Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 13, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | SELECTIVE INSURANCE GROUP INC | ||
Entity Central Index Key | 230557 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $1,364,092,316 | ||
Entity Common Stock, Shares Outstanding | 56,878,329 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Fixed income securities, held-to-maturity – at carrying value (fair value: $333,961 – 2014; $416,981 – 2013) | $318,137 | $392,879 |
Fixed income securities, available-for-sale – at fair value (amortized cost: $3,975,786 – 2014; $3,675,977 – 2013) | 4,066,122 | 3,715,536 |
Equity securities, available-for-sale – at fair value (cost: $159,011 – 2014; $155,350 – 2013) | 191,400 | 192,771 |
Short-term investments (at cost which approximates fair value) | 131,972 | 174,251 |
Other investments | 99,203 | 107,875 |
Total investments (Note 5) | 4,806,834 | 4,583,312 |
Cash | 23,959 | 193 |
Interest and dividends due or accrued | 38,901 | 37,382 |
Premiums receivable, net of allowance for uncollectible accounts of: $4,137 – 2014; $4,442 – 2013 | 558,778 | 524,870 |
Reinsurance Recoverables, net (Note 8) | 581,548 | 550,897 |
Prepaid reinsurance premiums (Note 8) | 146,993 | 143,000 |
Current federal income tax (Note 14) | 0 | 512 |
Deferred federal income tax (Note 14) | 98,449 | 122,613 |
Property and equipment – at cost, net of accumulated depreciation and amortization of: $172,183 – 2014; $179,192 – 2013 | 59,416 | 50,834 |
Deferred policy acquisition costs (Note 3) | 185,608 | 172,981 |
Goodwill (Note 11) | 7,849 | 7,849 |
Other assets | 73,215 | 75,727 |
Total assets | 6,581,550 | 6,270,170 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Reserve for losses and loss expenses (Note 9) | 3,477,870 | 3,349,770 |
Unearned premiums | 1,095,819 | 1,059,155 |
Notes payable (Note 10) | 379,297 | 392,414 |
Current federal income tax (Note 14) | 3,921 | 0 |
Accrued salaries and benefits | 158,382 | 111,427 |
Other liabilities | 190,675 | 203,476 |
Total liabilities | 5,305,964 | 5,116,242 |
Stockholders’ Equity: | ||
Preferred stock of $0 par value per share: Authorized shares: 5,000,000; no shares issued or outstanding | 0 | 0 |
Common stock of $2 par value per share Authorized shares: 360,000,000 Issued: 99,947,933 - 2014; 99,120,235 - 2013 | 199,896 | 198,240 |
Additional paid-in capital | 305,385 | 288,182 |
Retained earnings | 1,313,440 | 1,202,015 |
Accumulated other comprehensive income (Note 6) | 19,788 | 24,851 |
Treasury stock – at cost (shares: 43,353,181 – 2014; 43,198,622 – 2013) | -562,923 | -559,360 |
Total stockholders’ equity | 1,275,586 | 1,153,928 |
Commitments and contingencies (Notes 18 and 19) | ||
Total liabilities and stockholders’ equity | $6,581,550 | $6,270,170 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Fixed income securities, held-to-maturity, fair value | $333,961 | $416,981 |
Fixed income securities, available-for-sale, amortized cost | 3,975,786 | 3,675,977 |
Equity securities, available-for-sale, cost | 159,011 | 155,350 |
Premiums receivable, allowance for uncollectible accounts | 4,137 | 4,442 |
Property and equipment, accumulated depreciation and amortization | $172,183 | $179,192 |
Preferred stock, par value per share | $0 | $0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $2 | $2 |
Common stock, shares authorized | 360,000,000 | 360,000,000 |
Common stock, shares issued | 99,947,933 | 99,120,235 |
Treasury stock, shares | 43,353,181 | 43,198,622 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Net premiums earned | $1,852,609 | $1,736,072 | $1,584,119 |
Net Investment Income | 138,708 | 134,643 | 131,877 |
Net realized gains: | |||
Net realized investment gains | 37,703 | 26,375 | 13,252 |
Other-than-temporary impairments | -11,104 | -5,566 | -1,711 |
Other-than-temporary impairments on fixed income securities recognized in other comprehensive income | 0 | -77 | -2,553 |
Total net realized gains | 26,599 | 20,732 | 8,988 |
Other income | 16,945 | 12,294 | 9,118 |
Total revenues | 2,034,861 | 1,903,741 | 1,734,102 |
Expenses: | |||
Losses and loss expenses incurred | 1,157,501 | 1,121,738 | 1,120,990 |
Policy acquisition costs | 624,470 | 579,977 | 526,143 |
Interest expense | 22,086 | 22,538 | 18,872 |
Other expenses | 33,673 | 35,686 | 30,462 |
Total expenses | 1,837,730 | 1,759,939 | 1,696,467 |
Income from continuing operations, before federal income tax | 197,131 | 143,802 | 37,635 |
Federal income tax expense (benefit): | |||
Current | 28,415 | 24,147 | 5,647 |
Deferred | 26,889 | 12,240 | -5,975 |
Total federal income tax expense (benefit) | 55,304 | 36,387 | -328 |
Net income from continuing operations | 141,827 | 107,415 | 37,963 |
Loss on disposal of discontinued operations, net of tax of $(538) – 2013 | 0 | -997 | 0 |
Net income | $141,827 | $106,418 | $37,963 |
Earnings per share: | |||
Basic net income from continuing operations | $2.52 | $1.93 | $0.69 |
Basic net loss from discontinued operations | $0 | ($0.02) | $0 |
Basic net income | $2.52 | $1.91 | $0.69 |
Diluted net income from continuing operations | $2.47 | $1.89 | $0.68 |
Diluted net loss from discontinued operations | $0 | ($0.02) | $0 |
Diluted net income | $2.47 | $1.87 | $0.68 |
Dividends to stockholders | $0.53 | $0.52 | $0.52 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Statement [Abstract] | |||
Loss on disposal of discontinued operations, tax | $0 | ($538) | $0 |
Consolidation_Statements_of_Co
Consolidation Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $141,827 | $106,418 | $37,963 |
Unrealized holding gains (losses) arising during period | 47,411 | -54,557 | 30,937 |
Non-credit portion of other-than-temporary impairments recognized in other comprehensive income | 0 | 50 | 1,660 |
Amount reclassified into net income: Held-to-maturity securities | -844 | -1,025 | -1,581 |
Non-credit other-than-temporary impairment | 1,085 | 9 | 182 |
Realized gains on available for sale securities | -18,762 | -15,301 | -6,118 |
Total unrealized gains (losses) on investment securities | 28,890 | -70,824 | 25,080 |
Net actuarial (loss) gain | -35,189 | 38,775 | -17,268 |
Amount reclassified into net income: Net actuarial loss | 1,236 | 2,843 | 3,837 |
Amount reclassified into net income: Prior service cost | 0 | 6 | 97 |
Amount reclassified into net income: Curtailment expense | 0 | 11 | 0 |
Total defined benefit pension and post-retirement plans | -33,953 | 41,635 | -13,334 |
Other comprehensive (loss) income | -5,063 | -29,189 | 11,746 |
Comprehensive income | $136,764 | $77,229 | $49,709 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive income (loss) [Member] | Treasury stock [Member] |
Beginning of year at Dec. 31, 2011 | $194,494,000 | $257,370,000 | $1,116,319,000 | $42,294,000 | ($552,149,000) | |
Dividend reinvestment plan (shares: 58,309 – 2014; 63,349 – 2013; 90,110 – 2012) | 180,000 | 1,419,000 | ||||
Stock purchase and compensation plans (shares: 769,389 – 2014; 862,662 – 2013; 857,403 – 2012) | 1,714,000 | 11,865,000 | ||||
Net income | 37,963,000 | 37,963,000 | ||||
Dividends to stockholders ($0.53 per share – 2014; $0.52 per share – 2013 and 2012) | -29,128,000 | |||||
Other comprehensive (loss) income | 11,746,000 | 11,746,000 | ||||
Acquisition of treasury stock (shares: 154,559 – 2014; 167,846 – 2013; 194,575 – 2012) | -3,495 | -3,495,000 | ||||
End of year at Dec. 31, 2012 | 1,090,592,000 | 196,388,000 | 270,654,000 | 1,125,154,000 | 54,040,000 | -555,644,000 |
Dividend reinvestment plan (shares: 58,309 – 2014; 63,349 – 2013; 90,110 – 2012) | 127,000 | 1,396,000 | ||||
Stock purchase and compensation plans (shares: 769,389 – 2014; 862,662 – 2013; 857,403 – 2012) | 1,725,000 | 16,132,000 | ||||
Net income | 106,418,000 | 106,418,000 | ||||
Dividends to stockholders ($0.53 per share – 2014; $0.52 per share – 2013 and 2012) | -29,557,000 | |||||
Other comprehensive (loss) income | -29,189,000 | -29,189,000 | ||||
Acquisition of treasury stock (shares: 154,559 – 2014; 167,846 – 2013; 194,575 – 2012) | -3,716 | -3,716,000 | ||||
End of year at Dec. 31, 2013 | 1,153,928,000 | 198,240,000 | 288,182,000 | 1,202,015,000 | 24,851,000 | -559,360,000 |
Dividend reinvestment plan (shares: 58,309 – 2014; 63,349 – 2013; 90,110 – 2012) | 117,000 | 1,306,000 | ||||
Stock purchase and compensation plans (shares: 769,389 – 2014; 862,662 – 2013; 857,403 – 2012) | 1,539,000 | 15,897,000 | ||||
Net income | 141,827,000 | 141,827,000 | ||||
Dividends to stockholders ($0.53 per share – 2014; $0.52 per share – 2013 and 2012) | -30,402,000 | |||||
Other comprehensive (loss) income | -5,063,000 | -5,063,000 | ||||
Acquisition of treasury stock (shares: 154,559 – 2014; 167,846 – 2013; 194,575 – 2012) | -3,563 | -3,563,000 | ||||
End of year at Dec. 31, 2014 | $1,275,586,000 | $199,896,000 | $305,385,000 | $1,313,440,000 | $19,788,000 | ($562,923,000) |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Dividend reinvestment plan, shares | 58,309 | 63,349 | 90,110 | ||||
Stock purchase and compensation plans, shares | 769,389 | 862,662 | 857,403 | ||||
Dividends to stockholders, per share | $0.14 | [1] | $0.13 | [1] | $0.53 | $0.52 | $0.52 |
Acquisition of treasury stock, shares | 154,559 | 167,846 | 194,575 | ||||
Preferred stock, par value per share | $0 | $0 | $0 | $0 | $0 | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | ||
Preferred stock, shares issued | 0 | 0 | 0 | 0 | 0 | ||
Series A Preferred Stock [Member] | |||||||
Preferred stock, par value per share | $0 | $0 | $0 | $0 | $0 | ||
Preferred stock, shares authorized | 300,000 | 300,000 | 300,000 | 300,000 | 300,000 | ||
[1] | 1 See Note 20. “Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds†for a discussion of dividend restrictions. |
Consolidated_Statements_of_Cas
Consolidated Statements of Cashflow (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | |||
Net income | $141,827 | $106,418 | $37,963 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 45,346 | 43,461 | 38,693 |
Sale of renewal rights | -8,000 | 0 | 0 |
Loss on disposal of discontinued operations | 0 | 997 | 0 |
Stock-based compensation expense | 8,702 | 8,630 | 6,939 |
Undistributed (gains) losses of equity method investments | -153 | 202 | 1,651 |
Net realized gains | -26,599 | -20,732 | -8,988 |
Net gain on disposal of property and equipment | -104 | 0 | 0 |
Retirement income plan curtailment expense | 0 | 16 | 0 |
Changes in assets and liabilities: | |||
Increase in reserves for losses and loss expenses, net of reinsurance recoverables | 97,449 | 151,037 | 64,763 |
Increase in Prepaid Reinsurance Premiums Net of Prepaid Reinsurance | 32,671 | 74,086 | 82,764 |
Decrease (increase) in net federal income taxes | 31,323 | 14,834 | -7,812 |
Increase in premiums receivable | -33,908 | -40,482 | -18,094 |
Increase in deferred policy acquisition costs | -12,627 | -17,458 | -19,762 |
(Increase) decrease in interest and dividends due or accrued | -1,536 | -1,372 | 468 |
(Decrease) increase in accrued salaries and benefits | -7,182 | 18,685 | 6,533 |
(Decrease) increase in accrued insurance expenses | -956 | 14,444 | 8,831 |
(Decrease) increase in other assets and other liabilities | -33,490 | -16,642 | 32,750 |
Net adjustments | 90,936 | 229,706 | 188,736 |
Net cash provided by operating activities | 232,763 | 336,124 | 226,699 |
Investing Activities | |||
Purchase of fixed income securities, available-for-sale | -843,616 | -1,069,387 | -884,911 |
Purchase of equity securities, available-for-sale | -186,019 | -118,072 | -83,833 |
Purchase of other investments | -10,617 | -9,332 | -12,990 |
Purchase of short-term investments | -1,410,123 | -2,056,576 | -1,735,691 |
Purchase of subsidiary, net of cash acquired | 0 | 0 | 255 |
Sale of subsidiary | 0 | 1,225 | 751 |
Sale of fixed income securities, available-for-sale | 51,002 | 20,126 | 103,572 |
Sale of short-term investments | 1,452,402 | 2,096,805 | 1,738,255 |
Redemption and maturities of fixed income securities, held-to-maturity | 73,415 | 116,584 | 118,260 |
Redemption and maturities of fixed income securities, available-for-sale | 482,816 | 513,804 | 439,957 |
Sale of equity securities, available-for-sale | 208,008 | 115,782 | 101,740 |
Distributions from other investments | 20,774 | 12,039 | 24,801 |
Sale of other investments | 0 | 0 | 1 |
Purchase of property and equipment | -15,510 | -14,023 | -12,879 |
Sale of renewal rights | 8,000 | 0 | 0 |
Net cash used in investing activities | -169,468 | -391,025 | -202,712 |
Financing Activities | |||
Dividends to stockholders | -28,428 | -27,416 | -26,944 |
Acquisition of treasury stock | -3,563 | -3,716 | -3,495 |
Net proceeds from stock purchase and compensation plans | 7,283 | 7,119 | 4,840 |
Proceeds from issuance of notes payable, net of debt issuance costs | 0 | 178,435 | 0 |
Proceeds from borrowings | -13,000 | 0 | 0 |
Repayment of notes payable | 0 | -100,000 | 0 |
Excess tax benefits from share-based payment arrangements | 1,020 | 1,545 | 1,060 |
Repayment of capital lease obligations | -2,841 | -1,083 | 0 |
Net cash (used in) provided by financing activities | -39,529 | 54,884 | -24,539 |
Net increase (decrease) in cash | 23,766 | -17 | -552 |
Cash, beginning of year | 193 | 210 | 762 |
Cash, end of year | $23,959 | $193 | $210 |
Organization
Organization | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization [Abstract] | ||
Organization | Organization | |
Selective Insurance Group, Inc., through its subsidiaries, (collectively referred to as “we,” “us,” or “our”) offers standard commercial, standard personal, and excess and surplus lines (“E&S”) property and casualty insurance products. Selective Insurance Group, Inc. (referred to as the “Parent”) was incorporated in New Jersey in 1977 and its main offices are located in Branchville, New Jersey. The Parent’s common stock is publicly traded on the NASDAQ Global Select Market under the symbol “SIGI.” We have provided a glossary of terms as Exhibit 99.1 to this Form 10-K, which defines certain industry-specific and other terms that are used in this Form 10-K. | ||
We classify our business into four reportable segments: | ||
• | Standard Commercial Lines - comprised of insurance products and services provided in the standard marketplace to our commercial customers, who are typically businesses, non-profit organizations, and local government agencies. | |
• | Standard Personal Lines - comprised of insurance products and services, including flood insurance coverage, provided primarily to individuals acquiring coverage in the standard marketplace. | |
• | E&S Lines - comprised of insurance products and services provided to customers who have not obtained coverage in the standard marketplace. | |
• | Investments - invests the premiums collected by our Standard Commercial Lines, Standard Personal Lines, and E&S Lines, as well as amounts generated through our capital management strategies, which may include the issuance of debt and equity securities. | |
This is a change from the segments that we have previously reported of Standard Insurance Operations, E&S Insurance Operations, and Investments. All prior year information contained in this Form 10-K has been restated to reflect our revised segments. For qualitative information behind the change, see Note 11. "Segment Information" below. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Summary of Signifcant Accounting Policies | Summary of Significant Accounting Policies | ||
(a) Principles of Consolidation | |||
The accompanying consolidated financial statements ("Financial Statements") include the accounts of the Parent and its subsidiaries, and have been prepared in conformity with: (i) U.S. generally accepted accounting principles ("GAAP"); and (ii) the rules and regulations of the U.S. Securities and Exchange Commission. All significant intercompany accounts and transactions are eliminated in consolidation. | |||
(b) Use of Estimates | |||
The preparation of our Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported financial statement balances, as well as the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. | |||
(c) Reclassifications | |||
Certain amounts in our prior years' Financial Statements and related notes have been reclassified to conform to the 2014 presentation. Such reclassifications had no effect on our net income, stockholders' equity, or cash flows. | |||
(d) Investments | |||
Fixed income securities may include bonds, redeemable preferred stocks, mortgage-backed securities (“MBS”) and asset-backed securities (“ABS”). Fixed income securities classified as available-for-sale (“AFS”) are reported at fair value. Those fixed income securities that we have the ability and positive intent to hold to maturity are classified as held-to-maturity (“HTM”) and are carried at either: (i) amortized cost; or (ii) market value at the date of transfer into the HTM category, adjusted for subsequent amortization. The amortized cost of fixed income securities is adjusted for the amortization of premiums and the accretion of discounts over the expected life of the security using the effective yield method. Premiums and discounts arising from the purchase of MBS are amortized over the expected life of the security based on future principal payments, and considering prepayments. These prepayments are estimated based on historical and projected cash flows. Prepayment assumptions are reviewed quarterly and adjusted to reflect actual prepayments and changes in expectations. Future amortization of any premium and/or discount is adjusted to reflect the revised assumptions. Interest income, as well as amortization and accretion, is included in "Net investment income earned" on our Consolidated Statements of Income. The amortized cost of fixed income securities is written down to fair value when a decline in value is considered to be other than temporary. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Unrealized gains and losses on fixed income securities classified as AFS, net of tax, are included in accumulated other comprehensive income (loss) ("AOCI"). | |||
Equity securities, which are classified as AFS, may include common stocks and non-redeemable preferred stocks, and are carried at fair value. Dividend income on these securities is included in "Net investment income earned" on our Consolidated Statements of Income. The associated unrealized gains and losses, net of tax, are included in AOCI. The cost of equity securities is written down to fair value when a decline in value is considered to be other than temporary. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. | |||
Short-term investments may include certain money market instruments, savings accounts, commercial paper, and other debt issues purchased with a maturity of less than one year. These investments are carried at cost, which approximates fair value. The associated income is included in "Net investment income earned" on our Consolidated Statement of Income. | |||
Other investments may include alternative investments and other securities. Alternative investments are accounted for using the equity method. Our share of distributed and undistributed net income from alternative investments is included in "Net investment income earned" on our Consolidated Statement of Income. Included in other securities are low income housing tax credits, which are accounted for under the proportional amortization method. The remainder of our other securities are accounted for using the equity method. Under the proportional amortization method, our share of the investment’s performance is recorded in our Consolidated Statement of Income as a component of “Federal income tax expense (benefit).” Under the equity method, our share of distributed and undistributed net income is included in "Net investment income earned" on our Consolidated Statement of Income. | |||
Realized gains and losses on the sale of investments are determined on the basis of the cost of the specific investments sold and are credited or charged to income. Included in realized gains and losses are the other-than-temporary impairment ("OTTI") charges recognized in earnings, which are discussed below. | |||
When the fair value of any investment is lower than its cost/amortized cost, an assessment is made to determine if the decline is other than temporary. We regularly review our entire investment portfolio for declines in fair value. If we believe that a decline in the value of an AFS security is temporary, we record the decline as an unrealized loss in AOCI. Temporary declines in the value of an HTM security are not recognized in the Financial Statements. Our assessment of a decline in fair value includes judgment as to the financial position and future prospects of the entity that issued the investment security, as well as a review of the security’s underlying collateral for fixed income investments. Broad changes in the overall market or interest rate environment generally will not lead to a write-down. | |||
Fixed Income Securities and Short-Term Investments | |||
Our evaluation for OTTI of a fixed income security or a short-term investment may include, but is not limited to, the evaluation of the following factors: | |||
• | Whether the decline appears to be issuer or industry specific; | ||
• | The degree to which the issuer is current or in arrears in making principal and interest payments on the fixed income security; | ||
• | The issuer’s current financial condition and ability to make future scheduled principal and interest payments on a timely basis; | ||
• | Evaluation of projected cash flows; | ||
• | Buy/hold/sell recommendations published by outside investment advisors and analysts; and | ||
• | Relevant rating history, analysis, and guidance provided by rating agencies and analysts. | ||
OTTI charges are recognized as a realized loss to the extent that they are credit related, unless we have the intent to sell the security or it is more-likely-than not that we will be required to sell the security. In those circumstances, the security is written down to fair value with the entire amount of the writedown charged to earnings as a component of realized losses. | |||
To determine if an impairment is other than temporary, we compare the present value of cash flows expected to be collected with the amortized cost of fixed income securities meeting certain criteria. In addition, this analysis is performed on all previously-impaired debt securities that continue to be held by us and all structured securities that were not of high-credit quality at the date of purchase. These impairment assessments may include, but are not limited to, discounted cash flow analyses ("DCFs"). | |||
For structured securities, including commercial mortgage-backed securities ("CMBS"), residential mortgage-backed securities ("RMBS"), ABS, and collaterialized debt obligations ("CDOs"), we also consider variables such as expected default, severity, and prepayment assumptions based on security type and vintage, taking into consideration information from credit agencies, historical performance, and other relevant economic and performance factors. | |||
In making our assessment, we perform a DCF to determine the present value of future cash flows to be generated by the underlying collateral of the security. Any shortfall in the expected present value of the future cash flows, based on the DCF, from the amortized cost basis of a security is considered a “credit impairment,” with the remaining decline in fair value of a security considered as a “non-credit impairment.” As mentioned above, credit impairments are charged to earnings as a component of realized losses, while non-credit impairments are recorded to Other Comprehensive Income ("OCI") as a component of unrealized losses. | |||
Discounted Cash Flow Assumptions | |||
The discount rate we use in a DCF is the effective interest rate implicit in the security at the date of acquisition for those structured securities that were not of high-credit quality at acquisition. For all other securities, we use a discount rate that equals the current yield, excluding the impact of previous OTTI charges, used to accrete the beneficial interest. | |||
If applicable, we use a conditional default rate assumption in the DCF to estimate future defaults. The conditional default rate is the proportion of all loans outstanding in a security at the beginning of a time period that are expected to default during that period. Our assumption of this rate takes into consideration the uncertainty of future defaults as well as whether or not these securities have experienced significant cumulative losses or delinquencies to date. | |||
If applicable, conditional default rate assumptions apply at the total collateral pool level held in the securitization trust. Generally, collateral conditional default rates will “ramp-up” over time as the collateral seasons, because the performance begins to weaken and losses begin to surface. As time passes, depending on the collateral type and vintage, losses will peak and performance will begin to improve as weaker borrowers are removed from the pool through delinquency resolutions. In the later years of a collateral pool’s life, performance is generally materially better as the resulting favorable selection of the portfolio improves the overall quality and performance. | |||
For CMBS, we also consider the net operating income (“NOI”) generated by the underlying properties. Our assumptions of the properties’ ultimate cash flows take into consideration both an immediate reduction to the reported NOIs and decreases to projected NOIs. | |||
If applicable, we use a loan loss severity assumption in our DCF that is applied at the loan level of the collateral pool. The loan loss severity assumptions represent the estimated percentage loss on the loan-to-value exposure for a particular security. For CMBS, the loan loss severities applied are based on property type. Losses generated from the evaluations are then applied to the entire underlying deal structure in accordance with the original service agreements. | |||
Equity Securities | |||
Evaluation for OTTI of an equity security may include, but is not limited to, an evaluation of the following factors: | |||
• | Whether the decline appears to be issuer or industry specific; | ||
• | The relationship of market prices per share to book value per share at the date of acquisition and date of evaluation; | ||
• | The price-earnings ratio at the time of acquisition and date of evaluation; | ||
• | The financial condition and near-term prospects of the issuer, including any specific events that may influence the issuer's operations, coupled with our intention to hold the securities in the near-term; | ||
• | The recent income or loss of the issuer; | ||
• | The independent auditors' report on the issuer's recent financial statements; | ||
• | The dividend policy of the issuer at the date of acquisition and the date of evaluation; | ||
• | Buy/hold/sell recommendations or price projections published by outside investment advisors; | ||
• | Rating agency announcements; | ||
• | The length of time and the extent to which the fair value has been, or is expected to be, less than its cost in the near term; and | ||
• | Our expectation of when the cost of the security will be recovered. | ||
If there is a decline in the fair value on an equity security that we do not intend to hold, or if we determine the decline is other-than-temporary, including declines driven by market volatility for which we cannot assert will recover in the near term, we will write down the carrying value of the investment and record the charge through earnings as a component of realized losses. | |||
Other Investments | |||
Our evaluation for OTTI of an other investment (i.e., an alternative investment) may include, but is not limited to, conversations with the management of the alternative investment concerning the following: | |||
• | The current investment strategy; | ||
• | Changes made or future changes to be made to the investment strategy; | ||
• | Emerging issues that may affect the success of the strategy; and | ||
• | The appropriateness of the valuation methodology used regarding the underlying investments. | ||
If there is a decline in the equity method value of an other investment that we do not intend to hold, or if we determine the decline is other than temporary, we write down the cost of the investment and record the charge through earnings as a component of realized losses. | |||
(e) Fair Values of Financial Instruments | |||
Assets | |||
The fair values of our investments are generated using various valuation techniques and are placed into the fair value hierarchy considering the following: (i) the highest priority is given to quoted prices in active markets for identical assets (Level 1); (ii) the next highest priority is given to quoted prices in markets that are not active or inputs that are observable either directly or indirectly, including quoted prices for similar assets in markets that are not active and other inputs that can be derived principally from, or corroborated by, observable market data for substantially the full term of the assets (Level 2); and (iii) the lowest priority is given to unobservable inputs supported by little or no market activity and that reflect our assumptions about the exit price, including assumptions that market participants would use in pricing the asset (Level 3). An asset’s classification within the fair value hierarchy is based on the lowest level of significant input to its valuation. Transfers between levels in the fair value hierarchy are recognized at the end of the reporting period. | |||
The techniques used to value our financial assets are as follows: | |||
• | For valuations of a large portion of our equity securities portfolio, as well as U.S. Treasury Notes held in our fixed income securities portfolio, we receive prices from an independent pricing service that are based on observable market transactions. We validate these prices against a second external pricing service, and if established market value comparison thresholds are breached, further analysis is performed, in conjunction with our external investment managers, to determine the price to be used. These securities are classified as Level 1 in the fair value hierarchy. | ||
• | For approximately 99% of our fixed income securities portfolio, we utilize a market approach, using primarily matrix pricing models prepared by external pricing services. Matrix pricing models use mathematical techniques to value debt securities by relying on the securities relationship to other benchmark quoted securities, and not relying exclusively on quoted prices for specific securities, as the specific securities are not always frequently traded. As a matter of policy, we consistently use one pricing service as our primary source and secondary pricing services if prices are not available from the primary pricing service. In conjunction with our external investment portfolio managers, fixed income securities portfolio pricing is reviewed for reasonableness in the following ways: (i) comparing our pricing to other third-party pricing services as well as benchmark indexed pricing; (ii) comparing positions traded directly by the external investment portfolio managers to prices received from the third-party pricing services; (iii) comparing market value fluctuations between months for reasonableness; and (iv) reviewing stale prices. If further analysis is needed, a challenge is sent to the pricing service for review and confirmation of the price. These prices are typically Level 2 in the fair value hierarchy. | ||
• | For the small portion of our fixed income securities portfolio that we cannot price using our primary or secondary service, we typically use non-binding broker quotes. These prices are from various broker/dealers that use bid or ask prices, or benchmarks to indices, in measuring the fair value of a security. For the small portion of non-public equity securities that we hold, we typically receive prices from a third party pricing service or through statements provided by the security issuer. In conjunction with our external investment portfolio managers, these fair value measurements are reviewed for reasonableness. This review typically includes an analysis of price fluctuations between months with variances over established thresholds being analyzed further. These prices are generally classified as Level 3 in the fair value hierarchy, as the inputs cannot be corroborated by observable market data. | ||
• | Short-term investments are carried at cost, which approximates fair value. Given the liquid nature of our short-term investments, we generally validate their fair value by way of active trades within approximately one week of the financial statement close. These securities are classified as Level 1 in the fair value hierarchy. | ||
Liabilities | |||
The techniques used to value our notes payable are as follows: | |||
• | The fair value of the 5.875% Senior Notes due February 9, 2043 is based on quoted market prices. | ||
• | The fair values of the 7.25% Senior Notes due November 15, 2034 and the 6.70% Senior Notes due November 1, 2035 are based on matrix pricing models prepared by external pricing services. | ||
• | The fair value of the 1.25% and recently repaid 2.90% borrowings from the Federal Home Loan Bank of Indianapolis (“FHLBI”) are estimated using a DCF based on a current borrowing rate provided by the FHLBI consistent with the remaining term of the borrowing. | ||
See Note 7. “Fair Value Measurements” for a summary table of the fair value and related carrying amounts of financial instruments. | |||
(f) Allowance for Doubtful Accounts | |||
We estimate an allowance for doubtful accounts on our premiums receivable. This allowance is based on historical write-off percentages adjusted for the effects of current and anticipated trends. An account is charged off when we believe it is probable that we will not collect a receivable. In making this determination, we consider information obtained from our efforts to collect amounts due directly and/or through collection agencies. | |||
(g) Share-Based Compensation | |||
Share-based compensation consists of all share-based payment transactions in which an entity acquires goods or services by issuing (or offering to issue) its shares, share units, share options, or other equity instruments. The cost resulting from all share-based payment transactions are recognized in the Financial Statements based on the fair value of both equity and liability awards. The fair value is measured at grant date for equity awards, whereas the fair value for liability awards are remeasured at each reporting period. Both the fair value of equity and liability awards is recognized over the requisite service period. The requisite service period is typically the lesser of the vesting period or the period of time from the grant date to the date of retirement eligibility. The expense recognized for share-based awards, which, in some cases, contain performance criteria, is based on the number of shares or units expected to be issued at the end of the performance period. | |||
(h) Reinsurance | |||
Reinsurance recoverables represent estimates of amounts that will be recovered from reinsurers under our various treaties. Generally, amounts recoverable from reinsurers are recognized as assets at the same time and in a manner consistent with the paid and unpaid losses associated with the reinsured policies. We require collateral to secure reinsurance recoverables primarily from our reinsurance carriers that are not authorized, otherwise approved, or certified to do business in our Insurance Subsidiaries’ domiciliary states. This collateral is typically in the form or a letter of credit or cash. An allowance for estimated uncollectible reinsurance is recorded based on an evaluation of balances due from reinsurers and other available information, such as each reinsurers' credit rating from A.M. Best and Company ("A.M. Best") or Standard & Poor's Rating Services ("S&P"). We charge off reinsurance recoverables on paid losses when it becomes probable that we will not collect the balance. | |||
(i) Property and Equipment | |||
Property and equipment used in operations, including certain costs incurred to develop or obtain computer software for internal use, are capitalized and carried at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The following estimated useful lives can be considered as general guidelines: | |||
Asset Category | Years | ||
Computer hardware | 3 | ||
Computer software | 3 to 5 | ||
Internally developed software | 5 | ||
Furniture and fixtures | 10 | ||
Buildings and improvements | 5 to 40 | ||
We recorded depreciation expense of $12.6 million, $10.2 million, and $9.2 million for 2014, 2013, and 2012, respectively. | |||
(j) Deferred Policy Acquisition Costs | |||
Deferred policy acquisition costs are limited to costs directly related to the successful acquisition of insurance contracts. Costs meeting this definition typically include, among other things, sales commissions paid to our distribution partners, premium taxes, and the portion of employee salaries and benefits directly related to time spent on acquired contracts. These costs are deferred and amortized over the life of the contracts. | |||
Accounting guidance requires a premium deficiency analysis to be performed at the level an entity acquires, services, and measures the profitability of its insurance contracts. We currently perform three premium deficiency analyses for our insurance segments, consistent with our segments of Standard Commercial Lines, Standard Personal Lines, and E&S Lines. This is a change from the insurance segments that we have previously reported. For qualitative information behind the change, see Note 11. "Segment Information" below. | |||
There were no premium deficiencies for any of the reported years, as the sum of the anticipated losses and loss expenses, unamortized acquisition costs, policyholder dividends, and other expenses for Standard Commercial Lines, Standard Personal Lines, and E&S Lines did not exceed the related unearned premium and anticipated investment income. The investment yields assumed in the premium deficiency assessment for each reporting period, which are based on our actual average investment yield before tax as of the September 30 calculation date were 3.0% for both 2014 and 2013, and 3.1% for 2012. Deferred policy acquisition costs amortized to expense were $364.3 million for 2014, $331.8 million for 2013, and $298.5 million for 2012. | |||
(k) Goodwill | |||
Goodwill results from business acquisitions where the cost of assets and liabilities acquired exceeds the fair value of those assets and liabilities. A quantitative goodwill impairment analysis is performed if a quarterly qualitative analysis indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Goodwill is allocated to the reporting units for purposes of these analyses. | |||
(l) Reserves for Losses and Loss Expenses | |||
Reserves for losses and loss expenses are comprised of both case reserves and reserves for claims incurred but not yet reported ("IBNR"). Case reserves result from claims that have been reported to one or more of our ten insurance subsidiaries, which are collectively referred to as the "Insurance Subsidiaries," and are estimated for the amount of ultimate payment. IBNR reserves are established based on generally accepted actuarial techniques. Such techniques assume that past experience, adjusted for the effects of current developments and anticipated trends, are an appropriate basis for predicting future events. In applying generally accepted actuarial techniques, we consider a range of possible loss and loss expense reserves in establishing IBNR. | |||
The internal assumptions we consider in the estimation of the IBNR amounts for both asbestos and environmental and non-environmental reserves at our reporting dates are based on: (i) an analysis of both paid and incurred loss and loss expense development trends; (ii) an analysis of both paid and incurred claim count development trends; (iii) the exposure estimates for reported claims; (iv) recent development on exposure estimates with respect to individual large claims and the aggregate of all claims; (v) the rate at which new asbestos and environmental claims are being reported; and (vi) patterns of events observed by claims personnel or reported to them by defense counsel. External factors we monitor for the estimation of IBNR for both asbestos and environmental and non-environmental IBNR reserves include: (i) legislative enactments; (ii) judicial decisions; (iii) legal developments in the determination of liability and the imposition of damages; and (iv) trends in general economic conditions, including the effects of inflation. Adjustments to IBNR are made periodically to take into account changes in the volume of business written, claims frequency and severity, the mix of business, claims processing, and other items that management expects to affect our reserves for losses and loss expenses over time. | |||
By using both individual estimates of reported claims and generally accepted actuarial reserving techniques, we estimate the ultimate net liability for losses and loss expenses. While the ultimate actual liability may be higher or lower than reserves established, we believe the reserves make a reasonable provision, in the aggregate, for all unpaid losses and loss expenses incurred. Any changes in the liability estimate may be material to the results of operations in future periods. We do not discount to present value that portion of our losses and loss expense reserves expected to be paid in future periods; however, our loss and loss expense reserves include anticipated recoveries for salvage and subrogation claims. | |||
Overall reserves are reviewed for adequacy on a periodic basis. As part of the periodic review, we consider the range of possible loss and loss expense reserves, determined at the beginning of the year. This process assumes that past experience, adjusted for the effects of current developments and anticipated trends, is an appropriate basis for predicting future events. However, there is no precise method for subsequently evaluating the impact of any specific factor on the adequacy of reserves because the eventual deficiency or redundancy is affected by many factors. Based upon such reviews, we believe that the estimated reserves for losses and loss expenses make a reasonable provision to cover the ultimate cost of claims. However, the ultimate actual liability may be higher or lower than the reserve established. The changes in these estimates, resulting from the continuous review process and the differences between estimates and ultimate payments, are reflected in the consolidated statements of income for the period in which such estimates are changed and may be material to the results of operations in future periods. | |||
(m) Revenue Recognition | |||
The Insurance Subsidiaries' net premiums written include direct insurance policy writings, plus reinsurance assumed and estimates of premiums earned but unbilled on the workers compensation and general liability lines of insurance, less reinsurance ceded. The estimated premium on the workers compensation and general liability lines is referred to as audit premium. We estimate this premium, as it is anticipated to be either billed or returned on policies subsequent to expiration based on exposure levels (i.e. payroll or sales). Audit premium is based on historical trends adjusted for the uncertainty of future economic conditions. Economic instability could ultimately impact our estimates and assumptions, and changes in our estimate may be material to the results of operations in future periods. Premiums written are recognized as revenue over the period that coverage is provided using the semi-monthly pro-rata method. Unearned premiums and prepaid reinsurance premiums represent that portion of premiums written that are applicable to the unexpired terms of policies in force. | |||
(n) Dividends to Policyholders | |||
We establish reserves for dividends to policyholders on certain policies, most significantly workers compensation policies. These dividends are based on the policyholders' loss experience. The dividend reserves are established based on past experience, adjusted for the effects of current developments and anticipated trends. The expense for these dividends is recognized over a period that begins at policy inception and ends with the payment of the dividend. We do not issue policies that entitle the policyholder to participate in the earnings or surplus of our Insurance Subsidiaries. | |||
(o) Federal Income Tax | |||
We use the asset and liability method of accounting for income taxes. Current federal income taxes are recognized for the estimated taxes payable or refundable on tax returns for the current year. Deferred federal income taxes arise from the recognition of temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities. We consider all evidence, both positive and negative, with respect to our federal tax loss carryback availability, expected levels of pre-tax financial statement income, and federal taxable income, when evaluating whether the temporary differences will be realized. In projecting future taxable income, we begin with budgeted pre-tax income adjusted for estimated non-taxable items. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates we use to manage our businesses. A valuation allowance is established when it is more likely than not that some portion of the deferred tax asset will not be realized. A liability for uncertain tax positions is recorded when it is more likely than not that a tax position will not be sustained upon examination by taxing authorities. The effect of a change in tax rates is recognized in the period of enactment. If we were to be levied interest and penalties by the Internal Revenue Service (“IRS”) the interest would be recognized as “Interest expense” and the penalties would be recognized as “Other expense” on the Consolidated Statements of Income. | |||
(p) Leases | |||
We have various operating leases for office space and equipment. Rental expense for such leases is recorded on a straight-line basis over the lease term. If a lease has a fixed and determinable escalation clause, or periods of rent holidays, the difference between rental expense and rent paid is included in "Other liabilities" as deferred rent in the Consolidated Balance Sheets. | |||
In addition, we have various capital leases for computer hardware and software. These leases are accounted for as an acquisition of an asset and an incurrence of an obligation. Depreciation is calculated using the straight-line method over the shorter of the estimated useful life of the asset or the lease term. | |||
(q) Pension | |||
Our pension and post-retirement life benefit obligations and related costs are calculated using actuarial methods, within the framework of GAAP. Our pension benefit obligation is determined as the actuarial present value of the vested benefits to which the employee is currently entitled, but based on the employee's expected date of separation or retirement. Two key assumptions, the discount rate and the expected return on plan assets, are important elements of expense and/or liability measurement. We evaluate these key assumptions annually unless facts indicate that a more frequent review is required. The discount rate enables us to state expected future cash flows at their present value on the measurement date. The purpose of the discount rate is to determine the interest rates inherent in the price at which pension benefits could be effectively settled. Our discount rate selection is based on high-quality, long-term corporate bonds. To determine the expected long-term rate of return on the plan assets, we consider the current and expected asset allocation, as well as historical and expected returns on each plan asset class. Other assumptions involve demographic factors such as retirement age, mortality, turnover, and rate of compensation increases. In the fourth quarter of 2014, we updated our mortality assumption to reflect RP-2014, which is the table that was most recently adopted by the U.S. Society of Actuaries. |
Adoption_of_Accounting_Pronoun
Adoption of Accounting Pronouncements | 12 Months Ended | |
Dec. 31, 2014 | ||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
Adoption of Accounting Pronouncements | Adoption of Accounting Pronouncements | |
In October 2010, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2010-26, Financial Services-Insurance (Topic 944): Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts (“ASU 2010-26”). ASU 2010-26 requires that only costs that are incremental or directly related to the successful acquisition of new or renewal insurance contracts are to be capitalized as a deferred acquisition cost. This includes, among other items, sales commissions paid to our distribution partners, premium taxes, and the portion of employee salaries and benefits directly related to time spent on acquired contracts. We adopted this guidance on January 1, 2012, with retrospective application. | ||
In May 2011, the FASB issued ASU 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS (“ASU 2011-04”). This guidance changes the wording used to describe the requirements in U.S. GAAP for measuring fair value and disclosing information about fair value measurements to improve consistency in the application and description of fair value between GAAP and International Financial Reporting Standards. ASU 2011-04 clarifies that the concepts of highest and best use and valuation premise in a fair value measurement are relevant only when measuring the fair value of nonfinancial assets, and are not relevant when measuring the fair value of financial assets or liabilities. In addition, ASU 2011-04 expands the disclosures for unobservable inputs for Level 3 fair value measurements, requiring quantitative and qualitative information to be disclosed related to: (i) the valuation processes used; (ii) the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs; and (iii) the use of a nonfinancial asset in a way that differs from the asset’s highest and best use. ASU 2011-04 was effective prospectively for interim and annual periods beginning after December 15, 2011. We have included the disclosures required by this guidance in our notes to the Financial Statements, where appropriate. | ||
In June 2011, the FASB issued ASU 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income | ||
(“ASU 2011-05”). ASU 2011-05 requires that all non-owner changes in stockholders’ equity be presented either in a single | ||
continuous statement of comprehensive income or in two separate but consecutive statements. This standard eliminates the | ||
option to report OCI and its components in the statement of stockholders’ equity. ASU 2011-05 was effective, on a retrospective basis, for interim and annual periods beginning after December 15, 2011. Based on an amendment issued in December 2011, companies were not required to present separate line items on the income statement for reclassification adjustments out of AOCI into net income, as would have been required under the initial ASU. This guidance, which is ASU 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05, was effective concurrently with ASU 2011-05. We have included a Consolidated Statement of Comprehensive Income as part of the Financial Statements to comply with the presentation required under this accounting guidance. | ||
In September 2011, the FASB issued ASU 2011-08, Intangibles-Goodwill and Other (Topic 350): Testing Goodwill for Impairment ("ASU 2011-08"), which simplifies the requirements to test goodwill for impairment. ASU 2011-08 permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing events and circumstances, an entity determines that it is not more likely than not that the fair value of the reporting unit is less than the carrying amount, then performing the two-step impairment test is unnecessary. However, if the entity concludes otherwise, then it is required to perform the quantitative impairment test. ASU 2011-08 was effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, and early adoption was permitted. The adoption of this guidance did not impact our financial condition or results of operation. | ||
In July 2012, the FASB issued ASU 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment ("ASU 2012-02"), which reduces the cost and complexity of performing an impairment test for indefinite-lived intangible assets. This guidance permits an entity to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform a quantitative impairment test. ASU 2012-02 was effective for annual and interim intangible impairment tests performed for fiscal years beginning on, or after, September 15, 2012, and early adoption was permitted. The adoption of this guidance did not impact our financial condition or results of operation. | ||
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income ("ASU 2013-02"), which adds new disclosure requirements for items reclassified out of Accumulated Other Comprehensive Income ("AOCI"). ASU 2013-02 requires entities to disclose additional information about reclassification adjustments, including: (i) changes in AOCI balances by component; and (ii) significant items reclassified out of AOCI. Prospective application of ASU 2013-02 was effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. We have included the disclosures required by ASU 2013-02 in the notes to our Financial Statements, as appropriate. | ||
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force) ("ASU 2013-11"). ASU 2013-11 applies to all entities with unrecognized tax benefits that also have tax loss or tax credit carryforwards in the same tax jurisdiction as of the reporting date. An unrecognized tax benefit is the difference between a tax position taken or expected to be taken in a tax return and the benefit that is more likely than not sustainable under examination. Under ASU 2013-11, an entity must net an unrecognized tax benefit, or a portion of an unrecognized tax benefit, against deferred tax assets for a net operating loss ("NOL") carryforward, a similar tax loss, or a tax credit carryforward except when: | ||
• | An NOL carryforward, a similar tax loss, or a tax credit carryfoward is not available as of the reporting date under the governing tax law to settle taxes that would result from the disallowance of the tax position; or | |
• | The entity does not intend to use the deferred tax asset for this purpose. | |
If either of these conditions exist, an entity should present an unrecognized tax benefit in the financial statements as a liability and should not net the unrecognized tax benefit with a deferred tax asset. ASU 2013-11 was effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance did not impact our financial condition or results of operation. | ||
In January 2014, the FASB issued ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects ("ASU 2014-01"). ASU 2014-01 applies to all reporting entities that invest in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for a low-income housing tax credit. ASU 2014-01 permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using a newly defined "proportional amortization method" if certain conditions are met. This policy election is required to be applied consistently to all qualifying investments, rather than a decision to be applied to individual investments. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received, and recognizes the net investment performance in the income statement as components of income tax expense (benefit). When a company does not make a policy election to account for investments in qualified affordable housing projects using the proportional amortization method, these investments are required to be accounted for as an equity method investment or a cost method investment. ASU 2014-01 is effective for public business entities for annual periods and interim periods within those annual periods, beginning after December 15, 2014, with early adoption being permitted. During the third quarter of 2014, we adopted this guidance and have made a policy election to use the proportional amortization method. The adoption of this guidance did not materially impact our financial condition or results of operation. | ||
Pronouncements to be effective in the future | ||
In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (“ASU 2014-12”). ASU 2014-12 applies to all reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. That is the case when an employee is eligible to retire or otherwise terminate employment before the end of the period in which a performance target could be achieved and still be eligible to vest in the award if and when the performance target is achieved. ASU 2014-12 is intended to resolve the diverse accounting treatment of these types of awards in practice. Many reporting entities were accounting for these types of performance targets as non-vesting conditions that affect the grant-date fair value of the award while other entities treated these performance targets as performance conditions that do not affect the grant-date fair value of the award. ASU 2014-12 clarifies that these types of performance targets should be treated as performance conditions that do not impact the grant-date fair value of the award. This guidance is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2015. The implementation of ASU 2014-12 will not affect us, as we are currently recording expense consistent with the requirements of this accounting update. | ||
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Currently U.S. auditing standards and federal securities law require that an auditor evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern for a reasonable period of time not to exceed one year beyond the date of the financial statements being audited. Due to lack of guidance about management’s responsibility and the differing views about when there is substantial doubt about an entity’s ability to continue as a going concern, there is diversity in whether, when, and how an entity discloses the relevant conditions and events in its footnotes. In connection with preparing financial statements for each annual and interim reporting period, an entity's management should evaluate whether there are conditions or events, considered in the aggregate, that raise considerable doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are to be issued when applicable). The amendments in ASU 2014-15 clarify the timing and content of footnote disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods beginning in 2017. Early application is permitted. The adoption of this ASU is not expected to impact the Company. |
Statements_of_Cash_Flow
Statements of Cash Flow | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||
Statements of Cash Flow | Statements of Cash Flow | ||||||||||
Supplemental cash flow information for the years ended December 31, 2014, 2013, and 2012 is as follows: | |||||||||||
($ in thousands) | 2014 | 2013 | 2012 | ||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | 22,221 | 21,465 | 18,779 | |||||||
Federal income tax | 22,699 | 20,000 | 6,421 | ||||||||
Non-cash items: | |||||||||||
Tax-free exchange of fixed income securities, AFS | $ | 20,781 | 37,965 | 18,942 | |||||||
Tax-free exchange of fixed income securities, HTM | 4,289 | 15,820 | 25,168 | ||||||||
Stock split related to equity securities, AFS | 334 | — | — | ||||||||
Assets acquired under capital lease arrangements | 5,642 | 2,583 | 2,091 | ||||||||
Non-cash purchase of property and equipment | 338 | 20 | — | ||||||||
Included in "Other assets" on the Consolidated Balance Sheet was $6.0 million at December 31, 2014 and $7.3 million at December 31, 2013 of cash received from the National Flood Insurance Program ("NFIP") which is restricted to pay flood claims under the Write Your Own ("WYO") program. |
Investments
Investments | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||
Investments | Investments | |||||||||||||||||||
(a) Net unrealized gains on investments included in OCI by asset class were as follows for the years ended December 31, 2014, 2013, and 2012: | ||||||||||||||||||||
($ in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||
AFS securities: | ||||||||||||||||||||
Fixed income securities | $ | 90,336 | 39,559 | 165,330 | ||||||||||||||||
Equity securities | 32,389 | 37,421 | 18,941 | |||||||||||||||||
Total AFS securities | 122,725 | 76,980 | 184,271 | |||||||||||||||||
HTM securities: | ||||||||||||||||||||
Fixed income securities | 958 | 2,257 | 3,926 | |||||||||||||||||
Total HTM securities | 958 | 2,257 | 3,926 | |||||||||||||||||
Total net unrealized gains | 123,683 | 79,237 | 188,197 | |||||||||||||||||
Deferred income tax expense | (43,289 | ) | (27,733 | ) | (65,869 | ) | ||||||||||||||
Net unrealized gains, net of deferred income tax | 80,394 | 51,504 | 122,328 | |||||||||||||||||
Increase (decrease) in net unrealized gains in OCI, net of deferred income tax | $ | 28,890 | (70,824 | ) | 25,080 | |||||||||||||||
(b) The amortized cost, net unrealized gains and losses, carrying value, unrecognized holding gains and losses, and fair value of HTM fixed income securities were as follows: | ||||||||||||||||||||
December 31, 2014 | Net | |||||||||||||||||||
Unrealized | Unrecognized | Unrecognized | ||||||||||||||||||
Amortized | Gains | Carrying | Holding | Holding | Fair | |||||||||||||||
($ in thousands) | Cost | (Losses) | Value | Gains | Losses | Value | ||||||||||||||
Foreign government | $ | 5,292 | 47 | 5,339 | 55 | — | 5,394 | |||||||||||||
Obligations of state and political subdivisions | 285,301 | 2,071 | 287,372 | 11,760 | — | 299,132 | ||||||||||||||
Corporate securities | 18,899 | (273 | ) | 18,626 | 2,796 | — | 21,422 | |||||||||||||
ABS | 2,818 | (455 | ) | 2,363 | 460 | — | 2,823 | |||||||||||||
CMBS | 4,869 | (432 | ) | 4,437 | 753 | — | 5,190 | |||||||||||||
Total HTM fixed income securities | $ | 317,179 | 958 | 318,137 | 15,824 | — | 333,961 | |||||||||||||
December 31, 2013 | Net | |||||||||||||||||||
Unrealized | Unrecognized | Unrecognized | ||||||||||||||||||
Amortized | Gains | Carrying | Holding | Holding | Fair | |||||||||||||||
($ in thousands) | Cost | (Losses) | Value | Gains | Losses | Value | ||||||||||||||
Foreign government | $ | 5,292 | 131 | 5,423 | 168 | — | 5,591 | |||||||||||||
Obligations of state and political subdivisions | 348,109 | 4,013 | 352,122 | 17,634 | — | 369,756 | ||||||||||||||
Corporate securities | 28,174 | (346 | ) | 27,828 | 2,446 | — | 30,274 | |||||||||||||
ABS | 3,413 | (655 | ) | 2,758 | 657 | — | 3,415 | |||||||||||||
CMBS | 5,634 | (886 | ) | 4,748 | 3,197 | — | 7,945 | |||||||||||||
Total HTM fixed income securities | $ | 390,622 | 2,257 | 392,879 | 24,102 | — | 416,981 | |||||||||||||
Unrecognized holding gains and losses of HTM securities are not reflected in the Financial Statements, as they represent fair value fluctuations from the later of: (i) the date a security is designated as HTM; or (ii) the date that an OTTI charge is recognized on an HTM security, through the date of the balance sheet. Our HTM securities had an average duration of 1.7 years as of December 31, 2014. | ||||||||||||||||||||
(c) The cost/amortized cost, unrealized gains and losses, and fair value of AFS securities were as follows: | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Cost/ | ||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
($ in thousands) | Cost | Gains | Losses | Value | ||||||||||||||||
U.S. government and government agencies | $ | 116,666 | 7,592 | (128 | ) | 124,130 | ||||||||||||||
Foreign government | 27,035 | 796 | — | 27,831 | ||||||||||||||||
Obligations of states and political subdivisions | 1,208,776 | 38,217 | (729 | ) | 1,246,264 | |||||||||||||||
Corporate securities | 1,763,427 | 42,188 | (5,809 | ) | 1,799,806 | |||||||||||||||
ABS | 176,837 | 760 | (373 | ) | 177,224 | |||||||||||||||
CMBS1 | 177,932 | 2,438 | (777 | ) | 179,593 | |||||||||||||||
RMBS2 | 505,113 | 8,587 | (2,426 | ) | 511,274 | |||||||||||||||
AFS fixed income securities | 3,975,786 | 100,578 | (10,242 | ) | 4,066,122 | |||||||||||||||
AFS equity securities | 159,011 | 32,721 | (332 | ) | 191,400 | |||||||||||||||
Total AFS securities | $ | 4,134,797 | 133,299 | (10,574 | ) | 4,257,522 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Cost/ | ||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
($ in thousands) | Cost | Gains | Losses | Value | ||||||||||||||||
U.S. government and government agencies | $ | 163,218 | 10,661 | (504 | ) | 173,375 | ||||||||||||||
Foreign government | 29,781 | 906 | (72 | ) | 30,615 | |||||||||||||||
Obligations of states and political subdivisions | 946,455 | 25,194 | (20,025 | ) | 951,624 | |||||||||||||||
Corporate securities | 1,707,928 | 44,004 | (17,049 | ) | 1,734,883 | |||||||||||||||
ABS | 140,430 | 934 | (468 | ) | 140,896 | |||||||||||||||
CMBS1 | 172,288 | 2,462 | (3,466 | ) | 171,284 | |||||||||||||||
RMBS2 | 515,877 | 7,273 | (10,291 | ) | 512,859 | |||||||||||||||
AFS fixed income securities | 3,675,977 | 91,434 | (51,875 | ) | 3,715,536 | |||||||||||||||
AFS equity securities | 155,350 | 37,517 | (96 | ) | 192,771 | |||||||||||||||
Total AFS securities | $ | 3,831,327 | 128,951 | (51,971 | ) | 3,908,307 | ||||||||||||||
1 CMBS includes government guaranteed agency securities with a fair value of $13.2 million at December 31, 2014 and $30.0 million at December 31, 2013. | ||||||||||||||||||||
2 RMBS includes government guaranteed agency securities with a fair value of $32.4 million at December 31, 2014 and $55.2 million at December 31, 2013. | ||||||||||||||||||||
Unrealized gains and losses of AFS securities represent fair value fluctuations from the later of: (i) the date a security is designated as AFS; or (ii) the date that an OTTI charge is recognized on an AFS security, through the date of the balance sheet. These unrealized gains and losses are recorded in AOCI on the Consolidated Balance Sheets. | ||||||||||||||||||||
(d) The following tables summarize, for all securities in a net unrealized/unrecognized loss position at December 31, 2014 and December 31, 2013, the fair value and pre-tax net unrealized/unrecognized loss by asset class and by length of time those securities have been in a net loss position: | ||||||||||||||||||||
31-Dec-14 | Less than 12 months | 12 months or longer | ||||||||||||||||||
($ in thousands) | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||
Value | Losses1 | Value | Losses1 | |||||||||||||||||
AFS securities: | ||||||||||||||||||||
U.S. government and government agencies | $ | 7,567 | (13 | ) | 10,866 | (115 | ) | |||||||||||||
Obligations of states and political subdivisions | 47,510 | (105 | ) | 64,018 | (624 | ) | ||||||||||||||
Corporate securities | 276,648 | (1,734 | ) | 153,613 | (4,075 | ) | ||||||||||||||
ABS | 113,202 | (178 | ) | 15,618 | (195 | ) | ||||||||||||||
CMBS | 12,799 | (34 | ) | 59,219 | (743 | ) | ||||||||||||||
RMBS | 3,399 | (8 | ) | 138,724 | (2,418 | ) | ||||||||||||||
Total fixed income securities | 461,125 | (2,072 | ) | 442,058 | (8,170 | ) | ||||||||||||||
Equity securities | 5,262 | (336 | ) | — | — | |||||||||||||||
Subtotal | $ | 466,387 | (2,408 | ) | 442,058 | (8,170 | ) | |||||||||||||
Less than 12 months | 12 months or longer | |||||||||||||||||||
($ in thousands) | Fair | Unrealized | Unrecognized | Fair | Unrealized | Unrecognized | ||||||||||||||
Value | Losses1 | Gains2 | Value | Losses1 | Gains2 | |||||||||||||||
HTM securities: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 196 | (3 | ) | 1 | — | — | — | ||||||||||||
ABS | — | — | — | 2,235 | (455 | ) | 439 | |||||||||||||
Subtotal | $ | 196 | (3 | ) | 1 | 2,235 | (455 | ) | 439 | |||||||||||
Total AFS and HTM | $ | 466,583 | (2,411 | ) | 1 | 444,293 | (8,625 | ) | 439 | |||||||||||
31-Dec-13 | Less than 12 months | 12 months or longer | ||||||||||||||||||
($ in thousands) | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||
Value | Losses1 | Value | Losses1 | |||||||||||||||||
AFS securities: | ||||||||||||||||||||
U.S. government and government agencies | $ | 16,955 | (500 | ) | 507 | (4 | ) | |||||||||||||
Foreign government | 2,029 | (30 | ) | 2,955 | (42 | ) | ||||||||||||||
Obligations of states and political subdivisions | 442,531 | (19,120 | ) | 13,530 | (905 | ) | ||||||||||||||
Corporate securities | 511,100 | (15,911 | ) | 14,771 | (1,138 | ) | ||||||||||||||
ABS | 68,725 | (468 | ) | — | — | |||||||||||||||
CMBS | 100,396 | (2,950 | ) | 6,298 | (516 | ) | ||||||||||||||
RMBS | 268,943 | (10,031 | ) | 2,670 | (260 | ) | ||||||||||||||
Total fixed income securities | 1,410,679 | (49,010 | ) | 40,731 | (2,865 | ) | ||||||||||||||
Equity securities | 1,124 | (96 | ) | — | — | |||||||||||||||
Subtotal | $ | 1,411,803 | (49,106 | ) | 40,731 | (2,865 | ) | |||||||||||||
Less than 12 months | 12 months or longer | |||||||||||||||||||
($ in thousands) | Fair | Unrealized | Unrecognized | Fair | Unrealized | Unrecognized | ||||||||||||||
Value | Losses1 | Gains2 | Value | Losses1 | Gains2 | |||||||||||||||
HTM securities: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 65 | (5 | ) | 5 | 441 | (20 | ) | 14 | |||||||||||
ABS | — | — | — | 2,490 | (655 | ) | 621 | |||||||||||||
Subtotal | $ | 65 | (5 | ) | 5 | 2,931 | (675 | ) | 635 | |||||||||||
Total AFS and HTM | $ | 1,411,868 | (49,111 | ) | 5 | 43,662 | (3,540 | ) | 635 | |||||||||||
1 Gross unrealized losses include non-OTTI unrealized amounts and OTTI losses recognized in AOCI. In addition, this column includes remaining unrealized gain or loss amounts on securities that were transferred to an HTM designation in the first quarter of 2009 for those securities that are in a net unrealized/unrecognized loss position. | ||||||||||||||||||||
2 Unrecognized holding gains represent fair value fluctuations from the later of: (i) the date a security is designated as HTM; or (ii) the date that an OTTI charge is recognized on an HTM security. | ||||||||||||||||||||
The table below provides our net unrealized/unrecognized loss positions by impairment severity as of December 31, 2014 compared to the prior year: | ||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||
Number of | % of | Unrealized/Unrecognized | Number of | % of | Unrealized/ | |||||||||||||||
Issues | Market/Book | Loss | Issues | Market/Book | Unrecognized | |||||||||||||||
Loss | ||||||||||||||||||||
350 | 80% - 99% | $ | 10,596 | 556 | 80% - 99% | $ | 51,835 | |||||||||||||
— | 60% - 79% | — | 1 | 60% - 79% | 176 | |||||||||||||||
— | 40% - 59% | — | — | 40% - 59% | — | |||||||||||||||
— | 20% - 39% | — | — | 20% - 39% | — | |||||||||||||||
— | 0% - 19% | — | — | 0% - 19% | — | |||||||||||||||
$ | 10,596 | $ | 52,011 | |||||||||||||||||
At December 31, 2014, we had 350 securities in an aggregate unrealized/unrecognized loss position of $10.6 million, compared to 557 securities in an aggregate unrealized/unrecognized loss position of $52.0 million at December 31, 2013. This improvement was mainly driven by a lower interest rate environment. Fixed income security pricing in the marketplace has improved reflecting the 86 basis point decrease in the 10-year U.S. Treasury Note during 2014. At December 31, 2014, $8.2 million of the aggregate unrealized/unrecognized losses related to securities that have been in a loss position for more than 12 months, while at December 31, 2013, these losses amounted to $2.9 million. Included in the $8.2 million was one security that experienced a rating downgrade during 2014. The impairment severity on this security deteriorated from 9% at December 31, 2013 to 13%, or $1.1 million, at December 31, 2014. Given the close proximity of amortized cost and market value, we have concluded that this security is not other-than-temporarily impaired. Excluding this one security, the nature of the unrealized/unrecognized losses over 12 months is interest-rate related as opposed to credit-related concerns, as evidenced by the fact that the severity of impairment on these securities improved from an average of 6% of amortized cost at December 31, 2013 to an average of 2% of amortized cost at December 31, 2014. | ||||||||||||||||||||
For a discussion regarding the sensitivity of interest rate movements and the related impacts on the fixed income securities portfolio, refer to Item 7A. "Quantitative and Qualitative Disclosures About Market Risk" of this Form 10-K. | ||||||||||||||||||||
We have reviewed the securities in the tables above in accordance with our OTTI policy, as described in Note 2. “Summary of Significant Accounting Policies” of this Form 10-K. In addition, we do not intend to sell any securities in an unrealized/unrecognized loss position nor do we believe we will be required to sell these securities, and therefore we have concluded that they are temporarily impaired as of December 31, 2014. This conclusion reflects our current judgment as to the financial position and future prospects of the entity that issued the investment security and underlying collateral. If our judgment about an individual security changes in the future, we may ultimately record a credit loss after having originally concluded that one did not exist, which could have a material impact on our net income and financial position in future periods. | ||||||||||||||||||||
(e) Fixed income securities at December 31, 2014, by contractual maturity are shown below. Mortgage-backed securities ("MBS") are included in the maturity tables using the estimated average life of each security. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||
Listed below are HTM fixed income securities at December 31, 2014: | ||||||||||||||||||||
($ in thousands) | Carrying Value | Fair Value | ||||||||||||||||||
Due in one year or less | $ | 113,266 | 114,795 | |||||||||||||||||
Due after one year through five years | 193,983 | 206,188 | ||||||||||||||||||
Due after five years through 10 years | 10,888 | 12,978 | ||||||||||||||||||
Total HTM fixed income securities | $ | 318,137 | $ | 333,961 | ||||||||||||||||
Listed below are AFS fixed income securities at December 31, 2014: | ||||||||||||||||||||
($ in thousands) | Fair Value | |||||||||||||||||||
Due in one year or less | $ | 435,190 | ||||||||||||||||||
Due after one year through five years | 1,961,179 | |||||||||||||||||||
Due after five years through 10 years | 1,593,287 | |||||||||||||||||||
Due after 10 years | 76,466 | |||||||||||||||||||
Total AFS fixed income securities | $ | 4,066,122 | ||||||||||||||||||
(f) The following table summarizes our other investment portfolio by strategy and the remaining commitment amount associated with each strategy: | ||||||||||||||||||||
Other Investments | Carrying Value | 2014 | ||||||||||||||||||
December 31, | December 31, | Remaining | ||||||||||||||||||
($ in thousands) | 2014 | 2013 | Commitment | |||||||||||||||||
Alternative Investments | ||||||||||||||||||||
Secondary private equity | $ | 21,807 | 25,618 | 7,001 | ||||||||||||||||
Private equity | 20,126 | 20,192 | 8,890 | |||||||||||||||||
Energy/power generation | 14,445 | 17,361 | 21,905 | |||||||||||||||||
Real estate | 11,452 | 11,698 | 10,051 | |||||||||||||||||
Mezzanine financing | 9,853 | 12,738 | 13,541 | |||||||||||||||||
Distressed debt | 8,679 | 11,579 | 2,982 | |||||||||||||||||
Venture capital | 6,606 | 7,025 | 350 | |||||||||||||||||
Total alternative investments | 92,968 | 106,211 | 64,720 | |||||||||||||||||
Other securities | 6,235 | 1,664 | 3,711 | |||||||||||||||||
Total other investments | $ | 99,203 | 107,875 | 68,431 | ||||||||||||||||
The following is a description of our alternative investment strategies: | ||||||||||||||||||||
Secondary Private Equity | ||||||||||||||||||||
This strategy purchases seasoned private equity funds from investors desiring liquidity prior to normal fund termination. Investments are made across all sectors of the private equity market, including leveraged buyouts ("LBO"), venture capital, distressed securities, mezzanine financing, real estate, and infrastructure. | ||||||||||||||||||||
Private Equity | ||||||||||||||||||||
This strategy makes private equity investments, primarily in established large and middle market companies across diverse industries globally. | ||||||||||||||||||||
Energy/Power Generation | ||||||||||||||||||||
This strategy invests primarily in cash flow generating assets in the coal, natural gas, power generation, and electric and gas transmission and distribution industries. | ||||||||||||||||||||
Mezzanine Financing | ||||||||||||||||||||
This strategy provides privately negotiated fixed income securities, generally with an equity component, to LBO firms and private and publicly traded large, mid and small-cap companies to finance LBOs, recapitalizations, and acquisitions. | ||||||||||||||||||||
Real Estate | ||||||||||||||||||||
This strategy invests opportunistically in real estate in North America, Europe, and Asia via direct property ownership, joint ventures, mortgages, and investments in equity and debt instruments. | ||||||||||||||||||||
Distressed Debt | ||||||||||||||||||||
This strategy makes direct and indirect investments in debt and equity securities of companies that are experiencing financial and/or operational distress. Investments include buying indebtedness of bankrupt or financially troubled companies, small balance loan portfolios, special situations and capital structure arbitrage trades, commercial real estate mortgages and similar non-U.S. securities and debt obligations. This strategy includes a fund of funds component. | ||||||||||||||||||||
Venture Capital | ||||||||||||||||||||
In general, these investments are venture capital investments made principally by investing in equity securities of privately held corporations, for long-term capital appreciation. This strategy makes private equity investments in growth equity and buyout partnerships. | ||||||||||||||||||||
Our seven alternative investment strategies employ low or moderate levels of leverage and generally use hedging only to reduce foreign exchange or interest rate volatility. At this time, our alternative investment strategies do not include hedge funds. We cannot redeem our investments with the general partners of these investments; however, occasionally these partnerships can be traded on the secondary market. Once liquidation is triggered by clauses within the limited partnership agreements or at the funds’ stated end date, we will receive our final allocation of capital and any earned appreciation of the underlying investments, assuming we have not divested ourselves of our partnership interests prior to that time. We currently receive distributions from these alternative investments through the realization of the underlying investments in the limited partnerships. We anticipate that the general partners of these alternative investments will liquidate their underlying investment portfolios through 2028. | ||||||||||||||||||||
The following tables set forth summarized financial information for our other investments portfolio, including the portion not owned by us. The investments are carried under the equity method of accounting. The last line in the income statement information table below reflects our share of the aggregate income, which is the portion included in our Financial Statements. As the majority of these investments report results to us on a one quarter lag, the summarized financial statement information is as of, and for the 12-month period ended, September 30: | ||||||||||||||||||||
Balance Sheet Information | ||||||||||||||||||||
September 30, | ||||||||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||||||
Investments | $ | 10,096 | 11,020 | |||||||||||||||||
Total assets | 10,695 | 11,727 | ||||||||||||||||||
Total liabilities | 545 | 573 | ||||||||||||||||||
Partners’ capital | 10,150 | 11,154 | ||||||||||||||||||
Income Statement Information | ||||||||||||||||||||
12 months ended September 30, | ||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Net investment income | $ | 226 | 406 | 226 | ||||||||||||||||
Realized gains | 581 | 913 | 1,015 | |||||||||||||||||
Net change in unrealized appreciation (depreciation) | 1,098 | 382 | (100 | ) | ||||||||||||||||
Net income | $ | 1,905 | 1,701 | 1,141 | ||||||||||||||||
Insurance Subsidiaries' other investments income | 13.6 | 15.2 | 9 | |||||||||||||||||
(g) We have pledged certain AFS fixed income securities as collateral related to: (i) our outstanding borrowing of $45 million with the Federal Home Loan Bank of Indianapolis ("FHLBI"); (ii) our reinsurance obligations related to our 2011 acquisition of our E&S book of business; and (iii) our compliance with insurance laws by placing certain securities on deposit with various state and regulatory agencies. We retain all rights regarding all securities pledged as collateral. | ||||||||||||||||||||
The following table summarizes the market value of these securities at December 31, 2014: | ||||||||||||||||||||
($ in millions) | FHLBI Collateral | Reinsurance Collateral | State and Regulatory Deposits | Total | ||||||||||||||||
U.S. government and government agencies | $ | 7.7 | — | 25.3 | 33 | |||||||||||||||
Obligations of states and political subdivisions | — | 5.7 | — | 5.7 | ||||||||||||||||
Corporate securities | — | 5.3 | — | 5.3 | ||||||||||||||||
ABS | — | 1.1 | — | 1.1 | ||||||||||||||||
CMBS | 2.2 | — | — | 2.2 | ||||||||||||||||
RMBS | 50.8 | 2.3 | — | 53.1 | ||||||||||||||||
Total pledged as collateral | $ | 60.7 | 14.4 | 25.3 | 100.4 | |||||||||||||||
(h) The components of pre-tax net investment income earned were as follows: | ||||||||||||||||||||
($ in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||
Fixed income securities | $ | 126,489 | 121,582 | 124,687 | ||||||||||||||||
Equity securities, dividend income | 7,449 | 6,140 | 6,215 | |||||||||||||||||
Short-term investments | 66 | 117 | 151 | |||||||||||||||||
Other investments | 13,580 | 15,208 | 8,996 | |||||||||||||||||
Investment expenses | (8,876 | ) | (8,404 | ) | (8,172 | ) | ||||||||||||||
Net investment income earned | $ | 138,708 | 134,643 | 131,877 | ||||||||||||||||
(i) The following tables summarize OTTI by asset type for the periods indicated: | ||||||||||||||||||||
2014 | Recognized in | |||||||||||||||||||
($ in thousands) | Gross | Included in OCI | Earnings | |||||||||||||||||
AFS fixed income securities: | ||||||||||||||||||||
RMBS | $ | 7 | — | 7 | ||||||||||||||||
Total AFS fixed income securities | 7 | — | 7 | |||||||||||||||||
Equity securities | 10,517 | — | 10,517 | |||||||||||||||||
Total AFS securities | 10,524 | — | 10,524 | |||||||||||||||||
Other investments | 580 | — | 580 | |||||||||||||||||
OTTI losses | $ | 11,104 | — | 11,104 | ||||||||||||||||
2013 | Recognized in | |||||||||||||||||||
($ in thousands) | Gross | Included in OCI | Earnings | |||||||||||||||||
HTM fixed income securities: | ||||||||||||||||||||
ABS | $ | (44 | ) | (47 | ) | 3 | ||||||||||||||
Total HTM fixed income securities | (44 | ) | (47 | ) | 3 | |||||||||||||||
AFS fixed income securities: | ||||||||||||||||||||
RMBS | 16 | (30 | ) | 46 | ||||||||||||||||
Total AFS fixed income securities | 16 | (30 | ) | 46 | ||||||||||||||||
Equity securities | 3,747 | — | 3,747 | |||||||||||||||||
Total AFS securities | 3,763 | (30 | ) | 3,793 | ||||||||||||||||
Other investments | 1,847 | — | 1,847 | |||||||||||||||||
OTTI losses | $ | 5,566 | (77 | ) | 5,643 | |||||||||||||||
2012 | Recognized in | |||||||||||||||||||
($ in thousands) | Gross | Included in OCI | Earnings | |||||||||||||||||
AFS fixed income securities: | ||||||||||||||||||||
ABS | $ | 98 | — | 98 | ||||||||||||||||
CMBS | (1,525 | ) | (2,335 | ) | 810 | |||||||||||||||
RMBS | (35 | ) | (218 | ) | 183 | |||||||||||||||
Total AFS fixed income securities | (1,462 | ) | (2,553 | ) | 1,091 | |||||||||||||||
Equity securities | 3,173 | — | 3,173 | |||||||||||||||||
OTTI losses | $ | 1,711 | (2,553 | ) | 4,264 | |||||||||||||||
The majority of the OTTI charges in 2014, 2013, and 2012 were comprised of charges on our equity portfolio. In 2014, $9.0 million related to securities for which we had the intent to sell in relation to a change in our high-dividend yield strategy. In 2013, $2.0 million related to securities that we did not believe would recover in the near term and $1.7 million related to securities for which we had the intent to sell. Contributing to the OTTI charges in 2013 were $1.8 million of charges that relate to an investment in a limited liability company within our other investments portfolio that has sustained significant losses for which we do not anticipate recovery. In 2012, $1.0 million related to securities that we did not believe would recover in the near term and $2.2 million related to securities for which we had the intent to sell. | ||||||||||||||||||||
The following table sets forth, for the periods indicated, credit loss impairments on fixed income securities for which a portion of the OTTI charge was recognized in OCI, and the corresponding changes in such amounts: | ||||||||||||||||||||
($ in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||
Balance, beginning of year | $ | 7,488 | 7,477 | 6,602 | ||||||||||||||||
Addition for the amount related to credit loss for which an OTTI was not previously recognized | — | — | — | |||||||||||||||||
Reductions for securities sold during the period | (2,044 | ) | — | — | ||||||||||||||||
Reductions for securities for which the amount previously recognized in OCI was recognized in earnings because of intention or potential requirement to sell before recovery of amortized cost | — | — | — | |||||||||||||||||
Reductions for securities for which the entire amount previously recognized in OCI was recognized in earnings due to a decrease in cash flows expected | — | — | — | |||||||||||||||||
Additional increases to the amount related to credit loss for which an OTTI was previously recognized | — | 11 | 875 | |||||||||||||||||
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | — | — | — | |||||||||||||||||
Balance, end of year | $ | 5,444 | 7,488 | 7,477 | ||||||||||||||||
(j) The components of net realized gains, excluding OTTI charges, were as follows: | ||||||||||||||||||||
($ in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||
HTM fixed income securities | ||||||||||||||||||||
Gains | $ | 2 | 195 | 194 | ||||||||||||||||
Losses | (20 | ) | (95 | ) | (217 | ) | ||||||||||||||
AFS fixed income securities | ||||||||||||||||||||
Gains | 1,945 | 3,340 | 4,452 | |||||||||||||||||
Losses | (392 | ) | (373 | ) | (472 | ) | ||||||||||||||
AFS equity securities | ||||||||||||||||||||
Gains | 36,871 | 24,776 | 10,901 | |||||||||||||||||
Losses | (704 | ) | (408 | ) | (1,205 | ) | ||||||||||||||
Short-term investments | ||||||||||||||||||||
Losses | — | — | (2 | ) | ||||||||||||||||
Other investments | ||||||||||||||||||||
Gains | 1 | — | 1 | |||||||||||||||||
Losses | — | (1,060 | ) | (400 | ) | |||||||||||||||
Total other net realized investment gains | $ | 37,703 | 26,375 | 13,252 | ||||||||||||||||
Realized gains and losses on the sale of investments are determined on the basis of the cost of the specific investments sold. Proceeds from the sale of AFS securities were $259.0 million in 2014, $135.9 million in 2013, and $205.3 million in 2012. Net realized gains in 2014, 2013, and 2012, excluding OTTI charges, were driven by the sale of AFS equity securities due to the rebalancing of our high-dividend yield strategy holdings within our equity portfolio. In addition, $9.2 million of the 2014 gains on our equity portfolio related to a change in our strategy for this portfolio. |
Stockholders_Equity_and_Compre
Stockholders' Equity and Comprehensive Income | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||||||||||||||||||
Stockholders' Equity and Comprehensive Income | Stockholders’ Equity and Comprehensive Income | |||||||||||||||||||
(a) | Stockholders’ Equity | |||||||||||||||||||
As of December 31, 2014, we had 13.3 million shares reserved for various stock compensation and purchase plans, retirement plans, and dividend reinvestment plans. As a convenience to our employees and directors, we repurchase the Parent’s stock from time-to-time as permitted under our stock-based compensation plans. The Parent has not had an authorized stock repurchase program since 2009. The following table provides information regarding the purchase of the Parent’s common stock during the 2012 through 2014 reporting periods: | ||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||
Shares Purchased in Connection with Restricted Stock Vestings and Stock Option Exercises | Cost of Shares Purchased in Connection with Restricted Stock Vestings and Stock Option | |||||||||||||||||||
Period | Exercises | |||||||||||||||||||
2014 | 154,559 | $ | 3,563 | |||||||||||||||||
2013 | 167,846 | 3,716 | ||||||||||||||||||
2012 | 194,575 | 3,495 | ||||||||||||||||||
Our ability to declare and pay dividends on the Parent's common stock is dependent on liquidity at the Parent coupled with the ability of the Insurance Subsidiaries to declare and pay dividends, if necessary, and/or the availability of other sources of liquidity to the Parent. See Note 20. “Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds” for information regarding these dividend restrictions. | ||||||||||||||||||||
(b) The components of comprehensive income, both gross and net of tax, for 2014, 2013, and 2012 were as follows: | ||||||||||||||||||||
2014 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 197,131 | 55,304 | 141,827 | ||||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized gains on investment securities: | ||||||||||||||||||||
Unrealized holding gains during the year | 72,940 | 25,529 | 47,411 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | (1,299 | ) | (455 | ) | (844 | ) | ||||||||||||||
Non-credit OTTI | 1,669 | 584 | 1,085 | |||||||||||||||||
Realized gains on AFS securities | (28,864 | ) | (10,102 | ) | (18,762 | ) | ||||||||||||||
Net unrealized gains | 44,446 | 15,556 | 28,890 | |||||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Net actuarial loss | (54,136 | ) | (18,947 | ) | (35,189 | ) | ||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 1,902 | 666 | 1,236 | |||||||||||||||||
Defined benefit pension and post-retirement plans | (52,234 | ) | (18,281 | ) | (33,953 | ) | ||||||||||||||
Other comprehensive loss | (7,788 | ) | (2,725 | ) | (5,063 | ) | ||||||||||||||
Comprehensive income | $ | 189,343 | 52,579 | 136,764 | ||||||||||||||||
2013 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 142,267 | 35,849 | 106,418 | ||||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized losses on investment securities: | ||||||||||||||||||||
Unrealized holding losses during the period | (83,934 | ) | (29,377 | ) | (54,557 | ) | ||||||||||||||
Non-credit OTTI recognized in OCI | 77 | 27 | 50 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | (1,577 | ) | (552 | ) | (1,025 | ) | ||||||||||||||
Non-credit OTTI | 14 | 5 | 9 | |||||||||||||||||
Realized gains on AFS securities | (23,540 | ) | (8,239 | ) | (15,301 | ) | ||||||||||||||
Net unrealized losses | (108,960 | ) | (38,136 | ) | (70,824 | ) | ||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Net actuarial gain | 59,654 | 20,879 | 38,775 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 4,374 | 1,531 | 2,843 | |||||||||||||||||
Prior service cost | 10 | 4 | 6 | |||||||||||||||||
Curtailment expense | 16 | 5 | 11 | |||||||||||||||||
Defined benefit pension and post-retirement plans | 64,054 | 22,419 | 41,635 | |||||||||||||||||
Other comprehensive loss | (44,906 | ) | (15,717 | ) | (29,189 | ) | ||||||||||||||
Comprehensive income | $ | 97,361 | 20,132 | 77,229 | ||||||||||||||||
2012 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 37,635 | (328 | ) | 37,963 | |||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized gains on investment securities: | ||||||||||||||||||||
Unrealized holding gains during the period | 47,594 | 16,657 | 30,937 | |||||||||||||||||
Non-credit OTTI recognized in OCI | 2,554 | 894 | 1,660 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | (2,432 | ) | (851 | ) | (1,581 | ) | ||||||||||||||
Non-credit OTTI | 280 | 98 | 182 | |||||||||||||||||
Realized gains on AFS securities | (9,412 | ) | (3,294 | ) | (6,118 | ) | ||||||||||||||
Net unrealized gains | 38,584 | 13,504 | 25,080 | |||||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Net actuarial loss | (26,566 | ) | (9,298 | ) | (17,268 | ) | ||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 5,903 | 2,066 | 3,837 | |||||||||||||||||
Prior service cost | 150 | 53 | 97 | |||||||||||||||||
Defined benefit pension and post-retirement plans | (20,513 | ) | (7,179 | ) | (13,334 | ) | ||||||||||||||
Other comprehensive income | 18,071 | 6,325 | 11,746 | |||||||||||||||||
Comprehensive income | $ | 55,706 | 5,997 | 49,709 | ||||||||||||||||
(c) The balances of, and changes in, each component of AOCI (net of taxes) as of December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||
Net Unrealized (Loss) Gain on Investment Securities | ||||||||||||||||||||
($ in thousands) | OTTI Related | HTM Related | All Other | Investments Subtotal | Defined Benefit Pension and Post- retirement Plans | Total AOCI | ||||||||||||||
Balance, December 31, 2012 | $ | (1,658 | ) | 2,594 | 121,391 | 122,327 | (68,287 | ) | 54,040 | |||||||||||
OCI before reclassifications | 50 | (102 | ) | (54,455 | ) | (54,507 | ) | 38,775 | (15,732 | ) | ||||||||||
Amounts reclassified from AOCI | 9 | (1,025 | ) | (15,301 | ) | (16,317 | ) | 2,860 | (13,457 | ) | ||||||||||
Net current period OCI | 59 | (1,127 | ) | (69,756 | ) | (70,824 | ) | 41,635 | (29,189 | ) | ||||||||||
Balance, December 31, 2013 | (1,599 | ) | 1,467 | 51,635 | 51,503 | (26,652 | ) | 24,851 | ||||||||||||
OCI before reclassifications | — | — | 47,411 | 47,411 | (35,189 | ) | 12,222 | |||||||||||||
Amounts reclassified from AOCI | 1,085 | (844 | ) | (18,762 | ) | (18,521 | ) | 1,236 | (17,285 | ) | ||||||||||
Net current period OCI | 1,085 | (844 | ) | 28,649 | 28,890 | (33,953 | ) | (5,063 | ) | |||||||||||
Balance, December 31, 2014 | $ | (514 | ) | 623 | 80,284 | 80,393 | (60,605 | ) | 19,788 | |||||||||||
The reclassifications out of AOCI are as follows: | ||||||||||||||||||||
Affected Line Item in the Consolidated Statement of Income | ||||||||||||||||||||
($ in thousands) | Year ended December 31, 2014 | Year ended | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
OTTI related | ||||||||||||||||||||
Amortization of non-credit OTTI losses on HTM securities | $ | — | 14 | Net investment income earned | ||||||||||||||||
Non-credit OTTI on disposed securities | 1,669 | — | Net realized gains | |||||||||||||||||
1,669 | 14 | Income from continuing operations, before federal income tax | ||||||||||||||||||
(584 | ) | (5 | ) | Total federal income tax expense (benefit) | ||||||||||||||||
1,085 | 9 | Net income | ||||||||||||||||||
HTM related | ||||||||||||||||||||
Unrealized gains and losses on HTM disposals | 157 | 390 | Net realized investment gains | |||||||||||||||||
Amortization of net unrealized gains on HTM securities | (1,456 | ) | (1,967 | ) | Net investment income earned | |||||||||||||||
(1,299 | ) | (1,577 | ) | Income from continuing operations, before federal income tax | ||||||||||||||||
455 | 552 | Total federal income tax expense (benefit) | ||||||||||||||||||
(844 | ) | (1,025 | ) | Net income | ||||||||||||||||
Realized gains and losses on AFS | ||||||||||||||||||||
Realized gains and losses on AFS disposals | (28,864 | ) | (23,540 | ) | Net realized investment gains | |||||||||||||||
(28,864 | ) | (23,540 | ) | Income from continuing operations, before federal income tax | ||||||||||||||||
10,102 | 8,239 | Total federal income tax expense (benefit) | ||||||||||||||||||
(18,762 | ) | (15,301 | ) | Net income | ||||||||||||||||
Defined benefit pension and post-retirement life plans | ||||||||||||||||||||
Net actuarial loss | 331 | 909 | Losses and loss expenses incurred | |||||||||||||||||
1,571 | 3,465 | Policy acquisition costs | ||||||||||||||||||
1,902 | 4,374 | Income from continuing operations, before federal income tax | ||||||||||||||||||
Prior service cost | — | 7 | Losses and loss expenses incurred | |||||||||||||||||
— | 3 | Policy acquisition costs | ||||||||||||||||||
— | 10 | Income from continuing operations, before federal income tax | ||||||||||||||||||
Curtailment expense | — | 16 | Policy acquisition costs | |||||||||||||||||
— | 16 | Income from continuing operations, before federal income tax | ||||||||||||||||||
Total defined benefit pension and post-retirement life | 1,902 | 4,400 | Income from continuing operations, before federal income tax | |||||||||||||||||
(666 | ) | (1,540 | ) | Total federal income tax expense (benefit) | ||||||||||||||||
1,236 | 2,860 | Net income | ||||||||||||||||||
Total reclassifications for the period | $ | (17,285 | ) | (13,457 | ) | Net income |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||
The following table presents the carrying amounts and estimated fair values of our financial instruments as of December 31, 2014 and 2013: | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||
($ in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||
Financial Assets | |||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
HTM | $ | 318,137 | 333,961 | 392,879 | 416,981 | ||||||||||||||||||
AFS | 4,066,122 | 4,066,122 | 3,715,536 | 3,715,536 | |||||||||||||||||||
Equity securities, AFS | 191,400 | 191,400 | 192,771 | 192,771 | |||||||||||||||||||
Short-term investments | 131,972 | 131,972 | 174,251 | 174,251 | |||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||
Notes payable: | |||||||||||||||||||||||
2.90% borrowings from FHLBI | — | — | 13,000 | 13,319 | |||||||||||||||||||
1.25% borrowings from FHLBI | 45,000 | 45,244 | 45,000 | 45,259 | |||||||||||||||||||
7.25% Senior Notes | 49,896 | 59,181 | 49,916 | 50,887 | |||||||||||||||||||
6.70% Senior Notes | 99,401 | 114,845 | 99,498 | 98,247 | |||||||||||||||||||
5.875% Senior Notes | 185,000 | 185,000 | 185,000 | 146,298 | |||||||||||||||||||
Total notes payable | $ | 379,297 | 404,270 | 392,414 | 354,010 | ||||||||||||||||||
For discussion regarding the fair value techniques of our financial instruments, refer to Note 2. "Summary of Significant Accounting Policies" in this Form 10-K. | |||||||||||||||||||||||
The following tables provide quantitative disclosures of our financial assets that were measured at fair value at December 31, 2014 and 2013: | |||||||||||||||||||||||
December 31, 2014 | Fair Value Measurements Using | ||||||||||||||||||||||
($ in thousands) | Assets Measured at Fair Value 12/31/14 | Quoted Prices in Active Markets for Identical Assets/ Liabilities | Significant Other Observable Inputs (Level 2)1 | Significant Unobservable Inputs | |||||||||||||||||||
(Level 1)1 | (Level 3) | ||||||||||||||||||||||
Description | |||||||||||||||||||||||
Measured on a recurring basis: | |||||||||||||||||||||||
AFS: | |||||||||||||||||||||||
U.S. government and government agencies | $ | 124,130 | 53,199 | 70,931 | — | ||||||||||||||||||
Foreign government | 27,831 | — | 27,831 | — | |||||||||||||||||||
Obligations of states and political subdivisions | 1,246,264 | — | 1,246,264 | — | |||||||||||||||||||
Corporate securities | 1,799,806 | — | 1,799,806 | — | |||||||||||||||||||
ABS | 177,224 | — | 177,224 | — | |||||||||||||||||||
CMBS | 179,593 | — | 179,593 | — | |||||||||||||||||||
RMBS | 511,274 | — | 511,274 | — | |||||||||||||||||||
Total fixed income securities | 4,066,122 | 53,199 | 4,012,923 | — | |||||||||||||||||||
Equity securities | 191,400 | 188,500 | — | 2,900 | |||||||||||||||||||
Total AFS securities | 4,257,522 | 241,699 | 4,012,923 | 2,900 | |||||||||||||||||||
Short-term investments | 131,972 | 131,972 | — | — | |||||||||||||||||||
Total assets | $ | 4,389,494 | 373,671 | 4,012,923 | 2,900 | ||||||||||||||||||
December 31, 2013 | Fair Value Measurements Using | ||||||||||||||||||||||
($ in thousands) | Assets Measured at Fair Value 12/31/13 | Quoted Prices in Active Markets for Identical Assets/ Liabilities | Significant Other Observable Inputs (Level 2)1 | Significant Unobservable Inputs | |||||||||||||||||||
(Level 1)1 | (Level 3) | ||||||||||||||||||||||
Description | |||||||||||||||||||||||
Measured on a recurring basis: | |||||||||||||||||||||||
AFS: | |||||||||||||||||||||||
U.S. government and government agencies | $ | 173,375 | 52,153 | 121,222 | — | ||||||||||||||||||
Foreign government | 30,615 | — | 30,615 | — | |||||||||||||||||||
Obligations of states and political subdivisions | 951,624 | — | 951,624 | — | |||||||||||||||||||
Corporate securities | 1,734,883 | — | 1,734,883 | — | |||||||||||||||||||
ABS | 140,896 | — | 140,896 | — | |||||||||||||||||||
CMBS | 171,284 | — | 171,284 | — | |||||||||||||||||||
RMBS | 512,859 | — | 512,859 | — | |||||||||||||||||||
Total fixed income securities | 3,715,536 | 52,153 | 3,663,383 | — | |||||||||||||||||||
Equity securities | 192,771 | 189,871 | — | 2,900 | |||||||||||||||||||
Total AFS securities | 3,908,307 | 242,024 | 3,663,383 | 2,900 | |||||||||||||||||||
Short-term investments | 174,251 | 174,251 | — | — | |||||||||||||||||||
Total assets | $ | 4,082,558 | 416,275 | 3,663,383 | 2,900 | ||||||||||||||||||
1 There were no transfers of securities between Level 1 and Level 2. | |||||||||||||||||||||||
There were no changes in the fair value of securities measured using Level 3 prices during 2014. The following | |||||||||||||||||||||||
table provides a summary of these changes during 2013: | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||
Government | Corporate | ABS | CMBS | Equity | Receivable for | Total | |||||||||||||||||
Proceeds | |||||||||||||||||||||||
($ in thousands) | Related to Sale | ||||||||||||||||||||||
of Selective HR Solutions ("Selective HR") | |||||||||||||||||||||||
Fair value, December 31, 2012 | $ | 19,789 | 2,946 | 6,068 | 7,162 | 3,607 | 2,705 | 42,277 | |||||||||||||||
Total net (losses) gains for the period included in: | |||||||||||||||||||||||
OCI1 | (537 | ) | (7 | ) | (74 | ) | 772 | 3,935 | — | 4,089 | |||||||||||||
Net income2,3 | (76 | ) | — | — | 361 | — | (1,480 | ) | (1,195 | ) | |||||||||||||
Purchases | — | — | — | — | — | — | — | ||||||||||||||||
Sales | — | — | — | — | — | — | — | ||||||||||||||||
Issuances | — | — | — | — | — | — | — | ||||||||||||||||
Settlements | (1,847 | ) | (168 | ) | — | (2,420 | ) | — | (225 | ) | (4,660 | ) | |||||||||||
Transfers into Level 3 | — | — | — | — | — | — | — | ||||||||||||||||
Transfers out of Level 3 | (17,329 | ) | (2,771 | ) | (5,994 | ) | (5,875 | ) | (4,642 | ) | (1,000 | ) | (37,611 | ) | |||||||||
Fair value, December 31, 2013 | $ | — | — | — | — | 2,900 | — | 2,900 | |||||||||||||||
1 Amounts are reported in “Unrealized holding gains (losses) arising during period” on the Consolidated Statements of Comprehensive Income. | |||||||||||||||||||||||
2 Amounts are reported in “Net realized gains” for realized gains and losses and “Net investment income earned” for amortization of securities on the Consolidated Statements of Income. | |||||||||||||||||||||||
3For the receivable related to the sale of Selective HR, amounts in “Loss on disposal of discontinued operations, net of tax” relate to an impairment charge and | |||||||||||||||||||||||
amounts in “Other income” relate to interest accretion on the Consolidated Statements of Income. | |||||||||||||||||||||||
As discussed in Note 2. "Summary of Significant Accounting Policies," in this Form 10-K, the fair value of our Level 3 fixed income securities are typically obtained through non-binding broker quotes, which we review for reasonableness. At December 31, 2014 and December 31, 2013, there were no fixed income securities that were measured using Level 3 inputs. However, during 2013, securities with a fair value of $32.0 million were transferred out of Level 3 due to the availability of Level 2 pricing at December 31, 2013 that was not available previously. | |||||||||||||||||||||||
Equity securities with a fair value of $2.9 million were measured using Level 3 inputs at December 31, 2014 and at | |||||||||||||||||||||||
December 31, 2013. An equity security with a fair value of $4.6 million was transferred out of Level 3 during 2013 due to the availability of Level 2 pricing at the date of transfer. This security was subsequently sold for an amount that approximated the value at the transfer date. In addition, the receivable related to the sale of Selective HR was settled during 2013 and as a result was transferred out of Level 3. | |||||||||||||||||||||||
The following tables provide quantitative information regarding our financial assets and liabilities that were disclosed at fair value at December 31, 2014 and 2013: | |||||||||||||||||||||||
31-Dec-14 | Fair Value Measurements Using | ||||||||||||||||||||||
($ in thousands) | Assets/Liabilities Disclosed at | Quoted Prices in Active Markets for Identical Assets/Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||
Fair Value 12/31/2014 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||
HTM: | |||||||||||||||||||||||
Foreign government | $ | 5,394 | — | 5,394 | — | ||||||||||||||||||
Obligations of states and political subdivisions | 299,132 | — | 299,132 | — | |||||||||||||||||||
Corporate securities | 21,422 | — | 21,422 | — | |||||||||||||||||||
ABS | 2,823 | — | 2,823 | — | |||||||||||||||||||
CMBS | 5,190 | — | 5,190 | — | |||||||||||||||||||
Total HTM fixed income securities | $ | 333,961 | — | 333,961 | — | ||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||
Notes payable: | |||||||||||||||||||||||
1.25% borrowings from FHLBI | 45,244 | — | 45,244 | — | |||||||||||||||||||
7.25% Senior Notes | 59,181 | — | 59,181 | — | |||||||||||||||||||
6.70% Senior Notes | 114,845 | — | 114,845 | — | |||||||||||||||||||
5.875% Senior Notes | 185,000 | 185,000 | — | — | |||||||||||||||||||
Total notes payable | $ | 404,270 | 185,000 | 219,270 | $ | — | |||||||||||||||||
31-Dec-13 | Fair Value Measurements Using | ||||||||||||||||||||||
($ in thousands) | Assets/Liabilities Disclosed at | Quoted Prices in Active Markets for Identical Assets/Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||
Fair Value 12/31/2013 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||
HTM: | |||||||||||||||||||||||
Foreign government | $ | 5,591 | — | 5,591 | — | ||||||||||||||||||
Obligations of states and political subdivisions | 369,756 | — | 369,756 | — | |||||||||||||||||||
Corporate securities | 30,274 | — | 30,274 | — | |||||||||||||||||||
ABS | 3,415 | — | 3,415 | — | |||||||||||||||||||
CMBS | 7,945 | — | 7,945 | — | |||||||||||||||||||
Total HTM fixed income securities | $ | 416,981 | — | 416,981 | — | ||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||
Notes payable: | |||||||||||||||||||||||
2.90% borrowings from FHLBI | 13,319 | — | 13,319 | — | |||||||||||||||||||
1.25% borrowings from FHLBI | 45,259 | — | 45,259 | — | |||||||||||||||||||
7.25% Senior Notes | 50,887 | — | 50,887 | — | |||||||||||||||||||
6.70% Senior Notes | 98,247 | — | 98,247 | — | |||||||||||||||||||
5.875% Senior Notes | 146,298 | 146,298 | — | — | |||||||||||||||||||
Total notes payable | $ | 354,010 | 146,298 | 207,712 | — | ||||||||||||||||||
Reinsurance
Reinsurance | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Reinsurance Disclosures [Abstract] | |||||||||||||||
Reinsurance | Reinsurance | ||||||||||||||
Our Financial Statements reflect the effects of assumed and ceded reinsurance transactions. Assumed reinsurance refers to the acceptance of certain insurance risks that other insurance entities have underwritten. Ceded reinsurance involves transferring certain insurance risks (along with the related written and earned premiums) that we have underwritten to other insurance companies that agree to share these risks. The primary purpose of ceded reinsurance is to protect the Insurance Subsidiaries from potential losses in excess of the amount that we are prepared to accept. Our major treaties covering property, property catastrophe, and casualty business are excess of loss contracts. In addition, we have an intercompany quota share pooling arrangement and other minor quota share treaties. | |||||||||||||||
As a Standard Commercial Lines and E&S Lines writer, we are required to participate in Terrorism Risk Insurance Program Reauthorization Act ("TRIPRA"), which was extended to December 31, 2020. TRIPRA requires private insurers and the United States government to share the risk of loss on future acts of terrorism certified by the U.S. Secretary of the Treasury. Under TRIPRA, each participating insurer is responsible for paying a deductible of specified losses before federal assistance is available. This deductible is based on a percentage of the prior year’s applicable Standard Commercial Lines and E&S Lines premiums. In 2015, our deductible is approximately $254 million. For losses above the deductible, the federal government will pay 85% of losses to an industry limit of $100 billion, and the insurer retains 15%. The federal share of losses will be reduced by 1% each year to 80% by 2020. | |||||||||||||||
The Insurance Subsidiaries remain liable to policyholders to the extent that any reinsurer becomes unable to meet their contractual obligations. We evaluate and monitor the financial condition of our reinsurers under voluntary reinsurance arrangements to minimize our exposure to significant losses from reinsurer insolvencies. On an ongoing basis, we review amounts outstanding, length of collection period, changes in reinsurer credit ratings, and other relevant factors to determine collectability of reinsurance recoverables. The allowance for uncollectible reinsurance recoverables was $6.9 million at December 31, 2014 and $5.1 million at December 31, 2013. | |||||||||||||||
The following table represents our total reinsurance balances segregated by reinsurer to depict our concentration of risk throughout our reinsurance portfolio: | |||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | ||||||||||||||
($ in thousands) | Reinsurance Balances | % of Net Unsecured Reinsurance | Reinsurance Balances | % of Net | |||||||||||
Unsecured Reinsurance | |||||||||||||||
Total reinsurance recoverables | $ | 581,548 | $ | 550,897 | |||||||||||
Total prepaid reinsurance premiums | 146,993 | 143,000 | |||||||||||||
Less: collateral1 | (114,843 | ) | (119,732 | ) | |||||||||||
Net unsecured reinsurance balances | 613,698 | 574,165 | |||||||||||||
Federal and state pools2: | |||||||||||||||
NFIP | 172,547 | 28 | 177,637 | 31 | |||||||||||
NJ Unsatisfied Claim Judgment Fund | 76,342 | 13 | 71,732 | 12 | |||||||||||
Other | 2,557 | — | 3,034 | 1 | |||||||||||
Total federal and state pools | 251,446 | 41 | 252,403 | 44 | |||||||||||
Remaining unsecured reinsurance | 362,252 | 59 | 321,762 | 56 | |||||||||||
Hannover Ruckversicherungs AG (A.M. Best rated “A+”) | 79,864 | 13 | 72,565 | 13 | |||||||||||
Munich Re Group (A.M. Best rated “A+”) | 78,347 | 13 | 69,749 | 12 | |||||||||||
Swiss Re Group (A.M. Best rated “A+”) | 55,026 | 9 | 48,234 | 8 | |||||||||||
AXIS Reinsurance Company (A.M. Best rated “A+”) | 51,014 | 8 | 45,114 | 8 | |||||||||||
Partner Reinsurance Company of the U.S. (A.M. Best rated “A+”) | 25,424 | 4 | 25,730 | 4 | |||||||||||
QBE Reinsurance Corporation (A.M. Best rated "A") | 13,069 | 2 | 15,665 | 3 | |||||||||||
All other reinsurers | 59,508 | 10 | 44,705 | 8 | |||||||||||
Total | $ | 362,252 | 59 | % | $ | 321,762 | 56 | % | |||||||
1 Includes letters of credit, trust funds, and funds withheld. | |||||||||||||||
2 Considered to have minimal risk of default. | |||||||||||||||
Note: Some amounts may not foot due to rounding. | |||||||||||||||
Under our reinsurance arrangements, which are prospective in nature, reinsurance premiums ceded are recorded as prepaid reinsurance and amortized over the remaining contract period in proportion to the reinsurance protection provided, or recorded periodically, as per the terms of the contract, in a direct relationship to the gross premium recording. Reinsurance recoveries are recognized as gross losses are incurred. | |||||||||||||||
The following table contains a listing of direct, assumed, and ceded reinsurance amounts for premiums written, premiums earned, and losses and loss expenses incurred: | |||||||||||||||
($ in thousands) | 2014 | 2013 | 2012 | ||||||||||||
Premiums written: | |||||||||||||||
Direct | $ | 2,228,270 | 2,133,793 | 1,955,667 | |||||||||||
Assumed | 26,306 | 43,650 | 50,938 | ||||||||||||
Ceded | (369,296 | ) | (367,284 | ) | (339,722 | ) | |||||||||
Net | $ | 1,885,280 | 1,810,159 | 1,666,883 | |||||||||||
Premiums earned: | |||||||||||||||
Direct | $ | 2,183,258 | 2,048,530 | 1,873,007 | |||||||||||
Assumed | 34,653 | 44,464 | 65,884 | ||||||||||||
Ceded | (365,302 | ) | (356,922 | ) | (354,772 | ) | |||||||||
Net | $ | 1,852,609 | 1,736,072 | 1,584,119 | |||||||||||
Losses and loss expenses incurred: | |||||||||||||||
Direct | $ | 1,314,864 | 1,370,293 | 2,394,640 | |||||||||||
Assumed | 26,187 | 32,678 | 29,175 | ||||||||||||
Ceded | (183,550 | ) | (281,233 | ) | (1,302,825 | ) | |||||||||
Net | $ | 1,157,501 | 1,121,738 | 1,120,990 | |||||||||||
Direct and ceded losses and loss expenses decreased significantly in 2013, primarily due to the impact of Superstorm Sandy, for which $1.1 billion in flood losses were ceded to the federal government in 2012. | |||||||||||||||
The ceded premiums and losses related to our participation in the NFIP, under which 100% of our flood premiums, losses and loss expenses are ceded to the NFIP, are as follows: | |||||||||||||||
Ceded to NFIP ($ in thousands) | 2014 | 2013 | 2012 | ||||||||||||
Ceded premiums written | $ | (237,718 | ) | (236,309 | ) | (221,094 | ) | ||||||||
Ceded premiums earned | (234,224 | ) | (228,650 | ) | (212,177 | ) | |||||||||
Ceded losses and loss expenses incurred | (57,323 | ) | (183,142 | ) | (1,119,303 | ) |
Reserve_for_Losses_and_Loss_Ex
Reserve for Losses and Loss Expenses | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Insurance Loss Reserves [Abstract] | ||||||||||||||||||||
Reserves for Losses and Loss Expenses | Reserves for Losses and Loss Expenses | |||||||||||||||||||
The table below provides a roll forward of reserves for losses and loss expenses for beginning and ending reserve balances: | ||||||||||||||||||||
($ in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||
Gross reserves for losses and loss expenses, at beginning of year | $ | 3,349,770 | 4,068,941 | 3,144,924 | ||||||||||||||||
Less: reinsurance recoverable on unpaid losses and loss expenses, at beginning of year | 540,839 | 1,409,755 | 549,490 | |||||||||||||||||
Net reserves for losses and loss expenses, at beginning of year | 2,808,931 | 2,659,186 | 2,595,434 | |||||||||||||||||
Incurred losses and loss expenses for claims occurring in the: | ||||||||||||||||||||
Current year | 1,216,770 | 1,147,263 | 1,146,591 | |||||||||||||||||
Prior years | (59,269 | ) | (25,525 | ) | (25,601 | ) | ||||||||||||||
Total incurred losses and loss expenses | 1,157,501 | 1,121,738 | 1,120,990 | |||||||||||||||||
Paid losses and loss expenses for claims occurring in the: | ||||||||||||||||||||
Current year | 468,478 | 399,559 | 424,496 | |||||||||||||||||
Prior years | 592,062 | 572,434 | 632,742 | |||||||||||||||||
Total paid losses and loss expenses | 1,060,540 | 971,993 | 1,057,238 | |||||||||||||||||
Net reserves for losses and loss expenses, at end of year | 2,905,892 | 2,808,931 | 2,659,186 | |||||||||||||||||
Add: Reinsurance recoverable on unpaid losses and loss expenses, at end of year | 571,978 | 540,839 | 1,409,755 | |||||||||||||||||
Gross reserves for losses and loss expenses at end of year | $ | 3,477,870 | 3,349,770 | 4,068,941 | ||||||||||||||||
The net losses and loss expense reserves increased by $97.0 million in 2014, $149.7 million in 2013, and $63.8 million in 2012. The losses and loss expense reserves are net of anticipated recoveries for salvage and subrogation claims, which amounted to $65.1 million for 2014, $61.0 million for 2013, and $62.2 million for 2012. The changes in the net losses and loss expense reserves were the result of growth in exposures, particularly associated with our E&S Lines of business, anticipated loss trends, changes in reinsurance retentions, and normal reserve changes inherent in the uncertainty in establishing reserves for losses and loss expenses. As additional information is collected in the loss settlement process, reserves are adjusted accordingly. These adjustments are reflected in the Consolidated Statements of Income in the period in which such adjustments are recognized. These changes could have a material impact on the results of operations of future periods when the adjustments are made. | ||||||||||||||||||||
In 2014, we experienced overall favorable loss development of approximately $59.3 million, compared to $25.5 million in both 2013 and 2012. The following table summarizes the prior year development by line of business: | ||||||||||||||||||||
(Favorable)/Unfavorable Prior Year Development | ||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
General Liability | $ | (43.9 | ) | (20.0 | ) | 2.5 | ||||||||||||||
Commercial Automobile | (4.1 | ) | (4.5 | ) | (8.5 | ) | ||||||||||||||
Workers Compensation | — | 23.5 | 2.5 | |||||||||||||||||
Businessowners' Policies | 1.9 | (9.5 | ) | (9.0 | ) | |||||||||||||||
Commercial Property | (2.1 | ) | (7.5 | ) | (3.5 | ) | ||||||||||||||
Homeowners | (4.0 | ) | (2.5 | ) | (9.0 | ) | ||||||||||||||
Personal Automobile | (10.8 | ) | (3.0 | ) | 0.5 | |||||||||||||||
E&S | 3.7 | (2.0 | ) | — | ||||||||||||||||
Other | — | — | (1.0 | ) | ||||||||||||||||
Total | $ | (59.3 | ) | (25.5 | ) | (25.5 | ) | |||||||||||||
The 2014 prior year favorable development of $59.3 million includes $48.2 million of favorable casualty development and $11.1 million of favorable property development. The property development was primarily related to a prior year reinsurance recoverable. The favorable casualty development was largely driven by the general liability and personal automobile lines of business. These lines have both experienced increasingly favorable development in recent years. Conversely, businessowners’ policies and our E&S Lines experienced unfavorable emergence in 2014, which was a reversal from 2013. Our workers compensation line had no development in 2014, after experiencing unfavorable development of $23.5 million last year. | ||||||||||||||||||||
By accident year, the majority of the favorable development was attributable to accident years 2010 through 2012, although earlier accident years also developed favorably. General liability, commercial automobile, and personal automobile all contributed to this development, partially offset by businessowners’ liability. The general liability line of business was the primary driver of this favorable development, which was partially driven by lower severities in the 2010 through 2012 accident years, within both the premises and operations and products liability coverages. In addition, accident years 2011 and 2012 continue to show lower than expected claim counts. The overall favorable development for accident years 2012 and prior was partially offset by unfavorable development in accident year 2013, which was largely attributable to commercial automobile liability, and partially E&S casualty. | ||||||||||||||||||||
The 2013 prior year favorable development of $25.5 million includes $14.5 million of favorable casualty development and $11.0 million of favorable property development. The property development was primarily related to favorable non-catastrophe loss activity, mostly in the 2012 accident year. The casualty lines were driven largely by favorable development in accident years 2006 through 2010, with lower than expected severities in general liability and commercial automobile. Partially offsetting this favorable development was: (i) unfavorable development in our workers compensation line driven by assisted living claims; and (ii) unfavorable development in accident year 2012 in our commercial automobile line of business driven by higher than expected severities. | ||||||||||||||||||||
The 2012 prior year favorable development of $25.5 million includes $18.0 million of casualty development and $7.5 million of property development. The property development was primarily related to the favorable non-catastrophe loss activity that occurred in the first quarter of 2012 mostly in the 2011 accident year. The casualty lines were driven by favorable development in the 2007 through 2009 accident years, partially offset by unfavorable development in accident year 2011. The favorable development was driven by lower than expected severities in all of the major casualty lines, which represents a consistent trend in recent years. The unfavorable development in accident year 2011 was driven by: (i) higher than expected severities in the workers compensation and general liability lines; and (ii) higher than expected frequencies in the commercial auto line. This was partially offset by continued favorable development in the homeowners' liability line, due to lower expected severity for this year. | ||||||||||||||||||||
Reserves established for liability insurance include exposure to asbestos and environmental claims. These claims have arisen primarily from insured exposures in municipal government, small non-manufacturing commercial risk, and homeowners policies. The emergence of these claims is slow and highly unpredictable. There are significant uncertainties in estimating our exposure to asbestos and environmental claims (for both case and IBNR reserves) resulting from lack of relevant historical data, the delayed and inconsistent reporting patterns associated with these claims, and uncertainty as to the number and identity of claimants and complex legal and coverage issues. Legal issues that arise in asbestos and environmental cases include federal or state venue, choice of law, causation, admissibility of evidence, allocation of damages and contribution among joint defendants, successor and predecessor liability, and whether direct action against insurers can be maintained. Coverage issues that arise in asbestos and environmental cases include the interpretation and application of policy exclusions, the determination and calculation of policy limits, the determination of the ultimate amount of a loss, the extent to which a loss is covered by a policy, if at all, the obligation of an insurer to defend a claim, and the extent to which a party can prove the existence of coverage. Courts have reached different and sometimes inconsistent conclusions on these legal and coverage issues. We do not discount to present value that portion of our losses and loss expense reserves expected to be paid in future periods. | ||||||||||||||||||||
The following table details our losses and loss expense reserves for various asbestos and environmental claims: | ||||||||||||||||||||
2014 | ||||||||||||||||||||
($ in millions) | Gross | Net | ||||||||||||||||||
Asbestos | $ | 8.8 | 7.3 | |||||||||||||||||
Landfill sites | 11.5 | 6.6 | ||||||||||||||||||
Leaking underground storage tanks | 10.4 | 9.1 | ||||||||||||||||||
Total | $ | 30.7 | 23 | |||||||||||||||||
Estimating IBNR reserves for asbestos and environmental claims is difficult because of the delayed and inconsistent reporting patterns associated with these claims. In addition, there are significant uncertainties associated with estimating critical assumptions, such as average clean-up costs, third-party costs, potentially responsible party shares, allocation of damages, litigation and coverage costs, and potential state and federal legislative changes. Normal historically based actuarial approaches cannot be applied to asbestos and environmental claims because past loss history is not indicative of future potential asbestos and environmental losses. In addition, while certain alternative models can be applied, such models can produce significantly different results with small changes in assumptions. | ||||||||||||||||||||
The following table provides a roll forward of gross and net asbestos and environmental incurred losses and loss expenses and related reserves thereon: | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
($ in thousands) | Gross | Net | Gross | Net | Gross | Net | ||||||||||||||
Asbestos | ||||||||||||||||||||
Reserves for losses and loss expenses at beginning of year | $ | 8,897 | 7,518 | 9,170 | 7,791 | 8,412 | 6,586 | |||||||||||||
Incurred losses and loss expenses | 60 | — | — | — | 1,696 | 2,000 | ||||||||||||||
Less: losses and loss expenses paid | (206 | ) | (204 | ) | (273 | ) | (273 | ) | (938 | ) | (795 | ) | ||||||||
Reserves for losses and loss expenses at the end of year | $ | 8,751 | 7,314 | 8,897 | 7,518 | 9,170 | 7,791 | |||||||||||||
Environmental | ||||||||||||||||||||
Reserves for losses and loss expenses at beginning of year | $ | 23,867 | 17,649 | 26,405 | 19,978 | 27,600 | 21,330 | |||||||||||||
Incurred losses and loss expenses | 107 | — | 347 | 68 | 1,363 | 1,000 | ||||||||||||||
Less: losses and loss expenses paid | (2,072 | ) | (1,969 | ) | (2,885 | ) | (2,397 | ) | (2,558 | ) | (2,352 | ) | ||||||||
Reserves for losses and loss expenses at the end of year | $ | 21,902 | 15,680 | 23,867 | 17,649 | 26,405 | 19,978 | |||||||||||||
Total Asbestos and Environmental Claims | ||||||||||||||||||||
Reserves for losses and loss expenses at beginning of year | $ | 32,764 | 25,167 | 35,575 | 27,769 | 36,012 | 27,916 | |||||||||||||
Incurred losses and loss expenses | 167 | — | 347 | 68 | 3,059 | 3,000 | ||||||||||||||
Less: losses and loss expenses paid | (2,278 | ) | (2,173 | ) | (3,158 | ) | (2,670 | ) | (3,496 | ) | (3,147 | ) | ||||||||
Reserves for losses and loss expenses at the end of year | $ | 30,653 | 22,994 | 32,764 | 25,167 | 35,575 | 27,769 | |||||||||||||
Indebtedness
Indebtedness | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Debt Disclosure [Abstract] | |||||
Indebtedness | Indebtedness | ||||
(a) Notes Payable | |||||
(1) In the first quarter of 2013, we issued $185 million of 5.875% Senior Notes due 2043. These notes pay interest on February 15, May 15, August 15, and November 15 of each year, beginning on May 15, 2013, and at maturity. The notes are callable by us on or after February 8, 2018, at a price equal to 100% of their principal outstanding amount, plus accrued and unpaid interest to, but excluding, the date of redemption. A portion of the proceeds from this debt issuance was used to fully redeem the $100 million aggregate principal amount of our 7.5% Junior Subordinated Notes due 2066, which had an associated $3.3 million pre-tax write-off for the remaining capitalized debt issuance costs on these notes. Of the remaining net proceeds, $57.1 million was used to make capital contributions to the Insurance Subsidiaries, while the balance was used for general corporate purposes. There are no financial debt covenants to which we are required to comply in regards to these Senior Notes. | |||||
(2) In the first quarter of 2009, Selective Insurance Company of the Southeast and Selective Insurance Company of South Carolina (“Indiana Subsidiaries”) joined and invested in the FHLBI, which provides them with access to additional liquidity. The Indiana Subsidiaries’ aggregate investment was $2.9 million at December 31, 2014 and December 31, 2013, respectively. Our investment provides us the ability to borrow approximately 20 times the total amount of the FHLBI common stock purchased with additional collateral, at comparatively low borrowing rates. All borrowings from FHLBI are required to be secured by certain investments. | |||||
The following is a summary of the Indiana Subsidiaries’ borrowings from the FHLBI: | |||||
• | In 2011, the Indiana Subsidiaries borrowed $45 million in the aggregate from the FHLBI. The unpaid principal amount accrues interest of 1.25%, which is paid on the 15th of every month. The principal amount is due on December 16, 2016. These funds were loaned to the Parent for use in the acquisition of Mesa Underwriters Specialty Insurance Company ("MUSIC") on December 31, 2011. | ||||
• | In 2009, the Indiana Subsidiaries borrowed $13 million in the aggregate from the FHLBI. The unpaid principal amount accrues interest of 2.9%, which was paid on the 15th of every month. These funds were loaned to the Parent to be used for general corporate purposes. The principal amount was paid in full on December 15, 2014. | ||||
• | In January 2015, the Indiana Subsidiaries borrowed $15 million in the aggregate from the FHLBI for general corporate purposes. The unpaid principal amount accrues interest of 0.63%, which is paid on the 15th of every month. The principal amount is due on July 22, 2016. | ||||
(3) In the fourth quarter of 2005, we issued $100 million of 6.70% Senior Notes due 2035. These notes were issued at a discount of $0.7 million resulting in an effective yield of 6.754% and pay interest on May 1 and November 1 each year commencing on May 1, 2006. Net proceeds of approximately $50 million were used to fund an irrevocable trust to provide for certain payment obligations in respect of our outstanding debt. The remainder of the proceeds was used for general corporate purposes. The agreements covering these notes contain a standard default cross-acceleration provision that provides the 6.70% Senior Notes will enter a state of default upon the failure to pay principal when due or upon any event or condition that results in an acceleration of principal of any other debt instrument in excess of $10 million that we have outstanding concurrently with the 6.70% Senior Notes. There are no financial debt covenants to which we are required to comply in regards to these notes. | |||||
(4) In the fourth quarter of 2004, we issued $50 million of 7.25% Senior Notes due 2034. These notes were issued at a discount of $0.1 million, resulting in an effective yield of 7.27% and pay interest on May 15 and November 15 each year. We contributed $25 million of the bond proceeds to the Insurance Subsidiaries as capital. The remainder of the proceeds was used for general corporate purposes. The agreements covering these notes contain a standard default cross-acceleration provision that provides the 7.25% Senior Notes will enter a state of default upon the failure to pay principal when due or upon any event or condition that results in an acceleration of principal of any other debt instrument in excess of $10 million that we have outstanding concurrently with the 7.25% Senior Notes. There are no financial debt covenants to which we are required to comply in regards to these notes. | |||||
(b) Short-Term Debt | |||||
Our Line of Credit was renewed effective September 26, 2013, with Wells Fargo Bank, National Association, as administrative agent, and Branch Banking and Trust Company, with a borrowing capacity of $30 million, which can be increased to $50 million with the approval of both lending partners. The Line of Credit provides the Parent with an additional source of short-term liquidity. The interest rate on our Line of Credit varies and is based on, among other factors, the Parent’s debt ratings. The Line of Credit expires on September 26, 2017. There have been no balances outstanding under this Line of Credit at December 31, 2014 or at any time during 2014. | |||||
The Line of Credit agreement contains representations, warranties, and covenants that are customary for credit facilities of this type, including, without limitation, financial covenants under which we are obligated to maintain a minimum consolidated net worth, minimum combined statutory surplus, and maximum ratio of consolidated debt to total capitalization, and covenants limiting our ability to: (i) merge or liquidate; (ii) incur debt or liens; (iii) dispose of assets; (iv) make investments and acquisitions; and (v) engage in transactions with affiliates. The Line of Credit permits collateralized borrowings by the Indiana Subsidiaries from the FHLBI so long as the aggregate amount borrowed does not exceed 10% of the respective Indiana Subsidiary’s admitted assets from the preceding calendar year. | |||||
The table below outlines information regarding certain of the covenants in the Line of Credit: | |||||
Required as of | Actual as of | ||||
31-Dec-14 | 31-Dec-14 | ||||
Consolidated net worth | $881 million | $1.3 billion | |||
Statutory surplus | Not less than $750 million | $1.3 billion | |||
Debt-to-capitalization ratio1 | Not to exceed 35% | 23.20% | |||
A.M. Best financial strength rating | Minimum of A- | A | |||
1 Calculated in accordance with Line of Credit agreement. | |||||
In addition to the above requirements, the Line of Credit agreement contains a cross-default provision that provides that the Line of Credit will be in default if we fail to comply with any condition, covenant, or agreement (including payment of principal and interest when due on any debt with an aggregate principal amount of at least $20 million), which causes or permits the acceleration of principal. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Segment Reporting [Abstract] | |||||||||||
Segment Information | Segment Information | ||||||||||
We classify our business into four reportable segments: | |||||||||||
• | Standard Commercial Lines - comprised of insurance products and services provided in the standard marketplace to our commercial customers, who are typically businesses, non-profit organizations, and local government agencies. | ||||||||||
• | Standard Personal Lines - comprised of insurance products and services, including flood insurance coverage, provided primarily to individuals acquiring coverage in the standard marketplace. | ||||||||||
• | E&S Lines - comprised of insurance products and services provided to customers who have not obtained coverage in the standard marketplace. | ||||||||||
• | Investments - invests the premiums collected by our Standard Commercial Lines, Standard Personal Lines, and E&S Lines, as well as amounts generated through our capital management strategies, which may include the issuance of debt and equity securities. | ||||||||||
We revised our reporting segments to the above in 2014 because: | |||||||||||
• | The revised segments reflect the way we currently manage our business and allocate resources and therefore, our previously-reported segment of "Standard Insurance Operations" is now "Standard Commercial Lines" and "Standard Personal Lines." Historically, we focused our service model predominantly on our distribution partners. We now focus our customer service model on our policyholders, the servicing of which is shared by us and our distribution partners. This change in focus not only heightens awareness of our brand with our distribution partners, but it increases our brand recognition with our policyholders. | ||||||||||
• | We implemented changes related to our field model as we realigned the responsibilities of certain management positions and their related field employees. This realignment included redeploying certain field employees to focus solely on Standard Personal Lines marketing, instead of sharing responsibilities between both Standard Personal Lines and Standard Commercial Lines business. Our Agency Management Specialists continue to be a central focus of our field model, with responsibility for managing the growth and profitability of their territories and underwriting new Standard Commercial Lines accounts. | ||||||||||
• | We are in the process of implementing organizational changes that realign executive leadership roles over Standard Personal Lines and Standard Commercial Lines. | ||||||||||
We remain an account underwriter within Standard Commercial Lines and Standard Personal Lines, as evidenced by the fact that we do not actively market certain mono-line business, such as workers compensation and homeowners coverages. | |||||||||||
Our E&S Lines remain a separate segment as their customers and distribution channel have different characteristics than that of our Standard Commercial Lines and Standard Personal Lines. In addition, our Investment segment continues to be managed separately and distinctly from our insurance segments, therefore it continues to meet the definition of a segment for us. | |||||||||||
All prior year information contained in this Form 10-K has been restated to reflect our revised segments. | |||||||||||
The disaggregated results of our four segments are used by senior management to manage our operations. These segments are evaluated as follows: | |||||||||||
• | Standard Commercial Lines, Standard Personal Lines, and our E&S Lines are evaluated based on statutory underwriting results (net premiums earned, incurred losses and loss expenses, policyholders dividends, policy acquisition costs, and other underwriting expenses), and statutory combined ratios; and | ||||||||||
• | Our Investments segment is evaluated based on after-tax net investment income and net realized gains and losses. | ||||||||||
Our combined insurance segments are subject to certain geographic concentrations, particularly in the Northeast and Mid-Atlantic regions of the country. In 2014, approximately 23% of net premiums written were related to insurance policies written in New Jersey. | |||||||||||
The goodwill balance of $7.8 million at both December 31, 2014 and 2013 relates to our Standard Commercial Lines reporting unit. | |||||||||||
In computing the results of each segment, we do not make adjustments for interest expense or net general corporate expenses. While we do not fully allocate taxes to all segments, we do allocate taxes to our investments segment as we manage that segment on after-tax results. We do not maintain separate investment portfolios for the segments and therefore, do not allocate assets to the segments. | |||||||||||
The following summaries present revenues from continuing operations (net investment income and net realized gains on investments in the case of the Investments segment) and pre-tax income from continuing operations for the individual segments: | |||||||||||
Revenue by Segment | |||||||||||
Years ended December 31, | |||||||||||
($ in thousands) | 2014 | 2013 | 2012 | ||||||||
Standard Commercial Lines: | |||||||||||
Net premiums earned: | |||||||||||
Commercial automobile | $ | 333,310 | 310,994 | 288,010 | |||||||
Workers compensation | 274,585 | 267,612 | 262,108 | ||||||||
General liability | 444,938 | 405,322 | 373,381 | ||||||||
Commercial property | 244,792 | 224,412 | 202,340 | ||||||||
Businessowners’ policies | 85,788 | 77,097 | 68,462 | ||||||||
Bonds | 19,288 | 19,000 | 18,891 | ||||||||
Other | 13,011 | 12,182 | 12,143 | ||||||||
Miscellaneous income | 14,747 | 10,253 | 7,003 | ||||||||
Total Standard Commercial Lines revenue | 1,430,459 | 1,326,872 | 1,232,338 | ||||||||
Standard Personal Lines: | |||||||||||
Net premiums earned: | |||||||||||
Personal automobile | 151,317 | 152,005 | 152,142 | ||||||||
Homeowners | 134,273 | 127,991 | 113,850 | ||||||||
Other | 11,157 | 14,336 | 13,563 | ||||||||
Miscellaneous income | 1,834 | 1,948 | 1,824 | ||||||||
Total Standard Personal Lines revenue | 298,581 | 296,280 | 281,379 | ||||||||
E&S Lines: | |||||||||||
Net premiums earned: | |||||||||||
General liability | 96,142 | 88,761 | 59,721 | ||||||||
Commercial property | 38,572 | 32,054 | 17,698 | ||||||||
Commercial automobile | 5,436 | 4,306 | 1,810 | ||||||||
Miscellaneous income | 17 | — | — | ||||||||
Total E&S Lines revenue | 140,167 | 125,121 | 79,229 | ||||||||
Investments: | |||||||||||
Net investment income | 138,708 | 134,643 | 131,877 | ||||||||
Net realized investment gains | 26,599 | 20,732 | 8,988 | ||||||||
Total investment revenues | 165,307 | 155,375 | 140,865 | ||||||||
Total all segments | 2,034,514 | 1,903,648 | 1,733,811 | ||||||||
Other income | 347 | 93 | 291 | ||||||||
Total revenues from continuing operations | $ | 2,034,861 | 1,903,741 | 1,734,102 | |||||||
Income from Continuing Operations before Federal Income Tax | |||||||||||
Years ended December 31, | |||||||||||
($ in thousands) | 2014 | 2013 | 2012 | ||||||||
Standard Commercial Lines: | |||||||||||
Underwriting gain (loss), before federal income tax | $ | 61,221 | 33,856 | (40,935 | ) | ||||||
GAAP combined ratio | 95.7 | % | 97.4 | 103.3 | |||||||
Statutory combined ratio | 95.5 | % | 97.1 | 103 | |||||||
Standard Personal Lines: | |||||||||||
Underwriting gain (loss), before federal income tax | 16,536 | 8,645 | (3,514 | ) | |||||||
GAAP combined ratio | 94.4 | % | 97.1 | % | 101.3 | % | |||||
Statutory combined ratio | 94.5 | % | 96.9 | % | 100.7 | % | |||||
E&S Lines: | |||||||||||
Underwriting gain (loss), before federal income tax | 386 | (3,735 | ) | (19,558 | ) | ||||||
GAAP combined ratio | 99.7 | % | 103 | 124.7 | |||||||
Statutory combined ratio | 99.2 | % | 102.9 | 118.8 | |||||||
Investments: | |||||||||||
Net investment income | 138,708 | 134,643 | 131,877 | ||||||||
Net realized investment gains | 26,599 | 20,732 | 8,988 | ||||||||
Total investment income, before federal income tax | 165,307 | 155,375 | 140,865 | ||||||||
Tax on investment income | 43,811 | 40,489 | 34,758 | ||||||||
Total investment income, after federal income tax | $ | 121,496 | 114,886 | 106,107 | |||||||
Reconciliation of Segment Results to Income from Continuing Operations, before Federal Income Tax | |||||||||||
Years ended December 31, | |||||||||||
($ in thousands) | 2014 | 2013 | 2012 | ||||||||
Underwriting gain (loss), before federal income tax | |||||||||||
Standard Commercial Lines | $ | 61,221 | 33,856 | (40,935 | ) | ||||||
Standard Personal Lines | 16,536 | 8,645 | (3,514 | ) | |||||||
E&S Lines | 386 | (3,735 | ) | (19,558 | ) | ||||||
Investment income, before federal income tax | 165,307 | 155,375 | 140,865 | ||||||||
Total all segments | 243,450 | 194,141 | 76,858 | ||||||||
Interest expense | (22,086 | ) | (22,538 | ) | (18,872 | ) | |||||
General corporate and other expenses | (24,233 | ) | (27,801 | ) | (20,351 | ) | |||||
Income from continuing operations, before federal income tax | $ | 197,131 | 143,802 | 37,635 | |||||||
Discontinued_Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations |
In the fourth quarter of 2009, we sold 100% of our interest in Selective HR for proceeds to be received over a 10-year period. These proceeds were based on the ability of the purchaser to retain and generate new worksite lives though the independent agents who distribute the products. In 2013, we settled the remaining receivable for an aggregate of $1.0 million, which was received in two installments during the second quarter of 2013, in full and final settlement of the contingent purchase price. An impairment of $1.5 million, pre tax, was recorded in the first quarter of 2013 and is included in "Loss on disposal of discontinued operations, net of tax" in the Consolidated Statements of Income. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings Per Share | Earnings per Share | |||||||||||
The following table provides a reconciliation of the numerators and denominators of basic and diluted earnings per share ("EPS"): | ||||||||||||
2014 | Income | Shares | Per Share | |||||||||
($ in thousands, except per share amounts) | (Numerator) | (Denominator) | Amount | |||||||||
Basic EPS: | ||||||||||||
Net income available to common stockholders | $ | 141,827 | 56,310 | $ | 2.52 | |||||||
Effect of dilutive securities: | ||||||||||||
Stock compensation plans | — | 1,041 | ||||||||||
Diluted EPS: | ||||||||||||
Net income available to common stockholders | $ | 141,827 | 57,351 | $ | 2.47 | |||||||
2013 | Income | Shares | Per Share | |||||||||
($ in thousands, except per share amounts) | (Numerator) | (Denominator) | Amount | |||||||||
Basic EPS: | ||||||||||||
Net income from continuing operations | $ | 107,415 | 55,638 | $ | 1.93 | |||||||
Net loss on disposal of discontinued operations | (997 | ) | 55,638 | (0.02 | ) | |||||||
Net income available to common stockholders | $ | 106,418 | 55,638 | $ | 1.91 | |||||||
Effect of dilutive securities: | ||||||||||||
Stock compensation plans | — | 1,172 | ||||||||||
Diluted EPS: | ||||||||||||
Net income from continuing operations | $ | 107,415 | 56,810 | $ | 1.89 | |||||||
Net loss on disposal of discontinued operations | (997 | ) | 56,810 | (0.02 | ) | |||||||
Net income available to common stockholders | $ | 106,418 | 56,810 | $ | 1.87 | |||||||
2012 | Income | Shares | Per Share | |||||||||
($ in thousands, except per share amounts) | (Numerator) | (Denominator) | Amount | |||||||||
Basic EPS: | ||||||||||||
Net income available to common stockholders | $ | 37,963 | 54,880 | $ | 0.69 | |||||||
Effect of dilutive securities: | ||||||||||||
Stock compensation plans | — | 1,053 | ||||||||||
Diluted EPS: | ||||||||||||
Net income available to common stockholders | $ | 37,963 | 55,933 | $ | 0.68 | |||||||
Federal_Income_Taxes
Federal Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
Federal Income Taxes | Federal Income Taxes | ||||||||||
(a) A reconciliation of federal income tax on income at the corporate rate to the effective tax rate is as follows: | |||||||||||
($ in thousands) | 2014 | 2013 | 2012 | ||||||||
Tax at statutory rate of 35% | $ | 68,996 | 50,331 | 13,172 | |||||||
Tax-advantaged interest | (12,926 | ) | (12,718 | ) | (13,285 | ) | |||||
Dividends received deduction | (1,121 | ) | (1,174 | ) | (1,260 | ) | |||||
Other | 355 | (52 | ) | 1,045 | |||||||
Federal income tax expense (benefit) from continuing operations | $ | 55,304 | 36,387 | (328 | ) | ||||||
(b) The tax effects of the significant temporary differences that give rise to deferred tax assets and liabilities are as follows: | |||||||||||
($ in thousands) | 2014 | 2013 | |||||||||
Deferred tax assets: | |||||||||||
Net loss reserve discounting | $ | 84,502 | 87,967 | ||||||||
Net unearned premiums | 66,470 | 64,167 | |||||||||
Employee benefits | 33,721 | 19,912 | |||||||||
Long-term incentive compensation plans | 13,625 | 12,904 | |||||||||
Temporary investment write-downs | 3,939 | 7,586 | |||||||||
Net operating loss | 2,136 | 2,818 | |||||||||
Alternative minimum tax and other business tax credits | 7,826 | 17,042 | |||||||||
Other | 8,811 | 10,088 | |||||||||
Total deferred tax assets | 221,030 | 222,484 | |||||||||
Deferred tax liabilities: | |||||||||||
Deferred policy acquisition costs | 63,242 | 59,164 | |||||||||
Unrealized gains on investment securities | 43,289 | 31,345 | |||||||||
Other investment-related items, net | 5,088 | 618 | |||||||||
Accelerated depreciation and amortization | 10,962 | 8,744 | |||||||||
Total deferred tax liabilities | 122,581 | 99,871 | |||||||||
Net deferred federal income tax asset | $ | 98,449 | 122,613 | ||||||||
After considering all evidence, both positive and negative, with respect to our federal tax loss carryback availability, expected levels of pre-tax financial statement income, and federal taxable income, we believe it is more likely than not that the existing deductible temporary differences will reverse during periods in which we generate net federal taxable income or have adequate federal carryback availability. As a result, we have no valuation allowance recognized for federal deferred tax assets at December 31, 2014 or 2013. | |||||||||||
As of December 31, 2014, we had federal tax net operating loss carryforwards (“NOL”) of $6.1 million. These NOLs, which are subject to an annual limitation of $1.9 million, will expire between 2029 and 2031 as follows: | |||||||||||
($ in thousands) | Gross NOL | Tax Effected NOL | |||||||||
2029 | $ | 2,024 | 708 | ||||||||
2030 | 3,999 | 1,400 | |||||||||
2031 | 79 | 28 | |||||||||
Total NOL carryforwards | 6,102 | 2,136 | |||||||||
Our alternative minimum tax credits, which are available to offset future regular taxable income, can be carried forward for an unlimited period of time. | |||||||||||
Stockholders' equity reflects tax benefits related to compensation expense deductions for share-based compensation awards of $20.2 million at December 31, 2014, $19.2 million at December 31, 2013, and $17.7 million at December 31, 2012. | |||||||||||
We have analyzed our tax positions in all open tax years, which as of December 31, 2014 were 2011 through 2013. The IRS recently completed a limited scope examination of the 2007 through 2010 tax years, which resulted in no material changes. We do not have unrecognized tax expense or benefit as of December 31, 2014. | |||||||||||
In addition, we believe our tax positions will more likely than not be sustained upon examination, including related appeals or litigation. In the event we had a tax position that did not meet the more likely than not criteria, any tax, interest, and penalties incurred related to such a position would be reflected in "Total federal income tax expense (benefit)" on our Consolidated Statements of Income. |
Retirement_Plans
Retirement Plans | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||
Retirement Plans | Retirement Plans | |||||||||||||||||||
(a) Selective Insurance Retirement Savings Plan (“Retirement Savings Plan”) | ||||||||||||||||||||
SICA offers a voluntary defined contribution 401(k) plan to employees who meet eligibility requirements. Participants can contribute 2% to 50% of their defined compensation to the Retirement Savings Plan not to exceed limits established by the IRS. Employees age 50 or older who are contributing the maximum may make additional contributions not to exceed the additional amount permitted by the IRS. Subject to IRS limits, the following table presents information regarding plan terms: | ||||||||||||||||||||
As of January 1, 2011 | As of April 5, 2013 | |||||||||||||||||||
SICA match | 100% of participant contributions up to the first 3% of defined compensation and 50% up to the next 3% | 100% of participant contributions up to the first 3% of defined compensation and 50% up to the next 3% | ||||||||||||||||||
Non-elective contribution | Non-elective contributions of 4% of defined compensation for employees not eligible to participate in the Retirement Income Plan due to a date of hire after December 31, 2005 | Non-elective contributions of 4% of defined compensation expanded to include employees impacted by the curtailment of the Retirement Income Plan | ||||||||||||||||||
Vesting of match/non-elective contribution | Immediately vested | Immediately vested | ||||||||||||||||||
Employer contributions to the Retirement Savings Plan amounted to $13.4 million in 2014, $12.2 million in 2013, and $8.2 million in 2012. | ||||||||||||||||||||
(b) Deferred Compensation Plan | ||||||||||||||||||||
SICA offers a nonqualified deferred compensation plan ("Deferred Compensation Plan") to a group of management or highly compensated employees (the "Participants") as a method of recognizing and retaining such employees. The Deferred Compensation Plan provides the Participants the opportunity to elect to defer receipt of specified portions of compensation and to have such deferred amounts deemed to be invested in specified investment options. A Participant in the Deferred Compensation Plan may, subject to certain limitations, elect to defer compensation or awards to be received, including up to: (i) 50% of annual base salary; (ii) 100% of annual bonus; and/or (iii) all or a percentage of such other compensation as otherwise designated by the administrator of the Deferred Compensation Plan. | ||||||||||||||||||||
In addition to the deferrals elected by the Participants, SICA may choose to make matching contributions to the deferral accounts of some or all Participants to the extent a Participant did not receive the maximum matching or non-elective contributions permissible under the Retirement Savings Plan due to limitations under the Internal Revenue Code or the Retirement Savings Plan. SICA may also choose at any time to make discretionary contributions to the deferral account of any Participant in our sole discretion. No discretionary contributions were made in 2014, 2013, or 2012. SICA contributed $0.2 million in both 2014 and 2013, and a nominal amount in 2012 to the Deferred Compensation Plan. | ||||||||||||||||||||
(c) Retirement Income Plan and Retirement Life Plan | ||||||||||||||||||||
The Retirement Income Plan for Selective Insurance Company of America and the Supplemental Excess Retirement Plan (jointly referred to as the "Retirement Income Plan" or the "Plan") is a noncontributory defined benefit plan covering SICA employees who met each Plan's eligibility requirements prior to January 1, 2006. As of such date, the Plan was amended to eliminate eligibility for participation by employees first hired on or after January 1, 2006. In addition, the Plan was further amended in the first quarter of 2013 to curtail the accrual of additional benefits for all eligible employees after March 31, 2016. This curtailment resulted in a net actuarial gain recognized in OCI of $44.0 million on a pre-tax basis as of March 31, 2013. | ||||||||||||||||||||
The Retirement Income Plan was previously amended as of July 1, 2002 to provide for different calculations based on service with SICA as of that date. Monthly benefits payable under the Retirement Income Plan at normal retirement age are computed under the terms of those calculations. The earliest retirement age is age 55 with 10 years of service or the attainment of 70 points (age plus years of service). If a participant chooses to begin receiving benefits before their 65th birthday, the amount of the participant's monthly benefit would be reduced in accordance with the provisions of the plan. At retirement, participants receive monthly pension payments and may choose among five payment options, including joint and survivor options. | ||||||||||||||||||||
The funding policy provides that payments to the pension trust shall be equal to the minimum funding requirements of the Employee Retirement Income Security Act, plus additional amounts that the Board of Directors of SICA may approve from time to time. | ||||||||||||||||||||
The funded status of the Retirement Income Plan and Retirement Life Plan was recognized in the Consolidated Balance Sheets for 2014 and 2013, the details of which are as follows: | ||||||||||||||||||||
December 31, | Retirement Income Plan | Retirement Life Plan | ||||||||||||||||||
($ in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Change in Benefit Obligation: | ||||||||||||||||||||
Benefit obligation, beginning of year | $ | 256,404 | 302,647 | 6,201 | 6,471 | |||||||||||||||
Service cost | 5,920 | 7,517 | — | — | ||||||||||||||||
Interest cost | 13,126 | 12,477 | 298 | 283 | ||||||||||||||||
Actuarial losses (gains) | 62,935 | (29,656 | ) | 180 | (224 | ) | ||||||||||||||
Benefits paid | (7,344 | ) | (6,978 | ) | (307 | ) | (329 | ) | ||||||||||||
Impact of curtailment | — | (29,603 | ) | — | — | |||||||||||||||
Benefit obligation, end of year | $ | 331,041 | 256,404 | 6,372 | 6,201 | |||||||||||||||
Change in Fair Value of Assets: | ||||||||||||||||||||
Fair value of assets, beginning of year | $ | 225,817 | 207,150 | — | — | |||||||||||||||
Actual return on plan assets, net of expenses | 24,649 | 15,925 | — | — | ||||||||||||||||
Contributions by the employer to funded plans | 10,210 | 9,600 | — | — | ||||||||||||||||
Contributions by the employer to unfunded plans | 121 | 120 | — | — | ||||||||||||||||
Benefits paid | (7,344 | ) | (6,978 | ) | — | — | ||||||||||||||
Fair value of assets, end of year | $ | 253,453 | 225,817 | — | — | |||||||||||||||
Funded status | $ | (77,588 | ) | (30,587 | ) | (6,372 | ) | (6,201 | ) | |||||||||||
Amounts Recognized in the Consolidated Balance Sheet: | ||||||||||||||||||||
Liabilities | $ | (77,588 | ) | (30,587 | ) | (6,372 | ) | (6,201 | ) | |||||||||||
Net pension liability, end of year | $ | (77,588 | ) | (30,587 | ) | (6,372 | ) | (6,201 | ) | |||||||||||
Amounts Recognized in AOCI: | ||||||||||||||||||||
Net actuarial loss | $ | 91,758 | 39,640 | 1,480 | 1,363 | |||||||||||||||
Total | $ | 91,758 | 39,640 | 1,480 | 1,363 | |||||||||||||||
Other Information as of December 31: | ||||||||||||||||||||
Accumulated benefit obligation | 326,538 | 250,546 | — | — | ||||||||||||||||
Weighted-Average Liability Assumptions as of December 31: | ||||||||||||||||||||
Discount rate | 4.29 | % | 5.16 | 4.08 | 4.85 | |||||||||||||||
Rate of compensation increase | 4 | % | 4 | — | — | |||||||||||||||
Retirement Income Plan | Retirement Life Plan | |||||||||||||||||||
($ in thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income: | ||||||||||||||||||||
Net Periodic Benefit Cost: | ||||||||||||||||||||
Service cost | $ | 5,920 | 7,517 | 8,091 | — | — | — | |||||||||||||
Interest cost | 13,126 | 12,477 | 12,981 | 298 | 283 | 302 | ||||||||||||||
Expected return on plan assets | (15,671 | ) | (15,755 | ) | (14,206 | ) | — | — | — | |||||||||||
Amortization of unrecognized prior service cost | — | 10 | 150 | — | — | — | ||||||||||||||
Amortization of unrecognized actuarial loss | 1,839 | 4,294 | 5,863 | 63 | 80 | 40 | ||||||||||||||
Curtailment expense | — | 16 | — | — | — | — | ||||||||||||||
Total net periodic cost | $ | 5,214 | 8,559 | 12,879 | 361 | 363 | 342 | |||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | ||||||||||||||||||||
Net actuarial loss (gain) | $ | 53,956 | (59,430 | ) | 25,906 | 180 | (224 | ) | 660 | |||||||||||
Reversal of amortization of net actuarial loss | (1,839 | ) | (4,294 | ) | (5,863 | ) | (63 | ) | (80 | ) | (40 | ) | ||||||||
Reversal of amortization of prior service cost | — | (10 | ) | (150 | ) | — | — | — | ||||||||||||
Curtailment expense | — | (16 | ) | — | — | — | — | |||||||||||||
Total recognized in other comprehensive income | $ | 52,117 | (63,750 | ) | 19,893 | 117 | (304 | ) | 620 | |||||||||||
Total recognized in net periodic benefit cost and other comprehensive income | $ | 57,331 | (55,191 | ) | 32,772 | 478 | 59 | 962 | ||||||||||||
The amortization of prior service cost related to the Retirement Income Plan and Retirement Life Plan is determined using a straight-line amortization of the cost over the average remaining service period of employees expected to receive benefits under the Plans. | ||||||||||||||||||||
The estimated net actuarial loss for the Retirement Income Plan and Retirement Life Plan that will be amortized from AOCI into net periodic benefit cost during the 2015 fiscal year are $6.8 million and $0.1 million, respectively. | ||||||||||||||||||||
Retirement Income Plan | Retirement Life Plan | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||
Weighted-Average Expense Assumptions for the years ended December 31: | ||||||||||||||||||||
Discount rate1 | 5.16 | % | 4.66 | 5.16 | 4.85 | 4.42 | 5.16 | |||||||||||||
Expected return on plan assets | 6.92 | % | 7.4 | 7.75 | — | — | — | |||||||||||||
Rate of compensation increase | 4 | % | 4 | 4 | — | — | — | |||||||||||||
1Discount rate for the Retirement Income Plan changed from 4.42% as of December 31, 2012 to 4.66% as of March 31, 2013 due to the remeasurement that was performed with the curtailment of the Plan. | ||||||||||||||||||||
Our latest measurement date was December 31, 2014 and we lowered our expected return on plan assets to 6.27%, reflecting the lower interest rate environment, coupled with our investment strategy to closer match the duration of the assets and liabilities of the Retirement Income Plan. Our expected return is within a reasonable range considering the lower interest rate environment, as well as our actual 8.3% annualized return achieved since plan inception for all plan assets. | ||||||||||||||||||||
Our 2014 discount rate used to value the liability was 4.29% for the Retirement Income Plan and 4.08% for the Retirement Life Plan. When determining the most appropriate discount rate to be used in the valuation, we consider, among other factors, our expected payout patterns of the plans' obligations as well as our investment strategy and we ultimately select the rate that we believe best represents our estimate of the inherent interest rate at which our pension and post-retirement life benefits can be effectively settled. | ||||||||||||||||||||
Our 2014 mortality assumption used to value the liability was based on RP-2014, which is the mortality table that was approved by the Society of Actuaries in the fourth quarter of 2014. | ||||||||||||||||||||
Plan Assets | ||||||||||||||||||||
Assets of the Retirement Income Plan are invested to ensure that principal is preserved and enhanced over time. In addition, the Retirement Income Plan is expected to perform above average relative to comparable funds without assuming undue risk, and to add value through active management. Our return objective is to exceed the returns of the plan's policy benchmark, which is the return the plan would have earned if the assets were invested according to the target asset class weightings and earned index returns. The Retirement Income Plan's exposure to a concentration of credit risk is limited by the diversification of investments across varied financial instruments, including common stocks, mutual funds, non-publicly traded stocks, investments in limited partnerships, fixed income securities, and short-term investments. Allocations to these instruments may vary from time to time. In 2015, we will continue to phase in adjustments to the asset allocation of the Retirement Income Plan | ||||||||||||||||||||
to steadily close the gap between the duration of the assets and the duration of the liabilities, provided certain improved funding targets are achieved. | ||||||||||||||||||||
The Retirement Income Plan’s equity investments may not contain investments in any one security greater than 8% of the portfolio value without notification to our management investment committee, nor have more than 5% of the outstanding shares of any one corporation or other entity. The use of derivative instruments is permitted under certain circumstances, but shall not be used for unrelated speculative hedging or to apply leverage to portfolio positions. Within the alternative investments portfolio, some leverage is permitted as defined and limited by the partnership agreements. | ||||||||||||||||||||
The plan’s target ranges, as well as the actual weighted average asset allocation by asset class, at December 31 were as follows: | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Target Ranges | Actual Percentage | Actual Percentage | ||||||||||||||||||
Long duration fixed income | 55%- 100% | 59 | % | 55 | % | |||||||||||||||
Global equity | 0%- 45% | 25 | % | 27 | % | |||||||||||||||
Global Asset Allocation1 | — | % | 11 | % | 12 | % | ||||||||||||||
Private equity1,2 | — | % | 4 | % | 5 | % | ||||||||||||||
Cash and short-term investments1 | — | % | 1 | % | 1 | % | ||||||||||||||
Total | — | % | 100 | % | 100 | % | ||||||||||||||
1 These asset classes do not have target ranges, as these exposures will be phased out over time as we opportunistically migrate to long duration fixed income security strategies. | ||||||||||||||||||||
2 Includes limited partnerships. | ||||||||||||||||||||
The Retirement Income Plan had no investments in the Parent’s common stock as of December 31, 2014 or 2013. | ||||||||||||||||||||
The fair value of our Retirement Income Plan investments is generated using various valuation techniques. We follow the methodology discussed in Note 2. “Summary of Significant Accounting Policies,” regarding pricing and valuation techniques, as well as the fair value hierarchy, for equity and fixed income securities and short-term investments held in the Retirement Income Plan. | ||||||||||||||||||||
The techniques used to determine the fair value of the Retirement Income Plan’s remaining invested assets are as follows: | ||||||||||||||||||||
• | Valuations for the majority of the investment funds utilize the market approach wherein the quoted prices in the active market for identical assets are used. These investment funds are traded in active markets at their net asset value per share. There are no restrictions on the redemption of these investments and we do not have any contractual obligations to further invest in any of the individual mutual funds. These investments are classified as Level 1 in the fair value hierarchy. Valuations of non-publicly traded investment funds are based upon the observable and verifiable market values of the underlying publicly traded securities and therefore are classified as Level 2 within the fair value hierarchy. | |||||||||||||||||||
• | The deposit administration contract is carried at cost, which approximates fair value. Given the liquid nature of the underlying investments in overnight cash deposits and other short term duration products, we have determined that a correlation exists between the deposit administration contract and other short-term investments such as money market funds. As such, this investment is classified as Level 2 in the fair value hierarchy. | |||||||||||||||||||
• | For valuations of the investments in limited partnerships, fair value is based on the Retirement Income Plan’s ownership interest in the reported net asset values as a practical expedient. The majority of the net asset values are reported to us on a one quarter lag. We assess whether these reported net asset values are indicative of market activity that has occurred since the date of their valuation by the investees: (i) by reviewing the overall market fluctuation and whether a material impact to our investments' valuation could have occurred; and (ii) through routine conversations with the underlying funds' general partners/managers discussing, among other things, conditions or events having significant impacts to their portfolio assets that have occurred subsequent to the reported date, if any. Our limited partnership investments cannot be redeemed with the investees as our partnership agreements require our commitment for the duration of the underlying funds’ lives. There is no active plan to sell any of our remaining interests in the limited partnership investments; however, we may continue to entertain potential opportunities to limit our exposure to these investments through the use of the secondary market. These limited partnerships have been fair valued using Level 3 inputs. | |||||||||||||||||||
The following tables provide quantitative disclosures of the Retirement Income Plan’s invested assets that are measured at fair value on a recurring basis: | ||||||||||||||||||||
31-Dec-14 | Fair Value Measurements at 12/31/14 Using | |||||||||||||||||||
($ in thousands) | Assets Measured at Fair Value At 12/31/14 | Quoted Prices in Active Markets for Identical Assets/ Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Description | ||||||||||||||||||||
Long duration fixed income: | ||||||||||||||||||||
Global asset allocation fund | $ | 27,782 | 27,782 | — | — | |||||||||||||||
Extended duration fixed income | 120,532 | 120,532 | — | — | ||||||||||||||||
Total long duration fixed income | 148,314 | 148,314 | — | — | ||||||||||||||||
Global equity: | ||||||||||||||||||||
Non-U.S. equity | 16,852 | 5,438 | 11,414 | — | ||||||||||||||||
U.S. equity | 47,719 | 47,719 | — | — | ||||||||||||||||
Total global equity | 64,571 | 53,157 | 11,414 | — | ||||||||||||||||
Global asset allocation | 27,842 | 27,842 | — | — | ||||||||||||||||
Private equity (limited partnerships): | ||||||||||||||||||||
Equity long/short hedge | 41 | — | — | 41 | ||||||||||||||||
Private equity | 8,136 | — | — | 8,136 | ||||||||||||||||
Real estate | 2,215 | — | — | 2,215 | ||||||||||||||||
Total private equity | 10,392 | — | — | 10,392 | ||||||||||||||||
Cash and short-term investments: | ||||||||||||||||||||
Short-term investments | 1,222 | 1,222 | — | — | ||||||||||||||||
Deposit administration contracts | 1,180 | — | 1,180 | — | ||||||||||||||||
Total cash and short-term investments | 2,402 | 1,222 | 1,180 | — | ||||||||||||||||
Total invested assets | $ | 253,521 | 230,535 | 12,594 | 10,392 | |||||||||||||||
31-Dec-13 | Fair Value Measurements at 12/31/13 Using | |||||||||||||||||||
($ in thousands) | Assets Measured at Fair Value At 12/31/13 | Quoted Prices in Active Markets for Identical Assets/ Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Description | ||||||||||||||||||||
Long duration fixed income: | ||||||||||||||||||||
Global asset allocation fund | $ | 26,984 | 26,984 | — | — | |||||||||||||||
Extended duration fixed income | 96,920 | 96,920 | — | — | ||||||||||||||||
Total long duration fixed income | 123,904 | 123,904 | — | — | ||||||||||||||||
Global equity: | ||||||||||||||||||||
Non-U.S. equity | 17,548 | 5,574 | 11,974 | — | ||||||||||||||||
U.S. equity | 43,112 | 43,112 | — | — | ||||||||||||||||
Total global equity | 60,660 | 48,686 | 11,974 | — | ||||||||||||||||
Global asset allocation | 27,257 | 27,257 | — | — | ||||||||||||||||
Private equity (limited partnerships): | ||||||||||||||||||||
Equity long/short hedge | 41 | — | — | 41 | ||||||||||||||||
Private equity | 9,899 | — | — | 9,899 | ||||||||||||||||
Real estate | 2,219 | — | — | 2,219 | ||||||||||||||||
Total private equity | 12,159 | — | — | 12,159 | ||||||||||||||||
Cash and short-term investments: | ||||||||||||||||||||
Short-term investments | 963 | 963 | — | — | ||||||||||||||||
Deposit administration contracts | 1,023 | — | 1,023 | — | ||||||||||||||||
Total cash and short-term investments | 1,986 | 963 | 1,023 | — | ||||||||||||||||
Total invested assets | $ | 225,966 | 200,810 | 12,997 | 12,159 | |||||||||||||||
The following tables provide a summary of the changes in fair value of securities using significant unobservable inputs (Level 3): | ||||||||||||||||||||
Investments in Limited Partnerships | ||||||||||||||||||||
($ in thousands) | 2014 | 2013 | ||||||||||||||||||
Fair value, beginning of year | $ | 12,159 | 12,631 | |||||||||||||||||
Total gains (realized and unrealized) | ||||||||||||||||||||
included in changes in net assets | 1,586 | 2,131 | ||||||||||||||||||
Purchases | 334 | 560 | ||||||||||||||||||
Sales | — | — | ||||||||||||||||||
Issuances | — | — | ||||||||||||||||||
Settlements | (3,687 | ) | (3,163 | ) | ||||||||||||||||
Transfers into Level 3 | — | — | ||||||||||||||||||
Transfers out of Level 3 | — | — | ||||||||||||||||||
Fair value, end of year | $ | 10,392 | 12,159 | |||||||||||||||||
The following table outlines a summary of our alternative investment portfolio by strategy and the remaining commitment amount associated with each strategy: | ||||||||||||||||||||
Alternative Investments | Carrying Value | 2014 | ||||||||||||||||||
December 31, | December 31, | Remaining | ||||||||||||||||||
($ in thousands) | 2014 | 2013 | Amount | |||||||||||||||||
Equity long/short hedge | $ | 41 | 41 | — | ||||||||||||||||
Private equity | 8,136 | 9,899 | 3,019 | |||||||||||||||||
Real estate | 2,215 | 2,219 | 536 | |||||||||||||||||
Total alternative investments | $ | 10,392 | 12,159 | 3,555 | ||||||||||||||||
For a description of our private equity and real estate strategies, refer to Note 5. “Investments.” Our equity long/short hedge strategy invests opportunistically in equities and equity-related instruments in companies generally in the financial services sector. Investments within this strategy are permitted to be sold short in order to: (i) prospectively benefit from a correction in overvalued equities; and (ii) partially hedge portfolio assets due to the strategy’s heavy weighting toward the financial sector. | ||||||||||||||||||||
At December 31, 2014, the Retirement Income Plan had contractual obligations that expire at various dates through 2022 to further invest up to $3.6 million in alternative investments. There is no certainty that any such additional investment will be required. The Retirement Income Plan currently receives distributions from these alternative investments through the realization of the underlying investments in the limited partnerships. We anticipate that the general partners of these alternative investments will liquidate their underlying investment portfolios through 2022. | ||||||||||||||||||||
Contributions | ||||||||||||||||||||
We presently anticipate contributing $11.9 million to the Retirement Income Plan in 2015, none of which represents minimum required contribution amounts. | ||||||||||||||||||||
Benefit Payments | ||||||||||||||||||||
($ in thousands) | Retirement Income Plan | Retirement Life Plan | ||||||||||||||||||
Benefits Expected to be Paid in Future | ||||||||||||||||||||
Fiscal Years: | ||||||||||||||||||||
2015 | $ | 9,240 | 343 | |||||||||||||||||
2016 | 10,330 | 348 | ||||||||||||||||||
2017 | 11,400 | 353 | ||||||||||||||||||
2018 | 12,493 | 357 | ||||||||||||||||||
2019 | 13,532 | 362 | ||||||||||||||||||
2020-2024 | 82,802 | 1,865 | ||||||||||||||||||
ShareBased_Payments
Share-Based Payments | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Shared-Based Payments | Share-Based Payments | |||||||||||||
The following is a brief description of each of our share-based compensation plans: | ||||||||||||||
2014 Omnibus Stock Plan | ||||||||||||||
The Parent's 2014 Omnibus Stock Plan ("Stock Plan") was approved effective as of May 1, 2014 by stockholders on April 23, 2014. Under the Stock Plan, the Parent's Board of Directors' Salary and Employee Benefits Committee ("SEBC") may grant qualified and nonqualified stock options, stock appreciation rights ("SARs"), restricted stock, restricted stock units ("RSUs"), stock grants, and other awards valued in whole or in part by reference to the Parent's common stock, in such amounts and with such terms and conditions as it shall determine, subject to the provisions of the Stock Plan. Each award granted under the Stock Plan (except unconditional stock grants and stock grants issued under the Parent's Non-Employee Directors' Compensation and Deferral Plan, as amended and restated effective as of May 1, 2014) shall be evidenced by an agreement containing such restrictions as the SEBC may, in its sole discretion, deem necessary or desirable and which are not in conflict with the terms of the Stock Plan. The maximum exercise period for an option grant under this plan is 10 years from the date of the grant. During 2014, we granted 4,023 RSUs and had no forfeitures under the Stock Plan. No options to purchase common stock were granted in 2014 under the Stock Plan. As of December 31, 2014, 3,500,000 shares of the Parent's common stock were authorized under the Stock Plan and 3,491,894 shares remained available for issuance under the Stock Plan. | ||||||||||||||
For RSUs granted under the Stock Plan in 2014, dividend equivalent units ("DEUs") are earned during the vesting period. The DEUs are reinvested in the Parent's common stock at fair value on each dividend payment date. We accrued DEUs equivalent to 43 shares of the Parent's common stock in 2014. No shares were issued pursuant to vested DEUs in 2014. The DEUs are subject to the same vesting period and conditions set forth in the award agreements for the related RSUs. | ||||||||||||||
2005 Omnibus Stock Plan | ||||||||||||||
The Parent's 2005 Omnibus Stock Plan was approved effective as of April 1, 2005 by stockholders on April 27, 2005, and was amended and restated effective as of May 1, 2010 on April 28, 2010 ("2005 Stock Plan"). With the approval of the 2014 Stock Plan, no further grants are available under the 2005 Stock Plan, although awards outstanding under the 2005 Stock Plan continue in effect according to the terms thereof and any applicable award agreements. In addition, with the 2005 Stock Plan's approval, no further grants were available under the: (i) Parent's Stock Option Plan III, as amended ("Stock Option Plan III"); (ii) Parent's Stock Option Plan for Directors, as amended ("Stock Option Plan for Directors"); or (iii) Parent's Stock Compensation Plan for Non-employee Directors, as amended ("Stock Compensation Plan for Non-employee Directors"), but awards outstanding under these plans continue in effect according to the terms of those plans and any applicable award agreements. | ||||||||||||||
Under the 2005 Stock Plan, the SEBC could grant stock options, SARs, restricted stock, RSUs, phantom stock, stock bonuses, and other awards in such amounts and with such terms and conditions as it determined, subject to the provisions of the 2005 Stock Plan. Each award granted under the 2005 Stock Plan (except unconditional stock grants and the cash component of Director compensation) was evidenced by an agreement containing such restrictions as the SEBC, in its sole discretion, deemed necessary or desirable and which were not in conflict with the terms of the 2005 Stock Plan. The maximum exercise period for an option granted under this plan was 10 years from the date of the grant. | ||||||||||||||
We granted, net of forfeitures, 354,357 RSUs in 2014, 376,163 RSUs in 2013, and 326,213 RSUs in 2012 under the 2005 Stock Plan. No options to purchase common stock were granted in 2014, 2013, or 2012. As of December 31, 2014, 3,035,652 shares of the Parent's common stock were in the reserve for the 2005 Stock Plan. | ||||||||||||||
During the vesting period, DEUs are earned on RSUs. The DEUs are reinvested in the Parent's common stock at fair value on each dividend payment date. We accrued DEUs equivalent to 24,010 shares of the Parent's common stock in 2014, 23,505 shares in 2013, and 32,558 shares in 2012. In addition, 30,991 shares of the Parent's common stock were issued pursuant to vested DEUs in 2014, 39,296 shares were issued pursuant to vested DEUs in 2013, and 48,224 shares were issued pursuant to vested DEUs in 2012. The DEUs are subject to the same vesting period and conditions set forth in the award agreements for the related RSUs. | ||||||||||||||
Cash Incentive Plan | ||||||||||||||
The Parent's Cash Incentive Plan was approved effective April 1, 2005 by stockholders on April 27, 2005, and amended and restated effective as of May 1, 2010 and May 1, 2014 (the “Cash Incentive Plan”) pursuant to stockholder approvals on April 28, 2010 and April 23, 2014, respectively. Under the Cash Incentive Plan, the SEBC may grant cash incentive units in such amounts and with such terms and conditions as it shall determine, subject to the provisions of the Cash Incentive Plan. The initial dollar value of these grants will be adjusted to reflect the percentage increase or decrease in the total shareholder return on the Parent's common stock over a specified performance period. In addition, for certain grants, the number of cash incentive units granted will be increased or decreased to reflect our performance on specified indicators as compared to targeted peer companies. Each award granted under the Cash Incentive Plan shall be evidenced in such form as the SEBC may, in its sole discretion, deem necessary or desirable, subject to the terms of the Cash Incentive Plan. We granted, net of forfeitures, 60,305 cash incentive units during 2014, 55,365 cash incentive units during 2013, and 46,961 cash incentive units during 2012. | ||||||||||||||
Stock Option Plan III | ||||||||||||||
As of December 31, 2014, there were 223,440 shares of the Parent's common stock in the reserve for Stock Option Plan III, under which future grants ceased being available with the approval of the 2005 Stock Plan. Under Stock Option Plan III, employees were granted qualified and nonqualified stock options, with or without SARs, and restricted or unrestricted stock: (i) at not less than fair value on the date of grant, and (ii) subject to certain vesting restrictions determined by the SEBC. Restricted stock awards could be subject to achievement of performance objectives as determined by the SEBC. The maximum exercise period for an option grant under this plan was 10 years from the date of the grant. | ||||||||||||||
Stock Option Plan for Directors | ||||||||||||||
As of December 31, 2014, 36,000 shares of the Parent's common stock remained in the reserve for the Stock Option Plan for Directors, under which future grants ceased being available with the approval of the 2005 Stock Plan. Non-employee directors participated in this plan and automatically received an annual nonqualified option to purchase 6,000 shares of the Parent's common stock at not less than fair value on the date of grant, which is typically on March 1. Options under this plan vested on the first anniversary of the grant and must be exercised by the tenth anniversary of the grant. | ||||||||||||||
Stock Compensation Plan for Non-employee Directors | ||||||||||||||
As of December 31, 2014, there were 94,290 shares of the Parent's common stock available for issuance pursuant to outstanding stock option awards under the Stock Compensation Plan for Non-employee Directors, under which future grants ceased being available with the approval of the 2005 Stock Plan. Under the Stock Compensation Plan for Non-employee Directors, directors could elect to receive a portion of their annual compensation in shares of the Parent's common stock. There were no issuances under this plan in 2014, 2013, and 2012. | ||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||
On April 29, 2009, the Parent’s stockholders approved the Parent’s Employee Stock Purchase Plan (2009) (“ESPP”). This plan replaced the previous employee stock purchase savings plan under which no further purchases could be made as of July 1, 2009. Under the ESPP, there were 1,500,000 shares of the Parent's common stock authorized and 764,098 shares available for purchase as of December 31, 2014. The ESPP is available to all employees who meet the plan's eligibility requirements. The ESPP provides for the issuance of options to purchase shares of common stock. The purchase price is the lower of: (i) 85% of the closing market price at the time the option is granted; or (ii) 85% of the closing price at the time the option is exercised. Shares are generally issued on June 30 and December 31 of each year. Under the ESPP, we issued 106,832 shares to employees during 2014, 122,951 shares during 2013, and 129,081 shares during 2012. | ||||||||||||||
Agent Stock Purchase Plan | ||||||||||||||
On July 27, 2010, the SEBC approved the Parent’s Amended and Restated Stock Purchase Plan for Independent Insurance Agencies ("Agent Plan") which made immaterial amendments to the plan approved by stockholders on April 26, 2006. Under the Agent Plan, there were 3,000,000 shares of the Parent’s common stock authorized and 2,019,296 shares available for purchase as of December 31, 2014. The Agent Plan provides for quarterly offerings in which our independent retail insurance agencies and wholesale general agencies, and certain eligible persons associated with the agencies, with contracts with the Insurance Subsidiaries can purchase the Parent's common stock at a 10% discount with a one year restricted period during which the shares purchased cannot be sold or transferred. Under the Agent Plan, we issued 78,724 shares in 2014, 86,388 shares in 2013, and 89,723 shares in 2012, and charged to expense $0.2 million in each year, with a corresponding income tax benefit of $0.1 million in each year. | ||||||||||||||
A summary of the stock option transactions under our share-based payment plans is as follows: | ||||||||||||||
Number | Weighted | Weighted | Aggregate | |||||||||||
of Shares | Average | Average | Intrinsic Value | |||||||||||
Exercise | Remaining | ($ in thousands) | ||||||||||||
Price | Contractual | |||||||||||||
Life in Years | ||||||||||||||
Outstanding at December 31, 2013 | 903,439 | $ | 19.75 | |||||||||||
Granted in 2014 | — | — | ||||||||||||
Exercised in 2014 | 161,940 | 20.41 | ||||||||||||
Forfeited or expired in 2014 | 6,960 | 28.09 | ||||||||||||
Outstanding at December 31, 2014 | 734,539 | $ | 19.52 | 3.42 | $ | 5,695 | ||||||||
Exercisable at December 31, 2014 | 734,539 | $ | 19.52 | 3.42 | $ | 5,695 | ||||||||
The total intrinsic value of options exercised was $0.8 million during 2014, $1.3 million in 2013, and $0.8 million in 2012. | ||||||||||||||
A summary of the RSU transactions under our share-based payment plans is as follows: | ||||||||||||||
Number | Weighted | |||||||||||||
of Shares | Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Unvested RSU awards at December 31, 2013 | 1,096,780 | $ | 18.73 | |||||||||||
Granted in 2014 | 374,963 | 21.58 | ||||||||||||
Vested in 2014 | 378,150 | 17.47 | ||||||||||||
Forfeited in 2014 | 16,583 | 19.19 | ||||||||||||
Unvested RSU awards at December 31, 2014 | 1,077,010 | $ | 20.18 | |||||||||||
As of December 31, 2014, total unrecognized compensation expense related to unvested RSU awards granted under our stock plans was $4.7 million. That expense is expected to be recognized over a weighted-average period of 1.6 years. The total intrinsic value of RSUs vested was $8.5 million for 2014, $9.1 million for 2013, and $8.4 million for 2012. In connection with the vested RSUs, the total value of the DEU shares that vested was $0.7 million in 2014, and $0.9 million during both 2013 and 2012. | ||||||||||||||
At December 31, 2014, the liability recorded in connection with our Cash Incentive Plan was $21.9 million. The fair value of the liability is re-measured at each reporting period through the settlement date of the awards, which is three years from the date of grant based on an amount expected to be paid. A Monte Carlo simulation is performed to approximate the projected fair value of the cash incentive units that, in accordance with the Cash Incentive Plan, is adjusted to reflect our performance on specified indicators as compared to targeted peer companies. The remaining cost associated with the cash incentive units is expected to be recognized over a weighted average period of 1.1 years. The cash incentive unit payments made were $9.0 million in 2014, $4.7 million in 2013, and $3.0 million in 2012. | ||||||||||||||
In determining expense to be recorded for stock options granted under our share-based compensation plans, the fair value of each option award is estimated on the date of grant using the Black Scholes option valuation model ("Black Scholes"). The following are the significant assumptions used in applying Black Scholes: (i) the risk-free interest rate, which is the implied yield currently available on U.S. Treasury zero-coupon issues with an equal remaining term; (ii) the expected term, which is based on historical experience of similar awards; (iii) the dividend yield, which is determined by dividing the expected per share dividend during the coming year by the grant date stock price; and (iv) the expected volatility, which is based on the volatility of the Parent's stock price over a historical period comparable to the expected term. In applying Black Scholes, we use the weighted average assumptions illustrated in the following table: | ||||||||||||||
ESPP | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Risk-free interest rate | 0.07 | % | 0.11 | 0.12 | ||||||||||
Expected term | 6 months | 6 months | 6 months | |||||||||||
Dividend yield | 2 | % | 2.4 | 2.9 | ||||||||||
Expected volatility | 21 | % | 19 | 24 | ||||||||||
The grant date fair value of RSUs is based on the market price of our common stock on the grant date, adjusted for the present value of our expected dividend payments. The expense recognized for share-based awards is based on the number of shares or units expected to be issued at the end of the performance period and the grant date fair value, and is amortized over the requisite service period. | ||||||||||||||
The weighted-average fair value of options and stock per share, including RSUs granted for the Parent's stock plans, during 2014, 2013, and 2012 is as follows: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
RSUs | $ | 21.58 | 21.03 | 17.62 | ||||||||||
ESPP: | ||||||||||||||
Six month option | 1.24 | 0.97 | 1.05 | |||||||||||
Discount of grant date market value | 3.87 | 3.24 | 2.7 | |||||||||||
Total ESPP | 5.11 | 4.21 | 3.75 | |||||||||||
Agent Plan: | ||||||||||||||
Discount of grant date market value | 2.42 | 2.4 | 1.76 | |||||||||||
Share-based compensation expense charged against net income before tax was $18.6 million for the year ended December 31, 2014 with a corresponding income tax benefit of $6.2 million. Share-based compensation expense that was charged against net income before tax was $19.9 million for the year ended December 31, 2013 and $13.8 million for the year ended December 31, 2012 with corresponding income tax benefits of $6.8 million and $4.8 million, respectively. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |
Dec. 31, 2014 | ||
Related Party Transactions [Abstract] | ||
Related Party Transactions | Related Party Transactions | |
William M. Rue, a Director of the Parent, is Chairman of, and owns more than 10% of the equity of, Chas. E. Rue & Son, Inc., t/a Rue Insurance, a general independent retail insurance agency ("Rue Insurance"). Rue Insurance is an appointed distribution partner of the Insurance Subsidiaries on terms and conditions similar to those of our other distribution partners. Rue Insurance also places insurance for our business operations. Our relationship with Rue Insurance has existed since 1928. | ||
The following is a summary of transactions with Rue Insurance: | ||
• | Rue Insurance placed insurance policies with the Insurance Subsidiaries. DPW associated with these policies were $9.0 million in 2014, $8.2 million in 2013, and $7.7 million in 2012. In return, the Insurance Subsidiaries paid standard market commissions to Rue Insurance of $1.6 million in 2014, $1.3 million in 2013, and $1.3 million in 2012 including supplemental commissions. | |
• | Rue Insurance has placed insurance coverage for us with other insurance companies for which Rue Insurance was paid commission pursuant to its agreements with those carriers in 2012. We paid premiums for such insurance coverage of $0.2 million in 2012. | |
In 2005, we established a private foundation, The Selective Group Foundation (the "Foundation"), under Section 501(c)(3) of the Internal Revenue Code. The Board of Directors of the Foundation is comprised of some of the Parent's officers. We made contributions to the Foundation in the amount of $0.8 million in 2014, and $0.4 million in both 2013 and 2012. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||
Commitments and Contingencies | Commitments and Contingencies | ||||||||||
(a) We purchase annuities from life insurance companies to fulfill obligations under claim settlements that provide for periodic future payments to claimants. As of December 31, 2014, we had purchased such annuities with a present value of $15.0 million for settlement of claims on a structured basis for which we are contingently liable. To our knowledge, there are no material defaults from any of the issuers of such annuities. | |||||||||||
(b) We have various operating leases for office space and equipment. Such lease agreements, which expire at various times, are generally renewed or replaced by similar leases. Rental expense under these leases amounted to $15.6 million in 2014, $13.2 million in 2013, and $13.1 million in 2012. We also lease computer hardware and software under capital lease agreements expiring at various dates through 2019. See Note 2(p) for information on our accounting policy regarding leases. | |||||||||||
In addition, certain leases for rented premises and equipment are non-cancelable, and liability for payment will continue even though the space or equipment may no longer be in use. At December 31, 2014, the total future minimum rental commitments under non-cancelable leases were $44.9 million and such yearly amounts are as follows: | |||||||||||
($ in millions) | Capital Leases | Operating Leases | Total | ||||||||
2015 | $ | 3.1 | $ | 9.1 | $ | 12.2 | |||||
2016 | 1.8 | 6.9 | 8.7 | ||||||||
2017 | 0.8 | 5.9 | 6.7 | ||||||||
2018 | — | 4.7 | 4.7 | ||||||||
2019 | — | 3.7 | 3.7 | ||||||||
After 2019 | — | 8.9 | 8.9 | ||||||||
Total minimum payment required | $ | 5.7 | $ | 39.2 | $ | 44.9 | |||||
(c) At December 31, 2014, we have contractual obligations that expire at various dates through 2028 to invest up to an additional $68.4 million in alternative and other investments. There is no certainty that any such additional investment will be required. For additional information regarding these investments, see item (f) of Note 5. "Investments" in this Form 10-K. |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2014 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Litigation | Litigation |
In the ordinary course of conducting business, we are named as defendants in various legal proceedings. Most of these proceedings are claims litigation involving our Insurance Subsidiaries as either: (i) liability insurers defending or providing indemnity for third-party claims brought against our customers; or (ii) insurers defending first-party coverage claims brought against them. We account for such activity through the establishment of unpaid loss and loss expense reserves. We expect that the ultimate liability, if any, with respect to such ordinary course claims litigation, after consideration of provisions made for potential losses and costs of defense, will not be material to our consolidated financial condition, results of operations, or cash flows. | |
Our Insurance Subsidiaries are from time to time involved in other legal actions, some of which assert claims for substantial amounts. These actions include, among others, putative class actions seeking certification of a state or national class. Such putative class actions have alleged, for example, improper reimbursement of medical providers paid under workers compensation and personal and commercial automobile insurance policies. Our Insurance Subsidiaries also are involved from time to time in individual actions in which extra-contractual damages, punitive damages, or penalties are sought, such as claims alleging bad faith in the handling of insurance claims. We believe that we have valid defenses to these cases. We expect that the ultimate liability, if any, with respect to such lawsuits, after consideration of provisions made for estimated losses, will not be material to our consolidated financial condition. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation, an adverse outcome in certain matters could, from time to time, have a material adverse effect on our consolidated results of operations or cash flows in particular quarterly or annual periods. |
Statutory_Financial_Informatio
Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||
Statutory Financial Information, Capital Requirments, and Retrictions on Dividends and Transfers of Funds | Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds | ||||||||||||||||||||||||
(a) Statutory Financial Information | |||||||||||||||||||||||||
The Insurance Subsidiaries prepare their statutory financial statements in accordance with accounting principles prescribed or permitted by the various state insurance departments of domicile. Prescribed statutory accounting principles include state laws, regulations, and general administrative rules, as well as a variety of publications of the National Association of Insurance Commissioners (“NAIC"). Permitted statutory accounting principles encompass all accounting principles that are not prescribed; such principles differ from state to state, may differ from company to company within a state and may change in the future. The Insurance Subsidiaries do not utilize any permitted statutory accounting principles that materially affect the determination of statutory surplus, statutory net income, or risk-based capital (“RBC”). As of December 31, 2014, the various state insurance departments of domicile have adopted the March 2014 version of the NAIC Accounting Practices and Procedures manual in its entirety, as a component of prescribed or permitted practices. | |||||||||||||||||||||||||
The following table provides statutory data for each of our Insurance Subsidiaries: | |||||||||||||||||||||||||
State of Domicile | Unassigned Surplus | Statutory Surplus | Statutory Net Income | ||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2012 | ||||||||||||||||||
SICA | New Jersey | $ | 338.8 | 309.2 | 493 | 463.4 | 83.9 | 53.1 | 29.8 | ||||||||||||||||
Selective Way Insurance Company ("SWIC") | New Jersey | 201.3 | 201.3 | 250.3 | 250.3 | 37 | 27.5 | 10.1 | |||||||||||||||||
Selective Insurance Company of South Carolina ("SICSC") | Indiana | 83.9 | 80.7 | 115.1 | 111.9 | 14 | 8.2 | 2.8 | |||||||||||||||||
Selective Insurance Company of the Southeast ("SICSE") | Indiana | 59.3 | 56.2 | 84.9 | 81.8 | 10.5 | 6 | 1.6 | |||||||||||||||||
Selective Insurance Company of New York ("SICNY") | New York | 54.9 | 51.5 | 82.6 | 79.3 | 10.3 | 6.9 | 2.7 | |||||||||||||||||
Selective Insurance Company of New England ("SICNE") | New Jersey | 5.3 | 4.7 | 35.4 | 34.9 | 4.4 | 3.1 | 0.6 | |||||||||||||||||
Selective Auto Insurance Company of New Jersey ("SAICNJ") | New Jersey | 18.4 | 14.2 | 61.3 | 57 | 9.1 | 2.5 | 1.5 | |||||||||||||||||
MUSIC | New Jersey | (1.7 | ) | (6.2 | ) | 66.8 | 62.3 | 7.3 | 5.2 | 0.9 | |||||||||||||||
Selective Casualty Insurance Company ("SCIC") | New Jersey | 8.2 | 6.1 | 82.7 | 80.5 | 9.6 | 6.6 | 0.2 | |||||||||||||||||
Selective Fire and Casualty Insurance Company ("SFCIC") | New Jersey | 3.8 | 3.1 | 35.7 | 35 | 4.2 | 3.1 | 0.2 | |||||||||||||||||
Total | $ | 772.2 | 720.8 | 1,307.80 | 1,256.40 | 190.3 | 122.2 | 50.4 | |||||||||||||||||
(b) Capital Requirements | |||||||||||||||||||||||||
The Insurance Subsidiaries are required to maintain certain minimum amounts of statutory surplus to satisfy the requirements of their various state insurance departments of domicile. RBC requirements for property and casualty insurance companies are designed to assess capital adequacy and to raise the level of protection that statutory surplus provides for policyholders. The Insurance Subsidiaries combined total adjusted capital exceeded the authorized control level RBC, as defined by the NAIC, by 4.5:1 based on their 2014 statutory financial statements. The negative unassigned surplus balance for MUSIC existed prior to our acquisition of this company in 2011. This company has not generated sufficient net income since our purchase to offset the existing negative surplus. In addition to statutory capital requirements, we are impacted by various rating agency requirements related to certain rating levels. These required capital levels may be more than statutory requirements. | |||||||||||||||||||||||||
(c) Restrictions on Dividends and Transfers of Funds | |||||||||||||||||||||||||
The Parent pays dividends to stockholders from funds available at the holding company level. As of December 31, 2014, the Parent had an aggregate of $83.0 million in investments and cash available to fund future dividends and interest payments. These amounts are not subject to any regulatory restrictions other than standard state insolvency restrictions, whereas our consolidated retained earnings of $1.3 billion is predominately restricted due to the regulation associated with our Insurance Subsidiaries. In 2015, the Insurance Subsidiaries have the ability to provide for $162.0 million in annual dividends to the Parent; however, as regulated entities, these dividends are subject to certain restrictions as is further discussed below. The Parent also has available to it other potential sources of liquidity, such as: (i) borrowings from our Indiana-domiciled Insurance Subsidiaries; (ii) debt issuances; (iii) common stock issuances; and (iv) borrowings under our Line of Credit. Borrowings from SICSE and SICSC are governed by approved intercompany lending agreements with the Parent that provide for additional capacity of $46.4 million as of December 31, 2014, after considering that borrowings under these lending agreements are restricted to 10% of the admitted assets of these respective subsidiaries. For additional restrictions on the Parent's debt, see Note 10. "Indebtedness" in this Form 10-K. | |||||||||||||||||||||||||
Insurance Subsidiaries Dividend Restrictions | |||||||||||||||||||||||||
As noted above, the restriction on our net assets and retained earnings is predominantly driven by our Insurance Subsidiaries' ability to pay dividends to the Parent under applicable law and regulations. Under the insurance laws of the domiciliary states of the Insurance Subsidiaries, New Jersey, Indiana, and New York, an insurer can potentially make an ordinary dividend payment if its statutory surplus following such dividend is reasonable in relation to its outstanding liabilities, is adequate to its financial needs, and the dividend does not exceed the insurer's unassigned surplus. In general, New Jersey defines an ordinary dividend as a dividend whose fair market value, together with other dividends made within the preceding 12 months, is less than the greater of 10% of the insurer's statutory surplus as of the preceding December 31, or the insurer's net income (excluding capital gains) for the 12-month period ending on the preceding December 31. Indiana's ordinary dividend calculation is consistent with New Jersey's, except that it does not exclude capital gains from net income. In general, New York defines an ordinary dividend as a dividend whose fair market value, together with other dividends made within the preceding 12 months, is less than the lesser of 10% of the insurer's statutory surplus, or 100% of adjusted net investment income. New Jersey and Indiana require notice of the declaration of any ordinary dividend distribution. During the notice period, the relevant state regulatory authority may disallow all or part of the proposed dividend if it determines that the dividend is not appropriate given the above considerations. New York does not require notice of ordinary dividends. Dividend payments exceeding ordinary dividends are referred to as extraordinary dividends and require review and approval by the applicable domiciliary insurance regulatory authority prior to payment. | |||||||||||||||||||||||||
The following table provides quantitative data regarding all Insurance Subsidiaries' dividends paid to the Parent in 2014 for debt service, shareholder dividends, and general operating purposes: | |||||||||||||||||||||||||
Dividends | Twelve Months ended December 31, 2014 | ||||||||||||||||||||||||
($ in millions) | State of Domicile | Ordinary Dividends Paid | |||||||||||||||||||||||
SICA | New Jersey | $ | 22 | ||||||||||||||||||||||
SWIC | New Jersey | 18.2 | |||||||||||||||||||||||
SICSC | Indiana | 5 | |||||||||||||||||||||||
SICSE | Indiana | 2 | |||||||||||||||||||||||
SICNY | New York | 2.5 | |||||||||||||||||||||||
SICNE | New Jersey | 2 | |||||||||||||||||||||||
SAICNJ | New Jersey | 1 | |||||||||||||||||||||||
SCIC | New Jersey | 3 | |||||||||||||||||||||||
SFCIC | New Jersey | 1.8 | |||||||||||||||||||||||
Total | $ | 57.5 | |||||||||||||||||||||||
Based on the 2014 statutory financial statements, the maximum ordinary dividends that can be paid to the Parent by the Insurance Subsidiaries in 2015 are as follows: | |||||||||||||||||||||||||
2015 | |||||||||||||||||||||||||
($ in millions) | State of Domicile | Maximum Ordinary Dividends | |||||||||||||||||||||||
SICA | New Jersey | $ | 62.3 | ||||||||||||||||||||||
SWIC | New Jersey | 32.7 | |||||||||||||||||||||||
SICSC | Indiana | 14 | |||||||||||||||||||||||
SICSE | Indiana | 10.5 | |||||||||||||||||||||||
SICNY | New York | 8.3 | |||||||||||||||||||||||
SICNE | New Jersey | 4.4 | |||||||||||||||||||||||
SAICNJ | New Jersey | 8.9 | |||||||||||||||||||||||
MUSIC | New Jersey | 7.3 | |||||||||||||||||||||||
SCIC | New Jersey | 9.5 | |||||||||||||||||||||||
SFCIC | New Jersey | 4.1 | |||||||||||||||||||||||
Total | $ | 162 | |||||||||||||||||||||||
Quarterly_Financial_Informatio
Quarterly Financial Information | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||
Quarterly Financial Information | Quarterly Financial Information | ||||||||||||||||||||||||
(unaudited, $ in thousands, | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||
except per share data) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Net premiums earned | 456,495 | 420,940 | 463,625 | 426,252 | 462,639 | 437,568 | 469,850 | 451,312 | |||||||||||||||||
Net investment income earned | 35,534 | 32,870 | 36,774 | 34,003 | 34,292 | 32,457 | 32,108 | 35,313 | |||||||||||||||||
Net realized gains (losses) | 7,218 | 3,355 | 4,539 | 5,154 | 15,231 | 13,431 | (389 | ) | (1,208 | ) | |||||||||||||||
Underwriting (loss) income | (5,015 | ) | 12,161 | 10,084 | 4,483 | 34,437 | 10,151 | 38,637 | 11,971 | ||||||||||||||||
Net income from continuing operations | 17,974 | 22,305 | 29,341 | 27,122 | 53,162 | 32,653 | 41,350 | 25,335 | |||||||||||||||||
Loss on disposal of discontinued operations, net of tax | — | (997 | ) | — | — | — | — | — | — | ||||||||||||||||
Net income | 17,974 | 21,308 | 29,341 | 27,122 | 53,162 | 32,653 | 41,350 | 25,335 | |||||||||||||||||
Other comprehensive income (loss) | 16,678 | 27,881 | 26,483 | (62,643 | ) | (18,887 | ) | (2,195 | ) | (29,337 | ) | 7,768 | |||||||||||||
Comprehensive income (loss) | 34,652 | 49,189 | 55,824 | (35,521 | ) | 34,275 | 30,458 | 12,013 | 33,103 | ||||||||||||||||
Net income per share: | |||||||||||||||||||||||||
Basic | 0.32 | 0.38 | 0.52 | 0.49 | 0.94 | 0.59 | 0.73 | 0.45 | |||||||||||||||||
Diluted | 0.31 | 0.38 | 0.51 | 0.48 | 0.93 | 0.57 | 0.72 | 0.44 | |||||||||||||||||
Dividends to stockholders1 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.14 | 0.13 | |||||||||||||||||
Price range of common stock:2 | |||||||||||||||||||||||||
High | 26.99 | 24.13 | 25.42 | 24.75 | 25.46 | 25.95 | 27.65 | 28.31 | |||||||||||||||||
Low | 21.38 | 19.53 | 22.14 | 19.58 | 21.97 | 22.61 | 22.01 | 23.55 | |||||||||||||||||
The addition of all quarters may not agree to annual amounts on the Financial Statements due to rounding. | |||||||||||||||||||||||||
1 See Note 20. “Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds” for a discussion of dividend restrictions. | |||||||||||||||||||||||||
2 These ranges of high and low prices of the Parent’s common stock, as reported by the NASDAQ Global Select Market, represent actual transactions. Price quotations do not include retail markups, markdowns, and commissions. The range of high and low prices for common stock for the period beginning January 2, 2015 and ending February 13, 2015 was $25.49 to $28.08. |
Schedule_I_Summay_of_Investmen
Schedule I - Summay of Investments - Other Than Investments in Related Parties | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Summary of Investments, Other than Investments in Related Parties [Abstract] | |||||||||||
Schedule I - Summary of Investments- Other than Investments in Related Parties | |||||||||||
Types of investment | |||||||||||
($ in thousands) | Amortized Cost or Cost | Fair Value | Carrying Amount | ||||||||
Fixed income securities: | |||||||||||
Held-to-maturity: | |||||||||||
Foreign government obligations | $ | 5,292 | 5,394 | 5,339 | |||||||
Obligations of states and political subdivisions | 285,301 | 299,132 | 287,372 | ||||||||
Public utilities | 11,019 | 12,483 | 11,000 | ||||||||
All other corporate securities | 7,880 | 8,939 | 7,626 | ||||||||
Asset-backed securities | 2,818 | 2,823 | 2,363 | ||||||||
Commercial mortgage-backed securities | 4,869 | 5,190 | 4,437 | ||||||||
Total fixed income securities, held-to-maturity | 317,179 | 333,961 | 318,137 | ||||||||
Available-for-sale: | |||||||||||
U.S. government and government agencies | 116,666 | 124,130 | 124,130 | ||||||||
Foreign government obligations | 27,035 | 27,831 | 27,831 | ||||||||
Obligations of states and political subdivisions | 1,208,776 | 1,246,264 | 1,246,264 | ||||||||
Public utilities | 149,006 | 150,977 | 150,977 | ||||||||
All other corporate securities | 1,614,421 | 1,648,829 | 1,648,829 | ||||||||
Asset-backed securities | 176,837 | 177,224 | 177,224 | ||||||||
Commercial mortgage-backed securities | 177,932 | 179,593 | 179,593 | ||||||||
Residential mortgage-backed securities | 505,113 | 511,274 | 511,274 | ||||||||
Total fixed income securities, available-for-sale | 3,975,786 | 4,066,122 | 4,066,122 | ||||||||
Equity securities: | |||||||||||
Common stock: | |||||||||||
Public utilities | 8,815 | 10,284 | 10,284 | ||||||||
Banks, trust and insurance companies | 30,187 | 35,348 | 35,348 | ||||||||
Industrial, miscellaneous and all other | 120,009 | 145,768 | 145,768 | ||||||||
Total equity securities, available-for-sale | 159,011 | 191,400 | 191,400 | ||||||||
Short-term investments | 131,972 | 131,972 | 131,972 | ||||||||
Other investments | 99,203 | 99,203 | |||||||||
Total investments | $ | 4,683,151 | 4,806,834 | ||||||||
Schedule_II_Parent_Corporation
Schedule II - Parent Corporation Finanical Statements | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||
Schedule II- Parent Corporation Financial Statements | SCHEDULE II | ||||||||||
SELECTIVE INSURANCE GROUP, INC. | |||||||||||
(Parent Corporation) | |||||||||||
Balance Sheets | |||||||||||
December 31, | |||||||||||
($ in thousands, except share amounts) | 2014 | 2013 | |||||||||
Assets: | |||||||||||
Fixed income securities, available-for-sale – at fair value (amortized cost: $49,890 – 2014; $55,447 – 2013) | $ | 50,028 | 55,623 | ||||||||
Short-term investments | 16,605 | 15,399 | |||||||||
Cash | 16,367 | 193 | |||||||||
Investment in subsidiaries | 1,604,162 | 1,493,996 | |||||||||
Current federal income tax | 16,848 | 28,471 | |||||||||
Deferred federal income tax | 15,781 | 15,122 | |||||||||
Other assets | 7,268 | 9,410 | |||||||||
Total assets | $ | 1,727,059 | 1,618,214 | ||||||||
Liabilities: | |||||||||||
Notes payable | $ | 334,297 | 334,414 | ||||||||
Intercompany notes payable | 88,961 | 102,721 | |||||||||
Accrued long-term stock compensation | 21,890 | 20,828 | |||||||||
Other liabilities | 6,325 | 6,323 | |||||||||
Total liabilities | $ | 451,473 | 464,286 | ||||||||
Stockholders’ Equity: | |||||||||||
Preferred stock at $0 par value per share: | |||||||||||
Authorized shares 5,000,000; no shares issued or outstanding | $ | — | — | ||||||||
Common stock of $2 par value per share: | |||||||||||
Authorized shares: 360,000,000 | |||||||||||
Issued: 99,947,933 – 2014; 99,120,235 – 2013 | 199,896 | 198,240 | |||||||||
Additional paid-in capital | 305,385 | 288,182 | |||||||||
Retained earnings | 1,313,440 | 1,202,015 | |||||||||
Accumulated other comprehensive income | 19,788 | 24,851 | |||||||||
Treasury stock – at cost (shares: 43,353,181 – 2014; 43,198,622 – 2013) | (562,923 | ) | (559,360 | ) | |||||||
Total stockholders’ equity | 1,275,586 | 1,153,928 | |||||||||
Total liabilities and stockholders’ equity | $ | 1,727,059 | 1,618,214 | ||||||||
Information should be read in conjunction with the Notes to Consolidated Financial Statements of Selective Insurance Group, Inc. and its subsidiaries in Item 8. “Financial Statements and Supplementary Data.” of this Form 10-K. | |||||||||||
SCHEDULE II (continued) | |||||||||||
SELECTIVE INSURANCE GROUP, INC. | |||||||||||
(Parent Corporation) | |||||||||||
Statements of Income | |||||||||||
Year ended December 31, | |||||||||||
($ in thousands) | 2014 | 2013 | 2012 | ||||||||
Revenues: | |||||||||||
Dividends from subsidiaries | $ | 57,511 | 32,129 | 196,091 | |||||||
Net investment income earned | 620 | 585 | 495 | ||||||||
Other income | 342 | 55 | 464 | ||||||||
Total revenues | 58,473 | 32,769 | 197,050 | ||||||||
Expenses: | |||||||||||
Interest expense | 23,840 | 24,309 | 20,711 | ||||||||
Other expenses | 24,575 | 27,888 | 20,632 | ||||||||
Total expenses | 48,415 | 52,197 | 41,343 | ||||||||
Income (loss) from continuing operations, before federal income tax | 10,058 | (19,428 | ) | 155,707 | |||||||
Federal income tax benefit: | |||||||||||
Current | (15,920 | ) | (22,779 | ) | (4,602 | ) | |||||
Deferred | (646 | ) | 4,835 | (9,347 | ) | ||||||
Total federal income tax benefit | (16,566 | ) | (17,944 | ) | (13,949 | ) | |||||
Net income (loss) from continuing operations before equity in undistributed income of subsidiaries | 26,624 | (1,484 | ) | 169,656 | |||||||
Equity in undistributed income of continuing subsidiaries, net of tax | 115,203 | 108,899 | — | ||||||||
Dividends in excess of continuing subsidiaries’ current year earnings | — | — | (131,693 | ) | |||||||
Net income from continuing operations | 141,827 | 107,415 | 37,963 | ||||||||
Loss on disposal of discontinued operations, net of tax of $(538) - 2013 | — | (997 | ) | — | |||||||
Net income | $ | 141,827 | 106,418 | 37,963 | |||||||
Information should be read in conjunction with the Notes to Consolidated Financial Statements of Selective Insurance Group, Inc. and its subsidiaries in Item 8. “Financial Statements and Supplementary Data.” of this Form 10-K. | |||||||||||
SCHEDULE II (continued) | |||||||||||
SELECTIVE INSURANCE GROUP, INC. | |||||||||||
(Parent Corporation) | |||||||||||
Statements of Cash Flows | |||||||||||
Year ended December 31, | |||||||||||
($ in thousands) | 2014 | 2013 | 2012 | ||||||||
Operating Activities: | |||||||||||
Net income | $ | 141,827 | 106,418 | 37,963 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed income of subsidiaries, net of tax | (115,203 | ) | (108,899 | ) | — | ||||||
Dividends in excess of continuing subsidiaries’ current year income | — | — | 131,693 | ||||||||
Stock-based compensation expense | 8,702 | 8,630 | 6,939 | ||||||||
Loss on disposal of discontinued operations | — | 997 | — | ||||||||
Net realized gains | (2 | ) | — | (219 | ) | ||||||
Amortization – other | 1,421 | 4,353 | 450 | ||||||||
Changes in assets and liabilities: | |||||||||||
Increase in accrued long-term stock compensation | 1,062 | 6,791 | 5,221 | ||||||||
Decrease (increase) in net federal income taxes | 10,977 | (14,968 | ) | 4,897 | |||||||
Increase (decrease) in other assets and other liabilities | 1,045 | 1,204 | (7,014 | ) | |||||||
Net adjustments | (91,998 | ) | (101,892 | ) | 141,967 | ||||||
Net cash provided by operating activities | 49,829 | 4,526 | 179,930 | ||||||||
Investing Activities: | |||||||||||
Purchase of fixed income securities, available-for-sale | (18,511 | ) | (21,708 | ) | (148,604 | ) | |||||
Redemption and maturities of fixed income securities, available-for-sale | 23,210 | 6,432 | 118,371 | ||||||||
Sale of fixed income securities, available-for-sale | 300 | — | 8,973 | ||||||||
Purchase of short-term investments | (102,717 | ) | (241,748 | ) | (106,539 | ) | |||||
Sale of short-term investments | 101,510 | 253,136 | 113,700 | ||||||||
Capital contribution to subsidiaries | — | (57,125 | ) | (139,122 | ) | ||||||
Purchase of subsidiary, net of cash acquired | — | — | 255 | ||||||||
Sale of subsidiary | — | 1,225 | 751 | ||||||||
Net cash provided by (used in) investing activities | 3,792 | (59,788 | ) | (152,215 | ) | ||||||
Financing Activities: | |||||||||||
Dividends to stockholders | (28,428 | ) | (27,416 | ) | (26,944 | ) | |||||
Acquisition of treasury stock | (3,563 | ) | (3,716 | ) | (3,495 | ) | |||||
Proceeds from notes payable, net of debt issuance costs | — | 178,435 | — | ||||||||
Net proceeds from stock purchase and compensation plans | 7,283 | 7,119 | 4,840 | ||||||||
Excess tax benefits from share-based payment arrangements | 1,020 | 1,545 | 1,060 | ||||||||
Repayment of notes payable | — | (100,000 | ) | — | |||||||
Principal payment on borrowings from subsidiaries | (13,759 | ) | (722 | ) | (3,688 | ) | |||||
Net cash (used in) provided by financing activities | (37,447 | ) | 55,245 | (28,227 | ) | ||||||
Net increase (decrease) in cash | 16,174 | (17 | ) | (512 | ) | ||||||
Cash, beginning of year | 193 | 210 | 722 | ||||||||
Cash, end of year | $ | 16,367 | 193 | 210 | |||||||
Information should be read in conjunction with the Notes to Consolidated Financial Statements of Selective Insurance Group, Inc. and its subsidiaries in Item 8. “Financial Statements and Supplementary Data.” of this Form 10-K. |
Schedule_III_Supplementary_Ins
Schedule III - Supplementary Insurance Information | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Supplementary Insurance Information [Abstract] | |||||||||||||||||||||||||||||
Schedule III- Supplementary Insurance Information | |||||||||||||||||||||||||||||
($ in thousands) | Deferred | Reserve | Unearned premiums | Net | Net | Losses | Amortization | Other | Net | ||||||||||||||||||||
policy | for loss | premiums earned | investment income1 | and loss | of deferred | operating expenses3 | premiums written | ||||||||||||||||||||||
acquisition costs | and loss expenses | expenses incurred | policy | ||||||||||||||||||||||||||
acquisition costs2 | |||||||||||||||||||||||||||||
Standard Commercial Lines Segment | $ | 147,285 | 3,000,796 | 734,697 | 1,415,712 | — | 870,018 | 295,774 | 188,699 | 1,441,047 | |||||||||||||||||||
Standard Personal Lines Segment | 17,495 | 279,761 | 285,777 | 296,747 | — | 197,182 | 34,851 | 48,178 | 292,061 | ||||||||||||||||||||
E&S Lines | 20,828 | 197,313 | 75,345 | 140,150 | — | 90,301 | 33,670 | 15,793 | 152,172 | ||||||||||||||||||||
Investments Segment | — | — | — | — | 165,307 | — | — | — | — | ||||||||||||||||||||
Total | $ | 185,608 | 3,477,870 | 1,095,819 | 1,852,609 | 165,307 | 1,157,501 | 364,295 | 252,670 | 1,885,280 | |||||||||||||||||||
1Includes “Net investment income earned” and “Net realized investment gains” on the Consolidated Statements of Income. | |||||||||||||||||||||||||||||
2The total of “Amortization of deferred policy acquisition costs” of $364,295 and “Other operating expenses” of $252,670 reconciles to the Consolidated Statements of Income as follows: | |||||||||||||||||||||||||||||
Policy acquisition costs | $ | 624,470 | |||||||||||||||||||||||||||
Other income3 | (16,598 | ) | |||||||||||||||||||||||||||
Other expenses3 | 9,093 | ||||||||||||||||||||||||||||
Total | $ | 616,965 | |||||||||||||||||||||||||||
3 In addition to amounts related to the Standard Commercial Lines, Standard Personal Lines, and E&S Lines, “Other income” and “Other expenses” on the Consolidated Statements of Income includes holding company income and expense amounts of $347 and $24,580, respectively. | |||||||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||
($ in thousands) | Deferred | Reserve | Unearned premiums | Net | Net | Losses | Amortization | Other | Net | ||||||||||||||||||||
policy | for loss | premiums earned | investment income1 | and loss | of deferred | operating expenses3 | premiums written | ||||||||||||||||||||||
acquisition costs | and loss expenses | expenses incurred | policy | ||||||||||||||||||||||||||
acquisition costs2 | |||||||||||||||||||||||||||||
Standard Commercial Lines Segment | $ | 138,397 | 2,877,087 | 708,861 | 1,316,619 | — | 831,261 | 270,443 | 181,059 | 1,380,740 | |||||||||||||||||||
Standard Personal Lines Segment | 18,149 | 312,411 | 286,969 | 294,332 | — | 206,450 | 33,097 | 46,140 | 297,757 | ||||||||||||||||||||
E&S Lines | 16,435 | 160,272 | 63,325 | 125,121 | — | 84,027 | 28,288 | 16,541 | 131,662 | ||||||||||||||||||||
Investments Segment | — | — | — | — | 155,375 | — | — | — | — | ||||||||||||||||||||
Total | $ | 172,981 | 3,349,770 | 1,059,155 | 1,736,072 | 155,375 | 1,121,738 | 331,828 | 243,740 | 1,810,159 | |||||||||||||||||||
1Includes “Net investment income earned” and “Net realized investment gains” on the Consolidated Statements of Income. | |||||||||||||||||||||||||||||
2 The total of “Amortization of deferred policy acquisition costs” of $331,828 and “Other operating expenses” of $243,740 reconciles to the Consolidated Statements of Income as follows: | |||||||||||||||||||||||||||||
Policy acquisition costs | $ | 579,977 | |||||||||||||||||||||||||||
Other income3 | (12,201 | ) | |||||||||||||||||||||||||||
Other expenses3 | 7,792 | ||||||||||||||||||||||||||||
Total | $ | 575,568 | |||||||||||||||||||||||||||
3 In addition to amounts related to the Standard Commercial Lines, Standard Personal Lines, and E&S Lines, “Other income” and “Other expenses” on the Consolidated Statements of Income includes holding company income and expense amounts of $93 and $27,894, respectively. | |||||||||||||||||||||||||||||
SCHEDULE III (continued) | |||||||||||||||||||||||||||||
SELECTIVE INSURANCE GROUP, INC. AND CONSOLIDATED SUBSIDIARIES | |||||||||||||||||||||||||||||
SUPPLEMENTARY INSURANCE INFORMATION | |||||||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||
($ in thousands) | Deferred | Reserve | Unearned premiums | Net | Net | Losses | Amortization | Other | Net | ||||||||||||||||||||
policy | for loss and loss expenses | premiums earned | investment income1 | and loss | of deferred | operating expenses3 | premiums written | ||||||||||||||||||||||
acquisition costs | expenses incurred | policy | |||||||||||||||||||||||||||
acquisition costs2 | |||||||||||||||||||||||||||||
Standard Commercial Lines Segment | $ | 123,861 | 2,753,556 | 642,032 | 1,225,335 | — | 853,143 | 247,016 | 166,111 | 1,263,738 | |||||||||||||||||||
Standard Personal Lines Segment | 17,690 | 1,195,082 | 275,886 | 279,555 | — | 204,644 | 33,684 | 44,741 | 289,848 | ||||||||||||||||||||
E&S Lines | 13,972 | 120,303 | 56,788 | 79,229 | — | 63,203 | 17,847 | 17,737 | 113,297 | ||||||||||||||||||||
Investments Segment | — | — | — | — | 140,865 | — | — | — | — | ||||||||||||||||||||
Total | $ | 155,523 | 4,068,941 | 974,706 | 1,584,119 | 140,865 | 1,120,990 | 298,547 | 228,589 | 1,666,883 | |||||||||||||||||||
1 Includes “Net investment income earned” and “Net realized investment gains” on the Consolidated Statements of Income. | |||||||||||||||||||||||||||||
2 The total of “Amortization of deferred policy acquisition costs” of $298,547 and “Other operating expenses” of $228,589 reconciles to the Consolidated Statements of Income as follows: | |||||||||||||||||||||||||||||
Policy acquisition costs | $ | 526,143 | |||||||||||||||||||||||||||
Other income3 | (8,827 | ) | |||||||||||||||||||||||||||
Other expenses3 | 9,820 | ||||||||||||||||||||||||||||
Total | $ | 527,136 | |||||||||||||||||||||||||||
3 In addition to amounts related to the Standard Commercial Lines, Standard Personal Lines, and E&S Lines, “Other income” and “Other expenses” on the Consolidated Statements of Income includes holding company income and expense amounts of $291 and $20,642, respectively. |
Schedule_IV_Reinsurance
Schedule IV - Reinsurance | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |||||||||||||||||
Schedule IV - Reinsurance | |||||||||||||||||
($ thousands) | Direct Amount | Assumed From Other Companies | Ceded to Other Companies | Net Amount | % of Amount Assumed To Net | ||||||||||||
2014 | |||||||||||||||||
Premiums earned: | |||||||||||||||||
Accident and health insurance | $ | 44 | — | 44 | — | — | |||||||||||
Property and liability insurance | 2,183,214 | 34,653 | 365,258 | 1,852,609 | 2 | % | |||||||||||
Total premiums earned | 2,183,258 | 34,653 | 365,302 | 1,852,609 | 2 | % | |||||||||||
2013 | |||||||||||||||||
Premiums earned: | |||||||||||||||||
Accident and health insurance | $ | 55 | — | 55 | — | — | |||||||||||
Property and liability insurance | 2,048,475 | 44,464 | 356,867 | 1,736,072 | 3 | % | |||||||||||
Total premiums earned | 2,048,530 | 44,464 | 356,922 | 1,736,072 | 3 | % | |||||||||||
2012 | |||||||||||||||||
Premiums earned: | |||||||||||||||||
Accident and health insurance | $ | 58 | — | 58 | — | — | |||||||||||
Property and liability insurance | 1,872,949 | 65,884 | 354,714 | 1,584,119 | 4 | % | |||||||||||
Total premiums earned | 1,873,007 | 65,884 | 354,772 | 1,584,119 | 4 | % | |||||||||||
Schedule_V_Allowance_for_Uncol
Schedule V - Allowance for Uncollectible Premiums and Other Receivables | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||
Schedule V - Allowance for Uncollectible Premiums and Other Receivables | |||||||||||
($ in thousands) | 2014 | 2013 | 2012 | ||||||||
Balance, January 1 | $ | 9,542 | 8,706 | 7,668 | |||||||
Additions | 4,617 | 3,733 | 4,536 | ||||||||
Deductions | (3,122 | ) | (2,897 | ) | (3,498 | ) | |||||
Balance, December 31 | $ | 11,037 | 9,542 | 8,706 | |||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Principles of Consolidation | Principles of Consolidation | ||
The accompanying consolidated financial statements ("Financial Statements") include the accounts of the Parent and its subsidiaries, and have been prepared in conformity with: (i) U.S. generally accepted accounting principles ("GAAP"); and (ii) the rules and regulations of the U.S. Securities and Exchange Commission. All significant intercompany accounts and transactions are eliminated in consolidation. | |||
Use of Estimates | Use of Estimates | ||
The preparation of our Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported financial statement balances, as well as the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. | |||
Reclassifications | Reclassifications | ||
Certain amounts in our prior years' Financial Statements and related notes have been reclassified to conform to the 2014 presentation. Such reclassifications had no effect on our net income, stockholders' equity, or cash flows. | |||
Investments | Investments | ||
Fixed income securities may include bonds, redeemable preferred stocks, mortgage-backed securities (“MBS”) and asset-backed securities (“ABS”). Fixed income securities classified as available-for-sale (“AFS”) are reported at fair value. Those fixed income securities that we have the ability and positive intent to hold to maturity are classified as held-to-maturity (“HTM”) and are carried at either: (i) amortized cost; or (ii) market value at the date of transfer into the HTM category, adjusted for subsequent amortization. The amortized cost of fixed income securities is adjusted for the amortization of premiums and the accretion of discounts over the expected life of the security using the effective yield method. Premiums and discounts arising from the purchase of MBS are amortized over the expected life of the security based on future principal payments, and considering prepayments. These prepayments are estimated based on historical and projected cash flows. Prepayment assumptions are reviewed quarterly and adjusted to reflect actual prepayments and changes in expectations. Future amortization of any premium and/or discount is adjusted to reflect the revised assumptions. Interest income, as well as amortization and accretion, is included in "Net investment income earned" on our Consolidated Statements of Income. The amortized cost of fixed income securities is written down to fair value when a decline in value is considered to be other than temporary. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Unrealized gains and losses on fixed income securities classified as AFS, net of tax, are included in accumulated other comprehensive income (loss) ("AOCI"). | |||
Equity securities, which are classified as AFS, may include common stocks and non-redeemable preferred stocks, and are carried at fair value. Dividend income on these securities is included in "Net investment income earned" on our Consolidated Statements of Income. The associated unrealized gains and losses, net of tax, are included in AOCI. The cost of equity securities is written down to fair value when a decline in value is considered to be other than temporary. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. | |||
Short-term investments may include certain money market instruments, savings accounts, commercial paper, and other debt issues purchased with a maturity of less than one year. These investments are carried at cost, which approximates fair value. The associated income is included in "Net investment income earned" on our Consolidated Statement of Income. | |||
Other investments may include alternative investments and other securities. Alternative investments are accounted for using the equity method. Our share of distributed and undistributed net income from alternative investments is included in "Net investment income earned" on our Consolidated Statement of Income. Included in other securities are low income housing tax credits, which are accounted for under the proportional amortization method. The remainder of our other securities are accounted for using the equity method. Under the proportional amortization method, our share of the investment’s performance is recorded in our Consolidated Statement of Income as a component of “Federal income tax expense (benefit).” Under the equity method, our share of distributed and undistributed net income is included in "Net investment income earned" on our Consolidated Statement of Income. | |||
Realized gains and losses on the sale of investments are determined on the basis of the cost of the specific investments sold and are credited or charged to income. Included in realized gains and losses are the other-than-temporary impairment ("OTTI") charges recognized in earnings, which are discussed below. | |||
When the fair value of any investment is lower than its cost/amortized cost, an assessment is made to determine if the decline is other than temporary. We regularly review our entire investment portfolio for declines in fair value. If we believe that a decline in the value of an AFS security is temporary, we record the decline as an unrealized loss in AOCI. Temporary declines in the value of an HTM security are not recognized in the Financial Statements. Our assessment of a decline in fair value includes judgment as to the financial position and future prospects of the entity that issued the investment security, as well as a review of the security’s underlying collateral for fixed income investments. Broad changes in the overall market or interest rate environment generally will not lead to a write-down. | |||
Fixed Income Securities and Short-Term Investments | |||
Our evaluation for OTTI of a fixed income security or a short-term investment may include, but is not limited to, the evaluation of the following factors: | |||
• | Whether the decline appears to be issuer or industry specific; | ||
• | The degree to which the issuer is current or in arrears in making principal and interest payments on the fixed income security; | ||
• | The issuer’s current financial condition and ability to make future scheduled principal and interest payments on a timely basis; | ||
• | Evaluation of projected cash flows; | ||
• | Buy/hold/sell recommendations published by outside investment advisors and analysts; and | ||
• | Relevant rating history, analysis, and guidance provided by rating agencies and analysts. | ||
OTTI charges are recognized as a realized loss to the extent that they are credit related, unless we have the intent to sell the security or it is more-likely-than not that we will be required to sell the security. In those circumstances, the security is written down to fair value with the entire amount of the writedown charged to earnings as a component of realized losses. | |||
To determine if an impairment is other than temporary, we compare the present value of cash flows expected to be collected with the amortized cost of fixed income securities meeting certain criteria. In addition, this analysis is performed on all previously-impaired debt securities that continue to be held by us and all structured securities that were not of high-credit quality at the date of purchase. These impairment assessments may include, but are not limited to, discounted cash flow analyses ("DCFs"). | |||
For structured securities, including commercial mortgage-backed securities ("CMBS"), residential mortgage-backed securities ("RMBS"), ABS, and collaterialized debt obligations ("CDOs"), we also consider variables such as expected default, severity, and prepayment assumptions based on security type and vintage, taking into consideration information from credit agencies, historical performance, and other relevant economic and performance factors. | |||
In making our assessment, we perform a DCF to determine the present value of future cash flows to be generated by the underlying collateral of the security. Any shortfall in the expected present value of the future cash flows, based on the DCF, from the amortized cost basis of a security is considered a “credit impairment,” with the remaining decline in fair value of a security considered as a “non-credit impairment.” As mentioned above, credit impairments are charged to earnings as a component of realized losses, while non-credit impairments are recorded to Other Comprehensive Income ("OCI") as a component of unrealized losses. | |||
Discounted Cash Flow Assumptions | |||
The discount rate we use in a DCF is the effective interest rate implicit in the security at the date of acquisition for those structured securities that were not of high-credit quality at acquisition. For all other securities, we use a discount rate that equals the current yield, excluding the impact of previous OTTI charges, used to accrete the beneficial interest. | |||
If applicable, we use a conditional default rate assumption in the DCF to estimate future defaults. The conditional default rate is the proportion of all loans outstanding in a security at the beginning of a time period that are expected to default during that period. Our assumption of this rate takes into consideration the uncertainty of future defaults as well as whether or not these securities have experienced significant cumulative losses or delinquencies to date. | |||
If applicable, conditional default rate assumptions apply at the total collateral pool level held in the securitization trust. Generally, collateral conditional default rates will “ramp-up” over time as the collateral seasons, because the performance begins to weaken and losses begin to surface. As time passes, depending on the collateral type and vintage, losses will peak and performance will begin to improve as weaker borrowers are removed from the pool through delinquency resolutions. In the later years of a collateral pool’s life, performance is generally materially better as the resulting favorable selection of the portfolio improves the overall quality and performance. | |||
For CMBS, we also consider the net operating income (“NOI”) generated by the underlying properties. Our assumptions of the properties’ ultimate cash flows take into consideration both an immediate reduction to the reported NOIs and decreases to projected NOIs. | |||
If applicable, we use a loan loss severity assumption in our DCF that is applied at the loan level of the collateral pool. The loan loss severity assumptions represent the estimated percentage loss on the loan-to-value exposure for a particular security. For CMBS, the loan loss severities applied are based on property type. Losses generated from the evaluations are then applied to the entire underlying deal structure in accordance with the original service agreements. | |||
Equity Securities | |||
Evaluation for OTTI of an equity security may include, but is not limited to, an evaluation of the following factors: | |||
• | Whether the decline appears to be issuer or industry specific; | ||
• | The relationship of market prices per share to book value per share at the date of acquisition and date of evaluation; | ||
• | The price-earnings ratio at the time of acquisition and date of evaluation; | ||
• | The financial condition and near-term prospects of the issuer, including any specific events that may influence the issuer's operations, coupled with our intention to hold the securities in the near-term; | ||
• | The recent income or loss of the issuer; | ||
• | The independent auditors' report on the issuer's recent financial statements; | ||
• | The dividend policy of the issuer at the date of acquisition and the date of evaluation; | ||
• | Buy/hold/sell recommendations or price projections published by outside investment advisors; | ||
• | Rating agency announcements; | ||
• | The length of time and the extent to which the fair value has been, or is expected to be, less than its cost in the near term; and | ||
• | Our expectation of when the cost of the security will be recovered. | ||
If there is a decline in the fair value on an equity security that we do not intend to hold, or if we determine the decline is other-than-temporary, including declines driven by market volatility for which we cannot assert will recover in the near term, we will write down the carrying value of the investment and record the charge through earnings as a component of realized losses. | |||
Other Investments | |||
Our evaluation for OTTI of an other investment (i.e., an alternative investment) may include, but is not limited to, conversations with the management of the alternative investment concerning the following: | |||
• | The current investment strategy; | ||
• | Changes made or future changes to be made to the investment strategy; | ||
• | Emerging issues that may affect the success of the strategy; and | ||
• | The appropriateness of the valuation methodology used regarding the underlying investments. | ||
If there is a decline in the equity method value of an other investment that we do not intend to hold, or if we determine the decline is other than temporary, we write down the cost of the investment and record the charge through earnings as a component of realized losses. | |||
Fair Value of Financial Instruments | Fair Values of Financial Instruments | ||
Assets | |||
The fair values of our investments are generated using various valuation techniques and are placed into the fair value hierarchy considering the following: (i) the highest priority is given to quoted prices in active markets for identical assets (Level 1); (ii) the next highest priority is given to quoted prices in markets that are not active or inputs that are observable either directly or indirectly, including quoted prices for similar assets in markets that are not active and other inputs that can be derived principally from, or corroborated by, observable market data for substantially the full term of the assets (Level 2); and (iii) the lowest priority is given to unobservable inputs supported by little or no market activity and that reflect our assumptions about the exit price, including assumptions that market participants would use in pricing the asset (Level 3). An asset’s classification within the fair value hierarchy is based on the lowest level of significant input to its valuation. Transfers between levels in the fair value hierarchy are recognized at the end of the reporting period. | |||
The techniques used to value our financial assets are as follows: | |||
• | For valuations of a large portion of our equity securities portfolio, as well as U.S. Treasury Notes held in our fixed income securities portfolio, we receive prices from an independent pricing service that are based on observable market transactions. We validate these prices against a second external pricing service, and if established market value comparison thresholds are breached, further analysis is performed, in conjunction with our external investment managers, to determine the price to be used. These securities are classified as Level 1 in the fair value hierarchy. | ||
• | For approximately 99% of our fixed income securities portfolio, we utilize a market approach, using primarily matrix pricing models prepared by external pricing services. Matrix pricing models use mathematical techniques to value debt securities by relying on the securities relationship to other benchmark quoted securities, and not relying exclusively on quoted prices for specific securities, as the specific securities are not always frequently traded. As a matter of policy, we consistently use one pricing service as our primary source and secondary pricing services if prices are not available from the primary pricing service. In conjunction with our external investment portfolio managers, fixed income securities portfolio pricing is reviewed for reasonableness in the following ways: (i) comparing our pricing to other third-party pricing services as well as benchmark indexed pricing; (ii) comparing positions traded directly by the external investment portfolio managers to prices received from the third-party pricing services; (iii) comparing market value fluctuations between months for reasonableness; and (iv) reviewing stale prices. If further analysis is needed, a challenge is sent to the pricing service for review and confirmation of the price. These prices are typically Level 2 in the fair value hierarchy. | ||
• | For the small portion of our fixed income securities portfolio that we cannot price using our primary or secondary service, we typically use non-binding broker quotes. These prices are from various broker/dealers that use bid or ask prices, or benchmarks to indices, in measuring the fair value of a security. For the small portion of non-public equity securities that we hold, we typically receive prices from a third party pricing service or through statements provided by the security issuer. In conjunction with our external investment portfolio managers, these fair value measurements are reviewed for reasonableness. This review typically includes an analysis of price fluctuations between months with variances over established thresholds being analyzed further. These prices are generally classified as Level 3 in the fair value hierarchy, as the inputs cannot be corroborated by observable market data. | ||
• | Short-term investments are carried at cost, which approximates fair value. Given the liquid nature of our short-term investments, we generally validate their fair value by way of active trades within approximately one week of the financial statement close. These securities are classified as Level 1 in the fair value hierarchy. | ||
Liabilities | |||
The techniques used to value our notes payable are as follows: | |||
• | The fair value of the 5.875% Senior Notes due February 9, 2043 is based on quoted market prices. | ||
• | The fair values of the 7.25% Senior Notes due November 15, 2034 and the 6.70% Senior Notes due November 1, 2035 are based on matrix pricing models prepared by external pricing services. | ||
• | The fair value of the 1.25% and recently repaid 2.90% borrowings from the Federal Home Loan Bank of Indianapolis (“FHLBI”) are estimated using a DCF based on a current borrowing rate provided by the FHLBI consistent with the remaining term of the borrowing. | ||
See Note 7. “Fair Value Measurements” for a summary table of the fair value and related carrying amounts of financial instruments. | |||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts | ||
We estimate an allowance for doubtful accounts on our premiums receivable. This allowance is based on historical write-off percentages adjusted for the effects of current and anticipated trends. An account is charged off when we believe it is probable that we will not collect a receivable. In making this determination, we consider information obtained from our efforts to collect amounts due directly and/or through collection agencies. | |||
Share-Based Compensation | Share-Based Compensation | ||
Share-based compensation consists of all share-based payment transactions in which an entity acquires goods or services by issuing (or offering to issue) its shares, share units, share options, or other equity instruments. The cost resulting from all share-based payment transactions are recognized in the Financial Statements based on the fair value of both equity and liability awards. The fair value is measured at grant date for equity awards, whereas the fair value for liability awards are remeasured at each reporting period. Both the fair value of equity and liability awards is recognized over the requisite service period. The requisite service period is typically the lesser of the vesting period or the period of time from the grant date to the date of retirement eligibility. The expense recognized for share-based awards, which, in some cases, contain performance criteria, is based on the number of shares or units expected to be issued at the end of the performance period. | |||
Reinsurance | Reinsurance | ||
Reinsurance recoverables represent estimates of amounts that will be recovered from reinsurers under our various treaties. Generally, amounts recoverable from reinsurers are recognized as assets at the same time and in a manner consistent with the paid and unpaid losses associated with the reinsured policies. We require collateral to secure reinsurance recoverables primarily from our reinsurance carriers that are not authorized, otherwise approved, or certified to do business in our Insurance Subsidiaries’ domiciliary states. This collateral is typically in the form or a letter of credit or cash. An allowance for estimated uncollectible reinsurance is recorded based on an evaluation of balances due from reinsurers and other available information, such as each reinsurers' credit rating from A.M. Best and Company ("A.M. Best") or Standard & Poor's Rating Services ("S&P"). We charge off reinsurance recoverables on paid losses when it becomes probable that we will not collect the balance. | |||
Property and Equipment | Property and Equipment | ||
Property and equipment used in operations, including certain costs incurred to develop or obtain computer software for internal use, are capitalized and carried at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The following estimated useful lives can be considered as general guidelines: | |||
Asset Category | Years | ||
Computer hardware | 3 | ||
Computer software | 3 to 5 | ||
Internally developed software | 5 | ||
Furniture and fixtures | 10 | ||
Buildings and improvements | 5 to 40 | ||
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs | ||
Deferred policy acquisition costs are limited to costs directly related to the successful acquisition of insurance contracts. Costs meeting this definition typically include, among other things, sales commissions paid to our distribution partners, premium taxes, and the portion of employee salaries and benefits directly related to time spent on acquired contracts. These costs are deferred and amortized over the life of the contracts. | |||
Accounting guidance requires a premium deficiency analysis to be performed at the level an entity acquires, services, and measures the profitability of its insurance contracts. We currently perform three premium deficiency analyses for our insurance segments, consistent with our segments of Standard Commercial Lines, Standard Personal Lines, and E&S Lines. This is a change from the insurance segments that we have previously reported. For qualitative information behind the change, see Note 11. "Segment Information" below. | |||
There were no premium deficiencies for any of the reported years, as the sum of the anticipated losses and loss expenses, unamortized acquisition costs, policyholder dividends, and other expenses for Standard Commercial Lines, Standard Personal Lines, and E&S Lines did not exceed the related unearned premium and anticipated investment income. The investment yields assumed in the premium deficiency assessment for each reporting period, which are based on our actual average investment yield before tax as of the September 30 calculation date were 3.0% for both 2014 and 2013, and 3.1% for 2012. Deferred policy acquisition costs amortized to expense were $364.3 million for 2014, $331.8 million for 2013, and $298.5 million for 2012. | |||
Goodwill | Goodwill | ||
Goodwill results from business acquisitions where the cost of assets and liabilities acquired exceeds the fair value of those assets and liabilities. A quantitative goodwill impairment analysis is performed if a quarterly qualitative analysis indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Goodwill is allocated to the reporting units for purposes of these analyses. | |||
Reserves for Losses and Loss Expenses | Reserves for Losses and Loss Expenses | ||
Reserves for losses and loss expenses are comprised of both case reserves and reserves for claims incurred but not yet reported ("IBNR"). Case reserves result from claims that have been reported to one or more of our ten insurance subsidiaries, which are collectively referred to as the "Insurance Subsidiaries," and are estimated for the amount of ultimate payment. IBNR reserves are established based on generally accepted actuarial techniques. Such techniques assume that past experience, adjusted for the effects of current developments and anticipated trends, are an appropriate basis for predicting future events. In applying generally accepted actuarial techniques, we consider a range of possible loss and loss expense reserves in establishing IBNR. | |||
The internal assumptions we consider in the estimation of the IBNR amounts for both asbestos and environmental and non-environmental reserves at our reporting dates are based on: (i) an analysis of both paid and incurred loss and loss expense development trends; (ii) an analysis of both paid and incurred claim count development trends; (iii) the exposure estimates for reported claims; (iv) recent development on exposure estimates with respect to individual large claims and the aggregate of all claims; (v) the rate at which new asbestos and environmental claims are being reported; and (vi) patterns of events observed by claims personnel or reported to them by defense counsel. External factors we monitor for the estimation of IBNR for both asbestos and environmental and non-environmental IBNR reserves include: (i) legislative enactments; (ii) judicial decisions; (iii) legal developments in the determination of liability and the imposition of damages; and (iv) trends in general economic conditions, including the effects of inflation. Adjustments to IBNR are made periodically to take into account changes in the volume of business written, claims frequency and severity, the mix of business, claims processing, and other items that management expects to affect our reserves for losses and loss expenses over time. | |||
By using both individual estimates of reported claims and generally accepted actuarial reserving techniques, we estimate the ultimate net liability for losses and loss expenses. While the ultimate actual liability may be higher or lower than reserves established, we believe the reserves make a reasonable provision, in the aggregate, for all unpaid losses and loss expenses incurred. Any changes in the liability estimate may be material to the results of operations in future periods. We do not discount to present value that portion of our losses and loss expense reserves expected to be paid in future periods; however, our loss and loss expense reserves include anticipated recoveries for salvage and subrogation claims. | |||
Overall reserves are reviewed for adequacy on a periodic basis. As part of the periodic review, we consider the range of possible loss and loss expense reserves, determined at the beginning of the year. This process assumes that past experience, adjusted for the effects of current developments and anticipated trends, is an appropriate basis for predicting future events. However, there is no precise method for subsequently evaluating the impact of any specific factor on the adequacy of reserves because the eventual deficiency or redundancy is affected by many factors. Based upon such reviews, we believe that the estimated reserves for losses and loss expenses make a reasonable provision to cover the ultimate cost of claims. However, the ultimate actual liability may be higher or lower than the reserve established. The changes in these estimates, resulting from the continuous review process and the differences between estimates and ultimate payments, are reflected in the consolidated statements of income for the period in which such estimates are changed and may be material to the results of operations in future periods. | |||
Revenue Recognition | Revenue Recognition | ||
The Insurance Subsidiaries' net premiums written include direct insurance policy writings, plus reinsurance assumed and estimates of premiums earned but unbilled on the workers compensation and general liability lines of insurance, less reinsurance ceded. The estimated premium on the workers compensation and general liability lines is referred to as audit premium. We estimate this premium, as it is anticipated to be either billed or returned on policies subsequent to expiration based on exposure levels (i.e. payroll or sales). Audit premium is based on historical trends adjusted for the uncertainty of future economic conditions. Economic instability could ultimately impact our estimates and assumptions, and changes in our estimate may be material to the results of operations in future periods. Premiums written are recognized as revenue over the period that coverage is provided using the semi-monthly pro-rata method. Unearned premiums and prepaid reinsurance premiums represent that portion of premiums written that are applicable to the unexpired terms of policies in force. | |||
Dividends to Policyholders | Dividends to Policyholders | ||
We establish reserves for dividends to policyholders on certain policies, most significantly workers compensation policies. These dividends are based on the policyholders' loss experience. The dividend reserves are established based on past experience, adjusted for the effects of current developments and anticipated trends. The expense for these dividends is recognized over a period that begins at policy inception and ends with the payment of the dividend. We do not issue policies that entitle the policyholder to participate in the earnings or surplus of our Insurance Subsidiaries. | |||
Federal Income Tax | Federal Income Tax | ||
We use the asset and liability method of accounting for income taxes. Current federal income taxes are recognized for the estimated taxes payable or refundable on tax returns for the current year. Deferred federal income taxes arise from the recognition of temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities. We consider all evidence, both positive and negative, with respect to our federal tax loss carryback availability, expected levels of pre-tax financial statement income, and federal taxable income, when evaluating whether the temporary differences will be realized. In projecting future taxable income, we begin with budgeted pre-tax income adjusted for estimated non-taxable items. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates we use to manage our businesses. A valuation allowance is established when it is more likely than not that some portion of the deferred tax asset will not be realized. A liability for uncertain tax positions is recorded when it is more likely than not that a tax position will not be sustained upon examination by taxing authorities. The effect of a change in tax rates is recognized in the period of enactment. | |||
Leases | Leases | ||
We have various operating leases for office space and equipment. Rental expense for such leases is recorded on a straight-line basis over the lease term. If a lease has a fixed and determinable escalation clause, or periods of rent holidays, the difference between rental expense and rent paid is included in "Other liabilities" as deferred rent in the Consolidated Balance Sheets. | |||
In addition, we have various capital leases for computer hardware and software. These leases are accounted for as an acquisition of an asset and an incurrence of an obligation. Depreciation is calculated using the straight-line method over the shorter of the estimated useful life of the asset or the lease term. | |||
Pension | Pension | ||
Our pension and post-retirement life benefit obligations and related costs are calculated using actuarial methods, within the framework of GAAP. Our pension benefit obligation is determined as the actuarial present value of the vested benefits to which the employee is currently entitled, but based on the employee's expected date of separation or retirement. Two key assumptions, the discount rate and the expected return on plan assets, are important elements of expense and/or liability measurement. We evaluate these key assumptions annually unless facts indicate that a more frequent review is required. The discount rate enables us to state expected future cash flows at their present value on the measurement date. The purpose of the discount rate is to determine the interest rates inherent in the price at which pension benefits could be effectively settled. Our discount rate selection is based on high-quality, long-term corporate bonds. To determine the expected long-term rate of return on the plan assets, we consider the current and expected asset allocation, as well as historical and expected returns on each plan asset class. Other assumptions involve demographic factors such as retirement age, mortality, turnover, and rate of compensation increases. In the fourth quarter of 2014, we updated our mortality assumption to reflect RP-2014, which is the table that was most recently adopted by the U.S. Society of Actuaries. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Estimated Useful Life for Property and Equipment | |||
Asset Category | Years | ||
Computer hardware | 3 | ||
Computer software | 3 to 5 | ||
Internally developed software | 5 | ||
Furniture and fixtures | 10 | ||
Buildings and improvements | 5 to 40 |
Statements_of_Cash_Flow_Tables
Statements of Cash Flow (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||
Schedule of Cash Flow, Supplemental Disclosures | |||||||||||
($ in thousands) | 2014 | 2013 | 2012 | ||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | 22,221 | 21,465 | 18,779 | |||||||
Federal income tax | 22,699 | 20,000 | 6,421 | ||||||||
Non-cash items: | |||||||||||
Tax-free exchange of fixed income securities, AFS | $ | 20,781 | 37,965 | 18,942 | |||||||
Tax-free exchange of fixed income securities, HTM | 4,289 | 15,820 | 25,168 | ||||||||
Stock split related to equity securities, AFS | 334 | — | — | ||||||||
Assets acquired under capital lease arrangements | 5,642 | 2,583 | 2,091 | ||||||||
Non-cash purchase of property and equipment | 338 | 20 | — | ||||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Investment [Line Items] | ||||||||||||||||||||
Schedule of Unrealized Gains On Investments | ||||||||||||||||||||
($ in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||
AFS securities: | ||||||||||||||||||||
Fixed income securities | $ | 90,336 | 39,559 | 165,330 | ||||||||||||||||
Equity securities | 32,389 | 37,421 | 18,941 | |||||||||||||||||
Total AFS securities | 122,725 | 76,980 | 184,271 | |||||||||||||||||
HTM securities: | ||||||||||||||||||||
Fixed income securities | 958 | 2,257 | 3,926 | |||||||||||||||||
Total HTM securities | 958 | 2,257 | 3,926 | |||||||||||||||||
Total net unrealized gains | 123,683 | 79,237 | 188,197 | |||||||||||||||||
Deferred income tax expense | (43,289 | ) | (27,733 | ) | (65,869 | ) | ||||||||||||||
Net unrealized gains, net of deferred income tax | 80,394 | 51,504 | 122,328 | |||||||||||||||||
Increase (decrease) in net unrealized gains in OCI, net of deferred income tax | $ | 28,890 | (70,824 | ) | 25,080 | |||||||||||||||
Schedule of Held-to-maturity Securities | ||||||||||||||||||||
December 31, 2014 | Net | |||||||||||||||||||
Unrealized | Unrecognized | Unrecognized | ||||||||||||||||||
Amortized | Gains | Carrying | Holding | Holding | Fair | |||||||||||||||
($ in thousands) | Cost | (Losses) | Value | Gains | Losses | Value | ||||||||||||||
Foreign government | $ | 5,292 | 47 | 5,339 | 55 | — | 5,394 | |||||||||||||
Obligations of state and political subdivisions | 285,301 | 2,071 | 287,372 | 11,760 | — | 299,132 | ||||||||||||||
Corporate securities | 18,899 | (273 | ) | 18,626 | 2,796 | — | 21,422 | |||||||||||||
ABS | 2,818 | (455 | ) | 2,363 | 460 | — | 2,823 | |||||||||||||
CMBS | 4,869 | (432 | ) | 4,437 | 753 | — | 5,190 | |||||||||||||
Total HTM fixed income securities | $ | 317,179 | 958 | 318,137 | 15,824 | — | 333,961 | |||||||||||||
December 31, 2013 | Net | |||||||||||||||||||
Unrealized | Unrecognized | Unrecognized | ||||||||||||||||||
Amortized | Gains | Carrying | Holding | Holding | Fair | |||||||||||||||
($ in thousands) | Cost | (Losses) | Value | Gains | Losses | Value | ||||||||||||||
Foreign government | $ | 5,292 | 131 | 5,423 | 168 | — | 5,591 | |||||||||||||
Obligations of state and political subdivisions | 348,109 | 4,013 | 352,122 | 17,634 | — | 369,756 | ||||||||||||||
Corporate securities | 28,174 | (346 | ) | 27,828 | 2,446 | — | 30,274 | |||||||||||||
ABS | 3,413 | (655 | ) | 2,758 | 657 | — | 3,415 | |||||||||||||
CMBS | 5,634 | (886 | ) | 4,748 | 3,197 | — | 7,945 | |||||||||||||
Total HTM fixed income securities | $ | 390,622 | 2,257 | 392,879 | 24,102 | — | 416,981 | |||||||||||||
Schedule of Available For Sale Securities | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Cost/ | ||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
($ in thousands) | Cost | Gains | Losses | Value | ||||||||||||||||
U.S. government and government agencies | $ | 116,666 | 7,592 | (128 | ) | 124,130 | ||||||||||||||
Foreign government | 27,035 | 796 | — | 27,831 | ||||||||||||||||
Obligations of states and political subdivisions | 1,208,776 | 38,217 | (729 | ) | 1,246,264 | |||||||||||||||
Corporate securities | 1,763,427 | 42,188 | (5,809 | ) | 1,799,806 | |||||||||||||||
ABS | 176,837 | 760 | (373 | ) | 177,224 | |||||||||||||||
CMBS1 | 177,932 | 2,438 | (777 | ) | 179,593 | |||||||||||||||
RMBS2 | 505,113 | 8,587 | (2,426 | ) | 511,274 | |||||||||||||||
AFS fixed income securities | 3,975,786 | 100,578 | (10,242 | ) | 4,066,122 | |||||||||||||||
AFS equity securities | 159,011 | 32,721 | (332 | ) | 191,400 | |||||||||||||||
Total AFS securities | $ | 4,134,797 | 133,299 | (10,574 | ) | 4,257,522 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Cost/ | ||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
($ in thousands) | Cost | Gains | Losses | Value | ||||||||||||||||
U.S. government and government agencies | $ | 163,218 | 10,661 | (504 | ) | 173,375 | ||||||||||||||
Foreign government | 29,781 | 906 | (72 | ) | 30,615 | |||||||||||||||
Obligations of states and political subdivisions | 946,455 | 25,194 | (20,025 | ) | 951,624 | |||||||||||||||
Corporate securities | 1,707,928 | 44,004 | (17,049 | ) | 1,734,883 | |||||||||||||||
ABS | 140,430 | 934 | (468 | ) | 140,896 | |||||||||||||||
CMBS1 | 172,288 | 2,462 | (3,466 | ) | 171,284 | |||||||||||||||
RMBS2 | 515,877 | 7,273 | (10,291 | ) | 512,859 | |||||||||||||||
AFS fixed income securities | 3,675,977 | 91,434 | (51,875 | ) | 3,715,536 | |||||||||||||||
AFS equity securities | 155,350 | 37,517 | (96 | ) | 192,771 | |||||||||||||||
Total AFS securities | $ | 3,831,327 | 128,951 | (51,971 | ) | 3,908,307 | ||||||||||||||
1 CMBS includes government guaranteed agency securities with a fair value of $13.2 million at December 31, 2014 and $30.0 million at December 31, 2013. | ||||||||||||||||||||
2 RMBS includes government guaranteed agency securities with a fair value of $32.4 million at December 31, 2014 and $55.2 million at December 31, 2013. | ||||||||||||||||||||
Schedule of Fair Value and Gross Pre-Tax Net Unrealized/Unrecognized Loss of Securities by Length of Time | ||||||||||||||||||||
31-Dec-14 | Less than 12 months | 12 months or longer | ||||||||||||||||||
($ in thousands) | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||
Value | Losses1 | Value | Losses1 | |||||||||||||||||
AFS securities: | ||||||||||||||||||||
U.S. government and government agencies | $ | 7,567 | (13 | ) | 10,866 | (115 | ) | |||||||||||||
Obligations of states and political subdivisions | 47,510 | (105 | ) | 64,018 | (624 | ) | ||||||||||||||
Corporate securities | 276,648 | (1,734 | ) | 153,613 | (4,075 | ) | ||||||||||||||
ABS | 113,202 | (178 | ) | 15,618 | (195 | ) | ||||||||||||||
CMBS | 12,799 | (34 | ) | 59,219 | (743 | ) | ||||||||||||||
RMBS | 3,399 | (8 | ) | 138,724 | (2,418 | ) | ||||||||||||||
Total fixed income securities | 461,125 | (2,072 | ) | 442,058 | (8,170 | ) | ||||||||||||||
Equity securities | 5,262 | (336 | ) | — | — | |||||||||||||||
Subtotal | $ | 466,387 | (2,408 | ) | 442,058 | (8,170 | ) | |||||||||||||
Less than 12 months | 12 months or longer | |||||||||||||||||||
($ in thousands) | Fair | Unrealized | Unrecognized | Fair | Unrealized | Unrecognized | ||||||||||||||
Value | Losses1 | Gains2 | Value | Losses1 | Gains2 | |||||||||||||||
HTM securities: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 196 | (3 | ) | 1 | — | — | — | ||||||||||||
ABS | — | — | — | 2,235 | (455 | ) | 439 | |||||||||||||
Subtotal | $ | 196 | (3 | ) | 1 | 2,235 | (455 | ) | 439 | |||||||||||
Total AFS and HTM | $ | 466,583 | (2,411 | ) | 1 | 444,293 | (8,625 | ) | 439 | |||||||||||
31-Dec-13 | Less than 12 months | 12 months or longer | ||||||||||||||||||
($ in thousands) | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||
Value | Losses1 | Value | Losses1 | |||||||||||||||||
AFS securities: | ||||||||||||||||||||
U.S. government and government agencies | $ | 16,955 | (500 | ) | 507 | (4 | ) | |||||||||||||
Foreign government | 2,029 | (30 | ) | 2,955 | (42 | ) | ||||||||||||||
Obligations of states and political subdivisions | 442,531 | (19,120 | ) | 13,530 | (905 | ) | ||||||||||||||
Corporate securities | 511,100 | (15,911 | ) | 14,771 | (1,138 | ) | ||||||||||||||
ABS | 68,725 | (468 | ) | — | — | |||||||||||||||
CMBS | 100,396 | (2,950 | ) | 6,298 | (516 | ) | ||||||||||||||
RMBS | 268,943 | (10,031 | ) | 2,670 | (260 | ) | ||||||||||||||
Total fixed income securities | 1,410,679 | (49,010 | ) | 40,731 | (2,865 | ) | ||||||||||||||
Equity securities | 1,124 | (96 | ) | — | — | |||||||||||||||
Subtotal | $ | 1,411,803 | (49,106 | ) | 40,731 | (2,865 | ) | |||||||||||||
Less than 12 months | 12 months or longer | |||||||||||||||||||
($ in thousands) | Fair | Unrealized | Unrecognized | Fair | Unrealized | Unrecognized | ||||||||||||||
Value | Losses1 | Gains2 | Value | Losses1 | Gains2 | |||||||||||||||
HTM securities: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 65 | (5 | ) | 5 | 441 | (20 | ) | 14 | |||||||||||
ABS | — | — | — | 2,490 | (655 | ) | 621 | |||||||||||||
Subtotal | $ | 65 | (5 | ) | 5 | 2,931 | (675 | ) | 635 | |||||||||||
Total AFS and HTM | $ | 1,411,868 | (49,111 | ) | 5 | 43,662 | (3,540 | ) | 635 | |||||||||||
1 Gross unrealized losses include non-OTTI unrealized amounts and OTTI losses recognized in AOCI. In addition, this column includes remaining unrealized gain or loss amounts on securities that were transferred to an HTM designation in the first quarter of 2009 for those securities that are in a net unrealized/unrecognized loss position. | ||||||||||||||||||||
2 Unrecognized holding gains represent fair value fluctuations from the later of: (i) the date a security is designated as HTM; or (ii) the date that an OTTI charge is recognized on an HTM security. | ||||||||||||||||||||
Schedule of the Number of Securities in an Unrealized Unrecognized Loss Position | ||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||
Number of | % of | Unrealized/Unrecognized | Number of | % of | Unrealized/ | |||||||||||||||
Issues | Market/Book | Loss | Issues | Market/Book | Unrecognized | |||||||||||||||
Loss | ||||||||||||||||||||
350 | 80% - 99% | $ | 10,596 | 556 | 80% - 99% | $ | 51,835 | |||||||||||||
— | 60% - 79% | — | 1 | 60% - 79% | 176 | |||||||||||||||
— | 40% - 59% | — | — | 40% - 59% | — | |||||||||||||||
— | 20% - 39% | — | — | 20% - 39% | — | |||||||||||||||
— | 0% - 19% | — | — | 0% - 19% | — | |||||||||||||||
$ | 10,596 | $ | 52,011 | |||||||||||||||||
Schedule of Other Investment Portfolio by Strategy and the Remaining Commitment Amount Associated With Each Strategy | ||||||||||||||||||||
Other Investments | Carrying Value | 2014 | ||||||||||||||||||
December 31, | December 31, | Remaining | ||||||||||||||||||
($ in thousands) | 2014 | 2013 | Commitment | |||||||||||||||||
Alternative Investments | ||||||||||||||||||||
Secondary private equity | $ | 21,807 | 25,618 | 7,001 | ||||||||||||||||
Private equity | 20,126 | 20,192 | 8,890 | |||||||||||||||||
Energy/power generation | 14,445 | 17,361 | 21,905 | |||||||||||||||||
Real estate | 11,452 | 11,698 | 10,051 | |||||||||||||||||
Mezzanine financing | 9,853 | 12,738 | 13,541 | |||||||||||||||||
Distressed debt | 8,679 | 11,579 | 2,982 | |||||||||||||||||
Venture capital | 6,606 | 7,025 | 350 | |||||||||||||||||
Total alternative investments | 92,968 | 106,211 | 64,720 | |||||||||||||||||
Other securities | 6,235 | 1,664 | 3,711 | |||||||||||||||||
Total other investments | $ | 99,203 | 107,875 | 68,431 | ||||||||||||||||
Schedule of Aggregated Summarized Balance Sheet Financial Information For Partnerhips In Our Alternative Investment Portfolio | ||||||||||||||||||||
Balance Sheet Information | ||||||||||||||||||||
September 30, | ||||||||||||||||||||
($ in millions) | 2014 | 2013 | ||||||||||||||||||
Investments | $ | 10,096 | 11,020 | |||||||||||||||||
Total assets | 10,695 | 11,727 | ||||||||||||||||||
Total liabilities | 545 | 573 | ||||||||||||||||||
Partners’ capital | 10,150 | 11,154 | ||||||||||||||||||
Schedule of Aggregated Summarized Income Statement Financial Information For Partnerhips In Our Alternative Investment Portfolio | ||||||||||||||||||||
Income Statement Information | ||||||||||||||||||||
12 months ended September 30, | ||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Net investment income | $ | 226 | 406 | 226 | ||||||||||||||||
Realized gains | 581 | 913 | 1,015 | |||||||||||||||||
Net change in unrealized appreciation (depreciation) | 1,098 | 382 | (100 | ) | ||||||||||||||||
Net income | $ | 1,905 | 1,701 | 1,141 | ||||||||||||||||
Insurance Subsidiaries' other investments income | 13.6 | 15.2 | 9 | |||||||||||||||||
Schedule Of Securities Pledged As Collateral | The following table summarizes the market value of these securities at December 31, 2014: | |||||||||||||||||||
($ in millions) | FHLBI Collateral | Reinsurance Collateral | State and Regulatory Deposits | Total | ||||||||||||||||
U.S. government and government agencies | $ | 7.7 | — | 25.3 | 33 | |||||||||||||||
Obligations of states and political subdivisions | — | 5.7 | — | 5.7 | ||||||||||||||||
Corporate securities | — | 5.3 | — | 5.3 | ||||||||||||||||
ABS | — | 1.1 | — | 1.1 | ||||||||||||||||
CMBS | 2.2 | — | — | 2.2 | ||||||||||||||||
RMBS | 50.8 | 2.3 | — | 53.1 | ||||||||||||||||
Total pledged as collateral | $ | 60.7 | 14.4 | 25.3 | 100.4 | |||||||||||||||
Schedule of Components of Net Investment Income Earned | ||||||||||||||||||||
($ in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||
Fixed income securities | $ | 126,489 | 121,582 | 124,687 | ||||||||||||||||
Equity securities, dividend income | 7,449 | 6,140 | 6,215 | |||||||||||||||||
Short-term investments | 66 | 117 | 151 | |||||||||||||||||
Other investments | 13,580 | 15,208 | 8,996 | |||||||||||||||||
Investment expenses | (8,876 | ) | (8,404 | ) | (8,172 | ) | ||||||||||||||
Net investment income earned | $ | 138,708 | 134,643 | 131,877 | ||||||||||||||||
Schedule of OTTI by Asset Type | ||||||||||||||||||||
2014 | Recognized in | |||||||||||||||||||
($ in thousands) | Gross | Included in OCI | Earnings | |||||||||||||||||
AFS fixed income securities: | ||||||||||||||||||||
RMBS | $ | 7 | — | 7 | ||||||||||||||||
Total AFS fixed income securities | 7 | — | 7 | |||||||||||||||||
Equity securities | 10,517 | — | 10,517 | |||||||||||||||||
Total AFS securities | 10,524 | — | 10,524 | |||||||||||||||||
Other investments | 580 | — | 580 | |||||||||||||||||
OTTI losses | $ | 11,104 | — | 11,104 | ||||||||||||||||
2013 | Recognized in | |||||||||||||||||||
($ in thousands) | Gross | Included in OCI | Earnings | |||||||||||||||||
HTM fixed income securities: | ||||||||||||||||||||
ABS | $ | (44 | ) | (47 | ) | 3 | ||||||||||||||
Total HTM fixed income securities | (44 | ) | (47 | ) | 3 | |||||||||||||||
AFS fixed income securities: | ||||||||||||||||||||
RMBS | 16 | (30 | ) | 46 | ||||||||||||||||
Total AFS fixed income securities | 16 | (30 | ) | 46 | ||||||||||||||||
Equity securities | 3,747 | — | 3,747 | |||||||||||||||||
Total AFS securities | 3,763 | (30 | ) | 3,793 | ||||||||||||||||
Other investments | 1,847 | — | 1,847 | |||||||||||||||||
OTTI losses | $ | 5,566 | (77 | ) | 5,643 | |||||||||||||||
2012 | Recognized in | |||||||||||||||||||
($ in thousands) | Gross | Included in OCI | Earnings | |||||||||||||||||
AFS fixed income securities: | ||||||||||||||||||||
ABS | $ | 98 | — | 98 | ||||||||||||||||
CMBS | (1,525 | ) | (2,335 | ) | 810 | |||||||||||||||
RMBS | (35 | ) | (218 | ) | 183 | |||||||||||||||
Total AFS fixed income securities | (1,462 | ) | (2,553 | ) | 1,091 | |||||||||||||||
Equity securities | 3,173 | — | 3,173 | |||||||||||||||||
OTTI losses | $ | 1,711 | (2,553 | ) | 4,264 | |||||||||||||||
Schedule of Gross Credit Loss Impairments on Fixed Maturity Securities for Which a Portion of the OTTI Charge Was Recognized In OCI | ||||||||||||||||||||
($ in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||
Balance, beginning of year | $ | 7,488 | 7,477 | 6,602 | ||||||||||||||||
Addition for the amount related to credit loss for which an OTTI was not previously recognized | — | — | — | |||||||||||||||||
Reductions for securities sold during the period | (2,044 | ) | — | — | ||||||||||||||||
Reductions for securities for which the amount previously recognized in OCI was recognized in earnings because of intention or potential requirement to sell before recovery of amortized cost | — | — | — | |||||||||||||||||
Reductions for securities for which the entire amount previously recognized in OCI was recognized in earnings due to a decrease in cash flows expected | — | — | — | |||||||||||||||||
Additional increases to the amount related to credit loss for which an OTTI was previously recognized | — | 11 | 875 | |||||||||||||||||
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | — | — | — | |||||||||||||||||
Balance, end of year | $ | 5,444 | 7,488 | 7,477 | ||||||||||||||||
Schedule of Components of Net Realized Gains Excluding OTTI Charges | ||||||||||||||||||||
($ in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||
HTM fixed income securities | ||||||||||||||||||||
Gains | $ | 2 | 195 | 194 | ||||||||||||||||
Losses | (20 | ) | (95 | ) | (217 | ) | ||||||||||||||
AFS fixed income securities | ||||||||||||||||||||
Gains | 1,945 | 3,340 | 4,452 | |||||||||||||||||
Losses | (392 | ) | (373 | ) | (472 | ) | ||||||||||||||
AFS equity securities | ||||||||||||||||||||
Gains | 36,871 | 24,776 | 10,901 | |||||||||||||||||
Losses | (704 | ) | (408 | ) | (1,205 | ) | ||||||||||||||
Short-term investments | ||||||||||||||||||||
Losses | — | — | (2 | ) | ||||||||||||||||
Other investments | ||||||||||||||||||||
Gains | 1 | — | 1 | |||||||||||||||||
Losses | — | (1,060 | ) | (400 | ) | |||||||||||||||
Total other net realized investment gains | $ | 37,703 | 26,375 | 13,252 | ||||||||||||||||
Held-to-maturity Securities [Member] | ||||||||||||||||||||
Investment [Line Items] | ||||||||||||||||||||
Schedule Of Fixed Maturity Securities By Contractual Maturities | ||||||||||||||||||||
($ in thousands) | Carrying Value | Fair Value | ||||||||||||||||||
Due in one year or less | $ | 113,266 | 114,795 | |||||||||||||||||
Due after one year through five years | 193,983 | 206,188 | ||||||||||||||||||
Due after five years through 10 years | 10,888 | 12,978 | ||||||||||||||||||
Total HTM fixed income securities | $ | 318,137 | $ | 333,961 | ||||||||||||||||
AFS Fixed Income Securities [Member] | ||||||||||||||||||||
Investment [Line Items] | ||||||||||||||||||||
Schedule Of Fixed Maturity Securities By Contractual Maturities | ||||||||||||||||||||
($ in thousands) | Fair Value | |||||||||||||||||||
Due in one year or less | $ | 435,190 | ||||||||||||||||||
Due after one year through five years | 1,961,179 | |||||||||||||||||||
Due after five years through 10 years | 1,593,287 | |||||||||||||||||||
Due after 10 years | 76,466 | |||||||||||||||||||
Total AFS fixed income securities | $ | 4,066,122 | ||||||||||||||||||
Stockholders_Equity_and_Compre1
Stockholders' Equity and Comprehensive Income (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||||||||||||||||||
Schedule of Parent's Common Stock | ||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||
Shares Purchased in Connection with Restricted Stock Vestings and Stock Option Exercises | Cost of Shares Purchased in Connection with Restricted Stock Vestings and Stock Option | |||||||||||||||||||
Period | Exercises | |||||||||||||||||||
2014 | 154,559 | $ | 3,563 | |||||||||||||||||
2013 | 167,846 | 3,716 | ||||||||||||||||||
2012 | 194,575 | 3,495 | ||||||||||||||||||
Schedule of Components of Comprehensive Income-Gross and Net of Tax | ||||||||||||||||||||
2014 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 197,131 | 55,304 | 141,827 | ||||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized gains on investment securities: | ||||||||||||||||||||
Unrealized holding gains during the year | 72,940 | 25,529 | 47,411 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | (1,299 | ) | (455 | ) | (844 | ) | ||||||||||||||
Non-credit OTTI | 1,669 | 584 | 1,085 | |||||||||||||||||
Realized gains on AFS securities | (28,864 | ) | (10,102 | ) | (18,762 | ) | ||||||||||||||
Net unrealized gains | 44,446 | 15,556 | 28,890 | |||||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Net actuarial loss | (54,136 | ) | (18,947 | ) | (35,189 | ) | ||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 1,902 | 666 | 1,236 | |||||||||||||||||
Defined benefit pension and post-retirement plans | (52,234 | ) | (18,281 | ) | (33,953 | ) | ||||||||||||||
Other comprehensive loss | (7,788 | ) | (2,725 | ) | (5,063 | ) | ||||||||||||||
Comprehensive income | $ | 189,343 | 52,579 | 136,764 | ||||||||||||||||
2013 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 142,267 | 35,849 | 106,418 | ||||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized losses on investment securities: | ||||||||||||||||||||
Unrealized holding losses during the period | (83,934 | ) | (29,377 | ) | (54,557 | ) | ||||||||||||||
Non-credit OTTI recognized in OCI | 77 | 27 | 50 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | (1,577 | ) | (552 | ) | (1,025 | ) | ||||||||||||||
Non-credit OTTI | 14 | 5 | 9 | |||||||||||||||||
Realized gains on AFS securities | (23,540 | ) | (8,239 | ) | (15,301 | ) | ||||||||||||||
Net unrealized losses | (108,960 | ) | (38,136 | ) | (70,824 | ) | ||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Net actuarial gain | 59,654 | 20,879 | 38,775 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 4,374 | 1,531 | 2,843 | |||||||||||||||||
Prior service cost | 10 | 4 | 6 | |||||||||||||||||
Curtailment expense | 16 | 5 | 11 | |||||||||||||||||
Defined benefit pension and post-retirement plans | 64,054 | 22,419 | 41,635 | |||||||||||||||||
Other comprehensive loss | (44,906 | ) | (15,717 | ) | (29,189 | ) | ||||||||||||||
Comprehensive income | $ | 97,361 | 20,132 | 77,229 | ||||||||||||||||
2012 | ||||||||||||||||||||
($ in thousands) | Gross | Tax | Net | |||||||||||||||||
Net income | $ | 37,635 | (328 | ) | 37,963 | |||||||||||||||
Components of OCI: | ||||||||||||||||||||
Unrealized gains on investment securities: | ||||||||||||||||||||
Unrealized holding gains during the period | 47,594 | 16,657 | 30,937 | |||||||||||||||||
Non-credit OTTI recognized in OCI | 2,554 | 894 | 1,660 | |||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
HTM securities | (2,432 | ) | (851 | ) | (1,581 | ) | ||||||||||||||
Non-credit OTTI | 280 | 98 | 182 | |||||||||||||||||
Realized gains on AFS securities | (9,412 | ) | (3,294 | ) | (6,118 | ) | ||||||||||||||
Net unrealized gains | 38,584 | 13,504 | 25,080 | |||||||||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
Net actuarial loss | (26,566 | ) | (9,298 | ) | (17,268 | ) | ||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||||||
Net actuarial loss | 5,903 | 2,066 | 3,837 | |||||||||||||||||
Prior service cost | 150 | 53 | 97 | |||||||||||||||||
Defined benefit pension and post-retirement plans | (20,513 | ) | (7,179 | ) | (13,334 | ) | ||||||||||||||
Other comprehensive income | 18,071 | 6,325 | 11,746 | |||||||||||||||||
Comprehensive income | $ | 55,706 | 5,997 | 49,709 | ||||||||||||||||
Schedule of Components of Accumulated Other Comprehensive Income | ||||||||||||||||||||
Net Unrealized (Loss) Gain on Investment Securities | ||||||||||||||||||||
($ in thousands) | OTTI Related | HTM Related | All Other | Investments Subtotal | Defined Benefit Pension and Post- retirement Plans | Total AOCI | ||||||||||||||
Balance, December 31, 2012 | $ | (1,658 | ) | 2,594 | 121,391 | 122,327 | (68,287 | ) | 54,040 | |||||||||||
OCI before reclassifications | 50 | (102 | ) | (54,455 | ) | (54,507 | ) | 38,775 | (15,732 | ) | ||||||||||
Amounts reclassified from AOCI | 9 | (1,025 | ) | (15,301 | ) | (16,317 | ) | 2,860 | (13,457 | ) | ||||||||||
Net current period OCI | 59 | (1,127 | ) | (69,756 | ) | (70,824 | ) | 41,635 | (29,189 | ) | ||||||||||
Balance, December 31, 2013 | (1,599 | ) | 1,467 | 51,635 | 51,503 | (26,652 | ) | 24,851 | ||||||||||||
OCI before reclassifications | — | — | 47,411 | 47,411 | (35,189 | ) | 12,222 | |||||||||||||
Amounts reclassified from AOCI | 1,085 | (844 | ) | (18,762 | ) | (18,521 | ) | 1,236 | (17,285 | ) | ||||||||||
Net current period OCI | 1,085 | (844 | ) | 28,649 | 28,890 | (33,953 | ) | (5,063 | ) | |||||||||||
Balance, December 31, 2014 | $ | (514 | ) | 623 | 80,284 | 80,393 | (60,605 | ) | 19,788 | |||||||||||
Schedule of Reclassification out of Accumulated Other Comprehensive Income | ||||||||||||||||||||
Affected Line Item in the Consolidated Statement of Income | ||||||||||||||||||||
($ in thousands) | Year ended December 31, 2014 | Year ended | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
OTTI related | ||||||||||||||||||||
Amortization of non-credit OTTI losses on HTM securities | $ | — | 14 | Net investment income earned | ||||||||||||||||
Non-credit OTTI on disposed securities | 1,669 | — | Net realized gains | |||||||||||||||||
1,669 | 14 | Income from continuing operations, before federal income tax | ||||||||||||||||||
(584 | ) | (5 | ) | Total federal income tax expense (benefit) | ||||||||||||||||
1,085 | 9 | Net income | ||||||||||||||||||
HTM related | ||||||||||||||||||||
Unrealized gains and losses on HTM disposals | 157 | 390 | Net realized investment gains | |||||||||||||||||
Amortization of net unrealized gains on HTM securities | (1,456 | ) | (1,967 | ) | Net investment income earned | |||||||||||||||
(1,299 | ) | (1,577 | ) | Income from continuing operations, before federal income tax | ||||||||||||||||
455 | 552 | Total federal income tax expense (benefit) | ||||||||||||||||||
(844 | ) | (1,025 | ) | Net income | ||||||||||||||||
Realized gains and losses on AFS | ||||||||||||||||||||
Realized gains and losses on AFS disposals | (28,864 | ) | (23,540 | ) | Net realized investment gains | |||||||||||||||
(28,864 | ) | (23,540 | ) | Income from continuing operations, before federal income tax | ||||||||||||||||
10,102 | 8,239 | Total federal income tax expense (benefit) | ||||||||||||||||||
(18,762 | ) | (15,301 | ) | Net income | ||||||||||||||||
Defined benefit pension and post-retirement life plans | ||||||||||||||||||||
Net actuarial loss | 331 | 909 | Losses and loss expenses incurred | |||||||||||||||||
1,571 | 3,465 | Policy acquisition costs | ||||||||||||||||||
1,902 | 4,374 | Income from continuing operations, before federal income tax | ||||||||||||||||||
Prior service cost | — | 7 | Losses and loss expenses incurred | |||||||||||||||||
— | 3 | Policy acquisition costs | ||||||||||||||||||
— | 10 | Income from continuing operations, before federal income tax | ||||||||||||||||||
Curtailment expense | — | 16 | Policy acquisition costs | |||||||||||||||||
— | 16 | Income from continuing operations, before federal income tax | ||||||||||||||||||
Total defined benefit pension and post-retirement life | 1,902 | 4,400 | Income from continuing operations, before federal income tax | |||||||||||||||||
(666 | ) | (1,540 | ) | Total federal income tax expense (benefit) | ||||||||||||||||
1,236 | 2,860 | Net income | ||||||||||||||||||
Total reclassifications for the period | $ | (17,285 | ) | (13,457 | ) | Net income |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||
($ in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||
Financial Assets | |||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
HTM | $ | 318,137 | 333,961 | 392,879 | 416,981 | ||||||||||||||||||
AFS | 4,066,122 | 4,066,122 | 3,715,536 | 3,715,536 | |||||||||||||||||||
Equity securities, AFS | 191,400 | 191,400 | 192,771 | 192,771 | |||||||||||||||||||
Short-term investments | 131,972 | 131,972 | 174,251 | 174,251 | |||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||
Notes payable: | |||||||||||||||||||||||
2.90% borrowings from FHLBI | — | — | 13,000 | 13,319 | |||||||||||||||||||
1.25% borrowings from FHLBI | 45,000 | 45,244 | 45,000 | 45,259 | |||||||||||||||||||
7.25% Senior Notes | 49,896 | 59,181 | 49,916 | 50,887 | |||||||||||||||||||
6.70% Senior Notes | 99,401 | 114,845 | 99,498 | 98,247 | |||||||||||||||||||
5.875% Senior Notes | 185,000 | 185,000 | 185,000 | 146,298 | |||||||||||||||||||
Total notes payable | $ | 379,297 | 404,270 | 392,414 | 354,010 | ||||||||||||||||||
Schedule of Quantitative Disclosures of our Financial Assets that were Measured at Fair Value | |||||||||||||||||||||||
December 31, 2014 | Fair Value Measurements Using | ||||||||||||||||||||||
($ in thousands) | Assets Measured at Fair Value 12/31/14 | Quoted Prices in Active Markets for Identical Assets/ Liabilities | Significant Other Observable Inputs (Level 2)1 | Significant Unobservable Inputs | |||||||||||||||||||
(Level 1)1 | (Level 3) | ||||||||||||||||||||||
Description | |||||||||||||||||||||||
Measured on a recurring basis: | |||||||||||||||||||||||
AFS: | |||||||||||||||||||||||
U.S. government and government agencies | $ | 124,130 | 53,199 | 70,931 | — | ||||||||||||||||||
Foreign government | 27,831 | — | 27,831 | — | |||||||||||||||||||
Obligations of states and political subdivisions | 1,246,264 | — | 1,246,264 | — | |||||||||||||||||||
Corporate securities | 1,799,806 | — | 1,799,806 | — | |||||||||||||||||||
ABS | 177,224 | — | 177,224 | — | |||||||||||||||||||
CMBS | 179,593 | — | 179,593 | — | |||||||||||||||||||
RMBS | 511,274 | — | 511,274 | — | |||||||||||||||||||
Total fixed income securities | 4,066,122 | 53,199 | 4,012,923 | — | |||||||||||||||||||
Equity securities | 191,400 | 188,500 | — | 2,900 | |||||||||||||||||||
Total AFS securities | 4,257,522 | 241,699 | 4,012,923 | 2,900 | |||||||||||||||||||
Short-term investments | 131,972 | 131,972 | — | — | |||||||||||||||||||
Total assets | $ | 4,389,494 | 373,671 | 4,012,923 | 2,900 | ||||||||||||||||||
December 31, 2013 | Fair Value Measurements Using | ||||||||||||||||||||||
($ in thousands) | Assets Measured at Fair Value 12/31/13 | Quoted Prices in Active Markets for Identical Assets/ Liabilities | Significant Other Observable Inputs (Level 2)1 | Significant Unobservable Inputs | |||||||||||||||||||
(Level 1)1 | (Level 3) | ||||||||||||||||||||||
Description | |||||||||||||||||||||||
Measured on a recurring basis: | |||||||||||||||||||||||
AFS: | |||||||||||||||||||||||
U.S. government and government agencies | $ | 173,375 | 52,153 | 121,222 | — | ||||||||||||||||||
Foreign government | 30,615 | — | 30,615 | — | |||||||||||||||||||
Obligations of states and political subdivisions | 951,624 | — | 951,624 | — | |||||||||||||||||||
Corporate securities | 1,734,883 | — | 1,734,883 | — | |||||||||||||||||||
ABS | 140,896 | — | 140,896 | — | |||||||||||||||||||
CMBS | 171,284 | — | 171,284 | — | |||||||||||||||||||
RMBS | 512,859 | — | 512,859 | — | |||||||||||||||||||
Total fixed income securities | 3,715,536 | 52,153 | 3,663,383 | — | |||||||||||||||||||
Equity securities | 192,771 | 189,871 | — | 2,900 | |||||||||||||||||||
Total AFS securities | 3,908,307 | 242,024 | 3,663,383 | 2,900 | |||||||||||||||||||
Short-term investments | 174,251 | 174,251 | — | — | |||||||||||||||||||
Total assets | $ | 4,082,558 | 416,275 | 3,663,383 | 2,900 | ||||||||||||||||||
1 There were no transfers of securities between Level 1 and Level 2. | |||||||||||||||||||||||
Schedule of Summary of the Changes in Fair Value of Securities Using Level 3 Inputs | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||
Government | Corporate | ABS | CMBS | Equity | Receivable for | Total | |||||||||||||||||
Proceeds | |||||||||||||||||||||||
($ in thousands) | Related to Sale | ||||||||||||||||||||||
of Selective HR Solutions ("Selective HR") | |||||||||||||||||||||||
Fair value, December 31, 2012 | $ | 19,789 | 2,946 | 6,068 | 7,162 | 3,607 | 2,705 | 42,277 | |||||||||||||||
Total net (losses) gains for the period included in: | |||||||||||||||||||||||
OCI1 | (537 | ) | (7 | ) | (74 | ) | 772 | 3,935 | — | 4,089 | |||||||||||||
Net income2,3 | (76 | ) | — | — | 361 | — | (1,480 | ) | (1,195 | ) | |||||||||||||
Purchases | — | — | — | — | — | — | — | ||||||||||||||||
Sales | — | — | — | — | — | — | — | ||||||||||||||||
Issuances | — | — | — | — | — | — | — | ||||||||||||||||
Settlements | (1,847 | ) | (168 | ) | — | (2,420 | ) | — | (225 | ) | (4,660 | ) | |||||||||||
Transfers into Level 3 | — | — | — | — | — | — | — | ||||||||||||||||
Transfers out of Level 3 | (17,329 | ) | (2,771 | ) | (5,994 | ) | (5,875 | ) | (4,642 | ) | (1,000 | ) | (37,611 | ) | |||||||||
Fair value, December 31, 2013 | $ | — | — | — | — | 2,900 | — | 2,900 | |||||||||||||||
1 Amounts are reported in “Unrealized holding gains (losses) arising during period” on the Consolidated Statements of Comprehensive Income. | |||||||||||||||||||||||
2 Amounts are reported in “Net realized gains” for realized gains and losses and “Net investment income earned” for amortization of securities on the Consolidated Statements of Income. | |||||||||||||||||||||||
3For the receivable related to the sale of Selective HR, amounts in “Loss on disposal of discontinued operations, net of tax” relate to an impairment charge and | |||||||||||||||||||||||
amounts in “Other income” relate to interest accretion on the Consolidated Statements of Income. | |||||||||||||||||||||||
Schedule of Quantitative Information of our Financial Assets and Liabilities that were Disclosed at Fair Value | |||||||||||||||||||||||
31-Dec-14 | Fair Value Measurements Using | ||||||||||||||||||||||
($ in thousands) | Assets/Liabilities Disclosed at | Quoted Prices in Active Markets for Identical Assets/Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||
Fair Value 12/31/2014 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||
HTM: | |||||||||||||||||||||||
Foreign government | $ | 5,394 | — | 5,394 | — | ||||||||||||||||||
Obligations of states and political subdivisions | 299,132 | — | 299,132 | — | |||||||||||||||||||
Corporate securities | 21,422 | — | 21,422 | — | |||||||||||||||||||
ABS | 2,823 | — | 2,823 | — | |||||||||||||||||||
CMBS | 5,190 | — | 5,190 | — | |||||||||||||||||||
Total HTM fixed income securities | $ | 333,961 | — | 333,961 | — | ||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||
Notes payable: | |||||||||||||||||||||||
1.25% borrowings from FHLBI | 45,244 | — | 45,244 | — | |||||||||||||||||||
7.25% Senior Notes | 59,181 | — | 59,181 | — | |||||||||||||||||||
6.70% Senior Notes | 114,845 | — | 114,845 | — | |||||||||||||||||||
5.875% Senior Notes | 185,000 | 185,000 | — | — | |||||||||||||||||||
Total notes payable | $ | 404,270 | 185,000 | 219,270 | $ | — | |||||||||||||||||
31-Dec-13 | Fair Value Measurements Using | ||||||||||||||||||||||
($ in thousands) | Assets/Liabilities Disclosed at | Quoted Prices in Active Markets for Identical Assets/Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||
Fair Value 12/31/2013 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||
HTM: | |||||||||||||||||||||||
Foreign government | $ | 5,591 | — | 5,591 | — | ||||||||||||||||||
Obligations of states and political subdivisions | 369,756 | — | 369,756 | — | |||||||||||||||||||
Corporate securities | 30,274 | — | 30,274 | — | |||||||||||||||||||
ABS | 3,415 | — | 3,415 | — | |||||||||||||||||||
CMBS | 7,945 | — | 7,945 | — | |||||||||||||||||||
Total HTM fixed income securities | $ | 416,981 | — | 416,981 | — | ||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||
Notes payable: | |||||||||||||||||||||||
2.90% borrowings from FHLBI | 13,319 | — | 13,319 | — | |||||||||||||||||||
1.25% borrowings from FHLBI | 45,259 | — | 45,259 | — | |||||||||||||||||||
7.25% Senior Notes | 50,887 | — | 50,887 | — | |||||||||||||||||||
6.70% Senior Notes | 98,247 | — | 98,247 | — | |||||||||||||||||||
5.875% Senior Notes | 146,298 | 146,298 | — | — | |||||||||||||||||||
Total notes payable | $ | 354,010 | 146,298 | 207,712 | — | ||||||||||||||||||
Reinsurance_Tables
Reinsurance (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Reinsurance Disclosures [Abstract] | |||||||||||||||
Schedule of Total Reinsurance Balances Segregated By Reinsurer | |||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | ||||||||||||||
($ in thousands) | Reinsurance Balances | % of Net Unsecured Reinsurance | Reinsurance Balances | % of Net | |||||||||||
Unsecured Reinsurance | |||||||||||||||
Total reinsurance recoverables | $ | 581,548 | $ | 550,897 | |||||||||||
Total prepaid reinsurance premiums | 146,993 | 143,000 | |||||||||||||
Less: collateral1 | (114,843 | ) | (119,732 | ) | |||||||||||
Net unsecured reinsurance balances | 613,698 | 574,165 | |||||||||||||
Federal and state pools2: | |||||||||||||||
NFIP | 172,547 | 28 | 177,637 | 31 | |||||||||||
NJ Unsatisfied Claim Judgment Fund | 76,342 | 13 | 71,732 | 12 | |||||||||||
Other | 2,557 | — | 3,034 | 1 | |||||||||||
Total federal and state pools | 251,446 | 41 | 252,403 | 44 | |||||||||||
Remaining unsecured reinsurance | 362,252 | 59 | 321,762 | 56 | |||||||||||
Hannover Ruckversicherungs AG (A.M. Best rated “A+”) | 79,864 | 13 | 72,565 | 13 | |||||||||||
Munich Re Group (A.M. Best rated “A+”) | 78,347 | 13 | 69,749 | 12 | |||||||||||
Swiss Re Group (A.M. Best rated “A+”) | 55,026 | 9 | 48,234 | 8 | |||||||||||
AXIS Reinsurance Company (A.M. Best rated “A+”) | 51,014 | 8 | 45,114 | 8 | |||||||||||
Partner Reinsurance Company of the U.S. (A.M. Best rated “A+”) | 25,424 | 4 | 25,730 | 4 | |||||||||||
QBE Reinsurance Corporation (A.M. Best rated "A") | 13,069 | 2 | 15,665 | 3 | |||||||||||
All other reinsurers | 59,508 | 10 | 44,705 | 8 | |||||||||||
Total | $ | 362,252 | 59 | % | $ | 321,762 | 56 | % | |||||||
1 Includes letters of credit, trust funds, and funds withheld. | |||||||||||||||
2 Considered to have minimal risk of default. | |||||||||||||||
Note: Some amounts may not foot due to rounding. | |||||||||||||||
List Of Direct, Assumed, And Ceded Reinsurance Amounts | |||||||||||||||
($ in thousands) | 2014 | 2013 | 2012 | ||||||||||||
Premiums written: | |||||||||||||||
Direct | $ | 2,228,270 | 2,133,793 | 1,955,667 | |||||||||||
Assumed | 26,306 | 43,650 | 50,938 | ||||||||||||
Ceded | (369,296 | ) | (367,284 | ) | (339,722 | ) | |||||||||
Net | $ | 1,885,280 | 1,810,159 | 1,666,883 | |||||||||||
Premiums earned: | |||||||||||||||
Direct | $ | 2,183,258 | 2,048,530 | 1,873,007 | |||||||||||
Assumed | 34,653 | 44,464 | 65,884 | ||||||||||||
Ceded | (365,302 | ) | (356,922 | ) | (354,772 | ) | |||||||||
Net | $ | 1,852,609 | 1,736,072 | 1,584,119 | |||||||||||
Losses and loss expenses incurred: | |||||||||||||||
Direct | $ | 1,314,864 | 1,370,293 | 2,394,640 | |||||||||||
Assumed | 26,187 | 32,678 | 29,175 | ||||||||||||
Ceded | (183,550 | ) | (281,233 | ) | (1,302,825 | ) | |||||||||
Net | $ | 1,157,501 | 1,121,738 | 1,120,990 | |||||||||||
Schedule of Ceded Premiums and Losses Related to Flood Operations | |||||||||||||||
Ceded to NFIP ($ in thousands) | 2014 | 2013 | 2012 | ||||||||||||
Ceded premiums written | $ | (237,718 | ) | (236,309 | ) | (221,094 | ) | ||||||||
Ceded premiums earned | (234,224 | ) | (228,650 | ) | (212,177 | ) | |||||||||
Ceded losses and loss expenses incurred | (57,323 | ) | (183,142 | ) | (1,119,303 | ) |
Reserve_for_Losses_and_Loss_Ex1
Reserve for Losses and Loss Expenses (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Insurance Loss Reserves [Abstract] | ||||||||||||||||||||
Schedule of Roll Forward of Reserves for Losses and Loss Expenses | ||||||||||||||||||||
($ in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||
Gross reserves for losses and loss expenses, at beginning of year | $ | 3,349,770 | 4,068,941 | 3,144,924 | ||||||||||||||||
Less: reinsurance recoverable on unpaid losses and loss expenses, at beginning of year | 540,839 | 1,409,755 | 549,490 | |||||||||||||||||
Net reserves for losses and loss expenses, at beginning of year | 2,808,931 | 2,659,186 | 2,595,434 | |||||||||||||||||
Incurred losses and loss expenses for claims occurring in the: | ||||||||||||||||||||
Current year | 1,216,770 | 1,147,263 | 1,146,591 | |||||||||||||||||
Prior years | (59,269 | ) | (25,525 | ) | (25,601 | ) | ||||||||||||||
Total incurred losses and loss expenses | 1,157,501 | 1,121,738 | 1,120,990 | |||||||||||||||||
Paid losses and loss expenses for claims occurring in the: | ||||||||||||||||||||
Current year | 468,478 | 399,559 | 424,496 | |||||||||||||||||
Prior years | 592,062 | 572,434 | 632,742 | |||||||||||||||||
Total paid losses and loss expenses | 1,060,540 | 971,993 | 1,057,238 | |||||||||||||||||
Net reserves for losses and loss expenses, at end of year | 2,905,892 | 2,808,931 | 2,659,186 | |||||||||||||||||
Add: Reinsurance recoverable on unpaid losses and loss expenses, at end of year | 571,978 | 540,839 | 1,409,755 | |||||||||||||||||
Gross reserves for losses and loss expenses at end of year | $ | 3,477,870 | 3,349,770 | 4,068,941 | ||||||||||||||||
Schedule of(Favorable)/ Unfavorable Prior Year Development | ||||||||||||||||||||
(Favorable)/Unfavorable Prior Year Development | ||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
General Liability | $ | (43.9 | ) | (20.0 | ) | 2.5 | ||||||||||||||
Commercial Automobile | (4.1 | ) | (4.5 | ) | (8.5 | ) | ||||||||||||||
Workers Compensation | — | 23.5 | 2.5 | |||||||||||||||||
Businessowners' Policies | 1.9 | (9.5 | ) | (9.0 | ) | |||||||||||||||
Commercial Property | (2.1 | ) | (7.5 | ) | (3.5 | ) | ||||||||||||||
Homeowners | (4.0 | ) | (2.5 | ) | (9.0 | ) | ||||||||||||||
Personal Automobile | (10.8 | ) | (3.0 | ) | 0.5 | |||||||||||||||
E&S | 3.7 | (2.0 | ) | — | ||||||||||||||||
Other | — | — | (1.0 | ) | ||||||||||||||||
Total | $ | (59.3 | ) | (25.5 | ) | (25.5 | ) | |||||||||||||
Schedule of Exposure to Various Asbestos and Environmental Claims | ||||||||||||||||||||
2014 | ||||||||||||||||||||
($ in millions) | Gross | Net | ||||||||||||||||||
Asbestos | $ | 8.8 | 7.3 | |||||||||||||||||
Landfill sites | 11.5 | 6.6 | ||||||||||||||||||
Leaking underground storage tanks | 10.4 | 9.1 | ||||||||||||||||||
Total | $ | 30.7 | 23 | |||||||||||||||||
Schedule of Roll Forward of Gross and Net Asbestos and Environmental Incurred Losses and Loss Expenses and Related Reserves | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
($ in thousands) | Gross | Net | Gross | Net | Gross | Net | ||||||||||||||
Asbestos | ||||||||||||||||||||
Reserves for losses and loss expenses at beginning of year | $ | 8,897 | 7,518 | 9,170 | 7,791 | 8,412 | 6,586 | |||||||||||||
Incurred losses and loss expenses | 60 | — | — | — | 1,696 | 2,000 | ||||||||||||||
Less: losses and loss expenses paid | (206 | ) | (204 | ) | (273 | ) | (273 | ) | (938 | ) | (795 | ) | ||||||||
Reserves for losses and loss expenses at the end of year | $ | 8,751 | 7,314 | 8,897 | 7,518 | 9,170 | 7,791 | |||||||||||||
Environmental | ||||||||||||||||||||
Reserves for losses and loss expenses at beginning of year | $ | 23,867 | 17,649 | 26,405 | 19,978 | 27,600 | 21,330 | |||||||||||||
Incurred losses and loss expenses | 107 | — | 347 | 68 | 1,363 | 1,000 | ||||||||||||||
Less: losses and loss expenses paid | (2,072 | ) | (1,969 | ) | (2,885 | ) | (2,397 | ) | (2,558 | ) | (2,352 | ) | ||||||||
Reserves for losses and loss expenses at the end of year | $ | 21,902 | 15,680 | 23,867 | 17,649 | 26,405 | 19,978 | |||||||||||||
Total Asbestos and Environmental Claims | ||||||||||||||||||||
Reserves for losses and loss expenses at beginning of year | $ | 32,764 | 25,167 | 35,575 | 27,769 | 36,012 | 27,916 | |||||||||||||
Incurred losses and loss expenses | 167 | — | 347 | 68 | 3,059 | 3,000 | ||||||||||||||
Less: losses and loss expenses paid | (2,278 | ) | (2,173 | ) | (3,158 | ) | (2,670 | ) | (3,496 | ) | (3,147 | ) | ||||||||
Reserves for losses and loss expenses at the end of year | $ | 30,653 | 22,994 | 32,764 | 25,167 | 35,575 | 27,769 | |||||||||||||
Indebtedness_Tables
Indebtedness (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Debt Disclosure [Abstract] | |||||
Schedule of Convenants in the Line of Credit | |||||
Required as of | Actual as of | ||||
31-Dec-14 | 31-Dec-14 | ||||
Consolidated net worth | $881 million | $1.3 billion | |||
Statutory surplus | Not less than $750 million | $1.3 billion | |||
Debt-to-capitalization ratio1 | Not to exceed 35% | 23.20% | |||
A.M. Best financial strength rating | Minimum of A- | A |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Segment Reporting [Abstract] | |||||||||||
Schedule of Revenue from Continuing Operations By Segment | |||||||||||
Revenue by Segment | |||||||||||
Years ended December 31, | |||||||||||
($ in thousands) | 2014 | 2013 | 2012 | ||||||||
Standard Commercial Lines: | |||||||||||
Net premiums earned: | |||||||||||
Commercial automobile | $ | 333,310 | 310,994 | 288,010 | |||||||
Workers compensation | 274,585 | 267,612 | 262,108 | ||||||||
General liability | 444,938 | 405,322 | 373,381 | ||||||||
Commercial property | 244,792 | 224,412 | 202,340 | ||||||||
Businessowners’ policies | 85,788 | 77,097 | 68,462 | ||||||||
Bonds | 19,288 | 19,000 | 18,891 | ||||||||
Other | 13,011 | 12,182 | 12,143 | ||||||||
Miscellaneous income | 14,747 | 10,253 | 7,003 | ||||||||
Total Standard Commercial Lines revenue | 1,430,459 | 1,326,872 | 1,232,338 | ||||||||
Standard Personal Lines: | |||||||||||
Net premiums earned: | |||||||||||
Personal automobile | 151,317 | 152,005 | 152,142 | ||||||||
Homeowners | 134,273 | 127,991 | 113,850 | ||||||||
Other | 11,157 | 14,336 | 13,563 | ||||||||
Miscellaneous income | 1,834 | 1,948 | 1,824 | ||||||||
Total Standard Personal Lines revenue | 298,581 | 296,280 | 281,379 | ||||||||
E&S Lines: | |||||||||||
Net premiums earned: | |||||||||||
General liability | 96,142 | 88,761 | 59,721 | ||||||||
Commercial property | 38,572 | 32,054 | 17,698 | ||||||||
Commercial automobile | 5,436 | 4,306 | 1,810 | ||||||||
Miscellaneous income | 17 | — | — | ||||||||
Total E&S Lines revenue | 140,167 | 125,121 | 79,229 | ||||||||
Investments: | |||||||||||
Net investment income | 138,708 | 134,643 | 131,877 | ||||||||
Net realized investment gains | 26,599 | 20,732 | 8,988 | ||||||||
Total investment revenues | 165,307 | 155,375 | 140,865 | ||||||||
Total all segments | 2,034,514 | 1,903,648 | 1,733,811 | ||||||||
Other income | 347 | 93 | 291 | ||||||||
Total revenues from continuing operations | $ | 2,034,861 | 1,903,741 | 1,734,102 | |||||||
Schedule of Income from Continuing Operations before Federal Income Tax | |||||||||||
Income from Continuing Operations before Federal Income Tax | |||||||||||
Years ended December 31, | |||||||||||
($ in thousands) | 2014 | 2013 | 2012 | ||||||||
Standard Commercial Lines: | |||||||||||
Underwriting gain (loss), before federal income tax | $ | 61,221 | 33,856 | (40,935 | ) | ||||||
GAAP combined ratio | 95.7 | % | 97.4 | 103.3 | |||||||
Statutory combined ratio | 95.5 | % | 97.1 | 103 | |||||||
Standard Personal Lines: | |||||||||||
Underwriting gain (loss), before federal income tax | 16,536 | 8,645 | (3,514 | ) | |||||||
GAAP combined ratio | 94.4 | % | 97.1 | % | 101.3 | % | |||||
Statutory combined ratio | 94.5 | % | 96.9 | % | 100.7 | % | |||||
E&S Lines: | |||||||||||
Underwriting gain (loss), before federal income tax | 386 | (3,735 | ) | (19,558 | ) | ||||||
GAAP combined ratio | 99.7 | % | 103 | 124.7 | |||||||
Statutory combined ratio | 99.2 | % | 102.9 | 118.8 | |||||||
Investments: | |||||||||||
Net investment income | 138,708 | 134,643 | 131,877 | ||||||||
Net realized investment gains | 26,599 | 20,732 | 8,988 | ||||||||
Total investment income, before federal income tax | 165,307 | 155,375 | 140,865 | ||||||||
Tax on investment income | 43,811 | 40,489 | 34,758 | ||||||||
Total investment income, after federal income tax | $ | 121,496 | 114,886 | 106,107 | |||||||
Schedule of Reconciliation of Segment Results to Income From Continuing Operations, Before Federal Income Tax | |||||||||||
Reconciliation of Segment Results to Income from Continuing Operations, before Federal Income Tax | |||||||||||
Years ended December 31, | |||||||||||
($ in thousands) | 2014 | 2013 | 2012 | ||||||||
Underwriting gain (loss), before federal income tax | |||||||||||
Standard Commercial Lines | $ | 61,221 | 33,856 | (40,935 | ) | ||||||
Standard Personal Lines | 16,536 | 8,645 | (3,514 | ) | |||||||
E&S Lines | 386 | (3,735 | ) | (19,558 | ) | ||||||
Investment income, before federal income tax | 165,307 | 155,375 | 140,865 | ||||||||
Total all segments | 243,450 | 194,141 | 76,858 | ||||||||
Interest expense | (22,086 | ) | (22,538 | ) | (18,872 | ) | |||||
General corporate and other expenses | (24,233 | ) | (27,801 | ) | (20,351 | ) | |||||
Income from continuing operations, before federal income tax | $ | 197,131 | 143,802 | 37,635 | |||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Schedule of Reconciliation of Earnings Per Share | ||||||||||||
2014 | Income | Shares | Per Share | |||||||||
($ in thousands, except per share amounts) | (Numerator) | (Denominator) | Amount | |||||||||
Basic EPS: | ||||||||||||
Net income available to common stockholders | $ | 141,827 | 56,310 | $ | 2.52 | |||||||
Effect of dilutive securities: | ||||||||||||
Stock compensation plans | — | 1,041 | ||||||||||
Diluted EPS: | ||||||||||||
Net income available to common stockholders | $ | 141,827 | 57,351 | $ | 2.47 | |||||||
2013 | Income | Shares | Per Share | |||||||||
($ in thousands, except per share amounts) | (Numerator) | (Denominator) | Amount | |||||||||
Basic EPS: | ||||||||||||
Net income from continuing operations | $ | 107,415 | 55,638 | $ | 1.93 | |||||||
Net loss on disposal of discontinued operations | (997 | ) | 55,638 | (0.02 | ) | |||||||
Net income available to common stockholders | $ | 106,418 | 55,638 | $ | 1.91 | |||||||
Effect of dilutive securities: | ||||||||||||
Stock compensation plans | — | 1,172 | ||||||||||
Diluted EPS: | ||||||||||||
Net income from continuing operations | $ | 107,415 | 56,810 | $ | 1.89 | |||||||
Net loss on disposal of discontinued operations | (997 | ) | 56,810 | (0.02 | ) | |||||||
Net income available to common stockholders | $ | 106,418 | 56,810 | $ | 1.87 | |||||||
2012 | Income | Shares | Per Share | |||||||||
($ in thousands, except per share amounts) | (Numerator) | (Denominator) | Amount | |||||||||
Basic EPS: | ||||||||||||
Net income available to common stockholders | $ | 37,963 | 54,880 | $ | 0.69 | |||||||
Effect of dilutive securities: | ||||||||||||
Stock compensation plans | — | 1,053 | ||||||||||
Diluted EPS: | ||||||||||||
Net income available to common stockholders | $ | 37,963 | 55,933 | $ | 0.68 | |||||||
Federal_Income_Taxes_Tables
Federal Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
Schedule of Reconciliation of Federal Income Tax on Income at the Corporate Rate to the Effective Tax Rate | |||||||||||
($ in thousands) | 2014 | 2013 | 2012 | ||||||||
Tax at statutory rate of 35% | $ | 68,996 | 50,331 | 13,172 | |||||||
Tax-advantaged interest | (12,926 | ) | (12,718 | ) | (13,285 | ) | |||||
Dividends received deduction | (1,121 | ) | (1,174 | ) | (1,260 | ) | |||||
Other | 355 | (52 | ) | 1,045 | |||||||
Federal income tax expense (benefit) from continuing operations | $ | 55,304 | 36,387 | (328 | ) | ||||||
Schedule of Deferred Tax Assets and Liabilities | |||||||||||
($ in thousands) | 2014 | 2013 | |||||||||
Deferred tax assets: | |||||||||||
Net loss reserve discounting | $ | 84,502 | 87,967 | ||||||||
Net unearned premiums | 66,470 | 64,167 | |||||||||
Employee benefits | 33,721 | 19,912 | |||||||||
Long-term incentive compensation plans | 13,625 | 12,904 | |||||||||
Temporary investment write-downs | 3,939 | 7,586 | |||||||||
Net operating loss | 2,136 | 2,818 | |||||||||
Alternative minimum tax and other business tax credits | 7,826 | 17,042 | |||||||||
Other | 8,811 | 10,088 | |||||||||
Total deferred tax assets | 221,030 | 222,484 | |||||||||
Deferred tax liabilities: | |||||||||||
Deferred policy acquisition costs | 63,242 | 59,164 | |||||||||
Unrealized gains on investment securities | 43,289 | 31,345 | |||||||||
Other investment-related items, net | 5,088 | 618 | |||||||||
Accelerated depreciation and amortization | 10,962 | 8,744 | |||||||||
Total deferred tax liabilities | 122,581 | 99,871 | |||||||||
Net deferred federal income tax asset | $ | 98,449 | 122,613 | ||||||||
Summary of Operating Loss Carryforwards [Table Text Block] | As of December 31, 2014, we had federal tax net operating loss carryforwards (“NOL”) of $6.1 million. These NOLs, which are subject to an annual limitation of $1.9 million, will expire between 2029 and 2031 as follows: | ||||||||||
($ in thousands) | Gross NOL | Tax Effected NOL | |||||||||
2029 | $ | 2,024 | 708 | ||||||||
2030 | 3,999 | 1,400 | |||||||||
2031 | 79 | 28 | |||||||||
Total NOL carryforwards | 6,102 | 2,136 | |||||||||
Retirement_Plans_Tables
Retirement Plans (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Schedule Of Plan Terms In Effect And Revisions Of Retirement Savings Plan | ||||||||||||||||||||
As of January 1, 2011 | As of April 5, 2013 | |||||||||||||||||||
SICA match | 100% of participant contributions up to the first 3% of defined compensation and 50% up to the next 3% | 100% of participant contributions up to the first 3% of defined compensation and 50% up to the next 3% | ||||||||||||||||||
Non-elective contribution | Non-elective contributions of 4% of defined compensation for employees not eligible to participate in the Retirement Income Plan due to a date of hire after December 31, 2005 | Non-elective contributions of 4% of defined compensation expanded to include employees impacted by the curtailment of the Retirement Income Plan | ||||||||||||||||||
Vesting of match/non-elective contribution | Immediately vested | Immediately vested | ||||||||||||||||||
Schedule of Funded Status Of Retirement Income Plan And Retirement Life Plan | ||||||||||||||||||||
December 31, | Retirement Income Plan | Retirement Life Plan | ||||||||||||||||||
($ in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Change in Benefit Obligation: | ||||||||||||||||||||
Benefit obligation, beginning of year | $ | 256,404 | 302,647 | 6,201 | 6,471 | |||||||||||||||
Service cost | 5,920 | 7,517 | — | — | ||||||||||||||||
Interest cost | 13,126 | 12,477 | 298 | 283 | ||||||||||||||||
Actuarial losses (gains) | 62,935 | (29,656 | ) | 180 | (224 | ) | ||||||||||||||
Benefits paid | (7,344 | ) | (6,978 | ) | (307 | ) | (329 | ) | ||||||||||||
Impact of curtailment | — | (29,603 | ) | — | — | |||||||||||||||
Benefit obligation, end of year | $ | 331,041 | 256,404 | 6,372 | 6,201 | |||||||||||||||
Change in Fair Value of Assets: | ||||||||||||||||||||
Fair value of assets, beginning of year | $ | 225,817 | 207,150 | — | — | |||||||||||||||
Actual return on plan assets, net of expenses | 24,649 | 15,925 | — | — | ||||||||||||||||
Contributions by the employer to funded plans | 10,210 | 9,600 | — | — | ||||||||||||||||
Contributions by the employer to unfunded plans | 121 | 120 | — | — | ||||||||||||||||
Benefits paid | (7,344 | ) | (6,978 | ) | — | — | ||||||||||||||
Fair value of assets, end of year | $ | 253,453 | 225,817 | — | — | |||||||||||||||
Funded status | $ | (77,588 | ) | (30,587 | ) | (6,372 | ) | (6,201 | ) | |||||||||||
Schedule of Amounts Recognized in Consolidated Balance Sheet | ||||||||||||||||||||
Amounts Recognized in the Consolidated Balance Sheet: | ||||||||||||||||||||
Liabilities | $ | (77,588 | ) | (30,587 | ) | (6,372 | ) | (6,201 | ) | |||||||||||
Net pension liability, end of year | $ | (77,588 | ) | (30,587 | ) | (6,372 | ) | (6,201 | ) | |||||||||||
Schedule of Amounts recognized in Accumulated Other than Comprehensive Income | ||||||||||||||||||||
Amounts Recognized in AOCI: | ||||||||||||||||||||
Net actuarial loss | $ | 91,758 | 39,640 | 1,480 | 1,363 | |||||||||||||||
Total | $ | 91,758 | 39,640 | 1,480 | 1,363 | |||||||||||||||
Schedule of Other Information as of December 31 | ||||||||||||||||||||
Other Information as of December 31: | ||||||||||||||||||||
Accumulated benefit obligation | 326,538 | 250,546 | — | — | ||||||||||||||||
Schedule of Components Of Net Periodic Benefit Cost And Other Amounts Recognized In Other Comprehensive Income | ||||||||||||||||||||
Retirement Income Plan | Retirement Life Plan | |||||||||||||||||||
($ in thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income: | ||||||||||||||||||||
Net Periodic Benefit Cost: | ||||||||||||||||||||
Service cost | $ | 5,920 | 7,517 | 8,091 | — | — | — | |||||||||||||
Interest cost | 13,126 | 12,477 | 12,981 | 298 | 283 | 302 | ||||||||||||||
Expected return on plan assets | (15,671 | ) | (15,755 | ) | (14,206 | ) | — | — | — | |||||||||||
Amortization of unrecognized prior service cost | — | 10 | 150 | — | — | — | ||||||||||||||
Amortization of unrecognized actuarial loss | 1,839 | 4,294 | 5,863 | 63 | 80 | 40 | ||||||||||||||
Curtailment expense | — | 16 | — | — | — | — | ||||||||||||||
Total net periodic cost | $ | 5,214 | 8,559 | 12,879 | 361 | 363 | 342 | |||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | ||||||||||||||||||||
Net actuarial loss (gain) | $ | 53,956 | (59,430 | ) | 25,906 | 180 | (224 | ) | 660 | |||||||||||
Reversal of amortization of net actuarial loss | (1,839 | ) | (4,294 | ) | (5,863 | ) | (63 | ) | (80 | ) | (40 | ) | ||||||||
Reversal of amortization of prior service cost | — | (10 | ) | (150 | ) | — | — | — | ||||||||||||
Curtailment expense | — | (16 | ) | — | — | — | — | |||||||||||||
Total recognized in other comprehensive income | $ | 52,117 | (63,750 | ) | 19,893 | 117 | (304 | ) | 620 | |||||||||||
Total recognized in net periodic benefit cost and other comprehensive income | $ | 57,331 | (55,191 | ) | 32,772 | 478 | 59 | 962 | ||||||||||||
Schedule Of Weighted- Average Expense and Liability Assumptions | ||||||||||||||||||||
Weighted-Average Liability Assumptions as of December 31: | ||||||||||||||||||||
Discount rate | 4.29 | % | 5.16 | 4.08 | 4.85 | |||||||||||||||
Rate of compensation increase | 4 | % | 4 | — | — | |||||||||||||||
Retirement Income Plan | Retirement Life Plan | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||
Weighted-Average Expense Assumptions for the years ended December 31: | ||||||||||||||||||||
Discount rate1 | 5.16 | % | 4.66 | 5.16 | 4.85 | 4.42 | 5.16 | |||||||||||||
Expected return on plan assets | 6.92 | % | 7.4 | 7.75 | — | — | — | |||||||||||||
Rate of compensation increase | 4 | % | 4 | 4 | — | — | — | |||||||||||||
1Discount rate for the Retirement Income Plan changed from 4.42% as of December 31, 2012 to 4.66% as of March 31, 2013 due to the remeasurement that was performed with the curtailment of the Plan. | ||||||||||||||||||||
Schedule of Allocation of Plan Assets | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Target Ranges | Actual Percentage | Actual Percentage | ||||||||||||||||||
Long duration fixed income | 55%- 100% | 59 | % | 55 | % | |||||||||||||||
Global equity | 0%- 45% | 25 | % | 27 | % | |||||||||||||||
Global Asset Allocation1 | — | % | 11 | % | 12 | % | ||||||||||||||
Private equity1,2 | — | % | 4 | % | 5 | % | ||||||||||||||
Cash and short-term investments1 | — | % | 1 | % | 1 | % | ||||||||||||||
Total | — | % | 100 | % | 100 | % | ||||||||||||||
Schedule of Quantitative Disclosures of our Financial Assets that were Measured at Fair Value | ||||||||||||||||||||
December 31, 2014 | Fair Value Measurements Using | |||||||||||||||||||
($ in thousands) | Assets Measured at Fair Value 12/31/14 | Quoted Prices in Active Markets for Identical Assets/ Liabilities | Significant Other Observable Inputs (Level 2)1 | Significant Unobservable Inputs | ||||||||||||||||
(Level 1)1 | (Level 3) | |||||||||||||||||||
Description | ||||||||||||||||||||
Measured on a recurring basis: | ||||||||||||||||||||
AFS: | ||||||||||||||||||||
U.S. government and government agencies | $ | 124,130 | 53,199 | 70,931 | — | |||||||||||||||
Foreign government | 27,831 | — | 27,831 | — | ||||||||||||||||
Obligations of states and political subdivisions | 1,246,264 | — | 1,246,264 | — | ||||||||||||||||
Corporate securities | 1,799,806 | — | 1,799,806 | — | ||||||||||||||||
ABS | 177,224 | — | 177,224 | — | ||||||||||||||||
CMBS | 179,593 | — | 179,593 | — | ||||||||||||||||
RMBS | 511,274 | — | 511,274 | — | ||||||||||||||||
Total fixed income securities | 4,066,122 | 53,199 | 4,012,923 | — | ||||||||||||||||
Equity securities | 191,400 | 188,500 | — | 2,900 | ||||||||||||||||
Total AFS securities | 4,257,522 | 241,699 | 4,012,923 | 2,900 | ||||||||||||||||
Short-term investments | 131,972 | 131,972 | — | — | ||||||||||||||||
Total assets | $ | 4,389,494 | 373,671 | 4,012,923 | 2,900 | |||||||||||||||
December 31, 2013 | Fair Value Measurements Using | |||||||||||||||||||
($ in thousands) | Assets Measured at Fair Value 12/31/13 | Quoted Prices in Active Markets for Identical Assets/ Liabilities | Significant Other Observable Inputs (Level 2)1 | Significant Unobservable Inputs | ||||||||||||||||
(Level 1)1 | (Level 3) | |||||||||||||||||||
Description | ||||||||||||||||||||
Measured on a recurring basis: | ||||||||||||||||||||
AFS: | ||||||||||||||||||||
U.S. government and government agencies | $ | 173,375 | 52,153 | 121,222 | — | |||||||||||||||
Foreign government | 30,615 | — | 30,615 | — | ||||||||||||||||
Obligations of states and political subdivisions | 951,624 | — | 951,624 | — | ||||||||||||||||
Corporate securities | 1,734,883 | — | 1,734,883 | — | ||||||||||||||||
ABS | 140,896 | — | 140,896 | — | ||||||||||||||||
CMBS | 171,284 | — | 171,284 | — | ||||||||||||||||
RMBS | 512,859 | — | 512,859 | — | ||||||||||||||||
Total fixed income securities | 3,715,536 | 52,153 | 3,663,383 | — | ||||||||||||||||
Equity securities | 192,771 | 189,871 | — | 2,900 | ||||||||||||||||
Total AFS securities | 3,908,307 | 242,024 | 3,663,383 | 2,900 | ||||||||||||||||
Short-term investments | 174,251 | 174,251 | — | — | ||||||||||||||||
Total assets | $ | 4,082,558 | 416,275 | 3,663,383 | 2,900 | |||||||||||||||
1 There were no transfers of securities between Level 1 and Level 2. | ||||||||||||||||||||
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | ||||||||||||||||||||
Investments in Limited Partnerships | ||||||||||||||||||||
($ in thousands) | 2014 | 2013 | ||||||||||||||||||
Fair value, beginning of year | $ | 12,159 | 12,631 | |||||||||||||||||
Total gains (realized and unrealized) | ||||||||||||||||||||
included in changes in net assets | 1,586 | 2,131 | ||||||||||||||||||
Purchases | 334 | 560 | ||||||||||||||||||
Sales | — | — | ||||||||||||||||||
Issuances | — | — | ||||||||||||||||||
Settlements | (3,687 | ) | (3,163 | ) | ||||||||||||||||
Transfers into Level 3 | — | — | ||||||||||||||||||
Transfers out of Level 3 | — | — | ||||||||||||||||||
Fair value, end of year | $ | 10,392 | 12,159 | |||||||||||||||||
Schedule of Expected Benefit Payments | ||||||||||||||||||||
($ in thousands) | Retirement Income Plan | Retirement Life Plan | ||||||||||||||||||
Benefits Expected to be Paid in Future | ||||||||||||||||||||
Fiscal Years: | ||||||||||||||||||||
2015 | $ | 9,240 | 343 | |||||||||||||||||
2016 | 10,330 | 348 | ||||||||||||||||||
2017 | 11,400 | 353 | ||||||||||||||||||
2018 | 12,493 | 357 | ||||||||||||||||||
2019 | 13,532 | 362 | ||||||||||||||||||
2020-2024 | 82,802 | 1,865 | ||||||||||||||||||
Retirement Income Plan [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Schedule of Quantitative Disclosures of our Financial Assets that were Measured at Fair Value | ||||||||||||||||||||
31-Dec-14 | Fair Value Measurements at 12/31/14 Using | |||||||||||||||||||
($ in thousands) | Assets Measured at Fair Value At 12/31/14 | Quoted Prices in Active Markets for Identical Assets/ Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Description | ||||||||||||||||||||
Long duration fixed income: | ||||||||||||||||||||
Global asset allocation fund | $ | 27,782 | 27,782 | — | — | |||||||||||||||
Extended duration fixed income | 120,532 | 120,532 | — | — | ||||||||||||||||
Total long duration fixed income | 148,314 | 148,314 | — | — | ||||||||||||||||
Global equity: | ||||||||||||||||||||
Non-U.S. equity | 16,852 | 5,438 | 11,414 | — | ||||||||||||||||
U.S. equity | 47,719 | 47,719 | — | — | ||||||||||||||||
Total global equity | 64,571 | 53,157 | 11,414 | — | ||||||||||||||||
Global asset allocation | 27,842 | 27,842 | — | — | ||||||||||||||||
Private equity (limited partnerships): | ||||||||||||||||||||
Equity long/short hedge | 41 | — | — | 41 | ||||||||||||||||
Private equity | 8,136 | — | — | 8,136 | ||||||||||||||||
Real estate | 2,215 | — | — | 2,215 | ||||||||||||||||
Total private equity | 10,392 | — | — | 10,392 | ||||||||||||||||
Cash and short-term investments: | ||||||||||||||||||||
Short-term investments | 1,222 | 1,222 | — | — | ||||||||||||||||
Deposit administration contracts | 1,180 | — | 1,180 | — | ||||||||||||||||
Total cash and short-term investments | 2,402 | 1,222 | 1,180 | — | ||||||||||||||||
Total invested assets | $ | 253,521 | 230,535 | 12,594 | 10,392 | |||||||||||||||
31-Dec-13 | Fair Value Measurements at 12/31/13 Using | |||||||||||||||||||
($ in thousands) | Assets Measured at Fair Value At 12/31/13 | Quoted Prices in Active Markets for Identical Assets/ Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Description | ||||||||||||||||||||
Long duration fixed income: | ||||||||||||||||||||
Global asset allocation fund | $ | 26,984 | 26,984 | — | — | |||||||||||||||
Extended duration fixed income | 96,920 | 96,920 | — | — | ||||||||||||||||
Total long duration fixed income | 123,904 | 123,904 | — | — | ||||||||||||||||
Global equity: | ||||||||||||||||||||
Non-U.S. equity | 17,548 | 5,574 | 11,974 | — | ||||||||||||||||
U.S. equity | 43,112 | 43,112 | — | — | ||||||||||||||||
Total global equity | 60,660 | 48,686 | 11,974 | — | ||||||||||||||||
Global asset allocation | 27,257 | 27,257 | — | — | ||||||||||||||||
Private equity (limited partnerships): | ||||||||||||||||||||
Equity long/short hedge | 41 | — | — | 41 | ||||||||||||||||
Private equity | 9,899 | — | — | 9,899 | ||||||||||||||||
Real estate | 2,219 | — | — | 2,219 | ||||||||||||||||
Total private equity | 12,159 | — | — | 12,159 | ||||||||||||||||
Cash and short-term investments: | ||||||||||||||||||||
Short-term investments | 963 | 963 | — | — | ||||||||||||||||
Deposit administration contracts | 1,023 | — | 1,023 | — | ||||||||||||||||
Total cash and short-term investments | 1,986 | 963 | 1,023 | — | ||||||||||||||||
Total invested assets | $ | 225,966 | 200,810 | 12,997 | 12,159 | |||||||||||||||
Schedule of Other Investment Portfolio By Strategy And Remaining Commitment Amount Associated With Each Strategy | ||||||||||||||||||||
Alternative Investments | Carrying Value | 2014 | ||||||||||||||||||
December 31, | December 31, | Remaining | ||||||||||||||||||
($ in thousands) | 2014 | 2013 | Amount | |||||||||||||||||
Equity long/short hedge | $ | 41 | 41 | — | ||||||||||||||||
Private equity | 8,136 | 9,899 | 3,019 | |||||||||||||||||
Real estate | 2,215 | 2,219 | 536 | |||||||||||||||||
Total alternative investments | $ | 10,392 | 12,159 | 3,555 | ||||||||||||||||
ShareBased_Payments_Tables
Share-Based Payments (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Schedule of Summary of Stock Option Transactions under Share Based Payment Plans | ||||||||||||||
Number | Weighted | Weighted | Aggregate | |||||||||||
of Shares | Average | Average | Intrinsic Value | |||||||||||
Exercise | Remaining | ($ in thousands) | ||||||||||||
Price | Contractual | |||||||||||||
Life in Years | ||||||||||||||
Outstanding at December 31, 2013 | 903,439 | $ | 19.75 | |||||||||||
Granted in 2014 | — | — | ||||||||||||
Exercised in 2014 | 161,940 | 20.41 | ||||||||||||
Forfeited or expired in 2014 | 6,960 | 28.09 | ||||||||||||
Outstanding at December 31, 2014 | 734,539 | $ | 19.52 | 3.42 | $ | 5,695 | ||||||||
Exercisable at December 31, 2014 | 734,539 | $ | 19.52 | 3.42 | $ | 5,695 | ||||||||
Schedule of Summary of Restricted Stock Units Transactions under Share-Based Payment Plans | ||||||||||||||
Number | Weighted | |||||||||||||
of Shares | Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Unvested RSU awards at December 31, 2013 | 1,096,780 | $ | 18.73 | |||||||||||
Granted in 2014 | 374,963 | 21.58 | ||||||||||||
Vested in 2014 | 378,150 | 17.47 | ||||||||||||
Forfeited in 2014 | 16,583 | 19.19 | ||||||||||||
Unvested RSU awards at December 31, 2014 | 1,077,010 | $ | 20.18 | |||||||||||
Schedule of Weighted Average Assumptions for Employee Stock Purchase Plan | ||||||||||||||
ESPP | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Risk-free interest rate | 0.07 | % | 0.11 | 0.12 | ||||||||||
Expected term | 6 months | 6 months | 6 months | |||||||||||
Dividend yield | 2 | % | 2.4 | 2.9 | ||||||||||
Expected volatility | 21 | % | 19 | 24 | ||||||||||
Schedule of Weighted-Average Fair Value of Stock Per Share | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
RSUs | $ | 21.58 | 21.03 | 17.62 | ||||||||||
ESPP: | ||||||||||||||
Six month option | 1.24 | 0.97 | 1.05 | |||||||||||
Discount of grant date market value | 3.87 | 3.24 | 2.7 | |||||||||||
Total ESPP | 5.11 | 4.21 | 3.75 | |||||||||||
Agent Plan: | ||||||||||||||
Discount of grant date market value | 2.42 | 2.4 | 1.76 | |||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||
Schedule of Future Minimum Rental Commitments For Non-Cancelable Leases | |||||||||||
($ in millions) | Capital Leases | Operating Leases | Total | ||||||||
2015 | $ | 3.1 | $ | 9.1 | $ | 12.2 | |||||
2016 | 1.8 | 6.9 | 8.7 | ||||||||
2017 | 0.8 | 5.9 | 6.7 | ||||||||
2018 | — | 4.7 | 4.7 | ||||||||
2019 | — | 3.7 | 3.7 | ||||||||
After 2019 | — | 8.9 | 8.9 | ||||||||
Total minimum payment required | $ | 5.7 | $ | 39.2 | $ | 44.9 | |||||
Statutory_Financial_Informatio1
Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||
Schedule of Insurance Subsidiaries Statutory Surplus Data | |||||||||||||||||||||||||
State of Domicile | Unassigned Surplus | Statutory Surplus | Statutory Net Income | ||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2012 | ||||||||||||||||||
SICA | New Jersey | $ | 338.8 | 309.2 | 493 | 463.4 | 83.9 | 53.1 | 29.8 | ||||||||||||||||
Selective Way Insurance Company ("SWIC") | New Jersey | 201.3 | 201.3 | 250.3 | 250.3 | 37 | 27.5 | 10.1 | |||||||||||||||||
Selective Insurance Company of South Carolina ("SICSC") | Indiana | 83.9 | 80.7 | 115.1 | 111.9 | 14 | 8.2 | 2.8 | |||||||||||||||||
Selective Insurance Company of the Southeast ("SICSE") | Indiana | 59.3 | 56.2 | 84.9 | 81.8 | 10.5 | 6 | 1.6 | |||||||||||||||||
Selective Insurance Company of New York ("SICNY") | New York | 54.9 | 51.5 | 82.6 | 79.3 | 10.3 | 6.9 | 2.7 | |||||||||||||||||
Selective Insurance Company of New England ("SICNE") | New Jersey | 5.3 | 4.7 | 35.4 | 34.9 | 4.4 | 3.1 | 0.6 | |||||||||||||||||
Selective Auto Insurance Company of New Jersey ("SAICNJ") | New Jersey | 18.4 | 14.2 | 61.3 | 57 | 9.1 | 2.5 | 1.5 | |||||||||||||||||
MUSIC | New Jersey | (1.7 | ) | (6.2 | ) | 66.8 | 62.3 | 7.3 | 5.2 | 0.9 | |||||||||||||||
Selective Casualty Insurance Company ("SCIC") | New Jersey | 8.2 | 6.1 | 82.7 | 80.5 | 9.6 | 6.6 | 0.2 | |||||||||||||||||
Selective Fire and Casualty Insurance Company ("SFCIC") | New Jersey | 3.8 | 3.1 | 35.7 | 35 | 4.2 | 3.1 | 0.2 | |||||||||||||||||
Total | $ | 772.2 | 720.8 | 1,307.80 | 1,256.40 | 190.3 | 122.2 | 50.4 | |||||||||||||||||
Schedule of Insurance Subsidiaries Dividend Paid To Parent | |||||||||||||||||||||||||
Dividends | Twelve Months ended December 31, 2014 | ||||||||||||||||||||||||
($ in millions) | State of Domicile | Ordinary Dividends Paid | |||||||||||||||||||||||
SICA | New Jersey | $ | 22 | ||||||||||||||||||||||
SWIC | New Jersey | 18.2 | |||||||||||||||||||||||
SICSC | Indiana | 5 | |||||||||||||||||||||||
SICSE | Indiana | 2 | |||||||||||||||||||||||
SICNY | New York | 2.5 | |||||||||||||||||||||||
SICNE | New Jersey | 2 | |||||||||||||||||||||||
SAICNJ | New Jersey | 1 | |||||||||||||||||||||||
SCIC | New Jersey | 3 | |||||||||||||||||||||||
SFCIC | New Jersey | 1.8 | |||||||||||||||||||||||
Total | $ | 57.5 | |||||||||||||||||||||||
Schedule of Maximum Payments Insurance Subsidiaries Of Ordinary Dividends | |||||||||||||||||||||||||
2015 | |||||||||||||||||||||||||
($ in millions) | State of Domicile | Maximum Ordinary Dividends | |||||||||||||||||||||||
SICA | New Jersey | $ | 62.3 | ||||||||||||||||||||||
SWIC | New Jersey | 32.7 | |||||||||||||||||||||||
SICSC | Indiana | 14 | |||||||||||||||||||||||
SICSE | Indiana | 10.5 | |||||||||||||||||||||||
SICNY | New York | 8.3 | |||||||||||||||||||||||
SICNE | New Jersey | 4.4 | |||||||||||||||||||||||
SAICNJ | New Jersey | 8.9 | |||||||||||||||||||||||
MUSIC | New Jersey | 7.3 | |||||||||||||||||||||||
SCIC | New Jersey | 9.5 | |||||||||||||||||||||||
SFCIC | New Jersey | 4.1 | |||||||||||||||||||||||
Total | $ | 162 | |||||||||||||||||||||||
Quarterly_Financial_Informatio1
Quarterly Financial Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of Quarterly Financial Information | |||||||||||||||||||||||||
(unaudited, $ in thousands, | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||
except per share data) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Net premiums earned | 456,495 | 420,940 | 463,625 | 426,252 | 462,639 | 437,568 | 469,850 | 451,312 | |||||||||||||||||
Net investment income earned | 35,534 | 32,870 | 36,774 | 34,003 | 34,292 | 32,457 | 32,108 | 35,313 | |||||||||||||||||
Net realized gains (losses) | 7,218 | 3,355 | 4,539 | 5,154 | 15,231 | 13,431 | (389 | ) | (1,208 | ) | |||||||||||||||
Underwriting (loss) income | (5,015 | ) | 12,161 | 10,084 | 4,483 | 34,437 | 10,151 | 38,637 | 11,971 | ||||||||||||||||
Net income from continuing operations | 17,974 | 22,305 | 29,341 | 27,122 | 53,162 | 32,653 | 41,350 | 25,335 | |||||||||||||||||
Loss on disposal of discontinued operations, net of tax | — | (997 | ) | — | — | — | — | — | — | ||||||||||||||||
Net income | 17,974 | 21,308 | 29,341 | 27,122 | 53,162 | 32,653 | 41,350 | 25,335 | |||||||||||||||||
Other comprehensive income (loss) | 16,678 | 27,881 | 26,483 | (62,643 | ) | (18,887 | ) | (2,195 | ) | (29,337 | ) | 7,768 | |||||||||||||
Comprehensive income (loss) | 34,652 | 49,189 | 55,824 | (35,521 | ) | 34,275 | 30,458 | 12,013 | 33,103 | ||||||||||||||||
Net income per share: | |||||||||||||||||||||||||
Basic | 0.32 | 0.38 | 0.52 | 0.49 | 0.94 | 0.59 | 0.73 | 0.45 | |||||||||||||||||
Diluted | 0.31 | 0.38 | 0.51 | 0.48 | 0.93 | 0.57 | 0.72 | 0.44 | |||||||||||||||||
Dividends to stockholders1 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.14 | 0.13 | |||||||||||||||||
Price range of common stock:2 | |||||||||||||||||||||||||
High | 26.99 | 24.13 | 25.42 | 24.75 | 25.46 | 25.95 | 27.65 | 28.31 | |||||||||||||||||
Low | 21.38 | 19.53 | 22.14 | 19.58 | 21.97 | 22.61 | 22.01 | 23.55 | |||||||||||||||||
The addition of all quarters may not agree to annual amounts on the Financial Statements due to rounding. | |||||||||||||||||||||||||
1 See Note 20. “Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds” for a discussion of dividend restrictions. | |||||||||||||||||||||||||
2 These ranges of high and low prices of the Parent’s common stock, as reported by the NASDAQ Global Select Market, represent actual transactions. Price quotations do not include retail markups, markdowns, and commissions. The range of high and low prices for common stock for the period beginning January 2, 2015 and ending February 13, 2015 was $25.49 to $28.08. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Depreciation | $12.60 | $10.20 | $9.20 | |||
Percentage of fixed maturity portfolio utilizing market approach | 99.00% | |||||
Investment yields before tax assumed in premium deficiency assessment | 3.00% | 3.00% | 3.10% | |||
Deferred policy acquisition costs amortized to expense | $364.30 | $331.80 | $298.50 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Computer hardware [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 |
Internally developed software [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 |
Furniture and fixtures [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 10 |
Maximum [Member] | Computer software [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 |
Maximum [Member] | Building and improvements [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 40 |
Minimum [Member] | Computer software [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 |
Minimum [Member] | Building and improvements [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 |
Statements_of_Cash_Flow_Cash_F
Statements of Cash Flow (Cash Flow Supplemental Disclosures) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Interest | $22,221,000 | $21,465,000 | $18,779,000 |
Federal income tax | 22,699,000 | 20,000,000 | 6,421,000 |
Stock Split Related To Equity Securities, AFS | 334,000 | 0 | 0 |
Assets acquired under capital lease arrangement | 5,642,000 | 2,583,000 | 2,091,000 |
Non-Cash Purchase Of Property and Equipment [Line Items] | 338,000 | 20,000 | 0 |
National Flood Insurance Program [Member] | |||
Restricted cash | 6,000,000 | 7,300,000 | |
Afs Fixed Maturity Securities [Member] | |||
Fair Value of Assets Acquired | 20,781,000 | 37,965,000 | 18,942,000 |
Held-to-maturity Securities [Member] | |||
Fair Value of Assets Acquired | $4,289,000 | $15,820,000 | $25,168,000 |
Investments_Unrealized_Gains_o
Investments (Unrealized Gains on Investments) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net unrealized gains | $123,683 | $79,237 | $188,197 |
Deferred income tax expense | -43,289 | -27,733 | -65,869 |
Net unrealized gains, net of deferred income tax | 80,394 | 51,504 | 122,328 |
Increase (Decrease) in net unrealized gains in OCI, net of deferred income tax | 28,890 | -70,824 | 25,080 |
AFS Fixed Income Securities [Member] | |||
Net unrealized gains | 90,336 | 39,559 | 165,330 |
Equity Securities [Member] | |||
Net unrealized gains | 32,389 | 37,421 | 18,941 |
Available-for-sale Securities [Member] | |||
Net unrealized gains | 122,725 | 76,980 | 184,271 |
Total HTM Securities [Member] | |||
Net unrealized gains | $958 | $2,257 | $3,926 |
Investments_HeldToMaturity_Sec
Investments (Held-To-Maturity Securities Disclosure) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Amortized Cost | $317,179 | $390,622 |
Net Unrealized Gains (Losses) | 958 | 2,257 |
Total HTM fixed income securities carrying value | 318,137 | 392,879 |
Unrecognized Holding Gains | 15,824 | 24,102 |
Unrecognized Holding Losses | 0 | 0 |
Total HTM fixed income securities fair value | 333,961 | 416,981 |
Held To Maturity Securities Average Duration | 1 year 8 months 8 days | |
Foreign Government [Member] | ||
Amortized Cost | 5,292 | 5,292 |
Net Unrealized Gains (Losses) | 47 | 131 |
Total HTM fixed income securities carrying value | 5,339 | 5,423 |
Unrecognized Holding Gains | 55 | 168 |
Unrecognized Holding Losses | 0 | 0 |
Total HTM fixed income securities fair value | 5,394 | 5,591 |
Obligations of States and Political Subdivisions [Member] | ||
Amortized Cost | 285,301 | 348,109 |
Net Unrealized Gains (Losses) | 2,071 | 4,013 |
Total HTM fixed income securities carrying value | 287,372 | 352,122 |
Unrecognized Holding Gains | 11,760 | 17,634 |
Unrecognized Holding Losses | 0 | 0 |
Total HTM fixed income securities fair value | 299,132 | 369,756 |
Corporate Securities [Member] | ||
Amortized Cost | 18,899 | 28,174 |
Net Unrealized Gains (Losses) | -273 | -346 |
Total HTM fixed income securities carrying value | 18,626 | 27,828 |
Unrecognized Holding Gains | 2,796 | 2,446 |
Unrecognized Holding Losses | 0 | 0 |
Total HTM fixed income securities fair value | 21,422 | 30,274 |
Asset-backed Securities [Member] | ||
Amortized Cost | 2,818 | 3,413 |
Net Unrealized Gains (Losses) | -455 | -655 |
Total HTM fixed income securities carrying value | 2,363 | 2,758 |
Unrecognized Holding Gains | 460 | 657 |
Unrecognized Holding Losses | 0 | 0 |
Total HTM fixed income securities fair value | 2,823 | 3,415 |
Commercial Mortgage Backed Securities [Member] | ||
Amortized Cost | 4,869 | 5,634 |
Net Unrealized Gains (Losses) | -432 | -886 |
Total HTM fixed income securities carrying value | 4,437 | 4,748 |
Unrecognized Holding Gains | 753 | 3,197 |
Unrecognized Holding Losses | 0 | 0 |
Total HTM fixed income securities fair value | $5,190 | $7,945 |
Investments_AvailableForSale_S
Investments (Available-For-Sale Securities Disclosure) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | $4,134,797,000 | $3,831,327,000 | ||
Unrealized Gains | 133,299,000 | 128,951,000 | ||
Unrealized Losses | -10,574,000 | -51,971,000 | ||
Total AFS securities | 4,257,522,000 | 3,908,307,000 | ||
AFS Fixed Income Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | 3,975,786,000 | 3,675,977,000 | ||
Unrealized Gains | 100,578,000 | 91,434,000 | ||
Unrealized Losses | -10,242,000 | -51,875,000 | ||
Total AFS securities | 4,066,122,000 | 3,715,536,000 | ||
AFS Fixed Income Securities [Member] | U.S. Government and Government Agencies [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | 116,666,000 | 163,218,000 | ||
Unrealized Gains | 7,592,000 | 10,661,000 | ||
Unrealized Losses | -128,000 | -504,000 | ||
Total AFS securities | 124,130,000 | 173,375,000 | ||
AFS Fixed Income Securities [Member] | Foreign Government [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | 27,035,000 | 29,781,000 | ||
Unrealized Gains | 796,000 | 906,000 | ||
Unrealized Losses | 0 | -72,000 | ||
Total AFS securities | 27,831,000 | 30,615,000 | ||
AFS Fixed Income Securities [Member] | Obligations of States and Political Subdivisions [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | 1,208,776,000 | 946,455,000 | ||
Unrealized Gains | 38,217,000 | 25,194,000 | ||
Unrealized Losses | -729,000 | -20,025,000 | ||
Total AFS securities | 1,246,264,000 | 951,624,000 | ||
AFS Fixed Income Securities [Member] | Corporate Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | 1,763,427,000 | 1,707,928,000 | ||
Unrealized Gains | 42,188,000 | 44,004,000 | ||
Unrealized Losses | -5,809,000 | -17,049,000 | ||
Total AFS securities | 1,799,806,000 | 1,734,883,000 | ||
AFS Fixed Income Securities [Member] | Asset-backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | 176,837,000 | 140,430,000 | ||
Unrealized Gains | 760,000 | 934,000 | ||
Unrealized Losses | -373,000 | -468,000 | ||
Total AFS securities | 177,224,000 | 140,896,000 | ||
AFS Fixed Income Securities [Member] | Commercial Mortgage Backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | 177,932,000 | [1] | 172,288,000 | [1] |
Unrealized Gains | 2,438,000 | [1] | 2,462,000 | [1] |
Unrealized Losses | -777,000 | [1] | -3,466,000 | [1] |
Total AFS securities | 179,593,000 | [1] | 171,284,000 | [1] |
Government guaranteed agency securities fair value | 13,200,000 | 30,000,000 | ||
AFS Fixed Income Securities [Member] | Residential Mortgage Backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | 505,113,000 | [2] | 515,877,000 | [2] |
Unrealized Gains | 8,587,000 | [2] | 7,273,000 | [2] |
Unrealized Losses | -2,426,000 | [2] | -10,291,000 | [2] |
Total AFS securities | 511,274,000 | [2] | 512,859,000 | [2] |
Government guaranteed agency securities fair value | 32,400,000 | 55,200,000 | ||
Equity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | 159,011,000 | 155,350,000 | ||
Unrealized Gains | 32,721,000 | 37,517,000 | ||
Unrealized Losses | -332,000 | -96,000 | ||
Total AFS securities | $191,400,000 | $192,771,000 | ||
[1] | CMBS includes government guaranteed agency securities with a fair value of $13.2 million at December 31, 2014 and $30.0 million at December 31, 2013 | |||
[2] | RMBS includes government guaranteed agency securities with a fair value of $32.4 million at December 31, 2014 and $55.2 million at December 31, 2013. |
Investments_Fair_Value_and_Gro
Investments (Fair Value and Gross Pre-Tax Net Unrealized Unrecognized Loss of Securities By Length of Time) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
AFS Fair Value, Less than 12 months | $466,387 | $1,411,803 | ||
AFS Unrealized Losses, Less than 12 months | -2,408 | [1] | -49,106 | [1] |
AFS Fair Value, 12 months or longer | 442,058 | 40,731 | ||
AFS Unrealized Loss, 12 Months or Longer | -8,170 | [1] | -2,865 | [1] |
HTM Fair Value, Less than 12 months | 196 | 65 | ||
HTM Unrealized Losses, Less than 12 months | -3 | [1] | -5 | [1] |
HTM Unrecognized Gains, Less than 12 months | 1 | 5 | ||
HTM Fair Value, 12 months or longer | 2,235 | 2,931 | ||
HTM Unrealized Losses, 12 Months or Longer | -455 | [1] | -675 | [1] |
HTM Unrecognized Gains, 12 months or longer | 439 | 635 | ||
Available For Sale and Held To Maturity Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value | 466,583 | 1,411,868 | ||
Available For Sale And Held To Maturity Securities Continuous Unrealized Loss Position Less Than Twelve Months Aggregate Losses | 2,411 | [1] | 49,111 | [1] |
Held To Maturity And Available For Sale Securities Unrecognized Gains Losses Aggregate Continuous Unrealized Loss Position Less Than Twelve Months | 1 | 5 | ||
Available For Sale and Held To Maturity Securities Continuous Unrealized Loss Position Twelve Months Or Longer Fair Value | 444,293 | 43,662 | ||
Available For Sale And Held To Maturity Securities Continuous Unrealized Loss Position Twelve Months Or Longer Aggregate Losses | 8,625 | [1] | 3,540 | [1] |
Held To Maturity And Available For Sale Securities Unrecognized Gains Losses Aggregate Continuous Unrealized Loss Position For Twelve Months Or Longer | 439 | 635 | ||
Obligations of States and Political Subdivisions [Member] | ||||
HTM Fair Value, Less than 12 months | 196 | 65 | ||
HTM Unrealized Losses, Less than 12 months | -3 | [1] | -5 | [1] |
HTM Unrecognized Gains, Less than 12 months | 1 | 5 | ||
HTM Fair Value, 12 months or longer | 0 | 441 | ||
HTM Unrealized Losses, 12 Months or Longer | 0 | [1] | -20 | [1] |
HTM Unrecognized Gains, 12 months or longer | 0 | 14 | ||
Asset-backed Securities [Member] | ||||
HTM Fair Value, Less than 12 months | 0 | 0 | ||
HTM Unrealized Losses, Less than 12 months | 0 | [1] | 0 | [1] |
HTM Unrecognized Gains, Less than 12 months | 0 | 0 | ||
HTM Fair Value, 12 months or longer | 2,235 | 2,490 | ||
HTM Unrealized Losses, 12 Months or Longer | -455 | [1] | -655 | [1] |
HTM Unrecognized Gains, 12 months or longer | 439 | 621 | ||
AFS Fixed Income Securities [Member] | ||||
AFS Fair Value, Less than 12 months | 461,125 | 1,410,679 | ||
AFS Unrealized Losses, Less than 12 months | -2,072 | [1] | -49,010 | [1] |
AFS Fair Value, 12 months or longer | 442,058 | 40,731 | ||
AFS Unrealized Loss, 12 Months or Longer | -8,170 | [1] | -2,865 | [1] |
AFS Fixed Income Securities [Member] | U.S. Government and Government Agencies [Member] | ||||
AFS Fair Value, Less than 12 months | 7,567 | 16,955 | ||
AFS Unrealized Losses, Less than 12 months | -13 | [1] | -500 | [1] |
AFS Fair Value, 12 months or longer | 10,866 | 507 | ||
AFS Unrealized Loss, 12 Months or Longer | -115 | [1] | -4 | [1] |
AFS Fixed Income Securities [Member] | Foreign Government [Member] | ||||
AFS Fair Value, Less than 12 months | 2,029 | |||
AFS Unrealized Losses, Less than 12 months | -30 | [1] | ||
AFS Fair Value, 12 months or longer | 2,955 | |||
AFS Unrealized Loss, 12 Months or Longer | -42 | [1] | ||
AFS Fixed Income Securities [Member] | Obligations of States and Political Subdivisions [Member] | ||||
AFS Fair Value, Less than 12 months | 47,510 | 442,531 | ||
AFS Unrealized Losses, Less than 12 months | -105 | [1] | -19,120 | [1] |
AFS Fair Value, 12 months or longer | 64,018 | 13,530 | ||
AFS Unrealized Loss, 12 Months or Longer | -624 | [1] | -905 | [1] |
AFS Fixed Income Securities [Member] | Corporate Securities [Member] | ||||
AFS Fair Value, Less than 12 months | 276,648 | 511,100 | ||
AFS Unrealized Losses, Less than 12 months | -1,734 | [1] | -15,911 | [1] |
AFS Fair Value, 12 months or longer | 153,613 | 14,771 | ||
AFS Unrealized Loss, 12 Months or Longer | -4,075 | [1] | -1,138 | [1] |
AFS Fixed Income Securities [Member] | Asset-backed Securities [Member] | ||||
AFS Fair Value, Less than 12 months | 113,202 | 68,725 | ||
AFS Unrealized Losses, Less than 12 months | -178 | [1] | -468 | [1] |
AFS Fair Value, 12 months or longer | 15,618 | 0 | ||
AFS Unrealized Loss, 12 Months or Longer | -195 | [1] | 0 | [1] |
AFS Fixed Income Securities [Member] | Commercial Mortgage Backed Securities [Member] | ||||
AFS Fair Value, Less than 12 months | 12,799 | 100,396 | ||
AFS Unrealized Losses, Less than 12 months | -34 | [1] | -2,950 | [1] |
AFS Fair Value, 12 months or longer | 59,219 | 6,298 | ||
AFS Unrealized Loss, 12 Months or Longer | -743 | [1] | -516 | [1] |
AFS Fixed Income Securities [Member] | Residential Mortgage Backed Securities [Member] | ||||
AFS Fair Value, Less than 12 months | 3,399 | 268,943 | ||
AFS Unrealized Losses, Less than 12 months | -8 | [1] | -10,031 | [1] |
AFS Fair Value, 12 months or longer | 138,724 | 2,670 | ||
AFS Unrealized Loss, 12 Months or Longer | -2,418 | [1] | -260 | [1] |
Equity Securities [Member] | ||||
AFS Fair Value, Less than 12 months | 5,262 | 1,124 | ||
AFS Unrealized Losses, Less than 12 months | -336 | [1] | -96 | [1] |
AFS Fair Value, 12 months or longer | 0 | 0 | ||
AFS Unrealized Loss, 12 Months or Longer | $0 | [1] | $0 | [1] |
[1] | Gross unrealized losses include non-OTTI unrealized amounts and OTTI losses recognized in AOCI. In addition, this column includes remaining unrealized gain or loss amounts on securities that were transferred to an HTM designation in the first quarter of 2009 for those securities that are in a net unrealized/unrecognized loss position. |
Investments_Number_of_Securiti
Investments (Number of Securities in an Unrealized Unrecognized Loss Position) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Securities | ||
Number of securities in an unrealized/unrecognized loss position | 350 | 557 |
Unrealized Unrecognized Loss | 10,596,000 | $52,011,000 |
Securities In Unrealized Unrecognized Loss Position For More Than Twelve Months | 8,200,000 | 2,900,000 |
Number Of Securities With Unrealized Unrecognized Losses Over 12 Months That Experienced Rating Downgrade | 1 | |
Percentage Decline in Fair Value Percentage | 2.00% | 6.00% |
Eighty Percent to Ninety-Nine Percent [Member] | ||
Number of securities in an unrealized/unrecognized loss position | 350 | 556 |
Unrealized Unrecognized Loss | 10,596,000 | 51,835,000 |
Sixty Percent to Seventy-Nine Percent [Member] | ||
Number of securities in an unrealized/unrecognized loss position | 0 | 1 |
Unrealized Unrecognized Loss | 0 | 176,000 |
Forty Percent to Fifty-Nine Percent [Member] | ||
Number of securities in an unrealized/unrecognized loss position | 0 | 0 |
Unrealized Unrecognized Loss | 0 | 0 |
Twenty Percent to Thirty-Nine Percent [Member] | ||
Number of securities in an unrealized/unrecognized loss position | 0 | 0 |
Unrealized Unrecognized Loss | 0 | 0 |
Zero Percent to Nineteen Percent [Member] | ||
Number of securities in an unrealized/unrecognized loss position | 0 | 0 |
Unrealized Unrecognized Loss | 0 | 0 |
10 Year U.S. Treasury Note [Member] | ||
Increase of Yield on Note | 86 | |
Securities With Rating Downgrades [Member] | ||
Percentage Decline in Fair Value Percentage | 13.00% | 9.00% |
Securities Rating Downgrade [Member] | ||
Unrealized Unrecognized Loss | 1,100,000 |
Investments_HTM_Fixed_Maturity
Investments (HTM Fixed Maturity Securities by Contractual Maturity) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Due in one year or less carrying value | $113,266 | |
Due after one year through five years carrying value | 193,983 | |
Due after five years through 10 years carrying value | 10,888 | |
Total HTM fixed income securities carrying value | 318,137 | 392,879 |
Due in one year or less fair value | 114,795 | |
Due after one year through five years fair value | 206,188 | |
Due after five years through 10 years fair value | 12,978 | |
Total HTM fixed income securities fair value | $333,961 | $416,981 |
Investments_AFS_Fixed_Maturity
Investments (AFS Fixed Maturity Securities by Contractual Maturity) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments [Abstract] | ||
Due in one year or less fair value | $435,190 | |
Due after one year through five years fair value | 1,961,179 | |
Due after five years through 10 years fair value | 1,593,287 | |
Due after 10 years fair value | 76,466 | |
Total AFS fixed maturity securities | $4,066,122 | $3,715,536 |
Investments_Other_Investment_P
Investments (Other Investment Portfolio by Strategy and the Remaining Commitment Amount Associated With Each Strategy) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Value | $99,203 | $107,875 |
Alternative Investments [Member] | ||
Carrying Value | 92,968 | 106,211 |
Remaining Commitment | 64,720 | |
Other Investment Portfolio [Member] | ||
Carrying Value | 99,203 | 107,875 |
Remaining Commitment | 68,431 | |
Secondary Private Equity [Member] | Alternative Investments [Member] | ||
Carrying Value | 21,807 | 25,618 |
Remaining Commitment | 7,001 | |
Private Equity [Member] | Alternative Investments [Member] | ||
Carrying Value | 20,126 | 20,192 |
Remaining Commitment | 8,890 | |
Energy Power Generation [Member] | Alternative Investments [Member] | ||
Carrying Value | 14,445 | 17,361 |
Remaining Commitment | 21,905 | |
Real Estate [Member] | Alternative Investments [Member] | ||
Carrying Value | 11,452 | 11,698 |
Remaining Commitment | 10,051 | |
Mezzanine Financing [Member] | Alternative Investments [Member] | ||
Carrying Value | 9,853 | 12,738 |
Remaining Commitment | 13,541 | |
Distressed Debt [Member] | Alternative Investments [Member] | ||
Carrying Value | 8,679 | 11,579 |
Remaining Commitment | 2,982 | |
Venture Capital Funds [Member] | Alternative Investments [Member] | ||
Carrying Value | 6,606 | 7,025 |
Remaining Commitment | 350 | |
Other Securities [Member] | ||
Carrying Value | 6,235 | 1,664 |
Remaining Commitment | $3,711 |
Investments_Aggregated_Balance
Investments (Aggregated Balance Sheet Summarized Financial Information for Partnerhips in our Alternative Investment Portfolio) (Details) (Details) (Investments Accounted For Under The Equity Method [Member], USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Investments Accounted For Under The Equity Method [Member] | ||
Investments | $10,096 | $11,020 |
Total assets | 10,695 | 11,727 |
Total liabilities | 545 | 573 |
Partners' capital | $10,150 | $11,154 |
Investments_Aggregated_Income_
Investments (Aggregated Income Statement Summarized Financial Information for Partnerhips in our Alternative Investment Portfolio) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Net investment income earned | $32,108,000 | $34,292,000 | $36,774,000 | $35,534,000 | $35,313,000 | $32,457,000 | $34,003,000 | $32,870,000 | $138,708,000 | $134,643,000 | $131,877,000 | |||
Investments Accounted For Under The Equity Method [Member] | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Net Investment Income | 226,000,000 | 406,000,000 | 226,000,000 | |||||||||||
Realized gains | 581,000,000 | 913,000,000 | 1,015,000,000 | |||||||||||
Net change in unrealized appreciation (depreciation) | 1,098,000,000 | 382,000,000 | -100,000,000 | |||||||||||
Net Income | 1,905,000,000 | 1,701,000,000 | 1,141,000,000 | |||||||||||
Partnership Interest [Member] | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Net investment income earned | $13,600,000 | $15,200,000 | $9,000,000 |
Investments_Investments_Pledge
Investments (Investments Pledged as Collateral) (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | $60.70 | |
Outstanding borrowing with the Federal Home Loan Bank of Indianapolis | 45 | |
Securities pledged as collateral for reinsurance obligations | 100.4 | |
Securities Pledged As Collateral For Reinsurance Obligations | 14.4 | |
Assets Held by Insurance Regulators | 25.3 | |
U.S. Government and Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 7.7 | |
Securities pledged as collateral for reinsurance obligations | 33 | |
Securities Pledged As Collateral For Reinsurance Obligations | 0 | |
Assets Held by Insurance Regulators | 25.3 | |
Obligations of States and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 0 | |
Securities pledged as collateral for reinsurance obligations | 5.7 | |
Securities Pledged As Collateral For Reinsurance Obligations | 5.7 | |
Assets Held by Insurance Regulators | 0 | |
Corporate Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 0 | |
Securities pledged as collateral for reinsurance obligations | 5.3 | |
Securities Pledged As Collateral For Reinsurance Obligations | 5.3 | |
Assets Held by Insurance Regulators | 0 | |
Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 0 | |
Securities pledged as collateral for reinsurance obligations | 1.1 | |
Securities Pledged As Collateral For Reinsurance Obligations | 1.1 | |
Assets Held by Insurance Regulators | 0 | |
Commercial Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 2.2 | |
Securities pledged as collateral for reinsurance obligations | 2.2 | |
Securities Pledged As Collateral For Reinsurance Obligations | 0 | |
Assets Held by Insurance Regulators | 0 | |
Residential Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 50.8 | |
Securities pledged as collateral for reinsurance obligations | 53.1 | |
Securities Pledged As Collateral For Reinsurance Obligations | 2.3 | |
Assets Held by Insurance Regulators | $0 |
Investments_Net_Investment_Inc
Investments (Net Investment Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement [Line Items] | |||||||||||
Net investment income earned | $32,108 | $34,292 | $36,774 | $35,534 | $35,313 | $32,457 | $34,003 | $32,870 | $138,708 | $134,643 | $131,877 |
Fixed Income Securities [Member] | |||||||||||
Statement [Line Items] | |||||||||||
Net investment income earned | 126,489 | 121,582 | 124,687 | ||||||||
Equity Securities, Dividend Income [Member] | |||||||||||
Statement [Line Items] | |||||||||||
Net investment income earned | 7,449 | 6,140 | 6,215 | ||||||||
Short-term Investments [Member] | |||||||||||
Statement [Line Items] | |||||||||||
Net investment income earned | 66 | 117 | 151 | ||||||||
Other Investment Portfolio [Member] | |||||||||||
Statement [Line Items] | |||||||||||
Net investment income earned | 13,580 | 15,208 | 8,996 | ||||||||
Investment Expenses [Member] | |||||||||||
Statement [Line Items] | |||||||||||
Net investment income earned | ($8,876) | ($8,404) | ($8,172) |
Investments_OTTI_by_Asset_Type
Investments (OTTI by Asset Type) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OTTI Losses Gross | $11,104 | $5,566 | $1,711 |
OTTI included in OCI | 0 | -77 | -2,553 |
Total OTTI charges recognized in earnings | 11,104 | 5,643 | 4,264 |
Fixed Income Securities [Member] | AFS Fixed Income Securities [Member] | |||
OTTI Losses Gross | 7 | 16 | -1,462 |
OTTI included in OCI | 0 | -30 | -2,553 |
Total OTTI charges recognized in earnings | 7 | 46 | 1,091 |
Equity Securities [Member] | |||
OTTI Losses Gross | 10,517 | 3,747 | 3,173 |
OTTI included in OCI | 0 | 0 | 0 |
Total OTTI charges recognized in earnings | 10,517 | 3,747 | 3,173 |
Other Investments [Member] | |||
OTTI Losses Gross | 580 | 1,847 | |
OTTI included in OCI | 0 | 0 | |
Total OTTI charges recognized in earnings | 580 | 1,847 | |
Available-for-sale Securities [Member] | |||
OTTI Losses Gross | 10,524 | 3,763 | |
OTTI included in OCI | 0 | -30 | |
Total OTTI charges recognized in earnings | 10,524 | 3,793 | |
Fixed Income Securities [Member] | Asset-backed Securities [Member] | AFS Fixed Income Securities [Member] | |||
OTTI Losses Gross | 98 | ||
OTTI included in OCI | 0 | ||
Total OTTI charges recognized in earnings | 98 | ||
Fixed Income Securities [Member] | Asset-backed Securities [Member] | Held To Maturity Fixed Maturity Securities [Member] | |||
OTTI Losses Gross | -44 | ||
OTTI included in OCI | -47 | ||
Total OTTI charges recognized in earnings | 3 | ||
Fixed Income Securities [Member] | Commercial Mortgage Backed Securities [Member] | AFS Fixed Income Securities [Member] | |||
OTTI Losses Gross | -1,525 | ||
OTTI included in OCI | -2,335 | ||
Total OTTI charges recognized in earnings | 810 | ||
Fixed Income Securities [Member] | Residential Mortgage Backed Securities [Member] | AFS Fixed Income Securities [Member] | |||
OTTI Losses Gross | 7 | 16 | -35 |
OTTI included in OCI | 0 | -30 | -218 |
Total OTTI charges recognized in earnings | 7 | 46 | 183 |
Securities Which Will Not Recover In The Near Term [Member] | Equity Securities [Member] | |||
Total OTTI charges recognized in earnings | 2,000 | 1,000 | |
Securities In Loss Position With Intent to Sell [Member] | Equity Securities [Member] | |||
Total OTTI charges recognized in earnings | $9,000 | $1,700 | $2,200 |
Investments_Gross_Credit_Loss_
Investments (Gross Credit Loss Impairments of Fixed Maturity Securities for Which a Portion of the OTTI Charge was Recognized in OCI) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments [Abstract] | |||
Balance, beginning of year | $7,488 | $7,477 | $6,602 |
Addition for the amount related to credit loss for which an OTTI was not previously recognized | 0 | 0 | 0 |
Reductions for securities sold during the period | -2,044 | 0 | 0 |
Reductions for securities for which the amount previously recognized in OCI was recognized in earnings because of intention or potential requirement to sell before recovery of amortized cost | 0 | 0 | 0 |
Reductions for securities for which the entire amount previously recognized in OCI was recognized in earnings due to a decrease in cash flows expected | 0 | 0 | 0 |
Additional increases to the amount related to credit loss for which an OTTI was previously recognized | 0 | 11 | 875 |
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | 0 | 0 | 0 |
Balance, end of year | $5,444 | $7,488 | $7,477 |
Investments_Components_Of_Net_
Investments (Components Of Net Realized Gains, Excluding OTTI Charges) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Available-for-sale Securities [Line Items] | |||||||||||
HTM fixed income securities gains | $2,000 | $195,000 | $194,000 | ||||||||
HTM fixed income securities losses | -20,000 | -95,000 | -217,000 | ||||||||
Short term investments realized losses | 0 | 0 | -2,000 | ||||||||
Other investment securities gains | 1,000 | 0 | 1,000 | ||||||||
Other investment securities losses | 0 | -1,060,000 | -400,000 | ||||||||
Net realized investment gains | -389,000 | 15,231,000 | 4,539,000 | 7,218,000 | -1,208,000 | 13,431,000 | 5,154,000 | 3,355,000 | 37,703,000 | 26,375,000 | 13,252,000 |
Proceeds from sale of available-for-sale securities | 259,000,000 | 135,900,000 | 205,300,000 | ||||||||
Realized Gains On Equity Portfolio Related To Change In Strategy [Member] | |||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||
AFS securities gains | 9,200,000 | ||||||||||
Fixed Income Securities [Member] | |||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||
AFS securities gains | 1,945,000 | 3,340,000 | 4,452,000 | ||||||||
AFS securities losses | -392,000 | -373,000 | -472,000 | ||||||||
Equity Securities [Member] | |||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||
AFS securities gains | 36,871,000 | 24,776,000 | 10,901,000 | ||||||||
AFS securities losses | ($704,000) | ($408,000) | ($1,205,000) |
Stockholders_Equity_and_Compre2
Stockholders' Equity and Comprehensive Income (Purchase of Parent's Common Stock) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||
Shares reserved for various stock compensation, purchase plans, retirement plan and dividend reinvestment plans | 13,300,000 | ||
Shares Purchased in Connection with Restricted Stock Vestings and Stock Option Exercises | 154,559 | 167,846 | 194,575 |
Cost of Shares Purchased in Connection with Restricted Stock Vestings and Stock Option Exercises | $3,563 | $3,716 | $3,495 |
Stockholders_Equity_and_Compre3
Stockholders' Equity and Comprehensive Income (Components of Comprehensive Income-Gross and Net of Tax) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Loss From Continuing Operations And Discontinued Operations Before Federal Income Tax | $142,267 | ||||||||||
Net Income, Gross | 197,131 | 143,802 | 37,635 | ||||||||
Income From Continuing Operations And Discontinued Operations Tax | 35,849 | ||||||||||
Net Income, Tax | 55,304 | 36,387 | -328 | ||||||||
Net income | 41,350 | 53,162 | 29,341 | 17,974 | 25,335 | 32,653 | 27,122 | 21,308 | 141,827 | 106,418 | 37,963 |
Unrealized holding gains (losses) during the period, Gross | 72,940 | -83,934 | 47,594 | ||||||||
Unrealized holding gains (losses) during the period, Tax | 25,529 | -29,377 | 16,657 | ||||||||
Unrealized holding gains (losses) arising during period | 47,411 | -54,557 | 30,937 | ||||||||
Non-credit portion of other-than-temporary impairment losses recognized in other comprehensive income, Gross | 77 | 2,554 | |||||||||
Non-credit portion of other-than-temporary impairment losses recognized in other comprehensive income, Tax | 27 | 894 | |||||||||
Non-credit portion of other-than-temporary impairments recognized in other comprehensive income | 50 | 1,660 | |||||||||
Amount reclassified into net income: HTM securities, Gross | -1,299 | -1,577 | -2,432 | ||||||||
Amounts reclassified into net income: HTM securities, Tax | -455 | -552 | -851 | ||||||||
Amount reclassified from AOCI, HTM | -844 | -1,025 | -1,581 | ||||||||
Non-credit OTTI, Gross | 1,669 | 14 | 280 | ||||||||
Non-credit OTTI, Tax | 584 | 5 | 98 | ||||||||
Amounts reclassified into net income: Non-credit other-than-temporary impairment | 1,085 | 9 | 182 | ||||||||
Realized gains on AFS securities, Gross | -28,864 | -23,540 | -9,412 | ||||||||
Realized gains on AFS securities, Tax | -10,102 | -8,239 | -3,294 | ||||||||
Realized gains on available for sale securities | -18,762 | -15,301 | -6,118 | ||||||||
Net unrealized gains (losses), Gross | 44,446 | -108,960 | 38,584 | ||||||||
Net unrealized gains (losses), Tax | 15,556 | -38,136 | 13,504 | ||||||||
Total unrealized gains (losses) on investment securities | 28,890 | -70,824 | 25,080 | ||||||||
Net actuarial gain (loss), Gross | -54,136 | 59,654 | -26,566 | ||||||||
Net actuarial gain (loss), Tax | -18,947 | 20,879 | -9,298 | ||||||||
Net actuarial (loss) gain | -35,189 | 38,775 | -17,268 | ||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | 1,902 | 4,374 | 5,903 | ||||||||
Amount reclassified into Net Income: Net actuarial loss, Tax | 666 | 1,531 | 2,066 | ||||||||
Amount reclassified into net income: Net actuarial loss | 1,236 | 2,843 | 3,837 | ||||||||
Amount reclassified into Net Income: Prior service cost, Gross | 10 | 150 | |||||||||
Amount reclassified into Net Income: Prior service cost, Tax | 4 | 53 | |||||||||
Amount reclassified into net income: Prior service cost | 0 | 6 | 97 | ||||||||
Amount reclassified into Net Income: Curtailment expense, Gross | 16 | ||||||||||
Amount reclassified into Net Income: Curtailment expense, Tax | 5 | ||||||||||
Amount reclassified into net income: Curtailment expense, Net of tax | 11 | ||||||||||
Defined pension and other post-retirement benefit plans, Gross | -52,234 | 64,054 | -20,513 | ||||||||
Defined pension and other post-retirement benefit plans, Tax | -18,281 | 22,419 | -7,179 | ||||||||
Total defined benefit pension and post-retirement plans | -33,953 | 41,635 | -13,334 | ||||||||
Other Comprehensive (Loss) Income, Gross | -7,788 | -44,906 | 18,071 | ||||||||
Other Comprehensive (Loss) Income, Tax | -2,725 | -15,717 | 6,325 | ||||||||
Other comprehensive (loss) income | -29,337 | -18,887 | 26,483 | 16,678 | 7,768 | -2,195 | -62,643 | 27,881 | -5,063 | -29,189 | 11,746 |
Comprehensive income, Gross | 189,343 | 97,361 | 55,706 | ||||||||
Comprehensive income, Tax | 52,579 | 20,132 | 5,997 | ||||||||
Comprehensive income | 12,013 | 34,275 | 55,824 | 34,652 | 33,103 | 30,458 | -35,521 | 49,189 | 136,764 | 77,229 | 49,709 |
Accumulated Other-than-Temporary Impairment [Member] | |||||||||||
Other comprehensive (loss) income | 1,085 | 59 | |||||||||
Accumulated Defined Benefit Plans Adjustment [Member] | |||||||||||
Net actuarial gain (loss), Gross | 44,000 | ||||||||||
Total defined benefit pension and post-retirement plans | 1,236 | 2,860 | |||||||||
Accumulated other comprehensive income (loss) [Member] | |||||||||||
Other comprehensive (loss) income | ($5,063) | ($29,189) | $11,746 |
Stockholders_Equity_and_Compre4
Stockholders' Equity and Comprehensive Income Stockholders' Equity and Comprehensive Income (Components of Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Balance December, | $24,851 | $24,851 | $19,788 | |||||||||
Other Comprehensive Income Loss Reclassification Adjustment From AOCI For Non Credit Other Than Temporary Impaired Securities Net Of Tax | -1,085 | -9 | -182 | |||||||||
Amortization of Net Unrealized Gains Losses On Held To Maturity Transferred From Available For Sale Net of Tax | 844 | 1,025 | ||||||||||
OCI before reclassifications, Defined Benefit Pension and Post Retirement Plans | -35,189 | 38,775 | -17,268 | |||||||||
Amounts reclassified from AOCI,All other | -18,762 | -15,301 | -6,118 | |||||||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | -33,953 | 41,635 | -13,334 | |||||||||
Other comprehensive (loss) income | -29,337 | -18,887 | 26,483 | 16,678 | 7,768 | -2,195 | -62,643 | 27,881 | -5,063 | -29,189 | 11,746 | |
Accumulated Other-than-Temporary Impairment [Member] | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Balance December, | -1,599 | -1,658 | -1,599 | -1,658 | -514 | |||||||
OCI before reclassifications | 0 | 50 | ||||||||||
Other comprehensive (loss) income | 1,085 | 59 | ||||||||||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Balance December, | -26,652 | -68,287 | -26,652 | -68,287 | -60,605 | |||||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 1,236 | 2,860 | ||||||||||
Accumulated other comprehensive income (loss) [Member] | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Balance December, | 24,851 | 54,040 | 24,851 | 54,040 | 19,788 | |||||||
OCI before reclassifications | 12,222 | -15,732 | ||||||||||
Amount reclassified from AOCI | -17,285 | -13,457 | ||||||||||
Other comprehensive (loss) income | -5,063 | -29,189 | 11,746 | |||||||||
Held-to-maturity Securities [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Balance December, | 1,467 | 2,594 | 1,467 | 2,594 | 623 | |||||||
OCI before reclassifications | 0 | -102 | ||||||||||
Other comprehensive (loss) income | -844 | -1,127 | ||||||||||
Available-for-sale Securities [Member] | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Balance December, | 51,635 | 121,391 | 51,635 | 121,391 | 80,284 | |||||||
OCI before reclassifications | 47,411 | -54,455 | ||||||||||
Other comprehensive (loss) income | 28,649 | -69,756 | ||||||||||
Investments [Member] | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Balance December, | 51,503 | 122,327 | 51,503 | 122,327 | 80,393 | |||||||
OCI before reclassifications | 47,411 | -54,507 | ||||||||||
Amount reclassified from AOCI | -18,521 | -16,317 | ||||||||||
Other comprehensive (loss) income | $28,890 | ($70,824) |
Stockholders_Equity_and_Compre5
Stockholders' Equity and Comprehensive Income (Reclassification out of AOCI) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Comprehensive Income Loss Reclassification Adjustment From AOCI For Non Credit Other Than Temporary Impaired Securities Before Tax | $1,669 | $14 | $280 |
Total HTM Related, Tax | -455 | -552 | -851 |
Amount reclassified from AOCI, HTM | -844 | -1,025 | -1,581 |
Total realized gains and losses on AFS disposals, gross | -28,864 | -23,540 | -9,412 |
Realized gains and losses on AFS disposals, Tax | 10,102 | 8,239 | 3,294 |
Realized gains on available for sale securities | -18,762 | -15,301 | -6,118 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | 1,902 | 4,374 | 5,903 |
Prior service cost | 10 | 150 | |
Curtailment Expense | 16 | ||
Total defined benefit pension and post-retirement life, Gross | -52,234 | 64,054 | -20,513 |
Total defined benefit pension and post-retirement life,Tax | 18,281 | -22,419 | 7,179 |
Total defined benefit pension and post-retirement plans | -33,953 | 41,635 | -13,334 |
Policy acquisition costs [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | 1,571 | 3,465 | |
Prior service cost | 0 | 3 | |
Curtailment Expense | 0 | 16 | |
Loss and loss expense incurred [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | 331 | 909 | |
Prior service cost | 0 | 7 | |
Net Realized Investment Gains [Member] | |||
Unrealized gains and losses on HTM disposals | 157 | 390 | |
Total realized gains and losses on AFS disposals, gross | -28,864 | -23,540 | |
Net Income Financial Statement Line Item [Member] | |||
Amount reclassified from AOCI | -17,285 | -13,457 | |
Amount reclassified from AOCI, HTM | -844 | -1,025 | |
Realized gains on available for sale securities | -18,762 | -15,301 | |
Net Income Financial Statement Line Item [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | |||
Total defined benefit pension and post-retirement plans | 1,236 | 2,860 | |
Net Income Financial Statement Line Item [Member] | Other-than-Temporary Impairment [Member] | |||
Amount reclassified from AOCI | 1,085 | 9 | |
Total Federal Income Tax Expense [Member] | |||
Total HTM Related, Tax | 455 | 552 | |
Realized gains and losses on AFS disposals, Tax | 10,102 | 8,239 | |
Total defined benefit pension and post-retirement life,Tax | -666 | -1,540 | |
Total Federal Income Tax Expense [Member] | Other-than-Temporary Impairment [Member] | |||
Amortization of non-credit OTTI losses on HTM securities, tax | -584 | -5 | |
Income From Continuing Operations Before Federal Income Tax [Member] | |||
Other Comprehensive Income Loss Reclassification Adjustment From AOCI For Non Credit Other Than Temporary Impaired Securities Before Tax | 1,669 | 14 | |
Amortization on net unrealized gains on HTM securities | -1,299 | -1,577 | |
Total realized gains and losses on AFS disposals, gross | -28,864 | -23,540 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | 1,902 | 4,374 | |
Prior service cost | 0 | 10 | |
Curtailment Expense | 0 | 16 | |
Total defined benefit pension and post-retirement life, Gross | 1,902 | 4,400 | |
Net Investment Income Earned [Member] | |||
Amortization on net unrealized gains on HTM securities | -1,456 | -1,967 | |
Amortization Of Non Credit OTTI Losses On HTM Securities [Member] | Net Investment Income Earned [Member] | |||
Other Comprehensive Income Loss Reclassification Adjustment From AOCI For Non Credit Other Than Temporary Impaired Securities Before Tax | 0 | 14 | |
Non Credit OTTI On Disposed Securities [Member] | Net Realized Investment Gains [Member] | |||
Other Comprehensive Income Loss Reclassification Adjustment From AOCI For Non Credit Other Than Temporary Impaired Securities Before Tax | $1,669 | $0 |
Fair_Value_Measurements_Carryi
Fair Value Measurements (Carrying Value and Estimated Fair Value of Financial Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Held-to-maturity Securities | $318,137 | $392,879 |
Available-for-sale Securities, Debt Securities | 4,066,122 | 3,715,536 |
Equity securities, AFS | 191,400 | 192,771 |
Short-term investments | 131,972 | 174,251 |
Notes payable | 379,297 | 392,414 |
Carrying Amount [Member] | ||
Held-to-maturity Securities | 318,137 | 392,879 |
Available-for-sale Securities, Debt Securities | 4,066,122 | 3,715,536 |
Equity securities, AFS | 191,400 | 192,771 |
Short-term investments | 131,972 | 174,251 |
Notes payable | 379,297 | 392,414 |
Carrying Amount [Member] | Two Point Ninety Percent Borrowing From Federal Home Loan Bank [Member] | ||
Notes payable | 0 | 13,000 |
Carrying Amount [Member] | One Point Twenty Five Percent Borrowing From Federal Home Loan Bank [Member] | ||
Notes payable | 45,000 | 45,000 |
Carrying Amount [Member] | Seven Point Twenty Five Percent Senior Notes [Member] | ||
Notes payable | 49,896 | 49,916 |
Carrying Amount [Member] | Six Point Seventy Percent Senior Notes [Member] | ||
Notes payable | 99,401 | 99,498 |
Carrying Amount [Member] | Five Point Eight Hundred Seventy Five [Member] | ||
Notes payable | 185,000 | 185,000 |
Fair Value [Member] | ||
Held-to-maturity Securities | 333,961 | 416,981 |
Available-for-sale Securities, Debt Securities | 4,066,122 | 3,715,536 |
Equity securities, AFS | 191,400 | 192,771 |
Short-term investments | 131,972 | 174,251 |
Notes payable | 404,270 | 354,010 |
Fair Value [Member] | Two Point Ninety Percent Borrowing From Federal Home Loan Bank [Member] | ||
Notes payable | 0 | 13,319 |
Fair Value [Member] | One Point Twenty Five Percent Borrowing From Federal Home Loan Bank [Member] | ||
Notes payable | 45,244 | 45,259 |
Fair Value [Member] | Seven Point Twenty Five Percent Senior Notes [Member] | ||
Notes payable | 59,181 | 50,887 |
Fair Value [Member] | Six Point Seventy Percent Senior Notes [Member] | ||
Notes payable | 114,845 | 98,247 |
Fair Value [Member] | Five Point Eight Hundred Seventy Five [Member] | ||
Notes payable | $185,000 | $146,298 |
Fair_Value_Measurements_Quanti
Fair Value Measurements (Quantitative Disclosures at Fair Value Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | $4,066,122 | $3,715,536 | ||
Equity securities, AFS | 191,400 | 192,771 | ||
Total AFS securities | 4,257,522 | 3,908,307 | ||
Short-term investments | 131,972 | 174,251 | ||
Fair Value [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 4,066,122 | 3,715,536 | ||
Equity securities, AFS | 191,400 | 192,771 | ||
Total AFS securities | 4,257,522 | 3,908,307 | ||
Short-term investments | 131,972 | 174,251 | ||
Total Assets | 4,389,494 | 4,082,558 | ||
Fair Value [Member] | U.S. Government and Government Agencies and Authorities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 124,130 | 173,375 | ||
Fair Value [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 27,831 | 30,615 | ||
Fair Value [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 1,246,264 | 951,624 | ||
Fair Value [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 1,799,806 | 1,734,883 | ||
Fair Value [Member] | Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 177,224 | 140,896 | ||
Fair Value [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 179,593 | 171,284 | ||
Fair Value [Member] | Residential Mortgage Backed Securities (RMBS) [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 511,274 | 512,859 | ||
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 53,199 | [1] | 52,153 | [1] |
Equity securities, AFS | 188,500 | [1] | 189,871 | [1] |
Total AFS securities | 241,699 | [1] | 242,024 | [1] |
Short-term investments | 131,972 | [1] | 174,251 | [1] |
Total Assets | 373,671 | [1] | 416,275 | [1] |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | U.S. Government and Government Agencies and Authorities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 53,199 | [1] | 52,153 | [1] |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 0 | [1] | 0 | [1] |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 0 | [1] | 0 | [1] |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 0 | [1] | 0 | [1] |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 0 | [1] | 0 | [1] |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 0 | [1] | 0 | [1] |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Residential Mortgage Backed Securities (RMBS) [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 0 | [1] | 0 | [1] |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 4,012,923 | [1] | 3,663,383 | [1] |
Equity securities, AFS | 0 | [1] | 0 | [1] |
Total AFS securities | 4,012,923 | [1] | 3,663,383 | [1] |
Short-term investments | 0 | [1] | 0 | [1] |
Total Assets | 4,012,923 | [1] | 3,663,383 | [1] |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Government and Government Agencies and Authorities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 70,931 | [1] | 121,222 | [1] |
Significant Other Observable Inputs (Level 2) [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 27,831 | [1] | 30,615 | [1] |
Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 1,246,264 | [1] | 951,624 | [1] |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 1,799,806 | [1] | 1,734,883 | [1] |
Significant Other Observable Inputs (Level 2) [Member] | Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 177,224 | [1] | 140,896 | [1] |
Significant Other Observable Inputs (Level 2) [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 179,593 | [1] | 171,284 | [1] |
Significant Other Observable Inputs (Level 2) [Member] | Residential Mortgage Backed Securities (RMBS) [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 511,274 | [1] | 512,859 | [1] |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 0 | 0 | ||
Equity securities, AFS | 2,900 | 2,900 | ||
Total AFS securities | 2,900 | 2,900 | ||
Short-term investments | 0 | 0 | ||
Total Assets | 2,900 | 2,900 | ||
Significant Unobservable Inputs (Level 3) [Member] | U.S. Government and Government Agencies and Authorities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Residential Mortgage Backed Securities (RMBS) [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Debt Securities | $0 | $0 | ||
[1] | There were no transfers of securities between Level 1 and Level 2. |
Fair_Value_Measurements_Change
Fair Value Measurements (Changes in Fair Value of Securities Using Level 3 Inputs) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value, Beginning Balance | $42,277 | |
Total net (losses) gains for the period included in OCI | 4,089 | [1] |
Total net (losses) gains for the period included in net income | -1,195 | [2],[3] |
Purchases | 0 | |
Sales | 0 | |
Issuances | 0 | |
Settlements | -4,660 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | -37,611 | |
Fair Value, Ending Balance | 2,900 | |
Equity Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value, Beginning Balance | 3,607 | |
Total net (losses) gains for the period included in OCI | 3,935 | [1] |
Total net (losses) gains for the period included in net income | 0 | [2],[3] |
Purchases | 0 | |
Sales | 0 | |
Issuances | 0 | |
Settlements | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | -4,642 | |
Fair Value, Ending Balance | 2,900 | |
AFS Fixed Income Securities [Member] | U.S. Government and Government Agencies [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value, Beginning Balance | 19,789 | |
Total net (losses) gains for the period included in OCI | -537 | [1] |
Total net (losses) gains for the period included in net income | -76 | [2],[3] |
Purchases | 0 | |
Sales | 0 | |
Issuances | 0 | |
Settlements | -1,847 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | -17,329 | |
Fair Value, Ending Balance | 0 | |
AFS Fixed Income Securities [Member] | Corporate Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value, Beginning Balance | 2,946 | |
Total net (losses) gains for the period included in OCI | -7 | [1] |
Total net (losses) gains for the period included in net income | 0 | [2],[3] |
Purchases | 0 | |
Sales | 0 | |
Issuances | 0 | |
Settlements | -168 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | -2,771 | |
Fair Value, Ending Balance | 0 | |
AFS Fixed Income Securities [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value, Beginning Balance | 6,068 | |
Total net (losses) gains for the period included in OCI | -74 | [1] |
Total net (losses) gains for the period included in net income | 0 | [2],[3] |
Purchases | 0 | |
Sales | 0 | |
Issuances | 0 | |
Settlements | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | -5,994 | |
Fair Value, Ending Balance | 0 | |
AFS Fixed Income Securities [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value, Beginning Balance | 7,162 | |
Total net (losses) gains for the period included in OCI | 772 | [1] |
Total net (losses) gains for the period included in net income | 361 | [2],[3] |
Purchases | 0 | |
Sales | 0 | |
Issuances | 0 | |
Settlements | -2,420 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | -5,875 | |
Fair Value, Ending Balance | 0 | |
Receivable For Proceeds From Divestiture Of Businesses [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value, Beginning Balance | 2,705 | |
Total net (losses) gains for the period included in OCI | 0 | [1] |
Total net (losses) gains for the period included in net income | -1,480 | [2],[3] |
Purchases | 0 | |
Sales | 0 | |
Issuances | 0 | |
Settlements | -225 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | -1,000 | |
Fair Value, Ending Balance | 0 | |
Fair Value, Inputs, Level 3 [Member] | AFS Fixed Income Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Transfers out of Level 3 | ($32,000) | |
[1] | Amounts are reported in “Unrealized holding gains (losses) arising during period†on the Consolidated Statements of Comprehensive Income. | |
[2] | For the receivable related to the sale of Selective HR, amounts in “Loss on disposal of discontinued operations, net of tax†relate to an impairment charge and amounts in “Other income†relate to interest accretion on the Consolidated Statements of Income. | |
[3] | Amounts are reported in “Net realized gains†for realized gains and losses and “Net investment income earned†for amortization of securities on the Consolidated Statements of Income. |
Fair_Value_Measurements_Quanti1
Fair Value Measurements (Quantitative Information of Our Financial Assets and Liabilities That Were Disclosed at Fair Value) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | $318,137 | $392,879 |
Notes payable | 379,297 | 392,414 |
Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 333,961 | 416,981 |
Notes payable | 404,270 | 354,010 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | 0 |
Notes payable | 185,000 | 146,298 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 333,961 | 416,981 |
Notes payable | 219,270 | 207,712 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | 0 |
Notes payable | 0 | 0 |
Foreign Government [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 5,394 | 5,591 |
Foreign Government [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | 0 |
Foreign Government [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 5,394 | 5,591 |
Foreign Government [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | 0 |
Obligations of States and Political Subdivisions [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 299,132 | 369,756 |
Obligations of States and Political Subdivisions [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | 0 |
Obligations of States and Political Subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 299,132 | 369,756 |
Obligations of States and Political Subdivisions [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | 0 |
Corporate Securities [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 21,422 | 30,274 |
Corporate Securities [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | 0 |
Corporate Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 21,422 | 30,274 |
Corporate Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | 0 |
Asset-backed Securities [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 2,823 | 3,415 |
Asset-backed Securities [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | 0 |
Asset-backed Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 2,823 | 3,415 |
Asset-backed Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | 0 |
Commercial Mortgage-backed Securities (CMBS) [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 5,190 | 7,945 |
Commercial Mortgage-backed Securities (CMBS) [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | 0 |
Commercial Mortgage-backed Securities (CMBS) [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 5,190 | 7,945 |
Commercial Mortgage-backed Securities (CMBS) [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | 0 |
Two Point Ninety Percent Borrowing From Federal Home Loan Bank [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 13,319 | |
Two Point Ninety Percent Borrowing From Federal Home Loan Bank [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | |
Two Point Ninety Percent Borrowing From Federal Home Loan Bank [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 13,319 | |
Two Point Ninety Percent Borrowing From Federal Home Loan Bank [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | |
One Point Twenty Five Percent Borrowing From Federal Home Loan Bank [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 45,244 | 45,259 |
One Point Twenty Five Percent Borrowing From Federal Home Loan Bank [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | 0 |
One Point Twenty Five Percent Borrowing From Federal Home Loan Bank [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 45,244 | 45,259 |
One Point Twenty Five Percent Borrowing From Federal Home Loan Bank [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | 0 |
Seven Point Twenty Five Percent Senior Notes [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 59,181 | 50,887 |
Seven Point Twenty Five Percent Senior Notes [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | 0 |
Seven Point Twenty Five Percent Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 59,181 | 50,887 |
Seven Point Twenty Five Percent Senior Notes [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | 0 |
Six Point Seventy Percent Senior Notes [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 114,845 | 98,247 |
Six Point Seventy Percent Senior Notes [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | 0 |
Six Point Seventy Percent Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 114,845 | 98,247 |
Six Point Seventy Percent Senior Notes [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | 0 |
Five Point Eight Hundred Seventy Five [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 185,000 | 146,298 |
Five Point Eight Hundred Seventy Five [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 185,000 | 146,298 |
Five Point Eight Hundred Seventy Five [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | 0 |
Five Point Eight Hundred Seventy Five [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | $0 | $0 |
Reinsurance_Total_Reinsurance_
Reinsurance (Total Reinsurance Balances Segregated By Reinsurer) (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Terrorism Risk Insurance Program Companys Estimated Deductible | $254,000,000 | |||||
Terrorism Risk Insurance Program Reimbursed Percentage Maximum | 85.00% | |||||
Terrorism Risk Insurance Program Annual Cap | 100,000,000,000 | |||||
Terrorism Risk Insurance Program Insurer Retainer | 15.00% | |||||
Annual Terrorism Risk Insurance Program Federal Share Reduction | 1.00% | |||||
Terrorism Risk Insurance Program Reimbursed Percentage Minimum | 80.00% | |||||
Allowance For Reinsurance Recoverable | 11,037,000 | 9,542,000 | 8,706,000 | 7,668,000 | ||
Total reinsurance recoverables | 581,548,000 | 550,897,000 | ||||
Total prepaid reinsurance premiums | 146,993,000 | 143,000,000 | ||||
Less: collateral | -114,843,000 | [1] | -119,732,000 | [1] | ||
Net unsecured reinsurance balances | 613,698,000 | 574,165,000 | ||||
National Flood Insurance Program [Member] | ||||||
Net unsecured reinsurance balances | 172,547,000 | [2] | 177,637,000 | [2] | ||
% of Net Unsecured Reinsurance | 28.00% | [2] | 31.00% | [2] | ||
NJ Unsatisfied Claim Judgment Fund [Member] | ||||||
Net unsecured reinsurance balances | 76,342,000 | [2] | 71,732,000 | [2] | ||
% of Net Unsecured Reinsurance | 13.00% | [2] | 12.00% | [2] | ||
Other Federal And State Pools [Member] | ||||||
Net unsecured reinsurance balances | 2,557,000 | [2] | 3,034,000 | [2] | ||
% of Net Unsecured Reinsurance | 0.00% | [2] | 1.00% | [2] | ||
Total Federal And State Pools [Member] | ||||||
Net unsecured reinsurance balances | 251,446,000 | [2] | 252,403,000 | [2] | ||
% of Net Unsecured Reinsurance | 41.00% | [2] | 44.00% | [2] | ||
Remaining Unsecured Reinsurance [Member] | ||||||
Net unsecured reinsurance balances | 362,252,000 | 321,762,000 | ||||
% of Net Unsecured Reinsurance | 59.00% | 56.00% | ||||
Hanover Ruckversicherungs AG [Member] | ||||||
Net unsecured reinsurance balances | 79,864,000 | 72,565,000 | ||||
% of Net Unsecured Reinsurance | 13.00% | 13.00% | ||||
Munich Re Group [Member] | ||||||
Net unsecured reinsurance balances | 78,347,000 | 69,749,000 | ||||
% of Net Unsecured Reinsurance | 13.00% | 12.00% | ||||
Swiss Re Group [Member] | ||||||
Net unsecured reinsurance balances | 55,026,000 | 48,234,000 | ||||
% of Net Unsecured Reinsurance | 9.00% | 8.00% | ||||
AXIS Reinsurance Company [Member] | ||||||
Net unsecured reinsurance balances | 51,014,000 | 45,114,000 | ||||
% of Net Unsecured Reinsurance | 8.00% | 8.00% | ||||
Partner Reinsurance Company Of The US [Member] | ||||||
Net unsecured reinsurance balances | 25,424,000 | 25,730,000 | ||||
% of Net Unsecured Reinsurance | 4.00% | 4.00% | ||||
QBE Reinsurance Corporation [Member] | ||||||
Net unsecured reinsurance balances | 13,069,000 | 15,665,000 | ||||
% of Net Unsecured Reinsurance | 2.00% | 3.00% | ||||
All Other Reinsurers [Member] | ||||||
Net unsecured reinsurance balances | 59,508,000 | 44,705,000 | ||||
% of Net Unsecured Reinsurance | 10.00% | 8.00% | ||||
Allowance for Reinsurance Recoverable [Member] | ||||||
Allowance For Reinsurance Recoverable | $6,900,000 | $5,100,000 | ||||
[1] | 1 Includes letters of credit, trust funds, and funds withheld. | |||||
[2] | 2 Considered to have minimal risk of default. |
Reinsurance_List_of_direct_ass
Reinsurance (List of direct, assumed and ceded Reinsurance Amounts) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Premiums Written: | |||||||||||
Direct | $2,228,270,000 | $2,133,793,000 | $1,955,667,000 | ||||||||
Assumed | 26,306,000 | 43,650,000 | 50,938,000 | ||||||||
Ceded premiums written | -369,296,000 | -367,284,000 | -339,722,000 | ||||||||
Net | 1,885,280,000 | 1,810,159,000 | 1,666,883,000 | ||||||||
Premiums Earned: | |||||||||||
Direct | 2,183,258,000 | 2,048,530,000 | 1,873,007,000 | ||||||||
Assumed | 34,653,000 | 44,464,000 | 65,884,000 | ||||||||
Ceded premiums earned | -365,302,000 | -356,922,000 | -354,772,000 | ||||||||
Total Net Premiums Earned | 469,850,000 | 462,639,000 | 463,625,000 | 456,495,000 | 451,312,000 | 437,568,000 | 426,252,000 | 420,940,000 | 1,852,609,000 | 1,736,072,000 | 1,584,119,000 |
Losses and loss expenes incurred: | |||||||||||
Direct | 1,314,864,000 | 1,370,293,000 | 2,394,640,000 | ||||||||
Assumed | 26,187,000 | 32,678,000 | 29,175,000 | ||||||||
Ceded losses and loss expenses incurred | -183,550,000 | -281,233,000 | -1,302,825,000 | ||||||||
Net | 1,157,501,000 | 1,121,738,000 | 1,120,990,000 | ||||||||
Superstorm Sandy [Member] | |||||||||||
Increase Decrease In Reinsurance Effect On Claims And Benefits Incurred Amount Ceded | $1,100,000,000 |
Reinsurance_Ceded_Premiums_and
Reinsurance (Ceded Premiums and Losses Related to Flood Operations) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Percentage of unpaid NFIP claims ceded by federal government | 100.00% | ||
Ceded premiums written | ($369,296,000) | ($367,284,000) | ($339,722,000) |
Ceded premiums earned | -365,302,000 | -356,922,000 | -354,772,000 |
Ceded losses and loss expenses incurred | -183,550,000 | -281,233,000 | -1,302,825,000 |
National Flood Insurance Program [Member] | |||
Ceded premiums written | -237,718,000 | -236,309,000 | -221,094,000 |
Ceded premiums earned | -234,224,000 | -228,650,000 | -212,177,000 |
Ceded losses and loss expenses incurred | -57,323,000 | -183,142,000 | -1,119,303,000 |
Superstorm Sandy [Member] | |||
Flood losses ceded to federal government related to Superstorm Sandy | $1,100,000,000 |
Reserve_of_Losses_and_Loss_Exp
Reserve of Losses and Loss Expenses (Rollforward of Reserves for Losses and Loss Expenses) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Gross reserves for losses and loss expenses, at beginning of year | $3,349,770,000 | $4,068,941,000 | $3,144,924,000 |
Less: reinsurance recoverable on unpaid loss and loss expenses, at beginning of year | 540,839,000 | 1,409,755,000 | 549,490,000 |
Net reserves for losses and loss expenses, at beginning of year | 2,808,931,000 | 2,659,186,000 | 2,595,434,000 |
Incurred losses and loss expense for claims occurring in the current year | 1,216,770,000 | 1,147,263,000 | 1,146,591,000 |
Incurred losses and loss expenses for claims occurring in the prior years | -59,269,000 | -25,525,000 | -25,601,000 |
Total incurred losses and loss expenses | 1,157,501,000 | 1,121,738,000 | 1,120,990,000 |
Paid losses and loss expenses for claims occurring in current year | 468,478,000 | 399,559,000 | 424,496,000 |
Paid losses and loss expenses for claims occurring in prior years | 592,062,000 | 572,434,000 | 632,742,000 |
Total paid losses and loss expenses | 1,060,540,000 | 971,993,000 | 1,057,238,000 |
Net reserves for losses and loss expenses, at end of year | 2,905,892,000 | 2,808,931,000 | 2,659,186,000 |
Add: reinsurance recoverable on unpaid loss and loss expenses, at end of year | 571,978,000 | 540,839,000 | 1,409,755,000 |
Gross reserves for losses and loss expenses, at end of year | 3,477,870,000 | 3,349,770,000 | 4,068,941,000 |
Increase of net loss and loss expense reserves | 97,000,000 | 149,700,000 | 63,800,000 |
Anticipated recoveries for salvage and subrogation claims | $65,100,000 | $61,000,000 | $62,200,000 |
Reserve_for_Losses_and_Loss_Ex2
Reserve for Losses and Loss Expenses (Reserve Loss Development) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Prior Years | $592,062,000 | $572,434,000 | $632,742,000 |
Favorable or adverse loss development | -59,269,000 | -25,525,000 | -25,601,000 |
Property Development | 11,000,000 | ||
Favorable or unfavorable loss development [Member] | |||
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Prior Years | 59,300,000 | 25,500,000 | 25,500,000 |
Favorable or adverse loss development | -59,300,000 | -25,500,000 | -25,500,000 |
Property Development | 11,100,000 | 7,500,000 | |
Casualty Development | 48,200,000 | 14,500,000 | 18,000,000 |
Favorable or unfavorable loss development [Member] | General Liability [Member] | |||
Favorable or adverse loss development | -43,900,000 | -20,000,000 | 2,500,000 |
Favorable or unfavorable loss development [Member] | Commercial Automobile [Member] | |||
Favorable or adverse loss development | -4,100,000 | -4,500,000 | -8,500,000 |
Favorable or unfavorable loss development [Member] | Workers' Compensation [Member] | |||
Favorable or adverse loss development | 0 | 23,500,000 | 2,500,000 |
Favorable or unfavorable loss development [Member] | Business Owners' Policies [Member] | |||
Favorable or adverse loss development | 1,900,000 | -9,500,000 | -9,000,000 |
Favorable or unfavorable loss development [Member] | Commercial Property [Member] | |||
Favorable or adverse loss development | -2,100,000 | -7,500,000 | -3,500,000 |
Favorable or unfavorable loss development [Member] | Homeowners [Member] | |||
Favorable or adverse loss development | -4,000,000 | -2,500,000 | -9,000,000 |
Favorable or unfavorable loss development [Member] | Personal Automobile [Member] | |||
Favorable or adverse loss development | -10,800,000 | -3,000,000 | 500,000 |
Favorable or unfavorable loss development [Member] | Excess And Surplus Operations [Member] | |||
Favorable or adverse loss development | 3,700,000 | -2,000,000 | 0 |
Favorable or unfavorable loss development [Member] | Remaining Lines Of Business [Member] | |||
Favorable or adverse loss development | $0 | $0 | ($1,000,000) |
Reserve_for_Losses_and_Loss_Ex3
Reserve for Losses and Loss Expenses (Exposure to Environmental Claims) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Loss and Loss expense reserves, gross | $30,653 | $32,764 | $35,575 | $36,012 |
Liability for Asbestos and Environmental Claims, Net | 22,994 | 25,167 | 27,769 | 27,916 |
Asbestos [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Loss and Loss expense reserves, gross | 8,751 | 8,897 | 9,170 | 8,412 |
Liability for Asbestos and Environmental Claims, Net | 7,314 | 7,518 | 7,791 | 6,586 |
Landfill Sites Related Claims [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Loss and Loss expense reserves, gross | 11,500 | |||
Liability for Asbestos and Environmental Claims, Net | 6,556 | |||
Leaking Underground Storage Tanks Claims [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Loss and Loss expense reserves, gross | 10,400 | |||
Liability for Asbestos and Environmental Claims, Net | $9,124 |
Reserve_for_Losses_and_Loss_Ex4
Reserve for Losses and Loss Expenses (Roll Forward of Gross and Net Asbestos and Net Environmental Incurred Losses and Loss Expenses and Related Reserves) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Reserves for losses and loss expenses at beginning of year, gross | $32,764 | $35,575 | $36,012 |
Incurred losses and loss expenses, gross | 167 | 347 | 3,059 |
Less: losses and loss expenses paid, gross | -2,278 | -3,158 | -3,496 |
Reserves for losses and loss expenses at the end of year, gross | 30,653 | 32,764 | 35,575 |
Reserves for losses and loss expenses at beginning of year, net | 25,167 | 27,769 | 27,916 |
Incurred losses and loss expenses, net | 0 | 68 | 3,000 |
Less: losses and loss expenses paid, net | -2,173 | -2,670 | -3,147 |
Reserves for losses and loss expenses at the end of year, net | 22,994 | 25,167 | 27,769 |
Asbestos [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Reserves for losses and loss expenses at beginning of year, gross | 8,897 | 9,170 | 8,412 |
Incurred losses and loss expenses, gross | 60 | 0 | 1,696 |
Less: losses and loss expenses paid, gross | -206 | -273 | -938 |
Reserves for losses and loss expenses at the end of year, gross | 8,751 | 8,897 | 9,170 |
Reserves for losses and loss expenses at beginning of year, net | 7,518 | 7,791 | 6,586 |
Incurred losses and loss expenses, net | 0 | 0 | 2,000 |
Less: losses and loss expenses paid, net | -204 | -273 | -795 |
Reserves for losses and loss expenses at the end of year, net | 7,314 | 7,518 | 7,791 |
Enviromental [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Reserves for losses and loss expenses at beginning of year, gross | 23,867 | 26,405 | 27,600 |
Incurred losses and loss expenses, gross | 107 | 347 | 1,363 |
Less: losses and loss expenses paid, gross | -2,072 | -2,885 | -2,558 |
Reserves for losses and loss expenses at the end of year, gross | 21,902 | 23,867 | 26,405 |
Reserves for losses and loss expenses at beginning of year, net | 17,649 | 19,978 | 21,330 |
Incurred losses and loss expenses, net | 0 | 68 | 1,000 |
Less: losses and loss expenses paid, net | -1,969 | -2,397 | -2,352 |
Reserves for losses and loss expenses at the end of year, net | $15,680 | $17,649 | $19,978 |
Indebtedness_Narrative_Details
Indebtedness (Narrative) (Details) (USD $) | 3 Months Ended | |||||||
In Millions, unless otherwise specified | Mar. 31, 2013 | Dec. 31, 2005 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2004 | Dec. 31, 2009 | Jan. 31, 2015 | Dec. 31, 2011 |
Aggregate investment in FHLBI | $2.90 | $2.90 | ||||||
Borrowing threshold of FHLBI | 20 | |||||||
FLHBI Borrowing | 45 | |||||||
Maximum FHLBI borrowing percentage permitted by line of credit | 10.00% | |||||||
Long-term Line of Credit | 0 | |||||||
Five Point Eight Hundred Seventy Five Percent Senior Notes Due 2043 [Member] | ||||||||
Aggregate principal amount of notes | 185 | |||||||
Bond proceeds to Insurance Subsidiaries as capital | 57.1 | |||||||
Redemption Of Seven Point Fifty Percent Junior Notes [Member] | ||||||||
Aggregate principal amount of notes | 100 | |||||||
Write off of Deferred Debt Issuance Cost | 3.3 | |||||||
Seven Point Twenty Five Percent Senior Notes due 2034 [Member] | ||||||||
Aggregate principal amount of notes | 50 | |||||||
Discount for notes issued | 0.1 | |||||||
Effective yield | 7.27% | |||||||
Bond proceeds to Insurance Subsidiaries as capital | 25 | |||||||
Acceleration of principal | 10 | |||||||
Six Point Seventy Percent Senior Notes due 2035 [Member] | ||||||||
Aggregate principal amount of notes | 100 | |||||||
Discount for notes issued | 0.7 | |||||||
Effective yield | 6.75% | |||||||
Acceleration of principal | 10 | |||||||
Net proceeds from the issuance | 50 | |||||||
Two Point Ninety Percent Borrowing From Federal Home Loan Bank due Dec. 15, 2014[Member] | ||||||||
FLHBI Borrowing | 13 | |||||||
Unpaid principal amount interest rate | 2.90% | |||||||
Zero Point Sixty Three Percent Borrowing From Federal Home Loan Bank Due July 22, 2016 [Member] | ||||||||
FLHBI Borrowing | 15 | |||||||
Unpaid principal amount interest rate | 0.63% | |||||||
One Point Twenty Five Percent Borrowing From Federal Home Loan Bank due Dec. 16, 2016 [Member] | ||||||||
FLHBI Borrowing | 45 | |||||||
Unpaid principal amount interest rate | 1.25% | |||||||
Line of Credit expires Sept 26,2017 [Member] | ||||||||
Acceleration of principal | 20 | |||||||
Line of credit borrowing capacity | 30 | |||||||
Line of credit, maximum borrowing capacity | $50 |
Indebtedness_Covenants_in_the_
Indebtedness (Covenants in the Line of Credit) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Debt Disclosure [Abstract] | ||||
Consolidated net worth, required | $881,000,000 | |||
Statutory surplus, required | 750,000,000 | |||
Debt-to-capitalization ratio, required | 35.00% | [1] | ||
Consolidated net worth, actual | 1,275,586,000 | 1,153,928,000 | 1,090,592,000 | |
Statutory surplus, actual | $1,307,800,000 | $1,256,400,000 | ||
Debt-to-capitalization ratio, actual | 23.20% | [1] | ||
[1] | Calculated in accordance with Line of Credit agreement. |
Segment_Information_Narrative_
Segment Information (Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 |
Segment Reporting [Abstract] | ||
Goodwill balance for our Standard Commercial Lines reporting unit | $7,849 | $7,849 |
Percentage of net premiums written related to insurance policies written in New Jersey | 23.00% |
Segment_Information_Revenue_Fr
Segment Information (Revenue From Continuing Operations by Segment) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Revenue from External Customer [Line Items] | ||||||||||||||
Net premiums earned | $469,850 | $462,639 | $463,625 | $456,495 | $451,312 | $437,568 | $426,252 | $420,940 | $1,852,609 | $1,736,072 | $1,584,119 | |||
Other income | 16,945 | 12,294 | 9,118 | |||||||||||
Net Investment Income | 32,108 | 34,292 | 36,774 | 35,534 | 35,313 | 32,457 | 34,003 | 32,870 | 138,708 | 134,643 | 131,877 | |||
Net realized (gains) losses | 26,599 | 20,732 | 8,988 | |||||||||||
Total investment revenues | 165,307 | 155,375 | 140,865 | |||||||||||
Total all segments | 2,034,514 | 1,903,648 | 1,733,811 | |||||||||||
Total revenues | 2,034,861 | 1,903,741 | 1,734,102 | |||||||||||
Miscellaneous Income [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Other income | 16,598 | [1] | 12,201 | [2] | 8,827 | [3] | ||||||||
Other Income [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Other income | 347 | 93 | 291 | |||||||||||
Standard Commercial Lines [Member] | Commercial Automobile [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net premiums earned | 333,310 | 310,994 | 288,010 | |||||||||||
Standard Commercial Lines [Member] | Workers' Compensation [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net premiums earned | 274,585 | 267,612 | 262,108 | |||||||||||
Standard Commercial Lines [Member] | General Liability [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net premiums earned | 444,938 | 405,322 | 373,381 | |||||||||||
Standard Commercial Lines [Member] | Commercial Property [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net premiums earned | 244,792 | 224,412 | 202,340 | |||||||||||
Standard Commercial Lines [Member] | Business Owners' Policies [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net premiums earned | 85,788 | 77,097 | 68,462 | |||||||||||
Standard Commercial Lines [Member] | Bonds Segment [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net premiums earned | 19,288 | 19,000 | 18,891 | |||||||||||
Standard Commercial Lines [Member] | Other Commercial [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net premiums earned | 13,011 | 12,182 | 12,143 | |||||||||||
Standard Commercial Lines [Member] | Total standard Commercial Lines [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net premiums earned | 1,430,459 | 1,326,872 | 1,232,338 | |||||||||||
Standard Commercial Lines [Member] | Miscellaneous Income [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Other income | 14,747 | 10,253 | 7,003 | |||||||||||
Standard Personal Lines [Member] | Personal Automobile [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net premiums earned | 151,317 | 152,005 | 152,142 | |||||||||||
Standard Personal Lines [Member] | Homeowners [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net premiums earned | 134,273 | 127,991 | 113,850 | |||||||||||
Standard Personal Lines [Member] | Other Personal [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net premiums earned | 11,157 | 14,336 | 13,563 | |||||||||||
Standard Personal Lines [Member] | Total Standard Personal Lines [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net premiums earned | 298,581 | 296,280 | 281,379 | |||||||||||
Standard Personal Lines [Member] | Miscellaneous Income [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Other income | 1,834 | 1,948 | 1,824 | |||||||||||
E&S Lines [Member] | Commercial Automobile [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net premiums earned | 5,436 | 4,306 | 1,810 | |||||||||||
E&S Lines [Member] | General Liability [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net premiums earned | 96,142 | 88,761 | 59,721 | |||||||||||
E&S Lines [Member] | Commercial Property [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net premiums earned | 38,572 | 32,054 | 17,698 | |||||||||||
E&S Lines [Member] | Total standard Commercial Lines [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net premiums earned | 140,167 | 125,121 | 79,229 | |||||||||||
E&S Lines [Member] | Miscellaneous Income [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Other income | $17 | $0 | $0 | |||||||||||
[1] | In addition to amounts related to the Standard Commercial Lines, Standard Personal Lines, and E&S Lines, “Other income†and “Other expenses†on the Consolidated Statements of Income includes holding company income and expense amounts of $347 and $24,580, respectively. | |||||||||||||
[2] | In addition to amounts related to the Standard Commercial Lines, Standard Personal Lines, and E&S Lines, “Other income†and “Other expenses†on the Consolidated Statements of Income includes holding company income and expense amounts of $93 and $27,894, respectively. | |||||||||||||
[3] | In addition to amounts related to the Standard Commercial Lines, Standard Personal Lines, and E&S Lines, “Other income†and “Other expenses†on the Consolidated Statements of Income includes holding company income and expense amounts of $291 and $20,642, respectively. |
Segment_Information_Income_Fro
Segment Information (Income From Continuing Operations, Before Federal Income Tax) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Underwriting gain (loss), before federal income tax | $38,637 | $34,437 | $10,084 | ($5,015) | $11,971 | $10,151 | $4,483 | $12,161 | |||
Net Investment Income | 32,108 | 34,292 | 36,774 | 35,534 | 35,313 | 32,457 | 34,003 | 32,870 | 138,708 | 134,643 | 131,877 |
Net realized investment gains | 26,599 | 20,732 | 8,988 | ||||||||
Total investment revenues | 165,307 | 155,375 | 140,865 | ||||||||
Tax on investment income | 43,811 | 40,489 | 34,758 | ||||||||
Total investment income, after federal income tax | 121,496 | 114,886 | 106,107 | ||||||||
Standard Commercial Lines [Member] | |||||||||||
Underwriting gain (loss), before federal income tax | 61,221 | 33,856 | -40,935 | ||||||||
GAAP Combined Ratio | 95.70% | 97.40% | 103.30% | ||||||||
Statutory Combined Ratio | 95.50% | 97.10% | 103.00% | ||||||||
Standard Personal Lines [Member] | |||||||||||
Underwriting gain (loss), before federal income tax | 16,536 | 8,645 | -3,514 | ||||||||
GAAP Combined Ratio | 94.40% | 97.10% | 101.30% | ||||||||
Statutory Combined Ratio | 94.50% | 96.90% | 100.70% | ||||||||
Excess And Surplus Operations [Member] | |||||||||||
Underwriting gain (loss), before federal income tax | $386 | ($3,735) | ($19,558) | ||||||||
GAAP Combined Ratio | 99.70% | 103.00% | 124.70% | ||||||||
Statutory Combined Ratio | 99.20% | 102.90% | 118.80% |
Segment_Information_Reconcilia
Segment Information (Reconciliation of Segment Results to Income from Continuing Operations, before Federal Income Tax (Details)) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Underwriting gain (loss), before federal income tax | $38,637 | $34,437 | $10,084 | ($5,015) | $11,971 | $10,151 | $4,483 | $12,161 | |||
Total investment revenues | 165,307 | 155,375 | 140,865 | ||||||||
Total all segments | 243,450 | 194,141 | 76,858 | ||||||||
Interest expense | -22,086 | -22,538 | -18,872 | ||||||||
Other General Expense | -24,233 | -27,801 | -20,351 | ||||||||
Income from continuing operations, before federal income tax | 197,131 | 143,802 | 37,635 | ||||||||
Standard Commercial Lines [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Underwriting gain (loss), before federal income tax | 61,221 | 33,856 | -40,935 | ||||||||
Standard Personal Lines [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Underwriting gain (loss), before federal income tax | $16,536 | $8,645 | ($3,514) |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2009 |
Percentage Of Interest Sold In Subsidiary | 100.00% | ||
Receivable Related To Sale Of Subsidiary | $1 | ||
Discontinued operation, loss from disposal of discontinued operation, before income tax | ($1.50) |
Earnings_Per_Share_Reconciliat
Earnings Per Share (Reconciliation of EPS) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic EPS: [Abstract] | |||||||||||
Net income from continuing operations | $41,350 | $53,162 | $29,341 | $17,974 | $25,335 | $32,653 | $27,122 | $22,305 | $141,827 | $107,415 | $37,963 |
Loss on disposal of discontinued operations | 0 | -997 | 0 | ||||||||
Net income | 41,350 | 53,162 | 29,341 | 17,974 | 25,335 | 32,653 | 27,122 | 21,308 | 141,827 | 106,418 | 37,963 |
Net income, basic shares | 56,310 | 55,638 | 54,880 | ||||||||
Basic net income from continuing operations | $2.52 | $1.93 | $0.69 | ||||||||
Basic net loss from discontinued operations | $0 | ($0.02) | $0 | ||||||||
Basic net income | $0.73 | $0.94 | $0.52 | $0.32 | $0.45 | $0.59 | $0.49 | $0.38 | $2.52 | $1.91 | $0.69 |
Effect of dilutive securities: [Abstract] | |||||||||||
Stock compensation plans, shares | 1,041 | 1,172 | 1,053 | ||||||||
Earnings Per Share, Diluted [Abstract] | |||||||||||
Net income from continuing operations | 41,350 | 53,162 | 29,341 | 17,974 | 25,335 | 32,653 | 27,122 | 22,305 | 141,827 | 107,415 | 37,963 |
Loss on disposal of discontinued operations | 0 | -997 | 0 | ||||||||
Net income | $41,350 | $53,162 | $29,341 | $17,974 | $25,335 | $32,653 | $27,122 | $21,308 | $141,827 | $106,418 | $37,963 |
Shares net income, Diluted | 57,351 | 56,810 | 55,933 | ||||||||
Diluted net income from continuing operations | $2.47 | $1.89 | $0.68 | ||||||||
Diluted net loss from discontinued operations | $0 | ($0.02) | $0 | ||||||||
Diluted net income | $0.72 | $0.93 | $0.51 | $0.31 | $0.44 | $0.57 | $0.48 | $0.38 | $2.47 | $1.87 | $0.68 |
Federal_Income_Taxes_Reconcili
Federal Income Taxes (Reconciliation of Federal Income Tax on Income at the Corporate Rate to the Effective Tax Rate) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Tax at statutory rate of 35% | $68,996 | $50,331 | $13,172 |
Tax-advantaged interest | -12,926 | -12,718 | -13,285 |
Dividends received deduction | -1,121 | -1,174 | -1,260 |
Other | 355 | -52 | 1,045 |
Total federal income tax expense (benefit) | $55,304 | $36,387 | ($328) |
Federal_Income_Taxes_Deferred_
Federal Income Taxes (Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net loss reserve discounting | $84,502,000 | $87,967,000 | |
Net unearned premiums | 66,470,000 | 64,167,000 | |
Employee benefits | 33,721,000 | 19,912,000 | |
Long-term incentive compensation plans | 13,625,000 | 12,904,000 | |
Temporary investment write-downs | 3,939,000 | 7,586,000 | |
Net operating loss | 2,136,000 | 2,818,000 | |
Tax credits | 7,826,000 | 17,042,000 | |
Other | 8,811,000 | 10,088,000 | |
Total deferred tax assets | 221,030,000 | 222,484,000 | |
Deferred policy acquisition costs | 63,242,000 | 59,164,000 | |
Unrealized gains on investment securities | 43,289,000 | 31,345,000 | |
Deferred Tax Liabilities, Other | 5,088,000 | 618,000 | |
Accelerated depreciation and amortization | 10,962,000 | 8,744,000 | |
Total deferred tax liabilities | 122,581,000 | 99,871,000 | |
Net deferred federal income tax asset | 98,449,000 | 122,613,000 | |
Tax benefits related to compensation expense deductions for share-based compensation awards | $20,200,000 | $19,200,000 | $17,700,000 |
Federal_Income_Taxes_Federal_I
Federal Income Taxes Federal Income Tax (Federal Tax Net Operating Loss Carryforwards) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Operating Loss Carryforwards [Line Items] | |
Annual Limitation Of Net Operating Loss Carryforwards | $1.90 |
Operating Loss Carryforwards | 6,102 |
Operating Loss Carryforwards Tax Effect | 2,136 |
Tax Year 2029 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 2,024 |
Operating Loss Carryforwards Tax Effect | 708 |
Tax Year 2030 [Member] [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 3,999 |
Operating Loss Carryforwards Tax Effect | 1,400 |
Tax Year 2031 [Member] [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 79 |
Operating Loss Carryforwards Tax Effect | $28 |
Retirement_Plans_Retirement_Sa
Retirement Plans (Retirement Savings Plan) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 05, 2013 | Dec. 31, 2011 |
Minimum employee contribution of defined compensation to retirement savings plan percentage | 2.00% | ||||
Maximum employee contribution of defined compensation to retirement savings plan percentage | 50.00% | ||||
Retirement Savings Plan [Member] | |||||
Defined Benefit Plan, Contributions by Employer | 13.4 | $12.20 | $8.20 | ||
Non Elective Employer Contribution [Member] | Retirement Savings Plan [Member] | |||||
Maximum employer match of employee contribution of defined compensation to retirement savings plan percentage | 4.00% | 4.00% | |||
First Tier Of Employee Contributions [Member] | Employer Match [Member] | Retirement Savings Plan [Member] | |||||
Maximum employer match of employee contribution of defined compensation to retirement savings plan percentage | 3.00% | 3.00% | |||
Defined contribution plan, employer matching contribution, percentage | 100.00% | 100.00% | |||
Second Tier Of Employee Contributions [Member] | Employer Match [Member] | Retirement Savings Plan [Member] | |||||
Maximum employer match of employee contribution of defined compensation to retirement savings plan percentage | 3.00% | 3.00% | |||
Defined contribution plan, employer matching contribution, percentage | 50.00% | 50.00% |
Retirement_Plans_Deferred_Comp
Retirement Plans (Deferred Compensation Plan) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred Compensation Plan Discretionary Contributions | $0 | $0 | $0 |
Maximum Employee Contribution Of Annual Salary To Deferred Compensation Plan Percentage | 50.00% | ||
Maximum Employee Contribution Of Annual Bonus To Deferred Compensation Plan Percentage | 100.00% | ||
Deferred Compensation Plan Contributions By Employer | 0.2 | 0.2 | |
Retirement Savings Plan [Member] | |||
Defined Benefit Plan, Contributions by Employer | $13.40 | $12.20 | $8.20 |
Retirement_Plans_Funded_Status
Retirement Plans (Funded Status of Retirement Income Plan and Retirement Life Plan) (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | |
Net actuarial gain (loss), Gross | ($54,136) | $59,654 | ($26,566) | ||
Change In Benefit Obligation [Abstract] | |||||
Defined Benefit Plan, Curtailments | -29,603 | ||||
Retirement Income Plan [Member] | |||||
Net actuarial gain (loss), Gross | -53,956 | 59,430 | -25,906 | ||
Change In Benefit Obligation [Abstract] | |||||
Benefit obligation, beginning of year | 256,404 | 302,647 | 302,647 | ||
Service cost | 5,920 | 7,517 | 8,091 | ||
Interest cost | 13,126 | 12,477 | 12,981 | ||
Actuarial losses (gains) | 62,935 | -29,656 | |||
Benefits Paid Benefit Obligation | 7,344 | 6,978 | |||
Defined Benefit Plan, Curtailments | 0 | ||||
Benefit obligation, end of year | 331,041 | 256,404 | 302,647 | ||
Change In Fair Value Of Assets Abstract | |||||
Fair value of assets, beginning of year | 225,817 | 207,150 | 207,150 | ||
Actual return on plan assets, net of expenses | 24,649 | 15,925 | |||
Contributions by the employer to funded plans | 10,210 | 9,600 | |||
Contributions by the employer to unfunded plans | 121 | 120 | |||
Benefits paid fair value | -7,344 | -6,978 | |||
Fair value of assets, end of year | 253,453 | 225,817 | 207,150 | ||
Funded status | -77,588 | -30,587 | |||
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | |||||
Liabilities | -77,588 | -30,587 | |||
Net pension liability, end of year | -77,588 | -30,587 | |||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | |||||
Net actuarial loss | 91,758 | 39,640 | |||
Total | 91,758 | 39,640 | |||
Weighted-Average Liability Asumptions | |||||
Discount rate | 4.29% | 5.16% | [1] | ||
Rate of compensation increase | 4.00% | 4.00% | |||
Accumulated benefit obligation | 326,538 | 250,546 | |||
Retirement Life Plan [Member] | |||||
Net actuarial gain (loss), Gross | -180 | 224 | -660 | ||
Change In Benefit Obligation [Abstract] | |||||
Benefit obligation, beginning of year | 6,201 | 6,471 | 6,471 | ||
Service cost | 0 | 0 | 0 | ||
Interest cost | 298 | 283 | 302 | ||
Actuarial losses (gains) | 180 | -224 | |||
Benefits Paid Benefit Obligation | 307 | 329 | |||
Defined Benefit Plan, Curtailments | 0 | 0 | |||
Benefit obligation, end of year | 6,372 | 6,201 | 6,471 | ||
Change In Fair Value Of Assets Abstract | |||||
Fair value of assets, beginning of year | 0 | 0 | 0 | ||
Actual return on plan assets, net of expenses | 0 | 0 | |||
Contributions by the employer to funded plans | 0 | 0 | |||
Contributions by the employer to unfunded plans | 0 | 0 | |||
Benefits paid fair value | 0 | 0 | |||
Fair value of assets, end of year | 0 | 0 | 0 | ||
Funded status | -6,372 | -6,201 | |||
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | |||||
Liabilities | -6,372 | -6,201 | |||
Net pension liability, end of year | -6,372 | -6,201 | |||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | |||||
Net actuarial loss | 1,480 | 1,363 | |||
Total | 1,480 | 1,363 | |||
Weighted-Average Liability Asumptions | |||||
Discount rate | 4.08% | 4.85% | |||
Rate of compensation increase | 0.00% | 0.00% | |||
Accumulated benefit obligation | 0 | 0 | |||
Accumulated Defined Benefit Plans Adjustment [Member] | |||||
Net actuarial gain (loss), Gross | $44,000 | ||||
[1] | Discount rate for the Retirement Income Plan changed from 4.42% as of December 31, 2012 to 4.66% as of March 31, 2013 due to the remeasurement that was performed with the curtailment of the Plan. |
Retirement_Plans_Components_of
Retirement Plans (Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Curtailment expense | $0 | $16,000 | $0 |
Net actuarial (gain) loss | 54,136,000 | -59,654,000 | 26,566,000 |
Reversal of amortization of net actuarial loss | -1,902,000 | -4,374,000 | -5,903,000 |
Prior service cost | -10,000 | -150,000 | |
Retirement Income Plan [Member] | |||
Service cost | 5,920,000 | 7,517,000 | 8,091,000 |
Interest cost | 13,126,000 | 12,477,000 | 12,981,000 |
Expected return on plan assets | -15,671,000 | -15,755,000 | -14,206,000 |
Amortization of unrecognized prior service cost | 0 | 10,000 | 150,000 |
Amortization of unrecognized actuarial loss | 1,839,000 | 4,294,000 | 5,863,000 |
Curtailment expense | 0 | 16,000 | 0 |
Total net periodic cost | 5,214,000 | 8,559,000 | 12,879,000 |
Net actuarial (gain) loss | 53,956,000 | -59,430,000 | 25,906,000 |
Reversal of amortization of net actuarial loss | -1,839,000 | -4,294,000 | -5,863,000 |
Prior service cost | 0 | -10,000 | -150,000 |
Curtailment Expense | 0 | -16,000 | 0 |
Total recognized in other comprehensive income | 52,117,000 | -63,750,000 | 19,893,000 |
Total recognized in net periodic benefit cost and OCI | 57,331,000 | -55,191,000 | 32,772,000 |
Estimated net actuarial loss that will be amortized from AOCI into net periodic benefit cost | 6,800,000 | ||
Retirement Life Plan [Member] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 298,000 | 283,000 | 302,000 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of unrecognized prior service cost | 0 | 0 | 0 |
Amortization of unrecognized actuarial loss | 63,000 | 80,000 | 40,000 |
Curtailment expense | 0 | 0 | 0 |
Total net periodic cost | 361,000 | 363,000 | 342,000 |
Net actuarial (gain) loss | 180,000 | -224,000 | 660,000 |
Reversal of amortization of net actuarial loss | -63,000 | -80,000 | -40,000 |
Prior service cost | 0 | 0 | 0 |
Curtailment Expense | 0 | 0 | 0 |
Total recognized in other comprehensive income | 117,000 | -304,000 | 620,000 |
Total recognized in net periodic benefit cost and OCI | 478,000 | 59,000 | 962,000 |
Estimated net actuarial loss that will be amortized from AOCI into net periodic benefit cost | $100,000 |
Retirement_Plans_WeightedAvera
Retirement Plans (Weighted-Average Expense Assumptions) (Details) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Expected return on plan assets | 6.27% | |||||
Annual return on plan assets | 8.30% | |||||
Retirement Income Plan [Member] | ||||||
Discount rate | 5.16% | [1] | 4.66% | [1] | 5.16% | [1] |
Expected return on plan assets | 6.92% | 7.40% | 7.75% | |||
Rate of compensation increase | 4.00% | 4.00% | 4.00% | |||
Discount rate used to value the liability | 4.29% | 5.16% | [1] | |||
Retirement Life Plan [Member] | ||||||
Discount rate | 4.85% | [1] | 4.42% | [1] | 5.16% | [1] |
Expected return on plan assets | 0.00% | 0.00% | 0.00% | |||
Rate of compensation increase | 0.00% | 0.00% | 0.00% | |||
Discount rate used to value the liability | 4.08% | 4.85% | ||||
[1] | Discount rate for the Retirement Income Plan changed from 4.42% as of December 31, 2012 to 4.66% as of March 31, 2013 due to the remeasurement that was performed with the curtailment of the Plan. |
Retirement_Plans_Plans_Allocat
Retirement Plans (Plan's Allocated Target and Ranges and Actual Weighted Average Asset Allocation by Investment Categories) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Actual percentage | 100.00% | 100.00% | |
Maximum percentage of equity security value of total plans portfolio value that is allowed | 8.00% | ||
Maximum percentage of any corporation outstanding shares that is allowed for retirement income plan equity portfolio | 5.00% | ||
Global Asset Allocation [Member] | |||
Actual percentage | 11.00% | 12.00% | |
Range minimum | 0.00% | ||
Range maximum | 0.00% | ||
Private Equity Funds [Member] | |||
Actual percentage | 4.00% | 5.00% | |
Range minimum | 0.00% | ||
Range maximum | 0.00% | ||
Cash And Short Term Investments [Member] | |||
Actual percentage | 1.00% | 1.00% | |
Range minimum | 0.00% | ||
Range maximum | 0.00% | ||
Extended Duration Fixed Maturity [Member] | |||
Actual percentage | 59.00% | 55.00% | |
Range minimum | 55.00% | ||
Range maximum | 100.00% | ||
Global Equity [Member] | |||
Actual percentage | 25.00% | 27.00% | |
Range minimum | 0.00% | ||
Range maximum | 45.00% |
Retirement_Plans_Quantitative_
Retirement Plans (Quantitative Disclosures of Retirement Income Plan's Invested Assets that are Measured at Fair Value on a Recurring Basis) (Details) (Retirement Income Plan [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | $253,453 | $225,817 | $207,150 |
Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 253,521 | 225,966 | |
Fair Value [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 10,392 | 12,159 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 230,535 | 200,810 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 12,594 | 12,997 | |
Significant Other Observable Inputs (Level 2) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 10,392 | 12,159 | |
Significant Unobservable Inputs (Level 3) [Member] | Alternative Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 10,392 | 12,159 | 12,631 |
Significant Unobservable Inputs (Level 3) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 10,392 | 12,159 | |
Global Asset Allocation Fund [Member] | Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 27,782 | 26,984 | |
Global Asset Allocation Fund [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 27,782 | 26,984 | |
Global Asset Allocation Fund [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Global Asset Allocation Fund [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
International equity [Member] | Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 16,852 | 17,548 | |
International equity [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 5,438 | 5,574 | |
International equity [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 11,414 | 11,974 | |
International equity [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Global Asset Allocation [Member] | Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 27,842 | 27,257 | |
Global Asset Allocation [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 27,842 | 27,257 | |
Global Asset Allocation [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Global Asset Allocation [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Extended Duration Fixed Income [Member] | Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 120,532 | 96,920 | |
Extended Duration Fixed Income [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 120,532 | 96,920 | |
Extended Duration Fixed Income [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Extended Duration Fixed Income [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Equity Long Short Hedge [Member] | Fair Value [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 41 | 41 | |
Equity Long Short Hedge [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Equity Long Short Hedge [Member] | Significant Other Observable Inputs (Level 2) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Equity Long Short Hedge [Member] | Significant Unobservable Inputs (Level 3) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 41 | 41 | |
Private Equity [Member] | Fair Value [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 8,136 | 9,899 | |
Private Equity [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Private Equity [Member] | Significant Other Observable Inputs (Level 2) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Private Equity [Member] | Significant Unobservable Inputs (Level 3) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 8,136 | 9,899 | |
Real Estate Strategy [Member] | Fair Value [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 2,215 | 2,219 | |
Real Estate Strategy [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Real Estate Strategy [Member] | Significant Other Observable Inputs (Level 2) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Real Estate Strategy [Member] | Significant Unobservable Inputs (Level 3) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 2,215 | 2,219 | |
Cash And Short Term Investments [Member] | Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 2,402 | 1,986 | |
Cash And Short Term Investments [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 1,222 | 963 | |
Cash And Short Term Investments [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 1,180 | 1,023 | |
Cash And Short Term Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Total Long Duration Fixed Income [Member] | Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 148,314 | 123,904 | |
Total Long Duration Fixed Income [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 148,314 | 123,904 | |
Total Long Duration Fixed Income [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Total Long Duration Fixed Income [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
US Global Equity [Member] | Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 47,719 | 43,112 | |
US Global Equity [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 47,719 | 43,112 | |
US Global Equity [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
US Global Equity [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Global Equity [Member] | Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 64,571 | 60,660 | |
Global Equity [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 53,157 | 48,686 | |
Global Equity [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 11,414 | 11,974 | |
Global Equity [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Short-term Investments [Member] | Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 1,222 | 963 | |
Short-term Investments [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 1,222 | 963 | |
Short-term Investments [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Short-term Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Deposit Administration Contracts [Member] | Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 1,180 | 1,023 | |
Deposit Administration Contracts [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Deposit Administration Contracts [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 1,180 | 1,023 | |
Deposit Administration Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | $0 | $0 |
Retirement_Plans_Changes_in_Fa
Retirement Plans (Changes in Fair Value of Securities Using Significant Unobservable Inputs) (Details) (Retirement Income Plan [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair value of assets, beginning of year | $225,817 | $207,150 |
Total gains (realized and unrealized) included in changes in net assets | 24,649 | 15,925 |
Fair value of assets, end of year | 253,453 | 225,817 |
Significant Unobservable Inputs (Level 3) [Member] | Alternative Investments [Member] | ||
Fair value of assets, beginning of year | 12,159 | 12,631 |
Total gains (realized and unrealized) included in changes in net assets | 1,586 | 2,131 |
Purchases | 334 | 560 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | -3,687 | -3,163 |
Transfers into level 3 | 0 | 0 |
Transfers out of level 3 | 0 | 0 |
Fair value of assets, end of year | 10,392 | 12,159 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair value of assets, end of year | 10,392 | 12,159 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Alternative Investments [Member] | ||
Fair value of assets, end of year | $10,392 | $12,159 |
Retirement_Plans_Schedule_of_A
Retirement Plans (Schedule of Alternative Investment Portfolio by Strategy and Remaining Commitment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Value | $99,203 | $107,875 |
Alternative Investments [Member] | ||
Carrying Value | 92,968 | 106,211 |
Remaining Commitment | 64,720 | |
Alternative Investments [Member] | Private Equity [Member] | ||
Carrying Value | 20,126 | 20,192 |
Remaining Commitment | 8,890 | |
Alternative Investments [Member] | Real Estate Strategy [Member] | ||
Carrying Value | 11,452 | 11,698 |
Remaining Commitment | 10,051 | |
Retirement Income Plan [Member] | Alternative Investments [Member] | ||
Carrying Value | 10,392 | 12,159 |
Remaining Commitment | 3,555 | |
Retirement Income Plan [Member] | Alternative Investments [Member] | Equity Long Short Hedge [Member] | ||
Carrying Value | 41 | 41 |
Remaining Commitment | 0 | |
Retirement Income Plan [Member] | Alternative Investments [Member] | Private Equity [Member] | ||
Carrying Value | 8,136 | 9,899 |
Remaining Commitment | 3,019 | |
Retirement Income Plan [Member] | Alternative Investments [Member] | Real Estate Strategy [Member] | ||
Carrying Value | 2,215 | 2,219 |
Remaining Commitment | $536 |
Retirement_Plans_Benefit_Payme
Retirement Plans (Benefit Payments) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
2020 - 2024 | $2,000 |
Retirement Income Plan [Member] | |
Estimated contribution from the employer | 11,900,000 |
2015 | 9,240,000 |
2016 | 10,330,000 |
2017 | 11,400,000 |
2018 | 12,493,000 |
2019 | 13,532,000 |
2020 - 2024 | 82,802,000 |
Retirement Life Plan [Member] | |
2015 | 343,000 |
2016 | 348,000 |
2017 | 353,000 |
2018 | 357,000 |
2019 | 362,000 |
2020 - 2024 | $1,865,000 |
ShareBased_Payments_Narrative_
Share-Based Payments (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $0.80 | $1.30 | $0.80 |
Stock Issued During Period Shares | 769,389 | 862,662 | 857,403 |
Number of options granted | 0 | ||
Stock Issued During Period Shares Dividend Reinvestment Plan | 58,309 | 63,349 | 90,110 |
Expense charged | 18.6 | 19.9 | 13.8 |
Corresponding income tax benefit | 6.2 | 6.8 | 4.8 |
Omnibus Stock Plan 2014 [Member] | |||
Maximum exercise period for an option grant | 10 years | ||
Number of authorized shares | 3,500,000 | ||
Number of shares available in reserve | 3,491,894 | ||
DEUs accrued | 43 | ||
DEU issuances | 0 | ||
Number of options to purchase common stock | 0 | ||
Forfeitures during the period | 0 | ||
Cash Incentive Plan [Member] | |||
Cash units granted, net of forfeiture | 60,305 | 55,365 | 46,961 |
Stock Option III [Member] | |||
Maximum exercise period for an option grant | 10 years | ||
Number of shares available in reserve | 223,440 | ||
Stock Option Plan For Directors [Member] | |||
Number of shares available in reserve | 36,000 | ||
Stock Compensation Plan For Non Employee Directors [Member] | |||
Number of shares available in reserve | 94,290 | ||
Issuances under plan | 0 | 0 | 0 |
Employee Stock Purchase Plan [Member] | |||
Stock Issued During Period Shares | 106,832 | 122,951 | 129,081 |
Number of authorized shares | 1,500,000 | ||
Number of shares available in reserve | 764,098 | ||
Discount from market price, offering date | 85.00% | ||
Discount from market price, purchase date | 85.00% | ||
Agent Stock Purchase Plan [Member] | |||
Stock Issued During Period Shares | 78,724 | 86,388 | 89,723 |
Number of authorized shares | 3,000,000 | ||
Number of shares available in reserve | 2,019,296 | ||
Discount from market price, purchase date | 10.00% | ||
Expense charged | 0.2 | 0.2 | 0.2 |
Corresponding income tax benefit | $0.10 | $0.10 | $0.10 |
Omnibus Stock Plan [Member] | |||
Maximum exercise period for an option grant | 10 years | ||
Number of shares available in reserve | 3,035,652 | ||
DEUs accrued | 24,010 | 23,505 | 32,558 |
DEU issuances | 30,991 | 39,296 | 48,224 |
Number of options to purchase common stock | 0 | 0 | 0 |
Restricted Stock Units (RSUs) [Member] | Omnibus Stock Plan 2014 [Member] | |||
Number of restricted stock units granted net of forfeitures | 4,023 | ||
Restricted Stock Units (RSUs) [Member] | Omnibus Stock Plan [Member] | |||
Number of restricted stock units granted net of forfeitures | 354,357 | 376,163 | 326,213 |
Stock Option [Member] | Stock Option Plan For Directors [Member] | |||
Number of options granted | 6,000 |
ShareBased_Payments_Summary_of
Share-Based Payments (Summary of Stock Option Transactions under Share-Based Payment Plans) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Outstanding at December 31, 2013, number of shares | 903,439 | ||
Granted in 2014, numbers of shares | 0 | ||
Exercised in 2014, number of shares | 161,940 | ||
Forfeited or expired 2014, number of shares | 6,960 | ||
Outstanding at December 31, 2014, number of shares | 734,539 | 903,439 | |
Exercisable at December 31, 2014, number of shares | 734,539 | ||
Outstanding at December 31, 2013, weighted average exercise price | $19.75 | ||
Granted in 2014, weighted average exercise price | $0 | ||
Exercised in 2014, weighted average exercise price | $20.41 | ||
Forfeited or expired 2014, weighted average exercise price | $28.09 | ||
Outstanding at December 31, 2014, weighted average exercise price | $19.52 | $19.75 | |
Exercisable as December 31, 2014, weighted average exercise price | $19.52 | ||
Outstanding at December 31, 2014, weighted average remaining contractual life in years | 3 years 5 months 3 days | ||
Exercisable at December 31, 2014, weighted average remaining contractual life in years | 3 years 5 months 3 days | ||
Outstanding at December 31, 2014, aggregate intrinsic value | $5,695,000 | ||
Exerciseable at December 31, 2014, aggregate intrinsic value | 5,695,000 | ||
Total intrinsic value of option exercised | $800,000 | $1,300,000 | $800,000 |
ShareBased_Payments_Summary_of1
Share-Based Payments (Summary of the Restricted Stock Unit Transactions under Share-Based Payment Plans) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Incentive Plan [Member] | |||
Weighted average remaining expense life | 1 year 1 month 18 days | ||
Share Based Compensation Liability Awards Amount Of Liability | $21.90 | ||
Cash incentive unit payments made | 9 | 4.7 | 3 |
Restricted Stock Units (RSUs) [Member] | |||
Unvested RSU awards at December 31, 2013 | 1,096,780 | ||
Granted in 2014, number of shares | 374,963 | ||
Vested in 2014, number of shares | 378,150 | ||
Forfeited in 2014, number of shares | 16,583 | ||
Unvested RSU awards at Decemeber 31, 2014, number of shares | 1,077,010 | 1,096,780 | |
Unvested RSU awards at December 31, 2013, weighted average grant date fair value | $18.73 | ||
Granted in 2014, weighted average grant date fair value | $21.58 | $21.03 | $17.62 |
Vested in 2014, weighted average grant date value | $17.47 | ||
Forfeited in 2014, weighted average grant date fair value | $19.19 | ||
Unvested RSU awards at December 31, 2014, weighted average grant date fair value | $20.18 | $18.73 | |
Total unrecognized compensation cost related to unvested RSU awards | 4.7 | ||
Weighted average remaining expense life | 1 year 7 months 18 days | ||
Dividend Equivalent Units [Member] | |||
Total intrinsic value of shares vested | 0.7 | 0.9 | 0.9 |
Restricted Stock Units [Member] | |||
Total intrinsic value of shares vested | $8.50 | $9.10 | $8.40 |
ShareBased_Payments_Weighted_A
Share-Based Payments (Weighted Average Assumptions for Employee Stock Purchase Plan and Other Options) (Details) (Employee Stock Purchase Plan [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Stock Purchase Plan [Member] | |||
Risk-free interest rate | 0.07% | 0.11% | 0.12% |
Expected term | 6 months | 6 months | 6 months |
Dividend yield | 2.00% | 2.40% | 2.90% |
Expected volatility | 21.00% | 19.00% | 24.00% |
ShareBased_Payments_WeightedAv
Share-Based Payments (Weighted-Average Fair Value of Options and Stock Per Share) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based compensation expense charged against net income before tax | $18.60 | $19.90 | $13.80 |
Share-based compensation expense income tax benefit | $6.20 | $6.80 | $4.80 |
Restricted Stock Units (RSUs) [Member] | |||
Stock, weighted average grant date fair value | $21.58 | $21.03 | $17.62 |
Agent Stock Purchase Plan [Member] | |||
Stock, weighted average grant date fair value | $2.42 | $2.40 | $1.76 |
Employee Stock Purchase Plan [Member] | |||
Options, weighted average grant date fair value | $1.24 | $0.97 | $1.05 |
15% of grant date market value | $3.87 | $3.24 | $2.70 |
Total ESPP | $5.11 | $4.21 | $3.75 |
Related_Party_Transactions_Nar
Related Party Transactions (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Equity ownership percentage of director of parent of general independent retail insurance agency | 10.00% | ||
Direct premiums written | $2,228,270,000 | $2,133,793,000 | $1,955,667,000 |
Premiums paid to Rue Insurance for insurance coverage | 0 | 0 | 200,000 |
Contributions to the Selective Group Foundation | 800,000 | 400,000 | 400,000 |
Related Party Insurance Agency [Member] | |||
Direct premiums written | 9,000,000 | 8,200,000 | 7,700,000 |
Commissions paid to Rue Insurance | $1,600,000 | $1,300,000 | $1,300,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Purchase amount of annuities | $15,000,000 | ||
Rental expense for operating leases for office space and equipment | 15,600,000 | 13,200,000 | 13,100,000 |
Capital Lease Agreements Expiration Period | 2019 | ||
Total minimum rental commitments under non-concellable leases | 44,900,000 | ||
Other Investments [Member] | |||
Remaining Commitment | $68,431,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Future Minimum Rental Commitments) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
2015- Capital Leases | $3.10 |
2016- Capital Leases | 1.8 |
2017- Capital Leases | 0.8 |
2018- Capital Leases | 0 |
2019- Capital Leases | 0 |
After 2019- Capital Leases | 0 |
Total minimum payment required- Capital Leases | 5.7 |
2015- Operating Leases | 9.1 |
2016- Operating Leases | 6.9 |
2017- Operating Leases | 5.9 |
2018- Operating Leases | 4.7 |
2019- Operating Leases | 3.7 |
After 2019- Operating Leases | 8.9 |
Total minimum payment required- Operating Leases | 39.2 |
2015- Total Leases | 12.2 |
2016- Total Leases | 8.7 |
2017- Total Leases | 6.7 |
2018- Total Leases | 4.7 |
2019- Total Leases | 3.7 |
After 2019- Total Leases | 8.9 |
Total minimum payment required | $44.90 |
Statutory_Financial_Informatio2
Statutory Financial Information, Capital Requirements and Restrictions on Dividends and Transfers of Funds (Statutory Financial Information) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statutory unassigned surplus | $772.20 | $720.80 | |
Statutory surplus | 1,307.80 | 1,256.40 | |
Statutory net income | 190.3 | 122.2 | 50.4 |
Selective Insurace Company of America (SICA) [Member] | |||
Statutory unassigned surplus | 338.8 | 309.2 | |
Statutory surplus | 493 | 463.4 | |
Statutory net income | 83.9 | 53.1 | 29.8 |
Selective Way Insurance Company (SWIC) [Member] | |||
Statutory unassigned surplus | 201.3 | 201.3 | |
Statutory surplus | 250.3 | 250.3 | |
Statutory net income | 37 | 27.5 | 10.1 |
Selective Insurance Company of South Carolina (SICSC) [Member] | |||
Statutory unassigned surplus | 83.9 | 80.7 | |
Statutory surplus | 115.1 | 111.9 | |
Statutory net income | 14 | 8.2 | 2.8 |
Selective Insurance Company of the Southeast (SICSE) [Member] | |||
Statutory unassigned surplus | 59.3 | 56.2 | |
Statutory surplus | 84.9 | 81.8 | |
Statutory net income | 10.5 | 6 | 1.6 |
Selective Insurance Company of New York (SICNY) [Member] | |||
Statutory unassigned surplus | 54.9 | 51.5 | |
Statutory surplus | 82.6 | 79.3 | |
Statutory net income | 10.3 | 6.9 | 2.7 |
Selective Insurance Company of New England (SICNE) [Member] | |||
Statutory unassigned surplus | 5.3 | 4.7 | |
Statutory surplus | 35.4 | 34.9 | |
Statutory net income | 4.4 | 3.1 | 0.6 |
Selective Auto Insurance Company of New Jersey (SAICNJ) [Member] | |||
Statutory unassigned surplus | 18.4 | 14.2 | |
Statutory surplus | 61.3 | 57 | |
Statutory net income | 9.1 | 2.5 | 1.5 |
Mesa Underwriting Specialty Insurance Company (MUSIC) [Member] | |||
Statutory unassigned surplus | -1.7 | -6.2 | |
Statutory surplus | 66.8 | 62.3 | |
Statutory net income | 7.3 | 5.2 | 0.9 |
Selective Casualty Insurance Company (SCIC) [Member] | |||
Statutory unassigned surplus | 8.2 | 6.1 | |
Statutory surplus | 82.7 | 80.5 | |
Statutory net income | 9.6 | 6.6 | 0.2 |
Selective Fire and Casualty Insurance Company (SFCIC) [Member] | |||
Statutory unassigned surplus | 3.8 | 3.1 | |
Statutory surplus | 35.7 | 35 | |
Statutory net income | $4.20 | $3.10 | $0.20 |
Statutory_Financial_Informatio3
Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds (Dividends) (Details) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statutory adjusted capital in excess of authorized risk based capital ratio | 4.5 | ||
Total stockholders’ equity | $1,275,586,000 | $1,153,928,000 | $1,090,592,000 |
Ordinary dividends paid | 57,500,000 | ||
Maximum ordinary dividends | 162,000,000 | ||
Maximum borrowing percentage | 10.00% | ||
Selective Insurace Company of America (SICA) [Member] | |||
Ordinary dividends paid | 22,000,000 | ||
Maximum ordinary dividends | 62,300,000 | ||
Selective Way Insurance Company (SWIC) [Member] | |||
Ordinary dividends paid | 18,200,000 | ||
Maximum ordinary dividends | 32,700,000 | ||
Selective Insurance Company of South Carolina (SICSC) [Member] | |||
Ordinary dividends paid | 5,000,000 | ||
Maximum ordinary dividends | 14,000,000 | ||
Selective Insurance Company of the Southeast (SICSE) [Member] | |||
Ordinary dividends paid | 2,000,000 | ||
Maximum ordinary dividends | 10,500,000 | ||
Selective Insurance Company of New York (SICNY) [Member] | |||
Ordinary dividends paid | 2,500,000 | ||
Maximum ordinary dividends | 8,300,000 | ||
Selective Insurance Company of New England (SICNE) [Member] | |||
Ordinary dividends paid | 2,000,000 | ||
Maximum ordinary dividends | 4,400,000 | ||
Selective Auto Insurance Company of New Jersey (SAICNJ) [Member] | |||
Ordinary dividends paid | 1,000,000 | ||
Maximum ordinary dividends | 8,900,000 | ||
Mesa Underwriting Specialty Insurance Company (MUSIC) [Member] | |||
Maximum ordinary dividends | 7,300,000 | ||
Selective Casualty Insurance Company (SCIC) [Member] | |||
Ordinary dividends paid | 3,000,000 | ||
Maximum ordinary dividends | 9,500,000 | ||
Selective Fire and Casualty Insurance Company (SFCIC) [Member] | |||
Ordinary dividends paid | 1,800,000 | ||
Maximum ordinary dividends | 4,100,000 | ||
Parent Company [Member] | |||
Investment Portfolio | 83,000,000 | ||
Total stockholders’ equity | 1,300,000,000 | ||
Additional Borrowing Capacity for Parent | $46,400,000 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Feb. 13, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Net premiums earned | $469,850 | $462,639 | $463,625 | $456,495 | $451,312 | $437,568 | $426,252 | $420,940 | $1,852,609 | $1,736,072 | $1,584,119 | |||||||||
Net Investment Income | 32,108 | 34,292 | 36,774 | 35,534 | 35,313 | 32,457 | 34,003 | 32,870 | 138,708 | 134,643 | 131,877 | |||||||||
Net realized gains (losses) | -389 | 15,231 | 4,539 | 7,218 | -1,208 | 13,431 | 5,154 | 3,355 | 37,703 | 26,375 | 13,252 | |||||||||
Underwriting gain (loss), before federal income tax | 38,637 | 34,437 | 10,084 | -5,015 | 11,971 | 10,151 | 4,483 | 12,161 | ||||||||||||
Net income from continuing operations | 41,350 | 53,162 | 29,341 | 17,974 | 25,335 | 32,653 | 27,122 | 22,305 | 141,827 | 107,415 | 37,963 | |||||||||
Loss on disposal of discontinued operations, net of tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -997 | ||||||||||||
Net income | 41,350 | 53,162 | 29,341 | 17,974 | 25,335 | 32,653 | 27,122 | 21,308 | 141,827 | 106,418 | 37,963 | |||||||||
Other comprehensive income (loss) | -29,337 | -18,887 | 26,483 | 16,678 | 7,768 | -2,195 | -62,643 | 27,881 | -5,063 | -29,189 | 11,746 | |||||||||
Comprehensive income | 12,013 | 34,275 | 55,824 | 34,652 | 33,103 | 30,458 | -35,521 | 49,189 | 136,764 | 77,229 | 49,709 | |||||||||
Basic net income per share | $0.73 | $0.94 | $0.52 | $0.32 | $0.45 | $0.59 | $0.49 | $0.38 | $2.52 | $1.91 | $0.69 | |||||||||
Diluted net income per share | $0.72 | $0.93 | $0.51 | $0.31 | $0.44 | $0.57 | $0.48 | $0.38 | $2.47 | $1.87 | $0.68 | |||||||||
Dividends to stockholders | $0.14 | [1] | $0.13 | [1] | $0.13 | [1] | $0.13 | [1] | $0.13 | [1] | $0.13 | [1] | $0.13 | [1] | $0.13 | [1] | $0.53 | $0.52 | $0.52 | |
Price range common stock, high | 28.08 | 27.65 | [2] | 25.46 | [2] | 25.42 | [2] | 26.99 | [2] | 28.31 | [2] | 25.95 | [2] | 24.75 | [2] | 24.13 | [2] | |||
Price range of common stock, low | 25.49 | 22.01 | [2] | 21.97 | [2] | 22.14 | [2] | 21.38 | [2] | 23.55 | [2] | 22.61 | [2] | 19.58 | [2] | 19.53 | [2] | |||
Accumulated other comprehensive income (loss) [Member] | ||||||||||||||||||||
Other comprehensive income (loss) | ($5,063) | ($29,189) | $11,746 | |||||||||||||||||
[1] | 1 See Note 20. “Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds†for a discussion of dividend restrictions. | |||||||||||||||||||
[2] | 2 These ranges of high and low prices of the Parent’s common stock, as reported by the NASDAQ Global Select Market, represent actual transactions. Price quotations do not include retail markups, markdowns, and commissions. The range of high and low prices for common stock for the period beginning January 2, 2015 and ending February 13, 2015 was $25.49 to $28.08. |
Schedule_I_Summay_of_Investmen1
Schedule I - Summay of Investments - Other Than Investments in Related Parties (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Amortized Cost or Cost | $4,683,151 |
Carrying Amount | 4,806,834 |
Held-to-maturity Securities [Member] | |
Amortized Cost or Cost | 317,179 |
Fair Value | 333,961 |
Carrying Amount | 318,137 |
Held-to-maturity Securities [Member] | Foreign Government Obligations [Member] | |
Amortized Cost or Cost | 5,292 |
Fair Value | 5,394 |
Carrying Amount | 5,339 |
Held-to-maturity Securities [Member] | Obligations of States and Political Subdivisions [Member] | |
Amortized Cost or Cost | 285,301 |
Fair Value | 299,132 |
Carrying Amount | 287,372 |
Held-to-maturity Securities [Member] | Public utilities [Member] | |
Amortized Cost or Cost | 11,019 |
Fair Value | 12,483 |
Carrying Amount | 11,000 |
Held-to-maturity Securities [Member] | All Other Corporate Securities [Member] | |
Amortized Cost or Cost | 7,880 |
Fair Value | 8,939 |
Carrying Amount | 7,626 |
Held-to-maturity Securities [Member] | Asset-backed Securities [Member] | |
Amortized Cost or Cost | 2,818 |
Fair Value | 2,823 |
Carrying Amount | 2,363 |
Held-to-maturity Securities [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | |
Amortized Cost or Cost | 4,869 |
Fair Value | 5,190 |
Carrying Amount | 4,437 |
AFS Fixed Income Securities [Member] | |
Amortized Cost or Cost | 3,975,786 |
Fair Value | 4,066,122 |
Carrying Amount | 4,066,122 |
AFS Fixed Income Securities [Member] | U.S. Government and Government Agencies [Member] | |
Amortized Cost or Cost | 116,666 |
Fair Value | 124,130 |
Carrying Amount | 124,130 |
AFS Fixed Income Securities [Member] | Foreign Government Obligations [Member] | |
Amortized Cost or Cost | 27,035 |
Fair Value | 27,831 |
Carrying Amount | 27,831 |
AFS Fixed Income Securities [Member] | Obligations of States and Political Subdivisions [Member] | |
Amortized Cost or Cost | 1,208,776 |
Fair Value | 1,246,264 |
Carrying Amount | 1,246,264 |
AFS Fixed Income Securities [Member] | Public utilities [Member] | |
Amortized Cost or Cost | 149,006 |
Fair Value | 150,977 |
Carrying Amount | 150,977 |
AFS Fixed Income Securities [Member] | All Other Corporate Securities [Member] | |
Amortized Cost or Cost | 1,614,421 |
Fair Value | 1,648,829 |
Carrying Amount | 1,648,829 |
AFS Fixed Income Securities [Member] | Asset-backed Securities [Member] | |
Amortized Cost or Cost | 176,837 |
Fair Value | 177,224 |
Carrying Amount | 177,224 |
AFS Fixed Income Securities [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | |
Amortized Cost or Cost | 177,932 |
Fair Value | 179,593 |
Carrying Amount | 179,593 |
AFS Fixed Income Securities [Member] | Residential Mortgage Backed Securities (RMBS) [Member] | |
Amortized Cost or Cost | 505,113 |
Fair Value | 511,274 |
Carrying Amount | 511,274 |
Equity Securities [Member] | |
Amortized Cost or Cost | 159,011 |
Fair Value | 191,400 |
Carrying Amount | 191,400 |
Equity Securities [Member] | Public Utility, Equities [Member] | |
Amortized Cost or Cost | 8,815 |
Fair Value | 10,284 |
Carrying Amount | 10,284 |
Equity Securities [Member] | Banks, Trust and Insurance Companies [Member] | |
Amortized Cost or Cost | 30,187 |
Fair Value | 35,348 |
Carrying Amount | 35,348 |
Equity Securities [Member] | Industrial, Miscellaneous, and All Other [Member] | |
Amortized Cost or Cost | 120,009 |
Fair Value | 145,768 |
Carrying Amount | 145,768 |
Short-term Investments [Member] | |
Amortized Cost or Cost | 131,972 |
Fair Value | 131,972 |
Carrying Amount | 131,972 |
Other Investments [Member] | |
Amortized Cost or Cost | 99,203 |
Carrying Amount | $99,203 |
Parent_Corporation_Balance_She
Parent Corporation Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
ASSETS | ||||
Fixed maturity securities, available-for-sale – at fair value (amortized cost: $49,890 - 2014; $455,447 – 2013) | $4,066,122 | $3,715,536 | ||
Short-term investments | 131,972 | 174,251 | ||
Cash | 23,959 | 193 | 210 | 762 |
Current federal income tax | 0 | 512 | ||
Deferred federal income tax | 98,449 | 122,613 | ||
Other assets | 73,215 | 75,727 | ||
Total assets | 6,581,550 | 6,270,170 | ||
Liabilities: | ||||
Notes payable | 379,297 | 392,414 | ||
Other liabilities | 190,675 | 203,476 | ||
Total liabilities | 5,305,964 | 5,116,242 | ||
Stockholders’ Equity: | ||||
Preferred stock of $0 par value per share: Authorized shares: 5,000,000; no shares issued or outstanding | 0 | 0 | ||
Common stock of $2 par value per share Authorized shares: 360,000,000 Issued: 99,947,933 - 2014; 99,120,235 - 2013 | 199,896 | 198,240 | ||
Additional paid-in capital | 305,385 | 288,182 | ||
Retained earnings | 1,313,440 | 1,202,015 | ||
Accumulated other comprehensive income | 19,788 | 24,851 | ||
Treasury stock - at cost (shares: 43,353,181 - 2014; 43,198,622 - 2013) | -562,923 | -559,360 | ||
Total stockholders’ equity | 1,275,586 | 1,153,928 | 1,090,592 | |
Total liabilities and stockholders’ equity | 6,581,550 | 6,270,170 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Fixed maturity securities, available-for-sale – at fair value (amortized cost: $49,890 - 2014; $455,447 – 2013) | 50,028 | 55,623 | ||
Short-term investments | 16,605 | 15,399 | ||
Cash | 16,367 | 193 | 210 | 722 |
Investment in subsidiaries | 1,604,162 | 1,493,996 | ||
Current federal income tax | 16,848 | 28,471 | ||
Deferred federal income tax | 15,781 | 15,122 | ||
Other assets | 7,268 | 9,410 | ||
Total assets | 1,727,059 | 1,618,214 | ||
Liabilities: | ||||
Notes payable | 334,297 | 334,414 | ||
Intercompany notes payable | 88,961 | 102,721 | ||
Accrued Long Term Stock Compensation | 21,890 | 20,828 | ||
Other liabilities | 6,325 | 6,323 | ||
Total liabilities | 451,473 | 464,286 | ||
Stockholders’ Equity: | ||||
Preferred stock of $0 par value per share: Authorized shares: 5,000,000; no shares issued or outstanding | 0 | 0 | ||
Common stock of $2 par value per share Authorized shares: 360,000,000 Issued: 99,947,933 - 2014; 99,120,235 - 2013 | 199,896 | 198,240 | ||
Additional paid-in capital | 305,385 | 288,182 | ||
Retained earnings | 1,313,440 | 1,202,015 | ||
Accumulated other comprehensive income | 19,788 | 24,851 | ||
Treasury stock - at cost (shares: 43,353,181 - 2014; 43,198,622 - 2013) | -562,923 | -559,360 | ||
Total stockholders’ equity | 1,275,586 | 1,153,928 | ||
Total liabilities and stockholders’ equity | $1,727,059 | $1,618,214 |
Parent_Corporation_Balance_She1
Parent Corporation Balance Sheets (Parenthetical) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | |||
Available-for-sale Debt Securities, Amortized Cost | $3,975,786 | $3,675,977 | |
Preferred stock, par value per share | $0 | $0 | $0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | |
Common stock, par value per share | $2 | $2 | |
Common stock, shares authorized | 360,000,000 | 360,000,000 | |
Common stock, shares issued | 99,947,933 | 99,120,235 | |
Treasury stock, shares | 43,353,181 | 43,198,622 | |
Parent Company [Member] | |||
Available-for-sale Debt Securities, Amortized Cost | $49,890 | $55,447 | |
Preferred stock, par value per share | $0 | $0 | |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Common stock, par value per share | $2 | $2 | |
Common stock, shares authorized | 360,000,000 | 360,000,000 | |
Common stock, shares issued | 99,947,933 | 99,120,235 | |
Treasury stock, shares | 43,353,181 | 43,198,622 |
Parent_Corporation_Statements_
Parent Corporation Statements of Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||||||||||
Dividends Paid to Parent Company | ($57,500) | ||||||||||
Net investment income earned | 32,108 | 34,292 | 36,774 | 35,534 | 35,313 | 32,457 | 34,003 | 32,870 | 138,708 | 134,643 | 131,877 |
Other income | 16,945 | 12,294 | 9,118 | ||||||||
Total revenues | 2,034,861 | 1,903,741 | 1,734,102 | ||||||||
Expenses: | |||||||||||
Interest expense | 22,086 | 22,538 | 18,872 | ||||||||
Other expenses | 33,673 | 35,686 | 30,462 | ||||||||
Total expenses | 1,837,730 | 1,759,939 | 1,696,467 | ||||||||
Federal income tax benefit: | |||||||||||
Current | 28,415 | 24,147 | 5,647 | ||||||||
Deferred | 26,889 | 12,240 | -5,975 | ||||||||
Total federal income tax benefit | 55,304 | 36,387 | -328 | ||||||||
Net income from continuing operations | 41,350 | 53,162 | 29,341 | 17,974 | 25,335 | 32,653 | 27,122 | 22,305 | 141,827 | 107,415 | 37,963 |
Loss on disposal of discontinued operations | 0 | -997 | 0 | ||||||||
Net income | 41,350 | 53,162 | 29,341 | 17,974 | 25,335 | 32,653 | 27,122 | 21,308 | 141,827 | 106,418 | 37,963 |
Parent Company [Member] | |||||||||||
Revenues: | |||||||||||
Dividends Paid to Parent Company | 57,511 | 32,129 | 196,091 | ||||||||
Net investment income earned | 620 | 585 | 495 | ||||||||
Other income | 342 | 55 | 464 | ||||||||
Total revenues | 58,473 | 32,769 | 197,050 | ||||||||
Expenses: | |||||||||||
Interest expense | 23,840 | 24,309 | 20,711 | ||||||||
Other expenses | 24,575 | 27,888 | 20,632 | ||||||||
Total expenses | 48,415 | 52,197 | 41,343 | ||||||||
Income (loss) from continuing operations before federal income tax | 10,058 | -19,428 | 155,707 | ||||||||
Federal income tax benefit: | |||||||||||
Current | -15,920 | -22,779 | -4,602 | ||||||||
Deferred | -646 | 4,835 | -9,347 | ||||||||
Total federal income tax benefit | -16,566 | -17,944 | -13,949 | ||||||||
Net income (loss) from continuing operations before equity in undistributed income of subsidiaries | 26,624 | -1,484 | 169,656 | ||||||||
Equity In Undistributed Income Of Continuing Subsidiaries Net Of Tax | -115,203 | -108,899 | 0 | ||||||||
Dividends in excess of continuing subsidiaries' current year earnings | 0 | 0 | -131,693 | ||||||||
Net income from continuing operations | 141,827 | 107,415 | 37,963 | ||||||||
Loss on disposal of discontinued operations | 0 | -997 | 0 | ||||||||
Net income | $141,827 | $106,418 | $37,963 |
Parent_Corporation_Statements_1
Parent Corporation Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | |||
Net income | $141,827 | $106,418 | $37,963 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Stock-based compensation expense | 8,702 | 8,630 | 6,939 |
Loss on disposal of discontinued operations | 0 | 997 | 0 |
Net realized losses | -26,599 | -20,732 | -8,988 |
Amortization - other | 45,346 | 43,461 | 38,693 |
Changes in assets and liabilities: | |||
Decrease (increase) in net federal income taxes | 31,323 | 14,834 | -7,812 |
(Decrease) increase in other assets and other liabilities | -33,490 | -16,642 | 32,750 |
Net adjustments | 90,936 | 229,706 | 188,736 |
Net cash provided by operating activities | 232,763 | 336,124 | 226,699 |
Investing Activities | |||
Purchase of fixed income securities, available-for-sale | -843,616 | -1,069,387 | -884,911 |
Redemption and maturities of fixed income securities, available-for-sale | 482,816 | 513,804 | 439,957 |
Sale of fixed income securities, available for sale | 73,415 | 116,584 | 118,260 |
Purchase of short-term investments | -1,410,123 | -2,056,576 | -1,735,691 |
Sale of short-term investments | 1,452,402 | 2,096,805 | 1,738,255 |
Purchase of subsidiary, net of cash acquired | 0 | 0 | 255 |
Sale of subsidiary | 0 | 1,225 | 751 |
Net cash used in investing activities | -169,468 | -391,025 | -202,712 |
Financing Activities | |||
Dividends to stockholders | -28,428 | -27,416 | -26,944 |
Acquisition of treasury stock | -3,563 | -3,716 | -3,495 |
Proceeds from notes payable, net of debt issuance costs | 0 | 178,435 | 0 |
Net proceeds from stock purchase and compensation plans | 7,283 | 7,119 | 4,840 |
Excess tax benefits from share-based payment arrangements | 1,020 | 1,545 | 1,060 |
Repayment of notes payable | 0 | -100,000 | 0 |
Net cash (used in) provided by financing activities | -39,529 | 54,884 | -24,539 |
Cash, beginning of year | 193 | 210 | 762 |
Cash, end of year | 23,959 | 193 | 210 |
Parent Company [Member] | |||
Operating Activities | |||
Net income | 141,827 | 106,418 | 37,963 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity In Undistributed Income Of Continuing Subsidiaries Net Of Tax | -115,203 | -108,899 | 0 |
Dividends in excess of continuing subsidiaries' current year income | 0 | 0 | 131,693 |
Stock-based compensation expense | 8,702 | 8,630 | 6,939 |
Loss on disposal of discontinued operations | 0 | 997 | 0 |
Net realized losses | -2 | 0 | -219 |
Amortization - other | 1,421 | 4,353 | 450 |
Changes in assets and liabilities: | |||
Increase in accrued salaries and benefits | 1,062 | 6,791 | 5,221 |
Decrease (increase) in net federal income taxes | 10,977 | -14,968 | 4,897 |
(Decrease) increase in other assets and other liabilities | 1,045 | 1,204 | -7,014 |
Net adjustments | -91,998 | -101,892 | 141,967 |
Net cash provided by operating activities | 49,829 | 4,526 | 179,930 |
Investing Activities | |||
Purchase of fixed income securities, available-for-sale | -18,511 | -21,708 | -148,604 |
Redemption and maturities of fixed income securities, available-for-sale | 23,210 | 6,432 | 118,371 |
Sale of fixed income securities, available for sale | 300 | 0 | 8,973 |
Purchase of short-term investments | -102,717 | -241,748 | -106,539 |
Sale of short-term investments | 101,510 | 253,136 | 113,700 |
Capital contribution to subsidiaries | 0 | -57,125 | -139,122 |
Purchase of subsidiary, net of cash acquired | 0 | 0 | 255 |
Sale of subsidiary | 0 | 1,225 | 751 |
Net cash used in investing activities | 3,792 | -59,788 | -152,215 |
Financing Activities | |||
Dividends to stockholders | -28,428 | -27,416 | -26,944 |
Acquisition of treasury stock | -3,563 | -3,716 | -3,495 |
Proceeds from notes payable, net of debt issuance costs | 0 | 178,435 | 0 |
Net proceeds from stock purchase and compensation plans | 7,283 | 7,119 | 4,840 |
Excess tax benefits from share-based payment arrangements | 1,020 | 1,545 | 1,060 |
Repayment of notes payable | 0 | -100,000 | 0 |
Principal payments of borrowings from subsidiaries | -13,759 | -722 | -3,688 |
Net cash (used in) provided by financing activities | -37,447 | 55,245 | -28,227 |
Net increase (decrease) in cash | 16,174 | -17 | -512 |
Cash, beginning of year | 193 | 210 | 722 |
Cash, end of year | $16,367 | $193 | $210 |
Schedule_III_Supplementary_Ins1
Schedule III - Supplementary Insurance Information (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Deferred policy acquisition costs | $185,608 | $172,981 | $155,523 | |||
Reserve for loss and loss expenses | 3,477,870 | 3,349,770 | 4,068,941 | |||
Unearned premiums | 1,095,819 | 1,059,155 | 974,706 | |||
Net premiums earned | 1,852,609 | 1,736,072 | 1,584,119 | |||
Net investment income | 165,307 | [1] | 155,375 | [1] | 140,865 | [1] |
Losses and loss expenses incurred | 1,157,501 | 1,121,738 | 1,120,990 | |||
Amortization of deferred policy acquisition costs | 364,295 | [2] | 331,828 | [3] | 298,547 | [4] |
Other operating expenses | 252,670 | [5] | 243,740 | [6] | 228,589 | [7] |
Net premiums written | 1,885,280 | 1,810,159 | 1,666,883 | |||
Policy acquisition costs | 624,470 | 579,977 | 526,143 | |||
Other income | -16,945 | -12,294 | -9,118 | |||
Other expenses | 33,673 | 35,686 | 30,462 | |||
Total | 616,965 | 575,568 | 527,136 | |||
Standard Commercial Lines [Member] | ||||||
Deferred policy acquisition costs | 147,285 | 138,397 | 123,861 | |||
Reserve for loss and loss expenses | 3,000,796 | 2,877,087 | 2,753,556 | |||
Unearned premiums | 734,697 | 708,861 | 642,032 | |||
Net premiums earned | 1,415,712 | 1,316,619 | 1,225,335 | |||
Net investment income | 0 | [1] | 0 | [1] | 0 | [1] |
Losses and loss expenses incurred | 870,018 | 831,261 | 853,143 | |||
Amortization of deferred policy acquisition costs | 295,774 | [2] | 270,443 | [3] | 247,016 | [4] |
Other operating expenses | 188,699 | [5] | 181,059 | [6] | 166,111 | [7] |
Net premiums written | 1,441,047 | 1,380,740 | 1,263,738 | |||
Standard Personal Lines [Member] | ||||||
Deferred policy acquisition costs | 17,495 | 18,149 | 17,690 | |||
Reserve for loss and loss expenses | 279,761 | 312,411 | 1,195,082 | |||
Unearned premiums | 285,777 | 286,969 | 275,886 | |||
Net premiums earned | 296,747 | 294,332 | 279,555 | |||
Net investment income | 0 | [1] | 0 | [1] | 0 | [1] |
Losses and loss expenses incurred | 197,182 | 206,450 | 204,644 | |||
Amortization of deferred policy acquisition costs | 34,851 | [2] | 33,097 | [3] | 33,684 | [4] |
Other operating expenses | 48,178 | [5] | 46,140 | [6] | 44,741 | [7] |
Net premiums written | 292,061 | 297,757 | 289,848 | |||
Excess And Surplus Operations [Member] | ||||||
Deferred policy acquisition costs | 20,828 | 16,435 | 13,972 | |||
Reserve for loss and loss expenses | 197,313 | 160,272 | 120,303 | |||
Unearned premiums | 75,345 | 63,325 | 56,788 | |||
Net premiums earned | 140,150 | 125,121 | 79,229 | |||
Net investment income | 0 | [1] | 0 | [1] | 0 | [1] |
Losses and loss expenses incurred | 90,301 | 84,027 | 63,203 | |||
Amortization of deferred policy acquisition costs | 33,670 | [2] | 28,288 | [3] | 17,847 | [4] |
Other operating expenses | 15,793 | [5] | 16,541 | [6] | 17,737 | [7] |
Net premiums written | 152,172 | 131,662 | 113,297 | |||
Investments Segment [Member] | ||||||
Deferred policy acquisition costs | 0 | 0 | 0 | |||
Reserve for loss and loss expenses | 0 | 0 | 0 | |||
Unearned premiums | 0 | 0 | 0 | |||
Net premiums earned | 0 | 0 | 0 | |||
Net investment income | 165,307 | [1] | 155,375 | [1] | 140,865 | [1] |
Losses and loss expenses incurred | 0 | 0 | 0 | |||
Amortization of deferred policy acquisition costs | 0 | [2] | 0 | [3] | 0 | [4] |
Other operating expenses | 0 | [5] | 0 | [6] | 0 | [7] |
Net premiums written | 0 | 0 | 0 | |||
Miscellaneous Income [Member] | ||||||
Other income | -16,598 | [5] | -12,201 | [6] | -8,827 | [7] |
Other Income [Member] | ||||||
Other income | -347 | -93 | -291 | |||
Miscellaneous Expense [Member] | ||||||
Other expenses | 9,093 | [5] | 7,792 | [6] | 9,820 | [7] |
Other Expense [Member] | ||||||
Other expenses | $24,580 | $27,894 | $20,642 | |||
[1] | Includes “Net investment income earned†and “Net realized investment gains†on the Consolidated Statements of Income. | |||||
[2] | The total of “Amortization of deferred policy acquisition costs†of $364,295 and “Other operating expenses†of $252,670 reconciles to the Consolidated Statements of Income as follows: | |||||
[3] | The total of “Amortization of deferred policy acquisition costs†of $331,828 and “Other operating expenses†of $243,740 reconciles to the Consolidated Statements of Income as follows: | |||||
[4] | The total of “Amortization of deferred policy acquisition costs†of $298,547 and “Other operating expenses†of $228,589 reconciles to the Consolidated Statements of Income as follows: | |||||
[5] | In addition to amounts related to the Standard Commercial Lines, Standard Personal Lines, and E&S Lines, “Other income†and “Other expenses†on the Consolidated Statements of Income includes holding company income and expense amounts of $347 and $24,580, respectively. | |||||
[6] | In addition to amounts related to the Standard Commercial Lines, Standard Personal Lines, and E&S Lines, “Other income†and “Other expenses†on the Consolidated Statements of Income includes holding company income and expense amounts of $93 and $27,894, respectively. | |||||
[7] | In addition to amounts related to the Standard Commercial Lines, Standard Personal Lines, and E&S Lines, “Other income†and “Other expenses†on the Consolidated Statements of Income includes holding company income and expense amounts of $291 and $20,642, respectively. |
Schedule_IV_Reinsurance_Detail
Schedule IV - Reinsurance (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Direct Amount | $2,183,258 | $2,048,530 | $1,873,007 | ||||||||
Assumed From Other Companies | 34,653 | 44,464 | 65,884 | ||||||||
Ceded to Other Companies | 365,302 | 356,922 | 354,772 | ||||||||
Total Net Premiums Earned | 469,850 | 462,639 | 463,625 | 456,495 | 451,312 | 437,568 | 426,252 | 420,940 | 1,852,609 | 1,736,072 | 1,584,119 |
Percentage of amount assumed to net | 2.00% | 3.00% | 4.00% | ||||||||
Accident and Health Insurance Segment [Member] | |||||||||||
Direct Amount | 44 | 55 | 58 | ||||||||
Assumed From Other Companies | 0 | 0 | 0 | ||||||||
Ceded to Other Companies | 44 | 55 | 58 | ||||||||
Total Net Premiums Earned | 0 | 0 | 0 | ||||||||
Percentage of amount assumed to net | 0.00% | 0.00% | 0.00% | ||||||||
Property and liability insurance [Member] | |||||||||||
Direct Amount | 2,183,214 | 2,048,475 | 1,872,949 | ||||||||
Assumed From Other Companies | 34,653 | 44,464 | 65,884 | ||||||||
Ceded to Other Companies | 365,258 | 356,867 | 354,714 | ||||||||
Total Net Premiums Earned | $1,852,609 | $1,736,072 | $1,584,119 | ||||||||
Percentage of amount assumed to net | 2.00% | 3.00% | 4.00% |
Schedule_V_Allowance_for_Uncol1
Schedule V - Allowance for Uncollectible Premiums and Other Receivables (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Balance, January 1 | $9,542 | $8,706 | $7,668 |
Additions | 4,617 | 3,733 | 4,536 |
Deductions | -3,122 | -2,897 | -3,498 |
Balance, December 31 | $11,037 | $9,542 | $8,706 |