Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 02, 2018 | |
Entity Information [Line Items] | ||
Entity Registrant Name | CITIZENS INC | |
Entity Central Index Key | 24,090 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
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 (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investments: | ||
Fixed maturities available-for-sale, at fair value (cost: $1,193,211 and $935,977 in 2018 and 2017 respectively) | $ 1,200,154 | $ 974,609 |
Fixed maturities held-to-maturity, at amortized cost (fair value: $241,377 in 2017) | 0 | 233,961 |
Equity security | 15,529 | |
Equity securities, at fair value (cost: $15,289 in 2017) | 16,164 | |
Mortgage loans on real estate | 188 | 195 |
Policy loans | 79,012 | 73,735 |
Real estate held-for-investment (less $1,258 and $5,479 accumulated depreciation in 2018 and 2017, respectively | 5,743 | 7,416 |
Real estate held-for-sale (less $4,411 accumulated depreciation in 2018) | 1,483 | 0 |
Other long-term investments | 22 | 36 |
Total investments | 1,302,131 | 1,306,116 |
Cash and cash equivalents | 68,753 | 46,064 |
Accrued investment income | 18,389 | 19,062 |
Reinsurance recoverable | 3,626 | 3,715 |
Deferred policy acquisition costs | 158,253 | 167,063 |
Cost of customer relationships acquired | 16,163 | 17,499 |
Goodwill | 12,624 | 12,624 |
Other intangible assets | 958 | 961 |
Deferred tax assets | 0 | 50,797 |
Property and equipment, net | 6,329 | 6,624 |
Due premiums, net (less $1,564 and $1,611 allowance for doubtful accounts in 2018 and 2017, respectively) | 12,338 | 12,765 |
Prepaid expenses | 1,134 | 251 |
Other assets | 1,214 | 912 |
Total assets | 1,601,912 | 1,644,453 |
Future policy benefits reserves: | ||
Life insurance | 1,165,443 | 1,133,875 |
Annuities | 75,803 | 73,688 |
Accident and health | 923 | 990 |
Dividend accumulations | 25,513 | 23,713 |
Premiums paid in advance | 50,651 | 51,431 |
Policy claims payable | 7,327 | 8,610 |
Other policyholders' funds | 10,159 | 8,483 |
Total policy liabilities | 1,335,819 | 1,300,790 |
Commissions payable | 1,947 | 2,430 |
Federal income tax payable | 47,637 | 93,365 |
Deferred federal income tax liability | 10,374 | 0 |
Other liabilities | 25,396 | 24,355 |
Total liabilities | 1,421,173 | 1,420,940 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Accumulated deficit | (75,812) | (54,375) |
Accumulated other comprehensive income: | ||
Unrealized gains on securities, net of tax | 4,685 | 26,332 |
Treasury stock, at cost | (11,011) | (11,011) |
Total stockholders' equity | 180,739 | 223,513 |
Total liabilities and stockholders' equity | 1,601,912 | 1,644,453 |
Common Stock Class A [Member] | ||
Stockholders' equity: | ||
Common stock | 259,693 | 259,383 |
Common Stock Class B [Member] | ||
Stockholders' equity: | ||
Common stock | $ 3,184 | $ 3,184 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investments: | ||
Fixed maturities available-for-sale, cost | $ 1,193,211 | $ 935,977 |
Fixed maturities held-to-maturity, fair value | 0 | 241,377 |
Equity securities available-for-sale, cost | 15,289 | |
Real estate held for investment, accumulated depreciation | 1,258 | 5,479 |
Real estate held for sale, accumulated depreciation | 4,411 | 0 |
Due premiums, allowance for doubtful accounts | $ 1,564 | $ 1,611 |
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 (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Premiums: | ||||
Life insurance | $ 45,898 | $ 48,644 | $ 133,058 | $ 138,603 |
Accident and health insurance | 323 | 360 | 915 | 1,033 |
Property insurance | 1,208 | 1,243 | 3,615 | 3,731 |
Net investment income | 13,587 | 13,828 | 41,169 | 39,640 |
Realized investment gains (losses), net | (498) | (404) | (1,251) | 742 |
Other income | 643 | 660 | 930 | 1,015 |
Total revenue | 61,161 | 64,331 | 178,436 | 184,764 |
Insurance benefits paid or provided: | ||||
Claims and surrenders | 25,076 | 21,454 | 66,844 | 62,130 |
Increase in future policy benefit reserves | 1,653 | 19,597 | 32,816 | 51,953 |
Policyholders' dividends | 1,595 | 1,613 | 4,516 | 4,418 |
Total insurance benefits paid or provided | 28,324 | 42,664 | 104,176 | 118,501 |
Commissions | 8,656 | 10,801 | 26,284 | 30,620 |
Other general expenses | 12,402 | 7,254 | 33,375 | 26,765 |
Capitalization of deferred policy acquisition costs | (5,561) | (7,756) | (17,164) | (21,540) |
Amortization of deferred policy acquisition costs | 11,412 | 7,623 | 26,218 | 22,640 |
Amortization of cost of customer relationships acquired | 366 | 635 | 1,517 | 1,629 |
Total benefits and expenses | 55,599 | 61,221 | 174,406 | 178,615 |
Income (loss) before federal income tax | 5,562 | 3,110 | 4,030 | 6,149 |
Federal income tax expense (benefit) | 20,316 | (339) | 21,305 | 72 |
Net income (loss) | (14,754) | 3,449 | (17,275) | 6,077 |
Unrealized gains (losses) on available-for-sale debt securities: | ||||
Unrealized holding gains (losses) arising during period | (2,236) | 3,875 | (32,663) | 13,585 |
Reclassification adjustments for losses (gains) included in net income | 656 | 370 | 1,002 | 329 |
Unrealized gains (losses) on available-for-sale debt securities, net | (1,580) | 4,245 | (31,661) | 13,914 |
Income tax expense (benefit) on unrealized gains (losses) on available-for-sale securities | 454 | 1,486 | (5,852) | 4,870 |
Other comprehensive income (loss) | (2,034) | 2,759 | (25,809) | 9,044 |
Comprehensive income (loss) | $ (16,788) | $ 6,208 | $ (43,084) | $ 15,121 |
Common Stock Class A [Member] | ||||
Earnings Per Share [Abstract] | ||||
Basic and diluted earnings (loss) per share (in dollars per share) | $ (0.30) | $ 0.07 | $ (0.35) | $ 0.12 |
Common Stock Class B [Member] | ||||
Earnings Per Share [Abstract] | ||||
Basic and diluted earnings (loss) per share (in dollars per share) | $ (0.14) | $ 0.03 | $ (0.17) | $ 0.06 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholder's Equity Statement - USD ($) | Total | Accumulated deficit [Member] | Accumulated other comprehensive income [Member] | Treasury stock [Member] | Common Stock Class A [Member]Common stock [Member] | Common Stock Class B [Member]Common stock [Member] |
Balance at Dec. 31, 2016 | $ 249,100,000 | $ (16,248,000) | $ 13,792,000 | $ (11,011,000) | $ 259,383,000 | $ 3,184,000 |
Net income (loss) | 6,077,000 | 6,077,000 | 0 | 0 | 0 | 0 |
Unrealized investment gains (losses), net | 9,044,000 | 0 | 9,044,000 | 0 | 0 | 0 |
Comprehensive income (loss) | 15,121,000 | 6,077,000 | 9,044,000 | 0 | 0 | 0 |
Stock-based compensation | 0 | |||||
Balance at Sep. 30, 2017 | 264,221,000 | (10,171,000) | 22,836,000 | (11,011,000) | 259,383,000 | 3,184,000 |
Accounting standards adopted January 1, 2018 | 0 | (4,162,000) | 4,162,000 | 0 | 0 | 0 |
Balance at January 1, 2018 | 223,513,000 | (58,537,000) | 30,494,000 | (11,011,000) | 259,383,000 | 3,184,000 |
Balance at Dec. 31, 2017 | 223,513,000 | (54,375,000) | 26,332,000 | (11,011,000) | 259,383,000 | 3,184,000 |
Net income (loss) | (17,275,000) | (17,275,000) | 0 | 0 | 0 | 0 |
Unrealized investment gains (losses), net | (26,629,000) | 0 | (26,629,000) | 0 | 0 | 0 |
Unrealized gain from held-to-maturity securities transferred to available-for-sale, net | 820,000 | 0 | 820,000 | 0 | 0 | 0 |
Comprehensive income (loss) | (43,084,000) | (17,275,000) | (25,809,000) | 0 | 0 | 0 |
Stock-based compensation | 310,000 | 0 | 0 | 0 | 310,000 | 0 |
Balance at Sep. 30, 2018 | $ 180,739,000 | $ (75,812,000) | $ 4,685,000 | $ (11,011,000) | $ 259,693,000 | $ 3,184,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (17,275,000) | $ 6,077,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Realized (gains) losses on sale of investments and other assets | 1,251,000 | (742,000) |
Net deferred policy acquisition costs | 9,054,000 | 1,100,000 |
Amortization of cost of customer relationships acquired | 1,517,000 | 1,629,000 |
Depreciation | 921,000 | 763,000 |
Amortization of premiums and discounts on investments | 12,781,000 | 12,398,000 |
Stock-based compensation | 310,000 | 0 |
Deferred federal income tax benefit | 67,040,000 | (2,975,000) |
Change in: | ||
Accrued investment income | 673,000 | (340,000) |
Reinsurance recoverable | 89,000 | (55,000) |
Due premiums | 427,000 | 1,947,000 |
Future policy benefit reserves | 33,425,000 | 51,876,000 |
Other policyholders' liabilities | 1,413,000 | 5,619,000 |
Federal income tax receivable | (45,744,000) | 2,532,000 |
Commissions payable and other liabilities | 558,000 | (10,307,000) |
Other, net | (1,205,000) | (663,000) |
Net cash provided by operating activities | 65,235,000 | 68,859,000 |
Cash flows from investing activities: | ||
Purchase of fixed maturities, available-for-sale | (109,642,000) | (135,538,000) |
Sale of fixed maturities, available-for-sale | 1,084,000 | 508,000 |
Maturities and calls of fixed maturities, available-for-sale | 51,190,000 | 65,456,000 |
Maturities and calls of fixed maturities, held-to-maturity | 20,699,000 | 7,685,000 |
Sale of equity security | 0 | |
Sale of equity securities, available-for-sale | 1,940,000 | |
Calls of equity securities | 0 | |
Calls of equity securities, available-for-sale | 450,000 | |
Purchase of equity securities | (9,000) | |
Purchase of equity securities, available-for-sale | 0 | |
Principal payments on mortgage loans | 7,000 | 35,000 |
Increase in policy loans, net | (5,277,000) | (4,543,000) |
Sale of other long-term investments and real estate | 14,000 | 3,040,000 |
Sale of property and equipment | 0 | 41,000 |
Purchase of property and equipment | (437,000) | (1,223,000) |
Maturity of short-term investments | 0 | 500,000 |
Net cash used in investing activities | (42,371,000) | (61,649,000) |
Cash flows from financing activities: | ||
Annuity deposits | 5,222,000 | 7,240,000 |
Annuity withdrawals | (5,397,000) | (4,960,000) |
Net cash provided by financing activities | (175,000) | 2,280,000 |
Net increase (decrease) in cash and cash equivalents | 22,689,000 | 9,490,000 |
Cash and cash equivalents at beginning of year | 46,064,000 | 35,510,000 |
Cash and cash equivalents at end of period | 68,753,000 | 45,000,000 |
Supplemental Disclosures of Operation Activities | ||
Cash paid (received) during the period for income taxes, net | $ 0 | $ 515,000 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows Supplemental Noncash Investing & Financing Activities Statement - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Supplemental Disclosure of Noncash Investing and Financing Activities [Abstract] | ||
Noncash or Part Noncash Acquisition, Investments Acquired | $ 2.5 | $ 4.8 |
Financial Statements
Financial Statements | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Financial Statements Basis of Presentation and Consolidation 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"), CICA Life Ltd. ("CICA Ltd."), Security Plan Life Insurance Company ("SPLIC"), Security Plan Fire Insurance Company ("SPFIC"), Citizens National Life Insurance Company ("CNLIC"), Magnolia Guaranty Life Insurance Company ("MGLIC"), Computing Technology,, Inc. ("CTI"), and Insurance Investors, Inc. ("III"). Citizens and its wholly-owned subsidiaries are collectively referred to as "the Company," "we," "us" or "our." The consolidated statements of financial position as of September 30, 2018 , the consolidated statements of comprehensive income for the three and nine -months ended September 30, 2018 and September 30, 2017 and the consolidated statements of stockholders' equity and cash flows for the nine -month periods ended September 30, 2018 and September 30, 2017 , have been prepared by the Company without audit. In the opinion of management, all normal and recurring adjustments to present fairly the financial position, results of operations, and changes in cash flows at September 30, 2018 and for comparative periods have been made. The consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, the consolidated financial statements do not include all the information and footnotes required for complete financial statements and should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017 . Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. We provide primarily life insurance and a small amount of health insurance policies through our insurance subsidiaries: CICA, CICA Ltd., SPLIC, MGLIC and CNLIC. Until the end of 2016, CICA and CNLIC issued ordinary whole-life policies, credit life and disability, burial insurance, pre-need policies, and accident and health related policies, throughout the Midwest and southern United States. Beginning January 1, 2017, CICA and CNLIC ceased selling life products domestically. Prior to July 1, 2018, CICA primarily issued ordinary whole-life and endowment policies to non-U.S. residents. From and after July 1, 2018, CICA Ltd. will issue such policies. Effective on July 1, 2018, the Company effected a novation of all of the international policies issued by CICA to CICA Ltd., a newly established Bermuda entity that began operations in July 2018. While this novation transaction has been eliminated in consolidation of affiliated entities, there are tax effects reflected in the consolidated financial statements as a result of the transaction being executed between our subsidiaries that reside in different tax jurisdictions. The tax accounting implications of the novation transaction are further described in Note 9 - Income Taxes in these notes to the consolidated financial statements. SPLIC offers final expense and home service life insurance in Louisiana, Arkansas and Mississippi, and SPFIC, a wholly-owned subsidiary of SPLIC, writes a limited amount of property insurance in Louisiana. MGLIC provides industrial life policies through independent funeral homes in Mississippi. CTI provides data processing systems and services, as well as furniture and equipment, to the Company. III is currently not active. We plan to dissolve III and merge it into Citizens. As of July 1, 2018, we implemented a new actuarial valuation software solution impacting the life segment that provides enhanced modeling capabilities for ordinary whole life and endowment policies of CICA and CICA Ltd., which are included in the life insurance segment. The impact of this system conversion resulted in changes in estimates due to refinements reflected as a decrease in reserves of $10.2 million and a decrease in DAC of $4.3 million , before tax. The total impact of this system conversion reflected in the accompanying consolidated financial statements as of and for the three and nine months ended September 30, 2018 is summarized in the table below. Impact on financial balances: Increase (Decrease) Consolidated Statements of Financial Position (In thousands) Deferred policy acquisition costs $ (4,339 ) Future policy benefit reserves: Life insurance (10,197 ) Consolidated Statements of Comprehensive Income Decrease in future policy benefit reserves (10,197 ) Amortization of deferred policy acquisition costs 4,339 Income (loss) before federal income tax 5,858 Federal income tax expense 1,230 Net income (loss) $ 4,628 We are continuing to convert other information to the new valuation system and will report those items as information becomes available and in accordance with applicable accounting guidance. It is our expectation that we will convert SPLIC's insurance products to the new valuation system during 2019. Use of Estimates The preparation of consolidated 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 the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in the evaluation of other-than-temporary impairments on debt and equity securities, actuarially determined assets and liabilities and assumptions, tests of goodwill impairment, valuation allowance on deferred tax assets, valuation of uncertain tax positions and contingencies relating to litigation and regulatory matters. Certain of these estimates are particularly sensitive to market conditions, and deterioration and/or volatility in the worldwide debt or equity markets could have a material impact on the consolidated financial statements. Significant Accounting Policies For a description of significant accounting policies, see Note 1 of the notes to consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2017 , which should be read in conjunction with these accompanying consolidated financial statements. |
Accounting Pronouncements
Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Accounting Pronouncements Accounting Standards Recently Adopted On February 14, 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . It allows a reclassification from accumulated other comprehensive income ("AOCI") to retained earnings of the stranded tax effects that occurred due to the enactment of the Tax Cuts and Jobs Act of 2017 (the "New Tax Act"). The updated guidance is effective for reporting periods beginning after December 15, 2018 and is to be applied retrospectively to each period in which there are items impacted by the New Tax Act remaining in AOCI or at the beginning of the period of adoption. Early adoption is permitted. The Company adopted the updated guidance effective January 1, 2018 and elected to reclassify the income tax effects of the New Tax Act from AOCI to accumulated deficit as of January 1, 2018. This reclassification resulted in an increase in accumulated deficit of $4.7 million as of January 1, 2018 and an increase in AOCI by the same amount. In January 2016, the FASB released ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities . The updated guidance requires equity investments, except those accounted for under the equity method of accounting, that have readily determinable fair values to be measured at fair value with any changes in fair value recognized in net income. Equity securities that do not have readily determinable fair values may be measured at estimated fair value or cost less impairment, if any, adjusted for subsequent observable price changes, with changes in the carrying value recognized in net income. A qualitative assessment for impairment is required for equity investments without readily determinable fair values. The updated guidance also eliminates the requirement to disclose the method and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost on the balance sheet. The updated guidance was effective for the first quarter ended March 31, 2018. The adoption of this guidance resulted in the recognition of $560,000 of net after-tax unrealized gains on equity investments as a cumulative effect adjustment that decreased retained deficit as of January 1, 2018 and decreased AOCI by the same amount. The Company elected to report changes in the fair value of equity investments in realized investment gains (losses), net. At December 31, 2017, equity investments were classified as available-for-sale on the Company's balance sheet. However, upon adoption, the updated guidance eliminated the available-for-sale balance sheet classification for equity investments. Accounting Standards Not Yet Adopted 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 the rights and obligations created by those leases on the balance sheet. The ASU also will require additional disclosures so investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the consolidated financial statements. The accounting by organizations that own the assets leased by the lessee, also known as lessor accounting, will remain largely unchanged from current GAAP. However, the ASU contains some targeted improvements that are intended to align, where necessary, lessor accounting with the lessee accounting model and with the updated revenue recognition guidance issued in 2014. The ASU on leases will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company has several lease agreements, such as district office locations related to our Home Service segment, which are currently considered operating leases, and therefore, not recognized on the Company’s balance sheet. The Company intends to adopt this standard effective January 1, 2019 and expects the new guidance will require these lease agreements to be recognized on the balance sheet as a right-of-use asset and a corresponding lease liability. The Company is nearing completion of its effort to compile a complete inventory of arrangements containing a lease and accumulating the lease data necessary to apply the amended guidance. The Company is evaluating the impact this guidance will have on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) , with the main objective to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The ASU requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. Credit losses on available-for-sale debt securities should be measured in a manner similar to current U.S. GAAP; however, the credit losses are recorded through an allowance for credit losses rather than as a write-down. This approach is an improvement to current U.S. GAAP because an entity will be able to record reversals of credit losses (in situations in which the estimate of credit losses declines) in current period net income, which in turn should align the income statement recognition of credit losses with the reporting period in which changes occur. Current U.S. GAAP prohibits reflecting those improvements in current-period earnings. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is evaluating the impact this guidance will have on our consolidated financial statements, but it is not expected to have a material impact on the Company's consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this ASU shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The Company has a large portfolio of callable debt securities purchased at a premium. As such, the Company had already been amortizing the premium to the earliest call date to reduce volatility in earnings by eliminating reporting large realized losses when debt securities are called. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting. This ASU is intended to simplify aspects of share-based compensation issued to non-employees by making the guidance consistent with the accounting for employee share-based compensation. ASU 2018-07 is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods, with early adoption permitted but no earlier than an entity’s adoption date of Topic 606. We will adopt the provisions of this ASU in the first quarter of 2019. The Company is evaluating the impact this guidance will have on our consolidated financial statements. In September 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU requires an entity in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs should be presented in the same line item on the balance sheet as amounts prepaid for the hosted service, if any (generally as an “other asset”). The capitalized costs will be amortized over the term of the hosting arrangement, with the amortization expense being presented in the same income statement line item as the fees paid for the hosted service. ASU 2018-15 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. We are evaluating the impact of this guidance on our limited cloud computing arrangements and our consolidated financial statements. In July 2018, the FASB issued ASU No. 2018-11, Leases - Targeted Improvements to provide entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU No. 2016-02. Specifically, under the amendments in ASU 2018-11: (1) entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. The amendments have the same effective date as ASU 2016-02 (January 1, 2019 for the Company). The Company expects to elect both transition options. ASU 2018-11 is not expected to have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts. This ASU amends four key areas of the accounting and impacts disclosures for long-duration insurance and investment contracts: Requires updated assumptions for liability measurement. Assumptions used to measure the liability for traditional insurance contracts, which are typically determined at contract inception, will now be reviewed at least annually, and, if there is a change, updated, with the effect recorded in net income; Standardizes the liability discount rate. The liability discount rate will be a market-observable discount rate (upper-medium grade fixed-income instrument yield), with the effect of rate changes recorded in other comprehensive income; Provides greater consistency in measurement of market risk benefits. The two previous measurement models have been reduced to one measurement model (fair value), resulting in greater uniformity across similar market-based benefits and better alignment with the fair value measurement of derivatives used to hedge capital market risk; Simplifies amortization of deferred acquisition costs. Previous earnings-based amortization methods have been replaced with a more level amortization basis; and Requires enhanced disclosures. The new disclosures include rollforwards and information about significant assumptions and the effects of changes in those assumptions. For calendar-year public companies, the changes will be effective in 2021. The Company is evaluating the impact this guidance will have on our consolidated financial statements and will begin planning for adoption in 2019. This new guidance is expected to have a material impact on our consolidated financial statements as we consider this to be one of the most substantial changes in the insurance industry guidance in the last 40 years. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. Entities are also allowed to elect early adoption the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until their effective date. As ASU No. 2018-13 only revises disclosure requirements, it will not have a material impact on the Company’s consolidated financial statements. No other new accounting pronouncement issued or effective during the fiscal year had, or is expected to have, a material impact on our consolidated financial statements. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting Information, Operating Income (Loss) [Abstract] | |
Segment Information | Segment 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 ("Other Non-Insurance Enterprises") portions of the Company, which primarily include the Company's IT and Corporate-support functions, which are included in the tables presented below to properly reconcile the segment information with the consolidated financial statements of the Company. The accounting policies of the segments and other non-insurance enterprises are in accordance with U.S. GAAP and are the same as those used in the preparation of the consolidated financial statements. The Company evaluates profit and loss performance based on U.S. GAAP income before federal income taxes for its two reportable segments. The Company's Other Non-Insurance Enterprises are the only reportable difference between segments and consolidated operations. Three Months Ended September 30, 2018 Life Home Other Consolidated (In thousands) Revenues: Premiums $ 35,784 11,645 — 47,429 Net investment income 10,062 3,276 249 13,587 Realized investment gains (losses), net (475 ) (32 ) 9 (498 ) Other income 643 — — 643 Total revenue 46,014 14,889 258 61,161 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 19,212 5,864 — 25,076 Increase in future policy benefit reserves 544 1,109 — 1,653 Policyholders' dividends 1,581 14 — 1,595 Total insurance benefits paid or provided 21,337 6,987 — 28,324 Commissions 4,712 3,944 — 8,656 Other general expenses 6,583 4,502 1,317 12,402 Capitalization of deferred policy acquisition costs (3,873 ) (1,688 ) — (5,561 ) Amortization of deferred policy acquisition costs 10,132 1,280 — 11,412 Amortization of cost of customer relationships acquired 150 216 — 366 Total benefits and expenses 39,041 15,241 1,317 55,599 Income (loss) before income tax expense $ 6,973 (352 ) (1,059 ) 5,562 Nine Months Ended September 30, 2018 Life Insurance Home Service Insurance Other Non-Insurance Enterprises Consolidated (In thousands) Revenues: Premiums $ 102,537 35,051 — 137,588 Net investment income 30,331 9,894 944 41,169 Realized investment losses, net (684 ) (535 ) (32 ) (1,251 ) Other income (loss) 931 (1 ) — 930 Total revenue 133,115 44,409 912 178,436 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 49,522 17,322 — 66,844 Increase in future policy benefit reserves 29,509 3,307 — 32,816 Policyholders' dividends 4,483 33 — 4,516 Total insurance benefits paid or provided 83,514 20,662 — 104,176 Commissions 14,717 11,567 — 26,284 Other general expenses 12,607 15,438 5,330 33,375 Capitalization of deferred policy acquisition costs (12,663 ) (4,501 ) — (17,164 ) Amortization of deferred policy acquisition costs 22,912 3,306 — 26,218 Amortization of cost of customer relationships acquired 434 1,083 — 1,517 Total benefits and expenses 121,521 47,555 5,330 174,406 Income (loss) before income tax expense $ 11,594 (3,146 ) (4,418 ) 4,030 Three Months Ended September 30, 2017 Life Home Other Consolidated (In thousands) Revenues: Premiums $ 38,472 11,775 — 50,247 Net investment income 10,051 3,355 422 13,828 Realized investment losses, net (355 ) (49 ) — (404 ) Other income 561 — 99 660 Total revenue 48,729 15,081 521 64,331 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 15,700 5,754 — 21,454 Increase in future policy benefit reserves 18,045 1,552 — 19,597 Policyholders' dividends 1,602 11 — 1,613 Total insurance benefits paid or provided 35,347 7,317 — 42,664 Commissions 6,892 3,909 — 10,801 Other general expenses 2,200 4,025 1,029 7,254 Capitalization of deferred policy acquisition costs (6,242 ) (1,514 ) — (7,756 ) Amortization of deferred policy acquisition costs 6,431 1,192 — 7,623 Amortization of cost of customer relationships acquired 118 517 — 635 Total benefits and expenses 44,746 15,446 1,029 61,221 Income (loss) before income tax expense $ 3,983 (365 ) (508 ) 3,110 Nine Months Ended September 30, 2017 Life Insurance Home Service Insurance Other Non-Insurance Enterprises Consolidated (In thousands) Revenues: Premiums $ 107,995 35,372 — 143,367 Net investment income 28,678 9,864 1,098 39,640 Realized investment gains (losses), net (419 ) 1,161 — 742 Other income 856 2 157 1,015 Total revenue 137,110 46,399 1,255 184,764 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 45,218 16,912 — 62,130 Increase in future policy benefit reserves 47,818 4,135 — 51,953 Policyholders' dividends 4,387 31 — 4,418 Total insurance benefits paid or provided 97,423 21,078 — 118,501 Commissions 18,765 11,855 — 30,620 Other general expenses 10,399 13,182 3,184 26,765 Capitalization of deferred policy acquisition costs (16,843 ) (4,697 ) — (21,540 ) Amortization of deferred policy acquisition costs 19,350 3,290 — 22,640 Amortization of cost of customer relationships acquired 434 1,195 — 1,629 Total benefits and expenses 129,528 45,903 3,184 178,615 Income (loss) before income tax expense $ 7,582 496 (1,929 ) 6,149 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following tables set forth the computation of basic and diluted earnings per share. Three Months Ended September 30, 2018 September 30, 2017 (In thousands, Basic and diluted earnings per share: Numerator: Net income (loss) $ (14,754 ) 3,449 Net income (loss) allocated to Class A common stock $ (14,605 ) 3,415 Net income (loss) allocated to Class B common stock (149 ) 34 Net income (loss) $ (14,754 ) 3,449 Denominator: Weighted average shares of Class A outstanding - basic 49,080 49,080 Weighted average shares of Class A outstanding - diluted 49,127 49,080 Weighted average shares of Class B outstanding - basic and diluted 1,002 1,002 Basic and diluted earnings (loss) per share of Class A common stock $ (0.30 ) 0.07 Basic and diluted earnings (loss) per share of Class B common stock (0.14 ) 0.03 Nine Months Ended September 30, 2018 September 30, 2017 (In thousands, except per share amounts) Basic and diluted earnings per share: Numerator: Net income (loss) $ (17,275 ) 6,077 Net income (loss) allocated to Class A common stock $ (17,101 ) 6,016 Net income (loss) allocated to Class B common stock (174 ) 61 Net income (loss) $ (17,275 ) 6,077 Denominator: Weighted average shares of Class A outstanding - basic 49,080 49,080 Weighted average shares of Class A outstanding - diluted 49,127 49,080 Weighted average shares of Class B outstanding - basic and diluted 1,002 1,002 Basic and diluted earnings (loss) per share of Class A common stock $ (0.35 ) 0.12 Basic and diluted earnings (loss) per share of Class B common stock (0.17 ) 0.06 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2018 | |
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 87.6% of total cash, cash equivalents and investments at September 30, 2018 . The Company's cash, cash equivalents and investments are listed below. September 30, 2018 December 31, 2017 Carrying Value % of Total Carrying Value Carrying Value % of Total Carrying Value (In thousands) (In thousands) Fixed maturity securities $ 1,200,154 87.6 $ 1,208,570 89.3 Equity securities 15,529 1.1 16,164 1.2 Mortgage loans 188 — 195 — Policy loans 79,012 5.8 73,735 5.5 Real estate and other long-term investments 7,248 0.5 7,452 0.6 Cash and cash equivalents 68,753 5.0 46,064 3.4 Total cash, cash equivalents and investments $ 1,370,884 100.0 $ 1,352,180 100.0 Cash and cash equivalents increased during the current quarter ended September 30, 2018 as we held cash in anticipation of the novation transaction accounting settlement and those funds had not yet been reinvested into fixed maturities as of the end of the current reporting period. The following tables represent the cost, gross unrealized gains and losses and fair value for fixed maturities as of the periods indicated. September 30, 2018 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Fixed maturities: Available-for-sale: U.S. Treasury securities $ 9,887 1,250 6 11,131 U.S. Government-sponsored enterprises 3,546 662 — 4,208 States and political subdivisions 740,333 4,973 4,376 740,930 Foreign governments 118 — 1 117 Corporate 404,183 9,655 4,706 409,132 Commercial mortgage-backed 3,662 13 49 3,626 Residential mortgage-backed 31,482 105 577 31,010 Total fixed maturities $ 1,193,211 16,658 9,715 1,200,154 We reclassified all of our fixed maturity holdings that were previously classified as held-to-maturity to available-for-sale based upon our intent and investment strategy as of September 30, 2018 . The net carrying value of the fixed maturities held-to-maturity reclassified as available-for-sale amounted to $209.7 million and resulted in a net unrealized gain of $0.5 million being recorded in other comprehensive income before tax. 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 The majority of the Company's equity securities are diversified stock and bond mutual funds. September 30, 2018 December 31, 2017 Fair Value Fair Value (In thousands) Equity securities: Stock mutual funds $ 3,196 3,217 Bond mutual funds 12,096 12,367 Common stock 96 24 Preferred stock 141 556 Total equity securities $ 15,529 16,164 The Company recognized net realized gain of $156,000 and net realized losses of $232,000 on equity securities held for the three and nine months ended September 30, 2018 , respectively. Valuation of Investments in Fixed Maturity and Equity Securities Held-to-maturity securities are reported in the consolidated financial statements at amortized cost and available-for-sale securities are reported at fair value. Equity securities are measured at fair value with the change in fair value recorded through net income pursuant to the adoption of ASU 2016-01 as described in Note 2. The Company monitors all debt 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. The assessment of whether other-than-temporary impairments ("OTTI") have occurred is based on a case-by-case evaluation of underlying reasons for the decline in fair value. The Company determines other-than-temporary impairment by reviewing relevant evidence related to the specific security issuer as well as the Company's intent to sell the security, or if it is more likely than not that the Company would be required to sell a security before recovery of its amortized cost. When an other-than-temporary impairment has occurred, the amount of the other-than-temporary impairment recognized in earnings depends on whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis. If the Company intends to sell the security or it is more likely that the Company will be required to sell the security before recovery of its amortized cost basis, the other-than-temporary impairment is recognized in earnings equal to the entire difference between the investment's cost and its fair value at the balance sheet date. If the Company 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, the other-than-temporary impairment is separated into the following: (a) the amount representing the credit loss; and (b) the amount related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to other factors is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the other-than-temporary impairment recognized in earnings becomes the new amortized cost basis of the investment. The new amortized cost basis is not adjusted for subsequent recoveries in fair value. The Company evaluates whether a credit impairment exists for fixed maturity securities by considering primarily the following factors: (a) changes in the financial condition of the security's underlying collateral; (b) whether the issuer is current on contractually obligated interest and principal payments; (c) changes in the financial condition, credit rating and near-term prospects of the issuer; (d) the length of time to which the fair value has been less than the amortized cost of the security; and (e) the payment structure of the security. The Company's best estimate of expected future cash flows used to determine the credit loss amount is a quantitative and qualitative process. Quantitative review includes information received from third party sources such as financial statements, pricing and rating changes, liquidity and other statistical information. Qualitative factors include judgments related to business strategies, economic impacts on the issuer and overall judgment related to estimates and industry factors. The Company's best estimate of future cash flows involves assumptions including, but not limited to, various performance indicators, such as historical and projected default and recovery rates, credit ratings, and current delinquency rates. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries, which may include estimating the underlying collateral value. In addition, projections of expected future debt security cash flows may change based upon new information regarding the performance of the issuer. There were other-than-temporary impairments recorded on several bond issuers for the three and nine months ended September 30, 2018 of $551,000 and $776,000 , respectively. No impairments were recognized on equity securities for the three and nine months ended September 30, 2018. No other-than-temporary impairments were recorded for the three months ended September 30, 2017 but one equity security totaling $17,000 was impaired during the nine months ended September 30, 2017. The following tables present the fair values and gross unrealized losses of fixed maturity securities that have remained in a continuous unrealized loss position for the periods indicated. September 30, 2018 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: U.S. Treasury securities $ 757 6 2 — — — 757 6 2 States and political subdivisions 494,116 3,659 479 31,452 717 42 525,568 4,376 521 Corporate 206,965 4,193 160 6,366 513 6 213,331 4,706 166 Commercial mortgage-backed 2,725 49 4 — — — 2,725 49 4 Residential mortgage-backed 27,048 574 21 101 3 3 27,149 577 24 Foreign 117 1 1 — — — 117 1 1 Total available-for-sale securities $ 731,728 8,482 667 37,919 1,233 51 769,647 9,715 718 As of September 30, 2018 , the Company had 51 available-for-sale fixed maturity securities that were in an unrealized loss position for greater than 12 months. 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 equity securities $ 95 6 1 — — — 95 6 1 We have reviewed these securities in an unrealized loss position for the periods ended September 30, 2018 and December 31, 2017 and determined that no other-than-temporary impairment exists that have not been recognized based on our evaluation of the credit worthiness of the issuers and the fact that we do not intend to sell the investments nor is it likely that we will be required to sell the securities before recovery of their amortized cost bases which may be maturity. We continue to monitor all securities on an on-going basis and future information may become available which could result in other-than-temporary impairments being recorded. The amortized cost and fair value of fixed maturity securities at September 30, 2018 by contractual maturity are shown in the table 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 final stated maturity. September 30, 2018 Amortized Cost Fair Value (In thousands) Fixed maturity securities: Due in one year or less $ 43,088 43,190 Due after one year through five years 142,943 146,280 Due after five years through ten years 230,995 232,627 Due after ten years 776,185 778,057 Total fixed maturity securities $ 1,193,211 1,200,154 The Company uses the specific identification method of the individual security to determine the cost basis used in the calculation of realized gains and losses related to security sales. Fixed Maturities, Available-for-Sale Equity Securities Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2018 2017 2018 2017 2018 2017 2018 2017 (In thousands) Proceeds $ 1,084 — 1,084 508 — — — 1,940 Gross realized gains $ 54 — 53 6 — — — — Gross realized losses $ — — — — — — — 30 There was one sale of available-for-sale fixed maturity securities for the three and nine months ended September 30, 2018 . No available-for-sale fixed maturity securities were sold during the three months ended September 30, 2017 . One available-for-sale fixed maturity security was sold during the nine months ended September 30, 2017 . No equity securities or held-to-maturity securities were sold during the three and nine months ended September 30, 2018 and 2017 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
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 available-for-sale fixed maturity securities, which are carried at fair value. We also report our equity securities at fair value with changes in fair value reported through the consolidated statements of comprehensive income. 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 and actively traded mutual fund and stock investments. 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 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. There were no securities in this category at September 30, 2018 . The following tables set forth our assets that are measured at fair value on a recurring basis as of the dates indicated. September 30, 2018 Financial Assets Level 1 Level 2 Level 3 Total Fair Value (In thousands) Available-for-sale investments Fixed maturities: U.S. Treasury and U.S. Government-sponsored enterprises $ 11,131 4,208 — 15,339 States and political subdivisions — 740,930 — 740,930 Corporate 211 408,921 — 409,132 Commercial mortgage-backed — 3,626 — 3,626 Residential mortgage-backed — 31,010 — 31,010 Foreign governments — 117 — 117 Total fixed maturities available-for-sale 11,342 1,188,812 — 1,200,154 Equity securities Stock mutual funds 3,196 — — 3,196 Bond mutual funds 12,096 — — 12,096 Common stock 96 — — 96 Non-redeemable preferred stock 141 — — 141 Total equity securities 15,529 — — 15,529 Total financial assets $ 26,871 1,188,812 — 1,215,683 December 31, 2017 Financial Assets Level 1 Level 2 Level 3 Total Fair Value (In thousands) Available-for-sale investments 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 available-for-sale 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 Preferred stock 556 — — 556 Total equity securities 16,164 — — 16,164 Total financial assets $ 27,972 962,801 — 990,773 Financial Instruments Valuation Fixed maturity securities, available-for-sale . At September 30, 2018 , our fixed maturity securities, valued using a third-party pricing source, totaled $1,188.8 million for Level 2 assets and comprised 97.8% of total reported fair value of our financial assets. The Level 1 and Level 2 valuations are reviewed and updated 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 annually relative to the third-party pricing models and review model parameters for reasonableness. There were no Level 3 assets at September 30, 2018 . For the nine months ended September 30, 2018 , 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. Equity securities . Our equity securities are classified as Level 1 assets as their fair values are based upon quoted market prices. 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 are reported as transfers in and out of Level 3 at the beginning fair value for the reporting period in which the changes occur. There were no transfers in or out of Level 3. 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 instruments. 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 not otherwise disclosed for the periods indicated are as follows: September 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Financial assets: Fixed maturities, held-to-maturity $ — — 233,961 241,377 Mortgage loans 188 224 195 228 Policy loans 79,012 79,012 73,735 73,735 Cash and cash equivalents 68,753 68,753 46,064 46,064 Financial liabilities: Annuity - investment contracts 56,085 53,247 55,035 57,575 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 a discount rate and estimates of future cash flows. Mortgage loans are secured principally by residential properties. Weighted average interest rates for these loans were approximately 6.56% at September 30, 2018 and 6.60% at December 31, 2017 . At September 30, 2018 , maturities ranged from 20 to 24 years. Management estimated the fair value using an annual interest rate of 6.25% at September 30, 2018 . Our mortgage loans are considered Level 3 assets in the fair value hierarchy. Policy loans had a weighted average annual interest rate of 7.7% as of September 30, 2018 and December 31, 2017 , and no specified maturity dates. The aggregate fair value of policy loans approximates the carrying value reflected on the consolidated balance sheets. 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 we have inforce, cannot be valued separately and are not marketable. Therefore, the fair value of policy loans approximates the carrying value and policy loans are considered Level 3 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 assets, was estimated at September 30, 2018 using discounted cash flows based upon spot rates ranging from 2.56% to 4.32% 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. |
Short Duration Contracts
Short Duration Contracts | 9 Months Ended |
Sep. 30, 2018 | |
Short Duration Contracts [Abstract] | |
Short-Duration Insurance and Deposit Contracts [Text Block] | 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 following table presents information on changes in the liability for credit life, credit disability, and property policy and contract claims for the periods ended September 30, 2018 and September 30, 2017 . September 30, 2018 2017 (In thousands) Policy claims payable at January 1, $ 570 543 Less: reinsurance recoverable — — Net balance at January 1, 570 543 Add claims incurred, related to: Current year 1,441 1,435 Prior years (176 ) (11 ) 1,265 1,424 Deduct claims paid, related to: Current year 1,163 1,106 Prior years 310 407 1,473 1,513 Net balance September 30, 362 454 Plus: reinsurance recoverable — — Policy claims payable, September 30, $ 362 454 Prior year development is due to normal claim settlements and actuarial changes in claims payable estimates. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Qualification of Life Products As of December 31, 2014, we determined 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 being 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 that we will not remediate our endowments and life products under IRC Section 7702 that we have sold to non-U.S. citizens but will propose an offer to the Internal Revenue Service ("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 endorsed the majority of the affected domestic annuity contracts to comply with the IRC in December 2017 and we have initiated discussions with the IRS 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 as life insurance 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 September 30, 2018 of $8.9 million comprised of projected IRS toll charges and fees reported in other general expenses of $7.8 million and reserve increases to bring policies into compliance totaling $1.1 million . The range of financial estimates relative to this issue is $4.5 million to $52.5 million . At December 31, 2017 , the best estimate liability was $12.5 million and the probability weighted range of financial estimates relative to this issue was $5.9 million to $48.2 million . Our liability and range disclosures are evaluated each reporting period and reflect our continued refinement of estimates and considerations as we prepare to submit settlement offers to the IRS related to these matters. The estimated range includes projected toll charges and fees payable to the IRS, as well as any other costs attributed to remediation of non-compliant domestic life insurance 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 charges 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 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 operation 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 involve management’s judgment based upon a variety of factors known at the time. We expect to incur additional costs in 2018 associated with these issues. We believe these costs could be an additional $0.5 million to $1.5 million . Due to the uncertainty of actions, there may be additional costs, but they cannot be estimated with any reliability. Actual amounts incurred may exceed this estimate and will be recorded as they become probable and can be reasonably estimated. 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 active and there has been no activity related 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 its 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 reasonably estimate any of these possible amounts. 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. |
Income Tax
Income Tax | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Beginning in 2018, the statutory tax rate is 21% . In accordance with the SEC's Staff Accounting Bulletin No. 118 ("SAB 118"), the Company recorded provisional amounts related to the impacts of the New Tax Act as of December 31, 2017, including but not limited to the change in corporate tax rate and immediate expensing of certain capital assets. During the current quarter, the Company has recorded provisional amounts related to the impacts of measuring tax reserves under IRC Section 807, as revised by the New Tax Act. As of September 30, 2018, the impacts recorded related to the New Tax Act continue to be considered provisional estimates due to complexities and ambiguities in the 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. We will continue our analysis of the New Tax Act and will record an update to our provisional amount if needed during the measurement period allowed by SAB 118. CICA Ltd., a wholly owned subsidiary of Citizens, is considered a controlled foreign corporation for federal tax purposes. As a result, the insurance activity of CICA Ltd. is subject to Subpart F of the IRC and is included in Citizens’ taxable income. As of September 30, 2018, the Subpart F income inclusion generated $18.7 million of federal income tax expense and this amount was largely driven by the impact of the novation transaction. The novation transaction also resulted in somewhat offsetting adjustments to the current tax liability for CICA, notably an increased amortization of DAC under Section 848 of the IRC, a reduction of premium income and a release of the $52.1 million uncertain tax position related to tax reserves on product qualification issues. Our provision for income taxes may not have the customary relationship of taxes to income. A reconciliation between the U.S. corporate income tax rate and the effective income tax rate is as follows: Nine Months Ended September 30, 2018 2017 Amount % Amount % (In thousands, except for %) Expected tax expense (benefit) $ 846 21.0 % $ 2,152 35.0 % Tax-exempt interest and dividends-received deduction (126 ) (3.1 )% (336 ) (5.5 )% Effect of graduated rates — — % (35 ) (0.6 )% Effect of uncertain tax position 2,688 66.7 % (1,011 ) (16.4 )% Nondeductible costs to remediate tax compliance issue (735 ) (18.2 )% (997 ) (16.2 )% CICA Ltd. Subpart F income 18,657 462.9 % — — % Other (25 ) (0.6 )% 299 4.9 % Total income tax expense $ 21,305 528.7 % $ 72 1.2 % A reconciliation of federal income tax expense above is computed by applying the federal income tax rate of 21% in 2018 and 35.0% in 2017 to income before federal income tax expense. Income tax expense consists of: Nine Months Ended September 30, 2018 2017 (In thousands) Current $ (45,736 ) 3,047 Deferred 67,041 (2,975 ) Total income tax expense $ 21,305 72 The components of deferred federal income taxes are as follows: September 30, 2018 December 31, 2017 (In thousands) Deferred tax assets: Future policy benefit reserves $ 20,307 78,372 Net operating and capital loss carryforwards 249 485 Accrued expenses 68 65 Investments 8,941 6,002 Other 347 276 Total gross deferred tax assets $ 29,912 85,200 Deferred tax liabilities: Deferred policy acquisition costs, cost of customer relationships acquired and intangible assets $ (33,859 ) (25,518 ) Unrealized gains on investments available-for-sale (2,366 ) (8,297 ) Accrued policyholder dividends (2 ) (441 ) Tax reserves transition liability (3,883 ) — Other (176 ) (147 ) Total gross deferred tax liabilities (40,286 ) (34,403 ) Net deferred tax asset (liability) $ (10,374 ) 50,797 |
Stock Compensation Stock Compen
Stock Compensation Stock Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Stock Compensation [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock Compensation 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, with grant date fair values 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. Vesting of the units is subject to the recipient’s continued employment with the Company through the applicable vesting date. 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. Restricted Stock Units Units Aggregate Fair Value (1) Outstanding at January 1, 2018 — $ — Granted 148,883 1,070,500 Less: Vested — — Forfeited 22,322 160,495 Outstanding at September 30, 2018 126,561 $ 910,005 (1) Fair value per share of restricted stock units on September 30, 2018 was equal to Grant Date fair value per share. Restricted stock awards give the participant the right to receive common stock in the future, subject to certain restrictions and a risk of forfeiture. Compensation expense of $310,000 was recognized as of September 30, 2018 related to these awards. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
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. A reinsurance assumption and novation transaction was completed effective July 1, 2018 between CICA and CICA Ltd. to transfer the international policies to the Bermuda entity. As part of this transaction, the Company has agreed to infuse capital into CICA as required by the Colorado Department of Insurance to keep CICA's risk-based capital above 350% in any future calendar year-end periods. There were no other changes related to these relationships during the nine months ended September 30, 2018 . See our Annual Report on Form 10-K for the year ended December 31, 2017 for a comprehensive discussion of related party transactions. In the first nine months of 2018 , CICA made a capital contribution to CNLIC of $450,000 and SPLIC made a capital contribution of $450,000 to MGLIC. |
Financial Statements (Policies)
Financial Statements (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation [Policy Text Block] | Basis of Presentation and Consolidation 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"), CICA Life Ltd. ("CICA Ltd."), Security Plan Life Insurance Company ("SPLIC"), Security Plan Fire Insurance Company ("SPFIC"), Citizens National Life Insurance Company ("CNLIC"), Magnolia Guaranty Life Insurance Company ("MGLIC"), Computing Technology,, Inc. ("CTI"), and Insurance Investors, Inc. ("III"). Citizens and its wholly-owned subsidiaries are collectively referred to as "the Company," "we," "us" or "our." The consolidated statements of financial position as of September 30, 2018 , the consolidated statements of comprehensive income for the three and nine -months ended September 30, 2018 and September 30, 2017 and the consolidated statements of stockholders' equity and cash flows for the nine -month periods ended September 30, 2018 and September 30, 2017 , have been prepared by the Company without audit. In the opinion of management, all normal and recurring adjustments to present fairly the financial position, results of operations, and changes in cash flows at September 30, 2018 and for comparative periods have been made. The consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, the consolidated financial statements do not include all the information and footnotes required for complete financial statements and should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017 . Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. We provide primarily life insurance and a small amount of health insurance policies through our insurance subsidiaries: CICA, CICA Ltd., SPLIC, MGLIC and CNLIC. Until the end of 2016, CICA and CNLIC issued ordinary whole-life policies, credit life and disability, burial insurance, pre-need policies, and accident and health related policies, throughout the Midwest and southern United States. Beginning January 1, 2017, CICA and CNLIC ceased selling life products domestically. Prior to July 1, 2018, CICA primarily issued ordinary whole-life and endowment policies to non-U.S. residents. From and after July 1, 2018, CICA Ltd. will issue such policies. Effective on July 1, 2018, the Company effected a novation of all of the international policies issued by CICA to CICA Ltd., a newly established Bermuda entity that began operations in July 2018. While this novation transaction has been eliminated in consolidation of affiliated entities, there are tax effects reflected in the consolidated financial statements as a result of the transaction being executed between our subsidiaries that reside in different tax jurisdictions. The tax accounting implications of the novation transaction are further described in Note 9 - Income Taxes in these notes to the consolidated financial statements. SPLIC offers final expense and home service life insurance in Louisiana, Arkansas and Mississippi, and SPFIC, a wholly-owned subsidiary of SPLIC, writes a limited amount of property insurance in Louisiana. MGLIC provides industrial life policies through independent funeral homes in Mississippi. CTI provides data processing systems and services, as well as furniture and equipment, to the Company. III is currently not active. We plan to dissolve III and merge it into Citizens. As of July 1, 2018, we implemented a new actuarial valuation software solution impacting the life segment that provides enhanced modeling capabilities for ordinary whole life and endowment policies of CICA and CICA Ltd., which are included in the life insurance segment. The impact of this system conversion resulted in changes in estimates due to refinements reflected as a decrease in reserves of $10.2 million and a decrease in DAC of $4.3 million , before tax. The total impact of this system conversion reflected in the accompanying consolidated financial statements as of and for the three and nine months ended September 30, 2018 is summarized in the table below. Impact on financial balances: Increase (Decrease) Consolidated Statements of Financial Position (In thousands) Deferred policy acquisition costs $ (4,339 ) Future policy benefit reserves: Life insurance (10,197 ) Consolidated Statements of Comprehensive Income Decrease in future policy benefit reserves (10,197 ) Amortization of deferred policy acquisition costs 4,339 Income (loss) before federal income tax 5,858 Federal income tax expense 1,230 Net income (loss) $ 4,628 |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of consolidated 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 the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in the evaluation of other-than-temporary impairments on debt and equity securities, actuarially determined assets and liabilities and assumptions, tests of goodwill impairment, valuation allowance on deferred tax assets, valuation of uncertain tax positions and contingencies relating to litigation and regulatory matters. Certain of these estimates are particularly sensitive to market conditions, and deterioration and/or volatility in the worldwide debt or equity markets could have a material impact on the consolidated financial statements. |
Accounting Pronouncements (Poli
Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Pronouncements Accounting Standards Recently Adopted On February 14, 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . It allows a reclassification from accumulated other comprehensive income ("AOCI") to retained earnings of the stranded tax effects that occurred due to the enactment of the Tax Cuts and Jobs Act of 2017 (the "New Tax Act"). The updated guidance is effective for reporting periods beginning after December 15, 2018 and is to be applied retrospectively to each period in which there are items impacted by the New Tax Act remaining in AOCI or at the beginning of the period of adoption. Early adoption is permitted. The Company adopted the updated guidance effective January 1, 2018 and elected to reclassify the income tax effects of the New Tax Act from AOCI to accumulated deficit as of January 1, 2018. This reclassification resulted in an increase in accumulated deficit of $4.7 million as of January 1, 2018 and an increase in AOCI by the same amount. In January 2016, the FASB released ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities . The updated guidance requires equity investments, except those accounted for under the equity method of accounting, that have readily determinable fair values to be measured at fair value with any changes in fair value recognized in net income. Equity securities that do not have readily determinable fair values may be measured at estimated fair value or cost less impairment, if any, adjusted for subsequent observable price changes, with changes in the carrying value recognized in net income. A qualitative assessment for impairment is required for equity investments without readily determinable fair values. The updated guidance also eliminates the requirement to disclose the method and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost on the balance sheet. The updated guidance was effective for the first quarter ended March 31, 2018. The adoption of this guidance resulted in the recognition of $560,000 of net after-tax unrealized gains on equity investments as a cumulative effect adjustment that decreased retained deficit as of January 1, 2018 and decreased AOCI by the same amount. The Company elected to report changes in the fair value of equity investments in realized investment gains (losses), net. At December 31, 2017, equity investments were classified as available-for-sale on the Company's balance sheet. However, upon adoption, the updated guidance eliminated the available-for-sale balance sheet classification for equity investments. Accounting Standards Not Yet Adopted 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 the rights and obligations created by those leases on the balance sheet. The ASU also will require additional disclosures so investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the consolidated financial statements. The accounting by organizations that own the assets leased by the lessee, also known as lessor accounting, will remain largely unchanged from current GAAP. However, the ASU contains some targeted improvements that are intended to align, where necessary, lessor accounting with the lessee accounting model and with the updated revenue recognition guidance issued in 2014. The ASU on leases will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company has several lease agreements, such as district office locations related to our Home Service segment, which are currently considered operating leases, and therefore, not recognized on the Company’s balance sheet. The Company intends to adopt this standard effective January 1, 2019 and expects the new guidance will require these lease agreements to be recognized on the balance sheet as a right-of-use asset and a corresponding lease liability. The Company is nearing completion of its effort to compile a complete inventory of arrangements containing a lease and accumulating the lease data necessary to apply the amended guidance. The Company is evaluating the impact this guidance will have on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) , with the main objective to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The ASU requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. Credit losses on available-for-sale debt securities should be measured in a manner similar to current U.S. GAAP; however, the credit losses are recorded through an allowance for credit losses rather than as a write-down. This approach is an improvement to current U.S. GAAP because an entity will be able to record reversals of credit losses (in situations in which the estimate of credit losses declines) in current period net income, which in turn should align the income statement recognition of credit losses with the reporting period in which changes occur. Current U.S. GAAP prohibits reflecting those improvements in current-period earnings. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is evaluating the impact this guidance will have on our consolidated financial statements, but it is not expected to have a material impact on the Company's consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this ASU shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The Company has a large portfolio of callable debt securities purchased at a premium. As such, the Company had already been amortizing the premium to the earliest call date to reduce volatility in earnings by eliminating reporting large realized losses when debt securities are called. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting. This ASU is intended to simplify aspects of share-based compensation issued to non-employees by making the guidance consistent with the accounting for employee share-based compensation. ASU 2018-07 is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods, with early adoption permitted but no earlier than an entity’s adoption date of Topic 606. We will adopt the provisions of this ASU in the first quarter of 2019. The Company is evaluating the impact this guidance will have on our consolidated financial statements. In September 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU requires an entity in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs should be presented in the same line item on the balance sheet as amounts prepaid for the hosted service, if any (generally as an “other asset”). The capitalized costs will be amortized over the term of the hosting arrangement, with the amortization expense being presented in the same income statement line item as the fees paid for the hosted service. ASU 2018-15 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. We are evaluating the impact of this guidance on our limited cloud computing arrangements and our consolidated financial statements. In July 2018, the FASB issued ASU No. 2018-11, Leases - Targeted Improvements to provide entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU No. 2016-02. Specifically, under the amendments in ASU 2018-11: (1) entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. The amendments have the same effective date as ASU 2016-02 (January 1, 2019 for the Company). The Company expects to elect both transition options. ASU 2018-11 is not expected to have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts. This ASU amends four key areas of the accounting and impacts disclosures for long-duration insurance and investment contracts: Requires updated assumptions for liability measurement. Assumptions used to measure the liability for traditional insurance contracts, which are typically determined at contract inception, will now be reviewed at least annually, and, if there is a change, updated, with the effect recorded in net income; Standardizes the liability discount rate. The liability discount rate will be a market-observable discount rate (upper-medium grade fixed-income instrument yield), with the effect of rate changes recorded in other comprehensive income; Provides greater consistency in measurement of market risk benefits. The two previous measurement models have been reduced to one measurement model (fair value), resulting in greater uniformity across similar market-based benefits and better alignment with the fair value measurement of derivatives used to hedge capital market risk; Simplifies amortization of deferred acquisition costs. Previous earnings-based amortization methods have been replaced with a more level amortization basis; and Requires enhanced disclosures. The new disclosures include rollforwards and information about significant assumptions and the effects of changes in those assumptions. For calendar-year public companies, the changes will be effective in 2021. The Company is evaluating the impact this guidance will have on our consolidated financial statements and will begin planning for adoption in 2019. This new guidance is expected to have a material impact on our consolidated financial statements as we consider this to be one of the most substantial changes in the insurance industry guidance in the last 40 years. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. Entities are also allowed to elect early adoption the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until their effective date. As ASU No. 2018-13 only revises disclosure requirements, it will not have a material impact on the Company’s consolidated financial statements. No other new accounting pronouncement issued or effective during the fiscal year had, or is expected to have, a material impact on our consolidated financial statements. |
Financial Statements (Tables)
Financial Statements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Changes and Error Corrections [Text Block] | The total impact of this system conversion reflected in the accompanying consolidated financial statements as of and for the three and nine months ended September 30, 2018 is summarized in the table below. Impact on financial balances: Increase (Decrease) Consolidated Statements of Financial Position (In thousands) Deferred policy acquisition costs $ (4,339 ) Future policy benefit reserves: Life insurance (10,197 ) Consolidated Statements of Comprehensive Income Decrease in future policy benefit reserves (10,197 ) Amortization of deferred policy acquisition costs 4,339 Income (loss) before federal income tax 5,858 Federal income tax expense 1,230 Net income (loss) $ 4,628 We are continuing to convert other information to the new valuation system and will report those items as information becomes available and in accordance with applicable accounting guidance. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The Company's Other Non-Insurance Enterprises are the only reportable difference between segments and consolidated operations. Three Months Ended September 30, 2018 Life Home Other Consolidated (In thousands) Revenues: Premiums $ 35,784 11,645 — 47,429 Net investment income 10,062 3,276 249 13,587 Realized investment gains (losses), net (475 ) (32 ) 9 (498 ) Other income 643 — — 643 Total revenue 46,014 14,889 258 61,161 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 19,212 5,864 — 25,076 Increase in future policy benefit reserves 544 1,109 — 1,653 Policyholders' dividends 1,581 14 — 1,595 Total insurance benefits paid or provided 21,337 6,987 — 28,324 Commissions 4,712 3,944 — 8,656 Other general expenses 6,583 4,502 1,317 12,402 Capitalization of deferred policy acquisition costs (3,873 ) (1,688 ) — (5,561 ) Amortization of deferred policy acquisition costs 10,132 1,280 — 11,412 Amortization of cost of customer relationships acquired 150 216 — 366 Total benefits and expenses 39,041 15,241 1,317 55,599 Income (loss) before income tax expense $ 6,973 (352 ) (1,059 ) 5,562 Nine Months Ended September 30, 2018 Life Insurance Home Service Insurance Other Non-Insurance Enterprises Consolidated (In thousands) Revenues: Premiums $ 102,537 35,051 — 137,588 Net investment income 30,331 9,894 944 41,169 Realized investment losses, net (684 ) (535 ) (32 ) (1,251 ) Other income (loss) 931 (1 ) — 930 Total revenue 133,115 44,409 912 178,436 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 49,522 17,322 — 66,844 Increase in future policy benefit reserves 29,509 3,307 — 32,816 Policyholders' dividends 4,483 33 — 4,516 Total insurance benefits paid or provided 83,514 20,662 — 104,176 Commissions 14,717 11,567 — 26,284 Other general expenses 12,607 15,438 5,330 33,375 Capitalization of deferred policy acquisition costs (12,663 ) (4,501 ) — (17,164 ) Amortization of deferred policy acquisition costs 22,912 3,306 — 26,218 Amortization of cost of customer relationships acquired 434 1,083 — 1,517 Total benefits and expenses 121,521 47,555 5,330 174,406 Income (loss) before income tax expense $ 11,594 (3,146 ) (4,418 ) 4,030 Three Months Ended September 30, 2017 Life Home Other Consolidated (In thousands) Revenues: Premiums $ 38,472 11,775 — 50,247 Net investment income 10,051 3,355 422 13,828 Realized investment losses, net (355 ) (49 ) — (404 ) Other income 561 — 99 660 Total revenue 48,729 15,081 521 64,331 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 15,700 5,754 — 21,454 Increase in future policy benefit reserves 18,045 1,552 — 19,597 Policyholders' dividends 1,602 11 — 1,613 Total insurance benefits paid or provided 35,347 7,317 — 42,664 Commissions 6,892 3,909 — 10,801 Other general expenses 2,200 4,025 1,029 7,254 Capitalization of deferred policy acquisition costs (6,242 ) (1,514 ) — (7,756 ) Amortization of deferred policy acquisition costs 6,431 1,192 — 7,623 Amortization of cost of customer relationships acquired 118 517 — 635 Total benefits and expenses 44,746 15,446 1,029 61,221 Income (loss) before income tax expense $ 3,983 (365 ) (508 ) 3,110 Nine Months Ended September 30, 2017 Life Insurance Home Service Insurance Other Non-Insurance Enterprises Consolidated (In thousands) Revenues: Premiums $ 107,995 35,372 — 143,367 Net investment income 28,678 9,864 1,098 39,640 Realized investment gains (losses), net (419 ) 1,161 — 742 Other income 856 2 157 1,015 Total revenue 137,110 46,399 1,255 184,764 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 45,218 16,912 — 62,130 Increase in future policy benefit reserves 47,818 4,135 — 51,953 Policyholders' dividends 4,387 31 — 4,418 Total insurance benefits paid or provided 97,423 21,078 — 118,501 Commissions 18,765 11,855 — 30,620 Other general expenses 10,399 13,182 3,184 26,765 Capitalization of deferred policy acquisition costs (16,843 ) (4,697 ) — (21,540 ) Amortization of deferred policy acquisition costs 19,350 3,290 — 22,640 Amortization of cost of customer relationships acquired 434 1,195 — 1,629 Total benefits and expenses 129,528 45,903 3,184 178,615 Income (loss) before income tax expense $ 7,582 496 (1,929 ) 6,149 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following tables set forth the computation of basic and diluted earnings per share. Three Months Ended September 30, 2018 September 30, 2017 (In thousands, Basic and diluted earnings per share: Numerator: Net income (loss) $ (14,754 ) 3,449 Net income (loss) allocated to Class A common stock $ (14,605 ) 3,415 Net income (loss) allocated to Class B common stock (149 ) 34 Net income (loss) $ (14,754 ) 3,449 Denominator: Weighted average shares of Class A outstanding - basic 49,080 49,080 Weighted average shares of Class A outstanding - diluted 49,127 49,080 Weighted average shares of Class B outstanding - basic and diluted 1,002 1,002 Basic and diluted earnings (loss) per share of Class A common stock $ (0.30 ) 0.07 Basic and diluted earnings (loss) per share of Class B common stock (0.14 ) 0.03 Nine Months Ended September 30, 2018 September 30, 2017 (In thousands, except per share amounts) Basic and diluted earnings per share: Numerator: Net income (loss) $ (17,275 ) 6,077 Net income (loss) allocated to Class A common stock $ (17,101 ) 6,016 Net income (loss) allocated to Class B common stock (174 ) 61 Net income (loss) $ (17,275 ) 6,077 Denominator: Weighted average shares of Class A outstanding - basic 49,080 49,080 Weighted average shares of Class A outstanding - diluted 49,127 49,080 Weighted average shares of Class B outstanding - basic and diluted 1,002 1,002 Basic and diluted earnings (loss) per share of Class A common stock $ (0.35 ) 0.12 Basic and diluted earnings (loss) per share of Class B common stock (0.17 ) 0.06 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments Including Short Term And Cash And Cash Equivalents [Abstract] | |
Investments Including Short Term And Cash And Cash Equivalents [Table Text Block] | The Company invests primarily in fixed maturity securities, which totaled 87.6% of total cash, cash equivalents and investments at September 30, 2018 . The Company's cash, cash equivalents and investments are listed below. September 30, 2018 December 31, 2017 Carrying Value % of Total Carrying Value Carrying Value % of Total Carrying Value (In thousands) (In thousands) Fixed maturity securities $ 1,200,154 87.6 $ 1,208,570 89.3 Equity securities 15,529 1.1 16,164 1.2 Mortgage loans 188 — 195 — Policy loans 79,012 5.8 73,735 5.5 Real estate and other long-term investments 7,248 0.5 7,452 0.6 Cash and cash equivalents 68,753 5.0 46,064 3.4 Total cash, cash equivalents and investments $ 1,370,884 100.0 $ 1,352,180 100.0 |
Debt and Equity Securities, Unrealized Gain (Loss) | |
Unrealized Gain (Loss) on Investments [Table Text Block] | The following tables represent the cost, gross unrealized gains and losses and fair value for fixed maturities as of the periods indicated. September 30, 2018 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Fixed maturities: Available-for-sale: U.S. Treasury securities $ 9,887 1,250 6 11,131 U.S. Government-sponsored enterprises 3,546 662 — 4,208 States and political subdivisions 740,333 4,973 4,376 740,930 Foreign governments 118 — 1 117 Corporate 404,183 9,655 4,706 409,132 Commercial mortgage-backed 3,662 13 49 3,626 Residential mortgage-backed 31,482 105 577 31,010 Total fixed maturities $ 1,193,211 16,658 9,715 1,200,154 We reclassified all of our fixed maturity holdings that were previously classified as held-to-maturity to available-for-sale based upon our intent and investment strategy as of September 30, 2018 . The net carrying value of the fixed maturities held-to-maturity reclassified as available-for-sale amounted to $209.7 million and resulted in a net unrealized gain of $0.5 million being recorded in other comprehensive income before tax. 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, Restricted | |
Schedule of Equity Securities [Table Text Block] | The majority of the Company's equity securities are diversified stock and bond mutual funds. September 30, 2018 December 31, 2017 Fair Value Fair Value (In thousands) Equity securities: Stock mutual funds $ 3,196 3,217 Bond mutual funds 12,096 12,367 Common stock 96 24 Preferred stock 141 556 Total equity securities $ 15,529 16,164 |
Unrealized Continuous Losses on Investments [Abstract] | |
Schedule of Unrealized Loss on Investments [Table Text Block] | The following tables present the fair values and gross unrealized losses of fixed maturity securities that have remained in a continuous unrealized loss position for the periods indicated. September 30, 2018 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: U.S. Treasury securities $ 757 6 2 — — — 757 6 2 States and political subdivisions 494,116 3,659 479 31,452 717 42 525,568 4,376 521 Corporate 206,965 4,193 160 6,366 513 6 213,331 4,706 166 Commercial mortgage-backed 2,725 49 4 — — — 2,725 49 4 Residential mortgage-backed 27,048 574 21 101 3 3 27,149 577 24 Foreign 117 1 1 — — — 117 1 1 Total available-for-sale securities $ 731,728 8,482 667 37,919 1,233 51 769,647 9,715 718 As of September 30, 2018 , the Company had 51 available-for-sale fixed maturity securities that were in an unrealized loss position for greater than 12 months. 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 equity securities $ 95 6 1 — — — 95 6 1 |
Debt and Equity Securities, Realized Gain (Loss) | |
Schedule of Realized Gain (Loss) [Table Text Block] | The Company uses the specific identification method of the individual security to determine the cost basis used in the calculation of realized gains and losses related to security sales. Fixed Maturities, Available-for-Sale Equity Securities Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2018 2017 2018 2017 2018 2017 2018 2017 (In thousands) Proceeds $ 1,084 — 1,084 508 — — — 1,940 Gross realized gains $ 54 — 53 6 — — — — Gross realized losses $ — — — — — — — 30 |
Schedule of Maturities by Contractual Maturity Date [Abstract] | |
Investments Classified by Contractual Maturity Date [Table Text Block] | The amortized cost and fair value of fixed maturity securities at September 30, 2018 by contractual maturity are shown in the table 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 final stated maturity. September 30, 2018 Amortized Cost Fair Value (In thousands) Fixed maturity securities: Due in one year or less $ 43,088 43,190 Due after one year through five years 142,943 146,280 Due after five years through ten years 230,995 232,627 Due after ten years 776,185 778,057 Total fixed maturity securities $ 1,193,211 1,200,154 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following tables set forth our assets that are measured at fair value on a recurring basis as of the dates indicated. September 30, 2018 Financial Assets Level 1 Level 2 Level 3 Total Fair Value (In thousands) Available-for-sale investments Fixed maturities: U.S. Treasury and U.S. Government-sponsored enterprises $ 11,131 4,208 — 15,339 States and political subdivisions — 740,930 — 740,930 Corporate 211 408,921 — 409,132 Commercial mortgage-backed — 3,626 — 3,626 Residential mortgage-backed — 31,010 — 31,010 Foreign governments — 117 — 117 Total fixed maturities available-for-sale 11,342 1,188,812 — 1,200,154 Equity securities Stock mutual funds 3,196 — — 3,196 Bond mutual funds 12,096 — — 12,096 Common stock 96 — — 96 Non-redeemable preferred stock 141 — — 141 Total equity securities 15,529 — — 15,529 Total financial assets $ 26,871 1,188,812 — 1,215,683 December 31, 2017 Financial Assets Level 1 Level 2 Level 3 Total Fair Value (In thousands) Available-for-sale investments 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 available-for-sale 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 Preferred stock 556 — — 556 Total equity securities 16,164 — — 16,164 Total financial assets $ 27,972 962,801 — 990,773 |
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 not otherwise disclosed for the periods indicated are as follows: September 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Financial assets: Fixed maturities, held-to-maturity $ — — 233,961 241,377 Mortgage loans 188 224 195 228 Policy loans 79,012 79,012 73,735 73,735 Cash and cash equivalents 68,753 68,753 46,064 46,064 Financial liabilities: Annuity - investment contracts 56,085 53,247 55,035 57,575 |
Short Duration Contracts (Table
Short Duration Contracts (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Short Duration Contracts [Abstract] | |
Short-duration Insurance Contracts, Claims Development [Table Text Block] | The following table presents information on changes in the liability for credit life, credit disability, and property policy and contract claims for the periods ended September 30, 2018 and September 30, 2017 . September 30, 2018 2017 (In thousands) Policy claims payable at January 1, $ 570 543 Less: reinsurance recoverable — — Net balance at January 1, 570 543 Add claims incurred, related to: Current year 1,441 1,435 Prior years (176 ) (11 ) 1,265 1,424 Deduct claims paid, related to: Current year 1,163 1,106 Prior years 310 407 1,473 1,513 Net balance September 30, 362 454 Plus: reinsurance recoverable — — Policy claims payable, September 30, $ 362 454 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income tax expense consists of: Nine Months Ended September 30, 2018 2017 (In thousands) Current $ (45,736 ) 3,047 Deferred 67,041 (2,975 ) Total income tax expense $ 21,305 72 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Our provision for income taxes may not have the customary relationship of taxes to income. A reconciliation between the U.S. corporate income tax rate and the effective income tax rate is as follows: Nine Months Ended September 30, 2018 2017 Amount % Amount % (In thousands, except for %) Expected tax expense (benefit) $ 846 21.0 % $ 2,152 35.0 % Tax-exempt interest and dividends-received deduction (126 ) (3.1 )% (336 ) (5.5 )% Effect of graduated rates — — % (35 ) (0.6 )% Effect of uncertain tax position 2,688 66.7 % (1,011 ) (16.4 )% Nondeductible costs to remediate tax compliance issue (735 ) (18.2 )% (997 ) (16.2 )% CICA Ltd. Subpart F income 18,657 462.9 % — — % Other (25 ) (0.6 )% 299 4.9 % Total income tax expense $ 21,305 528.7 % $ 72 1.2 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of deferred federal income taxes are as follows: September 30, 2018 December 31, 2017 (In thousands) Deferred tax assets: Future policy benefit reserves $ 20,307 78,372 Net operating and capital loss carryforwards 249 485 Accrued expenses 68 65 Investments 8,941 6,002 Other 347 276 Total gross deferred tax assets $ 29,912 85,200 Deferred tax liabilities: Deferred policy acquisition costs, cost of customer relationships acquired and intangible assets $ (33,859 ) (25,518 ) Unrealized gains on investments available-for-sale (2,366 ) (8,297 ) Accrued policyholder dividends (2 ) (441 ) Tax reserves transition liability (3,883 ) — Other (176 ) (147 ) Total gross deferred tax liabilities (40,286 ) (34,403 ) Net deferred tax asset (liability) $ (10,374 ) 50,797 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Stock Compensation [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Restricted Stock Units Units Aggregate Fair Value (1) Outstanding at January 1, 2018 — $ — Granted 148,883 1,070,500 Less: Vested — — Forfeited 22,322 160,495 Outstanding at September 30, 2018 126,561 $ 910,005 (1) Fair value per share of restricted stock units on September 30, 2018 was equal to Grant Date fair value per share. |
Financial Statements (Correctio
Financial Statements (Corrections or Adjustments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Deferred policy acquisition costs | $ (158,253) | $ (158,253) | $ (167,063) | ||
Life insurance | (1,165,443) | (1,165,443) | $ (1,133,875) | ||
Increase in future policy benefit reserves | 1,653 | $ 19,597 | 32,816 | $ 51,953 | |
Amortization of deferred policy acquisition costs | 11,412 | 7,623 | 26,218 | 22,640 | |
Income (loss) before federal income tax | 5,562 | 3,110 | 4,030 | 6,149 | |
Federal income tax expense (benefit) | 20,316 | (339) | 21,305 | 72 | |
Net income (loss) | (14,754) | $ 3,449 | (17,275) | $ 6,077 | |
Financial Impact due to System Conversion [Member] | |||||
Deferred policy acquisition costs | (4,339) | (4,339) | |||
Life insurance | $ (10,197) | (10,197) | |||
Increase in future policy benefit reserves | (10,197) | ||||
Amortization of deferred policy acquisition costs | 4,339 | ||||
Income (loss) before federal income tax | 5,858 | ||||
Federal income tax expense (benefit) | 1,230 | ||||
Net income (loss) | $ 4,628 |
Accounting Pronouncements (Deta
Accounting Pronouncements (Details) - USD ($) | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
Tax Cuts And Jobs Act Of 2017 Reclassification From AOCI To Retained Earnings Tax Effect | $ 4,700,000 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0 | |
Accounting Standards Update 2016-01 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 560,000 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | 2 | |||
Segment reporting, measurement differences between segment and consolidated income (loss) | The Company's Other Non-Insurance Enterprises are the only reportable difference between segments and consolidated operations. | |||
Premiums | $ 47,429 | $ 50,247 | $ 137,588 | $ 143,367 |
Net investment income | 13,587 | 13,828 | 41,169 | 39,640 |
Realized investment gains (losses), net | (498) | (404) | (1,251) | 742 |
Other income | 643 | 660 | 930 | 1,015 |
Total revenue | 61,161 | 64,331 | 178,436 | 184,764 |
Claims and surrenders | 25,076 | 21,454 | 66,844 | 62,130 |
Increase in future policy benefit reserves | 1,653 | 19,597 | 32,816 | 51,953 |
Policyholders' dividends | 1,595 | 1,613 | 4,516 | 4,418 |
Total insurance benefits paid or provided | 28,324 | 42,664 | 104,176 | 118,501 |
Commissions | 8,656 | 10,801 | 26,284 | 30,620 |
Other general expenses | 12,402 | 7,254 | 33,375 | 26,765 |
Capitalization of deferred policy acquisition costs | (5,561) | (7,756) | (17,164) | (21,540) |
Amortization of deferred policy acquisition costs | 11,412 | 7,623 | 26,218 | 22,640 |
Amortization of cost of customer relationships acquired | 366 | 635 | 1,517 | 1,629 |
Total benefits and expenses | 55,599 | 61,221 | 174,406 | 178,615 |
Income (loss) before income tax expense | 5,562 | 3,110 | 4,030 | 6,149 |
Life Insurance Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 35,784 | 38,472 | 102,537 | 107,995 |
Net investment income | 10,062 | 10,051 | 30,331 | 28,678 |
Realized investment gains (losses), net | (475) | (355) | (684) | (419) |
Other income | 643 | 561 | 931 | 856 |
Total revenue | 46,014 | 48,729 | 133,115 | 137,110 |
Claims and surrenders | 19,212 | 15,700 | 49,522 | 45,218 |
Increase in future policy benefit reserves | 544 | 18,045 | 29,509 | 47,818 |
Policyholders' dividends | 1,581 | 1,602 | 4,483 | 4,387 |
Total insurance benefits paid or provided | 21,337 | 35,347 | 83,514 | 97,423 |
Commissions | 4,712 | 6,892 | 14,717 | 18,765 |
Other general expenses | 6,583 | 2,200 | 12,607 | 10,399 |
Capitalization of deferred policy acquisition costs | (3,873) | (6,242) | (12,663) | (16,843) |
Amortization of deferred policy acquisition costs | 10,132 | 6,431 | 22,912 | 19,350 |
Amortization of cost of customer relationships acquired | 150 | 118 | 434 | 434 |
Total benefits and expenses | 39,041 | 44,746 | 121,521 | 129,528 |
Income (loss) before income tax expense | 6,973 | 3,983 | 11,594 | 7,582 |
Home Service Insurance Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 11,645 | 11,775 | 35,051 | 35,372 |
Net investment income | 3,276 | 3,355 | 9,894 | 9,864 |
Realized investment gains (losses), net | (32) | (49) | (535) | 1,161 |
Other income | 0 | 0 | (1) | 2 |
Total revenue | 14,889 | 15,081 | 44,409 | 46,399 |
Claims and surrenders | 5,864 | 5,754 | 17,322 | 16,912 |
Increase in future policy benefit reserves | 1,109 | 1,552 | 3,307 | 4,135 |
Policyholders' dividends | 14 | 11 | 33 | 31 |
Total insurance benefits paid or provided | 6,987 | 7,317 | 20,662 | 21,078 |
Commissions | 3,944 | 3,909 | 11,567 | 11,855 |
Other general expenses | 4,502 | 4,025 | 15,438 | 13,182 |
Capitalization of deferred policy acquisition costs | (1,688) | (1,514) | (4,501) | (4,697) |
Amortization of deferred policy acquisition costs | 1,280 | 1,192 | 3,306 | 3,290 |
Amortization of cost of customer relationships acquired | 216 | 517 | 1,083 | 1,195 |
Total benefits and expenses | 15,241 | 15,446 | 47,555 | 45,903 |
Income (loss) before income tax expense | (352) | (365) | (3,146) | 496 |
Other Non-Insurance Enterprise [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Net investment income | 249 | 422 | 944 | 1,098 |
Realized investment gains (losses), net | 9 | 0 | (32) | 0 |
Other income | 0 | 99 | 0 | 157 |
Total revenue | 258 | 521 | 912 | 1,255 |
Claims and surrenders | 0 | 0 | 0 | 0 |
Increase in future policy benefit reserves | 0 | 0 | 0 | 0 |
Policyholders' dividends | 0 | 0 | 0 | 0 |
Total insurance benefits paid or provided | 0 | 0 | 0 | 0 |
Commissions | 0 | 0 | 0 | 0 |
Other general expenses | 1,317 | 1,029 | 5,330 | 3,184 |
Capitalization of deferred policy acquisition costs | 0 | 0 | 0 | 0 |
Amortization of deferred policy acquisition costs | 0 | 0 | 0 | 0 |
Amortization of cost of customer relationships acquired | 0 | 0 | 0 | 0 |
Total benefits and expenses | 1,317 | 1,029 | 5,330 | 3,184 |
Income (loss) before income tax expense | $ (1,059) | $ (508) | $ (4,418) | $ (1,929) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income (loss) | $ (14,754) | $ 3,449 | $ (17,275) | $ 6,077 |
Net Income Allocated to Class A Common Stock | (14,605) | 3,415 | (17,101) | 6,016 |
Net Income Allocated to Class B Common Stock | $ (149) | $ 34 | $ (174) | $ 61 |
Common Stock 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 | 49,080 |
Weighted Average Number of Shares Outstanding, Diluted | 49,127 | 49,080 | 49,127 | 49,080 |
Earnings Per Share, Basic and Diluted | $ (0.30) | $ 0.07 | $ (0.35) | $ 0.12 |
Common Stock Class B [Member] | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Weighted Average Shares Outstanding, Basic and Diluted | 1,002 | 1,002 | 1,002 | 1,002 |
Earnings Per Share, Basic and Diluted | $ (0.14) | $ 0.03 | $ (0.17) | $ 0.06 |
Investments (Cash, Cash Equival
Investments (Cash, Cash Equivalents and Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||||
Fixed maturity securities | $ 1,200,154 | $ 1,208,570 | ||
Fixed maturity securities percent | 87.60% | 89.30% | ||
Equity security | $ 15,529 | |||
Equity security | $ 16,164 | |||
Equity securities percent | 1.10% | 1.20% | ||
Mortgage loans | $ 188 | $ 195 | ||
Mortgage loans percent | 0.00% | 0.00% | ||
Policy loans | $ 79,012 | $ 73,735 | ||
Policy loans percent | 5.80% | 5.50% | ||
Real estate and other long-term investments | $ 7,248 | $ 7,452 | ||
Real estate and other long-term investments percent | 0.50% | 0.60% | ||
Cash and cash equivalents | $ 68,753 | $ 46,064 | $ 45,000 | $ 35,510 |
Cash and cash equivalents percent | 5.00% | 3.40% | ||
Total cash, cash equivalents and investments | $ 1,370,884 | $ 1,352,180 | ||
Total cash, cash equivalents and investments percent | 100.00% | 100.00% |
Investments (Investment Gains a
Investments (Investment Gains and Losses) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Gross Unrealized Gains and Losses [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | $ 1,193,211 | $ 935,977 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 16,658 | 41,729 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 9,715 | 3,097 |
Debt Securities, Available-for-sale | 1,200,154 | 974,609 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-maturity securities | 0 | 233,961 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 8,703 | |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 1,287 | |
Fixed maturities held-to-maturity, fair value | 0 | 241,377 |
Total Fixed maturity securities, Amortized Cost | 1,169,938 | |
Debt Securities, Accumulative Gross Unrealized and Unrecognized Gains | 50,432 | |
Debt Securities, Accumulated Gross Unrealized and Unrecognized Losses | 4,384 | |
Total Fixed Maturity Securities, Fair Value | 1,200,154 | 1,215,986 |
Debt Securities, Held-to-maturity, Transfer, Amount | 209,700 | |
Other Comprehensive Income (Loss), Transfers from Held-to-maturity to Available-for-Sale Securities, before Tax | 500 | |
Debt Securities [Member] | ||
Gross Unrealized Gains and Losses [Line Items] | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 9,715 | 3,097 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 1,287 | |
US Treasury Securities [Member] | ||
Gross Unrealized Gains and Losses [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 9,887 | 9,860 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 1,250 | 1,948 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 6 | 0 |
Debt Securities, Available-for-sale | 11,131 | 11,808 |
US Government Agencies Debt Securities [Member] | ||
Gross Unrealized Gains and Losses [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 3,546 | 3,570 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 662 | 926 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Debt Securities, Available-for-sale | 4,208 | 4,496 |
US States and Political Subdivisions Debt Securities [Member] | ||
Gross Unrealized Gains and Losses [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 740,333 | 550,536 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 4,973 | 18,507 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 4,376 | 1,540 |
Debt Securities, Available-for-sale | 740,930 | 567,503 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-maturity securities | 213,054 | |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 7,585 | |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 629 | |
Fixed maturities held-to-maturity, fair value | 220,010 | |
Corporate Debt Securities [Member] | ||
Gross Unrealized Gains and Losses [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 404,183 | 370,043 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 9,655 | 20,212 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 4,706 | 1,552 |
Debt Securities, Available-for-sale | 409,132 | 388,703 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-maturity securities | 20,907 | |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 1,118 | |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 658 | |
Fixed maturities held-to-maturity, fair value | 21,367 | |
Commercial Mortgage Backed Securities [Member] | ||
Gross Unrealized Gains and Losses [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 3,662 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 13 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 49 | |
Debt Securities, Available-for-sale | 3,626 | |
Residential Mortgage Backed Securities [Member] | ||
Gross Unrealized Gains and Losses [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 31,482 | 1,865 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 105 | 118 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 577 | 5 |
Debt Securities, Available-for-sale | 31,010 | 1,978 |
Debt Security, Government, Non-US [Member] | ||
Gross Unrealized Gains and Losses [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 118 | 103 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 18 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 1 | 0 |
Debt Securities, Available-for-sale | $ 117 | $ 121 |
Investments (Other Than Tempora
Investments (Other Than Temporary Impairments) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Other than temporary impairments Losses, Investments, Portion Not Recognized in Earnings | $ 0 | $ 0 | |||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $ 0 | ||||
Equity Securities [Member] | |||||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $ 0 | $ 0 | 0 | $ 17,000 | |
Number of equity securities impaired | 1 | ||||
Debt Securities [Member] | |||||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $ 551,000 | $ 776,000 |
Investments (Equity Securities)
Investments (Equity Securities) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Debt and Equity Securities, FV-NI [Line Items] | |||||
Equity security | $ 15,529,000 | $ 15,529,000 | |||
Realized (gains) losses on sale of investments and other assets | 498,000 | $ 404,000 | 1,251,000 | $ (742,000) | |
Stock Mutual Funds [Member] | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Equity security | 3,196,000 | 3,196,000 | |||
Available-for-sale securities | $ 3,217,000 | ||||
Bond Mutual Funds [Member] | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Equity security | 12,096,000 | 12,096,000 | |||
Available-for-sale securities | 12,367,000 | ||||
Common stock [Member] | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Equity security | 96,000 | 96,000 | |||
Available-for-sale securities | 24,000 | ||||
Nonredeemable Preferred Stock [Member] | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Equity security | 141,000 | 141,000 | |||
Redeemable Preferred Stock [Member] | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Available-for-sale securities | 556,000 | ||||
Equity Securities [Member] | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Equity security | 15,529,000 | 15,529,000 | |||
Realized (gains) losses on sale of investments and other assets | $ (156,000) | $ 232,000 | |||
Available-for-sale securities | $ 16,164,000 |
Investments (Unrealized Losses)
Investments (Unrealized Losses) (Details) $ in Thousands | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 9,715 | $ 3,097 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 1,287 | |
Debt Securities In Continuous Loss Less Than 12 Months Fair Value | 124,789 | |
Debt Securities, Continuous Unrealized Loss Position for Less Than 12 Months | $ 1,092 | |
Debt Securities In Unrealized Loss Positions Qualitative Disclosure, Number Of Positions, Less Than 12 Months | 104 | |
Debt Securities In Continuous Loss Position 12 Months Or Longer, Fair Value | $ 64,670 | |
Debt Securities, Continuous Unrealized Loss Position for Greater Than 12 Months | $ 3,292 | |
Debt Securities In Unrealized Loss Positions Qualitative Disclosure, Number Of Positions,12 Months Or Greater | 76 | |
Debt Securities In Continuous Loss Position, Aggregate Fair Value | $ 189,459 | |
Debt Securities, Gross Unrealized and Unrecognized Losses | $ 4,384 | |
Debt Securities In Unrealized Loss Positions Qualitative Disclosure, Number Of Positions | 180 | |
US Treasury Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 757 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 6 | |
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 | $ 757 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 6 | $ 0 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 2 | |
US States and Political Subdivisions Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 494,116 | 49,408 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 3,659 | $ 312 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 479 | 46 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 31,452 | $ 47,233 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 717 | $ 1,228 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 42 | 46 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 525,568 | $ 96,641 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 4,376 | $ 1,540 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 521 | 92 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 14,178 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 45 | |
Number of Held to Maturity Securities In Continuous Loss Position Less Than 12 Months | 15 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | $ 7,460 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 584 | |
Number of Held to Maturity Securities In Continuous Loss Position 12 Months or Greater | 14 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | $ 21,638 | |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | $ 629 | |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 29 | |
Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 206,965 | $ 61,071 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 4,193 | $ 732 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 160 | 39 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 6,366 | $ 7,651 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 513 | $ 820 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 6 | 10 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 213,331 | $ 68,722 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 4,706 | $ 1,552 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 166 | 49 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 0 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 0 | |
Number of Held to Maturity Securities In Continuous Loss Position Less Than 12 Months | 0 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | $ 2,169 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 658 | |
Number of Held to Maturity Securities In Continuous Loss Position 12 Months or Greater | 2 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | $ 2,169 | |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | $ 658 | |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 2 | |
Commercial Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 2,725 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 49 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 4 | |
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 | $ 2,725 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 49 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 4 | |
Residential Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 27,048 | $ 132 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 574 | $ 3 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 21 | 4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 101 | $ 157 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 3 | $ 2 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 3 | 4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 27,149 | $ 289 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 577 | $ 5 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 24 | 8 |
Debt Security, Government, Non-US [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 117 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 1 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 1 | |
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 | $ 117 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 1 | $ 0 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 1 | |
Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 731,728 | 110,611 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 8,482 | $ 1,047 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 667 | 89 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 37,919 | $ 55,041 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 1,233 | $ 2,050 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 51 | 60 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 769,647 | $ 165,652 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 9,715 | $ 3,097 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 718 | 149 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 14,178 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 45 | |
Number of Held to Maturity Securities In Continuous Loss Position Less Than 12 Months | 15 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | $ 9,629 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 1,242 | |
Number of Held to Maturity Securities In Continuous Loss Position 12 Months or Greater | 16 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | $ 23,807 | |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | $ 1,287 | |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 31 | |
Redeemable Preferred Stock [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 95 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 6 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 1 | |
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 | $ 95 | |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | $ 6 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 1 | |
Equity Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 95 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 6 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 1 | |
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 | $ 95 | |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | $ 6 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 1 |
Investments (Maturity Distribut
Investments (Maturity Distribution) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale, Amortized Cost | ||
Due in one year or less | $ 43,088 | |
Available-for-sale Securities, Debt Maturities, Due After One Year Through Five Years, Amortized Cost Basis | 142,943 | |
Available-for-sale Securities, Debt Maturities, Due After Five Years Through Ten Years, Amortized Cost Basis | 230,995 | |
Available-for-sale Securities, Debt Maturities, Due After Ten Years, Amortized Cost Basis | 776,185 | |
Debt Securities, Available-for-sale, Amortized Cost | 1,193,211 | $ 935,977 |
Debt Securities, Available-for-sale, Fair Value | ||
Due in one year or less | 43,190 | |
Available-for-sale Securities, Debt Maturities, Due After One Year Through Five Years, Fair Value | 146,280 | |
Available-for-sale Securities, Debt Maturities, Due After Five Years Through Ten Years, Fair Value | 232,627 | |
Available-for-sale Securities, Debt Maturities, Due After Ten Years, Fair Value | 778,057 | |
Total Fixed Maturity Securities, Fair Value | $ 1,200,154 | $ 1,215,986 |
Investments (Realized Gains (Lo
Investments (Realized Gains (Losses)) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | |
Gain (Loss) on Securities [Line Items] | ||||
Proceeds from Sale of Debt Securities, Available-for-sale | $ 1,084 | $ 0 | $ 1,084 | $ 508 |
Proceeds from Sale and Maturity of Marketable Securities | $ 0 | $ 0 | ||
Proceeds from Sale of Available-For-Sale Securities, Equity | $ 0 | $ 1,940 | ||
Sale of bonds, number of available-for-sale securities sold | 1 | 0 | 1 | 1 |
Number of Equity Securities Sold | 0 | 0 | 0 | 0 |
Sale of bonds, number of held-to-maturity bonds sold | 0 | 0 | 0 | 0 |
Debt Securities [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Available-for-sale Securities, Gross Realized Gains | $ 54 | $ 0 | $ 53 | $ 6 |
Available-for-sale Securities, Gross Realized Losses | 0 | 0 | 0 | 0 |
Equity Securities [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Available-for-sale Securities, Gross Realized Gains | 0 | 0 | ||
Equity Securities, FV-NI, Realized Gain | 0 | 0 | ||
Available-for-sale Securities, Gross Realized Losses | $ 0 | $ 30 | ||
Equity Securities, FV-NI, Realized Loss | $ 0 | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) | 9 Months Ended | |
Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | $ 15,529,000 | |
Marketable Securities | $ 1,215,683,000 | $ 990,773,000 |
Number of Private Placement Mortgage Backed Debt Securities in Level 3 | 0 | |
Percent of Level 2 Debt Maturity to Total Reported Fair Value of Financial Assets | 97.80% | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | $ 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 26,871,000 | 27,972,000 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 1,188,812,000 | 962,801,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
US Treasury and Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 15,339,000 | 16,304,000 |
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 | 11,131,000 | 11,808,000 |
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 | 4,208,000 | 4,496,000 |
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 | 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 | 740,930,000 | 567,503,000 |
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 | 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 | 740,930,000 | 567,503,000 |
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 | 0 | 0 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 409,132,000 | 388,703,000 |
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 | 211,000 | 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 | 408,921,000 | 388,703,000 |
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 | 0 | 0 |
Commercial Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 3,626,000 | |
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 | 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 | 3,626,000 | |
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 | 0 | |
Residential Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 31,010,000 | 1,978,000 |
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 | 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 | 31,010,000 | 1,978,000 |
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 | 0 | 0 |
Debt Security, Government, Non-US [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 117,000 | 121,000 |
Debt Security, Government, Non-US [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Debt Security, Government, Non-US [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 117,000 | 121,000 |
Debt Security, Government, Non-US [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,200,154,000 | 974,609,000 |
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 | 11,342,000 | 11,808,000 |
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 | 1,188,812,000 | 962,801,000 |
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 | 0 | 0 |
Stock Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 3,217,000 | |
Equity security | 3,196,000 | |
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 | 3,217,000 | |
Equity security | 3,196,000 | |
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 | 0 | |
Equity security | 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 | 0 | |
Equity security | 0 | |
Bond Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 12,367,000 | |
Equity security | 12,096,000 | |
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 | 12,367,000 | |
Equity security | 12,096,000 | |
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 | 0 | |
Equity security | 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 | 0 | |
Equity security | 0 | |
Common stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 24,000 | |
Equity security | 96,000 | |
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 | 24,000 | |
Equity security | 96,000 | |
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 | 0 | |
Equity security | 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 | 0 | |
Equity security | 0 | |
Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 556,000 | |
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 | 556,000 | |
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 | 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 | 0 | |
Nonredeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 141,000 | |
Nonredeemable Preferred Stock [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 141,000 | |
Nonredeemable Preferred Stock [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 0 | |
Nonredeemable Preferred Stock [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 0 | |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 16,164,000 | |
Equity security | 15,529,000 | |
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 | 16,164,000 | |
Equity security | 15,529,000 | |
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 | 0 | |
Equity security | 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 | $ 0 | |
Equity security | $ 0 |
Fair Value Measurements Financi
Fair Value Measurements Financial Instruments not Carried at Fair Value (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fixed maturities held-to-maturity | $ 0 | $ 241,377 | ||
Mortgage loans | 188 | 195 | ||
Policy loans | 79,012 | 73,735 | ||
Cash and cash equivalents, at carrying value | 68,753 | 46,064 | $ 45,000 | $ 35,510 |
Liability for future policy benefits individual and group annuities | $ 75,803 | $ 73,688 | ||
Mortgage loans on real estate, interest rate | 6.56% | 6.60% | ||
Mortgage loan maturity lower end range | 20 years | |||
Mortgage loan maturity higher end range | 24 years | |||
Mortgage loans interest rate used to estimate fair value | 6.25% | |||
Insurance policy loans interest rate | 7.70% | 7.70% | ||
Fair value minimum interest rate of investment contract | 2.56% | |||
Fair value maximum rate of investment contract | 4.32% | |||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fixed maturities held-to-maturity | $ 0 | $ 233,961 | ||
Mortgage loans | 188 | 195 | ||
Policy loans | 79,012 | 73,735 | ||
Cash and cash equivalents, at carrying value | 68,753 | 46,064 | ||
Liability for future policy benefits individual and group annuities | 56,085 | 55,035 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fixed maturities held-to-maturity | 0 | 241,377 | ||
Mortgage loans | 224 | 228 | ||
Policy loans | 79,012 | 73,735 | ||
Cash and cash equivalents, fair value disclosure | 68,753 | 46,064 | ||
Liability for future policy benefits individual and group annuities | $ 53,247 | $ 57,575 |
Short Duration Contracts (Detai
Short Duration Contracts (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Short Duration Contracts [Abstract] | ||||
Liability for Claims and Claims Adjustment Expense | $ 362 | $ 454 | $ 570 | $ 543 |
Reinsurance Recoverables, Including Reinsurance Premium Paid | 0 | 0 | 0 | 0 |
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 362 | 454 | $ 570 | $ 543 |
Current Year Claims and Claims Adjustment Expense | 1,441 | 1,435 | ||
Prior Year Claims and Claims Adjustment Expense | (176) | (11) | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims | 1,265 | 1,424 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Current Year | 1,163 | 1,106 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Prior Years | 310 | 407 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid | $ 1,473 | $ 1,513 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | ||
Total costs to remediate IRC Section 7702 issue | $ 8.9 | $ 12.5 |
Toll charges and fees to remediate IRC Section 7702 issue | 7.8 | |
Cost of claim and reserve liabilities to remediate IRC Section 7702 issue | 1.1 | |
Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Cost Range to Remediate IRC Section 7702 Issue | 4.5 | 5.9 |
Minimum [Member] | IRC Section 7702 remediation costs [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | 0.5 | |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Cost Range to Remediate IRC Section 7702 Issue | 52.5 | $ 48.2 |
Maximum [Member] | IRC Section 7702 remediation costs [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 1.5 |
Income Taxes (Current) (Details
Income Taxes (Current) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized Tax Benefits | $ 52,100 | $ 52,100 | ||
Current Income Tax Expense (Benefit) | (45,736) | $ 3,047 | ||
Deferred Income Tax Expense (Benefit) | 67,041 | (2,975) | ||
Income tax expense (benefit) | $ 20,316 | $ (339) | $ 21,305 | $ 72 |
Income Taxes (Rate Reconciliati
Income Taxes (Rate Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ 846 | $ 2,152 | ||
Federal Statutory Income Tax Rate | 21.00% | 35.00% | ||
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Amount | $ (126) | $ (336) | ||
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Percent | (3.10%) | (5.50%) | ||
Effective Income Tax rate Reconciliation Effect of Graduate Rate | $ 0 | $ (35) | ||
Effective Income Tax Rate Reconciliation Effects of Graduated Rate Percent | 0.00% | (0.60%) | ||
Unrecognized Tax Benefits, Income Tax Penalties Expense | $ 2,688 | $ (1,011) | ||
Effective Income Tax Rate Reconciliation, Tax Contingency, Domestic, Percent | 66.70% | (16.40%) | ||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Amount | $ (735) | $ (997) | ||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Percent | (18.20%) | (16.20%) | ||
Subpart F Income | $ 18,657 | $ 0 | ||
Subpart F Income, Percent | 462.90% | 0.00% | ||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | $ (25) | $ 299 | ||
Effective Income Tax Rate Reconciliation,Other Reconciling Items, Percent | (0.60%) | 4.90% | ||
Income tax expense (benefit) | $ 20,316 | $ (339) | $ 21,305 | $ 72 |
Effective Income Tax Rate | 528.70% | 1.20% |
Income Taxes (Deferred Federal
Income Taxes (Deferred Federal Income Taxes) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Future policy benefit reserves | $ 20,307 | $ 78,372 |
Net operating and capital loss carryforwards | 249 | 485 |
Accrued expenses | 68 | 65 |
Investments | 8,941 | 6,002 |
Other | 347 | 276 |
Total gross deferred tax assets | 29,912 | 85,200 |
Deferred policy acquisition costs, cost of customer relations acquired and intangible assets | (33,859) | (25,518) |
Unrealized gains on investments available-for-sale | 2,366 | 8,297 |
Accrued policyholder dividends | (2) | (441) |
Tax reserve transition liability | (3,883) | 0 |
Other | (176) | (147) |
Total gross deferred tax liabilities | (40,286) | (34,403) |
Net deferred tax liability | (10,374) | 0 |
Net deferred tax asset | $ 0 | $ 50,797 |
Stock Compensation (Details)
Stock Compensation (Details) | Feb. 16, 2018USD ($) |
Restricted Stock Units Award Announced | Feb. 15, 2018 |
Stock Granted, Value, Share-based Compensation, Gross | $ 1,200,000 |
Executive Management Team [Member] | |
Stock Granted, Value, Share-based Compensation, Gross | 976,000 |
Board of Director [Member] | |
Stock Granted, Value, Share-based Compensation, Gross | $ 10,500 |
Stock Compensation (Restricted
Stock Compensation (Restricted Stock Units) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding at January 1, 2018 | $ 0 | |
Granted (in dollars) | 1,070,500 | |
Vested (in dollars) | 0 | |
Forfeited (in dollars) | 160,495 | |
Outstanding at September 30, 2018 | 910,005 | |
Stock-based compensation | $ 310,000 | $ 0 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding at January 1, 2018 (in shares) | 0 | |
Granted (in shares) | 148,883 | |
Vested (in shares) | 0 | |
Forfeited (in shares) | 22,322 | |
Outstanding at September 30, 2018 (in shares) | 126,561 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Jul. 01, 2018 | Sep. 30, 2018 |
Related Party Transaction [Line Items] | ||
Related Party Transaction, Date | Jul. 1, 2018 | |
Statutory Accounting Practices, Risk Based Capital Requirements Compliance Assertion | As part of this transaction, the Company has agreed to infuse capital into CICA as required by the Colorado Department of Insurance to keep CICA's risk-based capital above 350% in any future calendar year-end periods. | |
CNLIC subsidiary of CICA [Member] [Domain] | ||
Related Party Transaction [Line Items] | ||
Capital Contribution to Subsidiary | $ 450,000 | |
MGLIC subsidiary of SPLIC [Member] [Domain] [Domain] | ||
Related Party Transaction [Line Items] | ||
Capital Contribution to Subsidiary | $ 450,000 |