Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 05, 2018 | Jun. 30, 2017 | |
Entity Information [Line Items] | |||
Entity Registrant Name | CITIZENS INC | ||
Entity Central Index Key | 24,090 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 340,350,072 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Common Stock Class A [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 49,080,114 | ||
Common Stock Class B [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1,001,714 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investments: | ||
Fixed maturities available-for-sale, at fair value (cost: $935,977 and $860,473 in 2017 and 2016, respectively) | $ 974,609 | $ 881,668 |
Fixed maturities held-to-maturity, at amortized cost (fair value:$241,377 and $252,545 in 2017 and 2016, respectively) | 233,961 | 247,004 |
Equity securities available-for-sale, at fair value (cost: $15,289 and $17,765 in 2017 and 2016, respectively) | 16,164 | 18,159 |
Mortgage loans on real estate | 195 | 232 |
Policy loans | 73,735 | 66,672 |
Real estate held for investment (less $5,479 and $1,083 accumulated depreciation in 2017 and 2016, respectively) | 7,416 | 5,919 |
Real estate held for sale (less $1,008 accumulated depreciation in 2016) | 0 | 1,939 |
Other long-term investments | 36 | 38 |
Short-term investments | 0 | 508 |
Total investments | 1,306,116 | 1,222,139 |
Cash and cash equivalents | 46,064 | 35,510 |
Accrued investment income | 19,062 | 17,903 |
Reinsurance recoverable | 3,715 | 3,862 |
Deferred policy acquisition costs | 167,063 | 167,790 |
Cost of customer relationships acquired | 17,499 | 19,415 |
Goodwill | 12,624 | 17,255 |
Other intangible assets | 961 | 966 |
Deferred tax assets, net | 50,797 | 76,869 |
Property and equipment, net | 6,624 | 7,890 |
Due premiums, net (less $1,611 and $1,600 allowance for doubtful accounts in 2017 and 2016, respectively) | 12,765 | 12,852 |
Prepaid expenses | 251 | 299 |
Other assets | 912 | 918 |
Total assets | 1,644,453 | 1,583,668 |
Future policy benefits reserves: | ||
Life insurance | 1,133,875 | 1,060,297 |
Annuities | 73,688 | 69,003 |
Accident and health | 990 | 1,022 |
Dividend accumulations | 23,713 | 20,897 |
Premiums paid in advance | 51,431 | 48,198 |
Policy claims payable | 8,610 | 9,538 |
Other policyholders' funds | 8,483 | 7,744 |
Total policy liabilities | 1,300,790 | 1,216,699 |
Commissions payable | 2,430 | 3,540 |
Current federal income tax payable | 93,365 | 81,270 |
Payables for securities in process of settlement | 0 | 3,061 |
Other liabilities | 24,355 | 29,998 |
Total liabilities | 1,420,940 | 1,334,568 |
Stockholders' equity: | ||
Accumulated deficit | (54,375) | (16,248) |
Accumulated other comprehensive income: | ||
Unrealized gains on securities, net of tax | 26,332 | 13,792 |
Treasury stock, at cost | (11,011) | (11,011) |
Total stockholders' equity | 223,513 | 249,100 |
Total liabilities and stockholders' equity | 1,644,453 | 1,583,668 |
Common Stock Class A [Member] | ||
Stockholders' equity: | ||
Common Stock | 259,383 | 259,383 |
Common Stock Class B [Member] | ||
Stockholders' equity: | ||
Common Stock | $ 3,184 | $ 3,184 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Position (Parenthetical) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Investments: | ||
Fixed maturities available-for-sale, cost | $ 935,977,000 | $ 860,473,000 |
Fixed maturities held-to-maturity, fair value | 241,377,000 | 252,545,000 |
Available-for-sale equity securities, amortized cost basis | 15,289,000 | 17,765,000 |
Real estate held for investment, accumulated depreciation | 5,479,000 | 1,083,000 |
Real estate held for sale, accumulated depreciation | 0 | 1,008,000 |
Due premiums, allowance for doubtful accounts | $ 1,611,000 | $ 1,600,000 |
Common Stock Class A [Member] | ||
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 52,215,852 | 52,215,852 |
Common stock, shares outstanding (in shares) | 52,215,852 | 52,215,852 |
Common stock, shares in treasury (in shares) | 3,135,738 | 3,135,738 |
Common Stock Class B [Member] | ||
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Common stock, shares issued (in shares) | 1,001,714 | 1,001,714 |
Common stock, shares outstanding (in shares) | 1,001,714 | 1,001,714 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Premiums: | |||
Life insurance | $ 191,342 | $ 191,254 | $ 187,686 |
Accident and health insurance | 1,392 | 1,546 | 1,599 |
Property insurance | 4,986 | 5,076 | 5,195 |
Net investment income | 53,146 | 48,560 | 45,782 |
Realized investment gains, net | 518 | (1,985) | (5,459) |
Other income | 1,243 | 955 | 1,465 |
Total revenue | 252,627 | 245,406 | 236,268 |
Insurance benefits paid or provided: | |||
claims and surrenders | 82,905 | 81,367 | 78,879 |
Increase in future policy benefit reserves | 76,029 | 75,881 | 77,060 |
Policyholders' dividends | 6,268 | 6,832 | 10,747 |
Total insurance benefits paid or provided | 165,202 | 164,080 | 166,686 |
Commissions | 41,324 | 44,641 | 43,625 |
Other general expenses | 46,388 | 33,356 | 33,287 |
Capitalization of deferred policy acquisition costs | (29,120) | (32,732) | (31,104) |
Amortization of deferred policy acquisition costs | 29,690 | 28,515 | 23,400 |
Amortization of cost of customer relationships acquired | 2,129 | 2,063 | 2,317 |
Total benefits and expenses | 255,613 | 239,923 | 238,211 |
Income (loss) before federal income tax | (2,986) | 5,483 | (1,943) |
Federal income tax expense (benefit) | 35,141 | 3,514 | 1,200 |
Net income (loss) | (38,127) | 1,969 | (3,143) |
Unrealized gains (losses) on available-for-sale securities: | |||
Unrealized holding gains (losses) arising during the period | 17,666 | (1,659) | (24,217) |
Reclassification adjustments for losses included in net income | 546 | 1,974 | 5,415 |
Unrealized gains (losses) on available-for-sale securities, net | 18,212 | 315 | (18,802) |
Income tax expense (benefit) on unrealized gains (losses) on available-for-sale securities | 5,672 | 110 | (6,539) |
Other comprehensive income (loss) | 12,540 | 205 | (12,263) |
Total comprehensive income (loss) | $ (25,587) | $ 2,174 | $ (15,406) |
Common Stock Class A [Member] | |||
Earnings Per Share [Abstract] | |||
Basic and diluted earnings (losses) per share (in dollars per share) | $ (0.77) | $ 0.04 | $ (0.06) |
Common Stock Class B [Member] | |||
Earnings Per Share [Abstract] | |||
Basic and diluted earnings (losses) per share (in dollars per share) | $ (0.38) | $ 0.02 | $ (0.03) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Accumulated deficit [Member] | Accumulated other comprehensive income (loss) [Member] | Treasury stock [Member] | Common Class A [Member] | Common Class A [Member]Common Stock [Member] | Common Class B [Member] | Common Class B [Member]Common Stock [Member] |
Balance at Dec. 31, 2014 | $ 262,332 | $ (15,074) | $ 25,850 | $ (11,011) | $ 259,383 | $ 3,184 | ||
Net income (loss) | (3,143) | (3,143) | ||||||
Unrealized investment gains (losses), net | (12,263) | (12,263) | ||||||
Total comprehensive income (loss) | (15,406) | |||||||
Balance at Dec. 31, 2015 | 246,926 | (18,217) | 13,587 | $ (11,011) | 259,383 | 3,184 | ||
Balance, shares at Dec. 31, 2015 | (3,136) | 52,216 | 1,002 | |||||
Net income (loss) | 1,969 | 1,969 | ||||||
Unrealized investment gains (losses), net | 205 | 205 | ||||||
Total comprehensive income (loss) | 2,174 | 1,969 | 205 | |||||
Balance at Dec. 31, 2016 | 249,100 | (16,248) | 13,792 | $ (11,011) | 259,383 | 3,184 | ||
Balance, shares at Dec. 31, 2016 | (3,136) | 52,216 | 1,002 | |||||
Net income (loss) | (38,127) | (38,127) | ||||||
Unrealized investment gains (losses), net | 12,540 | 12,540 | ||||||
Total comprehensive income (loss) | (25,587) | (38,127) | 12,540 | |||||
Balance at Dec. 31, 2017 | $ 223,513 | $ (54,375) | $ 26,332 | $ (11,011) | $ 259,383 | $ 3,184 | ||
Balance, shares at Dec. 31, 2017 | (3,136) | 52,216 | 1,002 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (38,127) | $ 1,969 | $ (3,143) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Realized gains on sale of investments and other assets | (518) | 1,985 | 5,459 |
Net deferred policy acquisition costs | 570 | (4,217) | (7,704) |
Amortization of cost of customer relationships acquired | 2,129 | 2,063 | 2,317 |
Depreciation | 1,065 | 806 | 779 |
Amortization of premiums and discounts on investments | 16,606 | 14,676 | 12,021 |
Deferred federal income tax expense (benefit) | 20,687 | (9,834) | 3,515 |
Write-off of goodwill | 4,631 | 0 | 0 |
Change in: | |||
Accrued investment income | (1,159) | (2,497) | (1,949) |
Reinsurance recoverable | 147 | 304 | 259 |
Due premiums | 87 | (1,033) | (1,042) |
Future policy benefit reserves | 75,920 | 74,583 | 76,901 |
Other policyholders' liabilities | 5,860 | 7,521 | 6,059 |
Federal income tax receivable | 11,808 | 9,287 | (6,837) |
Commissions payable and other liabilities | (6,753) | 6,434 | 617 |
Other, net | 59 | 224 | (99) |
Net cash provided by operating activities | 93,012 | 102,271 | 87,153 |
Cash flows from investing activities: | |||
Sale of fixed maturities, available-for-sale | 1,077 | 20,638 | 0 |
Maturities and calls of fixed maturities, available-for-sale | 74,902 | 56,032 | 75,231 |
Maturities and calls of fixed maturities, held-to-maturity | 9,095 | 14,405 | 20,395 |
Purchase of fixed maturities, available-for-sale | (167,699) | (234,964) | (134,126) |
Purchase of fixed maturities, held-to-maturity | 0 | (5,507) | (55,360) |
Sale of equity securities, available-for-sale | 1,940 | 5,100 | 43,163 |
Calls of available for sale equity securities | 450 | 822 | 150 |
Purchase of equity securities, available-for-sale | 0 | 0 | (602) |
Principal payments on mortgage loans | 37 | 362 | 34 |
Increase in policy loans, net | (7,063) | (6,506) | (6,134) |
Sale of other long-term investments | 3,041 | 37 | 60 |
Purchase of other long-term investments and real estate | 0 | (75) | 0 |
Purchase of property and equipment | (1,326) | (2,214) | (590) |
Proceeds from Sale of Property, Plant, and Equipment | 41 | 59 | 0 |
Maturity of short-term investments | 500 | 256 | 0 |
Purchase of short-term investments | 0 | (522) | (255) |
Net cash used in investing activities | (85,005) | (152,077) | (58,034) |
Cash flows from financing activities: | |||
Annuity deposits | 9,346 | 8,673 | 8,103 |
Annuity withdrawals | (6,799) | (6,184) | (5,103) |
Net cash provided by financing activities | 2,547 | 2,489 | 3,000 |
Net increase (decrease) in cash and cash equivalents | 10,554 | (47,317) | 32,119 |
Cash and cash equivalents at beginning of year | 35,510 | 82,827 | 50,708 |
Cash and cash equivalents at end of year | 46,064 | 35,510 | 82,827 |
Cash paid during the year for income taxes | $ 2,675 | $ 4,061 | $ 4,522 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows Supplemental Noncash Investing Activities - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | |||
Noncash or Part Noncash Acquisition, Investments Acquired | $ 4.8 | $ 1.1 | $ 0.1 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Basis of Presentation and Consolidation The accompanying consolidated financial statements of Citizens, Inc. and its wholly-owned subsidiaries have been prepared in conformity with U.S. generally accepted accounting principles ("U.S. GAAP"). The consolidated financial statements include the accounts and operations of Citizens, Inc. ("Citizens"), a Colorado corporation, and its wholly-owned subsidiaries, CICA Life Insurance Company of America ("CICA"), Citizens National Life Insurance Company ("CNLIC"), Security Plan Life Insurance Company ("SPLIC"), Security Plan Fire Insurance Company ("SPFIC"), Magnolia Guaranty Life Insurance Company ("MGLIC"), CICA Life Ltd. Bermuda, Computing Technology, Inc. ("CTI"), and Insurance Investors, Inc. ("III"). All significant inter-company accounts and transactions have been eliminated. Citizens and its wholly-owned subsidiaries are collectively referred to as "the Company", "we," or "our." We provide primarily life insurance and endowments, as well as a small amount of health insurance policies, through four of our subsidiaries - CICA, SPLIC, MGLIC and CNLIC. CICA and CNLIC issue ordinary whole-life policies, burial insurance, pre-need policies, and accident and health related policies throughout the Midwest and southern United States. CICA also issues ordinary whole-life and endowment policies to non-U.S. residents. SPLIC and MGLIC offer final expense and industrial life insurance in Louisiana, Arkansas and Mississippi, and SPFIC, a wholly-owned subsidiary of SPLIC, writes a limited amount of property insurance in Louisiana. CICA Life Ltd. is a newly established Bermuda entity with no operations to date. CTI provides data processing systems and services, as well as furniture and equipment, to the Company. III provides aviation transportation to the Company. Significant Accounting Policies Investments Investment securities are classified as held-to-maturity, available-for-sale or trading. Management determines the appropriate classification at the time of purchase. The classification of securities is significant since it directly impacts the accounting for unrealized gains and losses on securities. Fixed maturity securities are classified as held-to-maturity and carried at amortized cost when management has the positive intent and the Company has the ability to hold the securities to maturity. Securities not classified as held-to-maturity are classified as available-for-sale and are carried at fair value, with the unrealized holding gains and losses, net of tax, reported in other comprehensive income and do not affect earnings until realized. Fixed maturities consist primarily of bonds classified as available-for-sale or held-to-maturity. The Company does not classify any fixed maturities as trading. Equity securities (including non-redeemable preferred stock) are considered available-for-sale and are reported at fair value. Unrealized gains (losses) of equity securities and fixed maturities held as available-for-sale is shown as a separate component of stockholders' equity, net of tax, and is a separate component of comprehensive income. The Company evaluates all securities on a quarterly basis, and more frequently when economic conditions warrant additional evaluations, for determining if an other-than-temporary impairment ("OTTI") exists pursuant to the accounting guidelines. In evaluating the possible impairment of securities, consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial conditions and near-term prospects of the issuer, and the ability and intent of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. In analyzing an issuer’s financial condition, the Company may consider whether the securities are issued by the Federal government or its agencies, by government-sponsored agencies, or whether downgrades by bond rating agencies have occurred, and reviews of the issuer’s financial condition. If management determines that an investment experienced an OTTI, management must then determine the amount of OTTI to be recognized in earnings. If management does not intend to sell the security and it is more likely than not that the Company will not be required to sell the security before recovery of its amortized cost basis less any current period loss, the OTTI will be separated into the amount representing the credit loss and the amount related to all other factors. The amount of OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of OTTI related to other factors will be recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings will become the new amortized cost basis of the investment. If management intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the OTTI will be recognized in earnings equal to the entire difference between the investment's amortized cost basis and its fair value at the balance sheet date. Any recoveries related to the value of these securities are recorded as an unrealized gain (as other comprehensive income (loss) in stockholders' equity) and not recognized in income until the security is ultimately sold. The Company from time to time may dispose of an impaired security in response to asset/liability management decisions, future market movements, business plan changes, or if the net proceeds can be reinvested at a rate of return that is expected to recover the loss within a reasonable period of time. Mortgage loans on real estate and policy loans are reported at unpaid principal balances. Real estate and other long-term investments consist primarily of land and buildings that are recorded at depreciated cost. If the fair value of the real estate is less than the carrying value, an impairment loss is recognized and charged to earnings. Real estate held for sale represented a building we owned in Arkansas, which was sold in 2017. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to yield using the effective interest method. Dividend and interest income is recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities sold. The Company had cash equivalents, fixed maturities and equity securities with an aggregate fair value of $9.8 million and $10.0 million at December 31, 2017 and 2016 , respectively, on deposit with various state regulatory authorities to fulfill statutory requirements. Premium Revenue and Related Expenses Premiums on life policies are recognized as earned when due. Due premiums on the statements of financial position are net of allowances. Premiums paid in advance on the statements of financial position are held on deposit and accrue interest at rates ranging from 2.5% to 6.0% until such time the premiums become due. Accident and health policies are recognized as revenue over the contract period on a pro rata basis. Benefits and expenses are associated with earned premiums so as to result in the recognition of profits over the estimated lives of the contracts. This matching is accomplished by means of a provision for future policy benefits and the capitalization and amortization of deferred policy acquisition costs. Annuity policies, primarily flexible premium fixed annuity products, are accounted for in a manner consistent with accounting for interest bearing financial instruments. Premium receipts are not reported as revenue, rather as deposit liabilities to annuity contracts. The annuity products issued do not include fees or other such charges. Deferred Policy Acquisition Costs Acquisition costs, consisting of commissions and policy issuance, underwriting and agent convention expenses that are directly related to and vary with the successful production of new and renewal business, have been deferred. These deferred amounts, referred to as deferred policy acquisition costs ("DAC"), are recorded as an asset on the consolidated balance sheet and amortized to income in a systematic manner, based on related contract revenues or gross profits as appropriate. Traditional life insurance and accident and health insurance acquisition costs are being amortized over the premium-paying period of the related policies using assumptions consistent with those used in computing future policy benefit liabilities. For universal life type contracts and investment contracts that include significant surrender charges or that yield significant revenues from sources other than the investment contract holders' funds, the deferred contract acquisition cost amortization is matched to the recognition of gross profit. The effect on the DAC asset that would result from realization of unrealized gains or losses is recognized with an offset to accumulated other comprehensive income in consolidated stockholders' equity. If an internal replacement of insurance or investment contract modification substantially changes a contract as defined in current accounting guidance, then the DAC is written off immediately through income and any new deferrable costs associated with the new replacement are deferred. If a contract modification does not substantially change the contract, the DAC amortization on the original contract will continue and any acquisition costs associated with the related modification are immediately expensed. We utilize the factor method to determine the amount of costs to be capitalized and the ending asset balance. The factor method is based on the ratio of premium revenue recognized for the policies in force at the end of each reporting period compared to the premium revenue recognized for policies in force at the beginning of the reporting period. The factor method ensures that policies lapsed or surrendered during the reporting period are no longer included in the deferred policy acquisition costs calculation. The factor method limits the amount of deferred costs to its estimated realizable value, provided actual experience is comparable to that contemplated in the factors. Inherent in the capitalization and amortization of deferred policy acquisition costs are certain management judgments about what acquisition costs are deferred, the ending asset balance and the annual amortization. Approximately 95% of our capitalized deferred acquisition costs are attributed to first year and renewal excess commissions. The remaining 5% are attributed to costs that vary with and are directly related to the successful acquisition of new insurance business. Those costs generally include costs related to the production, underwriting and issuance of new business. DAC is subject to recoverability testing at the time of policy issuance and loss recognition testing on an annual basis, or when an event occurs that might require loss recognition testing. If loss recognition or impairment is necessary, DAC would be written off to the extent that anticipated future premiums and investment income is insufficient to cover expected future policy benefits and expenses. Loss recognition testing that considers, among other things, actual experience and projected future experience calculates the available premium (gross premium less the benefit and expense portion of premium) for the next 50 years. The available premium per policy and the deferred policy acquisition costs per policy are then calculated. The deferred policy acquisition costs are then evaluated for recoverability using best estimate assumptions. Management believes that our deferred policy acquisition costs and related amortization for the years ended December 31, 2017 , 2016 and 2015 limits the amount of deferred costs to its estimated realizable value. This belief is based upon the analysis performed on capitalized expenses that vary with and are directly related to the acquisition of new and renewal insurance business, utilization of the factor method and recoverability testing at the time of policy issuance and the annual loss recognition testing. The components of deferred acquisition costs from year to year are summarized as follows: For the Years Ended December 31, 2017 2016 2015 (In thousands) Balance at beginning of period $ 167,790 163,692 155,859 Capitalized 29,120 32,732 31,104 Amortized (29,690 ) (28,515 ) (23,400 ) Effects of unrealized (gains) losses (157 ) (119 ) 129 Balance at end of period $ 167,063 167,790 163,692 Cost of Customer Relationships Acquired Cost of customer relationships acquired ("CCRA") is established when we purchase a block of insurance. CCRA is amortized primarily over the emerging profit of the related policies using the same assumptions as were used in computing liabilities for future policy benefits. Inherent in the amortization of CCRA are certain management judgments about the ending asset balance and the annual amortization. The assumptions used are based upon interest, mortality and lapses at the time of purchase. A recoverability test that considers, among other things, actual experience and projected future experience is performed at least annually. These annual recoverability tests initially calculate the available premium (gross premium less the benefit and expense portion of premium) for the next 50 years. The CCRA is then evaluated utilizing reasonable assumptions. Management believes that our CCRA and related amortization is recoverable for the years ended December 31, 2017 , 2016 and 2015 . This belief is based upon the analysis performed on estimated future results of the block and our annual recoverability testing. Cost of customer relationships acquired relative to purchased blocks of insurance is summarized as follows: For the Years Ended December 31, 2017 2016 2015 (In thousands) Balance at beginning of period $ 19,415 21,585 23,542 Acquisitions — — — Amortization (2,129 ) (2,063 ) (2,317 ) Change in effects of unrealized (gains) losses on CCRA 213 (107 ) 360 Balance at end of period $ 17,499 19,415 21,585 Estimated amortization of cost of customer relationship acquired in each of the next five years and thereafter is as follows. Actual future amortization will differ from these estimates due to variances from estimated future withdrawal assumptions. Amount (In thousands) Year: 2018 $ 1,619 2019 1,424 2020 1,289 2021 1,168 2022 1,060 Thereafter 11,285 17,845 Effects of unrealized (gains) losses on CCRA (346 ) Total $ 17,499 The value of CCRA in our various acquisitions, which is included in cost of customer relationships acquired in the accompanying consolidated financial statements, was determined based on the present value of future profits discounted at annual rates ranging from 3.7% to 8.5% . Future Policy Benefits and Expenses Future policy benefit reserves for traditional life insurance and accident and health insurance contract benefits and expenses are computed using a net level premium method, with assumptions as to investment yields, dividends on participating business, mortality and withdrawals based upon our experience, modified as necessary to reflect anticipated trends and to include provisions for possible unfavorable deviations. The accrued account balance for non-traditional life insurance and investment contracts is computed as deposits net of withdrawals made by the contract holder, plus amounts credited based on contract specifications, less contract fees and charges assessed, plus any additional interest. Annuity interest crediting rates range from 2.5% to 5.5% annually. Benefits and expenses are charged against the account balance to recognize costs as incurred over the estimated lives of the contracts. Expenses include interest credited to contract account balances and benefits paid in excess of contract account balances. Unpaid claims on accident and health and specialty property insurance policies represent the estimated liability for benefit expenses, both reported but not paid and incurred but not reported to the Company. The liability for incurred but not reported claims includes estimates for additional claim amounts due related to reported claims. Liabilities for unpaid claims are estimated using individual case basis valuations and statistical analysis. Those estimates are subject to the effects of trends in claim severity and frequency. Anticipated investment income is not considered in determining whether a premium deficiency exists with respect to short-duration contracts. Premium deposits accrue interest at rates ranging from 2.5% to 6.0% per annum. The cost of insurance is included in the premium when collected and interest is credited annually to deposit accounts. The development of liabilities for future policy benefits requires management to make estimates and assumptions regarding mortality, morbidity, lapse, expense, and investment experience. These estimates are based primarily on historical experience and future expectations of mortality, morbidity, expense, persistency, and investment assumptions. Actual results could differ materially from estimates. We monitor actual experience and revise assumptions as necessary. Goodwill and Other Intangible Assets Goodwill is the difference between the purchase price in a business combination and the fair value of assets and liabilities acquired, and is not amortized. Other intangible assets include various state insurance licenses, which have been determined to have indefinite useful lives and, therefore, are not amortized. Both goodwill and other intangible assets with indefinite useful lives are subject to annual impairment analysis. The goodwill impairment test uses a two-step process as set forth under current accounting guidance. In the first step, the fair value of a reporting unit is compared to its carrying value. If the carrying value of a reporting unit exceeds its fair value, the second step of the impairment test is performed for purposes of measuring the impairment. In the second step, the fair value of projected new business is compared to the carrying value of goodwill. A requirement of this method is that the inforce must pass loss recognition testing. If the carrying amount of the reporting unit goodwill exceeds the fair value of projected new business, an impairment loss is recognized in an amount equal to that excess. In January 2017, the FASB issued Accounting Standards Update ("ASU") No. 2017-04, Simplifying the Test for Goodwill Impairmen t. An entity will no longer perform a hypothetical purchase price allocation to measure impairment, eliminating step 2 of the goodwill impairment test. Instead, impairment will be measured using the difference of the carrying amount to the fair value of the reporting unit. The ASU is effective prospectively for annual and interim periods in fiscal year beginning after December 15, 2019, but early adoption is permitted for goodwill impairment tests with measurement dates after January 1, 2017. The Company elected to early adopt this ASU for our 2017 annual evaluation. Management’s determination of the fair value of each reporting unit incorporates multiple inputs including discounted cash flow calculations based on assumptions that market participants would make in valuing the reporting unit. Other assumptions can include levels of economic capital, future business growth, and earnings projections. As of December 31, 2017 , the Company had goodwill of $12.6 million allocated to the Life Insurance segment. The Company completes its annual goodwill assessment for the individual reporting units within the Life Insurance segment and Home Service Insurance segment as of December 31 each year. We recorded an impairment of $4.6 million in 2017 in our Home Service segment. This impairment is recorded in other general expenses on the Consolidated Statement of Operations. We adjusted our discount rate used in our fair value calculation from 10% in 2016 to 12% in 2017 based upon current market inputs as well as decreasing our estimate related to long term investment earned rates from 5.85% in 2016 to 4.95% in 2017 due to the current interest environment. These revisions resulted in decreasing the fair value of this segment. We also estimated lower new business projections in our 2017 valuation based upon the lack of market share growth in this segment. There was no impairment of goodwill in 2016 or 2015 related to the Life or Home Service segment. Goodwill is summarized as follows: For the Years Ended December 31, 2017 2016 2015 (In thousands) Balance at January 1, $ 17,255 17,255 17,255 Acquisition — — — Adjustments — — — Impairment (4,631 ) — — Balance at December 31, $ 12,624 17,255 17,255 Participating Policies At December 31, 2017 and 2016 , participating business approximated 62.5% and 62.2% of direct life insurance in force, respectively. Future policy benefits on participating policies are estimated based on net level premium reserves for death and endowment policy benefits with interest rates ranging from 3.2% to 9.0% , and the cash surrender values described in such contracts. The scaling rate used for the 2017 portfolio ranged between 3.19% for 1 year and then going up to 4.45% over 20 years and remaining there for the duration. Earnings and dividends on participating policies are allocated based on policies in force. Policyholder dividends are determined based on the discretion of the Board of Directors of the policy issuing subsidiary. Policyholder dividends are accrued over the premium paying periods of the insurance contract. Earnings Per Share Basic earnings per share are computed by dividing income available to common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share are computed under the if-converted method for convertible securities and the treasury stock method for warrants, giving effect to all potential dilutive common stock, including options, warrants and convertible/redeemable preferred stock. The basic and diluted earnings per share of Class B common stock are one half the earnings per share of the Class A common stock. The following table sets forth the computation of basic and diluted earnings per share. Years Ended December 31, 2017 2016 2015 (In thousands, except per share amounts) Basic and diluted earnings per share: Numerator: Net income (loss) $ (38,127 ) 1,969 (3,143 ) Net income (loss) allocated to Class A common stock $ (37,742 ) 1,949 (3,112 ) Net income (loss) allocated to Class B common stock (385 ) 20 (31 ) Net income (loss) $ (38,127 ) 1,969 (3,143 ) Denominator: Weighted average shares of Class A outstanding - basic and diluted 49,080 49,080 49,080 Weighted average shares of Class B outstanding - basic and diluted 1,002 1,002 1,002 Total weighted average shares outstanding - basic and diluted 50,082 50,082 50,082 Basic and diluted earnings (losses) per share of Class A common stock $ (0.77 ) 0.04 (0.06 ) Basic and diluted earnings (losses) per share of Class B common stock (0.38 ) 0.02 (0.03 ) Income Taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered. A deferred tax asset is recorded only if a determination is made that it is more-likely-than-not that the tax treatment on which the deferred tax asset depends will be sustained in the event of an audit. These determinations inherently involve management's judgment. In addition, the Company must record a tax valuation allowance with respect to deferred tax assets if it is more-likely-than-not that the tax benefit will not be realized. This valuation allowance is in essence a contra account to the deferred tax asset. Management must determine the portion of the deferred tax asset and resulting tax benefit that may not be realized based upon judgment of expected outcomes. Property and Equipment Property and equipment are carried at cost less accumulated depreciation. Depreciation of property and equipment is computed using the straight-line method over the useful lives of the assets, ranging from three to thirty years. The following is a summary of property and equipment. December 31, 2017 2016 (In thousands) Property and equipment: Home office, land and buildings $ 4,139 10,051 Furniture and equipment 3,189 2,994 Electronic data processing equipment and computer software 8,042 6,914 Automobiles 91 175 Airplane — 3,356 Total property and equipment 15,461 23,490 Accumulated depreciation (8,837 ) (15,600 ) Balance at end of period $ 6,624 7,890 During August 2017, the Company relocated its home office to a different location and entered into a lease with an unrelated party. The Company's previous home office was in a building owned by a Company affiliate. During the fourth quarter of 2017, the building was reclassified in the amount of $1.6 million from property and equipment to real estate held for investment on the Consolidated Statement of Financial Position, and the Company is currently searching for tenants to lease the office space. Lease payments at the new home office are $114,000 per month during the twelve months beginning August 1, 2017 and increase to $118,000 per month for the second year beginning August 1, 2018. After that, the Company will renegotiate with the landlord for a long term lease. The Company sold its airplane in 2017 for a gain of $99,000 , which is included in other income on the Consolidated Statement of Operations. Reinsurance Recoverable Reinsurance recoverable includes expected reimbursements for policyholder claim amounts in excess of the Company's retention, as well as profit sharing and experience refund accruals. Reinsurance recoverable is reduced for estimated uncollectible amounts, if any. Reinsurance premiums, benefits and expenses are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. The cost of reinsurance related to long duration contracts is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies. The cost of reinsurance related to short duration contracts is accounted for over the coverage period. Profit-sharing and similar adjustable provisions are accrued based on the experience of the underlying policies. Contingencies An estimated loss from a contingency is accrued and charged to results of operations only if both of the following conditions are met: 1. Information available prior to the issuance of the financial statements indicates that it is probable (virtual certainty is not required) that an asset has been impaired or a liability incurred as of the date of the financial statements; and 2. The amount of the loss can be reasonably estimated. Reasonable estimation of a possible loss does not require estimating a single amount of the loss. It requires that a loss be accrued if it can be estimated within a range. If an amount within the range is a better estimate than any other amount within the range, that amount is accrued. If no amount within the range is a better estimate than any other amount, the minimum amount in the range is accrued. A gain contingency is an uncertain situation that will be resolved in the future, possibly resulting in a gain. We do not allow the recognition of a gain contingency prior to settlement of the underlying event. If we were to have a material gain contingency, we would disclose it in the notes to the consolidated financial statements. Cash Equivalents The Company considers cash equivalents as all securities whose duration does not exceed 90 days at the date of acquisition. Short-term Investments The Company considers investments maturing within one year at acquisition as short-term. These securities are carried at amortized cost, which approximates market value. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from these estimates. Reclassifications Certain amounts presented in prior years have been reclassified to conform to the current presentation. No individual amounts were material. Accounting Pronouncements Accounting Standards Recently Adopted On May 21, 2015, the FASB issued ASU 2015-09, Disclosures about Short-Duration Contracts , addressing enhanced disclosure requirements for insurers relating to short-duration insurance contract claims and the unpaid claims liability rollforward for long and short-duration contracts. The disclosures are intended to provide users of financial statements with more transparent information about an insurance entity’s initial claim estimates and subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. The new disclosures required the accumulation and reporting of new and different groupings of claims data than previously reported. For public business entities, the new guidance is effective for annual reporting periods beginning after December 15, 2015. In January 2017, the FASB issued Accounting Standards Update ("ASU") No. 2017-04, Simplifying the Test for Goodwill Impairmen t. An entity will no longer perform a hypothetical purchase price allocation to measure impairment, eliminating step 2 of the goodwill impairment test. Instead, impairment will be measured using the difference of the carrying amount to the fair value of the reporting unit. The ASU is effective prospectively for annual and interim periods in fiscal year beginning after December 15, 2019, but early adoption is permitted for goodwill impairment tests with measurement dates after January 1, 2017. The Company elected to early adopt this ASU for our 2017 annual evaluation. Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a five-step process to achieve that core principle. ASU 2014-09 requires disclosures enabling users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, using one of two retrospective application methods. We have evaluated the effect the guidance will have on our consolidated financial statements. We do not expect that any portion of our revenue will be affected by the new standard, primarily as the new guidance does not apply to revenue from insurance contracts and our non-insurance subsidiaries do not receive revenues from customers. The FASB’s new lease accounting standard, ASU 2016-02, Leases (Topic 842) , was issued on February 25, 2016. The ASU will require organizations that lease assets, referred to as “lessees”, to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The ASU also will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclo |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Investments The Company invests primarily in fixed maturity securities, which totaled 89.3% of total investments and cash and cash equivalents at December 31, 2017 . Holdings in high quality fixed maturity securities rated A or higher by Standard & Poor's, Inc. totaled 75.2% of investment holdings in this category, reflecting the conservative investment philosophy of the Company. December 31, 2017 December 31, 2016 Carrying Value % of Total Carrying Value Carrying Value % of Total Carrying Value (In thousands, except for %) Fixed maturity securities $ 1,208,570 89.3 $ 1,128,672 89.7 Equity securities 16,164 1.2 18,159 1.6 Mortgage loans 195 — 232 — Policy loans 73,735 5.5 66,672 5.3 Real estate and other long-term investments 7,452 0.6 7,896 0.6 Short-term investments — — 508 — Cash and cash equivalents 46,064 3.4 35,510 2.8 Total cash, cash equivalents and investments $ 1,352,180 100.0 $ 1,257,649 100.0 The cost, gross unrealized gains and losses and fair value of investments in fixed maturities and equity securities, as of December 31, 2017 and 2016 , are as follows. December 31, 2017 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Fixed maturities: Available-for-sale securities: U.S. Treasury securities $ 9,860 1,948 — 11,808 U.S. Government-sponsored enterprises 3,570 926 — 4,496 States and political subdivisions 550,536 18,507 1,540 567,503 Foreign governments 103 18 — 121 Corporate 370,043 20,212 1,552 388,703 Residential mortgage-backed 1,865 118 5 1,978 Total available-for-sale securities 935,977 41,729 3,097 974,609 Held-to-maturity securities: States and political subdivisions 213,054 7,585 629 220,010 Corporate 20,907 1,118 658 21,367 Total held-to-maturity securities 233,961 8,703 1,287 241,377 Total fixed maturity securities $ 1,169,938 50,432 4,384 1,215,986 Equity securities: Stock mutual funds $ 2,867 350 — 3,217 Bond mutual funds 11,880 487 — 12,367 Common stock 22 2 — 24 Redeemable preferred stock 520 42 6 556 Total equity securities $ 15,289 881 6 16,164 December 31, 2016 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Fixed maturities: Available-for-sale securities: U.S. Treasury securities $ 9,929 2,261 — 12,190 U.S. Government-sponsored enterprises 7,639 863 — 8,502 States and political subdivisions 563,279 15,017 5,022 573,274 Foreign governments 103 23 — 126 Corporate 277,226 12,095 4,222 285,099 Commercial mortgage-backed 50 1 — 51 Residential mortgage-backed 2,247 181 2 2,426 Total available-for-sale securities 860,473 30,441 9,246 881,668 Held-to-maturity securities: U.S. Government-sponsored enterprises 2,003 28 — 2,031 States and political subdivisions 223,966 6,916 1,599 229,283 Corporate 21,035 888 692 21,231 Total held-to-maturity securities 247,004 7,832 2,291 252,545 Total fixed maturity securities $ 1,107,477 38,273 11,537 1,134,213 Equity securities: Stock mutual funds $ 2,867 79 — 2,946 Bond mutual funds 14,040 265 108 14,197 Common stock 39 3 17 25 Redeemable preferred stock 819 174 2 991 Total equity securities $ 17,765 521 127 18,159 For fixed maturity and equity security investments that have unrealized losses as of December 31, 2017 , the cost, gross unrealized losses that have been in a continuous unrealized loss position for less than 12 months, gross unrealized losses that have been in a continuous unrealized loss position for 12 months or longer and fair value are as follows. December 31, 2017 Less than 12 months Greater than 12 months Total Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses # of Securities (In thousands, except for # of securities) Fixed maturities: Available-for-sale securities: States and political subdivisions $ 49,408 312 46 47,233 1,228 46 96,641 1,540 92 Corporate 61,071 732 39 7,651 820 10 68,722 1,552 49 Residential mortgage-backed 132 3 4 157 2 4 289 5 8 Total available-for-sale securities 110,611 1,047 89 55,041 2,050 60 165,652 3,097 149 Held-to-maturity securities: States and political subdivisions 14,178 45 15 7,460 584 14 21,638 629 29 Corporate — — — 2,169 658 2 2,169 658 2 Total held-to-maturity securities 14,178 45 15 9,629 1,242 16 23,807 1,287 31 Total fixed maturities $ 124,789 1,092 104 64,670 3,292 76 189,459 4,384 180 Equity securities: Redeemable preferred stock $ 95 6 1 — — — 95 6 1 Total equities $ 95 6 1 — — — 95 6 1 The available-for-sale fixed maturities in a gross unrealized loss position for more than 12 months is primarily related to rises in interest rates which results in lower market prices on fixed maturity securities that have lower coupons than the current market rate. This is interest rate risk and is not a signal of impairment. Management has completed its assessment of other-than-temporary impairment of these securities. Based on our evaluation of the credit worthiness of the issuers and because we do not intend to sell the investments, nor is it likely that we would be required to sell these investments before recovery of their amortized cost bases, which may be maturity, none of the unrealized losses are considered to be other-than-temporary. We monitor all debt and equity securities on an on-going basis relative to changes in credit ratings, market prices, earnings trends and financial performance, in addition to specific region or industry reviews. Our impairment review, in accordance with current guidance, is performed by the Company at each reporting date and management uses its best judgment to decide if impairment is other-than-temporary. We determine other-than-temporary impairment by reviewing relevant evidence related to the specific security issuer, as well as our intent to sell the security or whether we more likely than not will be required to sell the security before its anticipated recovery. All securities with a market price below par were segregated and reviewed as of December 31, 2017 based upon the items above for impairment. For fixed maturity and equity security investments that have unrealized losses as of December 31, 2016 , the cost, gross unrealized losses that have been in a continuous unrealized loss position for less than 12 months, gross unrealized losses that have been in a continuous unrealized loss position for 12 months or longer and fair value are as follows. December 31, 2016 Less than 12 months Greater than 12 months Total Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses # of Securities (In thousands, except for # of securities) Fixed maturities: Available-for-sale securities: States and political subdivisions $ 202,788 3,513 184 8,018 1,509 8 210,806 5,022 192 Corporate 91,527 3,578 70 6,102 644 8 97,629 4,222 78 Residential mortgage-backed 116 1 4 105 1 2 221 2 6 Total available-for-sale securities 294,431 7,092 258 14,225 2,154 18 308,656 9,246 276 Held-to-maturity securities: States and political subdivisions 43,659 1,562 47 509 37 1 44,168 1,599 48 Corporate 3,587 12 3 2,171 680 2 5,758 692 5 Total held-to-maturity securities 47,246 1,574 50 2,680 717 3 49,926 2,291 53 Total fixed maturities $ 341,677 8,666 308 16,905 2,871 21 358,582 11,537 329 Equity securities: Bond mutual funds $ 10,160 108 2 — — — 10,160 108 2 Redeemable preferred stock 201 2 2 — — — 201 2 2 Common stocks — — — — 17 1 — 17 1 Total equities $ 10,361 110 4 — 17 1 10,361 127 5 The amortized cost and fair value of fixed maturities at December 31, 2017 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date have been reflected based upon the final stated maturity. Cost or Amortized Cost Fair Value (In thousands) Available-for-sale securities: Due in one year or less $ 44,805 45,049 Due after one year through five years 101,337 104,873 Due after five years through ten years 123,319 131,125 Due after ten years 666,516 693,562 Total available-for-sale securities 935,977 974,609 Held-to-maturity securities: Due in one year or less 19,025 19,123 Due after one year through five years 46,497 48,014 Due after five years through ten years 46,502 48,436 Due after ten years 121,937 125,804 Total held-to-maturity securities 233,961 241,377 Total fixed maturities $ 1,169,938 1,215,986 The Company had no investments in any one entity which exceeded 10% of stockholders' equity at December 31, 2017 . In addition, there were no investments that were non-income producing for the year ended December 31, 2017 . Major categories of net investment income are summarized as follows: Years ended December 31, 2017 2016 2015 (In thousands) Investment income: Fixed maturities $ 48,164 43,637 39,570 Equity securities 708 851 2,909 Mortgage loans on real estate 11 24 36 Policy loans 5,735 5,277 4,614 Long-term investments 76 305 247 Other 68 89 53 Total investment income 54,762 50,183 47,429 Investment expenses (1,616 ) (1,623 ) (1,647 ) Net investment income $ 53,146 48,560 45,782 Proceeds and gross realized gains and losses from sales of fixed maturities available-for-sale for 2017 , 2016 and 2015 are summarized as follows: Years ended December 31, 2017 2016 2015 (In thousands) Proceeds $ 1,077 20,638 — Gross realized gains $ 19 1,487 — Gross realized losses $ 16 — — In 2017 , SPLIC sold one bond from the available for sale portfolio for cash flow purposes and SPFIC sold three bonds. In 2016, SPLIC sold eleven bonds from their available-for-sale portfolio to generate funds to pay the extraordinary dividend to CICA. These sales produced proceeds of $20.6 million and realized gains of $1.5 million . In 2015, there were no sales of fixed maturities available-for-sale. There were no securities sold from the held-to-maturity portfolio in 2017 , 2016 or 2015 . The Company uses specific identification for securities sold. Proceeds and gross realized gains and losses from sales of equity securities for 2017 , 2016 and 2015 are summarized as follows: Years ended December 31, 2017 2016 2015 (In thousands) Proceeds $ 1,940 5,100 43,163 Gross realized gains $ — 291 634 Gross realized losses $ 30 35 599 In 2017 , the Company sold one bond mutual fund, which had been previously impaired, that resulted in a net loss of $30,000 . All mutual funds are considered common stocks for regulatory accounting purposes and the RBC charge for stocks is extremely high. In 2016 , five equity and bond mutual funds were sold that resulted in a net gain of $256,000 due to regulatory accounting considerations. During 2015 , six equity and bond mutual funds were sold resulting in a net gain of $35,000 due to circumstances that arose based on the current environment and due to the fact that they were shorter duration funds. Realized investment gains (losses) are as follows: Years ended December 31, 2017 2016 2015 (In thousands) Realized investment gains (losses): Sales, calls and maturities: Fixed maturities $ (506 ) 2,024 (111 ) Equity securities 121 303 37 Real estate 1,110 — — Net realized gains (losses) 725 2,327 (74 ) Other-than-temporary impairments ("OTTI") Fixed maturities — (3,970 ) (2,998 ) Equity securities (207 ) (342 ) (2,387 ) Realized loss on OTTI (207 ) (4,312 ) (5,385 ) Net realized investment gains (losses) $ 518 (1,985 ) (5,459 ) During 2017, the Company sold its Markham building in Little Rock, Arkansas for a gross sales price of $3.25 million , resulting in a gain on sale of $1.1 million . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We hold fixed maturity and equity securities that are carried at fair value. Fair value measurements are generally based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our view of market assumptions in the absence of observable market information. We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. All assets and liabilities carried at fair value are required to be classified and disclosed in one of the following three categories: • Level 1 - Quoted prices for identical instruments in active markets. • Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose inputs or whose significant value drivers are observable. • Level 3 - Instruments whose significant value drivers are unobservable. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as U.S. Treasury securities, publicly traded mutual fund investments and individual stocks. Level 2 includes those financial instruments that are valued by independent pricing services or broker quotes. These models are primarily industry-standard models that consider various inputs, such as interest rates, credit spreads and foreign exchange rates for the underlying financial instruments. All significant inputs are observable, or derived from observable information in the marketplace or are supported by observable levels at which transactions are executed in the marketplace. Financial instruments in this category primarily include corporate fixed maturity securities, U.S. Government-sponsored enterprise securities, municipal securities and certain mortgage and asset-backed securities. Level 3 is comprised of financial instruments whose fair value is estimated based on non-binding broker prices utilizing significant inputs not based on, or corroborated by, readily available market information. We have no level 3 assets as of December 31, 2017 . The following table sets forth our assets and liabilities that are measured at fair value on a recurring basis as of the date indicated. December 31, 2017 Available-for-sale investments Level 1 Level 2 Level 3 Total Fair Value (In thousands) Financial assets: Fixed maturities: U.S. Treasury and U.S. Government-sponsored enterprises $ 11,808 4,496 — 16,304 States and political subdivisions — 567,503 — 567,503 Corporate — 388,703 — 388,703 Residential mortgage-backed — 1,978 — 1,978 Foreign governments — 121 — 121 Total fixed maturities 11,808 962,801 — 974,609 Equity securities: Stock mutual funds 3,217 — — 3,217 Bond mutual funds 12,367 — — 12,367 Common stock 24 — — 24 Redeemable preferred stock 556 — — 556 Total equity securities 16,164 — — 16,164 Total financial assets $ 27,972 962,801 — 990,773 December 31, 2016 Available-for-sale investments Level 1 Level 2 Level 3 Total Fair Value (In thousands) Financial assets: Fixed maturities: U.S. Treasury and U.S. Government-sponsored enterprises $ 12,190 8,502 — 20,692 States and political subdivisions — 573,274 — 573,274 Corporate — 285,099 — 285,099 Commercial mortgage-backed — — 51 51 Residential mortgage-backed — 2,426 — 2,426 Foreign governments — 126 — 126 Total fixed maturities 12,190 869,427 51 881,668 Equity securities: Stock mutual funds 2,946 — — 2,946 Bond mutual funds 14,197 — — 14,197 Common stock 25 — — 25 Redeemable preferred stock 991 — — 991 Total equity securities 18,159 — — 18,159 Total financial assets $ 30,349 869,427 51 899,827 Financial Instruments Valuation Fixed maturity securities, available-for-sale . At December 31, 2017 , the fixed maturities, valued using a third-party pricing source, totaled $962.8 million for Level 2 assets and comprised 97.2% of total reported fair value. Fair values for Level 3 assets are based upon unadjusted broker quotes that are non-binding. The Level 1 and Level 2 valuations are reviewed and validated quarterly through random testing by comparisons to separate pricing models, other third party pricing services, and back tested to recent trades. In addition, we obtain information relative to the third party pricing models and review model parameters for reasonableness. For the period ended December 31, 2017 , there were no material changes to the valuation methods or assumptions used to determine fair values, and no broker or third party prices were changed from the values received. There were no transfers made between Levels 1 and 2 securities at December 31, 2017 or 2016 . Equity securities, available-for-sale . Fair values of these securities are based upon quoted market price and are classified as Level 1 assets. The following table presents additional information about fixed maturity securities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value: December 31, 2017 2016 (In thousands) Beginning Balance at January 1, $ 51 145 Total realized and unrealized gains (losses) Included in net income — — Included in other comprehensive income — (4 ) Principal paydowns (51 ) (90 ) Transfer in and (out) of Level 3 — — Ending Balance at December 31, $ — 51 We review the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets. Such reclassifications, if any, are reported as transfers in and out of Level 3 at the beginning fair value for the reporting period in which the changes occur. Financial Instruments not Carried at Fair Value Estimates of fair values are made at a specific point in time, based on relevant market prices and information about the financial instrument. The estimated fair values of financial instruments presented below are not necessarily indicative of the amounts the Company might realize in actual market transactions. The carrying amount and fair value for the financial assets and liabilities on the consolidated balance sheets at each year-end were as follows: December 31, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Financial assets: Fixed maturities, held-to-maturity $ 233,961 241,377 247,004 252,545 Mortgage loans 195 228 232 269 Policy loans 73,735 73,735 66,672 66,672 Short-term investments — — 508 508 Cash and cash equivalents 46,064 46,064 35,510 35,510 Financial liabilities: Annuities - investment contracts $ 55,035 57,575 50,952 52,173 Fair values for fixed income securities, which are characterized as Level 2 assets in the fair value hierarchy, are based on quoted market prices for the same or similar securities. In cases where quoted market prices are not available, fair values are based on estimates using present value or other assumptions, including the discount rate and estimates of future cash flows. Mortgage loans are secured principally by residential properties and commercial properties. Weighted average interest rates for these loans were approximately 6.6% and 6.8% per year, as of December 31, 2017 and 2016 , respectively, with maturities ranging from 21 to 25 years. Management estimated the fair value using an annual interest rate of 6.25% at December 31, 2017 and 2016 . Our mortgage loans are considered Level 3 assets in the fair value hierarchy. Policy loans have a weighted average annual interest rate of 7.7% as of December 31, 2017 and 2016 , respectively, and have no specified maturity dates. The aggregate fair value of policy loans approximates the carrying value reflected on the consolidated balance sheet. These loans typically carry an interest rate that is tied to the crediting rate applied to the related policy and contract reserves. Policy loans are an integral part of the life insurance policies that we have in force and cannot be valued separately and are not marketable. Therefore, the fair value approximates the carrying value and policy loans are considered Level 3 assets in the fair value hierarchy. The fair value of short-term investments approximate carrying value due to their short-term nature. Our short-term investments are considered Level 2 assets in the fair value hierarchy. The fair value of cash and cash equivalents approximate carrying value and are characterized as Level 1 assets in the fair value hierarchy. The fair value of the Company's liabilities under annuity contract policies, which are considered Level 3 instruments, was estimated at December 31, 2017 using discounted cash flows based upon a swap rate curve with interest rates ranging from 1.84% to 3.34% based upon swap rates adjusted for various risk adjustments. The fair value of liabilities under all insurance contracts are taken into consideration in the overall management of interest rate risk, which seeks to minimize exposure to changing interest rates through the matching of investment maturities with amounts due under insurance contracts. |
Policy Liabilities and Short Du
Policy Liabilities and Short Duration Contracts | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block] | Policy Liabilities and Short Duration Contracts Various assumptions used to determine the future policy benefit reserves of life insurance include the following: a) valuation interest rates; b) mortality assumptions; and c) withdrawals. The following table presents information on changes in the liability for life, accident and health and property policy and contract claims for the years ended December 31, 2017 , 2016 and 2015 . Years ended December 31, 2017 2016 2015 (In thousands) Policy claims payable at January 1 $ 9,538 9,653 9,560 Less: reinsurance recoverable 407 543 950 Net balance at January 1 9,131 9,110 8,610 Add claims incurred, related to: Current year 25,036 26,000 26,911 Prior years (209 ) (493 ) (197 ) 24,827 25,507 26,714 Deduct claims paid, related to: Current year 18,037 18,681 19,584 Prior years 7,678 6,805 6,630 25,715 25,486 26,214 Net balance December 31 8,243 9,131 9,110 Plus: reinsurance recoverable 367 407 543 Policy claims payable, December 31 $ 8,610 9,538 9,653 The Company experienced favorable development in 2017 of $209,000 and favorable development in 2016 of $493,000 . No unusual claims or trends have been noted. Short Duration Contracts The Company's short duration contracts consist of credit life and credit disability in the Life segment and property insurance in the Home Service segment. The credit insurance lines are an immaterial part of short duration contracts so the following disclosures cover only the property insurance line of business in the Home Service segment. Special Property Insurance (Allied and Fire) The following table presents incurred claims development as of December 31, 2017 , net of reinsurance, as well as cumulative claim frequency and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the net incurred claims amounts. This information is presented for the last five years as these claims rarely pay out over a longer period of time. Claims data for 2013 through 2015 is supplementary information to the consolidated financial statements and is unaudited. As of December 31, 2017 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Total of Incurred-but-Not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Years ended December 31, Accident Year 2013 2014 2015 2016 2017 ($ In thousands) (Unaudited) 2013 $ 2,058 1,977 1,970 1,964 1,964 — 328 2014 1,744 1,650 1,575 1,570 — 254 2015 1,777 1,731 1,692 4 358 2016 2,071 2,096 6 531 2017 1,761 210 555 Total $ 9,083 The following table presents paid claims development as of December 31, 2017 , net of reinsurance. Claims data for 2013 through 2015 are unaudited. Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Years ended December 31, Accident Year 2013 2014 2015 2016 2017 (In thousands) (Unaudited) 2013 $ 1,751 1,964 1,964 1,964 1,964 2014 1,361 1,556 1,560 1,560 2015 1,410 1,637 1,638 2016 1,680 2,061 2017 1,359 Total $ 8,582 All outstanding liabilities before 2013, net of reinsurance $ — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 501 The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position is as follows. Year Ended December 31, 2017 2016 (In thousands) Net outstanding liabilities Special property $ 501 500 Other short-duration insurance lines 72 43 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance 573 543 Reinsurance recoverable on unpaid claims Special property — — Other insurance lines 261 340 Total reinsurance recoverable on unpaid claims 261 340 Insurance lines other than short duration 7,776 8,655 Total gross liability for unpaid claims and claim adjustment expenses $ 8,610 9,538 The following is supplementary information to the consolidated financial statements about average historical claims duration as of December 31, 2017 . Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Years 1 2 3 4 5 Special Property 83.30 % 13.68 % 0.10 % — % — % |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance [Text Block] | Reinsurance In the normal course of business, the Company reinsures portions of certain policies that we underwrite to limit disproportionate risks. During 2017 and 2016 , we retained varying amounts of individual insurance up to a maximum retention of $100,000 on any life. The Company also reinsures 100% of our accidental death benefit rider coverage. Catastrophe reinsurance is in place for our property policies. In 2017 and 2016 , this reinsurance provided $10,000,000 of coverage above a $500,000 deductible. Our health insurance policies are substantially all reinsured on a 100% coinsurance basis. We remain contingently liable to the extent that the reinsuring companies cannot meet their obligations under these reinsurance treaties. Our amounts recoverable from reinsurers represent receivables from and reserves ceded to reinsurers. We obtain reinsurance from multiple reinsurers, and we monitor concentration as well as financial strength ratings of our principal reinsurers. The ratings by A.M. Best Company range from A+ (Superior) to B+ (Good). To protect our position, we have established and funded a trust to cover the contingent liabilities related to accident and health reinsurance ceded to Unified Life Insurance Company, which represents $27,000 of the $3.7 million of reinsurance recoverable at December 31, 2017 . Assumed and ceded life reinsurance activity as of December 31, 2017 and 2016 is summarized as follows: At December 31, 2017 2016 (In thousands) Aggregate assumed life insurance in force $ 5,564 22,915 Aggregate ceded life insurance in force $ (503,685 ) (522,821 ) Net life insurance in force $ 4,469,735 4,497,735 The Company's reinsurance recoveries on ceded reinsurance were $3.7 million in 2017 and $3.9 million in 2016 . Premiums, claims and surrenders assumed and ceded for all lines of business for these years are summarized as follows: Years ended December 31, 2017 2016 2015 (In thousands) Premiums from short-duration contracts: Direct $ 6,933 6,927 7,223 Assumed — — — Ceded (781 ) (828 ) (873 ) Net premiums earned 6,152 6,099 6,350 Premiums from long-duration contracts: Direct 193,778 194,147 190,114 Assumed 142 151 353 Ceded (2,352 ) (2,521 ) (2,337 ) Net premiums earned 191,568 191,777 188,130 Total premiums earned $ 197,720 197,876 194,480 Claims and surrenders assumed $ 247 237 414 Claims and surrenders ceded $ (946 ) (877 ) (1,013 ) SPFIC has catastrophe reinsurance that covers the first event in excess of a $500,000 deductible up to $10.0 million . In consideration for a reinstatement premium, second event coverage is provided in excess of a $500,000 deductible up to $10.0 million . The annual premium was approximately $0.8 million in 2017 and 2016 and $0.9 million in 2015 . |
Stockholders' Equity and Restri
Stockholders' Equity and Restrictions | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity and Restrictions | Stockholders' Equity and Restrictions The two classes of our common stock are equal in all respects, except (a) each Class A share is entitled to receive twice the cash dividends paid on a per share basis to the Class B common stock, if any; and (b) the Class B common stock has the exclusive right to elect a simple majority of the Board of Directors of Citizens and the Class A common stock elects the remaining directors. The table below shows the combined total of all of our insurance subsidiaries' capital and surplus and net income (loss) for life insurance operations and property insurance operations, although these amounts are not all available as dividends to Citizens, Inc., because only CICA is directly owned by Citizens, Inc. All other subsidiaries are owned by CICA. Years ended December 31, 2017 2016 Combined Statutory Stockholders' Equity (In thousands) Life insurance operations $ 28,101 28,009 Property insurance operations 7,029 6,863 Total statutory equity $ 35,130 34,872 Years ended December 31, 2017 2016 2015 Combined Statutory Net Income (Loss) (In thousands) Life insurance operations $ 4,179 11,987 (7,972 ) Property insurance operations 152 401 607 Total statutory net income (loss) $ 4,331 12,388 (7,365 ) Generally, the net assets of the insurance subsidiaries available for transfer to their immediate parent are limited to the greater of the subsidiary net gain from operations during the preceding year or 10% of the subsidiary net statutory surplus as of the end of the preceding year as determined in accordance with accounting practices prescribed or permitted by insurance regulatory authorities. Under these practices, total surplus at December 31, 2017 was $32.0 million and net gain from operations was $5.8 million for CICA. Based upon statutory net gain from operations and surplus of CICA as of and for the year ended December 31, 2017 , a dividend of approximately $5.8 million could be paid to the Company without prior regulatory approval in 2018 . Payments of dividends in excess of such amounts would generally require approval by regulatory authorities. CICA, CNLIC, SPLIC, MGLIC and SPFIC have calculated their risk based capital ("RBC") in accordance with the National Association of Insurance Commissioners' Model Rule and the RBC rules as adopted by their respective states of domicile. All insurance subsidiaries exceeded RBC minimum levels at December 31, 2017 . On June 10, 2016, the National Association of Insurance Commissioners (“NAIC”) Executive Committee and Plenary voted to adopt a recommendation for January 1, 2017 as the operative date for the implementation of Principles-Based Reserves (“PBR”) as a national standard for life insurance products. Although this NAIC standard does not change the reserving requirements under U.S. GAAP, it can be significant for many life insurers. PBR replaces the current formulaic approach to determining policy reserves with an approach that more closely reflects the risks of highly complex products. Companies will be expected to develop “right-sized” reserves that better align with their specific product features, their observed actuarial experience, and their overall risk management procedures. There is a three-year transition period where PBR is optional until PBR becomes required on January 1, 2020. The Company is assessing the impact that this standard will have on its statutory reserving and capital and surplus. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Qualification of Life Products As of December 31, 2014, we reported that a portion of the life insurance policies issued by our subsidiary insurance companies failed to qualify for the favorable U.S. federal income tax treatment afforded by Section 7702 of the Internal Revenue Code ("IRC") of 1986. This tax code section allows for qualifying products sold to clients to have favorable tax treatment such as the product's inside build up is not taxable, unless distributions are made. Because these policies were sold with the intention that they would qualify for this favorable tax treatment, holders of these policies and the Company may now be subject to additional tax liabilities. The policies at issue were sold most substantially to non-U.S. citizens residing abroad and to a lesser extent domestically. Based upon a review of the options available to the Company, we have determined we will not remediate our endowments and life products that we have sold to non-U.S. citizens but will propose an offer to the IRS to settle potential liabilities. We do intend to remediate the domestic products we have sold to U.S. citizens. Accordingly, we submitted an offer to enter into a Closing Agreement for CICA and CNLIC in May 2017. We have not received a response from the IRS on this submission. In addition, as part of our continuing review, we determined in July 2015 that certain annuity contracts do not contain qualifying language under IRC 72(s) as intended that would have provided for favorable tax treatment of the annuities. This issue affects both our domestic and international contract holders. We generally endorsed affected domestic annuity contracts to comply with the Code in December 2017 and intend to submit a Closing Agreement offer in 2018 to address past non-compliance. The Company has continued to refine the understanding of the tax failures as previously reported by preparing an individual policy calculation and has reflected the related exposure for the current reporting period as noted below. Failure of these policies to qualify under IRC Sections 7702 and 72(s) has resulted in additional liabilities and expenses as described below. The products have been and continue to be appropriately reported under U.S. GAAP for financial reporting. The failure of these policies to qualify under Sections 7702 and 72(s) results in an estimated liability as of December 31, 2017 of $12.3 million, after tax, related to projected IRS toll charges and fees of $12.0 million and reserves increases to bring policies into compliance totaling $0.3 million. The estimated liability at December 31, 2017 is down $2.1 million from the estimated liability at December 31, 2016 of $14.4 million , after tax, due to a continued refinement of our estimate and additional accrued interest charges. The probability weighted range of financial estimates relative to this issue is $5.9 million to $48.2 million , after tax. This estimated range includes projected toll charges and fees payable to the IRS, as well as estimated increased payout obligations to current holders of non-compliant domestic life insurance policies expected to result from remediation of those policies. The estimated liability and the estimated range will be updated as we continue to refine our estimates. The amount of our liabilities and expenses depends on a number of uncertainties, including the number of prior tax years for which we may be liable to the IRS, the number of domestic life insurance policies we will be required to remediate, and the methodology applicable to the calculation of the toll charge for non-compliant policies. Given the range of potential outcomes and the significant variables assumed in establishing our estimates, actual amounts incurred may exceed our reserve and also could exceed the high end of our estimated range of liabilities and expenses. To the extent the amount reserved by the Company is insufficient to meet the actual amount of our liability and expenses, or if our estimates of those liabilities and expenses change in the future, our financial condition and results of operations may be materially adversely affected. Management believes that based upon current information we have recorded the best estimate liability to date. Accruals for loss contingencies are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. The process of determining our best estimate and the estimated range was a complex undertaking including insight from external consultants and involved management’s judgment based upon a variety of factors known at the time. Additional costs will be incurred in 2018 associated with these issues and we believe these costs will range from $1.0 million to $2.0 million , but due to the uncertainty of actions we cannot reasonably estimate these costs with any reliability. Actual amounts incurred may exceed this estimate and will be recorded as they become probable and can be reasonably estimated. Litigation and Regulatory Actions On or about March 16, 2017, Juan Gamboa filed a putative class action lawsuit against the Company and five of its current and former directors and executive officers in the United States District Court, Western District of Texas. The lawsuit alleges the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making false and/or misleading statements, as well as failing to disclose material adverse facts about the Company’s business, operations and prospects. On May 25, 2017, the court appointed lead plaintiffs, and on July 31, 2017, the lead plaintiffs filed an amended complaint. The amended complaint seeks an award of damages in an unspecified amount on behalf of a putative class consisting of persons who purchased the Company’s common stock between March 11, 2015 and March 8, 2017, inclusive. On September 28, 2017, we filed a motion to dismiss, which remains pending before the court. The Company believes that the lawsuit is without merit, and it intends to vigorously defend against all claims asserted. At this time, the Company is unable to reasonably determine the outcome of this litigation. From time to time we are subject to legal and regulatory actions relating to our business. We defend all claims vigorously. As a result, we incur defense costs, including attorneys' fees, other direct litigation costs and the expenditure of management time that otherwise would be devoted to our business. If we suffer an adverse judgment as a result of litigation claims, it could have a material adverse effect on our business, results of operations and financial condition. As disclosed in prior periods, the legal and regulatory actions facing the company include those relating to compliance with U.S. federal securities laws. Specifically, the Company has been the subject of an investigation by the Securities and Exchange Commission (“SEC”), which appears to be focused on the Company’s internal control over financial reporting and disclosure controls and procedures in light of the Company’s determination in 2015 that a portion of the life insurance and annuity policies issued by its subsidiary insurance companies failed to qualify for the favorable U.S. federal income tax treatment afforded by Sections 7702 and 72(s) of the Internal Revenue Code of 1986. There have been no allegations of fraud presented by the SEC. We have cooperated fully with the investigation and expect that the matter will be resolved soon, although we cannot predict the timing of a resolution or the ultimate outcome of the investigation. The Company does not believe it is reasonably possible that resolution of this matter could result in a material loss to the Company. Unclaimed Property Contingencies The Company was informed in 2012 by the Louisiana Department of Treasury, Arkansas Auditor of State and the Texas State Comptroller, that they authorized an audit of Citizens, Inc. and its affiliates for compliance with unclaimed property laws. This audit is being conducted by Verus Financial LLC on behalf of the states. This audit is not an active audit and there has been no activity relative to this audit for several years. If the external audit was performed it could result in additional payments to beneficiaries, additional escheatment of funds deemed abandoned under state laws, administrative penalties, interest, and changes to the Company's procedures for the identification and escheatment of abandoned property. The Company believes additional escheatment of funds in Arkansas or Texas will not be material to our financial condition or results of operations. However, additional escheatment of funds in Louisiana, which may subsequently be deemed abandoned under the Louisiana Department of Treasury’s audit, could be substantial for SPLIC if the Louisiana Department of Treasury chooses to disregard recent court decisions regarding unclaimed property litigation in favor of the insurance industry. At this time, the Company is not able to estimate any of these possible amounts. We have the following operating lease commitments as of December 31, 2017 with the payments due by the periods indicated below. Lease Commitments (In thousands) Less than 1 year $ 1,858 1 year to 3 years 2,829 3 years to 5 years 173 More than 5 years — Total $ 4,860 Operating lease expense was $1.1 million for the year ended December 31, 2017 and $0.6 million for the years ended December 31, 2016 and 2015 . |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting Information, Operating Income (Loss) [Abstract] | |
Segment Information | Segment and Other Operating Information The Company has two reportable segments: Life Insurance and Home Service Insurance. The Life Insurance and Home Service portions of the Company constitute separate businesses. In addition to the Life Insurance and Home Service business, the Company also operates other non-insurance portions of the Company, which primarily includes the Company’s IT and Corporate-support functions, which is included in the table presentation below to properly reconcile the segment information with consolidated financial statements of the Company. The accounting policies of the segments are in accordance with U.S. GAAP and are the same as those described in the summary of significant account policies. We evaluate profit and loss performance based on U.S. GAAP net income before federal income taxes for our reportable segments. The Company's Other Non-insurance operations is the only difference between segments and reported consolidated operations. Year ended December 31, 2017 Life Insurance Home Service Other Non-Insurance Operations Consolidated (In thousands) Revenues: Premiums $ 150,708 47,012 — 197,720 Net investment income 38,578 13,132 1,436 53,146 Realized investment gains (losses), net (461 ) 979 — 518 Other income 1,061 3 179 1,243 Total revenue 189,886 61,126 1,615 252,627 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 60,393 22,512 — 82,905 Increase in future policy benefit reserves 70,783 5,246 — 76,029 Policyholders' dividends 6,226 42 — 6,268 Total insurance benefits paid or provided 137,402 27,800 — 165,202 Commissions 25,760 15,564 — 41,324 Other general expenses 18,597 23,395 4,396 46,388 Capitalization of deferred policy acquisition costs (23,157 ) (5,963 ) — (29,120 ) Amortization of deferred policy acquisition costs 25,295 4,395 — 29,690 Amortization of cost of customer relationships acquired 595 1,534 — 2,129 Total benefits and expenses 184,492 66,725 4,396 255,613 Income (loss) before income tax expense $ 5,394 (5,599 ) (2,781 ) (2,986 ) Year ended December 31, 2016 Life Insurance Home Service Other Non-Insurance Enterprises Consolidated (In thousands) Revenues: Premiums $ 151,195 46,681 — 197,876 Net investment income 33,350 13,705 1,505 48,560 Realized investment losses, net (1,685 ) (300 ) — (1,985 ) Other income 882 5 68 955 Total revenue 183,742 60,091 1,573 245,406 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 58,440 22,927 — 81,367 Increase in future policy benefit reserves 71,373 4,508 — 75,881 Policyholders' dividends 6,774 58 — 6,832 Total insurance benefits paid or provided 136,587 27,493 — 164,080 Commissions 29,235 15,406 — 44,641 Other general expenses 14,284 15,252 3,820 33,356 Capitalization of deferred policy acquisition costs (26,742 ) (5,990 ) — (32,732 ) Amortization of deferred policy acquisition costs 24,428 4,087 — 28,515 Amortization of cost of customer relationships acquired 559 1,504 — 2,063 Total benefits and expenses 178,351 57,752 3,820 239,923 Income (loss) before income tax expense $ 5,391 2,339 (2,247 ) 5,483 Year ended December 31, 2015 Life Insurance Home Service Other Non-Insurance Enterprises Consolidated (In thousands) Revenues: Premiums $ 147,832 46,648 — 194,480 Net investment income 30,206 14,063 1,513 45,782 Realized investment losses, net (3,873 ) (1,586 ) — (5,459 ) Other income 1,008 86 371 1,465 Total revenue 175,173 59,211 1,884 236,268 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 55,912 22,967 — 78,879 Increase in future policy benefit reserves 73,259 3,801 — 77,060 Policyholders' dividends 10,695 52 — 10,747 Total insurance benefits paid or provided 139,866 26,820 — 166,686 Commissions 28,336 15,289 — 43,625 Other general expenses 16,345 13,349 3,593 33,287 Capitalization of deferred policy acquisition costs (25,268 ) (5,836 ) — (31,104 ) Amortization of deferred policy acquisition costs 20,025 3,375 — 23,400 Amortization of cost of customer relationships acquired 641 1,676 — 2,317 Total benefits and expenses 179,945 54,673 3,593 238,211 Income (loss) before income tax expense $ (4,772 ) 4,538 (1,709 ) (1,943 ) The table below summarizes assets by segment. December 31, 2017 2016 (In thousands) Assets: Life Insurance $ 1,191,051 1,130,288 Home Service Insurance 377,578 374,986 Other Non-Insurance Operations 75,824 78,394 Total assets $ 1,644,453 1,583,668 Major categories of earned premiums are summarized as follows: Years ended December 31, 2017 2016 2015 (In thousands) Premium income: Ordinary life $ 191,342 191,226 187,479 Group life — 28 207 Accident and health 1,392 1,546 1,599 Property 4,986 5,076 5,195 Total premium income $ 197,720 197,876 194,480 Geographic Information The following table sets forth the Company's annual total of earned premiums from geographic area for the years indicated: Years ended December 31, 2017 2016 2015 (In thousands) Area: United States $ 54,737 54,430 54,753 Colombia 29,200 29,643 27,589 Venezuela 27,997 31,107 31,948 Taiwan 19,535 18,590 18,031 Ecuador 16,440 15,456 15,527 Brazil 11,088 9,856 8,960 Other foreign countries 41,714 41,992 40,529 Net reinsurance (2,991 ) (3,198 ) (2,857 ) Total $ 197,720 197,876 194,480 |
Income Taxes (Notes)
Income Taxes (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Due to the reduced statutory tax rate under the New Tax Act, we were required to remeasure our deferred tax assets and liabilities using the lower rate at December 22, 2017, the date of enactment. This re-measurement resulted in a reduction of net deferred tax assets of $35.7 million , which includes a $4.8 million benefit related to deferred taxes previously recognized in accumulated other comprehensive income. In accordance with the SEC's Staff Accounting Bulletin No. 118 ("SAB 118"), the Company has recorded provisional amounts related to the impacts of the New Tax Act, including but not limited to the change in corporate tax rate and immediate expensing of certain capital assets. The amounts are considered provisional estimates due to complexities and ambiguities in New Tax Act which resulted in incomplete accounting for the tax effects of these provisions. Further guidance, either legislative or interpretive, and analysis will be required to complete the accounting for these items. A final determination is required to be made within a measurement period not to extend beyond one year from the enactment date of the New Tax Act. No other provisions of the New Tax Act had a significant impact on our 2017 income tax provisions. Our federal income tax expense was $35.1 million , $3.5 million and $1.2 million in 2017 , 2016 and 2015 , respectively. This represents effective tax rates of (1,176.9)% , 64.1% and (61.8)% , respectively. The high negative effective tax rate in 2017 was primarily related to remeasurement under the New Tax Act reform which went into effect on December 22, 2017. The high effective rate in 2016 and 2015 was primarily due to the effect of our uncertain tax position and the nondeductible costs to remediate our tax compliance issues. The Company holds no valuation allowance in other comprehensive income at December 31, 2017 or 2016 . A reconciliation of federal income tax expense computed by applying the federal income tax rate of 35% in 2017 , 2016 and 2015 to income (loss) before federal income tax expense is as follows: Years Ended December 31, 2017 2016 2015 Amount % Amount % Amount % (In thousands) Expected tax expense (benefit) $ (1,045 ) 35.0 % $ 1,919 35.0 % $ (680 ) 35.0 % Release of valuation allowance previously held in other comprehensive income — — — — (42 ) 2.2 Taxable stock sales — — 263 4.8 — — Tax-exempt interest and dividends-received deduction (360 ) 12.1 (553 ) (10.1 ) (746 ) 38.4 Adjustment of prior year taxes 68 (2.3 ) 29 0.5 (317 ) 16.3 Effect of graduated rates (140 ) 4.7 (57 ) (1.0 ) (71 ) 3.7 Effect of uncertain tax position (355 ) 11.9 1,672 30.5 1,890 (97.3 ) Nondeductible costs to remediate tax compliance issue (384 ) 12.9 241 4.4 1,152 (59.3 ) Tax reform re-measurement 35,718 (1,196.2 ) — — — — Goodwill impairment 1,621 (54.3 ) — — — — Other 18 (0.7 ) — — 14 (0.8 ) Total income tax expense $ 35,141 (1,176.9 )% $ 3,514 64.1 % $ 1,200 (61.8 )% Income tax expense consists of: Years Ended December 31, 2017 2016 2015 (In thousands) Current $ 14,454 13,348 (2,315 ) Deferred 20,687 (9,834 ) 3,515 Total income tax expense $ 35,141 3,514 1,200 The components of deferred federal income taxes are as follows: December 31, 2017 2016 (In thousands) Deferred tax assets: Future policy benefit reserves $ 78,372 123,101 Net operating and capital loss carryforwards 485 — Accrued expenses 65 104 Investments 6,002 6,837 State income tax credits — 119 Other 276 56 Total gross deferred tax assets 85,200 130,217 Deferred tax liabilities: Deferred policy acquisition costs, cost of customer relationships acquired and intangible assets (25,518 ) (44,709 ) Unrealized gains on investments available-for-sale (8,297 ) (7,556 ) Accrued policyholder dividends (441 ) (815 ) Other (147 ) (268 ) Total gross deferred tax liabilities (34,403 ) (53,348 ) Net deferred tax asset $ 50,797 76,869 A summary of the changes in the components of deferred federal and state income taxes is as follows: December 31, 2017 2016 (In thousands) Deferred federal and state income taxes: Balance January 1, $ 76,869 67,145 Deferred tax benefit (20,687 ) 9,834 Investments available-for-sale (5,570 ) (128 ) Effects of unrealized gains on DAC, CCRA and reserves (103 ) 18 Reclassification of MGLIC NOL from current taxes payable 288 — Balance December 31, $ 50,797 76,869 MGLIC, who is not eligible to join the Company's consolidated tax return until 2020, had a $1.2 million net operating loss carryforward at December 31, 2017 , which begin expiring in 2032 . The Company and our subsidiaries had $1.1 million of capital loss carryforwards at December 31, 2017 , which will expire, if unused, in 2022 . At December 31, 2017 and 2016 , we determined that as a result of our taxable income in carryback periods, tax planning strategies, and the expected reversal of existing deferred tax liabilities, it was more likely than not that the deferred tax assets would be realized. The Company recognizes only the impact of tax positions that, based on their technical merits, are more likely than not to be sustained upon an audit by the taxing authority. A reconciliation of unrecognized tax benefits is as follows: Years ended December 31, 2017 2016 2015 (In thousands) Balance at January 1, $ 85,762 78,079 81,459 Additions based on tax positions related to the current year 7,384 3,546 3,608 Additions for tax positions of prior years 2,685 4,706 1,570 Reductions for tax positions of prior years — (569 ) (8,558 ) Balance December 31, $ 95,831 85,762 78,079 This unrecognized tax benefit is reported net in current federal income tax payable in the Consolidated Statements of Financial Position. Included in these amounts is $6.5 million , $5.7 million and $3.5 million of interest expense with respect to unrecognized tax benefit as of December 31, 2017 , 2016 and 2015 , respectively. None of the Company’s unrecognized tax benefits at December 31, 2017 would affect the effective tax rate if recognized. The Company does not believe there is a reasonable possibility the total amount of uncertain tax benefits will significantly increase or decrease in the next twelve months. The Company’s practice is to recognize interest and penalties related to income tax matters in income tax expense. In the Consolidated Statements of Comprehensive Income (Loss), the amount of interest expense recorded was $0.8 million , $2.2 million and $0.4 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company's Federal income tax return is filed on a consolidated basis with the following entities: Citizens, Inc. CICA Life Insurance Company of America Security Plan Life Insurance Company Security Plan Fire Insurance Company Computing Technology, Inc. Insurance Investors, Inc. Citizens National Life Insurance Company Magnolia Guaranty Life Insurance Company files its Federal income tax return on a stand-alone basis as it is not eligible to join the consolidated group until 2020 . CICA Life Ltd., a Bermuda company, is a newly established entity and will file separate tax reporting. The method of allocation among companies is subject to a written tax sharing agreement, approved by the Board of Directors, whereby allocation is made primarily on a separate return basis with current credit for any net operating losses or other items utilized in the consolidated tax return. Intercompany tax balances are settled quarterly. The Company and our subsidiaries file income tax returns in the U.S. Federal jurisdiction and various U.S. states. None of our subsidiaries are subject to examination by U.S. tax authorities for years prior to 2014. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The changes in the components of other comprehensive income (loss) are reported net of the effects of income taxes of 31.1% in 2017 due to the reduced statutory tax rate under the new tax act, and 35% in 2016 and 2015 , as indicated below. Amount Tax Effect Amount (In thousands) Year ended December 31, 2017 Unrealized gains (losses) on securities: Unrealized holding gains (losses) arising during the period $ 17,374 (5,379 ) 11,995 Reclassification adjustment for (gains) losses included in net income 546 (191 ) 355 Effects on DAC and CCRA 292 (102 ) 190 Other comprehensive income (loss) $ 18,212 (5,672 ) 12,540 Year ended December 31, 2016 Unrealized gains (losses) on securities: Unrealized holding gains (losses) arising during the period $ (1,608 ) 563 (1,045 ) Reclassification adjustment for (gains) losses included in net income 1,974 (691 ) 1,283 Effects on DAC and CCRA (51 ) 18 (33 ) Other comprehensive income (loss) $ 315 (110 ) 205 Year ended December 31, 2015 Unrealized gains (losses) on securities: Unrealized holding gains (losses) arising during the period $ (24,545 ) 8,591 (15,954 ) Reclassification adjustment for (gains) losses included in net income 5,415 (1,895 ) 3,520 Effects on DAC and CCRA 328 (115 ) 213 Change in tax valuation allowance — (42 ) (42 ) Other comprehensive income (loss) $ (18,802 ) 6,539 (12,263 ) |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Benefit Plans [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | Benefit Plans The Company sponsors a defined contribution profit-sharing plan. Employees with one year of service can participate. Contributions are made at the discretion of the Board of Directors and are subject to a tiered vesting schedule. There were no employer contributions to the plan in 2017 , 2016 and 2015 . The plan does not permit employee contributions. The Company introduced an employer-sponsored 401(k) plan to all eligible employees, effective March 1, 2016. This is an additional benefit offered to employees, which supplements the defined contribution profit-sharing plan which was already in existence. Employees with one year of service can participate in the new plan. Contributions are made by employees and the Company provides a matching contribution based upon the employee's level of contribution. The Company's expense related to the new 401(k) plan was $0.7 million and $0.5 million in 2017 and 2016 , respectively. On the effective date, the Company's defined contribution profit-sharing plan was merged into the 401(k) plan and it became the Citizens, Inc. 401(k) Retirement and Profit Sharing Plan. Although merged, the profit sharing plan remains a separate and distinct employee benefit for eligible employees. The Company is primarily self-insured for employee health benefits. The Company records its self-insurance liability based on an estimate of claims incurred but not yet reported. There is stop-loss coverage for amounts in excess of $100,000 per individual per year. If more claims are made than were estimated or if the costs of actual claims increase beyond what was anticipated, reserves recorded may not be sufficient and additional accruals may be required in future periods. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company has various routine related party transactions in conjunction with our holding company structure, such as a management service agreement related to costs incurred, a tax sharing agreement between entities, and inter-company dividends and capital contributions. There were no changes related to these relationships during the year ended December 31, 2017 . In 2017 , Citizens made a $5.0 million capital contribution to CICA. In the third quarter of 2017, Citizens contributed $250,000 to CICA Life Ltd. to capitalize a newly formed Bermuda entity, SPLIC contributed $250,000 in capital to MGLIC, and SPLIC declared a dividend payable to CICA of $395,000 which will be paid in 2018. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information (Unaudited) [Abstract] | |
Quarterly Financial Information [Text Block] | Quarterly Financial Information (Unaudited) The following table contains selected unaudited financial data for each quarter. Fourth Quarter (a) Third Quarter Second Quarter First Quarter (In thousands, except per share amounts) 2017 Revenues $ 67,863 64,331 60,852 59,581 Benefits and expenses 76,998 61,221 58,756 58,638 Federal income tax expense (benefit) 35,069 (339 ) 1,524 (1,113 ) Net income (loss) (44,204 ) 3,449 572 2,056 Net income (loss) available to common shareholders (44,204 ) 3,449 572 2,056 Basic & Diluted earnings (losses) per share of Class A common stock (0.89 ) 0.07 0.01 0.04 Basic & Diluted earnings (losses) per share of Class B common stock (0.44 ) 0.03 0.01 0.02 (a) Federal income tax expense (benefit), Net income (loss) and Basic and Diluted earnings (loss) per share reflect the effects of the new tax reform re-measurement of $35.7 million . Net income (loss) and Basic and Diluted earnings (loss) per share also reflect the effects of the goodwill impairment of $4.6 million . For more information, please refer to Note 1 and Note 9. Fourth Third Second First (In thousands, except per share amounts) 2016 Revenues $ 67,903 61,741 61,237 54,525 Benefits and expenses 68,277 57,134 58,678 55,834 Federal income tax expense (benefit) (490 ) 1,845 1,077 1,082 Net income (loss) 116 2,762 1,482 (2,391 ) Net income (loss) available to common shareholders 116 2,762 1,482 (2,391 ) Basic & Diluted earnings (losses) per share of Class A common stock — 0.06 0.03 (0.05 ) Basic & Diluted earnings (losses) per share of Class B common stock — 0.03 0.01 (0.02 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Event In January 2018, the Company's Board of Directors approved awards of Restricted Stock Units under the Citizens Inc. Omnibus Incentive Plan for non-employee directors and the executive management team totaling $10,500 per director and $976,000 in total to the executive management team. The grant date was February 15, 2018 with a one year vesting schedule for the directors and a two year vesting schedule for the executive management team. In addition, the Board also approved equity grants for 2018 not to exceed $1.2 million for other employees with a delegation to the CEO to determine the value to be awarded. |
Correction of Immaterial Errors
Correction of Immaterial Errors and Reclassificaiton of Certain Amounts (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Correction of Immaterial Errors and Reclassifications of Certain Amounts [Abstract] | |
Accounting Changes and Error Corrections [Text Block] | Correction of Immaterial Errors and Reclassification of Certain Amounts Correction of Immaterial Errors In the course of preparing its consolidated financial statements for the year ended December 31, 2016, the Company identified immaterial errors in its previously filed financial statements. The errors were in the Company’s accounting for DAC and future policy benefits in the life insurance segment and several other immaterial errors in our other two segments. Two of the errors were discovered in connection with the Company’s ongoing conversion of its actuarial valuation from a third party service provider to an actuarial valuation modeling software system purchased from a vendor. The errors in valuing DAC and future policy benefits caused the Company to understate amortization of DAC over several years and to overstate the increase in future policy benefit reserves during the same periods, resulting in an overstatement of DAC of $0.3 million and an overstatement of future policy benefits of $7.9 million at December 31, 2015. There were several other immaterial errors that resulted in negligible impact at December 31, 2015. Correcting the errors resulted in a reduction in the Company’s net losses of $0.4 million in 2015. The Company assessed the materiality of these errors on its previously reported annual financial statements in accordance with SEC Staff Accounting Bulletin ("SAB") No. 99, Materiality , and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements and determined that the errors were immaterial to each of the previously reported periods. However, the Company determined that the adjustment to correct the error, if recorded in 2016 operating results, would materially misstate the 2016 financial statements. Accordingly, we are correcting the errors by restating the prior period information, and therefore have revised the Consolidated Statement of Financial Position as of December 31, 2015, the Consolidated Statements of Operations and Comprehensive Income (Loss), the Consolidated Statements of Stockholders’ Equity and the Consolidated Statements of Cash Flows for the years ended December 31, 2015. The line item effects of these immaterial error corrections are detailed below. 2015 As Reported Restatement As Adjusted (In thousands) Consolidated Statements of Financial Position Deferred policy acquisition costs $ 165,362 (1,670 ) 163,692 Deferred tax asset 68,764 (1,619 ) 67,145 Total assets 1,484,040 (3,289 ) 1,480,751 Liabilities: Future policy benefit reserves: Life insurance $ 995,972 (8,599 ) 987,373 Total policy liabilities 1,140,879 (8,599 ) 1,132,280 Current federal income tax payable 71,225 757 71,982 Other liabilities 24,205 144 24,349 Total liabilities 1,241,523 (7,698 ) 1,233,825 Accumulated deficit (22,626 ) 4,409 (18,217 ) Total stockholders' equity 242,517 4,409 246,926 Total liabilities and stockholders' equity 1,484,040 (3,289 ) 1,480,751 Consolidated Statements of Operations and Comprehensive Income (Loss) Increase in future policy benefit reserves $ 77,929 (869 ) 77,060 Total insurance benefits paid or provided 167,555 (869 ) 166,686 Other general expenses 33,143 144 33,287 Amortization of deferred policy acquisition costs 23,339 61 23,400 Total benefits and expenses 238,875 (664 ) 238,211 Income (loss) before federal income tax expense (2,607 ) 664 (1,943 ) Federal income tax expense 972 228 1,200 Net income (loss) (3,579 ) 436 (3,143 ) Basic and diluted earnings (losses) per share of Class A common stock (0.07 ) 0.01 (0.06 ) Basic and diluted earnings (losses) per share of Class B common stock (0.04 ) 0.01 (0.03 ) Comprehensive income (loss) (15,842 ) 436 (15,406 ) Consolidated Statements of Stockholders' Equity Balance at December 31, 2014 $ 258,359 3,973 262,332 Net income (loss) (3,579 ) 436 (3,143 ) Balance at December 31, 2015 242,517 4,409 246,926 Consolidated Statements of Cash Flows Net income (loss) $ (3,579 ) 436 (3,143 ) Net deferred policy acquisition costs (7,765 ) 61 (7,704 ) Deferred federal income tax benefit 4,043 (528 ) 3,515 Future policy benefit reserves 77,770 (869 ) 76,901 Commission payable and other liabilities 473 144 617 Federal income tax payable (7,593 ) 756 (6,837 ) Net cash provided by operating activities 87,153 — 87,153 |
Financial Schedules Schedule II
Financial Schedules Schedule II - Condensed Financial Information (Parent Company) (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information (Parent Company) [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Schedule II Condensed Financial Information of Registrant CITIZENS, INC. (Parent Company) Balance Sheets At December 31, 2017 2016 (In thousands) Assets Investment in subsidiaries (1) $ 158,453 173,877 Fixed maturities available-for-sale, at fair value 39,521 51,028 Fixed maturities held-to-maturity, at amortized cost 350 357 Equity securities available-for-sale, at fair value 1,133 1,030 Real estate and other long-term investments 5,832 5,920 Short-term investments — 508 Cash 23,850 14,673 Accrued investment income 576 757 Accounts receivable from subsidiaries (1) 5,489 2,658 Property and equipment 789 746 Other assets 290 237 Total assets $ 236,283 251,791 Liabilities and Stockholders' Equity Liabilities: Accrued expense and other liabilities $ 12,770 2,691 Total liabilities $ 12,770 2,691 Stockholders' equity: Common stock: Class A $ 259,383 259,383 Class B 3,184 3,184 Accumulated retained deficit (54,375 ) (16,248 ) Unrealized investment gains on securities held by parent and subsidiaries, net of tax 26,332 13,792 Treasury stock (11,011 ) (11,011 ) Total stockholders' equity 223,513 249,100 Total liabilities and stockholders' equity $ 236,283 251,791 Schedule II, Continued Condensed Financial Information of Registrant CITIZENS, INC. (Parent Company) Statements of Operations Years Ended December 31, 2017 2016 2015 (In thousands) Revenues: Management service fees (1) $ 42,367 33,748 31,328 Investment income 1,282 1,491 1,499 Other 80 49 58 Total revenues 43,729 35,288 32,885 Expenses: General expenses 41,680 33,807 29,609 Taxes, licenses and fees 1,203 996 918 Federal income tax expense (benefit) 228 (196 ) 523 Total expenses 43,111 34,607 31,050 Income before equity in income of consolidated subsidiaries 618 681 1,835 Equity in income (loss) of consolidated subsidiaries (38,745 ) 1,288 (4,978 ) Net income (loss) $ (38,127 ) 1,969 (3,143 ) (1) Eliminated in consolidation. Schedule II, Continued Condensed Financial Information of Registrant CITIZENS, INC. (Parent Company) Statements of Cash Flows Years Ended December 31, 2017 2016 2015 (In thousands) Cash flows from operating activities: Net income (loss) $ (38,127 ) 1,969 (3,143 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Equity in loss (income) of consolidated subsidiaries 38,745 (1,288 ) 4,978 Accrued expenses and other liabilities 4,370 (3,018 ) 483 Amortization of premiums and discounts on investments 714 911 984 Depreciation 319 162 155 Accrued investment income 181 35 (14 ) Decrease (increase) in receivable from subsidiaries and other assets (2,901 ) 300 (627 ) Other, net (102 ) 149 110 Net cash provided by (used in) operating activities 3,199 (780 ) 2,926 Cash flows from investing activities: Purchase of fixed maturities, available-for-sale — (6,615 ) (4,559 ) Maturities of fixed maturities, available-for-sale 10,986 8,015 2,645 Sale of other long-term investments and property and equipment 3 371 16 Purchase of other long-term investments and property and equipment (261 ) (740 ) (88 ) Purchase of short-term investments — (522 ) — Maturity of short-term investments 500 — — Capital contribution to subsidiary (5,250 ) — — Net cash provided by (used in) investment activities 5,978 509 (1,986 ) Cash flows from financing activities: Purchase of the Company's stock from affiliates — (812 ) — Net cash used in financing activities — (812 ) — Net increase (decrease) in cash 9,177 (1,083 ) 940 Cash at beginning of year 14,673 15,756 14,816 Cash at end of year $ 23,850 14,673 15,756 Note to Schedule II : Citizens, Inc.'s investments in consolidated subsidiaries are stated at cost plus equity in undistributed income of consolidated subsidiaries. The Company includes in its Statement of Operations dividends from its subsidiaries and equity in undistributed income (loss) of consolidated subsidiaries, which represents the net income (loss) of each of its wholly-owned subsidiaries. |
Financial Schedules Schedule 24
Financial Schedules Schedule III - Consolidated Supplementary Insurance Information (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Consolidated Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information, for Insurance Companies Disclosure [Text Block] | Schedule III Supplementary Insurance Information At December 31, 2017 2016 (In thousands) Deferred policy acquisition cost: Life Insurance $ 130,566 132,704 Home Service Insurance 36,497 35,086 Other Non-Insurance Enterprises — — Total consolidated deferred policy acquisition costs $ 167,063 167,790 Future policy benefit reserves and policy claims payable: Life Insurance $ 943,907 871,136 Home Service Insurance 273,256 268,724 Other Non-Insurance Enterprises — — Total consolidated future policy benefit reserves and policy claims payable $ 1,217,163 1,139,860 Unearned premiums: Life Insurance $ 1,090 915 Home Service Insurance 239 239 Other Non-Insurance Enterprises — — Total consolidated unearned premiums $ 1,329 1,154 Other policy claims and benefits payable: Life Insurance $ 80,503 73,860 Home Service Insurance 1,795 1,825 Other Non-Insurance Enterprises — — Total consolidated other policy claims and benefits payable $ 82,298 75,685 |
Financial Schedules Schedule IV
Financial Schedules Schedule IV - Consolidated Reinsurance (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Consolidated Reinsurance [Abstract] | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Text Block] | Schedule IV Reinsurance Direct Amount Ceded to Other Companies Assumed From Other Companies Net Amount % of Amount Assumed to Net (In thousands) Year ended December 31, 2017 Life insurance in force $ 4,967,856 503,685 5,564 4,469,735 0.1 % Premiums: Life insurance 193,534 2,334 142 191,342 Accident and health insurance 1,410 18 — 1,392 Property insurance 5,767 781 — 4,986 Total premiums $ 200,711 3,133 142 197,720 0.1 % Year ended December 31, 2016 Life insurance in force $ 4,997,641 522,821 22,915 4,497,735 0.5 % Premiums: Life insurance 193,604 2,501 151 191,254 Accident and health insurance 1,566 20 — 1,546 Property insurance 5,904 828 — 5,076 Total premiums $ 201,074 3,349 151 197,876 0.1 % Year ended December 31, 2015 Life insurance in force $ 4,958,369 516,933 36,766 4,478,202 0.8 % Premiums: Life insurance 189,644 2,311 353 187,686 Accident and health insurance 1,625 26 — 1,599 Property insurance 6,068 873 — 5,195 Total premiums $ 197,337 3,210 353 194,480 0.2 % |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation [Policy Text Block] | Basis of Presentation and Consolidation The accompanying consolidated financial statements of Citizens, Inc. and its wholly-owned subsidiaries have been prepared in conformity with U.S. generally accepted accounting principles ("U.S. GAAP"). The consolidated financial statements include the accounts and operations of Citizens, Inc. ("Citizens"), a Colorado corporation, and its wholly-owned subsidiaries, CICA Life Insurance Company of America ("CICA"), Citizens National Life Insurance Company ("CNLIC"), Security Plan Life Insurance Company ("SPLIC"), Security Plan Fire Insurance Company ("SPFIC"), Magnolia Guaranty Life Insurance Company ("MGLIC"), CICA Life Ltd. Bermuda, Computing Technology, Inc. ("CTI"), and Insurance Investors, Inc. ("III"). All significant inter-company accounts and transactions have been eliminated. Citizens and its wholly-owned subsidiaries are collectively referred to as "the Company", "we," or "our." We provide primarily life insurance and endowments, as well as a small amount of health insurance policies, through four of our subsidiaries - CICA, SPLIC, MGLIC and CNLIC. CICA and CNLIC issue ordinary whole-life policies, burial insurance, pre-need policies, and accident and health related policies throughout the Midwest and southern United States. CICA also issues ordinary whole-life and endowment policies to non-U.S. residents. SPLIC and MGLIC offer final expense and industrial life insurance in Louisiana, Arkansas and Mississippi, and SPFIC, a wholly-owned subsidiary of SPLIC, writes a limited amount of property insurance in Louisiana. CICA Life Ltd. is a newly established Bermuda entity with no operations to date. CTI provides data processing systems and services, as well as furniture and equipment, to the Company. III provides aviation transportation to the Company. Significant Accounting Policies Investments Investment securities are classified as held-to-maturity, available-for-sale or trading. Management determines the appropriate classification at the time of purchase. The classification of securities is significant since it directly impacts the accounting for unrealized gains and losses on securities. Fixed maturity securities are classified as held-to-maturity and carried at amortized cost when management has the positive intent and the Company has the ability to hold the securities to maturity. Securities not classified as held-to-maturity are classified as available-for-sale and are carried at fair value, with the unrealized holding gains and losses, net of tax, reported in other comprehensive income and do not affect earnings until realized. Fixed maturities consist primarily of bonds classified as available-for-sale or held-to-maturity. The Company does not classify any fixed maturities as trading. Equity securities (including non-redeemable preferred stock) are considered available-for-sale and are reported at fair value. Unrealized gains (losses) of equity securities and fixed maturities held as available-for-sale is shown as a separate component of stockholders' equity, net of tax, and is a separate component of comprehensive income. The Company evaluates all securities on a quarterly basis, and more frequently when economic conditions warrant additional evaluations, for determining if an other-than-temporary impairment ("OTTI") exists pursuant to the accounting guidelines. In evaluating the possible impairment of securities, consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial conditions and near-term prospects of the issuer, and the ability and intent of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. In analyzing an issuer’s financial condition, the Company may consider whether the securities are issued by the Federal government or its agencies, by government-sponsored agencies, or whether downgrades by bond rating agencies have occurred, and reviews of the issuer’s financial condition. If management determines that an investment experienced an OTTI, management must then determine the amount of OTTI to be recognized in earnings. If management does not intend to sell the security and it is more likely than not that the Company will not be required to sell the security before recovery of its amortized cost basis less any current period loss, the OTTI will be separated into the amount representing the credit loss and the amount related to all other factors. The amount of OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of OTTI related to other factors will be recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings will become the new amortized cost basis of the investment. If management intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the OTTI will be recognized in earnings equal to the entire difference between the investment's amortized cost basis and its fair value at the balance sheet date. Any recoveries related to the value of these securities are recorded as an unrealized gain (as other comprehensive income (loss) in stockholders' equity) and not recognized in income until the security is ultimately sold. The Company from time to time may dispose of an impaired security in response to asset/liability management decisions, future market movements, business plan changes, or if the net proceeds can be reinvested at a rate of return that is expected to recover the loss within a reasonable period of time. Mortgage loans on real estate and policy loans are reported at unpaid principal balances. Real estate and other long-term investments consist primarily of land and buildings that are recorded at depreciated cost. If the fair value of the real estate is less than the carrying value, an impairment loss is recognized and charged to earnings. Real estate held for sale represented a building we owned in Arkansas, which was sold in 2017. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to yield using the effective interest method. Dividend and interest income is recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities sold. The Company had cash equivalents, fixed maturities and equity securities with an aggregate fair value of $9.8 million and $10.0 million at December 31, 2017 and 2016 , respectively, on deposit with various state regulatory authorities to fulfill statutory requirements. Premium Revenue and Related Expenses Premiums on life policies are recognized as earned when due. Due premiums on the statements of financial position are net of allowances. Premiums paid in advance on the statements of financial position are held on deposit and accrue interest at rates ranging from 2.5% to 6.0% until such time the premiums become due. Accident and health policies are recognized as revenue over the contract period on a pro rata basis. Benefits and expenses are associated with earned premiums so as to result in the recognition of profits over the estimated lives of the contracts. This matching is accomplished by means of a provision for future policy benefits and the capitalization and amortization of deferred policy acquisition costs. Annuity policies, primarily flexible premium fixed annuity products, are accounted for in a manner consistent with accounting for interest bearing financial instruments. Premium receipts are not reported as revenue, rather as deposit liabilities to annuity contracts. The annuity products issued do not include fees or other such charges. Deferred Policy Acquisition Costs Acquisition costs, consisting of commissions and policy issuance, underwriting and agent convention expenses that are directly related to and vary with the successful production of new and renewal business, have been deferred. These deferred amounts, referred to as deferred policy acquisition costs ("DAC"), are recorded as an asset on the consolidated balance sheet and amortized to income in a systematic manner, based on related contract revenues or gross profits as appropriate. Traditional life insurance and accident and health insurance acquisition costs are being amortized over the premium-paying period of the related policies using assumptions consistent with those used in computing future policy benefit liabilities. For universal life type contracts and investment contracts that include significant surrender charges or that yield significant revenues from sources other than the investment contract holders' funds, the deferred contract acquisition cost amortization is matched to the recognition of gross profit. The effect on the DAC asset that would result from realization of unrealized gains or losses is recognized with an offset to accumulated other comprehensive income in consolidated stockholders' equity. If an internal replacement of insurance or investment contract modification substantially changes a contract as defined in current accounting guidance, then the DAC is written off immediately through income and any new deferrable costs associated with the new replacement are deferred. If a contract modification does not substantially change the contract, the DAC amortization on the original contract will continue and any acquisition costs associated with the related modification are immediately expensed. We utilize the factor method to determine the amount of costs to be capitalized and the ending asset balance. The factor method is based on the ratio of premium revenue recognized for the policies in force at the end of each reporting period compared to the premium revenue recognized for policies in force at the beginning of the reporting period. The factor method ensures that policies lapsed or surrendered during the reporting period are no longer included in the deferred policy acquisition costs calculation. The factor method limits the amount of deferred costs to its estimated realizable value, provided actual experience is comparable to that contemplated in the factors. Inherent in the capitalization and amortization of deferred policy acquisition costs are certain management judgments about what acquisition costs are deferred, the ending asset balance and the annual amortization. Approximately 95% of our capitalized deferred acquisition costs are attributed to first year and renewal excess commissions. The remaining 5% are attributed to costs that vary with and are directly related to the successful acquisition of new insurance business. Those costs generally include costs related to the production, underwriting and issuance of new business. DAC is subject to recoverability testing at the time of policy issuance and loss recognition testing on an annual basis, or when an event occurs that might require loss recognition testing. If loss recognition or impairment is necessary, DAC would be written off to the extent that anticipated future premiums and investment income is insufficient to cover expected future policy benefits and expenses. Loss recognition testing that considers, among other things, actual experience and projected future experience calculates the available premium (gross premium less the benefit and expense portion of premium) for the next 50 years. The available premium per policy and the deferred policy acquisition costs per policy are then calculated. The deferred policy acquisition costs are then evaluated for recoverability using best estimate assumptions. Management believes that our deferred policy acquisition costs and related amortization for the years ended December 31, 2017 , 2016 and 2015 limits the amount of deferred costs to its estimated realizable value. This belief is based upon the analysis performed on capitalized expenses that vary with and are directly related to the acquisition of new and renewal insurance business, utilization of the factor method and recoverability testing at the time of policy issuance and the annual loss recognition testing. The components of deferred acquisition costs from year to year are summarized as follows: For the Years Ended December 31, 2017 2016 2015 (In thousands) Balance at beginning of period $ 167,790 163,692 155,859 Capitalized 29,120 32,732 31,104 Amortized (29,690 ) (28,515 ) (23,400 ) Effects of unrealized (gains) losses (157 ) (119 ) 129 Balance at end of period $ 167,063 167,790 163,692 Cost of Customer Relationships Acquired Cost of customer relationships acquired ("CCRA") is established when we purchase a block of insurance. CCRA is amortized primarily over the emerging profit of the related policies using the same assumptions as were used in computing liabilities for future policy benefits. Inherent in the amortization of CCRA are certain management judgments about the ending asset balance and the annual amortization. The assumptions used are based upon interest, mortality and lapses at the time of purchase. A recoverability test that considers, among other things, actual experience and projected future experience is performed at least annually. These annual recoverability tests initially calculate the available premium (gross premium less the benefit and expense portion of premium) for the next 50 years. The CCRA is then evaluated utilizing reasonable assumptions. Management believes that our CCRA and related amortization is recoverable for the years ended December 31, 2017 , 2016 and 2015 . This belief is based upon the analysis performed on estimated future results of the block and our annual recoverability testing. Cost of customer relationships acquired relative to purchased blocks of insurance is summarized as follows: For the Years Ended December 31, 2017 2016 2015 (In thousands) Balance at beginning of period $ 19,415 21,585 23,542 Acquisitions — — — Amortization (2,129 ) (2,063 ) (2,317 ) Change in effects of unrealized (gains) losses on CCRA 213 (107 ) 360 Balance at end of period $ 17,499 19,415 21,585 Estimated amortization of cost of customer relationship acquired in each of the next five years and thereafter is as follows. Actual future amortization will differ from these estimates due to variances from estimated future withdrawal assumptions. Amount (In thousands) Year: 2018 $ 1,619 2019 1,424 2020 1,289 2021 1,168 2022 1,060 Thereafter 11,285 17,845 Effects of unrealized (gains) losses on CCRA (346 ) Total $ 17,499 The value of CCRA in our various acquisitions, which is included in cost of customer relationships acquired in the accompanying consolidated financial statements, was determined based on the present value of future profits discounted at annual rates ranging from 3.7% to 8.5% . Future Policy Benefits and Expenses Future policy benefit reserves for traditional life insurance and accident and health insurance contract benefits and expenses are computed using a net level premium method, with assumptions as to investment yields, dividends on participating business, mortality and withdrawals based upon our experience, modified as necessary to reflect anticipated trends and to include provisions for possible unfavorable deviations. The accrued account balance for non-traditional life insurance and investment contracts is computed as deposits net of withdrawals made by the contract holder, plus amounts credited based on contract specifications, less contract fees and charges assessed, plus any additional interest. Annuity interest crediting rates range from 2.5% to 5.5% annually. Benefits and expenses are charged against the account balance to recognize costs as incurred over the estimated lives of the contracts. Expenses include interest credited to contract account balances and benefits paid in excess of contract account balances. Unpaid claims on accident and health and specialty property insurance policies represent the estimated liability for benefit expenses, both reported but not paid and incurred but not reported to the Company. The liability for incurred but not reported claims includes estimates for additional claim amounts due related to reported claims. Liabilities for unpaid claims are estimated using individual case basis valuations and statistical analysis. Those estimates are subject to the effects of trends in claim severity and frequency. Anticipated investment income is not considered in determining whether a premium deficiency exists with respect to short-duration contracts. Premium deposits accrue interest at rates ranging from 2.5% to 6.0% per annum. The cost of insurance is included in the premium when collected and interest is credited annually to deposit accounts. The development of liabilities for future policy benefits requires management to make estimates and assumptions regarding mortality, morbidity, lapse, expense, and investment experience. These estimates are based primarily on historical experience and future expectations of mortality, morbidity, expense, persistency, and investment assumptions. Actual results could differ materially from estimates. We monitor actual experience and revise assumptions as necessary. Goodwill and Other Intangible Assets Goodwill is the difference between the purchase price in a business combination and the fair value of assets and liabilities acquired, and is not amortized. Other intangible assets include various state insurance licenses, which have been determined to have indefinite useful lives and, therefore, are not amortized. Both goodwill and other intangible assets with indefinite useful lives are subject to annual impairment analysis. The goodwill impairment test uses a two-step process as set forth under current accounting guidance. In the first step, the fair value of a reporting unit is compared to its carrying value. If the carrying value of a reporting unit exceeds its fair value, the second step of the impairment test is performed for purposes of measuring the impairment. In the second step, the fair value of projected new business is compared to the carrying value of goodwill. A requirement of this method is that the inforce must pass loss recognition testing. If the carrying amount of the reporting unit goodwill exceeds the fair value of projected new business, an impairment loss is recognized in an amount equal to that excess. In January 2017, the FASB issued Accounting Standards Update ("ASU") No. 2017-04, Simplifying the Test for Goodwill Impairmen t. An entity will no longer perform a hypothetical purchase price allocation to measure impairment, eliminating step 2 of the goodwill impairment test. Instead, impairment will be measured using the difference of the carrying amount to the fair value of the reporting unit. The ASU is effective prospectively for annual and interim periods in fiscal year beginning after December 15, 2019, but early adoption is permitted for goodwill impairment tests with measurement dates after January 1, 2017. The Company elected to early adopt this ASU for our 2017 annual evaluation. Management’s determination of the fair value of each reporting unit incorporates multiple inputs including discounted cash flow calculations based on assumptions that market participants would make in valuing the reporting unit. Other assumptions can include levels of economic capital, future business growth, and earnings projections. As of December 31, 2017 , the Company had goodwill of $12.6 million allocated to the Life Insurance segment. The Company completes its annual goodwill assessment for the individual reporting units within the Life Insurance segment and Home Service Insurance segment as of December 31 each year. We recorded an impairment of $4.6 million in 2017 in our Home Service segment. This impairment is recorded in other general expenses on the Consolidated Statement of Operations. We adjusted our discount rate used in our fair value calculation from 10% in 2016 to 12% in 2017 based upon current market inputs as well as decreasing our estimate related to long term investment earned rates from 5.85% in 2016 to 4.95% in 2017 due to the current interest environment. These revisions resulted in decreasing the fair value of this segment. We also estimated lower new business projections in our 2017 valuation based upon the lack of market share growth in this segment. There was no impairment of goodwill in 2016 or 2015 related to the Life or Home Service segment. Goodwill is summarized as follows: For the Years Ended December 31, 2017 2016 2015 (In thousands) Balance at January 1, $ 17,255 17,255 17,255 Acquisition — — — Adjustments — — — Impairment (4,631 ) — — Balance at December 31, $ 12,624 17,255 17,255 Participating Policies At December 31, 2017 and 2016 , participating business approximated 62.5% and 62.2% of direct life insurance in force, respectively. Future policy benefits on participating policies are estimated based on net level premium reserves for death and endowment policy benefits with interest rates ranging from 3.2% to 9.0% , and the cash surrender values described in such contracts. The scaling rate used for the 2017 portfolio ranged between 3.19% for 1 year and then going up to 4.45% over 20 years and remaining there for the duration. Earnings and dividends on participating policies are allocated based on policies in force. Policyholder dividends are determined based on the discretion of the Board of Directors of the policy issuing subsidiary. Policyholder dividends are accrued over the premium paying periods of the insurance contract. Earnings Per Share Basic earnings per share are computed by dividing income available to common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share are computed under the if-converted method for convertible securities and the treasury stock method for warrants, giving effect to all potential dilutive common stock, including options, warrants and convertible/redeemable preferred stock. The basic and diluted earnings per share of Class B common stock are one half the earnings per share of the Class A common stock. The following table sets forth the computation of basic and diluted earnings per share. Years Ended December 31, 2017 2016 2015 (In thousands, except per share amounts) Basic and diluted earnings per share: Numerator: Net income (loss) $ (38,127 ) 1,969 (3,143 ) Net income (loss) allocated to Class A common stock $ (37,742 ) 1,949 (3,112 ) Net income (loss) allocated to Class B common stock (385 ) 20 (31 ) Net income (loss) $ (38,127 ) 1,969 (3,143 ) Denominator: Weighted average shares of Class A outstanding - basic and diluted 49,080 49,080 49,080 Weighted average shares of Class B outstanding - basic and diluted 1,002 1,002 1,002 Total weighted average shares outstanding - basic and diluted 50,082 50,082 50,082 Basic and diluted earnings (losses) per share of Class A common stock $ (0.77 ) 0.04 (0.06 ) Basic and diluted earnings (losses) per share of Class B common stock (0.38 ) 0.02 (0.03 ) Income Taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered. A deferred tax asset is recorded only if a determination is made that it is more-likely-than-not that the tax treatment on which the deferred tax asset depends will be sustained in the event of an audit. These determinations inherently involve management's judgment. In addition, the Company must record a tax valuation allowance with respect to deferred tax assets if it is more-likely-than-not that the tax benefit will not be realized. This valuation allowance is in essence a contra account to the deferred tax asset. Management must determine the portion of the deferred tax asset and resulting tax benefit that may not be realized based upon judgment of expected outcomes. Property and Equipment Property and equipment are carried at cost less accumulated depreciation. Depreciation of property and equipment is computed using the straight-line method over the useful lives of the assets, ranging from three to thirty years. The following is a summary of property and equipment. December 31, 2017 2016 (In thousands) Property and equipment: Home office, land and buildings $ 4,139 10,051 Furniture and equipment 3,189 2,994 Electronic data processing equipment and computer software 8,042 6,914 Automobiles 91 175 Airplane — 3,356 Total property and equipment 15,461 23,490 Accumulated depreciation (8,837 ) (15,600 ) Balance at end of period $ 6,624 7,890 During August 2017, the Company relocated its home office to a different location and entered into a lease with an unrelated party. The Company's previous home office was in a building owned by a Company affiliate. During the fourth quarter of 2017, the building was reclassified in the amount of $1.6 million from property and equipment to real estate held for investment on the Consolidated Statement of Financial Position, and the Company is currently searching for tenants to lease the office space. Lease payments at the new home office are $114,000 per month during the twelve months beginning August 1, 2017 and increase to $118,000 per month for the second year beginning August 1, 2018. After that, the Company will renegotiate with the landlord for a long term lease. The Company sold its airplane in 2017 for a gain of $99,000 , which is included in other income on the Consolidated Statement of Operations. Reinsurance Recoverable Reinsurance recoverable includes expected reimbursements for policyholder claim amounts in excess of the Company's retention, as well as profit sharing and experience refund accruals. Reinsurance recoverable is reduced for estimated uncollectible amounts, if any. Reinsurance premiums, benefits and expenses are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. The cost of reinsurance related to long duration contracts is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies. The cost of reinsurance related to short duration contracts is accounted for over the coverage period. Profit-sharing and similar adjustable provisions are accrued based on the experience of the underlying policies. Contingencies An estimated loss from a contingency is accrued and charged to results of operations only if both of the following conditions are met: 1. Information available prior to the issuance of the financial statements indicates that it is probable (virtual certainty is not required) that an asset has been impaired or a liability incurred as of the date of the financial statements; and 2. The amount of the loss can be reasonably estimated. Reasonable estimation of a possible loss does not require estimating a single amount of the loss. It requires that a loss be accrued if it can be estimated within a range. If an amount within the range is a better estimate than any other amount within the range, that amount is accrued. If no amount within the range is a better estimate than any other amount, the minimum amount in the range is accrued. A gain contingency is an uncertain situation that will be resolved in the future, possibly resulting in a gain. We do not allow the recognition of a gain contingency prior to settlement of the underlying event. If we were to have a material gain contingency, we would disclose it in the notes to the consolidated financial statements. Cash Equivalents The Company considers cash equivalents as all securities whose duration does not exceed 90 days at the date of acquisition. Short-term Investments The Company considers investments maturing within one year at acquisition as short-term. These securities are carried at amortized cost, which approximates market value. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from these estimates. Reclassifications Certain amounts presented in prior years have been reclassified to conform to the current presentation. No individual amounts were material. Accounting Pronouncements Accounting Standards Recently Adopted On May 21, 2015, the FASB issued ASU 2015-09, Disclosures about Short-Duration Contracts , addressing enhanced disclosure requirements for insurers relating to short-duration insurance contract claims and the unpaid claims liability rollforward for long and short-duration contracts. The disclosures are intended to provide users of financial statements with more transparent information about an insurance entity’s initial claim estimates and subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. The new disclosures required the accumulation and reporting of new and different groupings of claims data than previously reported. For public business entities, the new guidance is effective for annual reporting periods beginning after December 15, 2015. In January 2017, the FASB issued Accounting Standards Update ("ASU") No. 2017-04, Simplifying the Test for Goodwill Impairmen t. An entity will no longer perform a hypothetical purchase price allocation to measure impairment, eliminating step 2 of the goodwill impairment test. Instead, impairment will be measured using the difference of the carrying amount to the fair value of the reporting unit. The ASU is effective prospectively for annual and interim periods in fiscal year beginning after December 15, 2019, but early adoption is permitted for goodwill impairment tests with measurement dates after January 1, 2017. The Company elected to early adopt this ASU for our 2017 annual evaluation. Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a five-step process to achieve that core principle. ASU 2014-09 requires disclosures enabling users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, using one of two retrospective application methods. We have evaluated the effect the guidance will have on our consolidated financial statements. We do not expect that any portion of our revenue will be affected by the new standard, primarily as the new guidance does not apply to revenue from insurance contracts and our non-insurance subsidiaries do not receive revenues from customers. The FASB’s new lease accounting standard, ASU 2016-02, Leases (Topic 842) , was issued on February 25, 2016. The ASU will require organizations that lease assets, referred to as “lessees”, to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The ASU also will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclo |
Investments [Policy Text Block] | Investments Investment securities are classified as held-to-maturity, available-for-sale or trading. Management determines the appropriate classification at the time of purchase. The classification of securities is significant since it directly impacts the accounting for unrealized gains and losses on securities. Fixed maturity securities are classified as held-to-maturity and carried at amortized cost when management has the positive intent and the Company has the ability to hold the securities to maturity. Securities not classified as held-to-maturity are classified as available-for-sale and are carried at fair value, with the unrealized holding gains and losses, net of tax, reported in other comprehensive income and do not affect earnings until realized. Fixed maturities consist primarily of bonds classified as available-for-sale or held-to-maturity. The Company does not classify any fixed maturities as trading. Equity securities (including non-redeemable preferred stock) are considered available-for-sale and are reported at fair value. Unrealized gains (losses) of equity securities and fixed maturities held as available-for-sale is shown as a separate component of stockholders' equity, net of tax, and is a separate component of comprehensive income. The Company evaluates all securities on a quarterly basis, and more frequently when economic conditions warrant additional evaluations, for determining if an other-than-temporary impairment ("OTTI") exists pursuant to the accounting guidelines. In evaluating the possible impairment of securities, consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial conditions and near-term prospects of the issuer, and the ability and intent of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. In analyzing an issuer’s financial condition, the Company may consider whether the securities are issued by the Federal government or its agencies, by government-sponsored agencies, or whether downgrades by bond rating agencies have occurred, and reviews of the issuer’s financial condition. If management determines that an investment experienced an OTTI, management must then determine the amount of OTTI to be recognized in earnings. If management does not intend to sell the security and it is more likely than not that the Company will not be required to sell the security before recovery of its amortized cost basis less any current period loss, the OTTI will be separated into the amount representing the credit loss and the amount related to all other factors. The amount of OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of OTTI related to other factors will be recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings will become the new amortized cost basis of the investment. If management intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the OTTI will be recognized in earnings equal to the entire difference between the investment's amortized cost basis and its fair value at the balance sheet date. Any recoveries related to the value of these securities are recorded as an unrealized gain (as other comprehensive income (loss) in stockholders' equity) and not recognized in income until the security is ultimately sold. The Company from time to time may dispose of an impaired security in response to asset/liability management decisions, future market movements, business plan changes, or if the net proceeds can be reinvested at a rate of return that is expected to recover the loss within a reasonable period of time. Mortgage loans on real estate and policy loans are reported at unpaid principal balances. Real estate and other long-term investments consist primarily of land and buildings that are recorded at depreciated cost. If the fair value of the real estate is less than the carrying value, an impairment loss is recognized and charged to earnings. Real estate held for sale represented a building we owned in Arkansas, which was sold in 2017. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to yield using the effective interest method. Dividend and interest income is recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities sold. The Company had cash equivalents, fixed maturities and equity securities with an aggregate fair value of $9.8 million and $10.0 million at December 31, 2017 and 2016 , respectively, on deposit with various state regulatory authorities to fulfill statutory requirements. Short-term Investments The Company considers investments maturing within one year at acquisition as short-term. These securities are carried at amortized cost, which approximates market value. |
Premium Revenue and Related Expenses [Policy Text Block] | Premium Revenue and Related Expenses Premiums on life policies are recognized as earned when due. Due premiums on the statements of financial position are net of allowances. Premiums paid in advance on the statements of financial position are held on deposit and accrue interest at rates ranging from 2.5% to 6.0% until such time the premiums become due. Accident and health policies are recognized as revenue over the contract period on a pro rata basis. Benefits and expenses are associated with earned premiums so as to result in the recognition of profits over the estimated lives of the contracts. This matching is accomplished by means of a provision for future policy benefits and the capitalization and amortization of deferred policy acquisition costs. Annuity policies, primarily flexible premium fixed annuity products, are accounted for in a manner consistent with accounting for interest bearing financial instruments. Premium receipts are not reported as revenue, rather as deposit liabilities to annuity contracts. The annuity products issued do not include fees or other such charges. |
Deferred Policy Acquisition Costs and Cost of Customer Relationships Acquired, Policy [Policy Text Block] | Deferred Policy Acquisition Costs Acquisition costs, consisting of commissions and policy issuance, underwriting and agent convention expenses that are directly related to and vary with the successful production of new and renewal business, have been deferred. These deferred amounts, referred to as deferred policy acquisition costs ("DAC"), are recorded as an asset on the consolidated balance sheet and amortized to income in a systematic manner, based on related contract revenues or gross profits as appropriate. Traditional life insurance and accident and health insurance acquisition costs are being amortized over the premium-paying period of the related policies using assumptions consistent with those used in computing future policy benefit liabilities. For universal life type contracts and investment contracts that include significant surrender charges or that yield significant revenues from sources other than the investment contract holders' funds, the deferred contract acquisition cost amortization is matched to the recognition of gross profit. The effect on the DAC asset that would result from realization of unrealized gains or losses is recognized with an offset to accumulated other comprehensive income in consolidated stockholders' equity. If an internal replacement of insurance or investment contract modification substantially changes a contract as defined in current accounting guidance, then the DAC is written off immediately through income and any new deferrable costs associated with the new replacement are deferred. If a contract modification does not substantially change the contract, the DAC amortization on the original contract will continue and any acquisition costs associated with the related modification are immediately expensed. We utilize the factor method to determine the amount of costs to be capitalized and the ending asset balance. The factor method is based on the ratio of premium revenue recognized for the policies in force at the end of each reporting period compared to the premium revenue recognized for policies in force at the beginning of the reporting period. The factor method ensures that policies lapsed or surrendered during the reporting period are no longer included in the deferred policy acquisition costs calculation. The factor method limits the amount of deferred costs to its estimated realizable value, provided actual experience is comparable to that contemplated in the factors. Inherent in the capitalization and amortization of deferred policy acquisition costs are certain management judgments about what acquisition costs are deferred, the ending asset balance and the annual amortization. Approximately 95% of our capitalized deferred acquisition costs are attributed to first year and renewal excess commissions. The remaining 5% are attributed to costs that vary with and are directly related to the successful acquisition of new insurance business. Those costs generally include costs related to the production, underwriting and issuance of new business. DAC is subject to recoverability testing at the time of policy issuance and loss recognition testing on an annual basis, or when an event occurs that might require loss recognition testing. If loss recognition or impairment is necessary, DAC would be written off to the extent that anticipated future premiums and investment income is insufficient to cover expected future policy benefits and expenses. Loss recognition testing that considers, among other things, actual experience and projected future experience calculates the available premium (gross premium less the benefit and expense portion of premium) for the next 50 years. The available premium per policy and the deferred policy acquisition costs per policy are then calculated. The deferred policy acquisition costs are then evaluated for recoverability using best estimate assumptions. Management believes that our deferred policy acquisition costs and related amortization for the years ended December 31, 2017 , 2016 and 2015 limits the amount of deferred costs to its estimated realizable value. This belief is based upon the analysis performed on capitalized expenses that vary with and are directly related to the acquisition of new and renewal insurance business, utilization of the factor method and recoverability testing at the time of policy issuance and the annual loss recognition testing. The components of deferred acquisition costs from year to year are summarized as follows: For the Years Ended December 31, 2017 2016 2015 (In thousands) Balance at beginning of period $ 167,790 163,692 155,859 Capitalized 29,120 32,732 31,104 Amortized (29,690 ) (28,515 ) (23,400 ) Effects of unrealized (gains) losses (157 ) (119 ) 129 Balance at end of period $ 167,063 167,790 163,692 Cost of Customer Relationships Acquired Cost of customer relationships acquired ("CCRA") is established when we purchase a block of insurance. CCRA is amortized primarily over the emerging profit of the related policies using the same assumptions as were used in computing liabilities for future policy benefits. Inherent in the amortization of CCRA are certain management judgments about the ending asset balance and the annual amortization. The assumptions used are based upon interest, mortality and lapses at the time of purchase. A recoverability test that considers, among other things, actual experience and projected future experience is performed at least annually. These annual recoverability tests initially calculate the available premium (gross premium less the benefit and expense portion of premium) for the next 50 years. The CCRA is then evaluated utilizing reasonable assumptions. Management believes that our CCRA and related amortization is recoverable for the years ended December 31, 2017 , 2016 and 2015 . This belief is based upon the analysis performed on estimated future results of the block and our annual recoverability testing. Cost of customer relationships acquired relative to purchased blocks of insurance is summarized as follows: For the Years Ended December 31, 2017 2016 2015 (In thousands) Balance at beginning of period $ 19,415 21,585 23,542 Acquisitions — — — Amortization (2,129 ) (2,063 ) (2,317 ) Change in effects of unrealized (gains) losses on CCRA 213 (107 ) 360 Balance at end of period $ 17,499 19,415 21,585 Estimated amortization of cost of customer relationship acquired in each of the next five years and thereafter is as follows. Actual future amortization will differ from these estimates due to variances from estimated future withdrawal assumptions. Amount (In thousands) Year: 2018 $ 1,619 2019 1,424 2020 1,289 2021 1,168 2022 1,060 Thereafter 11,285 17,845 Effects of unrealized (gains) losses on CCRA (346 ) Total $ 17,499 The value of CCRA in our various acquisitions, which is included in cost of customer relationships acquired in the accompanying consolidated financial statements, was determined based on the present value of future profits discounted at annual rates ranging from 3.7% to 8.5% . |
Future Policy Benefits and Expenses [Policy Text Block] | Future Policy Benefits and Expenses Future policy benefit reserves for traditional life insurance and accident and health insurance contract benefits and expenses are computed using a net level premium method, with assumptions as to investment yields, dividends on participating business, mortality and withdrawals based upon our experience, modified as necessary to reflect anticipated trends and to include provisions for possible unfavorable deviations. The accrued account balance for non-traditional life insurance and investment contracts is computed as deposits net of withdrawals made by the contract holder, plus amounts credited based on contract specifications, less contract fees and charges assessed, plus any additional interest. Annuity interest crediting rates range from 2.5% to 5.5% annually. Benefits and expenses are charged against the account balance to recognize costs as incurred over the estimated lives of the contracts. Expenses include interest credited to contract account balances and benefits paid in excess of contract account balances. Unpaid claims on accident and health and specialty property insurance policies represent the estimated liability for benefit expenses, both reported but not paid and incurred but not reported to the Company. The liability for incurred but not reported claims includes estimates for additional claim amounts due related to reported claims. Liabilities for unpaid claims are estimated using individual case basis valuations and statistical analysis. Those estimates are subject to the effects of trends in claim severity and frequency. Anticipated investment income is not considered in determining whether a premium deficiency exists with respect to short-duration contracts. Premium deposits accrue interest at rates ranging from 2.5% to 6.0% per annum. The cost of insurance is included in the premium when collected and interest is credited annually to deposit accounts. The development of liabilities for future policy benefits requires management to make estimates and assumptions regarding mortality, morbidity, lapse, expense, and investment experience. These estimates are based primarily on historical experience and future expectations of mortality, morbidity, expense, persistency, and investment assumptions. Actual results could differ materially from estimates. We monitor actual experience and revise assumptions as necessary. |
Goodwill and Other Intangible Assets [Policy Text Block] | Goodwill and Other Intangible Assets Goodwill is the difference between the purchase price in a business combination and the fair value of assets and liabilities acquired, and is not amortized. Other intangible assets include various state insurance licenses, which have been determined to have indefinite useful lives and, therefore, are not amortized. Both goodwill and other intangible assets with indefinite useful lives are subject to annual impairment analysis. The goodwill impairment test uses a two-step process as set forth under current accounting guidance. In the first step, the fair value of a reporting unit is compared to its carrying value. If the carrying value of a reporting unit exceeds its fair value, the second step of the impairment test is performed for purposes of measuring the impairment. In the second step, the fair value of projected new business is compared to the carrying value of goodwill. A requirement of this method is that the inforce must pass loss recognition testing. If the carrying amount of the reporting unit goodwill exceeds the fair value of projected new business, an impairment loss is recognized in an amount equal to that excess. In January 2017, the FASB issued Accounting Standards Update ("ASU") No. 2017-04, Simplifying the Test for Goodwill Impairmen t. An entity will no longer perform a hypothetical purchase price allocation to measure impairment, eliminating step 2 of the goodwill impairment test. Instead, impairment will be measured using the difference of the carrying amount to the fair value of the reporting unit. The ASU is effective prospectively for annual and interim periods in fiscal year beginning after December 15, 2019, but early adoption is permitted for goodwill impairment tests with measurement dates after January 1, 2017. The Company elected to early adopt this ASU for our 2017 annual evaluation. Management’s determination of the fair value of each reporting unit incorporates multiple inputs including discounted cash flow calculations based on assumptions that market participants would make in valuing the reporting unit. Other assumptions can include levels of economic capital, future business growth, and earnings projections. As of December 31, 2017 , the Company had goodwill of $12.6 million allocated to the Life Insurance segment. The Company completes its annual goodwill assessment for the individual reporting units within the Life Insurance segment and Home Service Insurance segment as of December 31 each year. We recorded an impairment of $4.6 million in 2017 in our Home Service segment. This impairment is recorded in other general expenses on the Consolidated Statement of Operations. We adjusted our discount rate used in our fair value calculation from 10% in 2016 to 12% in 2017 based upon current market inputs as well as decreasing our estimate related to long term investment earned rates from 5.85% in 2016 to 4.95% in 2017 due to the current interest environment. These revisions resulted in decreasing the fair value of this segment. We also estimated lower new business projections in our 2017 valuation based upon the lack of market share growth in this segment. There was no impairment of goodwill in 2016 or 2015 related to the Life or Home Service segment. Goodwill is summarized as follows: For the Years Ended December 31, 2017 2016 2015 (In thousands) Balance at January 1, $ 17,255 17,255 17,255 Acquisition — — — Adjustments — — — Impairment (4,631 ) — — Balance at December 31, $ 12,624 17,255 17,255 |
Participating Policies [Policy Text Block] | Participating Policies At December 31, 2017 and 2016 , participating business approximated 62.5% and 62.2% of direct life insurance in force, respectively. Future policy benefits on participating policies are estimated based on net level premium reserves for death and endowment policy benefits with interest rates ranging from 3.2% to 9.0% , and the cash surrender values described in such contracts. The scaling rate used for the 2017 portfolio ranged between 3.19% for 1 year and then going up to 4.45% over 20 years and remaining there for the duration. Earnings and dividends on participating policies are allocated based on policies in force. Policyholder dividends are determined based on the discretion of the Board of Directors of the policy issuing subsidiary. Policyholder dividends are accrued over the premium paying periods of the insurance contract. |
Earnings Per Share [Policy Text Block] | Earnings Per Share Basic earnings per share are computed by dividing income available to common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share are computed under the if-converted method for convertible securities and the treasury stock method for warrants, giving effect to all potential dilutive common stock, including options, warrants and convertible/redeemable preferred stock. The basic and diluted earnings per share of Class B common stock are one half the earnings per share of the Class A common stock. The following table sets forth the computation of basic and diluted earnings per share. Years Ended December 31, 2017 2016 2015 (In thousands, except per share amounts) Basic and diluted earnings per share: Numerator: Net income (loss) $ (38,127 ) 1,969 (3,143 ) Net income (loss) allocated to Class A common stock $ (37,742 ) 1,949 (3,112 ) Net income (loss) allocated to Class B common stock (385 ) 20 (31 ) Net income (loss) $ (38,127 ) 1,969 (3,143 ) Denominator: Weighted average shares of Class A outstanding - basic and diluted 49,080 49,080 49,080 Weighted average shares of Class B outstanding - basic and diluted 1,002 1,002 1,002 Total weighted average shares outstanding - basic and diluted 50,082 50,082 50,082 Basic and diluted earnings (losses) per share of Class A common stock $ (0.77 ) 0.04 (0.06 ) Basic and diluted earnings (losses) per share of Class B common stock (0.38 ) 0.02 (0.03 ) |
Income Taxes [Policy Text Block] | Income Taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered. A deferred tax asset is recorded only if a determination is made that it is more-likely-than-not that the tax treatment on which the deferred tax asset depends will be sustained in the event of an audit. These determinations inherently involve management's judgment. In addition, the Company must record a tax valuation allowance with respect to deferred tax assets if it is more-likely-than-not that the tax benefit will not be realized. This valuation allowance is in essence a contra account to the deferred tax asset. Management must determine the portion of the deferred tax asset and resulting tax benefit that may not be realized based upon judgment of expected outcomes. |
Property and Equipment, Depreciation [Policy Text Block] | Property and Equipment Property and equipment are carried at cost less accumulated depreciation. Depreciation of property and equipment is computed using the straight-line method over the useful lives of the assets, ranging from three to thirty years. The following is a summary of property and equipment. December 31, 2017 2016 (In thousands) Property and equipment: Home office, land and buildings $ 4,139 10,051 Furniture and equipment 3,189 2,994 Electronic data processing equipment and computer software 8,042 6,914 Automobiles 91 175 Airplane — 3,356 Total property and equipment 15,461 23,490 Accumulated depreciation (8,837 ) (15,600 ) Balance at end of period $ 6,624 7,890 |
Reinsurance Recoverable [Policy Text Block] | Reinsurance Recoverable Reinsurance recoverable includes expected reimbursements for policyholder claim amounts in excess of the Company's retention, as well as profit sharing and experience refund accruals. Reinsurance recoverable is reduced for estimated uncollectible amounts, if any. Reinsurance premiums, benefits and expenses are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. The cost of reinsurance related to long duration contracts is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies. The cost of reinsurance related to short duration contracts is accounted for over the coverage period. Profit-sharing and similar adjustable provisions are accrued based on the experience of the underlying policies. |
Commitments and Contingencies Disclosure [Policy Text Block] | Contingencies An estimated loss from a contingency is accrued and charged to results of operations only if both of the following conditions are met: 1. Information available prior to the issuance of the financial statements indicates that it is probable (virtual certainty is not required) that an asset has been impaired or a liability incurred as of the date of the financial statements; and 2. The amount of the loss can be reasonably estimated. Reasonable estimation of a possible loss does not require estimating a single amount of the loss. It requires that a loss be accrued if it can be estimated within a range. If an amount within the range is a better estimate than any other amount within the range, that amount is accrued. If no amount within the range is a better estimate than any other amount, the minimum amount in the range is accrued. A gain contingency is an uncertain situation that will be resolved in the future, possibly resulting in a gain. We do not allow the recognition of a gain contingency prior to settlement of the underlying event. If we were to have a material gain contingency, we would disclose it in the notes to the consolidated financial statements. |
Cash and Cash Equivalents [Policy Text Block] | Cash Equivalents The Company considers cash equivalents as all securities whose duration does not exceed 90 days at the date of acquisition. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from these estimates. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain amounts presented in prior years have been reclassified to conform to the current presentation. No individual amounts were material. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Deferred Policy Acquisition Costs [Table Text Block] | The components of deferred acquisition costs from year to year are summarized as follows: For the Years Ended December 31, 2017 2016 2015 (In thousands) Balance at beginning of period $ 167,790 163,692 155,859 Capitalized 29,120 32,732 31,104 Amortized (29,690 ) (28,515 ) (23,400 ) Effects of unrealized (gains) losses (157 ) (119 ) 129 Balance at end of period $ 167,063 167,790 163,692 |
Present Value of Future Insurance Profits [Table Text Block] | Cost of customer relationships acquired relative to purchased blocks of insurance is summarized as follows: For the Years Ended December 31, 2017 2016 2015 (In thousands) Balance at beginning of period $ 19,415 21,585 23,542 Acquisitions — — — Amortization (2,129 ) (2,063 ) (2,317 ) Change in effects of unrealized (gains) losses on CCRA 213 (107 ) 360 Balance at end of period $ 17,499 19,415 21,585 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated amortization of cost of customer relationship acquired in each of the next five years and thereafter is as follows. Actual future amortization will differ from these estimates due to variances from estimated future withdrawal assumptions. Amount (In thousands) Year: 2018 $ 1,619 2019 1,424 2020 1,289 2021 1,168 2022 1,060 Thereafter 11,285 17,845 Effects of unrealized (gains) losses on CCRA (346 ) Total $ 17,499 |
Schedule of Goodwill [Table Text Block] | Goodwill is summarized as follows: For the Years Ended December 31, 2017 2016 2015 (In thousands) Balance at January 1, $ 17,255 17,255 17,255 Acquisition — — — Adjustments — — — Impairment (4,631 ) — — Balance at December 31, $ 12,624 17,255 17,255 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of basic and diluted earnings per share. Years Ended December 31, 2017 2016 2015 (In thousands, except per share amounts) Basic and diluted earnings per share: Numerator: Net income (loss) $ (38,127 ) 1,969 (3,143 ) Net income (loss) allocated to Class A common stock $ (37,742 ) 1,949 (3,112 ) Net income (loss) allocated to Class B common stock (385 ) 20 (31 ) Net income (loss) $ (38,127 ) 1,969 (3,143 ) Denominator: Weighted average shares of Class A outstanding - basic and diluted 49,080 49,080 49,080 Weighted average shares of Class B outstanding - basic and diluted 1,002 1,002 1,002 Total weighted average shares outstanding - basic and diluted 50,082 50,082 50,082 Basic and diluted earnings (losses) per share of Class A common stock $ (0.77 ) 0.04 (0.06 ) Basic and diluted earnings (losses) per share of Class B common stock (0.38 ) 0.02 (0.03 ) |
Property, Plant and Equipment [Table Text Block] | The following is a summary of property and equipment. December 31, 2017 2016 (In thousands) Property and equipment: Home office, land and buildings $ 4,139 10,051 Furniture and equipment 3,189 2,994 Electronic data processing equipment and computer software 8,042 6,914 Automobiles 91 175 Airplane — 3,356 Total property and equipment 15,461 23,490 Accumulated depreciation (8,837 ) (15,600 ) Balance at end of period $ 6,624 7,890 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments Including Short Term And Cash And Cash Equivalents [Abstract] | |
investments Including Short Term And Cash And Cash Equivalents [Table Text Block] | December 31, 2017 December 31, 2016 Carrying Value % of Total Carrying Value Carrying Value % of Total Carrying Value (In thousands, except for %) Fixed maturity securities $ 1,208,570 89.3 $ 1,128,672 89.7 Equity securities 16,164 1.2 18,159 1.6 Mortgage loans 195 — 232 — Policy loans 73,735 5.5 66,672 5.3 Real estate and other long-term investments 7,452 0.6 7,896 0.6 Short-term investments — — 508 — Cash and cash equivalents 46,064 3.4 35,510 2.8 Total cash, cash equivalents and investments $ 1,352,180 100.0 $ 1,257,649 100.0 |
Unrealized Gain (Loss) on Investments [Abstract] | |
Unrealized Gain (Loss) on Investments [Table Text Block] | The cost, gross unrealized gains and losses and fair value of investments in fixed maturities and equity securities, as of December 31, 2017 and 2016 , are as follows. December 31, 2017 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Fixed maturities: Available-for-sale securities: U.S. Treasury securities $ 9,860 1,948 — 11,808 U.S. Government-sponsored enterprises 3,570 926 — 4,496 States and political subdivisions 550,536 18,507 1,540 567,503 Foreign governments 103 18 — 121 Corporate 370,043 20,212 1,552 388,703 Residential mortgage-backed 1,865 118 5 1,978 Total available-for-sale securities 935,977 41,729 3,097 974,609 Held-to-maturity securities: States and political subdivisions 213,054 7,585 629 220,010 Corporate 20,907 1,118 658 21,367 Total held-to-maturity securities 233,961 8,703 1,287 241,377 Total fixed maturity securities $ 1,169,938 50,432 4,384 1,215,986 Equity securities: Stock mutual funds $ 2,867 350 — 3,217 Bond mutual funds 11,880 487 — 12,367 Common stock 22 2 — 24 Redeemable preferred stock 520 42 6 556 Total equity securities $ 15,289 881 6 16,164 December 31, 2016 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Fixed maturities: Available-for-sale securities: U.S. Treasury securities $ 9,929 2,261 — 12,190 U.S. Government-sponsored enterprises 7,639 863 — 8,502 States and political subdivisions 563,279 15,017 5,022 573,274 Foreign governments 103 23 — 126 Corporate 277,226 12,095 4,222 285,099 Commercial mortgage-backed 50 1 — 51 Residential mortgage-backed 2,247 181 2 2,426 Total available-for-sale securities 860,473 30,441 9,246 881,668 Held-to-maturity securities: U.S. Government-sponsored enterprises 2,003 28 — 2,031 States and political subdivisions 223,966 6,916 1,599 229,283 Corporate 21,035 888 692 21,231 Total held-to-maturity securities 247,004 7,832 2,291 252,545 Total fixed maturity securities $ 1,107,477 38,273 11,537 1,134,213 Equity securities: Stock mutual funds $ 2,867 79 — 2,946 Bond mutual funds 14,040 265 108 14,197 Common stock 39 3 17 25 Redeemable preferred stock 819 174 2 991 Total equity securities $ 17,765 521 127 18,159 |
Unrealized Continuous Losses on Investments [Abstract] | |
Schedule of Unrealized Loss on Investments [Table Text Block] | For fixed maturity and equity security investments that have unrealized losses as of December 31, 2017 , the cost, gross unrealized losses that have been in a continuous unrealized loss position for less than 12 months, gross unrealized losses that have been in a continuous unrealized loss position for 12 months or longer and fair value are as follows. December 31, 2017 Less than 12 months Greater than 12 months Total Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses # of Securities (In thousands, except for # of securities) Fixed maturities: Available-for-sale securities: States and political subdivisions $ 49,408 312 46 47,233 1,228 46 96,641 1,540 92 Corporate 61,071 732 39 7,651 820 10 68,722 1,552 49 Residential mortgage-backed 132 3 4 157 2 4 289 5 8 Total available-for-sale securities 110,611 1,047 89 55,041 2,050 60 165,652 3,097 149 Held-to-maturity securities: States and political subdivisions 14,178 45 15 7,460 584 14 21,638 629 29 Corporate — — — 2,169 658 2 2,169 658 2 Total held-to-maturity securities 14,178 45 15 9,629 1,242 16 23,807 1,287 31 Total fixed maturities $ 124,789 1,092 104 64,670 3,292 76 189,459 4,384 180 Equity securities: Redeemable preferred stock $ 95 6 1 — — — 95 6 1 Total equities $ 95 6 1 — — — 95 6 1 The available-for-sale fixed maturities in a gross unrealized loss position for more than 12 months is primarily related to rises in interest rates which results in lower market prices on fixed maturity securities that have lower coupons than the current market rate. This is interest rate risk and is not a signal of impairment. Management has completed its assessment of other-than-temporary impairment of these securities. Based on our evaluation of the credit worthiness of the issuers and because we do not intend to sell the investments, nor is it likely that we would be required to sell these investments before recovery of their amortized cost bases, which may be maturity, none of the unrealized losses are considered to be other-than-temporary. We monitor all debt and equity securities on an on-going basis relative to changes in credit ratings, market prices, earnings trends and financial performance, in addition to specific region or industry reviews. Our impairment review, in accordance with current guidance, is performed by the Company at each reporting date and management uses its best judgment to decide if impairment is other-than-temporary. We determine other-than-temporary impairment by reviewing relevant evidence related to the specific security issuer, as well as our intent to sell the security or whether we more likely than not will be required to sell the security before its anticipated recovery. All securities with a market price below par were segregated and reviewed as of December 31, 2017 based upon the items above for impairment. For fixed maturity and equity security investments that have unrealized losses as of December 31, 2016 , the cost, gross unrealized losses that have been in a continuous unrealized loss position for less than 12 months, gross unrealized losses that have been in a continuous unrealized loss position for 12 months or longer and fair value are as follows. December 31, 2016 Less than 12 months Greater than 12 months Total Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses # of Securities (In thousands, except for # of securities) Fixed maturities: Available-for-sale securities: States and political subdivisions $ 202,788 3,513 184 8,018 1,509 8 210,806 5,022 192 Corporate 91,527 3,578 70 6,102 644 8 97,629 4,222 78 Residential mortgage-backed 116 1 4 105 1 2 221 2 6 Total available-for-sale securities 294,431 7,092 258 14,225 2,154 18 308,656 9,246 276 Held-to-maturity securities: States and political subdivisions 43,659 1,562 47 509 37 1 44,168 1,599 48 Corporate 3,587 12 3 2,171 680 2 5,758 692 5 Total held-to-maturity securities 47,246 1,574 50 2,680 717 3 49,926 2,291 53 Total fixed maturities $ 341,677 8,666 308 16,905 2,871 21 358,582 11,537 329 Equity securities: Bond mutual funds $ 10,160 108 2 — — — 10,160 108 2 Redeemable preferred stock 201 2 2 — — — 201 2 2 Common stocks — — — — 17 1 — 17 1 Total equities $ 10,361 110 4 — 17 1 10,361 127 5 |
Schedule of Fixed Maturities [Abstract] | |
Investments Classified by Contractual Maturity Date [Table Text Block] | The amortized cost and fair value of fixed maturities at December 31, 2017 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date have been reflected based upon the final stated maturity. Cost or Amortized Cost Fair Value (In thousands) Available-for-sale securities: Due in one year or less $ 44,805 45,049 Due after one year through five years 101,337 104,873 Due after five years through ten years 123,319 131,125 Due after ten years 666,516 693,562 Total available-for-sale securities 935,977 974,609 Held-to-maturity securities: Due in one year or less 19,025 19,123 Due after one year through five years 46,497 48,014 Due after five years through ten years 46,502 48,436 Due after ten years 121,937 125,804 Total held-to-maturity securities 233,961 241,377 Total fixed maturities $ 1,169,938 1,215,986 |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | |
Schedule of Realized Gain (Loss) [Table Text Block] | Proceeds and gross realized gains and losses from sales of fixed maturities available-for-sale for 2017 , 2016 and 2015 are summarized as follows: Years ended December 31, 2017 2016 2015 (In thousands) Proceeds $ 1,077 20,638 — Gross realized gains $ 19 1,487 — Gross realized losses $ 16 — — In 2017 , SPLIC sold one bond from the available for sale portfolio for cash flow purposes and SPFIC sold three bonds. In 2016, SPLIC sold eleven bonds from their available-for-sale portfolio to generate funds to pay the extraordinary dividend to CICA. These sales produced proceeds of $20.6 million and realized gains of $1.5 million . In 2015, there were no sales of fixed maturities available-for-sale. There were no securities sold from the held-to-maturity portfolio in 2017 , 2016 or 2015 . The Company uses specific identification for securities sold. Proceeds and gross realized gains and losses from sales of equity securities for 2017 , 2016 and 2015 are summarized as follows: Years ended December 31, 2017 2016 2015 (In thousands) Proceeds $ 1,940 5,100 43,163 Gross realized gains $ — 291 634 Gross realized losses $ 30 35 599 |
Investment Income [Table Text Block] | Major categories of net investment income are summarized as follows: Years ended December 31, 2017 2016 2015 (In thousands) Investment income: Fixed maturities $ 48,164 43,637 39,570 Equity securities 708 851 2,909 Mortgage loans on real estate 11 24 36 Policy loans 5,735 5,277 4,614 Long-term investments 76 305 247 Other 68 89 53 Total investment income 54,762 50,183 47,429 Investment expenses (1,616 ) (1,623 ) (1,647 ) Net investment income $ 53,146 48,560 45,782 |
Realized Gain (Loss) on Investments [Table Text Block] | Realized investment gains (losses) are as follows: Years ended December 31, 2017 2016 2015 (In thousands) Realized investment gains (losses): Sales, calls and maturities: Fixed maturities $ (506 ) 2,024 (111 ) Equity securities 121 303 37 Real estate 1,110 — — Net realized gains (losses) 725 2,327 (74 ) Other-than-temporary impairments ("OTTI") Fixed maturities — (3,970 ) (2,998 ) Equity securities (207 ) (342 ) (2,387 ) Realized loss on OTTI (207 ) (4,312 ) (5,385 ) Net realized investment gains (losses) $ 518 (1,985 ) (5,459 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table sets forth our assets and liabilities that are measured at fair value on a recurring basis as of the date indicated. December 31, 2017 Available-for-sale investments Level 1 Level 2 Level 3 Total Fair Value (In thousands) Financial assets: Fixed maturities: U.S. Treasury and U.S. Government-sponsored enterprises $ 11,808 4,496 — 16,304 States and political subdivisions — 567,503 — 567,503 Corporate — 388,703 — 388,703 Residential mortgage-backed — 1,978 — 1,978 Foreign governments — 121 — 121 Total fixed maturities 11,808 962,801 — 974,609 Equity securities: Stock mutual funds 3,217 — — 3,217 Bond mutual funds 12,367 — — 12,367 Common stock 24 — — 24 Redeemable preferred stock 556 — — 556 Total equity securities 16,164 — — 16,164 Total financial assets $ 27,972 962,801 — 990,773 December 31, 2016 Available-for-sale investments Level 1 Level 2 Level 3 Total Fair Value (In thousands) Financial assets: Fixed maturities: U.S. Treasury and U.S. Government-sponsored enterprises $ 12,190 8,502 — 20,692 States and political subdivisions — 573,274 — 573,274 Corporate — 285,099 — 285,099 Commercial mortgage-backed — — 51 51 Residential mortgage-backed — 2,426 — 2,426 Foreign governments — 126 — 126 Total fixed maturities 12,190 869,427 51 881,668 Equity securities: Stock mutual funds 2,946 — — 2,946 Bond mutual funds 14,197 — — 14,197 Common stock 25 — — 25 Redeemable preferred stock 991 — — 991 Total equity securities 18,159 — — 18,159 Total financial assets $ 30,349 869,427 51 899,827 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table presents additional information about fixed maturity securities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value: December 31, 2017 2016 (In thousands) Beginning Balance at January 1, $ 51 145 Total realized and unrealized gains (losses) Included in net income — — Included in other comprehensive income — (4 ) Principal paydowns (51 ) (90 ) Transfer in and (out) of Level 3 — — Ending Balance at December 31, $ — 51 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The carrying amount and fair value for the financial assets and liabilities on the consolidated balance sheets at each year-end were as follows: December 31, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Financial assets: Fixed maturities, held-to-maturity $ 233,961 241,377 247,004 252,545 Mortgage loans 195 228 232 269 Policy loans 73,735 73,735 66,672 66,672 Short-term investments — — 508 508 Cash and cash equivalents 46,064 46,064 35,510 35,510 Financial liabilities: Annuities - investment contracts $ 55,035 57,575 50,952 52,173 |
Policy Liabilities and Short 30
Policy Liabilities and Short Duration Contracts (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | Years ended December 31, 2017 2016 2015 (In thousands) Policy claims payable at January 1 $ 9,538 9,653 9,560 Less: reinsurance recoverable 407 543 950 Net balance at January 1 9,131 9,110 8,610 Add claims incurred, related to: Current year 25,036 26,000 26,911 Prior years (209 ) (493 ) (197 ) 24,827 25,507 26,714 Deduct claims paid, related to: Current year 18,037 18,681 19,584 Prior years 7,678 6,805 6,630 25,715 25,486 26,214 Net balance December 31 8,243 9,131 9,110 Plus: reinsurance recoverable 367 407 543 Policy claims payable, December 31 $ 8,610 9,538 9,653 |
Schedule of Short-Duration Contractions and Claims Development | This information is presented for the last five years as these claims rarely pay out over a longer period of time. Claims data for 2013 through 2015 is supplementary information to the consolidated financial statements and is unaudited. As of December 31, 2017 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Total of Incurred-but-Not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Years ended December 31, Accident Year 2013 2014 2015 2016 2017 ($ In thousands) (Unaudited) 2013 $ 2,058 1,977 1,970 1,964 1,964 — 328 2014 1,744 1,650 1,575 1,570 — 254 2015 1,777 1,731 1,692 4 358 2016 2,071 2,096 6 531 2017 1,761 210 555 Total $ 9,083 The following table presents paid claims development as of December 31, 2017 , net of reinsurance. Claims data for 2013 through 2015 are unaudited. Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Years ended December 31, Accident Year 2013 2014 2015 2016 2017 (In thousands) (Unaudited) 2013 $ 1,751 1,964 1,964 1,964 1,964 2014 1,361 1,556 1,560 1,560 2015 1,410 1,637 1,638 2016 1,680 2,061 2017 1,359 Total $ 8,582 All outstanding liabilities before 2013, net of reinsurance $ — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 501 |
Short-duration Insurance Contracts Reconciliation of Liability | The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position is as follows. Year Ended December 31, 2017 2016 (In thousands) Net outstanding liabilities Special property $ 501 500 Other short-duration insurance lines 72 43 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance 573 543 Reinsurance recoverable on unpaid claims Special property — — Other insurance lines 261 340 Total reinsurance recoverable on unpaid claims 261 340 Insurance lines other than short duration 7,776 8,655 Total gross liability for unpaid claims and claim adjustment expenses $ 8,610 9,538 |
Schedule of Historical Claims Duration | The following is supplementary information to the consolidated financial statements about average historical claims duration as of December 31, 2017 . Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Years 1 2 3 4 5 Special Property 83.30 % 13.68 % 0.10 % — % — % |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |
Amount of reinsurance in force [Table Text Block] | Premiums, claims and surrenders assumed and ceded for all lines of business for these years are summarized as follows: Years ended December 31, 2017 2016 2015 (In thousands) Premiums from short-duration contracts: Direct $ 6,933 6,927 7,223 Assumed — — — Ceded (781 ) (828 ) (873 ) Net premiums earned 6,152 6,099 6,350 Premiums from long-duration contracts: Direct 193,778 194,147 190,114 Assumed 142 151 353 Ceded (2,352 ) (2,521 ) (2,337 ) Net premiums earned 191,568 191,777 188,130 Total premiums earned $ 197,720 197,876 194,480 Claims and surrenders assumed $ 247 237 414 Claims and surrenders ceded $ (946 ) (877 ) (1,013 ) Assumed and ceded life reinsurance activity as of December 31, 2017 and 2016 is summarized as follows: At December 31, 2017 2016 (In thousands) Aggregate assumed life insurance in force $ 5,564 22,915 Aggregate ceded life insurance in force $ (503,685 ) (522,821 ) Net life insurance in force $ 4,469,735 4,497,735 |
Stockholders' Equity and Rest32
Stockholders' Equity and Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Statutory Accounting Practices Disclosure | The table below shows the combined total of all of our insurance subsidiaries' capital and surplus and net income (loss) for life insurance operations and property insurance operations, although these amounts are not all available as dividends to Citizens, Inc., because only CICA is directly owned by Citizens, Inc. All other subsidiaries are owned by CICA. Years ended December 31, 2017 2016 Combined Statutory Stockholders' Equity (In thousands) Life insurance operations $ 28,101 28,009 Property insurance operations 7,029 6,863 Total statutory equity $ 35,130 34,872 Years ended December 31, 2017 2016 2015 Combined Statutory Net Income (Loss) (In thousands) Life insurance operations $ 4,179 11,987 (7,972 ) Property insurance operations 152 401 607 Total statutory net income (loss) $ 4,331 12,388 (7,365 ) |
Commitments and Contingencies L
Commitments and Contingencies Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | We have the following operating lease commitments as of December 31, 2017 with the payments due by the periods indicated below. Lease Commitments (In thousands) Less than 1 year $ 1,858 1 year to 3 years 2,829 3 years to 5 years 173 More than 5 years — Total $ 4,860 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Year ended December 31, 2017 Life Insurance Home Service Other Non-Insurance Operations Consolidated (In thousands) Revenues: Premiums $ 150,708 47,012 — 197,720 Net investment income 38,578 13,132 1,436 53,146 Realized investment gains (losses), net (461 ) 979 — 518 Other income 1,061 3 179 1,243 Total revenue 189,886 61,126 1,615 252,627 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 60,393 22,512 — 82,905 Increase in future policy benefit reserves 70,783 5,246 — 76,029 Policyholders' dividends 6,226 42 — 6,268 Total insurance benefits paid or provided 137,402 27,800 — 165,202 Commissions 25,760 15,564 — 41,324 Other general expenses 18,597 23,395 4,396 46,388 Capitalization of deferred policy acquisition costs (23,157 ) (5,963 ) — (29,120 ) Amortization of deferred policy acquisition costs 25,295 4,395 — 29,690 Amortization of cost of customer relationships acquired 595 1,534 — 2,129 Total benefits and expenses 184,492 66,725 4,396 255,613 Income (loss) before income tax expense $ 5,394 (5,599 ) (2,781 ) (2,986 ) Year ended December 31, 2016 Life Insurance Home Service Other Non-Insurance Enterprises Consolidated (In thousands) Revenues: Premiums $ 151,195 46,681 — 197,876 Net investment income 33,350 13,705 1,505 48,560 Realized investment losses, net (1,685 ) (300 ) — (1,985 ) Other income 882 5 68 955 Total revenue 183,742 60,091 1,573 245,406 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 58,440 22,927 — 81,367 Increase in future policy benefit reserves 71,373 4,508 — 75,881 Policyholders' dividends 6,774 58 — 6,832 Total insurance benefits paid or provided 136,587 27,493 — 164,080 Commissions 29,235 15,406 — 44,641 Other general expenses 14,284 15,252 3,820 33,356 Capitalization of deferred policy acquisition costs (26,742 ) (5,990 ) — (32,732 ) Amortization of deferred policy acquisition costs 24,428 4,087 — 28,515 Amortization of cost of customer relationships acquired 559 1,504 — 2,063 Total benefits and expenses 178,351 57,752 3,820 239,923 Income (loss) before income tax expense $ 5,391 2,339 (2,247 ) 5,483 Year ended December 31, 2015 Life Insurance Home Service Other Non-Insurance Enterprises Consolidated (In thousands) Revenues: Premiums $ 147,832 46,648 — 194,480 Net investment income 30,206 14,063 1,513 45,782 Realized investment losses, net (3,873 ) (1,586 ) — (5,459 ) Other income 1,008 86 371 1,465 Total revenue 175,173 59,211 1,884 236,268 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 55,912 22,967 — 78,879 Increase in future policy benefit reserves 73,259 3,801 — 77,060 Policyholders' dividends 10,695 52 — 10,747 Total insurance benefits paid or provided 139,866 26,820 — 166,686 Commissions 28,336 15,289 — 43,625 Other general expenses 16,345 13,349 3,593 33,287 Capitalization of deferred policy acquisition costs (25,268 ) (5,836 ) — (31,104 ) Amortization of deferred policy acquisition costs 20,025 3,375 — 23,400 Amortization of cost of customer relationships acquired 641 1,676 — 2,317 Total benefits and expenses 179,945 54,673 3,593 238,211 Income (loss) before income tax expense $ (4,772 ) 4,538 (1,709 ) (1,943 ) |
Assets [Table Text Block] | The table below summarizes assets by segment. December 31, 2017 2016 (In thousands) Assets: Life Insurance $ 1,191,051 1,130,288 Home Service Insurance 377,578 374,986 Other Non-Insurance Operations 75,824 78,394 Total assets $ 1,644,453 1,583,668 |
Earned premium income by category [Table Text Block] | Major categories of earned premiums are summarized as follows: Years ended December 31, 2017 2016 2015 (In thousands) Premium income: Ordinary life $ 191,342 191,226 187,479 Group life — 28 207 Accident and health 1,392 1,546 1,599 Property 4,986 5,076 5,195 Total premium income $ 197,720 197,876 194,480 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Geographic Information The following table sets forth the Company's annual total of earned premiums from geographic area for the years indicated: Years ended December 31, 2017 2016 2015 (In thousands) Area: United States $ 54,737 54,430 54,753 Colombia 29,200 29,643 27,589 Venezuela 27,997 31,107 31,948 Taiwan 19,535 18,590 18,031 Ecuador 16,440 15,456 15,527 Brazil 11,088 9,856 8,960 Other foreign countries 41,714 41,992 40,529 Net reinsurance (2,991 ) (3,198 ) (2,857 ) Total $ 197,720 197,876 194,480 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
Tax Valuation Allowance [Abstract] | ||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of federal income tax expense computed by applying the federal income tax rate of 35% in 2017 , 2016 and 2015 to income (loss) before federal income tax expense is as follows: Years Ended December 31, 2017 2016 2015 Amount % Amount % Amount % (In thousands) Expected tax expense (benefit) $ (1,045 ) 35.0 % $ 1,919 35.0 % $ (680 ) 35.0 % Release of valuation allowance previously held in other comprehensive income — — — — (42 ) 2.2 Taxable stock sales — — 263 4.8 — — Tax-exempt interest and dividends-received deduction (360 ) 12.1 (553 ) (10.1 ) (746 ) 38.4 Adjustment of prior year taxes 68 (2.3 ) 29 0.5 (317 ) 16.3 Effect of graduated rates (140 ) 4.7 (57 ) (1.0 ) (71 ) 3.7 Effect of uncertain tax position (355 ) 11.9 1,672 30.5 1,890 (97.3 ) Nondeductible costs to remediate tax compliance issue (384 ) 12.9 241 4.4 1,152 (59.3 ) Tax reform re-measurement 35,718 (1,196.2 ) — — — — Goodwill impairment 1,621 (54.3 ) — — — — Other 18 (0.7 ) — — 14 (0.8 ) Total income tax expense $ 35,141 (1,176.9 )% $ 3,514 64.1 % $ 1,200 (61.8 )% | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income tax expense consists of: Years Ended December 31, 2017 2016 2015 (In thousands) Current $ 14,454 13,348 (2,315 ) Deferred 20,687 (9,834 ) 3,515 Total income tax expense $ 35,141 3,514 1,200 | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of deferred federal income taxes are as follows: December 31, 2017 2016 (In thousands) Deferred tax assets: Future policy benefit reserves $ 78,372 123,101 Net operating and capital loss carryforwards 485 — Accrued expenses 65 104 Investments 6,002 6,837 State income tax credits — 119 Other 276 56 Total gross deferred tax assets 85,200 130,217 Deferred tax liabilities: Deferred policy acquisition costs, cost of customer relationships acquired and intangible assets (25,518 ) (44,709 ) Unrealized gains on investments available-for-sale (8,297 ) (7,556 ) Accrued policyholder dividends (441 ) (815 ) Other (147 ) (268 ) Total gross deferred tax liabilities (34,403 ) (53,348 ) Net deferred tax asset $ 50,797 76,869 | |
Change in deferred tax liability [Table Text Block] | A summary of the changes in the components of deferred federal and state income taxes is as follows: December 31, 2017 2016 (In thousands) Deferred federal and state income taxes: Balance January 1, $ 76,869 67,145 Deferred tax benefit (20,687 ) 9,834 Investments available-for-sale (5,570 ) (128 ) Effects of unrealized gains on DAC, CCRA and reserves (103 ) 18 Reclassification of MGLIC NOL from current taxes payable 288 — Balance December 31, $ 50,797 76,869 | |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | A reconciliation of unrecognized tax benefits is as follows: Years ended December 31, 2017 2016 2015 (In thousands) Balance at January 1, $ 85,762 78,079 81,459 Additions based on tax positions related to the current year 7,384 3,546 3,608 Additions for tax positions of prior years 2,685 4,706 1,570 Reductions for tax positions of prior years — (569 ) (8,558 ) Balance December 31, $ 95,831 85,762 78,079 |
Other Comprehensive Income (L36
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Other Comprehensive Income (Loss) | The changes in the components of other comprehensive income (loss) are reported net of the effects of income taxes of 31.1% in 2017 due to the reduced statutory tax rate under the new tax act, and 35% in 2016 and 2015 , as indicated below. Amount Tax Effect Amount (In thousands) Year ended December 31, 2017 Unrealized gains (losses) on securities: Unrealized holding gains (losses) arising during the period $ 17,374 (5,379 ) 11,995 Reclassification adjustment for (gains) losses included in net income 546 (191 ) 355 Effects on DAC and CCRA 292 (102 ) 190 Other comprehensive income (loss) $ 18,212 (5,672 ) 12,540 Year ended December 31, 2016 Unrealized gains (losses) on securities: Unrealized holding gains (losses) arising during the period $ (1,608 ) 563 (1,045 ) Reclassification adjustment for (gains) losses included in net income 1,974 (691 ) 1,283 Effects on DAC and CCRA (51 ) 18 (33 ) Other comprehensive income (loss) $ 315 (110 ) 205 Year ended December 31, 2015 Unrealized gains (losses) on securities: Unrealized holding gains (losses) arising during the period $ (24,545 ) 8,591 (15,954 ) Reclassification adjustment for (gains) losses included in net income 5,415 (1,895 ) 3,520 Effects on DAC and CCRA 328 (115 ) 213 Change in tax valuation allowance — (42 ) (42 ) Other comprehensive income (loss) $ (18,802 ) 6,539 (12,263 ) |
Quarterly Financial Informati37
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information (Unaudited) [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | The following table contains selected unaudited financial data for each quarter. Fourth Quarter (a) Third Quarter Second Quarter First Quarter (In thousands, except per share amounts) 2017 Revenues $ 67,863 64,331 60,852 59,581 Benefits and expenses 76,998 61,221 58,756 58,638 Federal income tax expense (benefit) 35,069 (339 ) 1,524 (1,113 ) Net income (loss) (44,204 ) 3,449 572 2,056 Net income (loss) available to common shareholders (44,204 ) 3,449 572 2,056 Basic & Diluted earnings (losses) per share of Class A common stock (0.89 ) 0.07 0.01 0.04 Basic & Diluted earnings (losses) per share of Class B common stock (0.44 ) 0.03 0.01 0.02 (a) Federal income tax expense (benefit), Net income (loss) and Basic and Diluted earnings (loss) per share reflect the effects of the new tax reform re-measurement of $35.7 million . Net income (loss) and Basic and Diluted earnings (loss) per share also reflect the effects of the goodwill impairment of $4.6 million . For more information, please refer to Note 1 and Note 9. Fourth Third Second First (In thousands, except per share amounts) 2016 Revenues $ 67,903 61,741 61,237 54,525 Benefits and expenses 68,277 57,134 58,678 55,834 Federal income tax expense (benefit) (490 ) 1,845 1,077 1,082 Net income (loss) 116 2,762 1,482 (2,391 ) Net income (loss) available to common shareholders 116 2,762 1,482 (2,391 ) Basic & Diluted earnings (losses) per share of Class A common stock — 0.06 0.03 (0.05 ) Basic & Diluted earnings (losses) per share of Class B common stock — 0.03 0.01 (0.02 ) |
Correction of Immaterial Erro38
Correction of Immaterial Errors and Reclassificaiton of Certain Amounts (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Correction of Immaterial Errors and Reclassifications of Certain Amounts [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The line item effects of these immaterial error corrections are detailed below. 2015 As Reported Restatement As Adjusted (In thousands) Consolidated Statements of Financial Position Deferred policy acquisition costs $ 165,362 (1,670 ) 163,692 Deferred tax asset 68,764 (1,619 ) 67,145 Total assets 1,484,040 (3,289 ) 1,480,751 Liabilities: Future policy benefit reserves: Life insurance $ 995,972 (8,599 ) 987,373 Total policy liabilities 1,140,879 (8,599 ) 1,132,280 Current federal income tax payable 71,225 757 71,982 Other liabilities 24,205 144 24,349 Total liabilities 1,241,523 (7,698 ) 1,233,825 Accumulated deficit (22,626 ) 4,409 (18,217 ) Total stockholders' equity 242,517 4,409 246,926 Total liabilities and stockholders' equity 1,484,040 (3,289 ) 1,480,751 Consolidated Statements of Operations and Comprehensive Income (Loss) Increase in future policy benefit reserves $ 77,929 (869 ) 77,060 Total insurance benefits paid or provided 167,555 (869 ) 166,686 Other general expenses 33,143 144 33,287 Amortization of deferred policy acquisition costs 23,339 61 23,400 Total benefits and expenses 238,875 (664 ) 238,211 Income (loss) before federal income tax expense (2,607 ) 664 (1,943 ) Federal income tax expense 972 228 1,200 Net income (loss) (3,579 ) 436 (3,143 ) Basic and diluted earnings (losses) per share of Class A common stock (0.07 ) 0.01 (0.06 ) Basic and diluted earnings (losses) per share of Class B common stock (0.04 ) 0.01 (0.03 ) Comprehensive income (loss) (15,842 ) 436 (15,406 ) Consolidated Statements of Stockholders' Equity Balance at December 31, 2014 $ 258,359 3,973 262,332 Net income (loss) (3,579 ) 436 (3,143 ) Balance at December 31, 2015 242,517 4,409 246,926 Consolidated Statements of Cash Flows Net income (loss) $ (3,579 ) 436 (3,143 ) Net deferred policy acquisition costs (7,765 ) 61 (7,704 ) Deferred federal income tax benefit 4,043 (528 ) 3,515 Future policy benefit reserves 77,770 (869 ) 76,901 Commission payable and other liabilities 473 144 617 Federal income tax payable (7,593 ) 756 (6,837 ) Net cash provided by operating activities 87,153 — 87,153 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies Financial Statements (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Statutory deposit with state insurance departments | $ 9.8 | $ 10 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies Deferred Acquisition Costs and Cost of Customer Relationships Acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred Policy Acquisition Costs and Cost of Customer Relationship Acquired [Abstract] | |||
First year commissions, percentage of capitalized deferred acquisition costs | 95.00% | ||
New business expense, percentage of capitalized deferred acquisition costs | 5.00% | ||
Number of years of available premiums | 50 years | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance at beginning of period | $ 167,790 | $ 163,692 | $ 155,859 |
Capitalization of deferred policy acquisition costs | 29,120 | 32,732 | 31,104 |
Amortization of deferred policy acquisition costs | (29,690) | (28,515) | (23,400) |
Effect of Unrealized (gains) losses | (157) | (119) | 129 |
Balance at end of period | $ 167,063 | $ 167,790 | $ 163,692 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies Cost of Customer Relationships Acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Number of years of available premiums | 50 years | |||
Total | $ 17,499 | $ 19,415 | $ 21,585 | $ 23,542 |
Acquisition | 0 | 0 | 0 | |
Amortization | (2,129) | (2,063) | (2,317) | |
Change in effects of unrealized (gains) losses on CCRA | $ 213 | $ (107) | $ 360 | |
Number of Years-Cost of Customer Relationship Acquired Amortization | 5 years | |||
2,018 | $ 1,619 | |||
2,019 | 1,424 | |||
2,020 | 1,289 | |||
2,021 | 1,168 | |||
2,022 | 1,060 | |||
Thereafter | 11,285 | |||
Net | 17,845 | |||
Effects of unrealized (gains) losses on CCRA | $ (346) | |||
Minimum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Annuity Credit Rate Associated with Amortization Method of Present Value of Future Insurance Profits | 2.50% | |||
Interest Accrual Rate Associated with Amortization Method of Present Value of Future Insurance Profits | 2.50% | |||
Maximum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Annuity Credit Rate Associated with Amortization Method of Present Value of Future Insurance Profits | 5.50% | |||
Interest Accrual Rate Associated with Amortization Method of Present Value of Future Insurance Profits | 6.00% | |||
Customer Relationships [Member] | Minimum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value Inputs, Discount Rate | 3.70% | |||
Customer Relationships [Member] | Maximum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value Inputs, Discount Rate | 8.50% |
Summary of Significant Accoun42
Summary of Significant Accounting Policies Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | |||
Balance at January 1, | $ 17,255 | $ 17,255 | $ 17,255 |
Acquisition | 0 | 0 | 0 |
Adjustments | $ 0 | 0 | 0 |
Impairment | $ 0 | 0 | |
Fair Value Inputs, Long-term Revenue Growth Rate | 4.95% | 5.85% | |
Balance at December 31, | $ 12,624 | $ 17,255 | 17,255 |
Life Insurance Segment [Member] | |||
Goodwill [Roll Forward] | |||
Balance at December 31, | 12,600 | ||
Home Service Insurance Segment [Member] | |||
Goodwill [Roll Forward] | |||
Impairment | $ (4,631) | $ 0 | $ 0 |
Goodwill [Member] | |||
Goodwill [Roll Forward] | |||
Fair Value Inputs, Discount Rate | 12.00% | 10.00% |
Summary of Significant Accoun43
Summary of Significant Accounting Policies Participating Policies (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted Average Discount Rates [Line Items] | ||
Participating Policies Additional Income Allocated, Percent | 62.50% | 62.20% |
Minimum [Member] | ||
Weighted Average Discount Rates [Line Items] | ||
Weighted Average Discount Rate, Percent | 3.20% | |
Number of Years, Future Scaling Rate | 1 | |
Minimum [Member] | One Year [Domain] [Domain] | ||
Weighted Average Discount Rates [Line Items] | ||
Weighted Average Discount Rate Percent, Future Scaling Rate | 3.19% | |
Maximum [Member] | ||
Weighted Average Discount Rates [Line Items] | ||
Weighted Average Discount Rate, Percent | 9.00% | |
Number of Years, Future Scaling Rate | 20 | |
Maximum [Member] | Fifteen Years and After [Member] | ||
Weighted Average Discount Rates [Line Items] | ||
Weighted Average Discount Rate Percent, Future Scaling Rate | 4.45% |
Summary of Significant Accoun44
Summary of Significant Accounting Policies Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income (loss) | $ (44,204) | $ 3,449 | $ 572 | $ 2,056 | $ 116 | $ 2,762 | $ 1,482 | $ (2,391) | $ (38,127) | $ 1,969 | $ (3,143) |
Net Income Allocated to Class A Stock | (37,742) | 1,949 | (3,112) | ||||||||
Net Income Allocated to Class B Stock | $ (385) | $ 20 | $ (31) | ||||||||
Weighted Average Number of Shares Outstanding, Basic | 50,082 | 50,082 | 50,082 | ||||||||
Common Class A [Member] | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Weighted Average Number of Shares Outstanding, Basic | 49,080 | 49,080 | 49,080 | ||||||||
Basic and diluted earnings (losses) per share (in dollars per share) | $ (0.89) | $ 0.07 | $ 0.01 | $ 0.04 | $ 0 | $ 0.06 | $ 0.03 | $ (0.05) | $ (0.77) | $ 0.04 | $ (0.06) |
Common Class B [Member] | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 1,002 | 1,002 | 1,002 | ||||||||
Basic and diluted earnings (losses) per share (in dollars per share) | $ (0.44) | $ 0.03 | $ 0.01 | $ 0.02 | $ 0 | $ 0.03 | $ 0.01 | $ (0.02) | $ (0.38) | $ 0.02 | $ (0.03) |
Summary of Significant Accoun45
Summary of Significant Accounting Policies Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Balance Sheet Reclassification - Property | $ 1,600,000 | |
Capital Leases, Future Minimum Payments, Executory Costs | 114,000 | |
Future Operating Lease, Expense | 118,000 | |
Property, Plant and Equipment, Gross | 15,461,000 | $ 23,490,000 |
Accumulated Depreciation | (8,837,000) | (15,600,000) |
Property, Plant and Equipment, Net | 6,624,000 | 7,890,000 |
Gain on Sale of Investments | $ 99,000 | |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 30 years | |
Land, Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 4,139,000 | 10,051,000 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,189,000 | 2,994,000 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 8,042,000 | 6,914,000 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 91,000 | 175,000 |
Air Transportation Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 0 | $ 3,356,000 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies Accounting Pronouncement (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% |
Investments Cash, Cash Equivale
Investments Cash, Cash Equivalent and Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||||
Fixed maturity securities | $ 1,208,570 | $ 1,128,672 | ||
Fixed maturity securities percent | 89.30% | 89.70% | ||
Equity securities | $ 16,164 | $ 18,159 | ||
Equity securities percent | 1.20% | 1.60% | ||
Mortgage loans | $ 195 | $ 232 | ||
Mortgage loans percent | 0.00% | 0.00% | ||
Policy loans | $ 73,735 | $ 66,672 | ||
Policy loans percent | 5.50% | 5.30% | ||
Real estate and other long-term investments | $ 7,452 | $ 7,896 | ||
Real estate and other long-term investments percent | 0.60% | 0.60% | ||
Short-term investments | $ 0 | $ 508 | ||
Short-term investment percentage | 0.00% | 0.00% | ||
Cash and cash equivalents | $ 46,064 | $ 35,510 | $ 82,827 | $ 50,708 |
Cash and cash equivalents percent | 3.40% | 2.80% | ||
Total cash, cash equivalents and investments | $ 1,352,180 | $ 1,257,649 | ||
Total cash, cash equivalents and investments percent | 100.00% | 100.00% | ||
Percent of high quality fixed maturity securities | 75.20% |
Investments Gross Unrealized Ga
Investments Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | $ 935,977 | $ 860,473 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 41,729 | 30,441 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 3,097 | 9,246 |
Available-for-sale Securities | 974,609 | 881,668 |
Held-to-maturity Securities [Abstract] | ||
Fixed maturities held-to-maturity, at amortized cost | 233,961 | 247,004 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 8,703 | 7,832 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 1,287 | 2,291 |
Fixed maturities held-to-maturity, fair value | 241,377 | 252,545 |
Total Fixed maturity securities, Amortized Cost | 1,169,938 | |
Total Fixed Maturity Securities, Fair Value | 1,215,986 | |
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale equity securities, amortized cost basis | 15,289 | 17,765 |
US Treasury Securities [Member] | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 9,860 | 9,929 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 1,948 | 2,261 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Available-for-sale Securities | 11,808 | 12,190 |
US Government Agencies Debt Securities [Member] | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 3,570 | 7,639 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 926 | 863 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Available-for-sale Securities | 4,496 | 8,502 |
Held-to-maturity Securities [Abstract] | ||
Fixed maturities held-to-maturity, at amortized cost | 2,003 | |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 28 | |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 0 | |
Fixed maturities held-to-maturity, fair value | 2,031 | |
US States and Political Subdivisions Debt Securities [Member] | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 550,536 | 563,279 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 18,507 | 15,017 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1,540 | 5,022 |
Available-for-sale Securities | 567,503 | 573,274 |
Held-to-maturity Securities [Abstract] | ||
Fixed maturities held-to-maturity, at amortized cost | 213,054 | 223,966 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 7,585 | 6,916 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 629 | 1,599 |
Fixed maturities held-to-maturity, fair value | 220,010 | 229,283 |
Foreign Government Debt Securities [Member] | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 103 | 103 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 18 | 23 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Available-for-sale Securities | 121 | 126 |
Corporate Debt Securities [Member] | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 370,043 | 277,226 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 20,212 | 12,095 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1,552 | 4,222 |
Available-for-sale Securities | 388,703 | 285,099 |
Held-to-maturity Securities [Abstract] | ||
Fixed maturities held-to-maturity, at amortized cost | 20,907 | 21,035 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 1,118 | 888 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 658 | 692 |
Fixed maturities held-to-maturity, fair value | 21,367 | 21,231 |
Commercial Mortgage Backed Securities [Member] | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 50 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 1 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | |
Available-for-sale Securities | 51 | |
Residential Mortgage Backed Securities [Member] | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 1,865 | 2,247 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 118 | 181 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 5 | 2 |
Available-for-sale Securities | 1,978 | 2,426 |
Debt Securities [Member] | ||
Held-to-maturity Securities [Abstract] | ||
Total Fixed maturity securities, Amortized Cost | 1,169,938 | 1,107,477 |
Debt Securities, Accumulative Gross Unrealized and Unrecognized Gains | 50,432 | 38,273 |
Debt Securities, Accumulated Gross Unrealized and Unrecognized Losses | 4,384 | 11,537 |
Total Fixed Maturity Securities, Fair Value | 1,215,986 | 1,134,213 |
Stock Mutual Funds [Member] | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale Securities | 3,217 | 2,946 |
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale equity securities, amortized cost basis | 2,867 | 2,867 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 350 | 79 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Bond Mutual Funds [Member] | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale Securities | 12,367 | 14,197 |
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale equity securities, amortized cost basis | 11,880 | 14,040 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 487 | 265 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 108 |
Common Stock [Member] | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale Securities | 24 | 25 |
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale equity securities, amortized cost basis | 22 | 39 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 2 | 3 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 17 |
Preferred Stock [Member] | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale Securities | 556 | 991 |
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale equity securities, amortized cost basis | 520 | 819 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 42 | 174 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | 6 | 2 |
Equity Securities [Member] | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale Securities | 16,164 | 18,159 |
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale equity securities, amortized cost basis | 15,289 | 17,765 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 881 | 521 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | $ 6 | $ 127 |
Investments Unrealized Losses L
Investments Unrealized Losses Less Than and Greater Than 12 Months (Details) $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities In Continuous Loss Less Than 12 Months Fair Value | $ 124,789 | $ 341,677 |
Debt Securities Continuous Loss Position Less Than 12 Months Unrealized Losses | $ 1,092 | $ 8,666 |
Number of Debt Securities In Continuous Loss Less Than 12 Months | 104 | 308 |
Debt Securities In Continuous Loss Position 12 Months Or Longer, Fair Value | $ 64,670 | $ 16,905 |
Debt Securities In Continuous Loss Position 12 Months Or Longer, Unrealized Losses | $ 3,292 | $ 2,871 |
Number of Debt Securities In Continuous Loss Position 12 Months or Longer | 76 | 21 |
Debt Securities In Continuous Loss Position, Aggregate Fair Value | $ 189,459 | $ 358,582 |
Debt Securities In Continuous Loss Position, Aggregate Unrealized Losses | $ 4,384 | $ 11,537 |
Number of Debt Securities In Continuous Loss Position, Aggregate | 180 | 329 |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 49,408 | $ 202,788 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 312 | $ 3,513 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 46 | 184 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 47,233 | $ 8,018 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 1,228 | $ 1,509 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 46 | 8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 96,641 | $ 210,806 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 1,540 | $ 5,022 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 92 | 192 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 14,178 | $ 43,659 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 45 | $ 1,562 |
Number of Held to Maturity Securities In Continuous Loss Position Less Than 12 Months | 15 | 47 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 7,460 | $ 509 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 584 | $ 37 |
Number of Held to Maturity Securities In Continuous Loss Position 12 Months or Greater | 14 | 1 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | $ 21,638 | $ 44,168 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 629 | $ 1,599 |
Number of Held to Maturity Securities In Continuous Loss Position Aggregate | 29 | 48 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 61,071 | $ 91,527 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 732 | $ 3,578 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 39 | 70 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 7,651 | $ 6,102 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 820 | $ 644 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 10 | 8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 68,722 | $ 97,629 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 1,552 | $ 4,222 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 49 | 78 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 0 | $ 3,587 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 0 | $ 12 |
Number of Held to Maturity Securities In Continuous Loss Position Less Than 12 Months | 0 | 3 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 2,169 | $ 2,171 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 658 | $ 680 |
Number of Held to Maturity Securities In Continuous Loss Position 12 Months or Greater | 2 | 2 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | $ 2,169 | $ 5,758 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 658 | $ 692 |
Number of Held to Maturity Securities In Continuous Loss Position Aggregate | 2 | 5 |
Residential Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 132 | $ 116 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 3 | $ 1 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 4 | 4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 157 | $ 105 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 2 | $ 1 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 4 | 2 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 289 | $ 221 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 5 | $ 2 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 8 | 6 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 110,611 | $ 294,431 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 1,047 | $ 7,092 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 89 | 258 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 55,041 | $ 14,225 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 2,050 | $ 2,154 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 60 | 18 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 165,652 | $ 308,656 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 3,097 | $ 9,246 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 149 | 276 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 14,178 | $ 47,246 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 45 | $ 1,574 |
Number of Held to Maturity Securities In Continuous Loss Position Less Than 12 Months | 15 | 50 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 9,629 | $ 2,680 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 1,242 | $ 717 |
Number of Held to Maturity Securities In Continuous Loss Position 12 Months or Greater | 16 | 3 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | $ 23,807 | $ 49,926 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 1,287 | $ 2,291 |
Number of Held to Maturity Securities In Continuous Loss Position Aggregate | 31 | 53 |
Bond Mutual Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 10,160 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 108 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 2 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 0 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 10,160 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 108 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 2 | |
Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 95 | $ 201 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 6 | $ 2 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 1 | 2 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 0 | $ 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 0 | $ 0 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 95 | $ 201 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 6 | $ 2 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 1 | 2 |
Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 0 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 17 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 1 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 17 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 1 | |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 95 | $ 10,361 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 6 | $ 110 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 1 | 4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 0 | $ 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 0 | $ 17 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 0 | 1 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 95 | $ 10,361 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 6 | $ 127 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 1 | 5 |
Investments Maturity Distributi
Investments Maturity Distribution of Debt Securities (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Available-for-sale Securities, Debt Maturities, within One Year, Amortized Cost Basis | $ 44,805 | |
Available-for-sale Securities, Debt Maturities, after One through Five Years, Amortized Cost Basis | 101,337 | |
Available-for-sale Securities, Debt Maturities, after Five through Ten years, Amortized Cost Basis | 123,319 | |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 666,516 | |
Available-for-sale Debt Securities, Amortized Cost Basis | 935,977 | $ 860,473 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Available-for-sale Securities, Debt Maturities, within One Year, Fair Value | 45,049 | |
Available-for-sale Securities, Debt Maturities, after One through Five Years, Fair Value | 104,873 | |
Available-for-sale Securities, Debt Maturities, after Five through Ten Years, Fair Value | 131,125 | |
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | 693,562 | |
Available for Sale Securities, Total | 974,609 | |
Held-to-maturity Securities, Debt Maturities, Net Carrying Amount [Abstract] | ||
Held-to-maturity Securities, Debt Maturities, within One Year, Net Carrying Amount | 19,025 | |
Held-to-maturity Securities, Debt Maturities, after One through Five Years, Net Carrying Amount | 46,497 | |
Held-to-maturity Securities, Debt Maturities, after Five through Ten Years, Net Carrying Amount | 46,502 | |
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount | 121,937 | |
Fixed maturities held-to-maturity, at amortized cost | 233,961 | 247,004 |
Held-to-maturity Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Held-to-maturity Securities, Debt Maturities, within One Year, Fair Value | 19,123 | |
Held-to-maturity Securities, Debt Maturities, after One through Five Years, Fair Value | 48,014 | |
Held-to-maturity Securities, Debt Maturities, after Five through Ten Years, Fair Value | 48,436 | |
Held-to-maturity Securities, Debt Maturities, after Ten Years, Fair Value | 125,804 | |
Held-to-maturity Securities, Fair Value | 241,377 | $ 252,545 |
Total Fixed maturity securities, Amortized Cost | 1,169,938 | |
Total Fixed Maturity Securities, Fair Value | $ 1,215,986 | |
Number of investments exceeding 10% of stocksholder's equity | 0 | |
Number of Non-Income Producing Fixed Maturity Securities | 0 |
Investments Net Investment Inco
Investments Net Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Investment Income [Line Items] | |||
Total investment income | $ 54,762 | $ 50,183 | $ 47,429 |
Investment expense | (1,616) | (1,623) | (1,647) |
Net investment income | 53,146 | 48,560 | 45,782 |
Debt Securities [Member] | |||
Net Investment Income [Line Items] | |||
Investment income | 48,164 | 43,637 | 39,570 |
Equity Securities [Member] | |||
Net Investment Income [Line Items] | |||
Investment income | 708 | 851 | 2,909 |
Mortgage Loans on Real Estate [Member] | |||
Net Investment Income [Line Items] | |||
Investment income | 11 | 24 | 36 |
Policy Loans [Member] | |||
Net Investment Income [Line Items] | |||
Investment income | 5,735 | 5,277 | 4,614 |
Other Long-term Investments [Member] | |||
Net Investment Income [Line Items] | |||
Investment income | 76 | 305 | 247 |
Other Debt Obligations [Member] | |||
Net Investment Income [Line Items] | |||
Investment income | $ 68 | $ 89 | $ 53 |
Investments Realized Gain (Loss
Investments Realized Gain (Loss) on Investments (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Gain (Loss) on Investments [Line Items] | |||
Realized gains and losses on securities that are not going to be held before FV recovers | $ 30,000 | ||
Realized gains and losses on securities previously impaired | $ 256,000 | $ 35,000 | |
Proceeds from Sale of Available-for-sale Securities, Fixed Maturities | 1,077,000 | 20,638,000 | 0 |
Proceeds from Sale of Available-for-sale Securities, Equity | 1,940,000 | 5,100,000 | 43,163,000 |
Gain (Loss) on Sale of Properties | 1,110,000 | 0 | 0 |
Gain (Loss) on Investments, Excluding Other than Temporary Impairments | (725,000) | (2,327,000) | 74,000 |
Realized loss on Other than Temporary Impairments | (207,000) | (4,312,000) | (5,385,000) |
Realized investment gains, net | 518,000 | (1,985,000) | (5,459,000) |
Proceeds from Sale of Property, Plant, and Equipment | 41,000 | 59,000 | $ 0 |
Available-for-sale Securities [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Number of Debt Securities Sold | 0 | ||
Debt Securities [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Proceeds from Sale of Available-for-sale Securities, Fixed Maturities | 20,638,000 | ||
Available-for-sale Securities, Gross Realized Gains | 19,000 | 1,487,000 | $ 0 |
Available-for-sale Securities, Gross Realized Losses | (16,000) | 0 | 0 |
Gain (Loss) on Sale, Calls and Maturities of Fixed Maturities | (506,000) | 2,024,000 | (111,000) |
Other Than Temporary Impairment Losses on Debt and Equity Securities | $ 0 | $ (3,970,000) | $ (2,998,000) |
Equity Securities [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Number of Equity Securities Sold | 1 | 5 | 6 |
Available-for-sale Securities, Gross Realized Gains | $ 0 | $ 291,000 | $ 634,000 |
Available-for-sale Securities, Gross Realized Losses | (30,000) | (35,000) | (599,000) |
Gain (Loss) on Sale of Equity Securities | 121,000 | 303,000 | 37,000 |
Other Than Temporary Impairment Losses on Debt and Equity Securities | $ (207,000) | $ (342,000) | $ (2,387,000) |
Held-to-maturity Securities [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Number of Debt Securities Sold | 0 | 0 | 0 |
SPLIC subsidiary of CICA [Domain] | |||
Gain (Loss) on Investments [Line Items] | |||
Proceeds from Sale of Property, Plant, and Equipment | $ 3,250,000 | ||
SPLIC subsidiary of CICA [Domain] | Available-for-sale Securities [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Number of Debt Securities Sold | 1 | 11 | |
SPFIC subsidiary of SPLIC [Domain] | Available-for-sale Securities [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Number of Debt Securities Sold | 3 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of Private Placement Securities categorized under Level 3 investments | 0 | |
Available-for-sale Securities, Fair Value Disclosure | $ 974,609,000 | $ 881,668,000 |
Percent of Level 2 Debt Maturity to Total Reported Fair Value of Financial Assets | 97.20% | |
Number of Material Changes to Investment Valuation Method or Assumptions | 0 | |
Number of Third Party Pricing Changes | 0 | |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | 0 |
Assets, Fair Value Disclosure | 990,773,000 | 899,827,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 27,972,000 | 30,349,000 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 962,801,000 | 869,427,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 51,000 |
US Treasury and Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 16,304,000 | 20,692,000 |
US Treasury and Government [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 11,808,000 | 12,190,000 |
US Treasury and Government [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 4,496,000 | 8,502,000 |
US Treasury and Government [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 567,503,000 | 573,274,000 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 567,503,000 | 573,274,000 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 388,703,000 | 285,099,000 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 388,703,000 | 285,099,000 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Commercial Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 51,000 | |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 51,000 | |
Residential Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 1,978,000 | 2,426,000 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 1,978,000 | 2,426,000 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Foreign Government Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 121,000 | 126,000 |
Foreign Government Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Foreign Government Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 121,000 | 126,000 |
Foreign Government Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 974,609,000 | 881,668,000 |
Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 11,808,000 | 12,190,000 |
Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 962,801,000 | 869,427,000 |
Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 51,000 |
Stock Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 3,217,000 | 2,946,000 |
Stock Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 3,217,000 | 2,946,000 |
Stock Mutual Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Stock Mutual Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Bond Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 12,367,000 | 14,197,000 |
Bond Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 12,367,000 | 14,197,000 |
Bond Mutual Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Bond Mutual Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 24,000 | 25,000 |
Common Stock [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 24,000 | 25,000 |
Common Stock [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 556,000 | 991,000 |
Preferred Stock [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 556,000 | 991,000 |
Preferred Stock [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Preferred Stock [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 16,164,000 | 18,159,000 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 16,164,000 | 18,159,000 |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value Measurements Schedul
Fair Value Measurements Schedule of Fair Value Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning of period | $ 51 | $ 145 |
Included in net income | 0 | 0 |
Included in other comprehensive income | 0 | (4) |
Principal paydowns | (51) | (90) |
Transfers in and (out) of Level 3 | 0 | 0 |
Balance at end of period | $ 0 | $ 51 |
Fair Value Measurements Financi
Fair Value Measurements Financial Instruments not Carried at Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fixed maturities held-to-maturity, at amortized cost | $ 233,961 | $ 247,004 | ||
Fixed maturities held-to-maturity, fair value | 241,377 | 252,545 | ||
Mortgage loans | 195 | 232 | ||
Policy loans | 73,735 | 66,672 | ||
Short-term investments | 0 | 508 | ||
Cash and cash equivalents, at carrying value | 46,064 | 35,510 | $ 82,827 | $ 50,708 |
Liability for future policy benefits individual and group annuities | $ 73,688 | $ 69,003 | ||
Mortgage loans on real estate, interest rate | 6.60% | 6.80% | ||
Mortgage loan maturity lower end range | 21 years | |||
Mortgage loan maturity higher end range | 25 years | |||
Mortgage loans interest rate used to estimate fair value | 6.25% | 6.25% | ||
Insurance policy loans interest rate | 7.70% | 7.70% | ||
Fair value minimum interest rate of investment contract | 1.84% | |||
Fair value maximum rate of investment contract | 3.34% | |||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fixed maturities held-to-maturity, at amortized cost | $ 233,961 | $ 247,004 | ||
Mortgage loans | 195 | 232 | ||
Policy loans | 73,735 | 66,672 | ||
Short-term investments | 0 | 508 | ||
Cash and cash equivalents, at carrying value | 46,064 | 35,510 | ||
Liability for future policy benefits individual and group annuities | 55,035 | 50,952 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fixed maturities held-to-maturity, fair value | 241,377 | 252,545 | ||
Mortgage loans | 228 | 269 | ||
Policy loans | 73,735 | 66,672 | ||
Short-term investments | 0 | 508 | ||
Cash and cash equivalents, fair value disclosure | 46,064 | 35,510 | ||
Liability for future policy benefits individual and group annuities | $ 57,575 | $ 52,173 |
Policy Liabilities and Short 56
Policy Liabilities and Short Duration Contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Policy claims payable at January 1 | $ 9,538 | $ 9,653 | $ 9,560 |
Reinsurance recoverable | 407 | 543 | 950 |
Net balance policy claims payable at January 1 | 9,131 | 9,110 | 8,610 |
Claims incurred related to current year | 25,036 | 26,000 | 26,911 |
Claims incurred related to prior years | (209) | (493) | (197) |
Total claims incurred | 24,827 | 25,507 | 26,714 |
Claims paid related to current year | 18,037 | 18,681 | 19,584 |
Claims paid related to prior years | 7,678 | 6,805 | 6,630 |
Total claims paid | 25,715 | 25,486 | 26,214 |
Policy claims payable at December 31 | 8,610 | 9,538 | 9,653 |
Reinsurance recoverable | (367) | (407) | (543) |
Net balance policy claims payable at December 31 | $ 8,243 | $ 9,131 | $ 9,110 |
Policy Liabilities and Short 57
Policy Liabilities and Short Duration Contracts Short Duration Insurance Contracts (Details) $ in Thousands | Dec. 31, 2017USD ($)claim | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Claims Development [Line Items] | |||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 573 | $ 543 | |||
Property Insurance Product Line [Member] | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 9,083 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 8,582 | ||||
All outstanding liabilities before 2012, net of reinsurance | 0 | ||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 501 | 500 | |||
2013 [Member] | Property Insurance Product Line [Member] | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,964 | 1,964 | $ 1,970 | $ 1,977 | $ 2,058 |
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | ||||
Cumulative Number of Reported Claims | claim | 328 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,964 | 1,964 | 1,964 | 1,964 | $ 1,751 |
2014 [Member] | Property Insurance Product Line [Member] | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,570 | 1,575 | 1,650 | 1,744 | |
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | ||||
Cumulative Number of Reported Claims | claim | 254 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,560 | 1,560 | 1,556 | $ 1,361 | |
2015 [Member] | Property Insurance Product Line [Member] | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,692 | 1,731 | 1,777 | ||
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 4 | ||||
Cumulative Number of Reported Claims | claim | 358 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,638 | 1,637 | $ 1,410 | ||
2016 [Member] | Property Insurance Product Line [Member] | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,096 | 2,071 | |||
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 6 | ||||
Cumulative Number of Reported Claims | claim | 531 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 2,061 | $ 1,680 | |||
2017 [Member] | Property Insurance Product Line [Member] | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,761 | ||||
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 210 | ||||
Cumulative Number of Reported Claims | claim | 555 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,359 |
Policy Liabilities and Short 58
Policy Liabilities and Short Duration Contracts Short Term Insurance Contracts Adjustment Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Claims Development [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | $ 573 | $ 543 | ||
Total reinsurance recoverable on unpaid claims | 261 | 340 | ||
Insurance lines other than short duration | 7,776 | 8,655 | ||
Total gross liability for unpaid claims and claim adjustment expenses | 8,610 | 9,538 | $ 9,653 | $ 9,560 |
Special property [Member] | ||||
Claims Development [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 501 | 500 | ||
Total reinsurance recoverable on unpaid claims | 0 | 0 | ||
Other Insurance Product [Member] | ||||
Claims Development [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 72 | 43 | ||
Total reinsurance recoverable on unpaid claims | $ 261 | $ 340 |
Policy Liabilities and Short 59
Policy Liabilities and Short Duration Contracts Historical Claims Duration Activity (Details) - Special property [Member] | Dec. 31, 2017 |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 83.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 13.68% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 0.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 0.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 0.00% |
Reinsurance (Details)
Reinsurance (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Maximum Retention of Life Insurance Face Amount | $ 100,000 | $ 100,000 | |
Reinsurance Retention Policy, Reinsured Risk, Percentage | 100.00% | ||
Percentage Amount of Coinsurance for Accident and Health Insurance Reinsurance | 100.00% | ||
Reinsurance Recoverable on Claims Payable and Future Policy Benefit Reserves for a specific reinsurer | $ 27,000 | ||
Reinsurance Recoverable on Claims Payable and Future Policy Benefit Reserves | 3,715,000 | 3,862,000 | |
Maximum Amount of Casualty Reinsurance for First Catastrophe | 10,000,000 | 10,000,000 | |
Maximum Amount of Casualty Reinsurance for Second Catastrophy | 10,000,000 | ||
Reinsurance Deductible for First Catastrophe | 500,000 | 500,000 | |
Reinsurance Deductible for Second Catastrophy | 500,000 | ||
Assumed Premiums, Life Insurance in Force | 5,564,000 | 22,915,000 | $ 36,766,000 |
Aggregate ceded life insurance in force | (503,685,000) | (522,821,000) | (516,933,000) |
Premiums, Net, Life Insurance in Force | 4,469,735,000 | 4,497,735,000 | 4,478,202,000 |
Direct Premiums Earned | 200,711,000 | 201,074,000 | 197,337,000 |
Assumed Premiums Earned | 142,000 | 151,000 | 353,000 |
Ceded Premiums Earned | 3,133,000 | 3,349,000 | 3,210,000 |
Net reinsurance premiums earned | 191,342,000 | 191,254,000 | 187,686,000 |
Premiums Earned, Net | 197,720,000 | 197,876,000 | 194,480,000 |
Claims and surrenders assumed | 247,000 | 237,000 | 414,000 |
Claims and surrenders ceded | (946,000) | (877,000) | (1,013,000) |
Payments for Reinsurance | 800,000 | 828,000 | 873,000 |
Life and Accident & Health Product Lines [Member] | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Direct Premiums Earned | 193,778,000 | 194,147,000 | 190,114,000 |
Assumed Premiums Earned | 142,000 | 151,000 | 353,000 |
Ceded Premiums Earned | (2,352,000) | (2,521,000) | (2,337,000) |
Net reinsurance premiums earned | 191,568,000 | 191,777,000 | 188,130,000 |
Property and Casualty, Personal Insurance Product Line [Member] | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Direct Premiums Earned | 6,933,000 | 6,927,000 | 7,223,000 |
Assumed Premiums Earned | 0 | 0 | 0 |
Ceded Premiums Earned | (781,000) | (828,000) | (873,000) |
Net reinsurance premiums earned | $ 6,152,000 | $ 6,099,000 | $ 6,350,000 |
Stockholders' Equity and Rest61
Stockholders' Equity and Restrictions (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Statutory Accounting Practices [Line Items] | |||
Number of Classes of Common Stock | 2 | ||
Combined Statutory Stockholders' Equity | $ 35,130 | $ 34,872 | |
Combined Statutory Net Income (Loss) | $ 4,331 | 12,388 | $ (7,365) |
Statutory Amount Available for Dividend Payments, Percentage of Net Surplus | 10.00% | ||
Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 5,800 | ||
Life Insurance operations [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Combined Statutory Stockholders' Equity | 28,101 | 28,009 | |
Combined Statutory Net Income (Loss) | 4,179 | 11,987 | (7,972) |
Property insurance operations [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Combined Statutory Stockholders' Equity | 7,029 | 6,863 | |
Combined Statutory Net Income (Loss) | 152 | $ 401 | $ 607 |
CICA Life Insurance Company of America [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Combined Statutory Stockholders' Equity | 32,000 | ||
Combined Statutory Net Income (Loss) | $ 5,800 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | ||
Total costs to remediate IRC Section 7702 issue | $ 12.3 | $ 14.4 |
Toll charges and fees to remediate IRC Section 7702 issue | 12 | |
Cost of claim and reserve liabilities to remediate IRC Section 7702 issue | 0.3 | |
Decrease in total cost to remediate Section 7702 and 72(s) issue during the period | 2.1 | |
Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Cost Range to Remediate IRC Section 7702 Issue | 5.9 | |
Minimum [Member] | IRC Section 7702 remediation costs [Member] | ||
Loss Contingencies [Line Items] | ||
Loss contingency, range of possible loss | 1 | |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Cost Range to Remediate IRC Section 7702 Issue | 48.2 | |
Maximum [Member] | IRC Section 7702 remediation costs [Member] | ||
Loss Contingencies [Line Items] | ||
Loss contingency, range of possible loss | $ 2 |
Commitments and Contingencies63
Commitments and Contingencies Lease Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases, Future Minimum Payments Due, Less than 1 year | $ 1,858 | ||
Operating Leases, Future Minimum Payments, 1 year to 3 years | 2,829 | ||
Operating Leases, Future Minimum Payments, 3 years to 5 years | 173 | ||
Operating Leases, Future Minimum Payments, More than 5 years | 0 | ||
Operating Leases, Future Minimum Payments Due | 4,860 | ||
Operating Leases, Rent Expense, Net | $ 1,100 | $ 600 | $ 600 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | 2 | ||||||||||
Premiums | $ 197,720 | $ 197,876 | $ 194,480 | ||||||||
Net investment income | 53,146 | 48,560 | 45,782 | ||||||||
Realized investment gains (losses), net | 518 | (1,985) | (5,459) | ||||||||
Other income | 1,243 | 955 | 1,465 | ||||||||
Total revenue | $ 67,863 | $ 64,331 | $ 60,852 | $ 59,581 | $ 67,903 | $ 61,741 | $ 61,237 | $ 54,525 | 252,627 | 245,406 | 236,268 |
claims and surrenders | 82,905 | 81,367 | 78,879 | ||||||||
Increase in future policy benefit reserves | 76,029 | 75,881 | 77,060 | ||||||||
Policyholders' dividends | 6,268 | 6,832 | 10,747 | ||||||||
Total insurance benefits paid or provided | 165,202 | 164,080 | 166,686 | ||||||||
Commissions | 41,324 | 44,641 | 43,625 | ||||||||
Other general expenses | 46,388 | 33,356 | 33,287 | ||||||||
Deferred policy acquisition costs, capitalized amount | (29,120) | (32,732) | (31,104) | ||||||||
Amortization of deferred policy acquisition costs | 29,690 | 28,515 | 23,400 | ||||||||
Amortization of cost of customer relationships acquired | 2,129 | 2,063 | 2,317 | ||||||||
Total benefits and expenses | 76,998 | $ 61,221 | $ 58,756 | $ 58,638 | 68,277 | $ 57,134 | $ 58,678 | $ 55,834 | 255,613 | 239,923 | 238,211 |
Income (loss) before income tax expense | (2,986) | 5,483 | (1,943) | ||||||||
Total assets | 1,644,453 | 1,583,668 | 1,644,453 | 1,583,668 | 1,480,751 | ||||||
Ordinary life | 191,342 | 191,226 | 187,479 | ||||||||
Group Life | 0 | 28 | 207 | ||||||||
Accident and health | 1,392 | 1,546 | 1,599 | ||||||||
Property | 4,986 | 5,076 | 5,195 | ||||||||
Reinsurance Costs and Recoveries, Net | (2,991) | (3,198) | (2,857) | ||||||||
All Countries [Domain] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Premiums | 197,720 | 197,876 | 194,480 | ||||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Premiums | 54,737 | 54,430 | 54,753 | ||||||||
Colombia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Premiums | 29,200 | 29,643 | 27,589 | ||||||||
Venezuela | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Premiums | 27,997 | 31,107 | 31,948 | ||||||||
Taiwan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Premiums | 19,535 | 18,590 | 18,031 | ||||||||
Ecuador | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Premiums | 16,440 | 15,456 | 15,527 | ||||||||
Brazil | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Premiums | 11,088 | 9,856 | 8,960 | ||||||||
Other foreign countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Premiums | 41,714 | 41,992 | 40,529 | ||||||||
Life Insurance Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Premiums | 150,708 | 151,195 | 147,832 | ||||||||
Net investment income | 38,578 | 33,350 | 30,206 | ||||||||
Realized investment gains (losses), net | (461) | (1,685) | (3,873) | ||||||||
Other income | 1,061 | 882 | 1,008 | ||||||||
Total revenue | 189,886 | 183,742 | 175,173 | ||||||||
claims and surrenders | 60,393 | 58,440 | 55,912 | ||||||||
Increase in future policy benefit reserves | 70,783 | 71,373 | 73,259 | ||||||||
Policyholders' dividends | 6,226 | 6,774 | 10,695 | ||||||||
Total insurance benefits paid or provided | 137,402 | 136,587 | 139,866 | ||||||||
Commissions | 25,760 | 29,235 | 28,336 | ||||||||
Other general expenses | 18,597 | 14,284 | 16,345 | ||||||||
Deferred policy acquisition costs, capitalized amount | (23,157) | (26,742) | (25,268) | ||||||||
Amortization of deferred policy acquisition costs | 25,295 | 24,428 | 20,025 | ||||||||
Amortization of cost of customer relationships acquired | 595 | 559 | 641 | ||||||||
Total benefits and expenses | 184,492 | 178,351 | 179,945 | ||||||||
Income (loss) before income tax expense | 5,394 | 5,391 | (4,772) | ||||||||
Total assets | 1,191,051 | 1,130,288 | 1,191,051 | 1,130,288 | |||||||
Home Service Insurance Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Premiums | 47,012 | 46,681 | 46,648 | ||||||||
Net investment income | 13,132 | 13,705 | 14,063 | ||||||||
Realized investment gains (losses), net | 979 | (300) | (1,586) | ||||||||
Other income | 3 | 5 | 86 | ||||||||
Total revenue | 61,126 | 60,091 | 59,211 | ||||||||
claims and surrenders | 22,512 | 22,927 | 22,967 | ||||||||
Increase in future policy benefit reserves | 5,246 | 4,508 | 3,801 | ||||||||
Policyholders' dividends | 42 | 58 | 52 | ||||||||
Total insurance benefits paid or provided | 27,800 | 27,493 | 26,820 | ||||||||
Commissions | 15,564 | 15,406 | 15,289 | ||||||||
Other general expenses | 23,395 | 15,252 | 13,349 | ||||||||
Deferred policy acquisition costs, capitalized amount | (5,963) | (5,990) | (5,836) | ||||||||
Amortization of deferred policy acquisition costs | 4,395 | 4,087 | 3,375 | ||||||||
Amortization of cost of customer relationships acquired | 1,534 | 1,504 | 1,676 | ||||||||
Total benefits and expenses | 66,725 | 57,752 | 54,673 | ||||||||
Income (loss) before income tax expense | (5,599) | 2,339 | 4,538 | ||||||||
Total assets | 377,578 | 374,986 | 377,578 | 374,986 | |||||||
Other Non-Insurance Enterprises [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Premiums | 0 | 0 | 0 | ||||||||
Net investment income | 1,436 | 1,505 | 1,513 | ||||||||
Realized investment gains (losses), net | 0 | 0 | 0 | ||||||||
Other income | 179 | 68 | 371 | ||||||||
Total revenue | 1,615 | 1,573 | 1,884 | ||||||||
claims and surrenders | 0 | 0 | 0 | ||||||||
Increase in future policy benefit reserves | 0 | 0 | 0 | ||||||||
Policyholders' dividends | 0 | 0 | 0 | ||||||||
Total insurance benefits paid or provided | 0 | 0 | 0 | ||||||||
Commissions | 0 | 0 | 0 | ||||||||
Other general expenses | 4,396 | 3,820 | 3,593 | ||||||||
Deferred policy acquisition costs, capitalized amount | 0 | 0 | 0 | ||||||||
Amortization of deferred policy acquisition costs | 0 | 0 | 0 | ||||||||
Amortization of cost of customer relationships acquired | 0 | 0 | 0 | ||||||||
Total benefits and expenses | 4,396 | 3,820 | 3,593 | ||||||||
Income (loss) before income tax expense | (2,781) | (2,247) | $ (1,709) | ||||||||
Total assets | $ 75,824 | $ 78,394 | $ 75,824 | $ 78,394 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | ||||||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 35,718 | $ 0 | $ 0 | ||||||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Deferred Tax Amount | 4,800 | ||||||||||
Income Tax Expense (Benefit) | $ 35,069 | $ (339) | $ 1,524 | $ (1,113) | $ (490) | $ 1,845 | $ 1,077 | $ 1,082 | $ 35,141 | $ 3,514 | $ 1,200 |
Effective Income Tax Rate Reconciliation, Percent | (1176.90%) | 64.10% | (61.80%) | ||||||||
Deferred Tax Liability, Tax Valuation Allowance | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
Eligibility Date to File with Consolidated Federal Income Tax Return | Dec. 31, 2020 |
Income Taxes Reconciliation of
Income Taxes Reconciliation of Expected Federal Tax Expense to Actual (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
Expected Tax Expense | $ (1,045) | $ 1,919 | $ (680) | ||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | ||||||||
Release of Tax Valuation Allowance in Other Comprehensive Income | $ 0 | $ 0 | $ (42) | ||||||||
Effective Income Tax Rate Reconciliation, Release of Valuation Allowance Previously in Other Comprehensive Income, Percent | 0.00% | 0.00% | 2.20% | ||||||||
Taxable Intercompany Stock Sales | $ 0 | $ 263 | $ 0 | ||||||||
Effective Income Tax Rate Reconciliation, Taxable Intercompany Stock Sales, Percent | 0.00% | 4.80% | 0.00% | ||||||||
Tax Exempt Interest and Dividends-Received Deductions | $ (360) | $ (553) | $ (746) | ||||||||
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Percent | 12.10% | (10.10%) | 38.40% | ||||||||
Adjustment of Prior Year Income Taxes | $ 68 | $ 29 | $ (317) | ||||||||
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Percent | (2.30%) | 0.50% | 16.30% | ||||||||
Tax Effect of Graduated Income Tax Rates | $ (140) | $ (57) | $ (71) | ||||||||
Effective Income Tax Rate Reconciliation, Effect of Graduate Rates, Percent | 4.70% | (1.00%) | 3.70% | ||||||||
Unrecognized Tax Benefits, Income Tax Penalties Expense | $ (355) | $ 1,672 | $ 1,890 | ||||||||
Effective Income Tax Rate Reconciliation, Tax Contingency, Domestic, Percent | 11.90% | 30.50% | (97.30%) | ||||||||
Tax Benefit not Recognized due to Non-Deductibility of Tax Compliance Issue | $ (384) | $ 241 | $ 1,152 | ||||||||
Effective Income Tax Rate Reconciliation, Nondeductible Costs to Remediate Tax Compliance Issue, Percent | 12.90% | 4.40% | (59.30%) | ||||||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 35,718 | $ 0 | $ 0 | ||||||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | (1196.20%) | 0.00% | 0.00% | ||||||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount | $ 1,621 | $ 0 | $ 0 | ||||||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Percent | (54.30%) | 0.00% | 0.00% | ||||||||
Other Reconciling Items | $ 18 | $ 0 | $ 14 | ||||||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | (0.70%) | 0.00% | (0.80%) | ||||||||
Federal income tax expense | $ 35,069 | $ (339) | $ 1,524 | $ (1,113) | $ (490) | $ 1,845 | $ 1,077 | $ 1,082 | $ 35,141 | $ 3,514 | $ 1,200 |
Effective Income Tax Rate Reconciliation, Percent | (1176.90%) | 64.10% | (61.80%) |
Income Taxes Components of Inco
Income Taxes Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current Income Tax Expense | $ 14,454 | $ 13,348 | $ (2,315) | ||||||||
Deferred Tax Expense Less OCI Valuation Allowance Release | 20,687 | (9,834) | 3,515 | ||||||||
Federal income tax expense | $ 35,069 | $ (339) | $ 1,524 | $ (1,113) | $ (490) | $ 1,845 | $ 1,077 | $ 1,082 | $ 35,141 | $ 3,514 | $ 1,200 |
Income Taxes Deferred Tax Asset
Income Taxes Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Deferred Tax Assets, Future Policy Benefit Reserves | $ 78,372 | $ 123,101 | |
Deferred Tax Asset from Net Operating Loss and Capital Loss Carryforwards | 485 | 0 | |
Deferred Tax Asset, Due and Accrued Dividends and Expenses | 65 | 104 | |
Deferred Tax Assets, Investments | 6,002 | 6,837 | |
Deferred Tax Assets, State Income Tax Credits | 0 | 119 | |
Deferred Tax Assets, Other | 276 | 56 | |
Deferred Tax Assets, Gross | 85,200 | 130,217 | |
Deferred Tax Liabilty from Deferred Acquisition Cost, Value of Business Acquired and Other Intangibles | (25,518) | (44,709) | |
Deferred Tax Liability from Unrealized Gains on Investments Available for Sale | (8,297) | (7,556) | |
Deferred Tax Liability from Policyholder Dividends | (441) | (815) | |
Deferred Tax Liabilities, Other | (147) | (268) | |
Gross deferred federal income taxes | (34,403) | (53,348) | |
Deferred tax assets, net | $ 50,797 | $ 76,869 | $ 67,145 |
Income Taxes Changes in Net Def
Income Taxes Changes in Net Deferred Tax Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Deferred Income Tax Expense (Benefit) | $ (20,687) | $ 9,834 | |
Available-for-sale Securities, Income Tax Expense on Change in Unrealized Holding Gain (Loss) | (5,570) | (128) | |
Deferred Tax from Change in Unrealized Gain Loss Atributible to Deferred Acquisition Costs and Value of Business Acquired | (103) | 18 | |
Income Tax Expense on Reclassification of Subsidiary NOL | 288 | 0 | |
Deferred tax assets, net | 50,797 | $ 76,869 | $ 67,145 |
Operating Loss Carryforwards | $ 1,200 | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2032 | ||
Deferred Tax Assets, Capital Loss Carryforwards | $ 1,100 | ||
Deferred Tax, Capital Loss Carryforwards, Expiration Date | Dec. 31, 2022 |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||||||||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | $ 6,500 | $ 5,700 | $ 3,500 | |||||||||
Unrecognized Tax Benefits | $ 95,831 | $ 85,762 | 95,831 | 85,762 | 78,079 | $ 81,459 | ||||||
Unrecognized Tax Benefits, Additions Based on Tax Positions Related to Current Year | 7,384 | 3,546 | 3,608 | |||||||||
Unrecognized Tax Benefits, Additions for Tax Positions of Prior Years | 2,685 | 4,706 | 1,570 | |||||||||
Unrecognized Tax Benefits, Reductions for Tax Positions of Prior Years | 0 | (569) | (8,558) | |||||||||
Income Tax Expense (Benefit) | $ 35,069 | $ (339) | $ 1,524 | $ (1,113) | $ (490) | $ 1,845 | $ 1,077 | $ 1,082 | 35,141 | 3,514 | 1,200 | |
Interest on Prior Year Income Tax Expense [Member] | ||||||||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||||||||
Income Tax Expense (Benefit) | $ 800 | $ 2,200 | $ 400 |
Other Comprehensive Income (L71
Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | |||
Effective Income Tax Rate Reconciliation, Percent | 31.10% | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% |
Other Comprehensive Income (Loss), Net of Tax | |||
Unrealized holding gains (losses) arising during the period. before tax | $ 17,374 | $ (1,608) | $ (24,545) |
Unrealized holding gains (losses) arising during the period, tax effect | (5,379) | 563 | 8,591 |
Unrealized holding gains (losses) arising during the period, net of tax | 11,995 | (1,045) | (15,954) |
Reclassification adjustment for (gains) losses included in net income | 546 | 1,974 | 5,415 |
Reclassification adjustment for (gains) losses included in net income, tax effect | (191) | (691) | (1,895) |
Reclassification adjustment for (gains) losses included in net income, net of tax | 355 | 1,283 | 3,520 |
Effects on DAC and CCRA, before tax | 292 | (51) | 328 |
Effects on DAC and CCRA, tax effect | (102) | 18 | (115) |
Effects on DAC and CCRA, net of tax | 190 | (33) | 213 |
Change in tax valuation allowance, before tax | 0 | ||
Change in tax valuation allowance, tax effect | (42) | ||
Change in tax valuation allowance, net of tax. | (42) | ||
Other comprehensive income (loss), before tax | 18,212 | 315 | (18,802) |
Other comprehensive income (loss), tax effect | (5,672) | (110) | 6,539 |
Other comprehensive income (loss) | $ 12,540 | $ 205 | $ (12,263) |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Benefit Plans [Abstract] | |||
Employer contributions | $ 0 | $ 0 | $ 0 |
Expense related to new 401(k) plan | 700,000 | $ 500,000 | |
Stop loss coverage on self-insured plan | $ 100,000 |
Related Party Transactions Inte
Related Party Transactions Intercompany related dividends paid (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
SPLIC subsidiary of CICA [Domain] | |
Related Party Transaction [Line Items] | |
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | $ 395 |
Related Party Transactions Rela
Related Party Transactions Related Party - Intercompany Transaction (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Capital Contribution to CICA Life [Member] | |
Related Party Transaction [Line Items] | |
Capital Contribution to Subsidiary | $ 5,000,000 |
Capital Contribution to CICA Life Ltd. [Member] [Domain] | |
Related Party Transaction [Line Items] | |
Capital Contribution to Subsidiary | 250,000 |
Capital Contribution to Magnolia Life Ins Co [Domain] | |
Related Party Transaction [Line Items] | |
Capital Contribution to Subsidiary | 250,000 |
SPLIC subsidiary of CICA [Domain] | |
Related Party Transaction [Line Items] | |
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | $ 395,000 |
Quarterly Financial Informati75
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 35,718 | $ 0 | $ 0 | ||||||||
Goodwill and Intangible Asset Impairment | 0 | 0 | |||||||||
Revenues | $ 67,863 | $ 64,331 | $ 60,852 | $ 59,581 | $ 67,903 | $ 61,741 | $ 61,237 | $ 54,525 | 252,627 | 245,406 | 236,268 |
Benefits and expenses | 76,998 | 61,221 | 58,756 | 58,638 | 68,277 | 57,134 | 58,678 | 55,834 | 255,613 | 239,923 | 238,211 |
Federal income tax expense (benefit) | 35,069 | (339) | 1,524 | (1,113) | (490) | 1,845 | 1,077 | 1,082 | 35,141 | 3,514 | 1,200 |
Net income (loss) | (44,204) | 3,449 | 572 | 2,056 | 116 | 2,762 | 1,482 | (2,391) | $ (38,127) | $ 1,969 | $ (3,143) |
Common Stock Class A [Member] | |||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (44,204) | $ 3,449 | $ 572 | $ 2,056 | $ 116 | $ 2,762 | $ 1,482 | $ (2,391) | |||
Basic and diluted earnings (losses) per share common stock | $ (0.89) | $ 0.07 | $ 0.01 | $ 0.04 | $ 0 | $ 0.06 | $ 0.03 | $ (0.05) | $ (0.77) | $ 0.04 | $ (0.06) |
Common Stock Class B [Member] | |||||||||||
Basic and diluted earnings (losses) per share common stock | $ (0.44) | $ 0.03 | $ 0.01 | $ 0.02 | $ 0 | $ 0.03 | $ 0.01 | $ (0.02) | $ (0.38) | $ 0.02 | $ (0.03) |
Home Service Insurance Segment [Member] | |||||||||||
Goodwill and Intangible Asset Impairment | $ (4,631) | $ 0 | $ 0 | ||||||||
Revenues | 61,126 | 60,091 | 59,211 | ||||||||
Benefits and expenses | $ 66,725 | $ 57,752 | $ 54,673 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) | Feb. 16, 2018 | Dec. 31, 2018 |
Subsequent Event [Line Items] | ||
Stock Granted, Value, Share-based Compensation, Gross | $ 1,200,000 | |
Restricted Stock Units Award Announced | Feb. 15, 2018 | |
Executive Management Team [Member] | ||
Subsequent Event [Line Items] | ||
Stock Granted, Value, Share-based Compensation, Gross | $ 976,000 | |
Board of Director [Member] | ||
Subsequent Event [Line Items] | ||
Stock Granted, Value, Share-based Compensation, Gross | $ 10,500 |
Correction of Immaterial Erro77
Correction of Immaterial Errors and Reclassificaiton of Certain Amounts (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred policy acquisition costs | $ 167,063 | $ 167,790 | $ 167,063 | $ 167,790 | $ 163,692 | $ 163,692 | $ 155,859 | ||||||
Deferred tax assets | 50,797 | 76,869 | 50,797 | 76,869 | 67,145 | 67,145 | |||||||
Assets | 1,644,453 | 1,583,668 | 1,644,453 | 1,583,668 | 1,480,751 | 1,480,751 | |||||||
Life insurance | 1,133,875 | 1,060,297 | 1,133,875 | 1,060,297 | 987,373 | 987,373 | |||||||
Total policy liabilities | 1,300,790 | 1,216,699 | 1,300,790 | 1,216,699 | 1,132,280 | 1,132,280 | |||||||
Current federal income tax payable | 93,365 | 81,270 | 93,365 | 81,270 | 71,982 | 71,982 | |||||||
Other liabilities | 24,355 | 29,998 | 24,355 | 29,998 | 24,349 | 24,349 | |||||||
Total liabilities | 1,420,940 | 1,334,568 | 1,420,940 | 1,334,568 | 1,233,825 | 1,233,825 | |||||||
Accumulated deficit | (54,375) | (16,248) | (54,375) | (16,248) | (18,217) | (18,217) | |||||||
Total stockholders' equity | 223,513 | 249,100 | 223,513 | 249,100 | 246,926 | 246,926 | 262,332 | ||||||
Total liabilities and stockholders' equity | 1,644,453 | 1,583,668 | 1,644,453 | 1,583,668 | 1,480,751 | 1,480,751 | |||||||
Increase in future policy benefit reserves | 76,029 | 75,881 | 77,060 | ||||||||||
Total insurance benefits paid or provided | 165,202 | 164,080 | 166,686 | ||||||||||
Other general expenses | 46,388 | 33,356 | 33,287 | ||||||||||
Amortization of deferred policy acquisition costs | 29,690 | 28,515 | 23,400 | ||||||||||
Benefits and expenses | 76,998 | $ 61,221 | $ 58,756 | $ 58,638 | 68,277 | $ 57,134 | $ 58,678 | $ 55,834 | 255,613 | 239,923 | 238,211 | ||
Income (loss) before federal income tax | (2,986) | 5,483 | (1,943) | ||||||||||
Federal income tax expense (benefit) | 35,069 | (339) | 1,524 | (1,113) | (490) | 1,845 | 1,077 | 1,082 | 35,141 | 3,514 | 1,200 | ||
Net income (loss) | $ (44,204) | $ 3,449 | $ 572 | $ 2,056 | $ 116 | $ 2,762 | $ 1,482 | $ (2,391) | (38,127) | 1,969 | (3,143) | ||
Total comprehensive income (loss) | (25,587) | 2,174 | (15,406) | (15,406) | |||||||||
Net deferred policy acquisition costs | 570 | (4,217) | (7,704) | ||||||||||
Deferred federal income tax expense (benefit) | 20,687 | (9,834) | 3,515 | ||||||||||
Future policy benefit reserves | 75,920 | 74,583 | 76,901 | ||||||||||
Increase (Decrease) in Other Accrued Liabilities | (6,753) | 6,434 | 617 | ||||||||||
Increase (Decrease) in Income Taxes Payable, Net of Income Taxes Receivable | 11,808 | 9,287 | (6,837) | ||||||||||
Net cash provided by operating activities | $ 93,012 | $ 102,271 | 87,153 | ||||||||||
Scenario, Previously Reported [Member] | |||||||||||||
Deferred policy acquisition costs | 165,362 | 165,362 | |||||||||||
Deferred tax assets | 68,764 | 68,764 | |||||||||||
Assets | 1,484,040 | 1,484,040 | |||||||||||
Life insurance | 995,972 | 995,972 | |||||||||||
Total policy liabilities | 1,140,879 | 1,140,879 | |||||||||||
Current federal income tax payable | 71,225 | 71,225 | |||||||||||
Other liabilities | 24,205 | 24,205 | |||||||||||
Total liabilities | 1,241,523 | 1,241,523 | |||||||||||
Accumulated deficit | (22,626) | (22,626) | |||||||||||
Total stockholders' equity | 242,517 | 242,517 | 258,359 | ||||||||||
Total liabilities and stockholders' equity | 1,484,040 | 1,484,040 | |||||||||||
Increase in future policy benefit reserves | 77,929 | ||||||||||||
Total insurance benefits paid or provided | 167,555 | ||||||||||||
Other general expenses | 33,143 | ||||||||||||
Amortization of deferred policy acquisition costs | 23,339 | ||||||||||||
Benefits and expenses | 238,875 | ||||||||||||
Income (loss) before federal income tax | (2,607) | ||||||||||||
Federal income tax expense (benefit) | 972 | ||||||||||||
Net income (loss) | (3,579) | ||||||||||||
Total comprehensive income (loss) | (15,842) | ||||||||||||
Net deferred policy acquisition costs | 7,765 | ||||||||||||
Deferred federal income tax expense (benefit) | 4,043 | ||||||||||||
Future policy benefit reserves | 77,770 | ||||||||||||
Increase (Decrease) in Other Accrued Liabilities | 473 | ||||||||||||
Increase (Decrease) in Income Taxes Payable, Net of Income Taxes Receivable | (7,593) | ||||||||||||
Net cash provided by operating activities | 87,153 | ||||||||||||
Restatement Adjustment [Member] | |||||||||||||
Deferred policy acquisition costs | (1,670) | (1,670) | |||||||||||
Deferred tax assets | (1,619) | (1,619) | |||||||||||
Assets | (3,289) | (3,289) | |||||||||||
Life insurance | (8,599) | (8,599) | |||||||||||
Total policy liabilities | (8,599) | (8,599) | |||||||||||
Current federal income tax payable | 757 | 757 | |||||||||||
Other liabilities | 144 | 144 | |||||||||||
Total liabilities | (7,698) | (7,698) | |||||||||||
Accumulated deficit | 4,409 | 4,409 | |||||||||||
Total stockholders' equity | 4,409 | 4,409 | $ 3,973 | ||||||||||
Total liabilities and stockholders' equity | (3,289) | (3,289) | |||||||||||
Increase in future policy benefit reserves | (869) | ||||||||||||
Total insurance benefits paid or provided | (869) | ||||||||||||
Other general expenses | 144 | ||||||||||||
Amortization of deferred policy acquisition costs | 61 | ||||||||||||
Benefits and expenses | (664) | ||||||||||||
Income (loss) before federal income tax | 664 | ||||||||||||
Federal income tax expense (benefit) | 228 | ||||||||||||
Net income (loss) | 436 | ||||||||||||
Total comprehensive income (loss) | 436 | ||||||||||||
Net deferred policy acquisition costs | (61) | ||||||||||||
Deferred federal income tax expense (benefit) | (528) | ||||||||||||
Future policy benefit reserves | (869) | ||||||||||||
Increase (Decrease) in Other Accrued Liabilities | 144 | ||||||||||||
Increase (Decrease) in Income Taxes Payable, Net of Income Taxes Receivable | 756 | ||||||||||||
Net cash provided by operating activities | $ 0 | ||||||||||||
Common Class A [Member] | |||||||||||||
Basic and diluted earnings (losses) per share common stock | $ (0.89) | $ 0.07 | $ 0.01 | $ 0.04 | $ 0 | $ 0.06 | $ 0.03 | $ (0.05) | $ (0.77) | $ 0.04 | $ (0.06) | ||
Common Class A [Member] | Scenario, Previously Reported [Member] | |||||||||||||
Basic and diluted earnings (losses) per share common stock | (0.07) | ||||||||||||
Common Class A [Member] | Restatement Adjustment [Member] | |||||||||||||
Basic and diluted earnings (losses) per share common stock | 0.01 | ||||||||||||
Common Class B [Member] | |||||||||||||
Basic and diluted earnings (losses) per share common stock | $ (0.44) | $ 0.03 | $ 0.01 | $ 0.02 | $ 0 | $ 0.03 | $ 0.01 | $ (0.02) | $ (0.38) | $ 0.02 | (0.03) | ||
Common Class B [Member] | Scenario, Previously Reported [Member] | |||||||||||||
Basic and diluted earnings (losses) per share common stock | (0.04) | ||||||||||||
Common Class B [Member] | Restatement Adjustment [Member] | |||||||||||||
Basic and diluted earnings (losses) per share common stock | $ 0.01 | ||||||||||||
Errors in Valuing DAC and Future Policy Benefits [Member] | |||||||||||||
Deferred policy acquisition costs | (300) | $ (300) | |||||||||||
Life insurance | $ (7,900) | $ (7,900) |
Financial Schedules Schedule 78
Financial Schedules Schedule II - Condensed Financial Information (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||||
Fixed maturities available-for-sale, at fair value | $ 974,609 | $ 881,668 | ||
Fixed maturities held-to-maturity, at amortized cost | 233,961 | 247,004 | ||
Equity securities | 16,164 | 18,159 | ||
Real estate and other long-term investments | 7,416 | 5,919 | ||
Short-term investments | 0 | 508 | ||
Cash and cash equivalents | 46,064 | 35,510 | $ 82,827 | $ 50,708 |
Accrued investment income | 19,062 | 17,903 | ||
Property and equipment, net | 6,624 | 7,890 | ||
Other assets | 912 | 918 | ||
Total assets | 1,644,453 | 1,583,668 | 1,480,751 | |
Total liabilities | 1,420,940 | 1,334,568 | 1,233,825 | |
Accumulated deficit | (54,375) | (16,248) | (18,217) | |
Unrealized investment gains on securities held by parent and subsidaries, net of tax | 26,332 | 13,792 | ||
Treasury stock | (11,011) | (11,011) | ||
Total stockholders' equity | 223,513 | 249,100 | 246,926 | 262,332 |
Total liabilities and stockholders' equity | 1,644,453 | 1,583,668 | 1,480,751 | |
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Investment in subsidiary | 158,453 | 173,877 | ||
Fixed maturities available-for-sale, at fair value | 39,521 | 51,028 | ||
Fixed maturities held-to-maturity, at amortized cost | 350 | 357 | ||
Equity securities | 1,133 | 1,030 | ||
Real estate and other long-term investments | 5,832 | 5,920 | ||
Short-term investments | 0 | 508 | ||
Cash and cash equivalents | 23,850 | 14,673 | $ 15,756 | $ 14,816 |
Accrued investment income | 576 | 757 | ||
Accounts receivable from subsidiaries | 5,489 | 2,658 | ||
Property and equipment, net | 789 | 746 | ||
Other assets | 290 | 237 | ||
Total assets | 236,283 | 251,791 | ||
Accrued expenses and other liabilities | 12,770 | 2,691 | ||
Total liabilities | 12,770 | 2,691 | ||
Accumulated deficit | (54,375) | (16,248) | ||
Unrealized investment gains on securities held by parent and subsidaries, net of tax | 26,332 | 13,792 | ||
Treasury stock | (11,011) | (11,011) | ||
Total stockholders' equity | 223,513 | 249,100 | ||
Total liabilities and stockholders' equity | 236,283 | 251,791 | ||
Common Class A [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Common Stock | 259,383 | 259,383 | ||
Common Class A [Member] | Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Common Stock | 259,383 | 259,383 | ||
Common Class B [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Common Stock | 3,184 | 3,184 | ||
Common Class B [Member] | Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Common Stock | $ 3,184 | $ 3,184 |
Financial Schedules Schedule 79
Financial Schedules Schedule II - Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Other Income | $ 1,243 | $ 955 | $ 1,465 | ||||||||
Realized investment gains (losses), net | 518 | (1,985) | (5,459) | ||||||||
Total revenue | $ 67,863 | $ 64,331 | $ 60,852 | $ 59,581 | $ 67,903 | $ 61,741 | $ 61,237 | $ 54,525 | 252,627 | 245,406 | 236,268 |
Federal income tax expense (benefit) | 35,069 | (339) | 1,524 | (1,113) | (490) | 1,845 | 1,077 | 1,082 | 35,141 | 3,514 | 1,200 |
Net income (loss) | $ (44,204) | $ 3,449 | $ 572 | $ 2,056 | $ 116 | $ 2,762 | $ 1,482 | $ (2,391) | (38,127) | 1,969 | (3,143) |
Parent Company [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Management service fees | 42,367 | 33,748 | 31,328 | ||||||||
Investment income | 1,282 | 1,491 | 1,499 | ||||||||
Other Income | 80 | 49 | 58 | ||||||||
Total revenue | 43,729 | 35,288 | 32,885 | ||||||||
General expenes | 41,680 | 33,807 | 29,609 | ||||||||
Taxes, licenses and fees | 1,203 | 996 | 918 | ||||||||
Federal income tax expense (benefit) | 228 | (196) | 523 | ||||||||
Total expenses | 43,111 | 34,607 | 31,050 | ||||||||
Income before equity in income of consolidated subsidiaries | 618 | 681 | 1,835 | ||||||||
Equity in income of consolidated subsidiaries | (38,745) | 1,288 | (4,978) | ||||||||
Net income (loss) | $ (38,127) | $ 1,969 | $ (3,143) |
Financial Schedules Schedule 80
Financial Schedules Schedule II - Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income (loss) | $ (44,204) | $ 3,449 | $ 572 | $ 2,056 | $ 116 | $ 2,762 | $ 1,482 | $ (2,391) | $ (38,127) | $ 1,969 | $ (3,143) |
Realized investment gains (losses), net | (518) | 1,985 | 5,459 | ||||||||
Amortization of premiums and discounts on investments | 16,606 | 14,676 | 12,021 | ||||||||
Depreciation | 1,065 | 806 | 779 | ||||||||
Accrued investment income | (1,159) | (2,497) | (1,949) | ||||||||
Other, net | 59 | 224 | (99) | ||||||||
Net cash provided by operating activities | 93,012 | 102,271 | 87,153 | ||||||||
Purchase of fixed maturities, held-to-maturity | 0 | (5,507) | (55,360) | ||||||||
Purchase of fixed maturities, available-for-sale | (167,699) | (234,964) | (134,126) | ||||||||
Maturities of fixed maturities, available-for-sale | 74,902 | 56,032 | 75,231 | ||||||||
Purchase of equity securities, available-for-sale | 0 | 0 | (602) | ||||||||
Sale of other long-term investments and property and equipment | 3,041 | 37 | 60 | ||||||||
Purchase of other long-term investments and property and equipment | 0 | (75) | 0 | ||||||||
Purchase of short-term investments | 0 | (522) | (255) | ||||||||
Maturity of short-term investments | 500 | 256 | 0 | ||||||||
Net cash used in investing activities | (85,005) | (152,077) | (58,034) | ||||||||
Net cash provided by financing activities | 2,547 | 2,489 | 3,000 | ||||||||
Net increase (decrease) in cash and cash equivalents | 10,554 | (47,317) | 32,119 | ||||||||
Cash and cash equivalents at beginning of year | 35,510 | 82,827 | 35,510 | 82,827 | 50,708 | ||||||
Cash and cash equivalents at end of year | 46,064 | 35,510 | 46,064 | 35,510 | 82,827 | ||||||
Parent Company [Member] | |||||||||||
Net income (loss) | (38,127) | 1,969 | (3,143) | ||||||||
Equity in income of consolidated subsidiaries | 38,745 | (1,288) | 4,978 | ||||||||
Accrued expenses and other liabilities | 4,370 | (3,018) | 483 | ||||||||
Amortization of premiums and discounts on investments | 714 | 911 | 984 | ||||||||
Depreciation | 319 | 162 | 155 | ||||||||
Accrued investment income | 181 | 35 | (14) | ||||||||
Decrease (increase) in receivable from subsidiaries | (2,901) | 300 | (627) | ||||||||
Other, net | (102) | 149 | 110 | ||||||||
Net cash provided by operating activities | 3,199 | (780) | 2,926 | ||||||||
Purchase of fixed maturities, available-for-sale | 0 | (6,615) | (4,559) | ||||||||
Maturities of fixed maturities, available-for-sale | 10,986 | 8,015 | 2,645 | ||||||||
Sale of other long-term investments and property and equipment | 3 | 371 | 16 | ||||||||
Purchase of other long-term investments and property and equipment | (261) | (740) | (88) | ||||||||
Purchase of short-term investments | 0 | (522) | 0 | ||||||||
Maturity of short-term investments | 500 | 0 | 0 | ||||||||
Capital contribution to subsidiary | (5,250) | 0 | 0 | ||||||||
Net cash used in investing activities | 5,978 | 509 | (1,986) | ||||||||
Purchase of the Company's stock from affiliates | 0 | (812) | 0 | ||||||||
Net cash provided by financing activities | 0 | (812) | 0 | ||||||||
Net increase (decrease) in cash and cash equivalents | 9,177 | (1,083) | 940 | ||||||||
Cash and cash equivalents at beginning of year | $ 14,673 | $ 15,756 | 14,673 | 15,756 | 14,816 | ||||||
Cash and cash equivalents at end of year | $ 23,850 | $ 14,673 | $ 23,850 | $ 14,673 | $ 15,756 |
Financial Schedules Schedule 81
Financial Schedules Schedule III - Supplemental Insurance Information (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Supplementary Insurance Information, by Segment [Line Items] | ||
Supplementary Insurance Information, Deferred policy acquisition costs | $ 167,063 | $ 167,790 |
Supplementary Insurance Information, Future policy benefit reserves and policy claims payable | 1,217,163 | 1,139,860 |
Supplementary Insurance Information, Unearned premiums | 1,329 | 1,154 |
Supplementary Insurance Information, Other policy claims and benefits payable | 82,298 | 75,685 |
Life Insurance Segment [Member] | ||
Supplementary Insurance Information, by Segment [Line Items] | ||
Supplementary Insurance Information, Deferred policy acquisition costs | 130,566 | 132,704 |
Supplementary Insurance Information, Future policy benefit reserves and policy claims payable | 943,907 | 871,136 |
Supplementary Insurance Information, Unearned premiums | 1,090 | 915 |
Supplementary Insurance Information, Other policy claims and benefits payable | 80,503 | 73,860 |
Home Service Insurance Segment [Member] | ||
Supplementary Insurance Information, by Segment [Line Items] | ||
Supplementary Insurance Information, Deferred policy acquisition costs | 36,497 | 35,086 |
Supplementary Insurance Information, Future policy benefit reserves and policy claims payable | 273,256 | 268,724 |
Supplementary Insurance Information, Unearned premiums | 239 | 239 |
Supplementary Insurance Information, Other policy claims and benefits payable | 1,795 | 1,825 |
Other Non-Insurance Enterprises [Member] | ||
Supplementary Insurance Information, by Segment [Line Items] | ||
Supplementary Insurance Information, Deferred policy acquisition costs | 0 | 0 |
Supplementary Insurance Information, Future policy benefit reserves and policy claims payable | 0 | 0 |
Supplementary Insurance Information, Unearned premiums | 0 | 0 |
Supplementary Insurance Information, Other policy claims and benefits payable | $ 0 | $ 0 |
Financial Schedules Schedule 82
Financial Schedules Schedule IV - Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Life Insurance Assumed Ratio | 0.10% | 0.50% | 0.80% |
Direct Premiums, Life Insurance in Force | $ 4,967,856 | $ 4,997,641 | $ 4,958,369 |
Ceded Premiums, Life Insurance in Force | 503,685 | 522,821 | 516,933 |
Assumed Premiums, Life Insurance in Force | 5,564 | 22,915 | 36,766 |
Premiums, Net, Life Insurance in Force | 4,469,735 | 4,497,735 | 4,478,202 |
Direct Premiums Earned | 200,711 | 201,074 | 197,337 |
Ceded Premiums Earned | 3,133 | 3,349 | 3,210 |
Assumed Premiums Earned | 142 | 151 | 353 |
Premiums Earned, Net | $ 197,720 | $ 197,876 | $ 194,480 |
Contracts in Force Subject to Participation through Reinsurance, Ratio | 0.10% | 0.10% | 0.20% |
Life Insurance Segment [Member] | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Direct Premiums Earned | $ 193,534 | $ 193,604 | $ 189,644 |
Ceded Premiums Earned | 2,334 | 2,501 | 2,311 |
Assumed Premiums Earned | 142 | 151 | 353 |
Premiums Earned, Net | 191,342 | 191,254 | 187,686 |
Accident and Health Insurance Segment [Member] | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Direct Premiums Earned | 1,410 | 1,566 | 1,625 |
Ceded Premiums Earned | 18 | 20 | 26 |
Assumed Premiums Earned | 0 | 0 | 0 |
Premiums Earned, Net | 1,392 | 1,546 | 1,599 |
Property, Liability and Casualty Insurance Segment [Member] | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Direct Premiums Earned | 5,767 | 5,904 | 6,068 |
Ceded Premiums Earned | 781 | 828 | 873 |
Assumed Premiums Earned | 0 | 0 | 0 |
Premiums Earned, Net | $ 4,986 | $ 5,076 | $ 5,195 |
Uncategorized Items - cia-20171
Label | Element | Value |
AOCI Attributable to Parent [Member] | ||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | us-gaap_ComprehensiveIncomeNetOfTax | $ (12,263,000) |
Retained Earnings [Member] | ||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | us-gaap_ComprehensiveIncomeNetOfTax | $ (3,143,000) |