Consolidated Statements of Earnings. The following table represents the mortgage loan allowance for the periods shown. March 31, 2019 December 31, 2018 (In thousands) Balance, beginning of period $ 675 650 Provision — 25 Releases — — Balance, end of period $ 675 675 The Company's direct investments in real estate are not a significant portion of its total investment portfolio and totaled approximately $40.1 million and $35.7 million at March 31, 2019 and December 31, 2018 , respectively. Included in the amount at March 31, 2019 is a surface parking property owned by Ozark National which it leases. The value of this real estate investment was appraised at $4.3 million at January 31, 2019 as part of the purchase accounting done as of that date. The Company recognized operating income on real estate properties of approximately $0.6 million and $0.5 million for the first three months of 2019 and 2018 |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
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 Condensed Consolidated Balance Sheets are categorized as follows: Level 1: Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. These generally provide the most reliable evidence and are used to measure fair value whenever available. The Company's Level 1 assets are equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets. Level 2: Fair value is based upon significant inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable for substantially the full term of the asset or liability through corroboration with observable market data as of the reporting date. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, model-derived valuations whose inputs are observable or whose significant value drivers are observable and other observable inputs. The Company’s Level 2 assets include fixed maturity debt securities (corporate and private bonds, government or agency securities, asset-backed and mortgage-backed securities). 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, certain product-related embedded derivatives, and contingent consideration in the acquisition of businesses. Valuations are estimated based on non-binding broker prices or internally developed valuation models or methodologies, discounted cash flow models and other similar techniques. The following tables set forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of the date indicated: March 31, 2019 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available for sale $ 3,334,485 — 3,334,485 — Equity securities 19,196 19,196 — — Derivatives, index options 71,001 — — 71,001 Total assets $ 3,424,682 19,196 3,334,485 71,001 Policyholder account balances (a) $ 86,127 — — 86,127 Other liabilities (b) 11,598 — — 11,598 Total liabilities $ 97,725 — — 97,725 During the three months ended March 31, 2019 , the Company made no transfers into or out of Levels 1, 2 or 3. 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, available for sale 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 (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 and contingent consideration for businesses acquired. The following tables present, by pricing source and fair value hierarchy level, the Company’s assets that are measured at fair value on a recurring basis: March 31, 2019 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available for sale: Priced by third-party vendors $ 3,334,485 — 3,334,485 — Priced internally — — — — Subtotal 3,334,485 — 3,334,485 — Equity securities: Priced by third-party vendors 19,196 19,196 — — Priced internally — — — — Subtotal 19,196 19,196 — — Derivatives, index options: Priced by third-party vendors 71,001 — — 71,001 Priced internally — — — — Subtotal 71,001 — — 71,001 Total $ 3,424,682 19,196 3,334,485 71,001 Percent of total 100.0 % 0.6 % 97.3 % 2.1 % December 31, 2018 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, 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, available for sale: 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 following tables provide additional information about fair value measurements for which significant unobservable (Level 3) inputs were utilized to determine fair value. Three Months Ended March 31, 2019 Debt Securities, Available for Sale Equity Securities Derivatives, Index Options Total Assets Other Liabilities (In thousands) Balance at January 1, 2019 $ — — 14,684 14,684 56,704 Total realized and unrealized gains (losses): Included in net income — — 42,003 42,003 25,529 Purchases, sales, issuances and settlements, net: Purchases — — 17,592 17,592 17,592 Sales — — — — — Issuances — — — — 3,700 Settlements — — (3,278 ) (3,278 ) (5,800 ) Transfers into (out of) Level 3 — — — — — Balance at end of period $ — — 71,001 71,001 97,725 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: Net investment income $ — — 40,464 40,464 — Benefits and expenses — — — — 38,961 Total $ — — 40,464 40,464 38,961 Three Months Ended March 31, 2018 Debt Securities, Available for Sale Equity Securities, Available for Sale Derivatives, Index Options Total Assets Other Liabilities (In thousands) Balance at January 1, 2018 $ — — 194,731 194,731 226,401 Total realized and unrealized gains (losses): Included in net income — — (44,394 ) (44,394 ) (43,428 ) Purchases, sales, issuances and settlements, net: Purchases — — 22,376 22,376 22,376 Sales — — — — — Issuances — — — — — Settlements — — (56,357 ) (56,357 ) (57,847 ) Transfers into (out of) Level 3 — — — — — Balance at end of period $ — — 116,356 116,356 147,502 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: Net investment income $ — — (44,337 ) (44,337 ) — Benefits and expenses — — — — (44,880 ) Total $ — — (44,337 ) (44,337 ) (44,880 ) The following table presents the valuation method for financial assets and liabilities categorized as level 3, as well as the unobservable inputs used in the valuation of those financial instruments: March 31, 2019 Fair Value Valuation Technique Unobservable Input (In thousands) Derivatives, index options $ 71,001 Broker prices Implied volatility Inputs from broker proprietary models Total assets $ 71,001 Policyholder account balances $ 86,127 Deterministic cash flow model Projected option cost Other liabilities, share-based compensation 7,898 Black-Scholes model Expected term, Forfeiture assumptions Other liabilities, contingent consideration on businesses acquired 3,700 Probabilistic Method Projected renewal premium Total liabilities $ 97,725 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 model Expected term Forfeiture assumptions Total liabilities $ 56,704 Realized gains (losses) on debt securities are reported in the Condensed 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 the stockholders' equity section of the Condensed Consolidated Balance Sheet. Effective January 1, 2018, the change in fair value of equity securities is reported in the Condensed Consolidated Statement of Earnings as 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. The carrying amounts and fair values of the Company's financial instruments are as follows: March 31, 2019 Fair Value Hierarchy Level Carrying Values Fair Values Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities held to maturity $ 7,428,925 7,529,552 — 7,527,650 1,902 Debt securities available for sale 3,334,485 3,334,485 — 3,334,485 — Cash and cash equivalents 91,936 91,936 91,936 — — Mortgage loans 205,368 205,486 — — 205,486 Policy loans 81,162 119,559 — — 119,559 Other loans 19,133 19,423 — — 19,423 Derivatives, index options 71,001 71,001 — — 71,001 Equity securities 19,196 19,196 19,196 — — Life interest in Libbie Shearn Moody Trust 8,692 12,775 — — 12,775 LIABILITIES Deferred annuity contracts $ 7,337,921 6,207,730 — — 6,207,730 Immediate annuity and supplemental contracts 405,313 419,032 — — 419,032 Contingent consideration on businesses acquired 3,700 3,700 — — 3,700 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 |
Derivative Investments
Derivative Investments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Investments | DERIVATIVE INVESTMENTS Fixed-index products provide traditional fixed annuities and universal life contracts with the option to have credited interest rates linked in part to an underlying equity index or a combination of equity indices. The equity return component of such policy contracts is identified separately and accounted for in future policy benefits as embedded derivatives on the Condensed Consolidated Balance Sheets. The remaining portions of these policy contracts are considered the host contracts and are recorded separately as fixed annuity or universal life contracts. The host contracts are accounted for under debt instrument type accounting in which future policy benefits are recorded as discounted debt instruments and accreted, using the effective yield method, to their minimum account values at their projected maturities or termination dates. The Company purchases over-the-counter index options, which are derivative financial instruments, to hedge the equity return component of its fixed-index annuity and life products. The index options act as hedges to match closely the returns on the underlying index or indices. The amounts which may be credited to policyholders are linked, in part, to the returns of the underlying index or indices. As a result, changes to policyholders' liabilities are substantially offset by changes in the value of the options. Cash is exchanged upon purchase of the index options and no principal or interest payments are made by either party during the option periods. Upon maturity or expiration of the options, cash may be paid to the Company depending on the performance of the underlying index or indices and terms of the contract. The Company does not elect hedge accounting relative to these derivative instruments. The index options are reported at fair value in the accompanying Condensed Consolidated Financial Statements. The changes in the values of the index options and the changes in the policyholder liabilities are both reflected in the Condensed Consolidated Statements of Earnings. Any changes relative to the embedded derivatives associated with policy contracts are reflected in contract interest in the Condensed Consolidated Statements of Earnings. Any gains or losses from the sale or expiration of the options, as well as period-to-period changes in values, are reflected as net investment income in the Condensed Consolidated Statements of Earnings. Although there is credit risk in the event of nonperformance by counterparties to the index options, the Company does not expect any of its counterparties to fail to meet their obligations, given their high credit ratings. In addition, credit support agreements are in place with all counterparties for option holdings in excess of specific limits, which may further reduce the Company's credit exposure. The tables below present the fair value of derivative instruments as of March 31, 2019 and December 31, 2018 , respectively. March 31, 2019 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 $ 71,001 Fixed-index products Universal Life and Annuity Contracts $ 86,127 Total $ 71,001 $ 86,127 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 The table below presents the effect of derivative instruments in the Condensed Consolidated Statements of Earnings for the three months ended March 31, 2019 and 2018 . March 31, March 31, Derivatives Not Designated As Hedging Instruments Location of Gain or (Loss) Recognized In Income on Derivatives Amount of Gain or (Loss) Recognized in Income on Derivatives (In thousands) Equity index options Net investment income $ 42,003 (44,394 ) Fixed-index products Universal life and annuity contract interest (27,032 ) 42,885 $ 14,971 (1,509 ) |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS Effective January 31, 2019, the Company acquired 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). In addition to the cash price paid, National Western has a contingent liability for an "earn-out payment" based upon the persistency of Ozark National's in force business that was acquired achieving thresholds as specified in the Stock Purchase Agreement ("Agreement"). The earn-out payment from the Company to the seller per the Agreement has a maximum limit of $5.0 million . Using a probabilistic method for valuing contingent consideration, the Company at January 31, 2019 recorded a liability of $3.7 million representing the estimated fair value of the additional consideration estimated to be paid as part of the acquisition. In addition to the purchase price, the Company incurred $3.2 million of acquisition-related costs in the three months ended March 31, 2019, and an additional $1.0 million in acquisition-related costs during the year ended December 31, 2018. In accordance with GAAP, these costs are included in other operating expenses in the Condensed Consolidated Statements of Earnings and are not considered a part of the purchase price. The acquisition has been accounted for in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations . Purchase accounting, as defined by ASC 805, requires that the assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The fair values shown below were determined based on management’s best estimates, employing fair valuation methodologies commonly utilized in preparing financial statements in accordance with GAAP, and are subject to revision for one year following the acquisition date. The excess of the purchase price paid above net tangible assets acquired has been assigned to intangible assets and goodwill. The following table presents the fair values of the net assets acquired as of January 31, 2019. January 31, 2019 Assets Fair value (In thousands) Debt securities held to maturity $ 261,059 Debt securities available for sale 400,719 Policy loans 28,128 Real estate 4,600 Cash and cash equivalents 16,275 Accrued investment income 6,116 Value of business acquired 147,319 Reinsurance recoverables 21,910 Other intangible assets 9,600 Other assets acquired 12,026 Total assets acquired 907,752 Liabilities Traditional life reserves 691,698 Other policyholder liabilities 14,984 Other liabilities acquired 5,839 712,521 Net identifiable assets acquired 195,231 Goodwill 13,864 Net assets acquired $ 209,095 Identifiable Intangible Assets The following table presents the fair value of identifiable intangible assets acquired at January 31, 2019: Fair Value Weighted-Average Amortization Period (In thousands) Trademarks / trade names $ 2,800 15 Internally developed software 3,800 7 Insurance licenses 3,000 NA $ 9,600 The value of trademarks was estimated using the relief from royalty method, based on the assumption that in lieu of ownership, an organization would be willing to pay a royalty in order to receive the related benefits of using the brand. The value of insurance licenses was estimated using the market approach to value, based on values paid for licenses in recent shell company transactions. The value of internally developed software was estimated using the replacement cost method. These identified intangible assets will be amortized using a straight-line method over their respective amortization periods and will be reviewed annually for impairments. Value of Business Acquired ("VOBA") VOBA is a purchase accounting convention for life insurance companies in business combinations based upon an actuarial determination of the difference between the fair value of policyholder liabilities acquired and the same policyholder liabilities measured in accordance with the acquiring company's accounting policies. The difference, referred to as VOBA, is an intangible asset subject to periodic amortization. As of the January 31, 2019 acquisition date, the VOBA balance recorded was $147.3 million . Based upon the remaining unamortized balance as of March 31, 2019, the expected amortization for the next five years is as follows: Expected Amortization (In thousands) Remainder of 2019 $ 7,303 2020 $ 9,242 2021 $ 8,773 2022 $ 8,365 2023 $ 8,000 Financial Information Subsequent to the acquisition date of January 31, 2019, Ozark National and NIS total revenues of $19.6 million and net earnings of $3.3 million have been included in Condensed Consolidated Statements of Earnings for the quarter ended March 31, 2019. These results for segment reporting purposes have been combined in the Acquired Businesses segment. The following unaudited comparative pro forma total revenues and net earnings represent Condensed Consolidated Results of Operations for the Company which assume amounts estimated had the acquisition of Ozark National and NIS by the Company been effective January 1, 2019. Three Months Ended March 31, 2019 2018 (In thousands) Total revenues $ 227,708 138,554 Net earnings $ 41,830 31,858 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Effective May 1, 2019, the Company completed the previously announced sale of its nursing home operation in San Marcos, Texas for a purchase price of $7.6 million . At March 31, 2019, the assets of the San Marcos entity were included in Other Assets in the Condensed Consolidated Balance Sheet as held for sale at its book value which was written down to the purchase price amount. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | Recent accounting pronouncements not yet adopted On April 25, 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments . The amendments in this Update add clarification and correction to various aspects of the following guidance previously issued related to financial instruments, based on feedback from stakeholders. A. ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Areas for improvement . The amendments clarify guidance and implementation around accrued interest, transfers between classifications or categories for loans and debt securities, consideration of recoveries in estimating allowances, reinsurance recoveries, consideration of prepayments and estimated costs to sell when foreclosure is probable. Additionally, the amendments correct certain cross-references. B. ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Liabilities. The amendments clarify the scope of the original Update, and add clarification on the guidance and implementation around fair value disclosure requirements for nonpublic entities, measurement alternatives for equity securities without readily determinable fair values at nonrecurring fair value measurement, remeasurement of equity securities without readily determinable fair values at historical exchange rates, and associated disclosure requirements. C. ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The amendments clarify the guidance and implementation around partial-term fair value hedges of interest rate risk, amortization of fair value hedge basis adjustments, disclosure of fair value hedge basis adjustments, consideration of the hedged contractually specified interest rate under the hypothetical derivative method, scope for nonpublic entities, and application of a first-payments-received cash flow hedging technique to overall cash flows on a group of variable interest payments. The amendments contained in this update will be effective for the same fiscal years in which the original ASU becomes effective, or, if already implemented, annual periods beginning after the issuance of this update. The Company will be primarily affected by the clarifications provided to ASU 2016-13, which is still pending adoption. 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. Adoption of the guidance is not expected to have a material effect on the Company’s results of operations or financial position. 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. Adoption of the guidance is not expected to have a material effect on the Company’s results of operations or financial position. 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. Recent accounting pronouncements adopted 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 are required to provide an analysis of changes in each caption of stockholders’ equity and noncontrolling interests, which will 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 adoption of this ASU in 2019 did not have a material effect on the results of operations or financial position of the Company as this information in year-to-date format is already provided. 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. The adoption of this ASU in 2019 did not have a material effect on the results of operations or financial position of the Company. 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. The Company elected to early adopt this guidance in 2018. There was no material impact to the Company’s financial position, results of operations or cash flows as the result of the adoption of this ASU in 2018. 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. |
Consolidation and Basis of Pr_2
Consolidation and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of the unrealized gains and losses on available-for-sale securities that were reclassified out of accumulated other comprehensive income | The table below shows the unrealized gains and losses on available-for-sale securities that were reclassified out of accumulated other comprehensive income for the three months ended March 31, 2019 and March 31, 2018 . Affected Line Item in the Statements of Earnings Amount Reclassified From Accumulated Other Comprehensive Income Three Months Ended March 31, 2019 2018 (In thousands) Other net investment gains (losses) $ 1,099 40 Net OTTI losses recognized in earnings — — Earnings before Federal income taxes 1,099 40 Federal income taxes 231 7 Net earnings $ 868 33 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Three Months Ended March 31, 2019 2018 Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net income $ 40,198 26,875 Dividends - Class A shares — — Dividends - Class B shares — — Undistributed earnings $ 40,198 26,875 Allocation of net income: Dividends $ — — — — Allocation of undistributed income 39,061 1,137 26,115 760 Net earnings $ 39,061 1,137 26,115 760 Denominator: Basic earnings per share - weighted-average shares 3,436 200 3,436 200 Effect of dilutive stock options — — — — Diluted earnings per share - adjusted weighted-average shares for assumed conversions 3,436 200 3,436 200 Basic Earnings Per Share $ 11.37 5.68 7.60 3.80 Diluted Earnings Per Share $ 11.37 5.68 7.60 3.80 |
Pension and Other Postretirem_2
Pension and Other Postretirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Defined Benefit Pension Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of net periodic benefit costs | The following table summarizes the components of net periodic benefit cost. Three Months Ended March 31, 2019 2018 (In thousands) Service cost $ 24 28 Interest cost 210 225 Expected return on plan assets (272 ) (325 ) Amortization of prior service cost — — Amortization of net loss 165 131 Net periodic benefit cost $ 127 59 |
Chairman and President Non-Qualified Defined Benefit Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of net periodic benefit costs | The following table summarizes the components of net periodic benefit costs for the non-qualified defined benefit plans. Three Months Ended March 31, 2019 2018 (In thousands) Service cost $ 125 90 Interest cost 256 213 Amortization of prior service cost 15 15 Amortization of net loss 348 176 Net periodic benefit cost $ 744 494 |
Defined Benefit Postretirement Healthcare Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of net periodic benefit costs | The following table summarizes the components of net periodic benefit costs. Three Months Ended March 31, 2019 2018 (In thousands) Interest cost $ 49 40 Amortization of prior service cost 13 26 Amortization of net loss 61 37 Net periodic benefit cost $ 123 103 |
Segment and Other Operating I_2
Segment and Other Operating Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of segment information, by quarter | A summary of segment information as of March 31, 2019 and December 31, 2018 for the Condensed Consolidated Balance Sheet items and for the three months ended March 31, 2019 and March 31, 2018 for the Condensed Consolidated Statement of Earnings is provided below. Condensed Consolidated Balance Sheet Items: March 31, 2019 Domestic International Annuities Acquired Businesses All Totals (In thousands) Deferred policy acquisition costs, sales inducements, and value of business acquired $ 118,471 231,166 567,505 146,374 — 1,063,516 Total segment assets 1,243,412 1,185,862 8,569,375 940,933 366,626 12,306,208 Future policy benefits 1,075,603 890,562 7,691,496 694,793 — 10,352,454 Other policyholder liabilities 18,156 14,700 101,485 14,468 — 148,809 December 31, 2018 Domestic International Annuities Acquired Businesses All Totals (In thousands) 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 Consolidated Statement of Earnings: Three Months Ended March 31, 2019 Domestic Life Insurance International Life Insurance Annuities Acquired Businesses All Others Totals (In thousands) Premiums and contract revenues $ 10,804 26,063 4,868 13,801 — 55,536 Net investment income 23,499 14,017 103,154 3,976 6,685 151,331 Other revenues 44 21 8 1,441 4,899 6,413 Total revenues 34,347 40,101 108,030 19,218 11,584 213,280 Life and other policy benefits 3,922 2,162 11,430 10,675 — 28,189 Amortization of deferred policy acquisition costs and value of business acquired 3,410 7,294 19,712 1,748 — 32,164 Universal life and annuity contract interest 21,441 11,993 47,482 — — 80,916 Other operating expenses 4,123 4,264 7,508 3,085 7,069 26,049 Federal income taxes (benefit) 324 3,208 4,883 747 259 9,421 Total expenses 33,220 28,921 91,015 16,255 7,328 176,739 Segment earnings (loss) $ 1,127 11,180 17,015 2,963 4,256 36,541 Three Months Ended March 31, 2018 Domestic Life Insurance International Life Insurance Annuities Acquired Businesses All Others Totals (In thousands) Premiums and contract revenues $ 9,601 27,917 5,147 — — 42,665 Net investment income 663 1,971 53,543 — 4,568 60,745 Other revenues — 30 19 — 4,948 4,997 Total revenues 10,264 29,918 58,709 — 9,516 108,407 Life and other policy benefits 4,809 5,728 10,864 — — 21,401 Amortization of deferred acquisition costs 2,675 7,380 22,174 — — 32,229 Universal life and annuity contract interest (2,861 ) (1,150 ) 2,193 — — (1,818 ) Other operating expenses 5,147 5,381 7,935 — 5,170 23,633 Federal income taxes (benefit) 98 2,507 3,098 — 867 6,570 Total expenses 9,868 19,846 46,264 — 6,037 82,015 Segment earnings (loss) $ 396 10,072 12,445 — 3,479 26,392 |
Reconciliation of segment premiums and other revenues to condensed consolidated financial statements | Reconciliations of segment information to the Company's Condensed Consolidated Financial Statements are provided below. Three Months Ended March 31, 2019 2018 (In thousands) Premiums and Other Revenues : Premiums and contract revenues $ 55,536 42,665 Net investment income 151,331 60,745 Other revenues 6,413 4,997 Realized gains (losses) on investments 4,629 611 Total condensed consolidated premiums and other revenues $ 217,909 109,018 |
Reconciliation of segment federal income taxes to condensed consolidated financial statements | Three Months Ended March 31, 2019 2018 (In thousands) Federal Income Taxes : Total segment Federal income taxes $ 9,421 6,570 Taxes on realized gains (losses) on investments 972 128 Total condensed consolidated Federal income taxes $ 10,393 6,698 |
Reconciliation of segment net earnings to condensed consolidated financial statements | Three Months Ended March 31, 2019 2018 (In thousands) Net Earnings : Total segment earnings $ 36,541 26,392 Realized gains (losses) on investments, net of taxes 3,657 483 Total condensed consolidated net earnings $ 40,198 26,875 |
Reconciliation of segment assets to condensed consolidated financial statements | March 31, December 31, 2019 2018 (In thousands) Assets : Total segment assets $ 12,306,208 11,588,481 Other unallocated assets 342,668 343,210 Total condensed consolidated assets $ 12,648,876 11,931,691 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
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, 2019 291,000 — $ — Exercised — — $ — Forfeited — — $ — Expired — — $ — Stock options granted — — $ — Balance at March 31, 2019 291,000 — $ — |
Schedule of activity | Liability Awards SAR RSU PSU Other Share/Unit Awards: Balance at January 1, 2019 89,443 13,170 19,122 Exercised — (3,051 ) (5,426 ) Forfeited (543 ) (200 ) (401 ) Granted — — — Balance at March 31, 2019 88,900 9,919 13,295 |
Summary of information about stock options and SARs outstanding | The following table summarizes information about SARs outstanding at March 31, 2019 . There were no options outstanding as of March 31, 2019 . SARs Outstanding Number Outstanding Weighted- Average Remaining Contractual Life Number Exercisable Exercise prices: $132.56 19,568 2.7 years 19,568 $210.22 25,000 4.7 years 16,400 $216.48 11,649 6.9 years 11,649 $311.16 10,338 7.8 years 6,929 $310.55 203 8.1 years 67 $334.34 9,841 8.6 years 3,329 $303.77 12,301 9.7 years — Totals 88,900 57,942 Aggregate intrinsic value (in thousands) $ 4,384 $ 3,935 |
Summary of assumptions employed using Black-Scholes option pricing model | In estimating the fair value of the share-based awards outstanding at March 31, 2019 and December 31, 2018 , the Company employed the Black-Scholes option pricing model with assumptions detailed below. March 31, December 31, Expected term 2.7 to 9.7 years 3.0 to 10.0 years Expected volatility weighted-average 22.17 % 22.14 % Expected dividend yield 0.14 % 0.12 % Risk-free rate weighted-average 2.35 % 2.58 % |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Realized investment gains and losses, excluding impairment losses | The table below presents realized investment gains and losses, excluding impairment losses, for the periods indicated. Three Months Ended March 31, 2019 2018 (In thousands) Available for sale debt securities: Realized gains on disposal $ 1,183 40 Realized losses on disposal (84 ) — Held to maturity debt securities: Realized gains on disposal 27 571 Realized losses on disposal — — Equity securities realized gains (losses) — — Real estate gains (losses) 3,503 — Totals $ 4,629 611 |
Schedule of net impairment losses recognized in earnings | The table below presents net impairment losses recognized in earnings for the periods indicated. Three Months Ended March 31, 2019 2018 (In thousands) Total other-than-temporary impairment gains (losses) on debt securities $ 3 3 Portion of loss (gain) recognized in comprehensive income (3 ) (3 ) Net impairment losses on debt securities recognized in earnings — — Equity securities impairments — Totals $ — — |
Credit losses on securities, also recorded non-credit other-than-temporary impairments in other comprehensive loss. | The table below presents a roll forward of credit losses on securities for which the Company also recorded non-credit other-than-temporary impairments in other comprehensive loss. Three Months Ended March 31, 2019 Year Ended (In thousands) Beginning balance, cumulative credit losses related to other-than-temporary impairments $ 627 627 Reductions for securities sold during current period — — Additions for credit losses not previously recognized in other-than-temporary impairments — — Ending balance, cumulative credit losses related to other-than-temporary impairments $ 627 627 |
Schedule of debt securities, available-for-sale securities | The table below presents amortized costs and fair values of debt securities available for sale at March 31, 2019 . Debt Securities Available for Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: States and political subdivisions $ 100,491 1,864 — 102,355 Foreign governments 9,976 194 — 10,170 Public utilities 80,923 2,095 (148 ) 82,870 Corporate 2,977,002 44,619 (23,080 ) 2,998,541 Commercial mortgage-backed 33,027 485 — 33,512 Residential mortgage-backed 15,212 1,025 (120 ) 16,117 Asset-backed 90,158 825 (63 ) 90,920 Totals $ 3,306,789 51,107 (23,411 ) 3,334,485 December 31, 2018 . 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 Asset-backed 5,969 193 — 6,162 Totals $ 3,008,624 17,678 (80,243 ) 2,946,059 |
Schedule of held-to-maturity 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 Asset-backed 3,889 88 (10 ) 3,967 Totals $ 7,285,254 57,319 (114,305 ) 7,228,268 March 31, 2019 . Debt Securities Held to Maturity Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: U.S. agencies $ 130,883 678 — 131,561 U.S. Treasury 3,767 126 — 3,893 States and political subdivisions 476,164 14,195 (136 ) 490,223 Foreign governments 1,159 38 — 1,197 Public utilities 911,697 13,595 (2,366 ) 922,926 Corporate 4,741,367 79,305 (20,304 ) 4,800,368 Commercial mortgage-backed 3,051 21 — 3,072 Residential mortgage-backed 1,157,197 20,439 (5,026 ) 1,172,610 Asset-backed 3,640 65 (3 ) 3,702 Totals $ 7,428,925 128,462 (27,835 ) 7,529,552 |
Schedule of gross unrealized losses and fair values of debt securities, available-for-sale investments, continuous unrealized loss position | The following table shows the gross unrealized losses and fair values of the Company's available for sale investments by investment category and length of time that the individual securities have been in a continuous unrealized loss position at December 31, 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: States 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 ) March 31, 2019 . Debt 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: Public utilities — — 9,844 (148 ) 9,844 (148 ) Corporate 52,799 (1,597 ) 827,900 (21,483 ) 880,699 (23,080 ) Residential mortgage-backed — — 841 (120 ) 841 (120 ) Asset-backed 8,470 (63 ) — — 8,470 (63 ) Total $ 61,269 $ (1,660 ) $ 838,585 $ (21,751 ) $ 899,854 $ (23,411 ) |
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 debt securities by investment category and length of time the individual securities have been in a continuous unrealized loss position at March 31, 2019 . Debt Securities Held to Maturity Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Debt securities: States and political subdivisions 2,925 (3 ) 8,533 (133 ) 11,458 (136 ) Public utilities 5,332 (34 ) 193,680 (2,332 ) 199,012 (2,366 ) Corporate 75,247 (930 ) 1,126,912 (19,374 ) 1,202,159 (20,304 ) Residential mortgage-backed 5,626 (7 ) 313,590 (5,019 ) 319,216 (5,026 ) Asset-backed — — 1,862 (3 ) 1,862 (3 ) Total $ 89,130 (974 ) 1,644,577 (26,861 ) 1,733,707 (27,835 ) 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: States 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 ) Asset-backed — — 1,976 (10 ) 1,976 (10 ) Total $ 2,833,188 (67,652 ) 1,073,028 (46,653 ) 3,906,216 (114,305 ) |
Investments classified by contractual maturity date | The amortized cost and fair value of investments in debt securities at March 31, 2019 , 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 $ 173,689 176,102 390,291 394,159 Due after 1 year through 5 years 1,112,653 1,128,539 3,016,887 3,066,168 Due after 5 years through 10 years 1,701,123 1,705,183 2,451,482 2,469,058 Due after 10 years 180,927 184,112 406,377 420,783 3,168,392 3,193,936 6,265,037 6,350,168 Mortgage and asset-backed securities 138,397 140,549 1,163,888 1,179,384 Total $ 3,306,789 3,334,485 7,428,925 7,529,552 |
Schedule of mortgage loans by loan-to-value ratio | The following table represents the mortgage loan portfolio by loan-to-value ratio. March 31, 2019 December 31, 2018 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Loan-to-Value Ratio (1): Less than 50% $ 59,797 29.0 $ 66,371 32.6 50% to 60% 37,904 18.4 22,610 11.1 60% to 70% 96,435 46.8 102,857 50.4 70% to 80% 6,566 3.2 6,642 3.3 80% to 90% 5,341 2.6 5,375 2.6 Greater than 90% — — — — Gross balance 206,043 100.0 203,855 100.0 Allowance for possible losses (675 ) (0.3 ) (675 ) (0.3 ) Totals $ 205,368 99.7 $ 203,180 99.7 (1) Loan-to-Value Ratio is determined using the most recent appraised value. Appraisals are required at the time of funding and may be updated if a material change occurs from the original loan agreement. |
Schedule of allowance for mortgage loans | The following table represents the mortgage loan allowance for the periods shown. March 31, 2019 December 31, 2018 (In thousands) Balance, beginning of period $ 675 650 Provision — 25 Releases — — Balance, end of period $ 675 675 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities that are measured at fair value on a recurring basis | The following tables set forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of the date indicated: March 31, 2019 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available for sale $ 3,334,485 — 3,334,485 — Equity securities 19,196 19,196 — — Derivatives, index options 71,001 — — 71,001 Total assets $ 3,424,682 19,196 3,334,485 71,001 Policyholder account balances (a) $ 86,127 — — 86,127 Other liabilities (b) 11,598 — — 11,598 Total liabilities $ 97,725 — — 97,725 three months ended March 31, 2019 , the Company made no transfers into or out of Levels 1, 2 or 3. 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, available for sale 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 (a) Represents the fair value of certain product-related embedded derivatives that were recorded at fair value. |
Schedule of assets by by pricing source and fair value hierarchy level | The following tables present, by pricing source and fair value hierarchy level, the Company’s assets that are measured at fair value on a recurring basis: March 31, 2019 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available for sale: Priced by third-party vendors $ 3,334,485 — 3,334,485 — Priced internally — — — — Subtotal 3,334,485 — 3,334,485 — Equity securities: Priced by third-party vendors 19,196 19,196 — — Priced internally — — — — Subtotal 19,196 19,196 — — Derivatives, index options: Priced by third-party vendors 71,001 — — 71,001 Priced internally — — — — Subtotal 71,001 — — 71,001 Total $ 3,424,682 19,196 3,334,485 71,001 Percent of total 100.0 % 0.6 % 97.3 % 2.1 % December 31, 2018 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, 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, available for sale: 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 significant unobservable inputs for fair value measurements | The following tables provide additional information about fair value measurements for which significant unobservable (Level 3) inputs were utilized to determine fair value. Three Months Ended March 31, 2019 Debt Securities, Available for Sale Equity Securities Derivatives, Index Options Total Assets Other Liabilities (In thousands) Balance at January 1, 2019 $ — — 14,684 14,684 56,704 Total realized and unrealized gains (losses): Included in net income — — 42,003 42,003 25,529 Purchases, sales, issuances and settlements, net: Purchases — — 17,592 17,592 17,592 Sales — — — — — Issuances — — — — 3,700 Settlements — — (3,278 ) (3,278 ) (5,800 ) Transfers into (out of) Level 3 — — — — — Balance at end of period $ — — 71,001 71,001 97,725 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: Net investment income $ — — 40,464 40,464 — Benefits and expenses — — — — 38,961 Total $ — — 40,464 40,464 38,961 Three Months Ended March 31, 2018 Debt Securities, Available for Sale Equity Securities, Available for Sale Derivatives, Index Options Total Assets Other Liabilities (In thousands) Balance at January 1, 2018 $ — — 194,731 194,731 226,401 Total realized and unrealized gains (losses): Included in net income — — (44,394 ) (44,394 ) (43,428 ) Purchases, sales, issuances and settlements, net: Purchases — — 22,376 22,376 22,376 Sales — — — — — Issuances — — — — — Settlements — — (56,357 ) (56,357 ) (57,847 ) Transfers into (out of) Level 3 — — — — — Balance at end of period $ — — 116,356 116,356 147,502 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: Net investment income $ — — (44,337 ) (44,337 ) — Benefits and expenses — — — — (44,880 ) Total $ — — (44,337 ) (44,337 ) (44,880 ) |
Schedule of quantitative information of Level 3 assets | The following table presents the valuation method for financial assets and liabilities categorized as level 3, as well as the unobservable inputs used in the valuation of those financial instruments: March 31, 2019 Fair Value Valuation Technique Unobservable Input (In thousands) Derivatives, index options $ 71,001 Broker prices Implied volatility Inputs from broker proprietary models Total assets $ 71,001 Policyholder account balances $ 86,127 Deterministic cash flow model Projected option cost Other liabilities, share-based compensation 7,898 Black-Scholes model Expected term, Forfeiture assumptions Other liabilities, contingent consideration on businesses acquired 3,700 Probabilistic Method Projected renewal premium Total liabilities $ 97,725 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 model Expected term Forfeiture assumptions Total liabilities $ 56,704 |
Schedule of carrying amounts and fair values of the Company's financial instruments | The carrying amounts and fair values of the Company's financial instruments are as follows: March 31, 2019 Fair Value Hierarchy Level Carrying Values Fair Values Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities held to maturity $ 7,428,925 7,529,552 — 7,527,650 1,902 Debt securities available for sale 3,334,485 3,334,485 — 3,334,485 — Cash and cash equivalents 91,936 91,936 91,936 — — Mortgage loans 205,368 205,486 — — 205,486 Policy loans 81,162 119,559 — — 119,559 Other loans 19,133 19,423 — — 19,423 Derivatives, index options 71,001 71,001 — — 71,001 Equity securities 19,196 19,196 19,196 — — Life interest in Libbie Shearn Moody Trust 8,692 12,775 — — 12,775 LIABILITIES Deferred annuity contracts $ 7,337,921 6,207,730 — — 6,207,730 Immediate annuity and supplemental contracts 405,313 419,032 — — 419,032 Contingent consideration on businesses acquired 3,700 3,700 — — 3,700 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 |
Derivative Investments (Tables)
Derivative Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value of derivative instruments | The tables below present the fair value of derivative instruments as of March 31, 2019 and December 31, 2018 , respectively. March 31, 2019 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 $ 71,001 Fixed-index products Universal Life and Annuity Contracts $ 86,127 Total $ 71,001 $ 86,127 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 |
Schedule of derivative instruments in the Condensed Consolidated Statements of Earnings | The table below presents the effect of derivative instruments in the Condensed Consolidated Statements of Earnings for the three months ended March 31, 2019 and 2018 . March 31, March 31, Derivatives Not Designated As Hedging Instruments Location of Gain or (Loss) Recognized In Income on Derivatives Amount of Gain or (Loss) Recognized in Income on Derivatives (In thousands) Equity index options Net investment income $ 42,003 (44,394 ) Fixed-index products Universal life and annuity contract interest (27,032 ) 42,885 $ 14,971 (1,509 ) |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of Net Assets Acquired | The following table presents the fair values of the net assets acquired as of January 31, 2019. January 31, 2019 Assets Fair value (In thousands) Debt securities held to maturity $ 261,059 Debt securities available for sale 400,719 Policy loans 28,128 Real estate 4,600 Cash and cash equivalents 16,275 Accrued investment income 6,116 Value of business acquired 147,319 Reinsurance recoverables 21,910 Other intangible assets 9,600 Other assets acquired 12,026 Total assets acquired 907,752 Liabilities Traditional life reserves 691,698 Other policyholder liabilities 14,984 Other liabilities acquired 5,839 712,521 Net identifiable assets acquired 195,231 Goodwill 13,864 Net assets acquired $ 209,095 |
Schedule of Fair Value of Identifiable Intangible Assets Acquired | The following table presents the fair value of identifiable intangible assets acquired at January 31, 2019: Fair Value Weighted-Average Amortization Period (In thousands) Trademarks / trade names $ 2,800 15 Internally developed software 3,800 7 Insurance licenses 3,000 NA $ 9,600 |
Schedule of Expected Amortization of VOBA | Based upon the remaining unamortized balance as of March 31, 2019, the expected amortization for the next five years is as follows: Expected Amortization (In thousands) Remainder of 2019 $ 7,303 2020 $ 9,242 2021 $ 8,773 2022 $ 8,365 2023 $ 8,000 |
Schedule of Pro Forma Total Revenues and Net Earnings | The following unaudited comparative pro forma total revenues and net earnings represent Condensed Consolidated Results of Operations for the Company which assume amounts estimated had the acquisition of Ozark National and NIS by the Company been effective January 1, 2019. Three Months Ended March 31, 2019 2018 (In thousands) Total revenues $ 227,708 138,554 Net earnings $ 41,830 31,858 |
Consolidation and Basis of Pr_3
Consolidation and Basis of Presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Other net investment gains (losses) | $ 4,629 | $ 611 |
Net OTTI losses recognized in earnings | 0 | 0 |
Earnings before Federal income taxes | 50,591 | 33,573 |
Federal income taxes | 10,393 | 6,698 |
Net earnings | 40,198 | 26,875 |
Unrealized Gains and Losses on Available-for-sale Securities | Amount Reclassified From Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Other net investment gains (losses) | 1,099 | 40 |
Net OTTI losses recognized in earnings | 0 | 0 |
Earnings before Federal income taxes | 1,099 | 40 |
Federal income taxes | 231 | 7 |
Net earnings | $ 868 | $ 33 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Millions | Jan. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Dividends Payable [Line Items] | |||
Extraordinary dividend paid | $ 102.7 | ||
National Western | |||
Dividends Payable [Line Items] | |||
Maximum dividend payment which may be paid without prior approval from Colorado Division of Insurance | $ 30.7 | ||
Dividends declared and paid | 32 | $ 3 | |
Ozark National Life Insurance Company | |||
Dividends Payable [Line Items] | |||
Maximum dividend payment which may be paid without prior approval from Colorado Division of Insurance | $ 20.4 |
Earnings Per Share (EPS Calcula
Earnings Per Share (EPS Calculation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net income | $ 40,198 | $ 26,875 |
Undistributed earnings | 40,198 | 26,875 |
Allocation of net income: | ||
Allocation of undistributed income | 40,198 | 26,875 |
Net earnings | 40,198 | 26,875 |
Class A | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net income | 39,061 | 26,115 |
Dividends | 0 | 0 |
Undistributed earnings | 39,061 | 26,115 |
Allocation of net income: | ||
Dividends | 0 | 0 |
Allocation of undistributed income | 39,061 | 26,115 |
Net earnings | $ 39,061 | $ 26,115 |
Denominator: | ||
Basic earnings per share - weighted-average shares (in shares) | 3,436 | 3,436 |
Effect of dilutive stock options (in shares) | 0 | 0 |
Diluted earnings per share - adjusted weighted-average shares for assumed conversions (in shares) | 3,436 | 3,436 |
Basic Earnings Per Share (in dollars per share) | $ 11.37 | $ 7.60 |
Diluted Earnings Per Share (in dollars per share) | $ 11.37 | $ 7.60 |
Class B | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net income | $ 1,137 | $ 760 |
Dividends | 0 | 0 |
Undistributed earnings | 1,137 | 760 |
Allocation of net income: | ||
Dividends | 0 | 0 |
Allocation of undistributed income | 1,137 | 760 |
Net earnings | $ 1,137 | $ 760 |
Denominator: | ||
Basic earnings per share - weighted-average shares (in shares) | 200 | 200 |
Effect of dilutive stock options (in shares) | 0 | 0 |
Diluted earnings per share - adjusted weighted-average shares for assumed conversions (in shares) | 200 | 200 |
Basic Earnings Per Share (in dollars per share) | $ 5.68 | $ 3.80 |
Diluted Earnings Per Share (in dollars per share) | $ 5.68 | $ 3.80 |
Pension and Other Postretirem_3
Pension and Other Postretirement Plans (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($)benefit_plan | Mar. 31, 2018USD ($) | Dec. 31, 2007 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of non-qualified defined benefit pension plans | benefit_plan | 3 | ||
Number of healthcare plans | benefit_plan | 2 | ||
Defined Benefit Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Vesting percentage in accrued benefits from plan freeze | 100.00% | ||
Service cost | $ 24 | $ 28 | |
Interest cost | 210 | 225 | |
Expected return on plan assets | (272) | (325) | |
Amortization of prior service cost | 0 | 0 | |
Amortization of net loss | 165 | 131 | |
Net periodic benefit cost | 127 | 59 | |
Minimum required contribution | 400 | ||
Planned contributions remaining | 500 | ||
Company contributions to plan | 0 | ||
Chairman and President Non-Qualified Defined Benefit Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 125 | 90 | |
Interest cost | 256 | 213 | |
Amortization of prior service cost | 15 | 15 | |
Amortization of net loss | 348 | 176 | |
Net periodic benefit cost | 744 | 494 | |
Company contributions to plan | 400 | ||
Company expected contributions to plans in fiscal year | 2,000 | ||
Defined Benefit Postretirement Healthcare Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Interest cost | 49 | 40 | |
Amortization of prior service cost | 13 | 26 | |
Amortization of net loss | 61 | 37 | |
Net periodic benefit cost | $ 123 | $ 103 | |
Minimum | Chairman and President Non-Qualified Defined Benefit Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Aggregate average annual participant salary increase | 10.00% |
Segment and Other Operating I_3
Segment and Other Operating Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Selected Condensed Consolidated Balance Sheet Items: | |||
Total segment assets | $ 12,648,876 | $ 11,931,691 | |
Other policyholder liabilities | 148,809 | 135,694 | |
Condensed Consolidated Income Statements: | |||
Premiums and contract revenues | 55,536 | $ 42,665 | |
Net investment income | 151,331 | 60,745 | |
Other revenues | 6,413 | 4,997 | |
Total revenues | 217,909 | 109,018 | |
Life and other policy benefits | 28,189 | 21,401 | |
Amortization of deferred policy acquisition costs and value of business acquired | 32,164 | 32,229 | |
Universal life and annuity contract interest | 80,916 | (1,818) | |
Other operating expenses | 26,049 | 23,633 | |
Total condensed consolidated Federal income taxes | 10,393 | 6,698 | |
Net earnings | 40,198 | 26,875 | |
Realized gains (losses) on investments | 4,629 | 611 | |
Segments | |||
Selected Condensed Consolidated Balance Sheet Items: | |||
Deferred policy acquisition costs, sales inducements, and value of business acquired | 1,063,516 | 975,418 | |
Total segment assets | 12,306,208 | 11,588,481 | |
Future policy benefits | 10,352,454 | 9,744,286 | |
Other policyholder liabilities | 148,809 | 135,694 | |
Condensed Consolidated Income Statements: | |||
Premiums and contract revenues | 55,536 | 42,665 | |
Net investment income | 151,331 | 60,745 | |
Other revenues | 6,413 | 4,997 | |
Total revenues | 213,280 | 108,407 | |
Life and other policy benefits | 28,189 | 21,401 | |
Amortization of deferred policy acquisition costs and value of business acquired | 32,164 | 32,229 | |
Universal life and annuity contract interest | 80,916 | (1,818) | |
Other operating expenses | 26,049 | 23,633 | |
Total condensed consolidated Federal income taxes | 9,421 | 6,570 | |
Total expenses | 176,739 | 82,015 | |
Net earnings | 36,541 | 26,392 | |
Segments | Domestic Life Insurance | |||
Selected Condensed Consolidated Balance Sheet Items: | |||
Deferred policy acquisition costs, sales inducements, and value of business acquired | 118,471 | 122,661 | |
Total segment assets | 1,243,412 | 1,215,864 | |
Future policy benefits | 1,075,603 | 1,039,150 | |
Other policyholder liabilities | 18,156 | 17,439 | |
Condensed Consolidated Income Statements: | |||
Premiums and contract revenues | 10,804 | 9,601 | |
Net investment income | 23,499 | 663 | |
Other revenues | 44 | 0 | |
Total revenues | 34,347 | 10,264 | |
Life and other policy benefits | 3,922 | 4,809 | |
Amortization of deferred policy acquisition costs and value of business acquired | 3,410 | 2,675 | |
Universal life and annuity contract interest | 21,441 | (2,861) | |
Other operating expenses | 4,123 | 5,147 | |
Total condensed consolidated Federal income taxes | 324 | 98 | |
Total expenses | 33,220 | 9,868 | |
Net earnings | 1,127 | 396 | |
Segments | International Life Insurance | |||
Selected Condensed Consolidated Balance Sheet Items: | |||
Deferred policy acquisition costs, sales inducements, and value of business acquired | 231,166 | 243,518 | |
Total segment assets | 1,185,862 | 1,211,036 | |
Future policy benefits | 890,562 | 894,891 | |
Other policyholder liabilities | 14,700 | 20,381 | |
Condensed Consolidated Income Statements: | |||
Premiums and contract revenues | 26,063 | 27,917 | |
Net investment income | 14,017 | 1,971 | |
Other revenues | 21 | 30 | |
Total revenues | 40,101 | 29,918 | |
Life and other policy benefits | 2,162 | 5,728 | |
Amortization of deferred policy acquisition costs and value of business acquired | 7,294 | 7,380 | |
Universal life and annuity contract interest | 11,993 | (1,150) | |
Other operating expenses | 4,264 | 5,381 | |
Total condensed consolidated Federal income taxes | 3,208 | 2,507 | |
Total expenses | 28,921 | 19,846 | |
Net earnings | 11,180 | 10,072 | |
Segments | Annuities | |||
Selected Condensed Consolidated Balance Sheet Items: | |||
Deferred policy acquisition costs, sales inducements, and value of business acquired | 567,505 | 609,239 | |
Total segment assets | 8,569,375 | 8,791,463 | |
Future policy benefits | 7,691,496 | 7,810,245 | |
Other policyholder liabilities | 101,485 | 97,874 | |
Condensed Consolidated Income Statements: | |||
Premiums and contract revenues | 4,868 | 5,147 | |
Net investment income | 103,154 | 53,543 | |
Other revenues | 8 | 19 | |
Total revenues | 108,030 | 58,709 | |
Life and other policy benefits | 11,430 | 10,864 | |
Amortization of deferred policy acquisition costs and value of business acquired | 19,712 | 22,174 | |
Universal life and annuity contract interest | 47,482 | 2,193 | |
Other operating expenses | 7,508 | 7,935 | |
Total condensed consolidated Federal income taxes | 4,883 | 3,098 | |
Total expenses | 91,015 | 46,264 | |
Net earnings | 17,015 | 12,445 | |
Segments | Acquired Businesses | |||
Selected Condensed Consolidated Balance Sheet Items: | |||
Deferred policy acquisition costs, sales inducements, and value of business acquired | 146,374 | 0 | |
Total segment assets | 940,933 | 0 | |
Future policy benefits | 694,793 | 0 | |
Other policyholder liabilities | 14,468 | 0 | |
Condensed Consolidated Income Statements: | |||
Premiums and contract revenues | 13,801 | 0 | |
Net investment income | 3,976 | 0 | |
Other revenues | 1,441 | 0 | |
Total revenues | 19,218 | 0 | |
Life and other policy benefits | 10,675 | 0 | |
Amortization of deferred policy acquisition costs and value of business acquired | 1,748 | 0 | |
Universal life and annuity contract interest | 0 | 0 | |
Other operating expenses | 3,085 | 0 | |
Total condensed consolidated Federal income taxes | 747 | 0 | |
Total expenses | 16,255 | 0 | |
Net earnings | 2,963 | 0 | |
Segments | All Others | |||
Selected Condensed Consolidated Balance Sheet Items: | |||
Deferred policy acquisition costs, sales inducements, and value of business acquired | 0 | 0 | |
Total segment assets | 366,626 | 370,118 | |
Future policy benefits | 0 | 0 | |
Other policyholder liabilities | 0 | 0 | |
Condensed Consolidated Income Statements: | |||
Premiums and contract revenues | 0 | 0 | |
Net investment income | 6,685 | 4,568 | |
Other revenues | 4,899 | 4,948 | |
Total revenues | 11,584 | 9,516 | |
Life and other policy benefits | 0 | 0 | |
Amortization of deferred policy acquisition costs and value of business acquired | 0 | 0 | |
Universal life and annuity contract interest | 0 | 0 | |
Other operating expenses | 7,069 | 5,170 | |
Total condensed consolidated Federal income taxes | 259 | 867 | |
Total expenses | 7,328 | 6,037 | |
Net earnings | 4,256 | 3,479 | |
Other unallocated | |||
Selected Condensed Consolidated Balance Sheet Items: | |||
Total segment assets | 342,668 | $ 343,210 | |
Segment Reconciling Items | |||
Condensed Consolidated Income Statements: | |||
Taxes on realized gains (losses) on investments | 972 | 128 | |
Realized gains (losses) on investments, net of taxes | $ 3,657 | $ 483 |
Share-Based Payments (General D
Share-Based Payments (General Descriptions) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Jun. 20, 2008 | Jun. 25, 2004 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Requisite service period of awards (in years) | 1 year | |||||
Period in force, from which option holders may elect to sell back acquired shares | 90 days | |||||
Performance factor used to determine compensation payout | 93.86% | |||||
Compensation cost not yet recognized | $ 7.9 | $ 7.9 | $ 11.9 | |||
Pre-tax compensation cost (benefit) recognized | (1.5) | $ (0.5) | ||||
Compensation cost (benefit), tax expense (benefit) | 0.3 | $ 0.1 | ||||
Compensation cost related to nonvested options not yet recognized | $ 4.8 | $ 4.8 | ||||
Weighted average period over which the compensation is expected to be recognized | 1 year 4 months 24 days | |||||
Class A | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||
Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Requisite service period of awards (in years) | 1 year | |||||
1995 Plan | 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 (in shares) | 300,000 | |||||
2008 Plan | Class A | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payments, number of shares authorized under plans (in shares) | 300,000 | |||||
Employee Stock Options and Stock Appreciation Rights (SARs), Granted Before 2016 | Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage (in percentage) | 20.00% | |||||
Requisite service period of awards (in years) | 3 years | |||||
Employee Stock Options and Stock Appreciation Rights (SARs) | Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Requisite service period of awards (in years) | 1 year | |||||
RSU | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage (in percentage) | 100.00% | |||||
Vesting period (in years) | 3 years | |||||
PSU | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period (in years) | 3 years | |||||
Performance period (in years) | 3 years | |||||
Vesting After Service Period, Year One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage (in percentage) | 33.30% | |||||
Vesting After Service Period, Year One | Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage (in percentage) | 20.00% | |||||
Vesting After Service Period, Year One | Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage (in percentage) | 20.00% | |||||
Vesting After Service Period, Year One | Employee Stock Options and Stock Appreciation Rights (SARs) | Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage (in percentage) | 20.00% | |||||
Vesting After Service Period, Year Two | Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage (in percentage) | 20.00% | |||||
Vesting After Service Period, Year Two | Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage (in percentage) | 20.00% | |||||
Vesting After Service Period, Year Three | Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage (in percentage) | 20.00% | |||||
Vesting After Service Period, Year Three | Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage (in percentage) | 20.00% | |||||
Vesting After Service Period, Year Four | Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage (in percentage) | 20.00% | |||||
Vesting After Service Period, Year Four | Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage (in percentage) | 20.00% | |||||
Vesting After Service Period, Year Five | Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage (in percentage) | 20.00% | |||||
Vesting After Service Period, Year Five | Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage (in percentage) | 20.00% | |||||
Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Extended term (in years) | 10 years |
Share-Based Payments (Options a
Share-Based Payments (Options and Stock Appreciation Rights Outstanding) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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 | |
Shares/Awards | ||
Opening Balance (in shares) | 0 | |
Exercised (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Expired (in shares) | 0 | |
Granted (in shares) | 0 | |
Ending Balance (in shares) | 0 | |
Weighted-Average Exercise Price (usd per share) | ||
Beginning Balance (in usd per share) | $ 0 | |
Exercised (in usd per share) | 0 | |
Forfeited (in usd per share) | 0 | |
Expired (in usd per share) | 0 | |
Granted (in usd per share) | 0 | |
Ending Balance (in usd per share) | $ 0 | |
Liability Awards | ||
Total intrinsic value of options exercised | $ 2.5 | $ 1.5 |
Total share-based liabilities paid | 2.5 | 1.5 |
Fair value of vested awards | 3 | 0.8 |
Cash received from exercise of stock options | $ 0 | $ 0 |
SAR | ||
Liability Awards | ||
Opening balance (in shares) | 89,443 | |
Exercised (in shares) | 0 | |
Forfeited (in shares) | (543) | |
Granted (in shares) | 0 | |
Closing balance (in shares) | 88,900 | |
RSU | ||
Liability Awards | ||
Opening balance (in shares) | 13,170 | |
Exercised (in shares) | (3,051) | |
Forfeited (in shares) | (200) | |
Granted (in shares) | 0 | |
Closing balance (in shares) | 9,919 | |
PSU | ||
Liability Awards | ||
Opening balance (in shares) | 19,122 | |
Exercised (in shares) | (5,426) | |
Forfeited (in shares) | (401) | |
Granted (in shares) | 0 | |
Closing balance (in shares) | 13,295 |
Share-Based Payments (Exercise
Share-Based Payments (Exercise Range) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | 88,900 |
Number Outstanding, Aggregate intrinsic value | $ | $ 4,384 |
Number Exercisable (in shares) | 57,942 |
Options Exercisable, Aggregate intrinsic value | $ | $ 3,935 |
Closing stock price (in usd per share) | $ / shares | $ 262.47 |
SAR | 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 | 2 years 8 months 12 days |
Number Exercisable (in shares) | 19,568 |
Exercise price (in usd per share) | $ / shares | $ 132.56 |
SAR | 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 | 4 years 8 months 12 days |
Number Exercisable (in shares) | 16,400 |
Exercise price (in usd per share) | $ / shares | $ 210.22 |
SAR | 216.48 | |
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 | 6 years 10 months 24 days |
Number Exercisable (in shares) | 11,649 |
Exercise price (in usd per share) | $ / shares | $ 216.48 |
SAR | 311.16 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | 10,338 |
Weighted- Average Remaining Contractual Life | 7 years 9 months 18 days |
Number Exercisable (in shares) | 6,929 |
Exercise price (in usd per share) | $ / shares | $ 311.16 |
SAR | 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 | 8 years 1 month 6 days |
Number Exercisable (in shares) | 67 |
Exercise price (in usd per share) | $ / shares | $ 310.55 |
SAR | 334.34 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | 9,841 |
Weighted- Average Remaining Contractual Life | 8 years 7 months 6 days |
Number Exercisable (in shares) | 3,329 |
Exercise price (in usd per share) | $ / shares | $ 334.34 |
SAR | 303.77 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | 12,301 |
Weighted- Average Remaining Contractual Life | 9 years 8 months 12 days |
Number Exercisable (in shares) | 0 |
Exercise price (in usd per share) | $ / shares | $ 303.77 |
Share-Based Payments (Black Sch
Share-Based Payments (Black Scholes Option Pricing Model Assumptions) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 0.14% | 0.12% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 2 years 8 months 12 days | 3 years |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 9 years 8 months 12 days | 10 years |
Weighted-average | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, weighted-average | 22.17% | 22.14% |
Risk-free rate, weighted-average | 2.35% | 2.58% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Nov. 11, 2018 | Mar. 31, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | |||
Derivatives, index options | $ 71,001,000 | $ 14,684,000 | |
Williams v Pantaleoni et al | |||
Loss Contingencies [Line Items] | |||
Loss contingency, compensatory damages awarded | 364,499 | ||
Loss contingency, punitive damages awarded | 2,500,000 | ||
Loss contingency, general negligence damages awarded | 420,608 | ||
Loss contingency, estimate of possible loss | 2,920,000 | ||
Loss contingency, damages sought | 1,000,000 | ||
Loss contingency, estimate of possible loss excluding plaintiff's attorney fees | 4,000,000 | ||
New Loans | |||
Loss Contingencies [Line Items] | |||
Other commitment | 16,000,000 | ||
Existing Loans | |||
Loss Contingencies [Line Items] | |||
Other commitment | 2,900,000 | ||
Pending Litigation | National Western Life Insurance Company and National Western Life Group, Inc. v. Ross Rankin Moody et. al [Member] | |||
Loss Contingencies [Line Items] | |||
Loss contingency, damages awarded | $ 1,314,053.73 | ||
Equity index options | Williams v Pantaleoni et al | |||
Loss Contingencies [Line Items] | |||
Derivatives, index options | $ 100,000 |
Investments (Investment Gains a
Investments (Investment Gains and Losses) (Details) - USD ($) $ in Thousands | Feb. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Available for sale debt securities: | ||||
Realized gains on disposal | $ 1,183 | $ 40 | ||
Realized losses on disposal | (84) | 0 | ||
Held to maturity debt securities: | ||||
Realized gains on disposal | 27 | 571 | ||
Realized losses on disposal | 0 | 0 | ||
Equity securities realized gains (losses) | 0 | 0 | ||
Real estate gains (losses) | 3,503 | 0 | ||
Totals | $ 4,629 | $ 611 | ||
Investments, percentage of gains on bonds, due to calls of securities (in percentage) | 41.40% | 99.00% | ||
Total other-than-temporary impairment (“OTTI”) gains (losses) | $ 3 | $ 3 | ||
Net OTTI losses recognized in earnings | 0 | 0 | ||
Non-Credit Other-than-Temporary Impairment, Credit Losses Recognized in Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance, cumulative credit losses related to other-than-temporary impairments | 627 | 627 | $ 627 | |
Reductions for securities sold during current period | 0 | 0 | ||
Additions for credit losses not previously recognized in other-than-temporary impairments | 0 | 0 | ||
Ending balance, cumulative credit losses related to other-than-temporary impairments | 627 | $ 627 | ||
Debt Securities | ||||
Held to maturity debt securities: | ||||
Total other-than-temporary impairment (“OTTI”) gains (losses) | 3 | 3 | ||
Portion of loss (gain) recognized in comprehensive income | (3) | (3) | ||
Net OTTI losses recognized in earnings | 0 | 0 | ||
Equity Securities | ||||
Held to maturity debt securities: | ||||
Net OTTI losses recognized in earnings | $ 0 | |||
Nursing Home Operations in Reno, Nevada | ||||
Held to maturity debt securities: | ||||
Real estate gains (losses) | $ 5,700 | |||
Nursing Home Operations, San Marcos, Texas | ||||
Held to maturity debt securities: | ||||
Real estate gains (losses) | $ (2,200) |
Investments (Securities Held to
Investments (Securities Held to Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | $ 7,428,925 | $ 7,285,254 |
Gross Unrealized Gains | 128,462 | 57,319 |
Gross Unrealized Losses | (27,835) | (114,305) |
Fair Value | 7,529,552 | 7,228,268 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 89,130 | 2,833,188 |
Less than 12 Months, Unrealized Losses | (974) | (67,652) |
12 Months or Greater, Fair Value | 1,644,577 | 1,073,028 |
12 Months or Greater, Unrealized Losses | (26,861) | (46,653) |
Total, Fair Value | 1,733,707 | 3,906,216 |
Total, Unrealized Losses | (27,835) | (114,305) |
U.S. agencies | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 130,883 | |
Gross Unrealized Gains | 678 | |
Gross Unrealized Losses | 0 | |
Fair Value | 131,561 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Total, Unrealized Losses | 0 | |
U.S. Treasury | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 3,767 | 1,341 |
Gross Unrealized Gains | 126 | 116 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 3,893 | 1,457 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Total, Unrealized Losses | 0 | 0 |
States and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 476,164 | 457,404 |
Gross Unrealized Gains | 14,195 | 9,764 |
Gross Unrealized Losses | (136) | (2,376) |
Fair Value | 490,223 | 464,792 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 2,925 | 88,253 |
Less than 12 Months, Unrealized Losses | (3) | (2,124) |
12 Months or Greater, Fair Value | 8,533 | 10,645 |
12 Months or Greater, Unrealized Losses | (133) | (252) |
Total, Fair Value | 11,458 | 98,898 |
Total, Unrealized Losses | (136) | (2,376) |
Foreign governments | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 1,159 | |
Gross Unrealized Gains | 38 | |
Gross Unrealized Losses | 0 | |
Fair Value | 1,197 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Total, Unrealized Losses | 0 | |
Public utilities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 911,697 | 930,629 |
Gross Unrealized Gains | 13,595 | 5,928 |
Gross Unrealized Losses | (2,366) | (12,944) |
Fair Value | 922,926 | 923,613 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 5,332 | 396,980 |
Less than 12 Months, Unrealized Losses | (34) | (8,371) |
12 Months or Greater, Fair Value | 193,680 | 98,632 |
12 Months or Greater, Unrealized Losses | (2,332) | (4,573) |
Total, Fair Value | 199,012 | 495,612 |
Total, Unrealized Losses | (2,366) | (12,944) |
Corporate | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 4,741,367 | 4,715,775 |
Gross Unrealized Gains | 79,305 | 27,652 |
Gross Unrealized Losses | (20,304) | (87,043) |
Fair Value | 4,800,368 | 4,656,384 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 75,247 | 2,144,969 |
Less than 12 Months, Unrealized Losses | (930) | (55,125) |
12 Months or Greater, Fair Value | 1,126,912 | 650,401 |
12 Months or Greater, Unrealized Losses | (19,374) | (31,918) |
Total, Fair Value | 1,202,159 | 2,795,370 |
Total, Unrealized Losses | (20,304) | (87,043) |
Commercial mortgage-backed | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 3,051 | |
Gross Unrealized Gains | 21 | |
Gross Unrealized Losses | 0 | |
Fair Value | 3,072 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Total, Unrealized Losses | 0 | |
Residential mortgage-backed | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 1,157,197 | 1,176,216 |
Gross Unrealized Gains | 20,439 | 13,771 |
Gross Unrealized Losses | (5,026) | (11,932) |
Fair Value | 1,172,610 | 1,178,055 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 5,626 | 202,986 |
Less than 12 Months, Unrealized Losses | (7) | (2,032) |
12 Months or Greater, Fair Value | 313,590 | 311,374 |
12 Months or Greater, Unrealized Losses | (5,019) | (9,900) |
Total, Fair Value | 319,216 | 514,360 |
Total, Unrealized Losses | (5,026) | (11,932) |
Asset-backed | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 3,640 | 3,889 |
Gross Unrealized Gains | 65 | 88 |
Gross Unrealized Losses | (3) | (10) |
Fair Value | 3,702 | 3,967 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 0 | 0 |
Less than 12 Months, Unrealized Losses | 0 | 0 |
12 Months or Greater, Fair Value | 1,862 | 1,976 |
12 Months or Greater, Unrealized Losses | (3) | (10) |
Total, Fair Value | 1,862 | 1,976 |
Total, Unrealized Losses | $ (3) | $ (10) |
Investments (Securities Availab
Investments (Securities Available for Sale) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt securities: | ||
Total | $ 3,306,789 | $ 3,008,624 |
Gross Unrealized Gains | 51,107 | 17,678 |
Gross Unrealized Losses | (23,411) | (80,243) |
Fair Value | 3,334,485 | 2,946,059 |
Fair Value | ||
Less than 12 Months | 61,269 | 1,508,422 |
12 Months or Greater | 838,585 | 443,676 |
Total | 899,854 | 1,952,098 |
Unrealized Losses | ||
Less than 12 Months | (1,660) | (45,096) |
12 Months or Greater | (21,751) | (35,147) |
Total | (23,411) | (80,243) |
States and political subdivisions | ||
Debt securities: | ||
Total | 100,491 | 570 |
Gross Unrealized Gains | 1,864 | 0 |
Gross Unrealized Losses | 0 | (4) |
Fair Value | 102,355 | 566 |
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) | |
Foreign governments | ||
Debt securities: | ||
Total | 9,976 | 9,974 |
Gross Unrealized Gains | 194 | 30 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 10,170 | 10,004 |
Public utilities | ||
Debt securities: | ||
Total | 80,923 | 82,943 |
Gross Unrealized Gains | 2,095 | 1,045 |
Gross Unrealized Losses | (148) | (517) |
Fair Value | 82,870 | 83,471 |
Fair Value | ||
Less than 12 Months | 0 | 38,903 |
12 Months or Greater | 9,844 | 0 |
Total | 9,844 | 38,903 |
Unrealized Losses | ||
Less than 12 Months | 0 | (517) |
12 Months or Greater | (148) | 0 |
Total | (148) | (517) |
Corporate | ||
Debt securities: | ||
Total | 2,977,002 | 2,893,221 |
Gross Unrealized Gains | 44,619 | 15,473 |
Gross Unrealized Losses | (23,080) | (79,638) |
Fair Value | 2,998,541 | 2,829,056 |
Fair Value | ||
Less than 12 Months | 52,799 | 1,468,953 |
12 Months or Greater | 827,900 | 442,798 |
Total | 880,699 | 1,911,751 |
Unrealized Losses | ||
Less than 12 Months | (1,597) | (44,575) |
12 Months or Greater | (21,483) | (35,063) |
Total | (23,080) | (79,638) |
Commercial mortgage-backed | ||
Debt securities: | ||
Total | 33,027 | |
Gross Unrealized Gains | 485 | |
Gross Unrealized Losses | 0 | |
Fair Value | 33,512 | |
Residential mortgage-backed | ||
Debt securities: | ||
Total | 15,212 | 15,947 |
Gross Unrealized Gains | 1,025 | 937 |
Gross Unrealized Losses | (120) | (84) |
Fair Value | 16,117 | 16,800 |
Fair Value | ||
Less than 12 Months | 0 | 0 |
12 Months or Greater | 841 | 878 |
Total | 841 | 878 |
Unrealized Losses | ||
Less than 12 Months | 0 | 0 |
12 Months or Greater | (120) | (84) |
Total | (120) | (84) |
Asset-backed | ||
Debt securities: | ||
Total | 90,158 | 5,969 |
Gross Unrealized Gains | 825 | 193 |
Gross Unrealized Losses | (63) | 0 |
Fair Value | 90,920 | $ 6,162 |
Fair Value | ||
Less than 12 Months | 8,470 | |
12 Months or Greater | 0 | |
Total | 8,470 | |
Unrealized Losses | ||
Less than 12 Months | (63) | |
12 Months or Greater | 0 | |
Total | $ (63) |
Investments (Unrealized Losses)
Investments (Unrealized Losses) (Details) | 3 Months Ended | |
Mar. 31, 2019USD ($)security | Dec. 31, 2018USD ($) | |
Available-for-Sale Securities and Held-to-Maturity Securities [Line Items] | ||
Debt securities, held to maturity | $ 7,428,925,000 | $ 7,285,254,000 |
Debt securities, available-for-sale | 3,334,485,000 | 2,946,059,000 |
Asset-backed | ||
Available-for-Sale Securities and Held-to-Maturity Securities [Line Items] | ||
Securities, other-than-temporarily impaired | 0 | |
Debt securities, held to maturity | 3,640,000 | 3,889,000 |
Debt securities, available-for-sale | $ 90,920,000 | $ 6,162,000 |
Debt Securities | ||
Available-for-Sale Securities and Held-to-Maturity Securities [Line Items] | ||
Gross unrealized losses, number of issues | security | 306 | |
Gross unrealized losses, percentage of total debt | 19.90% | |
Gross unrealized losses, market value as a percent of amortized cost | 98.10% | |
Gross unrealized losses, number of securities with maturities of 12 months or greater | security | 273 | |
Gross unrealized losses, number of securities with maturities of 12 months or greater (as a percentage) | 89.20% | |
External Credit Rating, Investment Grade | Debt Securities | ||
Available-for-Sale Securities and Held-to-Maturity Securities [Line Items] | ||
Gross unrealized losses, number of securities rated investment grade | security | 298 | |
Ozark National Life Insurance Company | ||
Available-for-Sale Securities and Held-to-Maturity Securities [Line Items] | ||
Debt securities, held to maturity | $ 265,200,000 | |
Debt securities, available-for-sale | $ 392,500,000 |
Investments (Contractual Maturi
Investments (Contractual Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities Available for Sale- Amortized Cost | ||
Due in 1 year or less | $ 173,689 | |
Due after 1 year through 5 years | 1,112,653 | |
Due after 5 years through 10 years | 1,701,123 | |
Due after 10 years | 180,927 | |
Amortized Cost | 3,168,392 | |
Mortgage and asset-backed securities | 138,397 | |
Total | 3,306,789 | $ 3,008,624 |
Debt Securities Available for Sale- Fair Value | ||
Due in 1 year or less | 176,102 | |
Due after 1 year through 5 years | 1,128,539 | |
Due after 5 years through 10 years | 1,705,183 | |
Due after 10 years | 184,112 | |
Fair Value | 3,193,936 | |
Mortgage and asset-backed securities | 140,549 | |
Total | 3,334,485 | 2,946,059 |
Debt Securities Held to Maturity - Amortized Costs | ||
Due in 1 year or less | 390,291 | |
Due after 1 year through 5 years | 3,016,887 | |
Due after 5 years through 10 years | 2,451,482 | |
Due after 10 years | 406,377 | |
Amortized Cost | 6,265,037 | |
Mortgage and asset-backed securities | 1,163,888 | |
Total | 7,428,925 | 7,285,254 |
Debt Securities Held to Maturity - Fair Value | ||
Due in 1 year or less | 394,159 | |
Due after 1 year through 5 years | 3,066,168 | |
Due after 5 years through 10 years | 2,469,058 | |
Due after 10 years | 420,783 | |
Fair Value | 6,350,168 | |
Mortgage and asset-backed securities | 1,179,384 | |
Total | $ 7,529,552 | $ 7,228,268 |
Investments (Mortgage Loans and
Investments (Mortgage Loans and Real Estate) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loan, amount | $ 206,043 | $ 203,855 |
Allowance for possible losses, amount | (675) | (675) |
Totals, amount | $ 205,368 | $ 203,180 |
Mortgage loans, percentage | 100.00% | 100.00% |
Allowance for possible losses, percentage | (0.30%) | (0.30%) |
Totals, percentage | 99.70% | 99.70% |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of period | $ 675 | $ 650 |
Provision | 0 | 25 |
Releases | 0 | 0 |
Balance, end of period | 675 | 675 |
Less than 50% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loan, amount | $ 59,797 | $ 66,371 |
Mortgage loans, percentage | 29.00% | 32.60% |
50% to 60% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loan, amount | $ 37,904 | $ 22,610 |
Mortgage loans, percentage | 18.40% | 11.10% |
60% to 70% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loan, amount | $ 96,435 | $ 102,857 |
Mortgage loans, percentage | 46.80% | 50.40% |
70% to 80% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loan, amount | $ 6,566 | $ 6,642 |
Mortgage loans, percentage | 3.20% | 3.30% |
80% to 90% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loan, amount | $ 5,341 | $ 5,375 |
Mortgage loans, percentage | 2.60% | 2.60% |
Greater than 90% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loan, amount | $ 0 | $ 0 |
Mortgage loans, percentage | 0.00% | 0.00% |
Investments (Real Estate) (Deta
Investments (Real Estate) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Other long-term investments | $ 68,167 | $ 56,851 | ||
Real Estate | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Other long-term investments | 40,100 | $ 35,700 | ||
Operating income from real estate | $ 600 | $ 500 | ||
Ozark National Life Insurance Company | Real Estate | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Other long-term investments | $ 4,300 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | $ 3,334,485 | $ 2,946,059 |
Equity securities | 19,196 | 17,491 |
Derivatives, index options | 71,001 | 14,684 |
Total assets | 3,424,682 | 2,978,234 |
Policyholder account balances | 86,127 | 44,781 |
Other liabilities | 11,598 | 11,923 |
Total liabilities | $ 97,725 | $ 56,704 |
Percent of total | 100.00% | 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 | 19,196 | 17,491 |
Derivatives, index options | 0 | 0 |
Total assets | 19,196 | 17,491 |
Policyholder account balances | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Percent of total | 0.60% | 0.60% |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | $ 3,334,485 | $ 2,946,059 |
Equity securities | 0 | 0 |
Derivatives, index options | 0 | 0 |
Total assets | 3,334,485 | 2,946,059 |
Policyholder account balances | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Percent of total | 97.30% | 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 | 71,001 | 14,684 |
Total assets | 71,001 | 14,684 |
Policyholder account balances | 86,127 | 44,781 |
Other liabilities | 11,598 | 11,923 |
Total liabilities | $ 97,725 | $ 56,704 |
Percent of total | 2.10% | 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 | $ 3,334,485 | $ 2,946,059 |
Equity securities | 19,196 | 17,491 |
Derivatives, index options | 71,001 | 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 | 0 |
Equity securities | 19,196 | 17,491 |
Derivatives, index options | 0 | 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 | 3,334,485 | 2,946,059 |
Equity securities | 0 | 0 |
Derivatives, index options | 0 | 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 | 0 |
Equity securities | 0 | 0 |
Derivatives, index options | 71,001 | 14,684 |
Priced Internally | ||
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 | 0 | 0 |
Priced Internally | Level 1 | ||
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 | 0 | 0 |
Priced Internally | Level 2 | ||
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 | 0 | 0 |
Priced Internally | 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 | $ 0 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Fair Value Measurements for Level 3 Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | $ 14,684 | $ 194,731 |
Total realized and unrealized gains (losses): | ||
Included in net income | 42,003 | (44,394) |
Purchases | 17,592 | 22,376 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (3,278) | (56,357) |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 71,001 | 116,356 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | 40,464 | (44,337) |
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | 56,704 | 226,401 |
Total realized and unrealized gains (losses): | ||
Included in net income | 25,529 | (43,428) |
Purchases | 17,592 | 22,376 |
Sales | 0 | 0 |
Issuances | 3,700 | 0 |
Settlements | (5,800) | (57,847) |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 97,725 | 147,502 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | 38,961 | (44,880) |
Debt Securities, Available for Sale | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | 0 | 0 |
Total realized and unrealized gains (losses): | ||
Included in net income | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 0 | 0 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | 0 | 0 |
Equity Securities | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | 0 | 0 |
Total realized and unrealized gains (losses): | ||
Included in net income | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 0 | 0 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | 0 | 0 |
Derivatives, Index Options | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | 14,684 | 194,731 |
Total realized and unrealized gains (losses): | ||
Included in net income | 42,003 | (44,394) |
Purchases | 17,592 | 22,376 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (3,278) | (56,357) |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 71,001 | 116,356 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | 40,464 | (44,337) |
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 held at the end of the reporting period: | 40,464 | (44,337) |
Total realized and unrealized gains (losses): | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | 0 | 0 |
Net investment income | 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 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 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 held at the end of the reporting period: | 40,464 | (44,337) |
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 held at the end of the reporting period: | 0 | 0 |
Total realized and unrealized gains (losses): | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period: | 38,961 | (44,880) |
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 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 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 held at the end of the reporting period: | $ 0 | $ 0 |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Quantitative Information) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 3,424,682 | $ 2,978,234 |
Liabilities, fair value disclosure | 97,725 | 56,704 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 71,001 | 14,684 |
Liabilities, fair value disclosure | 97,725 | 56,704 |
Derivatives, Index Options | Broker prices | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 71,001 | 14,684 |
Policyholder account balances | Deterministic cash flow model | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | 86,127 | 44,781 |
Other liabilities, share-based compensation | Black-Scholes model | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | 7,898 | $ 11,923 |
Other liabilities, share-based compensation | Probabilistic Method | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | $ 3,700 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments (Fair Value by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Debt securities held to maturity | $ 7,529,552 | $ 7,228,268 |
Debt securities available for sale | 3,334,485 | 2,946,059 |
Derivatives, index options | 71,001 | 14,684 |
Equity securities | 19,196 | 17,491 |
Carrying Values | ||
ASSETS | ||
Debt securities held to maturity | 7,428,925 | 7,285,254 |
Debt securities available for sale | 3,334,485 | |
Securities available for sale | 2,946,059 | |
Cash and cash equivalents | 91,936 | 131,976 |
Mortgage loans | 205,368 | 203,180 |
Policy loans | 81,162 | 54,724 |
Other loans | 19,133 | 12,272 |
Derivatives, index options | 71,001 | 14,684 |
Equity securities | 19,196 | 17,491 |
Life interest in Libbie Shearn Moody Trust | 8,692 | 8,692 |
LIABILITIES | ||
Deferred annuity contracts | 7,337,921 | 7,455,642 |
Immediate annuity and supplemental contracts | 405,313 | 407,413 |
Contingent consideration on businesses acquired | 3,700 | |
Fair Values | ||
ASSETS | ||
Debt securities held to maturity | 7,529,552 | 7,228,268 |
Debt securities available for sale | 3,334,485 | |
Securities available for sale | 2,946,059 | |
Cash and cash equivalents | 91,936 | 131,976 |
Mortgage loans | 205,486 | 202,762 |
Policy loans | 119,559 | 90,802 |
Other loans | 19,423 | 12,709 |
Derivatives, index options | 71,001 | 14,684 |
Equity securities | 19,196 | 17,491 |
Life interest in Libbie Shearn Moody Trust | 12,775 | 12,775 |
LIABILITIES | ||
Deferred annuity contracts | 6,207,730 | 6,403,007 |
Immediate annuity and supplemental contracts | 419,032 | 415,726 |
Contingent consideration on businesses acquired | 3,700 | |
Level 1 | ||
ASSETS | ||
Debt securities held to maturity | 0 | 0 |
Debt securities available for sale | 0 | 0 |
Securities available for sale | 0 | |
Cash and cash equivalents | 91,936 | 131,976 |
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Other loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Equity securities | 19,196 | 17,491 |
Life interest in Libbie Shearn Moody Trust | 0 | 0 |
LIABILITIES | ||
Deferred annuity contracts | 0 | 0 |
Immediate annuity and supplemental contracts | 0 | 0 |
Contingent consideration on businesses acquired | 0 | |
Level 2 | ||
ASSETS | ||
Debt securities held to maturity | 7,527,650 | 7,226,362 |
Debt securities available for sale | 3,334,485 | 2,946,059 |
Securities available for sale | 2,946,059 | |
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 |
LIABILITIES | ||
Deferred annuity contracts | 0 | 0 |
Immediate annuity and supplemental contracts | 0 | 0 |
Contingent consideration on businesses acquired | 0 | |
Level 3 | ||
ASSETS | ||
Debt securities held to maturity | 1,902 | 1,906 |
Debt securities available for sale | 0 | 0 |
Securities available for sale | 0 | |
Cash and cash equivalents | 0 | 0 |
Mortgage loans | 205,486 | 202,762 |
Policy loans | 119,559 | 90,802 |
Other loans | 19,423 | 12,709 |
Derivatives, index options | 71,001 | 14,684 |
Equity securities | 0 | 0 |
Life interest in Libbie Shearn Moody Trust | 12,775 | 12,775 |
LIABILITIES | ||
Deferred annuity contracts | 6,207,730 | 6,403,007 |
Immediate annuity and supplemental contracts | 419,032 | $ 415,726 |
Contingent consideration on businesses acquired | $ 3,700 |
Derivative Investments (Balance
Derivative Investments (Balance Sheet) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 71,001 | $ 14,684 |
Liability Derivatives | 86,127 | 44,781 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 71,001 | 14,684 |
Liability Derivatives | 86,127 | 44,781 |
Derivatives not designated as hedging instruments | Equity index options | Derivatives, Index Options | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 71,001 | 14,684 |
Derivatives not designated as hedging instruments | Fixed-index products | Universal Life and Annuity Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 86,127 | $ 44,781 |
Derivative Investments (Stateme
Derivative Investments (Statements of Earnings) (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in Income on Derivatives | $ 14,971 | $ (1,509) |
Equity index options | Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in Income on Derivatives | 42,003 | (44,394) |
Fixed-index products | Universal Life and Annuity Contract Interest | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in Income on Derivatives | $ (27,032) | $ 42,885 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | Jan. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Value of business acquired | $ 145,696 | $ 145,696 | $ 0 | |
Ozark National Life Insurance Company | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire business | $ 205,500 | |||
Earn-out payment maximum | 5,000 | |||
Contingent consideration on businesses acquired | 3,700 | |||
Acquisition-related costs | $ 3,200 | $ 1,000 | ||
Value of business acquired | $ 147,300 | |||
Revenues of acquiree since acquisition date | 19,600 | |||
Net earnings of acquiree since acquisition date | $ 3,300 |
Business Combinations - Fair Va
Business Combinations - Fair Value of Net Assets Acquired (Details) - Ozark National Life Insurance Company $ in Thousands | Jan. 31, 2019USD ($) |
Assets | |
Debt securities held to maturity | $ 261,059 |
Debt securities available for sale | 400,719 |
Policy loans | 28,128 |
Real estate | 4,600 |
Cash and cash equivalents | 16,275 |
Accrued investment income | 6,116 |
Value of business acquired | 147,319 |
Reinsurance recoverables | 21,910 |
Other intangible assets | 9,600 |
Other assets acquired | 12,026 |
Total assets acquired | 907,752 |
Liabilities | |
Traditional life reserves | 691,698 |
Other policyholder liabilities | 14,984 |
Other liabilities acquired | 5,839 |
Total liabilities acquired | 712,521 |
Net identifiable assets acquired | 195,231 |
Goodwill | 13,864 |
Net assets acquired | $ 209,095 |
Business Combinations - Fair _2
Business Combinations - Fair Value of Intangible Assets Acquired (Details) - Ozark National Life Insurance Company $ in Millions | Jan. 31, 2019USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 9.6 |
Trademarks / trade names | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 2.8 |
Weighted-average amortization period | 15 years |
Internally developed software | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 3.8 |
Weighted-average amortization period | 7 years |
Insurance licenses | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 3 |
Business Combinations - Expecte
Business Combinations - Expected Amortization (Details) - Ozark National Life Insurance Company $ in Thousands | Jan. 31, 2019USD ($) |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Remainder of 2019 | $ 7,303 |
2020 | 9,242 |
2021 | 8,773 |
2022 | 8,365 |
2023 | $ 8,000 |
Business Combinations - Pro For
Business Combinations - Pro Forma (Details) - Ozark National Life Insurance Company - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Business Acquisition [Line Items] | ||
Total revenues | $ 227,708 | $ 138,554 |
Net earnings | $ 41,830 | $ 31,858 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) $ in Millions | May 01, 2019USD ($) |
Disposed of by sale | Subsequent Event | Nursing Home Operations, San Marcos, Texas | |
Subsequent Event [Line Items] | |
Purchase price | $ 7.6 |
Uncategorized Items - nwlgi2019
Label | Element | Value |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||
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 | 0 |
Retained Earnings [Member] | ||
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 | $ 0 |