Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | TORCHMARK CORP | |
Entity Central Index Key | 320,335 | |
Trading Symbol | TMK | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 123,330,265 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Investments: | ||
Fixed maturities, available for sale, at fair value (amortized cost: 2015–$13,166,248; 2014–$12,823,612) | $ 14,080,199 | $ 14,493,060 |
Equity securities, at fair value (cost: 2015–$776; 2014–$776) | 1,582 | 1,477 |
Policy loans | 486,042 | 472,109 |
Other long-term investments | 8,662 | 10,449 |
Short-term investments | 63,663 | 15,882 |
Total investments | 14,640,148 | 14,992,977 |
Cash | 59,485 | 66,019 |
Accrued investment income | 215,919 | 204,879 |
Other receivables | 676,155 | 543,988 |
Deferred acquisition costs | 3,585,302 | 3,471,781 |
Goodwill | 441,591 | 441,591 |
Other assets | 500,640 | 493,495 |
Total assets | 20,119,240 | 20,214,730 |
Liabilities: | ||
Future policy benefits | 12,117,926 | 11,750,495 |
Unearned and advance premiums | 70,334 | 72,275 |
Policy claims and other benefits payable | 245,706 | 212,137 |
Other policyholders’ funds | 95,798 | 95,446 |
Total policy liabilities | 12,529,764 | 12,130,353 |
Current and deferred income taxes payable | 1,588,992 | 1,797,265 |
Other liabilities | 355,428 | 359,118 |
Short-term debt | 618,236 | 238,398 |
Long-term debt (fair value: 2015–$868,502; 2014–$1,148,749) | 743,518 | 992,130 |
Total liabilities | 15,835,938 | 15,517,264 |
Shareholders’ equity: | ||
Preferred stock, par value $1 per share–Authorized 5,000,000 shares; outstanding: -0- in 2015 and in 2014 | 0 | 0 |
Common stock, par value $1 per share–Authorized 320,000,000 shares; outstanding: (2015–134,218,183 issued, less 10,501,488 held in treasury and 2014–134,218,183 issued, less 6,287,907 held in treasury) | 134,218 | 134,218 |
Additional paid-in capital | 488,318 | 457,613 |
Accumulated other comprehensive income | 499,829 | 997,452 |
Retained earnings | 3,686,375 | 3,376,846 |
Treasury stock, at cost | (525,438) | (268,663) |
Total shareholders’ equity | 4,283,302 | 4,697,466 |
Total liabilities and shareholders’ equity | $ 20,119,240 | $ 20,214,730 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available for sale, amortized cost | $ 13,166,248 | $ 12,823,612 |
Equity securities, cost | 776 | 776 |
Long-term debt, fair value | $ 868,502 | $ 1,148,749 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 320,000,000 | 320,000,000 |
Common stock, shares issued | 134,218,183 | 134,218,183 |
Common stock, shares held in treasury | 10,501,488 | 6,287,907 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |||
Revenue: | ||||||
Life premium | $ 518,929 | $ 491,724 | $ 1,552,309 | $ 1,472,734 | ||
Health premium | 280,744 | 293,879 | 913,001 | 931,533 | ||
Other premium | 41 | 112 | 119 | 334 | ||
Total premium | 799,714 | 785,715 | 2,465,429 | 2,404,601 | ||
Net investment income | 193,213 | 189,588 | 579,632 | 567,569 | ||
Realized investment gains | 5,140 | (1,483) | 7,872 | 15,713 | ||
Other income | 692 | 668 | 2,052 | 1,812 | ||
Total revenue | 998,759 | 974,488 | 3,054,985 | 2,989,695 | ||
Benefits and expenses: | ||||||
Life policyholder benefits | 342,196 | 328,116 | 1,029,261 | 972,484 | ||
Health policyholder benefits | 175,496 | 196,901 | 652,822 | 673,173 | ||
Other policyholder benefits | 9,648 | 10,515 | 29,447 | 31,599 | ||
Total policyholder benefits | 527,340 | 535,532 | 1,711,530 | 1,677,256 | ||
Amortization of deferred acquisition costs | 112,523 | 103,834 | 336,690 | 313,128 | ||
Commissions, premium taxes, and non-deferred acquisition costs | 65,127 | 63,636 | 192,413 | 185,034 | ||
Other operating expense | 57,779 | 55,402 | 171,368 | 168,758 | ||
Interest expense | 19,246 | 19,033 | 57,420 | 57,119 | ||
Total benefits and expenses | 782,015 | 777,437 | 2,469,421 | 2,401,295 | ||
Income before income taxes | 216,744 | 197,051 | 585,564 | 588,400 | ||
Income taxes | (71,358) | (64,639) | (191,420) | (192,209) | ||
Net income | $ 145,386 | $ 132,412 | $ 394,144 | $ 396,191 | ||
Basic net income per share | $ 1.17 | $ 1.02 | [1] | $ 3.13 | $ 3.01 | [1] |
Diluted net income per share | 1.15 | 1 | [1] | 3.09 | 2.97 | [1] |
Dividends declared per common share | $ 0.14 | $ 0.13 | [1] | $ 0.41 | $ 0.38 | [1] |
[1] | Certain balances were retrospectively adjusted to give effect to the adoption of new accounting guidance as described in Note G- Adoption of New Accounting Standards. |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net income | $ 145,386 | $ 132,412 | $ 394,144 | $ 396,191 |
Unrealized gains (losses) on securities: | ||||
Less applicable (taxes) benefits | 28,690 | 1,478 | 265,555 | (362,872) |
Unrealized investment gains (losses), net of tax | (52,927) | (2,702) | (493,227) | 674,117 |
Unrealized gains (losses) attributable to deferred acquisition costs | 1,436 | 693 | 5,041 | (6,580) |
Less applicable (taxes) benefits | (502) | (243) | (1,764) | 2,303 |
Unrealized gains (losses) attributable to deferred acquisition costs, net of tax | 934 | 450 | 3,277 | (4,277) |
Foreign exchange translation adjustments, other than securities | (9,031) | (6,650) | (22,567) | (4,642) |
Less applicable (taxes) benefits | 3,164 | 2,084 | 7,667 | 1,334 |
Foreign exchange translation adjustments, other than securities, net of tax | (5,867) | (4,566) | (14,900) | (3,308) |
Pension adjustments | 3,646 | 2,571 | 11,118 | 8,176 |
Less applicable (taxes) benefits | (1,276) | (900) | (3,891) | (2,862) |
Pension adjustments, net of tax | 2,370 | 1,671 | 7,227 | 5,314 |
Other comprehensive income (loss) | (55,490) | (5,147) | (497,623) | 671,846 |
Comprehensive income (loss) | 89,896 | 127,265 | (103,479) | 1,068,037 |
Securities [Member] | ||||
Unrealized gains (losses) on securities: | ||||
Unrealized holding gains (losses) arising during period | (72,228) | (2,627) | (740,934) | 1,057,710 |
Reclassification adjustment for (gains) losses on securities included in net income | (5,540) | 1,261 | (7,138) | (15,935) |
Reclassification adjustment for amortization of (discount) and premium | (1,569) | (2,354) | (4,840) | (6,898) |
Foreign exchange adjustment on securities recorded at fair value | (1,217) | (523) | (2,480) | (654) |
Unrealized gains (losses) on securities | (80,554) | (4,243) | (755,392) | 1,034,223 |
Other Investments [Member] | ||||
Unrealized gains (losses) on securities: | ||||
Unrealized gains (losses) on other investments | (1,063) | 63 | (3,390) | 2,766 |
Total unrealized investment gains (losses) | $ (81,617) | $ (4,180) | $ (758,782) | $ 1,036,989 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Cash Flows [Abstract] | ||
Cash provided from operations | $ 729,892 | $ 644,398 |
Long-term investments sold or matured: | ||
Fixed maturities available for sale—sold | 26,330 | 56,447 |
Fixed maturities available for sale—matured, called, and repaid | 342,796 | 217,929 |
Equity securities | 0 | 700 |
Other long-term investments | 2,452 | 70 |
Total long-term investments sold or matured | 371,578 | 275,146 |
Long-term investments acquired: | ||
Fixed maturities | (730,145) | (499,950) |
Other long-term investments | (1,906) | 0 |
Total long-term investments acquired | (732,051) | (499,950) |
Net increase in policy loans | (13,933) | (16,112) |
Net (increase) decrease in short-term investments | (47,781) | (2,207) |
Disposition of properties | 0 | 54 |
Additions to properties | (30,663) | (14,482) |
Investment in low-income housing interests | (27,078) | (39,279) |
Cash used for investment activities | (479,928) | (296,830) |
Cash provided from (used for) financing activities: | ||
Proceeds from exercise of stock options | 32,519 | 39,557 |
Net borrowings (repayments) of commercial paper | 130,215 | 61,352 |
Excess tax benefit from stock option exercises | 15,679 | 12,484 |
Acquisition of treasury stock | (330,066) | (342,084) |
Cash dividends paid to shareholders | (50,217) | (48,628) |
Net receipts (withdrawals) from deposit-type products | (69,188) | (49,431) |
Cash provided by (used for) financing activities | (271,058) | (326,750) |
Effect of foreign exchange rate changes on cash | 14,560 | 9,237 |
Net (decrease) increase in cash | (6,534) | 30,055 |
Cash at beginning of year | 66,019 | 36,943 |
Cash at end of period | $ 59,485 | $ 66,998 |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies The accompanying condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the annual disclosures required by accounting principles generally accepted in the United States of America (GAAP). However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial position at September 30, 2015 , and the condensed consolidated results of operations, comprehensive income, and cash flows for the periods ended September 30, 2015 and 2014 . The interim period condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements that are included in the Form 10-K filed with the Securities Exchange Commission (SEC) on February 27, 2015. Effective January 1, 2015, Torchmark adopted Financial Accounting Standards Board (FASB) Accounting Standards Update No. 2014-01 Investments-Equity Method and Joint Ventures: Accounting for Investments in Qualified Affordable Housing Projects (ASU 2014-01). As a result of the adoption, the Company retrospectively adjusted prior periods. See Note G - Adoption of New Accounting Standards for further detail. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share A reconciliation of basic and diluted weighted-average shares outstanding is as follows: For the Three Months Ended For the Nine Months Ended 2015 2014 2015 2014 Basic weighted average shares outstanding 124,457,996 129,969,902 125,788,925 131,529,818 Weighted average dilutive options outstanding 1,682,313 1,907,303 1,614,164 1,901,522 Diluted weighted average shares outstanding 126,140,309 131,877,205 127,403,089 133,431,340 Antidilutive shares — — — — |
Postretirement Benefit Plans
Postretirement Benefit Plans | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Postretirement Benefit Plans | Postretirement Benefit Plans The following tables present a summary of post-retirement benefit costs by component. Components of Post-Retirement Benefit Costs Three Months Ended September 30, Pension Benefits Other Benefits 2015 2014 2015 2014 Service cost $ 3,990 $ 3,231 $ — $ 25 Interest cost 5,003 4,695 203 (63 ) Expected return on assets (5,323 ) (4,768 ) — — Amortization: Prior service cost 81 529 — — Actuarial (gain) loss 3,533 2,035 30 3 Actuarial valuation adjustment — — — 460 Direct recognition of expense — 131 166 114 Net periodic benefit cost $ 7,284 $ 5,853 $ 399 $ 539 Nine Months Ended September 30, Pension Benefits Other Benefits 2015 2014 2015 2014 Service cost $ 11,971 $ 9,694 $ — $ 74 Interest cost 15,009 14,333 610 234 Expected return on assets (15,969 ) (14,273 ) — — Amortization: Prior service cost 244 1,586 — — Actuarial (gain)/loss 10,601 6,127 90 3 Actuarial valuation adjustment — — — 460 Direct recognition of expense — 131 493 10 Net periodic benefit cost $ 21,856 $ 17,598 $ 1,193 $ 781 The following table presents assets at fair value for the defined-benefit pension plans at September 30, 2015 and the prior-year end. Pension Assets by Component September 30, 2015 December 31, 2014 Amount % Amount % Corporate debt $ 153,536 49 $ 166,825 52 Other fixed maturities 279 — 284 — Equity securities 121,199 39 127,568 39 Short-term investments 16,414 5 9,038 3 Guaranteed annuity contract 16,973 6 15,027 5 Other 3,571 1 4,156 1 Total $ 311,972 100 $ 322,898 100 The liability for the funded defined-benefit pension plans was $386 million at September 30, 2015 and $403 million at December 31, 2014 . Cash contributions of $13.6 million were made to the qualified pension plans during the nine months ended September 30, 2015 . Torchmark does not expect to make further cash contributions to these plans during 2015 . With respect to the Company’s non-qualified supplemental retirement plan, life insurance policies on the lives of plan participants have been established with an unaffiliated carrier to fund a portion of the Company’s obligations under the plan. These policies, as well as investments deposited with an unaffiliated trustee, were previously placed in a Rabbi Trust to provide for payment of the plan obligations. At September 30, 2015 , the combined value of the insurance policies and investments in the Rabbi Trust to support plan liabilities were $78 million , compared with $74 million at year-end 2014 . Since this plan is non-qualified, the values of the insurance policies and investments are recorded as other assets in the Condensed Consolidated Balance Sheets and are not included in the chart of plan assets above. The liability for the non-qualified pension plan was $73 million at September 30, 2015 and $71 million at December 31, 2014 . |
Investments
Investments | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Portfolio Composition: A summary of fixed maturities and equity securities available for sale by cost or amortized cost and estimated fair value at September 30, 2015 is as follows: Portfolio Composition as of September 30, 2015 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value % of Total Fixed Maturities* Fixed maturities available for sale: Bonds: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 373,835 $ 1,618 $ (5,696 ) $ 369,757 3 States, municipalities, and political subdivisions 1,296,976 138,075 (1,374 ) 1,433,677 10 Foreign governments 20,905 1,545 (4 ) 22,446 — Corporates, by sector: Financial 2,688,462 340,450 (44,834 ) 2,984,078 21 Utilities 2,105,221 274,626 (21,681 ) 2,358,166 17 Energy 1,538,147 89,072 (111,771 ) 1,515,448 11 Other corporate sectors 4,648,140 363,206 (163,826 ) 4,847,520 34 Total corporates 10,979,970 1,067,354 (342,112 ) 11,705,212 83 Collateralized debt obligations 63,960 16,745 (8,593 ) 72,112 1 Other asset-backed securities 19,273 978 — 20,251 — Redeemable preferred stocks, by sector: Financial 382,674 48,618 (4,431 ) 426,861 3 Utilities 28,655 1,228 — 29,883 — Total redeemable preferred stocks 411,329 49,846 (4,431 ) 456,744 3 Total fixed maturities 13,166,248 1,276,161 (362,210 ) 14,080,199 100 Equity securities 776 806 — 1,582 Total fixed maturities and equity securities $ 13,167,024 $ 1,276,967 $ (362,210 ) $ 14,081,781 * At fair value A schedule of fixed maturities by contractual maturity date at September 30, 2015 is shown below on an amortized cost basis and on a fair value basis. Actual maturity dates could differ from contractual maturities due to call or prepayment provisions. Amortized Fair Value Fixed maturities available for sale: Due in one year or less $ 53,589 $ 54,217 Due from one to five years 572,013 632,991 Due from five to ten years 951,645 1,042,986 Due from ten to twenty years 3,841,490 4,296,570 Due after twenty years 7,662,273 7,958,875 Mortgage-backed and asset-backed securities 85,238 94,560 $ 13,166,248 $ 14,080,199 Selected information about sales of fixed maturities is as follows. For the Nine Months Ended September 30, 2015 2014 Proceeds from sales $ 26,330 $ 56,447 Gross realized gains 260 16,473 Gross realized losses (354 ) (1,701 ) Fair Value Measurements : The following table represents assets measured at fair value on a recurring basis. Fair Value Measurements at September 30, 2015 Using: Description Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Fixed maturities available for sale: Bonds: U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 369,757 $ — $ 369,757 States, municipalities, and political subdivisions — 1,433,677 — 1,433,677 Foreign governments — 22,446 — 22,446 Corporates, by sector: Financial — 2,920,889 63,189 2,984,078 Utilities 15,180 2,206,803 136,183 2,358,166 Energy — 1,488,583 26,865 1,515,448 Other corporate sectors — 4,534,087 313,433 4,847,520 Total corporates 15,180 11,150,362 539,670 11,705,212 Collateralized debt obligations — — 72,112 72,112 Other asset-backed securities — 20,251 — 20,251 Redeemable preferred stocks, by sector: Financial 10,068 416,793 — 426,861 Utilities — 29,883 — 29,883 Total redeemable preferred stocks 10,068 446,676 — 456,744 Total fixed maturities 25,248 13,443,169 611,782 14,080,199 Equity securities 723 — 859 1,582 Total fixed maturities and equity securities $ 25,971 $ 13,443,169 $ 612,641 $ 14,081,781 Percent of total 0.2 % 95.5 % 4.3 % 100.0 % The following table represents an analysis of changes in fair value measurements using significant unobservable inputs (Level 3). Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the Nine Months Ended September 30, 2015 Collateralized Corporates (1) Equities Total Balance at January 1, 2015 $ 63,232 $ 512,714 $ 833 $ 576,779 Total gains or losses: Included in realized gains/losses — 1,182 — 1,182 Included in other comprehensive income 12,797 (3,121 ) 26 9,702 Acquisitions — 38,600 — 38,600 Amortization 4,183 14 — 4,197 Other (2) (8,100 ) (9,719 ) — (17,819 ) Transfers in and/or out of Level 3 (3) — — — — Balance at September 30, 2015 $ 72,112 $ 539,670 $ 859 $ 612,641 Percent of total fixed maturity and equity securities 0.5 % 3.8 % — % 4.3 % For the Nine Months Ended September 30, 2014 Collateralized Corporates (1) Equities Total Balance at January 1, 2014 $ 58,205 $ 300,300 $ 776 $ 359,281 Total gains or losses: Included in realized gains/losses 15,924 1 — 15,925 Included in other comprehensive income 3,929 19,967 57 23,953 Acquisitions — 186,365 — 186,365 Sales (16,049 ) (1 ) — (16,050 ) Amortization 4,072 10 — 4,082 Other (2) (3,231 ) (1,773 ) — (5,004 ) Transfers in and/or out of Level 3 (3) — — — — Balance at September 30, 2014 $ 62,850 $ 504,869 $ 833 $ 568,552 Percent of total fixed maturity and equity securities 0.4 % 3.6 % — % 4.0 % (1) Includes redeemable preferred stocks. (2) Includes capitalized interest, foreign exchange adjustments, and principal repayments. (3) Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available. Other-Than-Temporary Impairments: There were no other-than-temporary impairments during the nine -month periods ended September 30, 2015 and 2014 , respectively. Unrealized Loss Analysis: The following table discloses information about investments in an unrealized loss position. Less than Twelve Months Twelve Months or Longer Total Number of issues (CUSIP numbers) held: As of September 30, 2015 368 66 434 As of December 31, 2014 80 173 253 Torchmark’s entire fixed-maturity and equity portfolio consisted of 1,570 issues at September 30, 2015 and 1,604 issues at December 31, 2014 . The weighted average quality rating of all unrealized loss positions as of September 30, 2015 was BBB+ . Although Torchmark’s fixed-maturity investments are available for sale, Torchmark’s management generally does not intend to sell and does not believe it will be required to sell any securities which are temporarily impaired before they recover due to the strong and stable cash flows generated by its insurance products. The following table discloses unrealized investment losses by class of investment at September 30, 2015 for the period of time in a loss position. Torchmark does not view these investments as other-than-temporarily impaired. Analysis of Gross Unrealized Investment Losses At September 30, 2015 Less than Twelve Months Twelve Months or Longer Total Description of Securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fixed maturities available for sale: Investment grade: Bonds: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 216,022 $ (5,042 ) $ 14,920 $ (654 ) $ 230,942 $ (5,696 ) States, municipalities and political subdivisions 48,097 (1,033 ) 1,685 (107 ) 49,782 (1,140 ) Foreign governments 4,574 (4 ) — — 4,574 (4 ) Corporates, by sector: Financial 283,220 (11,605 ) — — 283,220 (11,605 ) Utilities 403,693 (21,681 ) — — 403,693 (21,681 ) Energy 650,698 (69,271 ) 92,025 (31,189 ) 742,723 (100,460 ) Other corporate sectors 1,547,634 (126,366 ) 44,927 (8,257 ) 1,592,561 (134,623 ) Total corporates 2,885,245 (228,923 ) 136,952 (39,446 ) 3,022,197 (268,369 ) Total investment grade 3,153,938 (235,002 ) 153,557 (40,207 ) 3,307,495 (275,209 ) Below investment grade: Bonds: States, municipalities and political subdivisions — — 321 (234 ) 321 (234 ) Corporates, by sector: Financial — — 72,564 (33,229 ) 72,564 (33,229 ) Energy 42,319 (8,391 ) 8,106 (2,920 ) 50,425 (11,311 ) Other corporate sectors 61,857 (22,737 ) 55,836 (6,466 ) 117,693 (29,203 ) Total corporates 104,176 (31,128 ) 136,506 (42,615 ) 240,682 (73,743 ) Collateralized debt obligations — — 11,407 (8,593 ) 11,407 (8,593 ) Redeemable preferred stocks, by sector: Financial — — 22,730 (4,431 ) 22,730 (4,431 ) Total redeemable preferred stocks — — 22,730 (4,431 ) 22,730 (4,431 ) Total below investment grade 104,176 (31,128 ) 170,964 (55,873 ) 275,140 (87,001 ) Total fixed maturities 3,258,114 (266,130 ) 324,521 (96,080 ) 3,582,635 (362,210 ) Equity securities — — — — — — Total fixed maturities and equity securities $ 3,258,114 $ (266,130 ) $ 324,521 $ (96,080 ) $ 3,582,635 $ (362,210 ) |
Supplemental Information about
Supplemental Information about Changes to Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Supplemental Information about Changes to Accumulated Other Comprehensive Income | Supplemental Information about Changes to Accumulated Other Comprehensive Income An analysis of the change in balance by component of Accumulated Other Comprehensive Income is as follows for the three and nine month periods ended September 30, 2015 and 2014 . Components of Accumulated Other Comprehensive Income For the Three Months Ended September 30, 2015 Available for Deferred Foreign Pension Total Balance at July 1, 2015 $ 649,973 $ (8,415 ) $ 8,353 $ (94,592 ) $ 555,319 Other comprehensive income (loss) before reclassifications, net of tax (48,306 ) 934 (5,867 ) 1 (53,238 ) Reclassifications, net of tax (4,621 ) — — 2,369 (2,252 ) Other comprehensive income (loss) (52,927 ) 934 (5,867 ) 2,370 (55,490 ) Balance at September 30, 2015 $ 597,046 $ (7,481 ) $ 2,486 $ (92,222 ) $ 499,829 For the Three Months Ended September 30, 2014 Available Deferred Foreign Pension Total Balance at July 1, 2014 $ 933,015 $ (11,455 ) $ 26,124 $ (59,710 ) $ 887,974 Other comprehensive income (loss) before reclassifications, net of tax (1,991 ) 450 (4,566 ) 2 (6,105 ) Reclassifications, net of tax (711 ) — — 1,669 958 Other comprehensive income (loss) (2,702 ) 450 (4,566 ) 1,671 (5,147 ) Balance at September 30, 2014 $ 930,313 $ (11,005 ) $ 21,558 $ (58,039 ) $ 882,827 Note E—Supplemental Information about Changes to Accumulated Other Comprehensive Income (continued) Components of Accumulated Other Comprehensive Income For the Nine Months Ended September 30, 2015 Available for Sale Assets Deferred Acquisition Costs Foreign Exchange Pension Adjustments Total Balance at January 1, 2015 $ 1,090,273 $ (10,758 ) $ 17,386 $ (99,449 ) $ 997,452 Other comprehensive income (loss) before reclassifications, net of tax (485,441 ) 3,277 (14,900 ) 118 (496,946 ) Reclassifications, net of tax (7,786 ) — — 7,109 (677 ) Other comprehensive income (loss) (493,227 ) 3,277 (14,900 ) 7,227 (497,623 ) Balance at September 30, 2015 $ 597,046 $ (7,481 ) $ 2,486 $ (92,222 ) $ 499,829 For the Nine Months Ended September 30, 2014 Available for Sale Assets Deferred Acquisition Costs Foreign Exchange Pension Adjustments Total Balance at January 1, 2014 $ 256,196 $ (6,728 ) $ 24,866 $ (63,353 ) $ 210,981 Other comprehensive income (loss) before reclassifications, net of tax 688,958 (4,277 ) (3,308 ) 299 681,672 Reclassifications, net of tax (14,841 ) — — 5,015 (9,826 ) Other comprehensive income (loss) 674,117 (4,277 ) (3,308 ) 5,314 671,846 Balance at September 30, 2014 $ 930,313 $ (11,005 ) $ 21,558 $ (58,039 ) $ 882,827 Reclassifications out of Accumulated Other Comprehensive Income are presented below for the three and nine month periods ended September 30, 2015 and 2014 . Reclassification Adjustments Three Months Ended Nine Months Ended Affected line items in the Statement of Operations 2015 2014 2015 2014 Unrealized investment gains (losses) on available for sale assets: Realized (gains) losses $ (5,540 ) $ 1,261 $ (7,138 ) $ (15,935 ) Realized investment gains (losses) Amortization of (discount) premium (1,569 ) (2,354 ) (4,840 ) (6,898 ) Net investment income Total before tax (7,109 ) (1,093 ) (11,978 ) (22,833 ) Tax 2,488 382 4,192 7,992 Income Taxes Total after tax (4,621 ) (711 ) (7,786 ) (14,841 ) Pension adjustments: Amortization of prior service cost 81 529 244 1,586 Other operating expenses Amortization of actuarial gain (loss) 3,563 2,038 10,691 6,130 Other operating expenses Total before tax 3,644 2,567 10,935 7,716 Tax (1,275 ) (898 ) (3,826 ) (2,701 ) Income Taxes Total after tax 2,369 1,669 7,109 5,015 Total reclassifications (after tax) $ (2,252 ) $ 958 $ (677 ) $ (9,826 ) |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Torchmark is comprised of life insurance companies which primarily market individual life and supplemental health insurance products through niche distribution channels to middle income Americans. Torchmark’s core operations are insurance marketing and underwriting, and management of its investments. The insurance marketing and underwriting operation is segmented by the types of insurance products offered: life, health, Medicare Part D, and annuity. Premium income for Medicare Part D health insurance is included with the premium for other health products in the Condensed Consolidated Statements of Operations. Annuity revenue is classified as “Other premium.” Management’s measure of profitability for each insurance segment is insurance underwriting margin, which is underwriting income before other income and insurance administrative expenses. It represents the profit margin on insurance products before administrative expenses, and is calculated by deducting net policy obligations (claims incurred and change in reserves), commissions and other acquisition expenses from premium revenue. Torchmark further views the profitability of each insurance product segment by the marketing groups that distribute the products of that segment: direct response, independent agencies, or captive agencies. Torchmark’s management prefers to evaluate the performance of its underwriting and investment activities separately, rather than allocating investment income to the underwriting results. As such, the investment function is presented as a stand-alone segment. The investment segment includes the management of the investment portfolio, debt, and cash flow. Management’s measure of profitability for this segment is excess investment income, which is the income earned on the investment portfolio less the required interest on net policy liabilities and financing costs. Financing costs include the interest on Torchmark’s debt. Other income and insurance administrative expense are classified in a separate “Other” segment. The majority of the Company’s required interest on net policy liabilities (benefit reserves less the deferred acquisition cost asset) is not credited to policyholder accounts. Instead, it is an actuarial assumption for discounting cash flows in the computation of benefit reserves and the amortization of the deferred acquisition cost asset. Investment income required to fund the required interest on net policy liabilities is removed from the investment segment and applied to the insurance segments to eliminate the effect of the required interest from the insurance segments. As a result, the investment segment measures net investment income against the required interest on net policy liabilities and financing costs, while the insurance segments simply measure premiums against benefits and expenses. We believe this presentation facilitates a more meaningful analysis of the Company’s underwriting and investment performance as the underwriting results are based on premiums, claims, and expenses and are not affected by unanticipated fluctuations in investment yields. As noted, Torchmark’s “core operations” are insurance and investment management. The insurance segments issue policies for which premiums are collected for the eventual payment of policy benefits. In addition to policy benefits, operating expenses are incurred including acquisition costs, administrative expenses, and taxes. Because life and health contracts can be long term, premium receipts in excess of current expenses are invested. Investment activities, conducted by the investment segment, focus on seeking quality investments with a yield and term appropriate to support the insurance product obligations. These investments generally consist of fixed maturities, and, over the long term, the expected yields are taken into account when setting insurance premium rates and product profitability expectations. As a result, fixed maturities are generally held for long periods to support the liabilities, and Torchmark generally expects to hold investments until maturity. Dispositions of investments occur from time to time, generally as a result of credit concerns, calls by issuers, or other factors usually beyond the control of management. Dispositions are sometimes required in order to maintain the Company’s investment policies and objectives. Investments are also occasionally written down as a result of other-than-temporary impairment. Torchmark does not actively trade investments. As a result, realized gains and losses from the disposition and write down of investments are generally incidental to operations and are not considered a material factor in insurance pricing or product profitability. While from time to time these realized gains and losses could be significant to net income in the period in which they occur, they generally have a limited effect on the yield of the total investment portfolio. Further, because the proceeds of the disposals are reinvested in the portfolio, the disposals have little effect on the size of the portfolio and the income from the reinvestments is included in net investment income. Therefore, management removes realized investment gains and losses from results of core operations when evaluating the performance of the Company. For this reason, these gains and losses are excluded from Torchmark’s operating segments. Torchmark accounts for its stock options and restricted stock under current accounting guidance requiring stock options and stock grants to be expensed based on fair value at the time of grant. Management considers stock compensation expense to be an expense of the Parent Company. Therefore, stock compensation expense is treated as a corporate expense in Torchmark’s segment analysis. Torchmark provides coverage under the Medicare Part D prescription drug plan for Medicare beneficiaries. In accordance with GAAP, Part D premiums are recognized evenly throughout the year when they become due, but benefit costs are recognized when the costs are incurred. Due to the design of the Part D product, premiums are evenly distributed throughout the year, but benefit costs are higher earlier in the year. As a result, under GAAP, benefit costs can exceed premiums in the first part of the year, but be less than premiums during the remainder of the year. In order to more closely match the benefit cost with the associated revenue for interim periods, Torchmark defers these excess benefits for segment reporting purposes. In addition, GAAP recognizes in each quarter a government risk-sharing premium adjustment consistent with the contract as if the quarter represented an entire contract period. These quarterly risk-sharing adjustments are removed in the segment analysis because the actual contract payments are based upon the experience of the full contract year, not the experience of interim periods. Total premiums less total benefits will be the same for segment reporting purposes as they will be under GAAP for the full calendar year. The Company’s presentation results in the underwriting margin percentage in interim periods reflecting the expected margin percentage for the full year. These interim adjustments do not impact the full year results. An analysis of the adjustments for the difference in the interim results as presented for segment purposes and GAAP for Medicare Part D is as follows: Nine Months Ended 2015 2014 Benefit costs deferred $ 11,649 $ 45,382 Government risk-sharing premium adjustment 9,322 (28,532 ) Pre-tax addition to segment interim period income $ 20,971 $ 16,850 After tax amount $ 13,631 $ 10,952 Additionally, management does not view the risk-sharing premium for Medicare Part D as a component of premium income, and accordingly adjusts health premium income in its segment analysis. A reconciliation of health premium included in the segment analysis with health premium as reported in the Condensed Consolidated Statements of Operations is presented in the following table. Nine Months Ended 2015 2014 % Change Premium per segment analysis: Medicare Part D premium $ 232,102 $ 258,243 (10 ) Other health premium 690,221 644,758 7 Part D risk-sharing adjustment (9,322 ) 28,532 (133 ) Health premium per Condensed Consolidated Statements of Operations $ 913,001 $ 931,533 (2 ) During the first nine months of 2014 , Torchmark accrued for certain litigation cases in the net amount of $3.7 million ( $2.4 million after tax) that were not directly related to its insurance operations. Additionally, Torchmark received $1.3 million ( $853 thousand after tax) in settlement of litigation regarding investments. Also in the second quarter of 2014 , the Company recorded $8.2 million in administrative settlements ( $5.3 million after tax) related to benefits paid for deaths occurring in prior years where claims had not been filed. These administrative settlements were the result of the Company matching policyholder information against the Social Security death master file and obtaining due proof of loss. These administrative settlements were included in "Policyholder benefits" in the Consolidated Statements of Operations in 2014. Torchmark removes amounts that do not relate to its core insurance operations from its segment analysis. The following tables set forth a reconciliation of Torchmark’s revenues and operations by segment to its pretax income and each significant line item in its Condensed Consolidated Statements of Operations . Reconciliation of Segment Operating Information to the Consolidated Statement of Operations For the Nine Months Ended September 30, 2015 Life Health Medicare Annuity Investment Other & Adjustments Consolidated Revenue: Premium $ 1,552,309 $ 690,221 $ 232,102 $ 119 $ (9,322 ) (1) $ 2,465,429 Net investment income $ 579,632 579,632 Other income $ 2,201 (149 ) (3) 2,052 Total revenue 1,552,309 690,221 232,102 119 579,632 2,201 (9,471 ) 3,047,113 Expenses: Policy benefits 1,029,261 448,539 192,634 29,447 11,649 (1) 1,711,530 Required interest on reserves (412,264 ) (51,450 ) (40,084 ) 503,798 — Required interest on DAC 129,339 17,058 673 885 (147,955 ) — Amortization of acquisition costs 265,641 61,858 2,649 6,542 336,690 Commissions and premium tax 115,452 60,820 16,258 32 (149 ) (3) 192,413 Insurance administrative expense (2) 142,829 142,829 Parent expense 6,662 6,662 Stock compensation expense 21,877 21,877 Interest expense 57,420 57,420 Total expenses 1,127,429 536,825 212,214 (3,178 ) 413,263 171,368 11,500 2,469,421 Subtotal 424,880 153,396 19,888 3,297 166,369 (169,167 ) (20,971 ) 577,692 Nonoperating items 20,971 (1) 20,971 Measure of segment profitability (pretax) $ 424,880 $ 153,396 $ 19,888 $ 3,297 $ 166,369 $ (169,167 ) $ — 598,663 Deduct applicable income taxes (196,005 ) Segment profits after tax 402,658 Add back income taxes applicable to segment profitability 196,005 Add (deduct) realized investment gains (losses) 7,872 Deduct Part D adjustment (1) (20,971 ) Pretax income per Consolidated Statements of Operations $ 585,564 (1) Medicare Part D items adjusted to GAAP from the segment analysis, which matches expected benefits with policy premium. (2) Administrative expense is not allocated to insurance segments. (3) Elimination of intersegment commission. Reconciliation of Segment Operating Information to the Condensed Consolidated Statement of Operations * For the Nine Months Ended September 30, 2014 Life Health Medicare Annuity Investment Other & Adjustments Consolidated Revenue: Premium $ 1,472,734 $ 644,758 $ 258,243 $ 334 $ 28,532 (1) $ 2,404,601 Net investment income $ 567,569 567,569 Other income $ 1,990 (178 ) (3) 1,812 Total revenue 1,472,734 644,758 258,243 334 567,569 1,990 28,354 2,973,982 Expenses: Policy benefits 964,305 414,607 213,184 31,599 53,561 (1,5) 1,677,256 Required interest on reserves (395,595 ) (48,018 ) (41,576 ) 485,189 — Required interest on DAC 125,758 16,823 534 1,120 (144,235 ) — Amortization of acquisition costs 251,954 53,088 2,127 5,959 313,128 Commissions and premium tax 105,724 59,787 19,664 37 (178 ) (3) 185,034 Insurance administrative (2) 134,918 2,337 (4) 137,255 Parent expense 6,284 6,284 Stock compensation expense 25,219 25,219 Interest expense 57,119 57,119 Total expenses 1,052,146 496,287 235,509 (2,861 ) 398,073 166,421 55,720 2,401,295 Subtotal 420,588 148,471 22,734 3,195 169,496 (164,431 ) (27,366 ) 572,687 Nonoperating items 27,366 (1,4,5) 27,366 Measure of segment profitability (pretax) $ 420,588 $ 148,471 $ 22,734 $ 3,195 $ 169,496 $ (164,431 ) $ — 600,053 Deduct applicable income taxes (196,288 ) Segment profits after tax 403,765 Add back income taxes applicable to segment profitability 196,288 Add (deduct) realized investment gains (losses) 15,713 Deduct Part D adjustment (1) (16,850 ) Deduct legal settlement expense (4) (2,337 ) Deduct administrative settlements (5) (8,179 ) Pretax income per Consolidated Statements of Operations $ 588,400 (1) Medicare Part D items adjusted to GAAP from the segment analysis, which matches expected benefits with policy premium. (2) Administrative expense is not allocated to insurance segments. (3) Elimination of intersegment commission. (4) Legal settlement expenses. (5) Administrative settlements. * Retrospectively adjusted to give effect to the adoption ASU 2014-01 as described in Note G- Adoption of New Accounting Standards . The following table summarizes the measures of segment profitability for comparison. It also reconciles segment profits to net income. Analysis of Profitability by Segment Nine Months Ended September 30, Increase (Decrease) 2015 2014* Amount % Life $ 424,880 $ 420,588 $ 4,292 1 Health 153,396 148,471 4,925 3 Medicare Part D 19,888 22,734 (2,846 ) (13 ) Annuity 3,297 3,195 102 3 Investment 166,369 169,496 (3,127 ) (2 ) Other and corporate: Other income 2,201 1,990 211 11 Administrative expense (142,829 ) (134,918 ) (7,911 ) 6 Corporate (28,539 ) (31,503 ) 2,964 (9 ) Pretax total 598,663 600,053 (1,390 ) — Applicable taxes (196,005 ) (196,288 ) 283 — Total 402,658 403,765 (1,107 ) — Reconciling items, net of tax: Realized gains (losses) - Investments 5,117 10,213 (5,096 ) (50 ) Part D adjustment (13,631 ) (10,952 ) (2,679 ) 24 Administrative settlements — (5,316 ) 5,316 (100 ) Legal settlement expense — (1,519 ) 1,519 (100 ) Net income $ 394,144 $ 396,191 $ (2,047 ) (1 ) * Retrospectively adjusted to give effect to the adoption of ASU 2014-01 as described in Note G-Adoption of New Accounting Standards. |
Adoption of New Accounting Stan
Adoption of New Accounting Standards | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Adoption of New Accounting Standards | Adoption of New Accounting Standards Low-income housing tax credits: As described in Note A , the FASB issued and Torchmark adopted new guidance concerning Investments-Equity Method and Joint Ventures: Accounting for Investments in Qualified Affordable Housing Projects (ASU 2014-01) as of January 1, 2015. The guidance replaces the effective-yield method of amortization with respect to investments in qualified affordable housing acquired after the date of adoption and, if certain conditions are present, provides for a proportional amortization method. The proportional amortization method allows an investor to amortize the cost of its investment based on the proportion of the tax credits received during the year to the total expected tax credits to be received over the life of the investment. The guidance further provides that the effective-yield method of amortization may continue to be used with respect to investments acquired before the date of adoption. Amortization, previously required to be recognized in the Condensed Consolidated Statements of Operations as a component of "Net investment income", will now be included in "Income tax expense." Torchmark will continue to use the effective-yield method of amortization with respect to its guaranteed investments acquired prior to January 1, 2015, but will retroactively adopt the new guidance and apply the proportional method of amortization with respect to its non-guaranteed investments. The proportional method of amortization is consistent with Torchmark’s historical method of amortization. As a result, the only impact of the adoption is to reclassify amortization expense from “Net investment income” to “Income tax expense” with no impact on Torchmark's historical net income, cash flows, liquidity, or statutory earnings of its insurance subsidiaries. The following table reflects a summary of the impact of the retrospectively adjusted balances on the Company's Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2014 . Three Months Ended September 30, 2014 Income Statement As previously reported Adjustments As adjusted Net investment income $ 182,101 $ 7,487 $ 189,588 Total revenue 967,001 7,487 974,488 Income before income taxes 189,564 7,487 197,051 Income taxes (57,152 ) (7,487 ) (64,639 ) Net income 132,412 — 132,412 Nine Months Ended September 30, 2014 Income Statement As previously reported Adjustments As adjusted Net investment income $ 545,978 $ 21,591 $ 567,569 Total revenue 2,968,104 21,591 2,989,695 Income before income taxes 566,809 21,591 588,400 Income taxes (170,618 ) (21,591 ) (192,209 ) Net income 396,191 — 396,191 Debt Issuance Costs: In April 2015, the FASB issued Interest—Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03) . The guidance requires companies to change the presentation of debt issuance costs in the financial statements by presenting such costs as a direct deduction from the related debt liability rather than as an asset. Amortization of the debt issuance costs will continue to be reported as interest expense. The guidance is effective for fiscal years and interim periods beginning after December 15, 2015 with early adoption permitted. Torchmark adopted this ASU upon issuance and there was no material impact on the consolidated financial statements. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the annual disclosures required by accounting principles generally accepted in the United States of America (GAAP). However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial position at September 30, 2015 , and the condensed consolidated results of operations, comprehensive income, and cash flows for the periods ended September 30, 2015 and 2014 . The interim period condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements that are included in the Form 10-K filed with the Securities Exchange Commission (SEC) on February 27, 2015. |
New Accounting Pronouncements | Effective January 1, 2015, Torchmark adopted Financial Accounting Standards Board (FASB) Accounting Standards Update No. 2014-01 Investments-Equity Method and Joint Ventures: Accounting for Investments in Qualified Affordable Housing Projects (ASU 2014-01). As a result of the adoption, the Company retrospectively adjusted prior periods. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Weighted-Average Shares Outstanding | A reconciliation of basic and diluted weighted-average shares outstanding is as follows: For the Three Months Ended For the Nine Months Ended 2015 2014 2015 2014 Basic weighted average shares outstanding 124,457,996 129,969,902 125,788,925 131,529,818 Weighted average dilutive options outstanding 1,682,313 1,907,303 1,614,164 1,901,522 Diluted weighted average shares outstanding 126,140,309 131,877,205 127,403,089 133,431,340 Antidilutive shares — — — — |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Post-Retirement Benefit Costs by Component | The following tables present a summary of post-retirement benefit costs by component. Components of Post-Retirement Benefit Costs Three Months Ended September 30, Pension Benefits Other Benefits 2015 2014 2015 2014 Service cost $ 3,990 $ 3,231 $ — $ 25 Interest cost 5,003 4,695 203 (63 ) Expected return on assets (5,323 ) (4,768 ) — — Amortization: Prior service cost 81 529 — — Actuarial (gain) loss 3,533 2,035 30 3 Actuarial valuation adjustment — — — 460 Direct recognition of expense — 131 166 114 Net periodic benefit cost $ 7,284 $ 5,853 $ 399 $ 539 Nine Months Ended September 30, Pension Benefits Other Benefits 2015 2014 2015 2014 Service cost $ 11,971 $ 9,694 $ — $ 74 Interest cost 15,009 14,333 610 234 Expected return on assets (15,969 ) (14,273 ) — — Amortization: Prior service cost 244 1,586 — — Actuarial (gain)/loss 10,601 6,127 90 3 Actuarial valuation adjustment — — — 460 Direct recognition of expense — 131 493 10 Net periodic benefit cost $ 21,856 $ 17,598 $ 1,193 $ 781 |
Schedule of Assets at Fair Value for Defined-Benefit Pension Plans | The following table presents assets at fair value for the defined-benefit pension plans at September 30, 2015 and the prior-year end. Pension Assets by Component September 30, 2015 December 31, 2014 Amount % Amount % Corporate debt $ 153,536 49 $ 166,825 52 Other fixed maturities 279 — 284 — Equity securities 121,199 39 127,568 39 Short-term investments 16,414 5 9,038 3 Guaranteed annuity contract 16,973 6 15,027 5 Other 3,571 1 4,156 1 Total $ 311,972 100 $ 322,898 100 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Fixed Maturities and Equity Securities Available for Sale by Cost or Amortized Cost and Estimated Fair Value | A summary of fixed maturities and equity securities available for sale by cost or amortized cost and estimated fair value at September 30, 2015 is as follows: Portfolio Composition as of September 30, 2015 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value % of Total Fixed Maturities* Fixed maturities available for sale: Bonds: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 373,835 $ 1,618 $ (5,696 ) $ 369,757 3 States, municipalities, and political subdivisions 1,296,976 138,075 (1,374 ) 1,433,677 10 Foreign governments 20,905 1,545 (4 ) 22,446 — Corporates, by sector: Financial 2,688,462 340,450 (44,834 ) 2,984,078 21 Utilities 2,105,221 274,626 (21,681 ) 2,358,166 17 Energy 1,538,147 89,072 (111,771 ) 1,515,448 11 Other corporate sectors 4,648,140 363,206 (163,826 ) 4,847,520 34 Total corporates 10,979,970 1,067,354 (342,112 ) 11,705,212 83 Collateralized debt obligations 63,960 16,745 (8,593 ) 72,112 1 Other asset-backed securities 19,273 978 — 20,251 — Redeemable preferred stocks, by sector: Financial 382,674 48,618 (4,431 ) 426,861 3 Utilities 28,655 1,228 — 29,883 — Total redeemable preferred stocks 411,329 49,846 (4,431 ) 456,744 3 Total fixed maturities 13,166,248 1,276,161 (362,210 ) 14,080,199 100 Equity securities 776 806 — 1,582 Total fixed maturities and equity securities $ 13,167,024 $ 1,276,967 $ (362,210 ) $ 14,081,781 * At fair value |
Schedule of Fixed Maturities by Contractual Maturity Date | A schedule of fixed maturities by contractual maturity date at September 30, 2015 is shown below on an amortized cost basis and on a fair value basis. Actual maturity dates could differ from contractual maturities due to call or prepayment provisions. Amortized Fair Value Fixed maturities available for sale: Due in one year or less $ 53,589 $ 54,217 Due from one to five years 572,013 632,991 Due from five to ten years 951,645 1,042,986 Due from ten to twenty years 3,841,490 4,296,570 Due after twenty years 7,662,273 7,958,875 Mortgage-backed and asset-backed securities 85,238 94,560 $ 13,166,248 $ 14,080,199 |
Schedule of Selected Information about Sales of Fixed Maturities | Selected information about sales of fixed maturities is as follows. For the Nine Months Ended September 30, 2015 2014 Proceeds from sales $ 26,330 $ 56,447 Gross realized gains 260 16,473 Gross realized losses (354 ) (1,701 ) |
Schedule of Assets Measured at Fair Value on Recurring Basis | The following table represents assets measured at fair value on a recurring basis. Fair Value Measurements at September 30, 2015 Using: Description Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Fixed maturities available for sale: Bonds: U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 369,757 $ — $ 369,757 States, municipalities, and political subdivisions — 1,433,677 — 1,433,677 Foreign governments — 22,446 — 22,446 Corporates, by sector: Financial — 2,920,889 63,189 2,984,078 Utilities 15,180 2,206,803 136,183 2,358,166 Energy — 1,488,583 26,865 1,515,448 Other corporate sectors — 4,534,087 313,433 4,847,520 Total corporates 15,180 11,150,362 539,670 11,705,212 Collateralized debt obligations — — 72,112 72,112 Other asset-backed securities — 20,251 — 20,251 Redeemable preferred stocks, by sector: Financial 10,068 416,793 — 426,861 Utilities — 29,883 — 29,883 Total redeemable preferred stocks 10,068 446,676 — 456,744 Total fixed maturities 25,248 13,443,169 611,782 14,080,199 Equity securities 723 — 859 1,582 Total fixed maturities and equity securities $ 25,971 $ 13,443,169 $ 612,641 $ 14,081,781 Percent of total 0.2 % 95.5 % 4.3 % 100.0 % |
Schedule of Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs | The following table represents an analysis of changes in fair value measurements using significant unobservable inputs (Level 3). Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the Nine Months Ended September 30, 2015 Collateralized Corporates (1) Equities Total Balance at January 1, 2015 $ 63,232 $ 512,714 $ 833 $ 576,779 Total gains or losses: Included in realized gains/losses — 1,182 — 1,182 Included in other comprehensive income 12,797 (3,121 ) 26 9,702 Acquisitions — 38,600 — 38,600 Amortization 4,183 14 — 4,197 Other (2) (8,100 ) (9,719 ) — (17,819 ) Transfers in and/or out of Level 3 (3) — — — — Balance at September 30, 2015 $ 72,112 $ 539,670 $ 859 $ 612,641 Percent of total fixed maturity and equity securities 0.5 % 3.8 % — % 4.3 % For the Nine Months Ended September 30, 2014 Collateralized Corporates (1) Equities Total Balance at January 1, 2014 $ 58,205 $ 300,300 $ 776 $ 359,281 Total gains or losses: Included in realized gains/losses 15,924 1 — 15,925 Included in other comprehensive income 3,929 19,967 57 23,953 Acquisitions — 186,365 — 186,365 Sales (16,049 ) (1 ) — (16,050 ) Amortization 4,072 10 — 4,082 Other (2) (3,231 ) (1,773 ) — (5,004 ) Transfers in and/or out of Level 3 (3) — — — — Balance at September 30, 2014 $ 62,850 $ 504,869 $ 833 $ 568,552 Percent of total fixed maturity and equity securities 0.4 % 3.6 % — % 4.0 % (1) Includes redeemable preferred stocks. (2) Includes capitalized interest, foreign exchange adjustments, and principal repayments. (3) Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available. |
Schedule of Information About Investments in Unrealized Loss Position | The following table discloses information about investments in an unrealized loss position. Less than Twelve Months Twelve Months or Longer Total Number of issues (CUSIP numbers) held: As of September 30, 2015 368 66 434 As of December 31, 2014 80 173 253 |
Schedule of Unrealized Investment Losses by Class of Investment | The following table discloses unrealized investment losses by class of investment at September 30, 2015 for the period of time in a loss position. Torchmark does not view these investments as other-than-temporarily impaired. Analysis of Gross Unrealized Investment Losses At September 30, 2015 Less than Twelve Months Twelve Months or Longer Total Description of Securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fixed maturities available for sale: Investment grade: Bonds: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 216,022 $ (5,042 ) $ 14,920 $ (654 ) $ 230,942 $ (5,696 ) States, municipalities and political subdivisions 48,097 (1,033 ) 1,685 (107 ) 49,782 (1,140 ) Foreign governments 4,574 (4 ) — — 4,574 (4 ) Corporates, by sector: Financial 283,220 (11,605 ) — — 283,220 (11,605 ) Utilities 403,693 (21,681 ) — — 403,693 (21,681 ) Energy 650,698 (69,271 ) 92,025 (31,189 ) 742,723 (100,460 ) Other corporate sectors 1,547,634 (126,366 ) 44,927 (8,257 ) 1,592,561 (134,623 ) Total corporates 2,885,245 (228,923 ) 136,952 (39,446 ) 3,022,197 (268,369 ) Total investment grade 3,153,938 (235,002 ) 153,557 (40,207 ) 3,307,495 (275,209 ) Below investment grade: Bonds: States, municipalities and political subdivisions — — 321 (234 ) 321 (234 ) Corporates, by sector: Financial — — 72,564 (33,229 ) 72,564 (33,229 ) Energy 42,319 (8,391 ) 8,106 (2,920 ) 50,425 (11,311 ) Other corporate sectors 61,857 (22,737 ) 55,836 (6,466 ) 117,693 (29,203 ) Total corporates 104,176 (31,128 ) 136,506 (42,615 ) 240,682 (73,743 ) Collateralized debt obligations — — 11,407 (8,593 ) 11,407 (8,593 ) Redeemable preferred stocks, by sector: Financial — — 22,730 (4,431 ) 22,730 (4,431 ) Total redeemable preferred stocks — — 22,730 (4,431 ) 22,730 (4,431 ) Total below investment grade 104,176 (31,128 ) 170,964 (55,873 ) 275,140 (87,001 ) Total fixed maturities 3,258,114 (266,130 ) 324,521 (96,080 ) 3,582,635 (362,210 ) Equity securities — — — — — — Total fixed maturities and equity securities $ 3,258,114 $ (266,130 ) $ 324,521 $ (96,080 ) $ 3,582,635 $ (362,210 ) |
Supplemental Information abou18
Supplemental Information about Changes to Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of Analysis of Change in Balance by Component of Accumulated Other Comprehensive Income | An analysis of the change in balance by component of Accumulated Other Comprehensive Income is as follows for the three and nine month periods ended September 30, 2015 and 2014 . Components of Accumulated Other Comprehensive Income For the Three Months Ended September 30, 2015 Available for Deferred Foreign Pension Total Balance at July 1, 2015 $ 649,973 $ (8,415 ) $ 8,353 $ (94,592 ) $ 555,319 Other comprehensive income (loss) before reclassifications, net of tax (48,306 ) 934 (5,867 ) 1 (53,238 ) Reclassifications, net of tax (4,621 ) — — 2,369 (2,252 ) Other comprehensive income (loss) (52,927 ) 934 (5,867 ) 2,370 (55,490 ) Balance at September 30, 2015 $ 597,046 $ (7,481 ) $ 2,486 $ (92,222 ) $ 499,829 For the Three Months Ended September 30, 2014 Available Deferred Foreign Pension Total Balance at July 1, 2014 $ 933,015 $ (11,455 ) $ 26,124 $ (59,710 ) $ 887,974 Other comprehensive income (loss) before reclassifications, net of tax (1,991 ) 450 (4,566 ) 2 (6,105 ) Reclassifications, net of tax (711 ) — — 1,669 958 Other comprehensive income (loss) (2,702 ) 450 (4,566 ) 1,671 (5,147 ) Balance at September 30, 2014 $ 930,313 $ (11,005 ) $ 21,558 $ (58,039 ) $ 882,827 Note E—Supplemental Information about Changes to Accumulated Other Comprehensive Income (continued) Components of Accumulated Other Comprehensive Income For the Nine Months Ended September 30, 2015 Available for Sale Assets Deferred Acquisition Costs Foreign Exchange Pension Adjustments Total Balance at January 1, 2015 $ 1,090,273 $ (10,758 ) $ 17,386 $ (99,449 ) $ 997,452 Other comprehensive income (loss) before reclassifications, net of tax (485,441 ) 3,277 (14,900 ) 118 (496,946 ) Reclassifications, net of tax (7,786 ) — — 7,109 (677 ) Other comprehensive income (loss) (493,227 ) 3,277 (14,900 ) 7,227 (497,623 ) Balance at September 30, 2015 $ 597,046 $ (7,481 ) $ 2,486 $ (92,222 ) $ 499,829 For the Nine Months Ended September 30, 2014 Available for Sale Assets Deferred Acquisition Costs Foreign Exchange Pension Adjustments Total Balance at January 1, 2014 $ 256,196 $ (6,728 ) $ 24,866 $ (63,353 ) $ 210,981 Other comprehensive income (loss) before reclassifications, net of tax 688,958 (4,277 ) (3,308 ) 299 681,672 Reclassifications, net of tax (14,841 ) — — 5,015 (9,826 ) Other comprehensive income (loss) 674,117 (4,277 ) (3,308 ) 5,314 671,846 Balance at September 30, 2014 $ 930,313 $ (11,005 ) $ 21,558 $ (58,039 ) $ 882,827 |
Summary of Reclassifications Out of Accumulated Other Comprehensive Income | Reclassifications out of Accumulated Other Comprehensive Income are presented below for the three and nine month periods ended September 30, 2015 and 2014 . Reclassification Adjustments Three Months Ended Nine Months Ended Affected line items in the Statement of Operations 2015 2014 2015 2014 Unrealized investment gains (losses) on available for sale assets: Realized (gains) losses $ (5,540 ) $ 1,261 $ (7,138 ) $ (15,935 ) Realized investment gains (losses) Amortization of (discount) premium (1,569 ) (2,354 ) (4,840 ) (6,898 ) Net investment income Total before tax (7,109 ) (1,093 ) (11,978 ) (22,833 ) Tax 2,488 382 4,192 7,992 Income Taxes Total after tax (4,621 ) (711 ) (7,786 ) (14,841 ) Pension adjustments: Amortization of prior service cost 81 529 244 1,586 Other operating expenses Amortization of actuarial gain (loss) 3,563 2,038 10,691 6,130 Other operating expenses Total before tax 3,644 2,567 10,935 7,716 Tax (1,275 ) (898 ) (3,826 ) (2,701 ) Income Taxes Total after tax 2,369 1,669 7,109 5,015 Total reclassifications (after tax) $ (2,252 ) $ 958 $ (677 ) $ (9,826 ) |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Analysis of Adjustments for Difference in Interim Medicare Part D Results for Segment Purposes and GAAP for Medicare Part D | An analysis of the adjustments for the difference in the interim results as presented for segment purposes and GAAP for Medicare Part D is as follows: Nine Months Ended 2015 2014 Benefit costs deferred $ 11,649 $ 45,382 Government risk-sharing premium adjustment 9,322 (28,532 ) Pre-tax addition to segment interim period income $ 20,971 $ 16,850 After tax amount $ 13,631 $ 10,952 |
Reconciliation of Health Premium Included in the Segment Analysis with Health Premium | A reconciliation of health premium included in the segment analysis with health premium as reported in the Condensed Consolidated Statements of Operations is presented in the following table. Nine Months Ended 2015 2014 % Change Premium per segment analysis: Medicare Part D premium $ 232,102 $ 258,243 (10 ) Other health premium 690,221 644,758 7 Part D risk-sharing adjustment (9,322 ) 28,532 (133 ) Health premium per Condensed Consolidated Statements of Operations $ 913,001 $ 931,533 (2 ) |
Reconciliation of Segment Operating Information to Consolidated Statement of Operations | The following tables set forth a reconciliation of Torchmark’s revenues and operations by segment to its pretax income and each significant line item in its Condensed Consolidated Statements of Operations . Reconciliation of Segment Operating Information to the Consolidated Statement of Operations For the Nine Months Ended September 30, 2015 Life Health Medicare Annuity Investment Other & Adjustments Consolidated Revenue: Premium $ 1,552,309 $ 690,221 $ 232,102 $ 119 $ (9,322 ) (1) $ 2,465,429 Net investment income $ 579,632 579,632 Other income $ 2,201 (149 ) (3) 2,052 Total revenue 1,552,309 690,221 232,102 119 579,632 2,201 (9,471 ) 3,047,113 Expenses: Policy benefits 1,029,261 448,539 192,634 29,447 11,649 (1) 1,711,530 Required interest on reserves (412,264 ) (51,450 ) (40,084 ) 503,798 — Required interest on DAC 129,339 17,058 673 885 (147,955 ) — Amortization of acquisition costs 265,641 61,858 2,649 6,542 336,690 Commissions and premium tax 115,452 60,820 16,258 32 (149 ) (3) 192,413 Insurance administrative expense (2) 142,829 142,829 Parent expense 6,662 6,662 Stock compensation expense 21,877 21,877 Interest expense 57,420 57,420 Total expenses 1,127,429 536,825 212,214 (3,178 ) 413,263 171,368 11,500 2,469,421 Subtotal 424,880 153,396 19,888 3,297 166,369 (169,167 ) (20,971 ) 577,692 Nonoperating items 20,971 (1) 20,971 Measure of segment profitability (pretax) $ 424,880 $ 153,396 $ 19,888 $ 3,297 $ 166,369 $ (169,167 ) $ — 598,663 Deduct applicable income taxes (196,005 ) Segment profits after tax 402,658 Add back income taxes applicable to segment profitability 196,005 Add (deduct) realized investment gains (losses) 7,872 Deduct Part D adjustment (1) (20,971 ) Pretax income per Consolidated Statements of Operations $ 585,564 (1) Medicare Part D items adjusted to GAAP from the segment analysis, which matches expected benefits with policy premium. (2) Administrative expense is not allocated to insurance segments. (3) Elimination of intersegment commission. Reconciliation of Segment Operating Information to the Condensed Consolidated Statement of Operations * For the Nine Months Ended September 30, 2014 Life Health Medicare Annuity Investment Other & Adjustments Consolidated Revenue: Premium $ 1,472,734 $ 644,758 $ 258,243 $ 334 $ 28,532 (1) $ 2,404,601 Net investment income $ 567,569 567,569 Other income $ 1,990 (178 ) (3) 1,812 Total revenue 1,472,734 644,758 258,243 334 567,569 1,990 28,354 2,973,982 Expenses: Policy benefits 964,305 414,607 213,184 31,599 53,561 (1,5) 1,677,256 Required interest on reserves (395,595 ) (48,018 ) (41,576 ) 485,189 — Required interest on DAC 125,758 16,823 534 1,120 (144,235 ) — Amortization of acquisition costs 251,954 53,088 2,127 5,959 313,128 Commissions and premium tax 105,724 59,787 19,664 37 (178 ) (3) 185,034 Insurance administrative (2) 134,918 2,337 (4) 137,255 Parent expense 6,284 6,284 Stock compensation expense 25,219 25,219 Interest expense 57,119 57,119 Total expenses 1,052,146 496,287 235,509 (2,861 ) 398,073 166,421 55,720 2,401,295 Subtotal 420,588 148,471 22,734 3,195 169,496 (164,431 ) (27,366 ) 572,687 Nonoperating items 27,366 (1,4,5) 27,366 Measure of segment profitability (pretax) $ 420,588 $ 148,471 $ 22,734 $ 3,195 $ 169,496 $ (164,431 ) $ — 600,053 Deduct applicable income taxes (196,288 ) Segment profits after tax 403,765 Add back income taxes applicable to segment profitability 196,288 Add (deduct) realized investment gains (losses) 15,713 Deduct Part D adjustment (1) (16,850 ) Deduct legal settlement expense (4) (2,337 ) Deduct administrative settlements (5) (8,179 ) Pretax income per Consolidated Statements of Operations $ 588,400 (1) Medicare Part D items adjusted to GAAP from the segment analysis, which matches expected benefits with policy premium. (2) Administrative expense is not allocated to insurance segments. (3) Elimination of intersegment commission. (4) Legal settlement expenses. (5) Administrative settlements. * Retrospectively adjusted to give effect to the adoption ASU 2014-01 as described in Note G- Adoption of New Accounting Standards . |
Analysis of Profitability By Segment | The following table summarizes the measures of segment profitability for comparison. It also reconciles segment profits to net income. Analysis of Profitability by Segment Nine Months Ended September 30, Increase (Decrease) 2015 2014* Amount % Life $ 424,880 $ 420,588 $ 4,292 1 Health 153,396 148,471 4,925 3 Medicare Part D 19,888 22,734 (2,846 ) (13 ) Annuity 3,297 3,195 102 3 Investment 166,369 169,496 (3,127 ) (2 ) Other and corporate: Other income 2,201 1,990 211 11 Administrative expense (142,829 ) (134,918 ) (7,911 ) 6 Corporate (28,539 ) (31,503 ) 2,964 (9 ) Pretax total 598,663 600,053 (1,390 ) — Applicable taxes (196,005 ) (196,288 ) 283 — Total 402,658 403,765 (1,107 ) — Reconciling items, net of tax: Realized gains (losses) - Investments 5,117 10,213 (5,096 ) (50 ) Part D adjustment (13,631 ) (10,952 ) (2,679 ) 24 Administrative settlements — (5,316 ) 5,316 (100 ) Legal settlement expense — (1,519 ) 1,519 (100 ) Net income $ 394,144 $ 396,191 $ (2,047 ) (1 ) * Retrospectively adjusted to give effect to the adoption of ASU 2014-01 as described in Note G-Adoption of New Accounting Standards. |
Adoption of New Accounting St20
Adoption of New Accounting Standards (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Summary of the Impact of the Retrospectively Adjusted Balances | The following table reflects a summary of the impact of the retrospectively adjusted balances on the Company's Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2014 . Three Months Ended September 30, 2014 Income Statement As previously reported Adjustments As adjusted Net investment income $ 182,101 $ 7,487 $ 189,588 Total revenue 967,001 7,487 974,488 Income before income taxes 189,564 7,487 197,051 Income taxes (57,152 ) (7,487 ) (64,639 ) Net income 132,412 — 132,412 Nine Months Ended September 30, 2014 Income Statement As previously reported Adjustments As adjusted Net investment income $ 545,978 $ 21,591 $ 567,569 Total revenue 2,968,104 21,591 2,989,695 Income before income taxes 566,809 21,591 588,400 Income taxes (170,618 ) (21,591 ) (192,209 ) Net income 396,191 — 396,191 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Weighted - Average Shares Outstanding (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average shares outstanding | 124,457,996 | 129,969,902 | 125,788,925 | 131,529,818 |
Weighted average dilutive options outstanding | 1,682,313 | 1,907,303 | 1,614,164 | 1,901,522 |
Diluted weighted average shares outstanding | 126,140,309 | 131,877,205 | 127,403,089 | 133,431,340 |
Antidilutive shares | 0 | 0 | 0 | 0 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Summary of Post-Retirement Benefit Costs by Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 3,990 | $ 3,231 | $ 11,971 | $ 9,694 |
Interest cost | 5,003 | 4,695 | 15,009 | 14,333 |
Expected return on assets | (5,323) | (4,768) | (15,969) | (14,273) |
Amortization: | ||||
Prior service cost | 81 | 529 | 244 | 1,586 |
Actuarial (gain) loss | 3,533 | 2,035 | 10,601 | 6,127 |
Actuarial valuation adjustment | 0 | 0 | 0 | 0 |
Direct recognition of expense | 0 | 131 | 0 | 131 |
Net periodic benefit cost | 7,284 | 5,853 | 21,856 | 17,598 |
Other Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 25 | 0 | 74 |
Interest cost | 203 | (63) | 610 | 234 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization: | ||||
Prior service cost | 0 | 0 | 0 | 0 |
Actuarial (gain) loss | 30 | 3 | 90 | 3 |
Actuarial valuation adjustment | 0 | 460 | 0 | 460 |
Direct recognition of expense | 166 | 114 | 493 | 10 |
Net periodic benefit cost | $ 399 | $ 539 | $ 1,193 | $ 781 |
Postretirement Benefit Plans 23
Postretirement Benefit Plans - Schedule of Assets at Fair Value for Defined-Benefit Pension Plans (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 311,972 | $ 322,898 |
Percent of total pension assets | 100.00% | 100.00% |
Other fixed maturities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 279 | $ 284 |
Percent of total pension assets | 0.00% | 0.00% |
Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 121,199 | $ 127,568 |
Percent of total pension assets | 39.00% | 39.00% |
Guaranteed annuity contract [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 16,973 | $ 15,027 |
Percent of total pension assets | 6.00% | 5.00% |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 3,571 | $ 4,156 |
Percent of total pension assets | 1.00% | 1.00% |
Corporate debt [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 153,536 | $ 166,825 |
Percent of total pension assets | 49.00% | 52.00% |
Short-term investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 16,414 | $ 9,038 |
Percent of total pension assets | 5.00% | 3.00% |
Postretirement Benefit Plans 24
Postretirement Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
Liability related to funded defined-benefit pension plans | $ 386 | $ 403 |
Cash contributions made to benefit plans | 13.6 | |
Insurance cash value and Rabbi Trust investments supporting supplemental pension plan liability | 78 | 74 |
Non-qualified supplemental retirement pension plan liability | $ 73 | $ 71 |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturities and Equity Securities Available for Sale by Component (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed Maturities, Available for Sale, Amortized Cost | $ 13,166,248 | $ 12,823,612 |
Debt Securities Fair Value | 14,080,199 | 14,493,060 |
Equity Securities Cost or Amortized Cost | 776 | 776 |
Equity Securities Fair Value | 1,582 | $ 1,477 |
Total Available for Sale Securities Cost | 13,167,024 | |
Gross Unrealized Gains | 1,276,967 | |
Gross Unrealized Losses | (362,210) | |
Total Available for Sale Securities Fair Value | 14,081,781 | |
Equity securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity Securities Cost or Amortized Cost | 776 | |
Gross Unrealized Gains | 806 | |
Gross Unrealized Losses | 0 | |
Equity Securities Fair Value | 1,582 | |
Fixed maturities available for sale [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed Maturities, Available for Sale, Amortized Cost | 13,166,248 | |
Gross Unrealized Gains | 1,276,161 | |
Gross Unrealized Losses | (362,210) | |
Debt Securities Fair Value | $ 14,080,199 | |
Percentage of Total Fixed Maturities At Fair Value | 100.00% | |
Fixed maturities available for sale [Member] | U.S. Government direct, guaranteed, and government-sponsored enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed Maturities, Available for Sale, Amortized Cost | $ 373,835 | |
Gross Unrealized Gains | 1,618 | |
Gross Unrealized Losses | (5,696) | |
Debt Securities Fair Value | $ 369,757 | |
Percentage of Total Fixed Maturities At Fair Value | 3.00% | |
Fixed maturities available for sale [Member] | States, municipalities, and political subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed Maturities, Available for Sale, Amortized Cost | $ 1,296,976 | |
Gross Unrealized Gains | 138,075 | |
Gross Unrealized Losses | (1,374) | |
Debt Securities Fair Value | $ 1,433,677 | |
Percentage of Total Fixed Maturities At Fair Value | 10.00% | |
Fixed maturities available for sale [Member] | Foreign governments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed Maturities, Available for Sale, Amortized Cost | $ 20,905 | |
Gross Unrealized Gains | 1,545 | |
Gross Unrealized Losses | (4) | |
Debt Securities Fair Value | $ 22,446 | |
Percentage of Total Fixed Maturities At Fair Value | 0.00% | |
Fixed maturities available for sale [Member] | Corporates [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed Maturities, Available for Sale, Amortized Cost | $ 10,979,970 | |
Gross Unrealized Gains | 1,067,354 | |
Gross Unrealized Losses | (342,112) | |
Debt Securities Fair Value | $ 11,705,212 | |
Percentage of Total Fixed Maturities At Fair Value | 83.00% | |
Fixed maturities available for sale [Member] | Collateralized debt obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed Maturities, Available for Sale, Amortized Cost | $ 63,960 | |
Gross Unrealized Gains | 16,745 | |
Gross Unrealized Losses | (8,593) | |
Debt Securities Fair Value | $ 72,112 | |
Percentage of Total Fixed Maturities At Fair Value | 1.00% | |
Fixed maturities available for sale [Member] | Other asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed Maturities, Available for Sale, Amortized Cost | $ 19,273 | |
Gross Unrealized Gains | 978 | |
Gross Unrealized Losses | 0 | |
Debt Securities Fair Value | $ 20,251 | |
Percentage of Total Fixed Maturities At Fair Value | 0.00% | |
Fixed maturities available for sale [Member] | Redeemable preferred stocks [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed Maturities, Available for Sale, Amortized Cost | $ 411,329 | |
Gross Unrealized Gains | 49,846 | |
Gross Unrealized Losses | (4,431) | |
Debt Securities Fair Value | $ 456,744 | |
Percentage of Total Fixed Maturities At Fair Value | 3.00% | |
Financial [Member] | Fixed maturities available for sale [Member] | Corporates [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed Maturities, Available for Sale, Amortized Cost | $ 2,688,462 | |
Gross Unrealized Gains | 340,450 | |
Gross Unrealized Losses | (44,834) | |
Debt Securities Fair Value | $ 2,984,078 | |
Percentage of Total Fixed Maturities At Fair Value | 21.00% | |
Financial [Member] | Fixed maturities available for sale [Member] | Redeemable preferred stocks [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed Maturities, Available for Sale, Amortized Cost | $ 382,674 | |
Gross Unrealized Gains | 48,618 | |
Gross Unrealized Losses | (4,431) | |
Debt Securities Fair Value | $ 426,861 | |
Percentage of Total Fixed Maturities At Fair Value | 3.00% | |
Utilities [Member] | Fixed maturities available for sale [Member] | Corporates [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed Maturities, Available for Sale, Amortized Cost | $ 2,105,221 | |
Gross Unrealized Gains | 274,626 | |
Gross Unrealized Losses | (21,681) | |
Debt Securities Fair Value | $ 2,358,166 | |
Percentage of Total Fixed Maturities At Fair Value | 17.00% | |
Utilities [Member] | Fixed maturities available for sale [Member] | Redeemable preferred stocks [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed Maturities, Available for Sale, Amortized Cost | $ 28,655 | |
Gross Unrealized Gains | 1,228 | |
Gross Unrealized Losses | 0 | |
Debt Securities Fair Value | $ 29,883 | |
Percentage of Total Fixed Maturities At Fair Value | 0.00% | |
Energy [Member] | Fixed maturities available for sale [Member] | Corporates [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed Maturities, Available for Sale, Amortized Cost | $ 1,538,147 | |
Gross Unrealized Gains | 89,072 | |
Gross Unrealized Losses | (111,771) | |
Debt Securities Fair Value | $ 1,515,448 | |
Percentage of Total Fixed Maturities At Fair Value | 11.00% | |
Other corporate sectors [Member] | Fixed maturities available for sale [Member] | Corporates [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed Maturities, Available for Sale, Amortized Cost | $ 4,648,140 | |
Gross Unrealized Gains | 363,206 | |
Gross Unrealized Losses | (163,826) | |
Debt Securities Fair Value | $ 4,847,520 | |
Percentage of Total Fixed Maturities At Fair Value | 34.00% |
Investments - Schedule of Fixed
Investments - Schedule of Fixed Maturities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fixed Maturities Available for Sale, Amortized Cost | ||
Due in one year or less | $ 53,589 | |
Due from one to five years | 572,013 | |
Due from five to ten years | 951,645 | |
Due from ten to twenty years | 3,841,490 | |
Due after twenty years | 7,662,273 | |
Mortgage-backed and asset-backed securities | 85,238 | |
Fixed Maturities, Available for Sale, Amortized Cost | 13,166,248 | $ 12,823,612 |
Fixed Maturities Available for Sale, Fair Value | ||
Due in one year or less | 54,217 | |
Due from one to five years | 632,991 | |
Due from five to ten years | 1,042,986 | |
Due from ten to twenty years | 4,296,570 | |
Due after twenty years | 7,958,875 | |
Mortgage-backed and asset-backed securities | 94,560 | |
Fixed Maturities, Available for Sale, Fair Value | $ 14,080,199 | $ 14,493,060 |
Investments - Schedule of Selec
Investments - Schedule of Selected Information about Sales of Fixed Maturities (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Proceeds from sales | $ 26,330 | $ 56,447 |
Fixed Maturities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Proceeds from sales | 26,330 | 56,447 |
Gross realized gains | 260 | 16,473 |
Gross realized losses | $ (354) | $ (1,701) |
Investments - Assets Measured a
Investments - Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | $ 14,080,199 | $ 14,493,060 |
Equity securities | 1,582 | $ 1,477 |
Total fixed maturities and equity securities | $ 14,081,781 | |
Percent of total | 100.00% | |
Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | $ 14,080,199 | |
Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 1,582 | |
U.S. Government direct, guaranteed, and government-sponsored enterprises [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 369,757 | |
States, municipalities, and political subdivisions [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 1,433,677 | |
Foreign governments [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 22,446 | |
Corporates [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 11,705,212 | |
Collateralized debt obligations [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 72,112 | |
Other asset-backed securities [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 20,251 | |
Redeemable preferred stocks [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 456,744 | |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities and equity securities | $ 25,971 | |
Percent of total | 0.20% | |
Level 1 [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | $ 25,248 | |
Level 1 [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 723 | |
Level 1 [Member] | U.S. Government direct, guaranteed, and government-sponsored enterprises [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 0 | |
Level 1 [Member] | States, municipalities, and political subdivisions [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 0 | |
Level 1 [Member] | Foreign governments [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 0 | |
Level 1 [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 15,180 | |
Level 1 [Member] | Collateralized debt obligations [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 0 | |
Level 1 [Member] | Other asset-backed securities [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 0 | |
Level 1 [Member] | Redeemable preferred stocks [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 10,068 | |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities and equity securities | $ 13,443,169 | |
Percent of total | 95.50% | |
Level 2 [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | $ 13,443,169 | |
Level 2 [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | |
Level 2 [Member] | U.S. Government direct, guaranteed, and government-sponsored enterprises [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 369,757 | |
Level 2 [Member] | States, municipalities, and political subdivisions [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 1,433,677 | |
Level 2 [Member] | Foreign governments [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 22,446 | |
Level 2 [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 11,150,362 | |
Level 2 [Member] | Collateralized debt obligations [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 0 | |
Level 2 [Member] | Other asset-backed securities [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 20,251 | |
Level 2 [Member] | Redeemable preferred stocks [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 446,676 | |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities and equity securities | $ 612,641 | |
Percent of total | 4.30% | |
Level 3 [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | $ 611,782 | |
Level 3 [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 859 | |
Level 3 [Member] | U.S. Government direct, guaranteed, and government-sponsored enterprises [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 0 | |
Level 3 [Member] | States, municipalities, and political subdivisions [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 0 | |
Level 3 [Member] | Foreign governments [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 0 | |
Level 3 [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 539,670 | |
Level 3 [Member] | Collateralized debt obligations [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 72,112 | |
Level 3 [Member] | Other asset-backed securities [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 0 | |
Level 3 [Member] | Redeemable preferred stocks [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 0 | |
Financial [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 2,984,078 | |
Financial [Member] | Redeemable preferred stocks [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 426,861 | |
Financial [Member] | Level 1 [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 0 | |
Financial [Member] | Level 1 [Member] | Redeemable preferred stocks [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 10,068 | |
Financial [Member] | Level 2 [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 2,920,889 | |
Financial [Member] | Level 2 [Member] | Redeemable preferred stocks [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 416,793 | |
Financial [Member] | Level 3 [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 63,189 | |
Financial [Member] | Level 3 [Member] | Redeemable preferred stocks [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 0 | |
Utilities [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 2,358,166 | |
Utilities [Member] | Redeemable preferred stocks [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 29,883 | |
Utilities [Member] | Level 1 [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 15,180 | |
Utilities [Member] | Level 1 [Member] | Redeemable preferred stocks [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 0 | |
Utilities [Member] | Level 2 [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 2,206,803 | |
Utilities [Member] | Level 2 [Member] | Redeemable preferred stocks [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 29,883 | |
Utilities [Member] | Level 3 [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 136,183 | |
Utilities [Member] | Level 3 [Member] | Redeemable preferred stocks [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 0 | |
Energy [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 1,515,448 | |
Energy [Member] | Level 1 [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 0 | |
Energy [Member] | Level 2 [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 1,488,583 | |
Energy [Member] | Level 3 [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 26,865 | |
Other corporate sectors [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 4,847,520 | |
Other corporate sectors [Member] | Level 1 [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 0 | |
Other corporate sectors [Member] | Level 2 [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | 4,534,087 | |
Other corporate sectors [Member] | Level 3 [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value fixed maturities measured on recurring basis | $ 313,433 |
Investments - Schedule of Chang
Investments - Schedule of Changes in Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 576,779 | $ 359,281 |
Total gains or losses: | ||
Included in realized gains/losses | 1,182 | 15,925 |
Included in other comprehensive income | 9,702 | 23,953 |
Acquisitions | 38,600 | 186,365 |
Sales | (16,050) | |
Amortization | 4,197 | 4,082 |
Other | (17,819) | (5,004) |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | $ 612,641 | $ 568,552 |
Percent of total fixed maturity and equity securities | 4.30% | 4.00% |
Collateralized debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 63,232 | $ 58,205 |
Total gains or losses: | ||
Included in realized gains/losses | 0 | 15,924 |
Included in other comprehensive income | 12,797 | 3,929 |
Acquisitions | 0 | 0 |
Sales | (16,049) | |
Amortization | 4,183 | 4,072 |
Other | (8,100) | (3,231) |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | $ 72,112 | $ 62,850 |
Percent of total fixed maturity and equity securities | 0.50% | 0.40% |
Corporates [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 512,714 | $ 300,300 |
Total gains or losses: | ||
Included in realized gains/losses | 1,182 | 1 |
Included in other comprehensive income | (3,121) | 19,967 |
Acquisitions | 38,600 | 186,365 |
Sales | (1) | |
Amortization | 14 | 10 |
Other | (9,719) | (1,773) |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | $ 539,670 | $ 504,869 |
Percent of total fixed maturity and equity securities | 3.80% | 3.60% |
Equities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 833 | $ 776 |
Total gains or losses: | ||
Included in realized gains/losses | 0 | 0 |
Included in other comprehensive income | 26 | 57 |
Acquisitions | 0 | 0 |
Sales | 0 | |
Amortization | 0 | 0 |
Other | 0 | 0 |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | $ 859 | $ 833 |
Percent of total fixed maturity and equity securities | 0.00% | 0.00% |
Investments - Additional Inform
Investments - Additional Information (Detail) - Issue | Sep. 30, 2015 | Dec. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Total issues of fixed-maturities and equities | 1,570 | 1,604 |
Investments - Schedule of Infor
Investments - Schedule of Information about Investments in Unrealized Loss Position (Detail) - Issue | Sep. 30, 2015 | Dec. 31, 2014 |
Number of issues (Cusip numbers) held: | ||
Less than Twelve Months | 368 | 80 |
Twelve Months or Longer | 66 | 173 |
Number of issues (Cusip numbers) held, Total | 434 | 253 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Investment Losses by Class of Investment (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | $ 3,258,114 |
Unrealized Loss, Less Than Twelve Months | (266,130) |
Fair Value, Twelve Months or Longer | 324,521 |
Unrealized Loss, Twelve Months or Longer | (96,080) |
Fair Value, Total | 3,582,635 |
Unrealized Loss Total | (362,210) |
Fixed maturities available for sale [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 3,258,114 |
Unrealized Loss, Less Than Twelve Months | (266,130) |
Fair Value, Twelve Months or Longer | 324,521 |
Unrealized Loss, Twelve Months or Longer | (96,080) |
Fair Value, Total | 3,582,635 |
Unrealized Loss Total | (362,210) |
Equity securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 0 |
Unrealized Loss, Less Than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 0 |
Unrealized Loss, Twelve Months or Longer | 0 |
Fair Value, Total | 0 |
Unrealized Loss Total | 0 |
Investment grade [Member] | Fixed maturities available for sale [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 3,153,938 |
Unrealized Loss, Less Than Twelve Months | (235,002) |
Fair Value, Twelve Months or Longer | 153,557 |
Unrealized Loss, Twelve Months or Longer | (40,207) |
Fair Value, Total | 3,307,495 |
Unrealized Loss Total | (275,209) |
Investment grade [Member] | U.S. Government direct, guaranteed, and government-sponsored enterprises [Member] | Fixed maturities available for sale [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 216,022 |
Unrealized Loss, Less Than Twelve Months | (5,042) |
Fair Value, Twelve Months or Longer | 14,920 |
Unrealized Loss, Twelve Months or Longer | (654) |
Fair Value, Total | 230,942 |
Unrealized Loss Total | (5,696) |
Investment grade [Member] | States, municipalities, and political subdivisions [Member] | Fixed maturities available for sale [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 48,097 |
Unrealized Loss, Less Than Twelve Months | (1,033) |
Fair Value, Twelve Months or Longer | 1,685 |
Unrealized Loss, Twelve Months or Longer | (107) |
Fair Value, Total | 49,782 |
Unrealized Loss Total | (1,140) |
Investment grade [Member] | Foreign governments [Member] | Fixed maturities available for sale [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 4,574 |
Unrealized Loss, Less Than Twelve Months | (4) |
Fair Value, Twelve Months or Longer | 0 |
Unrealized Loss, Twelve Months or Longer | 0 |
Fair Value, Total | 4,574 |
Unrealized Loss Total | (4) |
Investment grade [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 2,885,245 |
Unrealized Loss, Less Than Twelve Months | (228,923) |
Fair Value, Twelve Months or Longer | 136,952 |
Unrealized Loss, Twelve Months or Longer | (39,446) |
Fair Value, Total | 3,022,197 |
Unrealized Loss Total | (268,369) |
Investment grade [Member] | Financial [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 283,220 |
Unrealized Loss, Less Than Twelve Months | (11,605) |
Fair Value, Twelve Months or Longer | 0 |
Unrealized Loss, Twelve Months or Longer | 0 |
Fair Value, Total | 283,220 |
Unrealized Loss Total | (11,605) |
Investment grade [Member] | Utilities [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 403,693 |
Unrealized Loss, Less Than Twelve Months | (21,681) |
Fair Value, Twelve Months or Longer | 0 |
Unrealized Loss, Twelve Months or Longer | 0 |
Fair Value, Total | 403,693 |
Unrealized Loss Total | (21,681) |
Investment grade [Member] | Energy [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 650,698 |
Unrealized Loss, Less Than Twelve Months | (69,271) |
Fair Value, Twelve Months or Longer | 92,025 |
Unrealized Loss, Twelve Months or Longer | (31,189) |
Fair Value, Total | 742,723 |
Unrealized Loss Total | (100,460) |
Investment grade [Member] | Other corporate sectors [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 1,547,634 |
Unrealized Loss, Less Than Twelve Months | (126,366) |
Fair Value, Twelve Months or Longer | 44,927 |
Unrealized Loss, Twelve Months or Longer | (8,257) |
Fair Value, Total | 1,592,561 |
Unrealized Loss Total | (134,623) |
Below investment grade [Member] | Fixed maturities available for sale [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 104,176 |
Unrealized Loss, Less Than Twelve Months | (31,128) |
Fair Value, Twelve Months or Longer | 170,964 |
Unrealized Loss, Twelve Months or Longer | (55,873) |
Fair Value, Total | 275,140 |
Unrealized Loss Total | (87,001) |
Below investment grade [Member] | States, municipalities, and political subdivisions [Member] | Fixed maturities available for sale [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 0 |
Unrealized Loss, Less Than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 321 |
Unrealized Loss, Twelve Months or Longer | (234) |
Fair Value, Total | 321 |
Unrealized Loss Total | (234) |
Below investment grade [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 104,176 |
Unrealized Loss, Less Than Twelve Months | (31,128) |
Fair Value, Twelve Months or Longer | 136,506 |
Unrealized Loss, Twelve Months or Longer | (42,615) |
Fair Value, Total | 240,682 |
Unrealized Loss Total | (73,743) |
Below investment grade [Member] | Collateralized debt obligations [Member] | Fixed maturities available for sale [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 0 |
Unrealized Loss, Less Than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 11,407 |
Unrealized Loss, Twelve Months or Longer | (8,593) |
Fair Value, Total | 11,407 |
Unrealized Loss Total | (8,593) |
Below investment grade [Member] | Redeemable preferred stocks [Member] | Fixed maturities available for sale [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 0 |
Unrealized Loss, Less Than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 22,730 |
Unrealized Loss, Twelve Months or Longer | (4,431) |
Fair Value, Total | 22,730 |
Unrealized Loss Total | (4,431) |
Below investment grade [Member] | Financial [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 0 |
Unrealized Loss, Less Than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 72,564 |
Unrealized Loss, Twelve Months or Longer | (33,229) |
Fair Value, Total | 72,564 |
Unrealized Loss Total | (33,229) |
Below investment grade [Member] | Financial [Member] | Redeemable preferred stocks [Member] | Fixed maturities available for sale [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 0 |
Unrealized Loss, Less Than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 22,730 |
Unrealized Loss, Twelve Months or Longer | (4,431) |
Fair Value, Total | 22,730 |
Unrealized Loss Total | (4,431) |
Below investment grade [Member] | Energy [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 42,319 |
Unrealized Loss, Less Than Twelve Months | (8,391) |
Fair Value, Twelve Months or Longer | 8,106 |
Unrealized Loss, Twelve Months or Longer | (2,920) |
Fair Value, Total | 50,425 |
Unrealized Loss Total | (11,311) |
Below investment grade [Member] | Other corporate sectors [Member] | Corporates [Member] | Fixed maturities available for sale [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 61,857 |
Unrealized Loss, Less Than Twelve Months | (22,737) |
Fair Value, Twelve Months or Longer | 55,836 |
Unrealized Loss, Twelve Months or Longer | (6,466) |
Fair Value, Total | 117,693 |
Unrealized Loss Total | $ (29,203) |
Supplemental Information abou33
Supplemental Information about Changes to Accumulated Other Comprehensive Income - Schedule of Analysis of Change in Balance by Component of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | $ 555,319 | $ 887,974 | $ 997,452 | $ 210,981 |
Other comprehensive income (loss) before reclassifications, net of tax | (53,238) | (6,105) | (496,946) | 681,672 |
Reclassifications, net of tax | (2,252) | 958 | (677) | (9,826) |
Other comprehensive income (loss) | (55,490) | (5,147) | (497,623) | 671,846 |
Accumulated other comprehensive income (loss), ending balance | 499,829 | 882,827 | 499,829 | 882,827 |
Available for Sale Assets [Member] | ||||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | 649,973 | 933,015 | 1,090,273 | 256,196 |
Other comprehensive income (loss) before reclassifications, net of tax | (48,306) | (1,991) | (485,441) | 688,958 |
Reclassifications, net of tax | (4,621) | (711) | (7,786) | (14,841) |
Other comprehensive income (loss) | (52,927) | (2,702) | (493,227) | 674,117 |
Accumulated other comprehensive income (loss), ending balance | 597,046 | 930,313 | 597,046 | 930,313 |
Deferred Acquisition Costs [Member] | ||||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | (8,415) | (11,455) | (10,758) | (6,728) |
Other comprehensive income (loss) before reclassifications, net of tax | 934 | 450 | 3,277 | (4,277) |
Reclassifications, net of tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 934 | 450 | 3,277 | (4,277) |
Accumulated other comprehensive income (loss), ending balance | (7,481) | (11,005) | (7,481) | (11,005) |
Foreign Exchange [Member] | ||||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | 8,353 | 26,124 | 17,386 | 24,866 |
Other comprehensive income (loss) before reclassifications, net of tax | (5,867) | (4,566) | (14,900) | (3,308) |
Reclassifications, net of tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | (5,867) | (4,566) | (14,900) | (3,308) |
Accumulated other comprehensive income (loss), ending balance | 2,486 | 21,558 | 2,486 | 21,558 |
Pension Adjustments [Member] | ||||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | (94,592) | (59,710) | (99,449) | (63,353) |
Other comprehensive income (loss) before reclassifications, net of tax | 1 | 2 | 118 | 299 |
Reclassifications, net of tax | 2,369 | 1,669 | 7,109 | 5,015 |
Other comprehensive income (loss) | 2,370 | 1,671 | 7,227 | 5,314 |
Accumulated other comprehensive income (loss), ending balance | $ (92,222) | $ (58,039) | $ (92,222) | $ (58,039) |
Supplemental Information abou34
Supplemental Information about Changes to Accumulated Other Comprehensive Income - Summary of Reclassification out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Unrealized investment gains (losses) on available for sale assets: | ||||
Realized (gains) losses | $ (5,140) | $ 1,483 | $ (7,872) | $ (15,713) |
Amortization of (discount) premium | (193,213) | (189,588) | (579,632) | (567,569) |
Tax | 71,358 | 64,639 | 191,420 | 192,209 |
Net income | (145,386) | (132,412) | (394,144) | (396,191) |
Pension adjustments: | ||||
Total reclassifications (after tax) | (2,252) | 958 | (677) | (9,826) |
Available for Sale Assets [Member] | ||||
Pension adjustments: | ||||
Total reclassifications (after tax) | (4,621) | (711) | (7,786) | (14,841) |
Amortization of prior service cost | ||||
Pension adjustments: | ||||
Pension adjustments reclassified out of accumulated other comprehensive income | 81 | 529 | 244 | 1,586 |
Amortization of actuarial gain (loss) | ||||
Pension adjustments: | ||||
Pension adjustments reclassified out of accumulated other comprehensive income | 3,563 | 2,038 | 10,691 | 6,130 |
Pension adjustments [Member] | ||||
Pension adjustments: | ||||
Pension adjustments reclassified out of accumulated other comprehensive income | 3,644 | 2,567 | 10,935 | 7,716 |
Tax | (1,275) | (898) | (3,826) | (2,701) |
Total reclassifications (after tax) | 2,369 | 1,669 | 7,109 | 5,015 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized investment gains (losses) on available for sale assets Member] | ||||
Unrealized investment gains (losses) on available for sale assets: | ||||
Realized (gains) losses | (5,540) | 1,261 | (7,138) | (15,935) |
Amortization of (discount) premium | (1,569) | (2,354) | (4,840) | (6,898) |
Total before tax | (7,109) | (1,093) | (11,978) | (22,833) |
Tax | 2,488 | 382 | 4,192 | 7,992 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Available for Sale Assets [Member] | ||||
Unrealized investment gains (losses) on available for sale assets: | ||||
Net income | $ (4,621) | $ (711) | $ (7,786) | $ (14,841) |
Business Segments - Adjustments
Business Segments - Adjustments for Difference in Interim Medicare Part D Results for Segment Purposes and GAAP for Medicare Part D (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Disclosure [Line Items] | ||||
Benefit costs deferred | $ 527,340 | $ 535,532 | $ 1,711,530 | $ 1,677,256 |
Government risk-sharing premium adjustment | $ (799,714) | $ (785,715) | (2,465,429) | (2,404,601) |
Pre-tax addition to segment interim period income | 20,971 | 16,850 | ||
After tax amount | 13,631 | 10,952 | ||
Medicare Part D [Member] | ||||
Segment Reporting Disclosure [Line Items] | ||||
After tax amount | 13,631 | 10,952 | ||
Adjustments [Member] | ||||
Segment Reporting Disclosure [Line Items] | ||||
Benefit costs deferred | 11,649 | 53,561 | ||
Government risk-sharing premium adjustment | 9,322 | (28,532) | ||
Adjustments [Member] | Medicare Part D [Member] | ||||
Segment Reporting Disclosure [Line Items] | ||||
Benefit costs deferred | 11,649 | 45,382 | ||
Government risk-sharing premium adjustment | 9,322 | (28,532) | ||
Pre-tax addition to segment interim period income | $ 20,971 | $ 16,850 |
Business Segments - Reconciliat
Business Segments - Reconciliation of Health Premium Included in the Segment Analysis (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Premium per segment analysis: | ||||
Health premium | $ 280,744 | $ 293,879 | $ 913,001 | $ 931,533 |
Health premium, % Change | (2.00%) | |||
Medicare Part D premium [Member] | ||||
Premium per segment analysis: | ||||
Health premium | $ 232,102 | 258,243 | ||
Health premium, % Change | (10.00%) | |||
Other health premium [Member] | ||||
Premium per segment analysis: | ||||
Health premium | $ 690,221 | 644,758 | ||
Health premium, % Change | 7.00% | |||
Part D risk sharing adjustment [Member] | ||||
Premium per segment analysis: | ||||
Health premium | $ (9,322) | $ 28,532 | ||
Health premium, % Change | (133.00%) |
Business Segments - Additional
Business Segments - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Disclosure [Line Items] | ||
Litigation settlement amount not related to insurance operations | $ 2,337 | |
Administrative settlement expense | 8,179 | |
Administrative settlement, after tax | $ 0 | 5,316 |
Settled Litigation Regarding Investments [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Litigation settlement expense, after tax | 853 | |
Litigation settlement amount related to investments | 1,300 | |
Settled Litigation Regarding Non-Insurance Matter [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Litigation settlement amount not related to insurance operations | 3,700 | |
Prior Year Litigation Matter [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Litigation settlement expense, after tax | $ 2,400 |
Business Segments - Reconcili38
Business Segments - Reconciliation of Segment Operating Information to Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue: | ||||
Premium | $ 799,714 | $ 785,715 | $ 2,465,429 | $ 2,404,601 |
Net investment income | 193,213 | 189,588 | 579,632 | 567,569 |
Other income | 692 | 668 | 2,052 | 1,812 |
Total revenue | 3,047,113 | 2,973,982 | ||
Expenses: | ||||
Policy benefits | 527,340 | 535,532 | 1,711,530 | 1,677,256 |
Required interest on reserves | 0 | 0 | ||
Required interest on DAC | 0 | 0 | ||
Amortization of acquisition costs | 112,523 | 103,834 | 336,690 | 313,128 |
Commissions, premium taxes, and non-deferred acquisition costs | 65,127 | 63,636 | 192,413 | 185,034 |
Insurance administrative expense | 142,829 | 137,255 | ||
Parent expense | 6,662 | 6,284 | ||
Stock compensation expense | 21,877 | 25,219 | ||
Interest expense | 19,246 | 19,033 | 57,420 | 57,119 |
Total benefits and expenses | 782,015 | 777,437 | 2,469,421 | 2,401,295 |
Subtotal | 577,692 | 572,687 | ||
Nonoperating items | 20,971 | 27,366 | ||
Measure of segment profitability (pretax) | 598,663 | 600,053 | ||
Deduct applicable income taxes | (196,005) | (196,288) | ||
Net operating income | 402,658 | 403,765 | ||
Add (deduct) realized investment gains (losses) | 7,872 | 15,713 | ||
Deduct Part D adjustment | (20,971) | (16,850) | ||
Deduct legal settlement expenses | (2,337) | |||
Deduct administrative settlements | (8,179) | |||
Income before income taxes | $ 216,744 | $ 197,051 | 585,564 | 588,400 |
Operating Segments [Member] | Life [Member] | ||||
Revenue: | ||||
Premium | 1,552,309 | 1,472,734 | ||
Total revenue | 1,552,309 | 1,472,734 | ||
Expenses: | ||||
Policy benefits | 1,029,261 | 964,305 | ||
Required interest on reserves | (412,264) | (395,595) | ||
Required interest on DAC | 129,339 | 125,758 | ||
Amortization of acquisition costs | 265,641 | 251,954 | ||
Commissions, premium taxes, and non-deferred acquisition costs | 115,452 | 105,724 | ||
Total benefits and expenses | 1,127,429 | 1,052,146 | ||
Subtotal | 424,880 | 420,588 | ||
Measure of segment profitability (pretax) | 424,880 | 420,588 | ||
Operating Segments [Member] | Health [Member] | ||||
Revenue: | ||||
Premium | 690,221 | 644,758 | ||
Total revenue | 690,221 | 644,758 | ||
Expenses: | ||||
Policy benefits | 448,539 | 414,607 | ||
Required interest on reserves | (51,450) | (48,018) | ||
Required interest on DAC | 17,058 | 16,823 | ||
Amortization of acquisition costs | 61,858 | 53,088 | ||
Commissions, premium taxes, and non-deferred acquisition costs | 60,820 | 59,787 | ||
Total benefits and expenses | 536,825 | 496,287 | ||
Subtotal | 153,396 | 148,471 | ||
Measure of segment profitability (pretax) | 153,396 | 148,471 | ||
Operating Segments [Member] | Medicare Part D [Member] | ||||
Revenue: | ||||
Premium | 232,102 | 258,243 | ||
Total revenue | 232,102 | 258,243 | ||
Expenses: | ||||
Policy benefits | $ 192,634 | $ 213,184 | ||
Required interest on reserves | ||||
Required interest on DAC | $ 673 | $ 534 | ||
Amortization of acquisition costs | 2,649 | 2,127 | ||
Commissions, premium taxes, and non-deferred acquisition costs | 16,258 | 19,664 | ||
Total benefits and expenses | 212,214 | 235,509 | ||
Subtotal | 19,888 | 22,734 | ||
Measure of segment profitability (pretax) | 19,888 | 22,734 | ||
Operating Segments [Member] | Annuity [Member] | ||||
Revenue: | ||||
Premium | 119 | 334 | ||
Total revenue | 119 | 334 | ||
Expenses: | ||||
Policy benefits | 29,447 | 31,599 | ||
Required interest on reserves | (40,084) | (41,576) | ||
Required interest on DAC | 885 | 1,120 | ||
Amortization of acquisition costs | 6,542 | 5,959 | ||
Commissions, premium taxes, and non-deferred acquisition costs | 32 | 37 | ||
Total benefits and expenses | (3,178) | (2,861) | ||
Subtotal | 3,297 | 3,195 | ||
Measure of segment profitability (pretax) | 3,297 | 3,195 | ||
Operating Segments [Member] | Investment [Member] | ||||
Revenue: | ||||
Net investment income | 579,632 | 567,569 | ||
Total revenue | 579,632 | 567,569 | ||
Expenses: | ||||
Required interest on reserves | 503,798 | 485,189 | ||
Required interest on DAC | (147,955) | (144,235) | ||
Interest expense | 57,420 | 57,119 | ||
Total benefits and expenses | 413,263 | 398,073 | ||
Subtotal | 166,369 | 169,496 | ||
Measure of segment profitability (pretax) | 166,369 | 169,496 | ||
Operating Segments [Member] | Other & Corporate [Member] | ||||
Revenue: | ||||
Other income | 2,201 | 1,990 | ||
Total revenue | 2,201 | 1,990 | ||
Expenses: | ||||
Insurance administrative expense | 142,829 | 134,918 | ||
Parent expense | 6,662 | 6,284 | ||
Stock compensation expense | 21,877 | 25,219 | ||
Total benefits and expenses | 171,368 | 166,421 | ||
Subtotal | (169,167) | (164,431) | ||
Measure of segment profitability (pretax) | (169,167) | (164,431) | ||
Adjustments [Member] | ||||
Revenue: | ||||
Premium | $ (9,322) | $ 28,532 | ||
Net investment income | ||||
Other income | $ (149) | $ (178) | ||
Total revenue | (9,471) | 28,354 | ||
Expenses: | ||||
Policy benefits | 11,649 | $ 53,561 | ||
Amortization of acquisition costs | ||||
Commissions, premium taxes, and non-deferred acquisition costs | (149) | $ (178) | ||
Insurance administrative expense | $ 2,337 | |||
Parent expense | ||||
Total benefits and expenses | 11,500 | $ 55,720 | ||
Subtotal | (20,971) | (27,366) | ||
Nonoperating items | 20,971 | 27,366 | ||
Measure of segment profitability (pretax) | 0 | 0 | ||
Adjustments [Member] | Medicare Part D [Member] | ||||
Revenue: | ||||
Premium | (9,322) | 28,532 | ||
Expenses: | ||||
Policy benefits | 11,649 | 45,382 | ||
Deduct Part D adjustment | $ (20,971) | $ (16,850) |
Business Segments - Analysis of
Business Segments - Analysis of Profitability by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Pretax operating income | $ 598,663 | $ 600,053 | ||
Applicable taxes | (196,005) | (196,288) | ||
Net operating income | 402,658 | 403,765 | ||
Pretax operating income, increase (decrease) | (1,390) | |||
Applicable taxes, increase (decrease) | 283 | |||
Net income, increase (decrease) | $ (1,107) | |||
Pretax operating income, % change | 0.00% | |||
Other income | $ 692 | $ 668 | $ 2,052 | 1,812 |
Applicable taxes, % change | 0.00% | |||
Net operating income, % change | 0.00% | |||
Reconciling items, net of tax: | ||||
Realized gains (losses)-Investments | $ 5,117 | 10,213 | ||
Part D adjustment | (13,631) | (10,952) | ||
Administrative settlements | 0 | (5,316) | ||
Legal settlement expense | 0 | (1,519) | ||
Net income | $ 145,386 | $ 132,412 | 394,144 | 396,191 |
Realized gains (losses) - Investments, increase (decrease) | (5,096) | |||
Part D adjustment, increase (decrease) | (2,679) | |||
Administrative settlements, increase (decrease) | 5,316 | |||
Legal settlement expense, increase (decrease) | 1,519 | |||
Net income, increase (decrease) | $ (2,047) | |||
Segment Reporting Reconciling Items Realized Gains Losses On Investments Net Of Tax Increase Decrease Percentage | (50.00%) | |||
Part D Adjustment, Net Of Tax, Increase (Decrease) Percentage | 24.00% | |||
Segment Reporting Reconciling Items Administrative Settlement Increase Decrease Percentage | (100.00%) | |||
Segment Reporting Reconciling Items Net Proceeds Or Cost From Legal Settlements Net Of Tax Increase Decrease Percentage | (100.00%) | |||
Net income, % change | (1.00%) | |||
Medicare Part D [Member] | ||||
Reconciling items, net of tax: | ||||
Part D adjustment | $ (13,631) | (10,952) | ||
Operating Segments [Member] | Life [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pretax operating income | 424,880 | 420,588 | ||
Pretax operating income, increase (decrease) | $ 4,292 | |||
Pretax operating income, % change | 1.00% | |||
Operating Segments [Member] | Health [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pretax operating income | $ 153,396 | 148,471 | ||
Pretax operating income, increase (decrease) | $ 4,925 | |||
Pretax operating income, % change | 3.00% | |||
Operating Segments [Member] | Medicare Part D [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pretax operating income | $ 19,888 | 22,734 | ||
Pretax operating income, increase (decrease) | $ (2,846) | |||
Pretax operating income, % change | (13.00%) | |||
Operating Segments [Member] | Annuity [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pretax operating income | $ 3,297 | 3,195 | ||
Pretax operating income, increase (decrease) | $ 102 | |||
Pretax operating income, % change | 3.00% | |||
Operating Segments [Member] | Investment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pretax operating income | $ 166,369 | 169,496 | ||
Pretax operating income, increase (decrease) | $ (3,127) | |||
Pretax operating income, % change | (2.00%) | |||
Operating Segments [Member] | Other and corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pretax operating income | $ (169,167) | (164,431) | ||
Other income | 2,201 | 1,990 | ||
Operating Segments [Member] | Other and corporate [Member] | Other income [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pretax operating income | 2,201 | 1,990 | ||
Pretax operating income, increase (decrease) | $ 211 | |||
Pretax operating income, % change | 11.00% | |||
Operating Segments [Member] | Other and corporate [Member] | Administrative expense [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pretax operating income | $ (142,829) | (134,918) | ||
Pretax operating income, increase (decrease) | $ (7,911) | |||
Pretax operating income, % change | 6.00% | |||
Operating Segments [Member] | Other and corporate [Member] | Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pretax operating income | $ (28,539) | $ (31,503) | ||
Pretax operating income, increase (decrease) | $ 2,964 | |||
Pretax operating income, % change | (9.00%) |
Adoption of New Accounting St40
Adoption of New Accounting Standards (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net investment income | $ 193,213 | $ 189,588 | $ 579,632 | $ 567,569 |
Total revenue | 998,759 | 974,488 | 3,054,985 | 2,989,695 |
Income before income taxes | 216,744 | 197,051 | 585,564 | 588,400 |
Income taxes | (71,358) | (64,639) | (191,420) | (192,209) |
Net income | $ 145,386 | 132,412 | $ 394,144 | 396,191 |
As previously reported [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net investment income | 182,101 | 545,978 | ||
Total revenue | 967,001 | 2,968,104 | ||
Income before income taxes | 189,564 | 566,809 | ||
Income taxes | (57,152) | (170,618) | ||
Net income | 132,412 | 396,191 | ||
Adjustments [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net investment income | 7,487 | 21,591 | ||
Total revenue | 7,487 | 21,591 | ||
Income before income taxes | 7,487 | 21,591 | ||
Income taxes | (7,487) | (21,591) | ||
Net income | $ 0 | $ 0 |