Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 17, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | TMK | ||
Entity Registrant Name | TORCHMARK CORP | ||
Entity Central Index Key | 320,335 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 117,761,153 | ||
Entity Public Float | $ 7,409,307,020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Fixed maturities-available for sale, at fair value (amortized cost: 2016—$14,188,050; 2015—$13,251,871) | $ 15,245,861 | $ 13,758,024 |
Policy loans | 507,975 | 492,462 |
Other long-term investments | 53,852 | 38,438 |
Short-term investments | 72,040 | 54,766 |
Total investments | 15,879,728 | 14,343,690 |
Cash | 76,163 | 61,383 |
Accrued investment income | 223,148 | 209,915 |
Other receivables | 384,454 | 344,552 |
Deferred acquisition costs | 3,783,158 | 3,617,135 |
Goodwill | 441,591 | 441,591 |
Other assets | 520,313 | 522,104 |
Assets related to discontinued operations | 127,532 | 312,843 |
Total assets | 21,436,087 | 19,853,213 |
Liabilities: | ||
Future policy benefits | 12,825,837 | 12,245,811 |
Unearned and advance premiums | 64,017 | 67,021 |
Policy claims and other benefits payable | 299,565 | 272,898 |
Other policyholders' funds | 96,993 | 95,988 |
Total policy liabilities | 13,286,412 | 12,681,718 |
Current and deferred income taxes payable | 1,743,990 | 1,450,888 |
Other liabilities | 413,760 | 380,158 |
Short-term debt | 264,475 | 490,129 |
Long-term debt (estimated fair value: 2016—$1,233,019; 2015—$856,291) | 1,133,165 | 743,733 |
Liabilities related to discontinued operations | 27,424 | 51,035 |
Total liabilities | 16,869,226 | 15,797,661 |
Commitments and Contingencies (Note 15) | ||
Shareholders' equity: | ||
Preferred stock, par value $1 per share—Authorized 5,000,000 shares; outstanding: 0 in 2016 and 2015 | 0 | 0 |
Common stock, par value $1 per share—Authorized 320,000,000 shares; outstanding: (2016—127,218,183 issued, less 9,187,075 held in treasury and 2015—130,218,183 issued, less 7,848,231 held in treasury) | 127,218 | 130,218 |
Additional paid-in capital | 490,421 | 482,284 |
Accumulated other comprehensive income (loss) | 577,574 | 231,947 |
Retained earnings | 3,890,798 | 3,614,369 |
Treasury stock | (519,150) | (403,266) |
Total shareholders’ equity | 4,566,861 | 4,055,552 |
Total liabilities and shareholders’ equity | $ 21,436,087 | $ 19,853,213 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available for sale, amortized cost | $ 14,188,050 | $ 13,251,871 |
Long-term debt, fair value | $ 1,233,019 | $ 856,291 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 320,000,000 | 320,000,000 |
Common stock, shares issued | 127,218,183 | 130,218,183 |
Common stock, shares held in treasury | 9,187,075 | 7,848,231 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Revenue: | ||||
Life premium | $ 2,189,333 | $ 2,073,065 | $ 1,966,300 | |
Health premium | 947,663 | 925,520 | 869,440 | |
Other premium | 38 | 135 | 400 | |
Total premium | 3,137,034 | 2,998,720 | 2,836,140 | |
Net investment income | 806,903 | 773,951 | 758,286 | |
Realized investment gains (losses) | (10,683) | (8,791) | 23,548 | |
Other income | 1,375 | 2,185 | 2,121 | |
Total revenue | 3,934,629 | 3,766,065 | 3,620,095 | |
Benefits and expenses: | ||||
Life policyholder benefits | 1,479,272 | 1,374,608 | 1,301,562 | |
Health policyholder benefits | 612,725 | 602,610 | 559,817 | |
Other policyholder benefits | 36,751 | 38,994 | 42,005 | |
Total policyholder benefits | 2,128,748 | 2,016,212 | 1,903,384 | |
Amortization of deferred acquisition costs | 469,063 | 445,625 | 415,914 | |
Commissions, premium taxes, and non-deferred acquisition expenses | 249,174 | 237,541 | 222,463 | |
Other operating expense | 232,064 | 223,858 | 217,531 | |
Interest expense | 83,345 | 76,642 | 76,126 | |
Total benefits and expenses | 3,162,394 | 2,999,878 | 2,835,418 | |
Income before income taxes | 772,235 | 766,187 | 784,677 | |
Income taxes | [1] | (232,645) | (249,894) | (256,603) |
Income from continuing operations | 539,590 | 516,293 | 528,074 | |
Discontinued operations: | ||||
Income from discontinued operations, net of tax | 10,189 | 10,807 | 14,865 | |
Net income | $ 549,779 | $ 527,100 | $ 542,939 | |
Basic net income per common share: | ||||
Continuing operations (in dollars per share) | $ 4.50 | $ 4.13 | $ 4.04 | |
Discontinued operations (in dollars per share) | 0.08 | 0.08 | 0.11 | |
Total basic net income per common share (in dollar per share) | 4.58 | 4.21 | 4.15 | |
Diluted net income per common share: | ||||
Continuing operations (in dollars per share) | [1] | 4.41 | 4.07 | 3.98 |
Discontinued operations (in dollars per share) | [1] | 0.08 | 0.09 | 0.11 |
Total diluted net income per common share (in dollars per share) | [1] | $ 4.49 | $ 4.16 | $ 4.09 |
[1] | Certain current year amounts were prospectively adjusted to give effect to the adoption of ASU 2016-09 related to excess tax benefits from stock compensation as described in Note 1—Significant Accounting Policies under "Accounting Pronouncements Adopted in the Current Year." |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 549,779 | $ 527,100 | $ 542,939 |
Unrealized investment gains (losses): | |||
Total unrealized investment gains (losses) | 553,801 | (1,166,032) | 1,283,062 |
Less applicable (taxes) benefits | (193,820) | 408,092 | (448,985) |
Unrealized gains (losses) on investments, net of tax | 359,981 | (757,940) | 834,077 |
Unrealized gains (losses) attributable to deferred acquisition costs | (2,412) | 8,682 | (6,200) |
Less applicable (taxes) benefits | 845 | (3,039) | 2,170 |
Unrealized gains (losses) attributable to deferred acquisition costs, net of tax | (1,567) | 5,643 | (4,030) |
Foreign exchange translation adjustments, other than securities | 2,178 | (20,651) | (10,770) |
Less applicable (taxes) benefits | (838) | 6,892 | 3,290 |
Foreign exchange translation adjustments, other than securities, net of tax | 1,340 | (13,759) | (7,480) |
Pension adjustments: | |||
Amortization of pension costs | 10,168 | 14,586 | 10,285 |
Plan amendments | 0 | (2,104) | 0 |
Experience gain (loss) | (31,902) | (11,632) | (65,817) |
Pension adjustments | (21,734) | 850 | (55,532) |
Less applicable (taxes) benefits | 7,607 | (299) | 19,436 |
Pension adjustments, net of tax | (14,127) | 551 | (36,096) |
Other comprehensive income (loss) | 345,627 | (765,505) | 786,471 |
Comprehensive income (loss) | 895,406 | (238,405) | 1,329,410 |
Securities | |||
Unrealized investment gains (losses): | |||
Unrealized holding gains (losses) arising during period | 544,886 | (1,163,417) | 1,312,548 |
Reclassification adjustment for (gains) losses on securities included in net income | 10,645 | 9,478 | (23,170) |
Reclassification adjustment for amortization of (discount) premium | (4,185) | (6,346) | (8,621) |
Foreign exchange adjustment on securities recorded at fair value | 312 | (3,010) | (1,567) |
Total unrealized investment gains (losses) | 551,658 | (1,163,295) | 1,279,190 |
Other Investments | |||
Unrealized investment gains (losses): | |||
Unrealized holding gains (losses) arising during period | 2,503 | (1,635) | 4,473 |
Reclassification adjustment for (gains) losses on securities included in net income | (360) | (1,102) | (601) |
Total unrealized investment gains (losses) | $ 2,143 | $ (2,737) | $ 3,872 |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | |
Beginning balance at Dec. 31, 2013 | $ 3,776,342 | $ 0 | $ 151,218 | $ 462,058 | $ 210,981 | $ 3,495,533 | $ (543,448) | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Comprehensive income (loss) | 1,329,410 | 786,471 | 542,939 | |||||
Common dividends declared ($.51 in 2014, $.54 in 2015 and $.56 in 2016 a share) | (65,998) | (65,998) | ||||||
Acquisition of treasury stock | (449,308) | (449,308) | ||||||
Stock-based compensation | 32,203 | 31,315 | 362 | 526 | ||||
Exercise of stock options | 74,817 | 18,524 | (22,641) | 78,934 | ||||
Retirement of treasury stock | 0 | (17,000) | (54,284) | (573,349) | 644,633 | |||
Ending balance at Dec. 31, 2014 | 4,697,466 | 0 | 134,218 | 457,613 | 997,452 | 3,376,846 | (268,663) | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Comprehensive income (loss) | (238,405) | (765,505) | 527,100 | |||||
Common dividends declared ($.51 in 2014, $.54 in 2015 and $.56 in 2016 a share) | (67,182) | (67,182) | ||||||
Acquisition of treasury stock | (418,526) | (418,526) | ||||||
Stock-based compensation | 28,664 | 21,813 | (2,132) | 8,983 | ||||
Exercise of stock options | 53,535 | 17,577 | (36,322) | 72,280 | ||||
Retirement of treasury stock | 0 | (4,000) | (14,719) | (183,941) | 202,660 | |||
Ending balance at Dec. 31, 2015 | 4,055,552 | 0 | 130,218 | 482,284 | 231,947 | 3,614,369 | (403,266) | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Comprehensive income (loss) | 895,406 | 345,627 | 549,779 | |||||
Common dividends declared ($.51 in 2014, $.54 in 2015 and $.56 in 2016 a share) | (66,968) | (66,968) | ||||||
Acquisition of treasury stock | (404,784) | (404,784) | ||||||
Stock-based compensation | 26,326 | 19,659 | (2,224) | 8,891 | ||||
Exercise of stock options | [1] | 61,329 | (53,845) | 115,174 | ||||
Retirement of treasury stock | 0 | (3,000) | (11,522) | (150,313) | 164,835 | |||
Ending balance at Dec. 31, 2016 | $ 4,566,861 | $ 0 | $ 127,218 | $ 490,421 | $ 577,574 | $ 3,890,798 | $ (519,150) | |
[1] | Certain current year amounts were prospectively adjusted to give effect to the adoption of ASU 2016-09 related to excess tax benefits from stock compensation as described in Note 1—Significant Accounting Policies under "Accounting Pronouncements Adopted in the Current Year." |
Consolidated Statements Of Sha7
Consolidated Statements Of Shareholder's Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Common dividends declared, per share (in dollars per share) | $ 0.56 | $ 0.54 | $ 0.51 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Cash provided from (used for) operating activities: | ||||
Net income | $ 549,779 | $ 527,100 | $ 542,939 | |
Adjustments to reconcile net income from continuing operations to cash provided from continuing operations: | ||||
(Income) from discontinued operations, net of income taxes | (10,189) | (10,807) | (14,865) | |
Increase in future policy benefits | 645,844 | 631,202 | 585,632 | |
Increase (decrease) in other policy benefits | 24,668 | 14,609 | 12,521 | |
Deferral of policy acquisition costs | (635,318) | (612,181) | (562,245) | |
Amortization of deferred policy acquisition costs | 469,063 | 445,625 | 415,914 | |
Change in current and deferred income taxes | [1] | 152,210 | 103,558 | 102,720 |
Realized (gains) losses on sale of investments and properties | 10,683 | 8,791 | (23,548) | |
Other, net | 20,079 | 13,985 | (38,354) | |
Net cash provided from (used for) continuing operations | 1,226,819 | 1,121,882 | 1,020,714 | |
Net cash provided from (used for) discontinued operations | 171,889 | (1,832) | (156,006) | |
Cash provided from (used for) operating activities | 1,398,708 | 1,120,050 | 864,708 | |
Cash provided from (used for) investing activities: | ||||
Fixed maturities available for sale—sold | 340,434 | 226,792 | 109,024 | |
Fixed maturities available for sale—matured, called, and repaid | 236,353 | 376,158 | 273,223 | |
Other long-term investments | 1,217 | 3,740 | 1,495 | |
Total investments sold or matured | 578,004 | 606,690 | 383,742 | |
Acquisition of investments: | ||||
Fixed maturities—available for sale | (1,530,053) | (1,070,908) | (704,993) | |
Other long-term investments | (20,444) | (31,707) | 0 | |
Total investments acquired | (1,550,497) | (1,102,615) | (704,993) | |
Net increase in policy loans | (15,513) | (20,353) | (23,222) | |
Net (increase) decrease in short-term investments | (17,274) | (38,884) | 61,008 | |
Additions to properties | (25,162) | (36,957) | (19,367) | |
Sales of properties | 90 | 0 | 8,752 | |
Investments in low-income housing interests | (32,084) | (41,231) | (56,083) | |
Cash provided from (used for) investing activities | (1,062,436) | (633,350) | (350,163) | |
Cash provided from (used for) financing activities: | ||||
Issuance of common stock | 61,329 | 35,958 | 56,294 | |
Cash dividends paid to shareholders | (66,931) | (66,899) | (65,006) | |
Repayment of debt | (250,000) | 0 | 0 | |
Proceeds from issuance of debt | 400,000 | 0 | 0 | |
Payment for debt issuance costs | (9,638) | 0 | 0 | |
Net borrowing (repayment) of commercial paper | 22,224 | 1,978 | 9,328 | |
Excess tax benefit from stock option exercises | [1] | 0 | 17,577 | 18,524 |
Acquisition of treasury stock | (404,784) | (418,526) | (449,308) | |
Net receipts (payments) from deposit-type product | (71,991) | (95,793) | (69,792) | |
Cash provided from (used for) financing activities | (319,791) | (525,705) | (499,960) | |
Effect of foreign exchange rate changes on cash | (1,701) | 34,369 | 14,491 | |
Increase (decrease) in cash | 14,780 | (4,636) | 29,076 | |
Cash at beginning of year | 61,383 | 66,019 | 36,943 | |
Cash at end of year | $ 76,163 | $ 61,383 | $ 66,019 | |
[1] | Certain current year amounts were prospectively adjusted to give effect to the adoption of ASU 2016-09 related to excess tax benefits from stock compensation as described in Note 1—Significant Accounting Policies under "Accounting Pronouncements Adopted in the Current Year." |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Business : Torchmark Corporation (Torchmark or alternatively, the Company) through its wholly-owned subsidiaries provides a variety of life and health insurance products and annuities to a broad base of customers. Torchmark is organized into four reportable segments: life insurance, health insurance, annuity, and investment. Basis of Presentation : The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), under guidance issued by the Financial Accounting Standards Board (FASB). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Principles of Consolidation : The consolidated financial statements include the results of Torchmark and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. When Torchmark acquires a subsidiary or a block of business, the assets acquired and the liabilities assumed are measured at fair value at the acquisition date. Any excess of acquisition cost over the fair value of net assets is recorded as goodwill. Expenses incurred to effect the acquisition are charged to earnings as of the acquisition date. Upon acquisition, the accounts and results of operations are consolidated as of and subsequent to the acquisition date. Torchmark accounts for its variable interest entities (VIEs) under accounting guidance which clarifies the definition of a variable interest and the instructions for consolidating VIEs. Only primary beneficiaries are required or allowed to consolidate VIEs. Therefore, a company may have voting control of a VIE, but if it is not the primary beneficiary, it is not permitted to consolidate the VIE. As further described under the caption Low-Income Housing Tax Credit Interests below in this note, Torchmark holds passive interests in limited partnerships which provide investment returns through the provision of tax benefits (principally from the transfer of federal or state tax credits related to federal low-income housing). These interests are considered to be VIEs. They are not consolidated because the Company has no power to control the activities that most significantly affect the economic performance of these entities and therefore the Company is not the primary beneficiary of any of these interests. Torchmark’s involvement is limited to its limited partnership interest in the entities. Torchmark has not provided any other financial support to the entities beyond its commitments to fund its limited partnership interests, and there are no arrangements or agreements with any of the interests to provide other financial support. The maximum loss exposure relative to these interests is limited to their carrying value. Discontinued Operations : When a component of Torchmark’s business is sold or expected to be sold during the ensuing year, Torchmark considers whether the criteria of ASC 205-20, Discontinued Operations , have been met, which includes evaluating if the disposal of a component represents a strategic shift that has, or will have, a major effect on the Company. If the disposal meets the criteria for discontinued operations, the assets and liabilities are segregated and recorded in the Consolidated Balance Sheets as "Assets and Liabilities related to discontinued operations" for all periods presented. If the carrying amount of the business exceeds its estimated fair value, a loss is recognized. The results of operations for the discontinued component are reported in "Income from discontinued operations, net of tax" in the Consolidated Statements of Operations for current and prior periods. Discontinued operations are reported commencing in the period in which the business is either disposed of or meets the accounting criteria for discontinued operations, including any gain or loss recognized on the sale or adjustment of the carrying amount to the estimated fair value less cost to sell. As discussed in further detail in Note 6—Discontinued Operations , Torchmark sold one of its operating segments, Medicare Part D during 2016. The financial results of this business are excluded from Torchmark's continuing operations including the Notes to the Consolidated Financial Statements , other than Note 2—Statutory Accounting and Note 6—Discontinued Operations . Investments : Torchmark classifies all of its fixed maturity investments, which include bonds and redeemable preferred stocks, as available for sale. Investments classified as available for sale are carried at fair value with unrealized gains and losses, net of deferred taxes, reflected directly in accumulated other comprehensive income. Policy loans are carried at unpaid principal balances. Other long-term investments include equity securities, real estate, and limited partnerships. Investments in equity securities, which include common and nonredeemable preferred stocks, are reported at fair value with unrealized gains and losses, net of deferred taxes, reflected directly in accumulated other comprehensive income. Investments in real estate are reported at cost less allowances for depreciation. Depreciation is calculated on the straight-line method. Investments in limited partnerships are accounted for using the cost method of accounting as Torchmark's partnership interest is minor since Torchmark lacks the ability to exercise significant influence over the partnership's operating and financial policies. The Company considers its cost method investments for impairment when the carrying value of such investments exceeds the net asset value (“NAV”). Short-term investments include investments in interest-bearing time deposits with original maturities of twelve months or less. Gains and losses realized on the disposition of investments are determined on a specific identification basis. Fair Value Measurements, Investments in Securities : Torchmark measures the fair value of its fixed maturities based on a hierarchy consisting of three levels which indicate the quality of the fair value measurements as described below: • Level 1— fair values are based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date. • Level 2 — fair values are based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that can otherwise be corroborated by observable market data. • Level 3— fair values are based on inputs that are considered unobservable where there is little, if any, market activity for the asset or liability as of the measurement date. In this circumstance, the Company has to rely on values derived by independent brokers or internally-developed assumptions. Unobservable inputs are developed based on the best information available to the Company which may include the Company’s own data or bid and ask prices in the dealer market. The great majority of Torchmark's fixed maturities are not actively traded and direct quotes are not generally available. Management therefore determines the fair values of these securities after consideration of data provided by third-party pricing services, independent broker/dealers, and other resources. At December 31, 2016 , Torchmark's investments in fixed maturities were primarily composed of the following significant security types: Corporate securities, state and municipal securities, redeemable preferred stocks, and U.S. government securities. The remaining security types represented less than 1% of the total in the aggregate. Over 95% of the fair value reported at December 31, 2016 was determined using data provided by third-party pricing services. Prices provided by these services are not binding offers, but are estimated exit values. Third-party pricing services use proprietary pricing models to determine security values by discounting cash flows using a market-adjusted spread to a benchmark yield. For all asset classes within Torchmark’s significant security types, third-party pricing services use a common valuation technique to model the price of the investments using observable market data. The foundation for these models consists of developing yield spreads based on multiple observable market inputs, including but not limited to: benchmark yield curves, actual trading activity, new issue yields, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, sector-specific data, economic data, and other inputs that are corroborated in the market. Pricing vendors monitor and review their pricing data continuously with current market and economic data feeds, augmented by ongoing communication within the dealer community. Using the observable market inputs described above, spreads to an appropriate benchmark yield are further developed by the vendors for each security based on security-specific and/or sector-specific risk factors, such as a security’s terms and conditions (coupon, maturity, and call features), credit rating, sector, liquidity, collateral or other cash flow options, and other factors that could impact the risk of the security. Embedded repayment options, such as call and redemption features, are also taken into account in the pricing models. When the spread is determined, it is added to the security’s benchmark yield. The security's expected cash flows are discounted using this spread-adjusted yield, and the resulting present value of the discounted cash flows is the evaluated price. When third-party vendor prices are not available, the Company attempts to obtain valuations from other sources, including but not limited to broker/dealers, broker quotes, and prices on comparable securities. When valuations have been obtained for all securities in the portfolio, management reviews and analyzes the prices to ensure their reasonableness, taking into account available observable information. When two or more valuations are available for a security and the variance between the prices is 10% or less, the close correlation suggests similar observable inputs were used in deriving the price, and the mean of the prices is used. Securities valued in this manner are classified as Level 2. When the variance between two or more valuations for a security exceeds 10%, additional analysis is performed to determine the most appropriate value for that security, using resources such as broker quotes, prices on comparable securities, recent trades, and any other observable market data. Further review is performed on the available valuations to determine if they can be corroborated within reasonable tolerance to any other observable evidence. If one of the valuations or the mean of the available valuations for a security can be corroborated with other observable evidence, then the corroborated value is used and reported as Level 2. The Company uses information and analytical techniques deemed appropriate for determining the point within the range of reasonable fair value estimates that is most representative of fair value under current market conditions. Valuations that cannot be corroborated within a reasonable tolerance are classified as Level 3. Torchmark invests in a portfolio of private placement bonds which are not actively traded. This portfolio is managed by third parties and was $565 million at amortized cost and $574 million at fair value on December 31, 2016 , compared with $542 million at amortized cost and $546 million at fair value a year earlier. The portfolio managers provide valuations for the bonds based on a pricing matrix utilizing observable inputs, such as the benchmark treasury rate and published sector indices, and unobservable inputs such as an internally-developed credit rating. If they cannot be corroborated, the fair values are classified as Level 3. As of December 31, 2016 , fair values of $15 million were classified as Level 2, while the remaining balance of $559 million was classified as Level 3. As of December 31, 2015 , fair values of $15 million were classified as Level 2, while the remaining balance of $531 million was classified as Level 3. The fair values for each class of security and by valuation hierarchy level are indicated in Note 4—Investments under the caption Fair value measurements and Note 9—Postretirement Benefits under the caption Pension Plans . Fair Value Measurements, Other Financial Instruments : Fair values for cash, short-term investments, short-term debt, receivables and payables approximate carrying value. Policy loans are an integral part of Torchmark’s subsidiaries’ life insurance policies in force and their fair values cannot be valued separately and apart from the insurance contracts. The fair values of Torchmark’s long-term debt issues are based on the same methodology as investments in fixed maturities. Because observable inputs were available for these debt securities at December 31, 2016 , they were classified as Level 2 in the valuation hierarchy. The fair value for each debt instrument as of December 31, 2016 is disclosed in Note 11—Debt . As described in Note 9—Postretirement Benefits , Torchmark maintains a nonqualified supplemental retirement plan. Therefore the assets which support the liability for this plan are considered general assets of the Company. These assets consist of the cash value of corporate-owned life insurance policies and exchange traded funds (ETFs). The fair value of the insurance cash values approximates carrying value. Fair values for the ETFs are derived from direct quotes and are considered Level 1 in the valuation hierarchy. Impairment of Investments : Torchmark’s portfolio of fixed maturities fluctuates in value due to changes in interest rates in the financial markets as well as other factors. Fluctuations caused by market interest rate changes have little bearing on whether or not the investment will be ultimately recoverable. Therefore, Torchmark considers these declines in value resulting from changes in market interest rates to be temporary. In certain circumstances, however, Torchmark determines that the decline in the value of a security is other-than-temporary and writes the book value of the security down to its fair value, realizing an investment loss. The evaluation of Torchmark’s securities for other-than-temporary impairments is a process that is undertaken at least quarterly and is overseen by a team of Company investment and accounting professionals. Each security which is impaired because the fair value is less than the cost or amortized cost is identified and evaluated. The determination that an impairment is other-than-temporary is highly subjective and involves the careful consideration of many factors. Among the factors considered are: • The length of time and extent to which the security has been impaired • The reason(s) for the impairment • The financial condition of the issuer and the near-term prospects for recovery in fair value of the security • The Company’s ability and intent to hold the security until anticipated recovery • Expected future cash flows The relative weight given to each of these factors can change over time as facts and circumstances change. In many cases, management believes it is appropriate to give relatively more weight to prospective factors than to retrospective factors. Prospective factors that are given more weight include prospects for recovery, the Company’s ability and intent to hold the security until anticipated recovery, and expected future cash flows. Among the facts and information considered in the process are: • Financial statements of the issuer • Changes in credit ratings of the issuer • The value of underlying collateral • News and information included in press releases issued by the issuer • News and information reported in the media concerning the issuer • News and information published by or otherwise provided by credit analysts • The nature and amount of recent and expected future sources and uses of cash • Default on a required payment • Issuer bankruptcy filings While all available information is taken into account, it is difficult to predict the ultimate recoverable amount of a distressed or impaired security. If a security is determined to be other-than-temporarily impaired, the cost basis of the security is written down to fair value and is treated as a realized loss in the period the determination is made. The written-down security will be amortized and revenue recognized in accordance with estimated future cash flows. Current accounting guidance is such that if an entity intends to sell or if it is more likely than not that it will be required to sell an impaired security prior to recovery of its cost basis, the security is to be considered other-than-temporarily impaired and the full amount of impairment must be charged to earnings. Otherwise, losses on fixed maturities which are other-than-temporarily impaired are separated into two categories, the portion of loss which is considered credit loss and the portion of loss which is due to other factors. The credit loss portion is charged to earnings while the loss due to other factors is charged to other comprehensive income. The credit loss portion of an impairment is determined as the difference between the security’s amortized cost and the present value of expected future cash flows discounted at the security’s original effective yield rate. The temporary portion is the difference between this present value of expected future cash flows and fair value (as discounted by a market yield). The expected cash flows are determined using judgment and the best information available to the Company. Inputs used to derive expected cash flows include expected default rates, current levels of subordination, and loan-to-collateral value ratios. Management believes that the present value of future cash flows at the original effective yield is a better measure of valuation because fair value determined by a discounted market yield is often based on limited observable market data, and the market for these securities is generally neither active nor orderly. Cash : Cash consists of balances on hand and on deposit in banks and financial institutions. Accrued investment income : Accrued investment income consists of interest income or dividends earned on the investment portfolio, but are yet to be received as of the balance sheet date. Other Receivables : Other receivables consist primarily of agent debit balances, which represent commissions advanced to insurance agents. These balances are repaid to the Company over time as the premiums associated with the advanced commissions are collected by the Company and the agents' commissions on such premiums are retained. The balance was $353 million and $334 million at December 31, 2016 and 2015 , respectively. Management believes these balances are recoverable as they are less than the estimated present value of future commissions. Deferred Acquisition Costs : Certain costs of acquiring new insurance business are deferred and recorded as an asset. These costs are essential for the acquisition of new insurance business and are directly related to the successful issuance of an insurance contract including sales commissions, policy issue costs, and underwriting costs. Additionally, deferred acquisition costs include the value of insurance purchased, which are the costs of acquiring blocks of insurance from other companies or through the acquisition of other companies. These costs represent the difference between the fair value of the contractual insurance assets acquired and liabilities assumed compared against the assets and liabilities for insurance contracts that the Company issues or holds measured in accordance with GAAP. Deferred acquisition costs and the value of insurance purchased are amortized in a systematic manner which matches these costs with the associated revenues. Policies other than universal life-type policies are amortized with interest over the estimated premium-paying period of the policies in a manner which charges each year’s operations in proportion to the receipt of premium income. Universal life-type policies are amortized with interest in proportion to estimated gross profits. The assumptions used to amortize acquisition costs with regard to interest, mortality, morbidity, and persistency are consistent with those used to estimate the liability for future policy benefits. For interest-sensitive and deposit-balance type products, these assumptions are reviewed on a regular basis and are revised if actual experience differs significantly from original expectations. For all other products, amortization assumptions are generally not revised once established. Deferred acquisition costs are subject to periodic recoverability and loss recognition testing to determine if there is a premium deficiency. These tests evaluate whether the present value of future contract-related cash flows will support the capitalized deferred acquisition cost asset. These cash flows consist primarily of premium income, less benefits and expenses taking inflation into account. The present value of these cash flows, less the benefit reserve, is then compared with the unamortized deferred acquisition cost balance. In the event the estimated present value of net cash flows is less, the deficiency would be recognized by a charge to earnings and either a reduction of unamortized acquisition costs or an increase in the liability for future benefits, as described under the caption Future Policy Benefits . Advertising Costs : Costs related to advertising are generally charged to expense as incurred. However, certain Globe Life Direct Response advertising costs are capitalized when there is a reliable and demonstrated relationship between total costs and future benefits that is a direct result of incurring these costs. Globe Life Direct Response advertising costs consist primarily of the production and distribution costs of direct mail advertising materials, and when capitalized are included as a component of deferred acquisition costs. They are amortized in the same manner as other deferred acquisition costs. Globe Life Direct Response advertising costs charged to earnings and included in other operating expense were $9 million , $10 million , and $8 million in 2016 , 2015 , and 2014 , respectively. Capitalized advertising costs included within deferred acquisition costs were $1.25 billion at December 31, 2016 and $1.21 billion at December 31, 2015 . Goodwill : The excess cost of a business acquired over the fair value of net assets acquired is reported as goodwill. Goodwill is subject to impairment testing in accordance with GAAP on an annual basis, or whenever potential impairment triggers occur. The Company may perform a qualitative analysis under certain circumstances, or perform a two-step quantitative analysis. In the qualitative analysis, the Company determines if it is more likely than not that the fair value of a reporting unit is less than its carrying amount by assessing current events and circumstances. If there are factors present indicating potential impairment, the company should proceed to the two-step quantitative analysis as described as follows. In the two-step quantitative analysis, the Company utilizes two approaches, income and market, to determine the fair value of each reporting unit. In the income approach, judgment and assumptions are used in developing the projected cash flows for the reporting units, and such estimates are subject to change. The Company also exercises judgment in the determination of the discount rate as management believes this to be appropriate for the risk associated with the cash flow expectations. In the market approach, the Company utilizes the share price and a control premium based on businesses with similar assets to determine a fair value. In both cases, the fair value of each reporting unit is then measured against that reporting unit’s corresponding carrying value. In the event the fair value is less than the carrying value, further testing is required under the accounting guidance to determine the amount of impairment, if any. If there is an impairment in the goodwill of any reporting unit, it is written down and charged to earnings in the period of the test. Torchmark tested its goodwill annually as of June 30th in each of the years 2014 through 2016 . Torchmark’s goodwill was not impaired in any of those periods. Low-Income Housing Tax Credit Interests : Torchmark invests in limited partnerships that provide low-income housing tax credits and other related federal income tax and state premium tax benefits to Torchmark. The carrying value of Torchmark’s investment in these entities was $280 million and $306 million at December 31, 2016 and 2015 , respectively. At December 31, 2016 , $280 million associated with the federal interests was included in "Other assets" on the Consolidated Balance Sheets. At December 31, 2015 , $302 million associated with the federal interests was included in "Other assets" with the remaining $4 million state-related interests included in "Other long-term investments". As of December 31, 2016 , Torchmark was obligated under future commitments of $57 million , which is included in the above carrying value. For guaranteed investments acquired prior to January 1, 2015, the Company utilizes the effective-yield method of amortization while the proportional method of amortization is utilized for all non-guaranteed as well as guaranteed investments acquired on or after January 1, 2015. All amortization expense is recorded in “Income tax expense” on the Consolidated Statements of Operations . Property and Equipment : Property and equipment, included in “Other assets,” is reported at cost less allowances for depreciation. Depreciation is recorded primarily on the straight line method over the estimated useful lives of these assets which range from three to ten years for equipment and five to forty years for buildings and improvements. Ordinary maintenance and repairs are charged to income as incurred. Impairments, if any, are recorded when certain events and circumstances become evident that the fair value of the asset is less than its carrying amount. Original cost of property and equipment was $196 million at December 31, 2016 and $175 million at December 31, 2015 . Accumulated depreciation was $99 million at year end 2016 and $92 million at the end of 2015 . Depreciation expense was $9.8 million in 2016 , $8.0 million in 2015 , and $7.4 million in 2014 . Future Policy Benefits : The liability for future policy benefits for annuity and universal life-type products is represented by policy account value. The liability for future policy benefits for all other life and health products, approximately 86% of total future policy benefits, is determined on the net level premium method. This method provides for the present value of expected future benefit payments less the present value of expected future net premiums, based on estimated investment yields, mortality, morbidity, persistency and other assumptions which were considered appropriate at the time the policies were issued. For limited-payment contracts, a deferred profit liability is also recorded which causes profits to emerge over the life of the contract in proportion to policies in force. Assumptions used for traditional life and health insurance products are based primarily on Company experience. Assumptions for interest rates range from 2.5% to 7.0% for Torchmark’s insurance companies with an overall weighted average assumed rate of 5.7% . Mortality tables used for individual life insurance include various statutory tables and modifications of a variety of generally accepted actuarial tables. Morbidity assumptions for individual health are based on Company experience and industry data. Withdrawal and termination assumptions are based on Torchmark’s experience. Once established, assumptions for these products are generally not changed. An additional provision is made on most products to allow for possible adverse deviation from the assumptions. These estimates are reviewed annually and compared with actual experience. If it is determined that existing contract liabilities, together with the present value of future gross premiums, will not be sufficient to cover the present value of future benefits and to recover unamortized deferred acquisition costs, then a premium deficiency exists. Such a deficiency would be recognized immediately by a charge to earnings and either a reduction of unamortized deferred acquisition costs or an increase in the liability for future policy benefits. From that point forward, the liability for future policy benefits would be based on revised assumptions. Policy Claims and Other Benefits Payable : Torchmark establishes a liability for known policy benefits payable and an estimate of claims that have been incurred but not yet reported to the Company. Torchmark makes an estimate of unreported claims after careful evaluation of all information available to the Company. This estimate is based on prior experience and is reviewed quarterly. However, there is no certainty the stated liability for claims and other benefits, including the estimate of unsubmitted claims, will be Torchmark’s ultimate obligation. Income Taxes : Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement book values and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. More information concerning income taxes is provided in Note 8—Income Taxes . Postretirement Benefits : Torchmark accounts for its postretirement defined benefit plans by recognizing the funded status of those plans on its Consolidated Balance Sheets in accordance with accounting guidance. Periodic gains and losses attributable to changes in plan assets and liabilities that are not recognized as components of net periodic benefit costs are recognized as components of other comprehensive income, net of tax. More information concerning the accounting and disclosures for postretirement benefits is found in Note 9—Postretirement Benefits . Treasury Stock : Torchmark accounts for purchases of treasury stock on the cost method. Issuance of treasury stock is accounted for using the weighted-average cost method. More information is found in Note 12—Shareholders' Equity . Recognition of Premium Revenue and Related Expenses : Premium income for traditional long-duration life and health insurance products is recognized when due from the policyholder. Premiums for short-duration health contracts are recognized as revenue over the contract period in proportion to the insurance protection provided. Premiums for universal life-type and annuity contracts are added to the policy account value, and revenues for such products are recognized as charges to the policy account value for mortality, administration, and surrenders (retrospective deposit method). Life premium includes policy charges of $18 million , $19 million , and $21 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. Other premium consists of annuity policy charges in each year. For most insurance products, the related benefits and expenses are matched with revenues by means of the provision of future policy benefits and the amortization of deferred acquisition costs in a manner which recognizes profits as they are earned over the revenue recognition period. For limited-payment life insurance products, the profits are recognized over the contract period. Stock |
Statutory Accounting
Statutory Accounting | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Statutory Accounting | Statutory Accounting Life insurance subsidiaries of Torchmark are required to file statutory financial statements with state insurance regulatory authorities. Accounting principles used to prepare these statutory financial statements differ from GAAP. Consolidated net income and shareholders’ equity (capital and surplus) on a statutory basis for the insurance subsidiaries were as follows: Net Income Shareholders’ Equity Year Ended December 31, At December 31, 2016 2015 2014 2016 2015 Life insurance subsidiaries $ 429,563 $ 393,466 $ 446,439 $ 1,335,070 $ 1,253,007 The excess, if any, of shareholder’s equity of the insurance subsidiaries on a GAAP basis over that determined on a statutory basis is not available for distribution by the insurance subsidiaries to Torchmark without regulatory approval. Insurance subsidiaries’ statutory capital and surplus necessary to satisfy regulatory requirements in the aggregate was $477 million at December 31, 2016 . More information on the restrictions on the payment of dividends can be found in Note 12—Shareholders’ Equity . Torchmark’s statutory financial statements are presented on the basis of accounting practices prescribed by the insurance department of the state of domicile of each insurance subsidiary. While all states have adopted the National Association of Insurance Commissioners’ (NAIC) statutory accounting practices (NAIC SAP) as the basis for statutory accounting, certain states have retained prescribed practices of their respective insurance code or administrative code which can differ from NAIC SAP. For Torchmark’s life insurance companies, there are no significant differences between NAIC SAP and the accounting practices prescribed by the states of domicile. |
Supplemental Information about
Supplemental Information about Changes to Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Supplemental Information about Changes to Accumulated Other Comprehensive Income | Supplemental Information about Changes to Accumulated Other Comprehensive Income An analysis in the change in balance by component of Accumulated Other Comprehensive Income is as follows for each of the years 2014 through 2016 . Components of Accumulated Other Comprehensive Income For the 12 months ended December 31, 2014: Available Deferred Foreign Pension 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 855,132 (4,030 ) (7,480 ) (42,781 ) 800,841 Reclassifications, net of tax (21,055 ) — — 6,685 (14,370 ) Other comprehensive income (loss) 834,077 (4,030 ) (7,480 ) (36,096 ) 786,471 Balance at December 31, 2014 1,090,273 (10,758 ) 17,386 (99,449 ) 997,452 For the 12 months ended December 31, 2015: Other comprehensive income (loss) before reclassifications, net of tax (759,976 ) 5,643 (13,759 ) (8,930 ) (777,022 ) Reclassifications, net of tax 2,036 — — 9,481 11,517 Other comprehensive income (loss) (757,940 ) 5,643 (13,759 ) 551 (765,505 ) Balance at December 31, 2015 332,333 (5,115 ) 3,627 (98,898 ) 231,947 For the 12 months ended December 31, 2016: Other comprehensive income (loss) before reclassifications, net of tax 356,016 (1,567 ) 1,340 (20,736 ) 335,053 Reclassifications, net of tax 3,965 — — 6,609 10,574 Other comprehensive income (loss) 359,981 (1,567 ) 1,340 (14,127 ) 345,627 Balance at December 31, 2016 $ 692,314 $ (6,682 ) $ 4,967 $ (113,025 ) $ 577,574 Reclassifications out of Accumulated Other Comprehensive Income are presented below for each of the years 2014 through 2016 . Reclassification Adjustments Year Ended December 31, Component Line Item 2016 2015 2014 Affected line items in the Unrealized gains (losses) on available for sale assets: Realized (gains) losses $ 10,285 $ 9,478 $ (23,771 ) Realized investment gains (losses) Amortization of (discount) premium (4,185 ) (6,346 ) (8,621 ) Net investment income Total before tax 6,100 3,132 (32,392 ) Tax (2,135 ) (1,096 ) 11,337 Income taxes Total after tax 3,965 2,036 (21,055 ) Pension adjustments: Amortization of prior service cost 477 377 2,113 Other operating expenses Amortization of actuarial (gain) loss 9,691 14,209 8,172 Other operating expenses Total before tax 10,168 14,586 10,285 Tax (3,559 ) (5,105 ) (3,600 ) Income taxes Total after tax 6,609 9,481 6,685 Total reclassifications (after tax) $ 10,574 $ 11,517 $ (14,370 ) |
Investments
Investments | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Portfolio Composition : A summary of fixed maturities available for sale by cost or amortized cost and estimated fair value at December 31, 2016 and 2015 is as follows: 2016: Cost or Gross Gross Fair Value (1) % of Total (2) Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 381,054 $ 895 $ (9,151 ) $ 372,798 3 States, municipalities, and political subdivisions 1,284,605 126,850 (1,327 ) 1,410,128 9 Foreign governments 21,701 1,438 (62 ) 23,077 — Corporates, by sector: Financial 2,963,584 285,037 (45,885 ) 3,202,736 21 Utilities 1,875,946 249,701 (12,604 ) 2,113,043 14 Energy 1,542,426 127,989 (44,324 ) 1,626,091 11 Other corporate sectors 5,601,136 424,021 (84,547 ) 5,940,610 39 Total corporates 11,983,092 1,086,748 (187,360 ) 12,882,480 85 Collateralized debt obligations 60,726 13,062 (10,285 ) 63,503 — Other asset-backed securities 56,410 621 (337 ) 56,694 — Redeemable preferred stocks, by sector: Financial 371,862 43,383 (7,218 ) 408,027 3 Utilities 28,600 798 (244 ) 29,154 — Total redeemable preferred stocks 400,462 44,181 (7,462 ) 437,181 3 Total fixed maturities $ 14,188,050 $ 1,273,795 $ (215,984 ) $ 15,245,861 100 (1) Amount reported in the balance sheet. (2) At fair value. 2015: Cost or Gross Gross Fair Value (1) % of Total (2) Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 368,718 $ 404 $ (14,078 ) $ 355,044 3 States, municipalities, and political subdivisions 1,296,396 131,516 (1,908 ) 1,426,004 10 Foreign governments 21,594 1,369 (163 ) 22,800 — Corporates, by sector: Financial 2,760,552 301,624 (54,881 ) 3,007,295 22 Utilities 1,981,241 223,535 (28,267 ) 2,176,509 16 Energy 1,568,392 53,776 (219,101 ) 1,403,067 10 Other corporate sectors 4,761,192 294,026 (230,911 ) 4,824,307 35 Total corporates 11,071,377 872,961 (533,160 ) 11,411,178 83 Collateralized debt obligations 63,662 16,158 (9,438 ) 70,382 1 Other asset-backed securities 18,963 668 — 19,631 — Redeemable preferred stocks, by sector: Financial 382,517 45,926 (4,781 ) 423,662 3 Utilities 28,644 731 (52 ) 29,323 — Total redeemable preferred stocks 411,161 46,657 (4,833 ) 452,985 3 Total fixed maturities $ 13,251,871 $ 1,069,733 $ (563,580 ) $ 13,758,024 100 (1) Amount reported in the balance sheet. (2) At fair value. Securities held on deposits with various state and federal regulatory authorities had a carrying value of $600 million and $555 million at December 31, 2016 and 2015, respectively. A schedule of fixed maturities by contractual maturity at December 31, 2016 is shown below on an amortized cost basis and on a fair value basis. Actual maturities could differ from contractual maturities due to call or prepayment provisions. Amortized Fair Fixed maturities available for sale: Due in one year or less $ 23,969 $ 24,573 Due from one to five years 640,903 688,509 Due from five to ten years 1,228,081 1,337,752 Due from ten to twenty years 4,278,896 4,746,466 Due after twenty years 7,897,726 8,326,907 Mortgage-backed and asset-backed securities 118,475 121,654 $ 14,188,050 $ 15,245,861 Analysis of investment operations : Year Ended December 31, 2016 2015 2014 Net investment income is summarized as follows: Fixed maturities $ 778,912 $ 747,663 $ 732,925 Policy loans 38,436 36,763 35,015 Other long-term investments 2,786 2,021 1,516 Short-term investments 447 95 75 820,581 786,542 769,531 Less investment expense (13,678 ) (12,591 ) (11,245 ) Net investment income $ 806,903 $ 773,951 $ 758,286 An analysis of realized gains (losses) from investments is as follows: Realized investment gains (losses): Fixed maturities $ (10,645 ) $ (9,479 ) $ 23,170 Other investments (38 ) 688 636 Loss on redemption on debt — — (258 ) (10,683 ) (8,791 ) 23,548 Applicable tax 3,739 3,077 (8,242 ) Realized gains (losses) from investments, net of tax $ (6,944 ) $ (5,714 ) $ 15,306 An analysis of the net change in unrealized investment gains (losses) is as follows: Fixed maturities $ 551,658 $ (1,163,295 ) $ 1,279,190 Other investments 2,143 (2,737 ) 3,872 Net change in unrealized gains (losses) $ 553,801 $ (1,166,032 ) $ 1,283,062 Additional information about securities sold is as follows: At December 31, 2016 2015 2014 Fixed maturities: Proceeds from sales (1) $ 358,285 $ 226,792 $ 109,024 Gross realized gains 6,133 259 17,583 Gross realized losses (32,608 ) (16,894 ) (1,879 ) (1) Includes unsettled sales of $18 million at December 31, 2016 . Fair value measurements : The following tables represent the fair value of fixed maturities measured on a recurring basis at December 31, 2016 and 2015 : Fair Value Measurements at December 31, 2016 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: U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 372,798 $ — $ 372,798 States, municipalities, and political subdivisions 45,302 1,364,826 — 1,410,128 Foreign governments — 23,077 — 23,077 Corporates, by sector: Financial — 3,141,611 61,125 3,202,736 Utilities — 1,959,143 153,900 2,113,043 Energy — 1,598,976 27,115 1,626,091 Other corporate sectors — 5,623,150 317,460 5,940,610 Total corporates — 12,322,880 559,600 12,882,480 Collateralized debt obligations — — 63,503 63,503 Other asset-backed securities — 56,694 — 56,694 Redeemable preferred stocks, by sector: Financial — 408,027 — 408,027 Utilities — 29,154 — 29,154 Total redeemable preferred stocks — 437,181 — 437,181 Total fixed maturities $ 45,302 $ 14,577,456 $ 623,103 $ 15,245,861 Percentage of total 0.3 % 95.6 % 4.1 % 100.0 % Fair Value Measurements at December 31, 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: U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 355,044 $ — $ 355,044 States, municipalities, and political subdivisions — 1,426,004 — 1,426,004 Foreign governments — 22,800 — 22,800 Corporates, by sector: Financial — 2,945,048 62,247 3,007,295 Utilities 22,189 2,020,268 134,052 2,176,509 Energy — 1,377,861 25,206 1,403,067 Other corporate sectors — 4,515,006 309,301 4,824,307 Total corporates 22,189 10,858,183 530,806 11,411,178 Collateralized debt obligations — — 70,382 70,382 Other asset-backed securities — 19,631 — 19,631 Redeemable preferred stocks, by sector: Financial 10,124 413,538 — 423,662 Utilities — 29,323 — 29,323 Total redeemable preferred stocks 10,124 442,861 — 452,985 Total fixed maturities $ 32,313 $ 13,124,523 $ 601,188 $ 13,758,024 Percentage of total 0.2 % 95.4 % 4.4 % 100.0 % The following table represents changes in fixed maturities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Collateralized debt Obligations Corporates Total Balance at January 1, 2014 $ 58,205 $ 300,300 $ 358,505 Total gains or losses: Included in realized gains/losses 15,924 1 15,925 Included in other comprehensive income 3,323 27,864 31,187 Acquisitions — 186,366 186,366 Sales (16,049 ) (1 ) (16,050 ) Amortization 5,519 13 5,532 Other (1) (3,690 ) (1,829 ) (5,519 ) Transfers into (out of) Level 3 — — — Balance at December 31, 2014 63,232 512,714 575,946 Total gains or losses: Included in realized gains/losses — 1,182 1,182 Included in other comprehensive income 11,365 (11,925 ) (560 ) Acquisitions — 38,600 38,600 Sales — — — Amortization 5,536 17 5,553 Other (1) (9,751 ) (9,782 ) (19,533 ) Transfers into (out of) Level 3 — — — Balance at December 31, 2015 70,382 530,806 601,188 Total gains or losses: Included in realized gains/losses — 788 788 Included in other comprehensive income (3,943 ) 6,403 2,460 Acquisitions — 33,662 33,662 Sales — — — Amortization 5,186 17 5,203 Other (1) (8,122 ) (12,076 ) (20,198 ) Transfers into (out of) Level 3 — — — Balance at December 31, 2016 $ 63,503 $ 559,600 $ 623,103 (1) Includes foreign exchange adjustments and principal repayments. Acquisitions of Level 3 investments in each of the years 2014 through 2016 are comprised of private-placement fixed maturities managed by an unaffiliated third-party. See Note 1—Significant Accounting Policies for more information on private placements. Quantitative Information about Level 3 Fair Value Measurements As of December 31, 2016 Fair Value Valuation Unobservable Range Weighted Collateralized debt obligations $ 63,503 Discounted cash flows Discount 9.3 - 10.45% 10.3% Private placement fixed maturities 559,600 Determination of credit spread Credit A+ to B BBB Discounted cash flows Discount 2.82 - 6.55% 4.17% $ 623,103 The collateral underlying collateralized debt obligations for which fair values are reported as Level 3 consists primarily of trust preferred securities issued by banks and insurance companies. Collateralized debt obligations are valued at the present value of expected future cash flows using an unobservable discount rate. Expected cash flows are determined by scheduling the projected repayment of the collateral assuming no future defaults, deferrals, or recoveries. The discount rate is risk-adjusted to take these items into account. A significant increase (decrease) in the discount rate will produce a significant decrease (increase) in fair value. Additionally, a significant increase (decrease) in the cash flow expectations would result in a significant increase (decrease) in fair value. The private placement fixed maturities are valued based on the contractual cash flows discounted by a yield determined as a treasury benchmark adjusted for a credit spread. The credit spread is developed from observable indices for similar public fixed maturities and unobservable indices for private fixed maturities for corresponding credit ratings. However, the credit ratings for the private placements are considered unobservable inputs, as they are assigned by the third party investment manager based on a quantitative and qualitative assessment of the credit underwritten. A higher (lower) credit rating would result in a higher (lower) valuation. For more information regarding valuation procedures, please refer to Note 1—Significant Accounting Policies under the caption Fair Value Measurements, Investments in Securities . The following table presents transfers in and out of each of the valuation levels of fair values. 2016 2015 2014 In Out Net In Out Net In Out Net Level 1 $ 45,344 $ — $ 45,344 $ 17,252 $ (49,744 ) $ (32,492 ) $ 36,468 $ — $ 36,468 Level 2 — (45,344 ) (45,344 ) 49,744 (17,252 ) 32,492 — (36,468 ) (36,468 ) Level 3 — — — — — — — — — Transfers into Level 2 from Level 3 result from the availability of observable market data when a security is valued at the end of a period. Transfers into Level 3 occur when there is a lack of observable market information. Transfers into Level 1 from Level 2 occur when direct quotes are available; transfers from Level 1 into Level 2 result when only observable market data and no direct quotes are available. Transfers between levels are recognized as of the end of the period of transfer. Other-than-temporary impairments (OTTI) : Based on the Company's evaluation of its fixed maturities in an unrealized loss position in accordance with the OTTI policy as described in Note 1—Significant Accounting Policies , the Company concluded that there were no other-than-temporary impairments during the three years ended December 31, 2016 . As of year end 2016 , previously written down securities remaining in the portfolio were carried at a fair value of $54 million , or less than 0.4% of the fair value of the fixed maturity portfolio. Torchmark is continuously monitoring the market conditions impacting its portfolio. While adverse market conditions for an extended duration could lead to some ratings downgrades in certain sectors, Torchmark has the ability and intent to hold these investments to recovery, and does not intend to sell or expect to be required to sell any of its securities in such a position. Unrealized gains/loss analysis : The following tables disclose gross unrealized investment losses by class and major sector of investments at December 31, 2016 and December 31, 2015 for the respective periods of time in a loss position. Torchmark considers these investments to be only temporarily impaired. ANALYSIS OF GROSS UNREALIZED INVESTMENT LOSSES At December 31, 2016 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 securities: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 321,133 $ (8,553 ) $ 1,404 $ (598 ) $ 322,537 $ (9,151 ) States, municipalities and political subdivisions 32,178 (1,114 ) 683 (19 ) 32,861 (1,133 ) Foreign governments 4,416 (62 ) — — 4,416 (62 ) Corporates, by sector: Financial 479,669 (18,666 ) 64,335 (4,627 ) 544,004 (23,293 ) Utilities 290,732 (11,000 ) 16,977 (1,604 ) 307,709 (12,604 ) Energy 83,064 (1,076 ) 154,908 (18,127 ) 237,972 (19,203 ) Metals and mining 5,936 (231 ) 5,789 (187 ) 11,725 (418 ) Other corporate sectors 1,564,273 (65,131 ) 68,968 (6,495 ) 1,633,241 (71,626 ) Total corporates 2,423,674 (96,104 ) 310,977 (31,040 ) 2,734,651 (127,144 ) Other asset-backed securities 41,498 (337 ) — — 41,498 (337 ) Redeemable preferred stocks, by sector: Utilities 5,857 (244 ) — — 5,857 (244 ) Total redeemable preferred stocks 5,857 (244 ) — — 5,857 (244 ) Total investment grade securities 2,828,756 (106,414 ) 313,064 (31,657 ) 3,141,820 (138,071 ) Below investment grade securities: States, municipalities and political subdivisions — — 357 (194 ) 357 (194 ) Corporates, by sector: — — Financial — — 83,174 (22,592 ) 83,174 (22,592 ) Energy 15,567 (385 ) 91,165 (24,736 ) 106,732 (25,121 ) Metals and mining 32,478 (172 ) 34,463 (2,023 ) 66,941 (2,195 ) Other corporate sectors 51,640 (291 ) 95,679 (10,017 ) 147,319 (10,308 ) Total corporates 99,685 (848 ) 304,481 (59,368 ) 404,166 (60,216 ) Collateralized debt obligations — — 9,714 (10,285 ) 9,714 (10,285 ) Redeemable preferred stocks, by sector: Financial — — 19,912 (7,218 ) 19,912 (7,218 ) Total redeemable preferred stocks — — 19,912 (7,218 ) 19,912 (7,218 ) Total below investment grade securities 99,685 (848 ) 334,464 (77,065 ) 434,149 (77,913 ) Total fixed maturities $ 2,928,441 $ (107,262 ) $ 647,528 $ (108,722 ) $ 3,575,969 $ (215,984 ) ANALYSIS OF GROSS UNREALIZED INVESTMENT LOSSES At December 31, 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 securities: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 310,676 $ (13,196 ) $ 14,731 $ (882 ) $ 325,407 $ (14,078 ) States, municipalities and political subdivisions 55,351 (1,611 ) 671 (42 ) 56,022 (1,653 ) Foreign governments 7,302 (163 ) — — 7,302 (163 ) Corporates, by sector: Financial 476,469 (18,599 ) — — 476,469 (18,599 ) Utilities 435,692 (28,267 ) — — 435,692 (28,267 ) Energy 745,969 (146,157 ) 81,681 (41,412 ) 827,650 (187,569 ) Metals and mining 225,273 (50,857 ) 25,831 (11,552 ) 251,104 (62,409 ) Other corporate sectors 1,615,515 (113,185 ) 35,684 (6,661 ) 1,651,199 (119,846 ) Total corporates 3,498,918 (357,065 ) 143,196 (59,625 ) 3,642,114 (416,690 ) Redeemable preferred stocks, by sector: Utilities 7,763 (52 ) — — 7,763 (52 ) Total redeemable preferred stocks 7,763 (52 ) — — 7,763 (52 ) Total investment grade securities 3,880,010 (372,087 ) 158,598 (60,549 ) 4,038,608 (432,636 ) Below investment grade securities: States, municipalities and political subdivisions — — 299 (255 ) 299 (255 ) Corporates, by sector: Financial — — 69,506 (36,282 ) 69,506 (36,282 ) Energy 7,979 (1,854 ) 61,175 (29,678 ) 69,154 (31,532 ) Metals and mining 4,551 (5,414 ) 17,679 (22,247 ) 22,230 (27,661 ) Other corporate sectors 81,368 (12,492 ) 63,307 (8,503 ) 144,675 (20,995 ) Total corporates 93,898 (19,760 ) 211,667 (96,710 ) 305,565 (116,470 ) Collateralized debt obligations — — 10,562 (9,438 ) 10,562 (9,438 ) Redeemable preferred stocks, by sector: Financial — — 22,374 (4,781 ) 22,374 (4,781 ) Total redeemable preferred stocks — — 22,374 (4,781 ) 22,374 (4,781 ) Total below investment grade securities 93,898 (19,760 ) 244,902 (111,184 ) 338,800 (130,944 ) Total fixed maturities $ 3,973,908 $ (391,847 ) $ 403,500 $ (171,733 ) $ 4,377,408 $ (563,580 ) Gross unrealized losses decreased from $564 million at year end 2015 to $216 million at year end 2016 , a decrease of $348 million . The decrease in the gross unrealized losses from prior year was primarily attributable to the improved conditions during 2016 in the energy and metals and mining sectors. Additional information about investments in an unrealized loss position is as follows: Less than Twelve Total Number of issues (CUSIP numbers) held: As of December 31, 2016 407 94 501 As of December 31, 2015 480 75 555 Torchmark’s entire fixed maturity portfolio consisted of 1,565 issues at December 31, 2016 and 2015 . The weighted-average quality rating of all unrealized loss positions at amortized cost was BBB+ for both 2016 and 2015 . Other investment information : Other long-term investments consist of the following: Year Ended December 31, 2016 2015 Investment in limited partnerships $ 51,509 $ 31,409 Low-income housing interests — 3,767 Other 2,343 3,262 Total $ 53,852 $ 38,438 Torchmark did not have any invested assets that were non-income producing during the twelve months ended December 31, 2016 . Concentrations of Credit Risk : Torchmark maintains a diversified investment portfolio with limited concentration in any given issuer. At December 31, 2016 , the investment portfolio, at fair value, consisted of the following: Investment grade fixed maturities: Corporate securities 80 % Securities of state and municipal governments 9 Government-sponsored enterprises 2 Other 1 Below investment grade fixed maturities: Corporate securities 4 Other — Policy loans, which are secured by the underlying insurance policy values 3 Other investments 1 100 % As of December 31, 2016 , securities of state and municipal governments represented 9% of invested assets at fair value. Such investments are made throughout the U.S. At year end 2016 , the state and municipal bond portfolio at fair value was invested in securities issued within the following states: Texas ( 30% ), Ohio ( 7% ), Washington ( 7% ), Illinois ( 6% ), and Alabama ( 5% ). Otherwise, there was no concentration within any given state greater than 5% . Corporate debt securities and redeemable preferred stocks represent 84% of Torchmark's investment portfolio. These investments are spread across a wide range of industries. Below are the ten largest industry concentrations held in the corporate portfolio of corporate debt securities and redeemable preferred stocks at December 31, 2016 , based on fair value: Insurance 17 % Electric utilities 12 Oil and natural gas pipelines 6 Banks 6 Oil and natural gas exploration and production 4 Transportation 4 Chemicals 4 Metals and mining 3 Food 3 Real estate investment trusts 3 At year end 2016 , 4% of invested assets at fair value were represented by fixed maturities rated below investment grade. Par value of these investments was $834 million , amortized cost was $751 million , and fair value was $695 million . While these investments could be subject to additional credit risk, such risk should generally be reflected in their fair value. |
Deferred Acquisition Costs
Deferred Acquisition Costs | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Deferred Acquisition Costs | Deferred Acquisition Costs An analysis of deferred acquisition costs is as follows: Year Ended December 31, 2016 2015 2014 Balance at beginning of year $ 3,617,135 $ 3,457,397 $ 3,325,433 Additions: Deferred during period: Commissions 436,252 401,166 358,969 Other expenses 199,066 211,015 203,276 Total deferred 635,318 612,181 562,245 Foreign exchange adjustment 2,180 — — Adjustment attributable to unrealized investment losses (1) — 8,682 — Total additions 637,498 620,863 562,245 Deductions: Amortized during period (469,063 ) (445,625 ) (415,914 ) Foreign exchange adjustment — (15,500 ) (8,167 ) Adjustment attributable to unrealized investment gains (1) (2,412 ) — (6,200 ) Total deductions (471,475 ) (461,125 ) (430,281 ) Balance at end of year $ 3,783,158 $ 3,617,135 $ 3,457,397 (1) Represents amounts pertaining to investments relating to universal life-type products. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations At December 31, 2015, Torchmark met the criteria to account for its Medicare Part D Prescription Drug Plan business as a discontinued operation. Historically, the business was a reportable segment. Effective July 1, 2016, Torchmark sold its Medicare Part D Prescription Drug Plan business to an unaffiliated third party. Management believes this sale allows the Company to better focus on its core protection life and health insurance businesses, as well as provides additional capital to invest. The initial sale price was based on the number of enrollees as of the end of the second quarter 2016 and will be adjusted based on the number of enrollees as of January 1, 2017 as determined by the Center for Medicare Services (CMS) in March 2017. Estimated ultimate net proceeds from the sale resulted in a gain of $1.8 million ( $1.2 million , net of tax). The deferred acquisition costs write-off of $16.4 million and the contingent sale price reserve of $3.6 million are included in the net gain calculation. The gain is recognized in income from discontinued operations as of December 31, 2016 . Torchmark retained certain assets and liabilities related to the Medicare Part D business including all corresponding profits or losses for the 2016 plan year. The buyer assumed the rights and obligations related to the business for all subsequent plan years. To facilitate a seamless transition, Torchmark administered the plans for the duration of 2016. The remaining assets and liabilities reflected on the Torchmark balance sheet related to discontinued operations are receivables and payables primarily associated with 2016 plan year that are expected to be settled in the ordinary course of business during 2017 and 2018. The net assets related to discontinued operations at December 31, 2016 and 2015 were as follows: At December 31, 2016 2015 Assets: Due premiums $ 8,840 $ 8,041 Other receivables (1) 118,692 287,765 Deferred acquisition costs — 17,037 Total assets related to discontinued operations 127,532 312,843 Liabilities: Unearned and advance premiums 67 806 Policy claims and other benefits payable 10,868 12,309 Risk sharing payable 8,374 23,837 Current and deferred income taxes payable 3,820 13,604 Other (2) 4,295 479 Total liabilities related to discontinued operations 27,424 51,035 Net assets $ 100,108 $ 261,808 (1) At December 31, 2016 , other receivables included $50 million from CMS and $69 million from drug manufacturer rebates. At December 31, 2015 , the comparable amounts were $193 million and $95 million , respectively. (2) Balance includes $3.6 million contingent sale price reserve for the year ended December 31, 2016 . Income from discontinued operations for the three years ended December 31, 2016 is as follows: Year Ended December 31, 2016 2015 2014 Revenue: Health premium $ 222,840 $ 260,657 $ 373,280 Benefits and expenses: Health policyholder benefits 183,423 213,114 315,816 Amortization of deferred acquisition costs 3,747 3,506 2,858 Commissions, premium taxes, and non-deferred acquisition expenses 16,396 20,909 26,613 Other operating expense 5,377 6,502 5,123 Total benefits and expenses 208,943 244,031 350,410 Income before income taxes for discontinued operations 13,897 16,626 22,870 Gain from sale of discontinued operations 1,779 — — Income taxes (5,487 ) (5,819 ) (8,005 ) Income from discontinued operations $ 10,189 $ 10,807 $ 14,865 Income taxes paid related to discontinued operations for the three years ended December 31, 2016 were as follows: Year Ended December 31, 2016 2015 2014 Income taxes paid $ 15,271 $ 3,409 $ 12,013 |
Liability for Unpaid Claims
Liability for Unpaid Claims | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Liability for Unpaid Claims | Liability for Unpaid Claims Activity in the liability for unpaid health claims is summarized as follows: Year Ended December 31, 2016 2015 2014 Balance at beginning of year $ 137,120 $ 128,265 $ 116,559 Incurred related to: Current year 510,075 502,009 453,014 Prior years (1,127 ) (7,845 ) 804 Total incurred 508,948 494,164 453,818 Paid related to: Current year 386,278 379,037 343,648 Prior years 116,662 106,272 98,464 Total paid 502,940 485,309 442,112 Balance at end of year $ 143,128 $ 137,120 $ 128,265 At the end of each period, the liability for unpaid health claims includes an estimate of claims incurred but not yet reported to the Company. Such estimates are updated regularly based upon the Company’s most recent claims data with recognition of emerging experience trends. Because of the nature of the Company’s health business, the payment lags are relatively short and most claims are fully paid within a year from the time incurred. Fluctuations in claims experience can lead to either over or under estimation of the liability for any given year. The difference between the estimate made at the end of the prior period and the actual experience during the period is reflected above under the caption “Incurred related to: Prior years.” The liability for unpaid health claims is included with “Policy claims and other benefits payable” in the Consolidated Balance Sheets . Short-Duration Contracts Although Torchmark primarily sells long-duration contracts for both life and health, the Company also has a limited amount of group health products that qualify as short-duration contracts in accordance with the applicable guidance. The below table illustrates the total incurred claims for short-duration products over the last five years. Claim frequency is determined by duration and incurred date. For the years ended December 31, As of December 31, 2016 Cumulative incurred claims (1) Total of incurred-but-not-reported liabilities plus expected development on reported claims Cumulative number of reported claims (1) Accident Year 2012 2013 2014 2015 2016 2012 $ 84,975 $ 83,965 $ 83,928 $ 83,906 $ 83,906 $ — 1,357 2013 84,111 82,644 83,151 83,119 — 1,337 2014 101,407 99,876 99,810 19 1,600 2015 141,667 141,460 478 2,222 2016 140,944 26,224 1,863 Total $ 549,239 $ 26,721 (1) The incurred claims and cumulative number of reported claims for all years prior to 2016 are unaudited. This table illustrates the total cumulative paid claims and allocated claims for short-duration products over the last five years: Cumulative paid claims (1) For the years ended December 31, Accident Year 2012 2013 2014 2015 2016 2012 $ 68,742 $ 83,766 $ 83,919 $ 83,906 $ 83,906 2013 68,159 82,408 83,131 83,119 2014 81,054 99,545 99,791 2015 115,922 140,982 2016 114,720 Total 522,518 Short-duration claim liability as of December 31, 2016 26,721 Total incurred claims & IBNR $ 549,239 (1) The cumulative paid claims for all years prior to 2016 are unaudited. Below is the reconciliation of the net incurred and paid claims development tables to the liability for "Policy claims and other benefits payable" in the Consolidated Balance Sheets . December 31, 2016 Policy claims and other benefits payable: Short-duration products $ 26,721 Insurance lines other than short duration—health 116,407 Insurance lines other than short duration—life 156,437 Total policy claims and other benefits payable $ 299,565 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income taxes were as follows: Year Ended December 31, 2016 2015 2014 Income tax expense from continuing operations (1) $ 232,645 $ 249,894 $ 256,603 Shareholders’ equity: Other comprehensive income (loss) 186,206 (411,646 ) 424,089 Tax basis compensation expense (from the exercise of stock options and vesting of restricted stock awards) in excess of amounts recognized for financial reporting purposes (1) — (17,577 ) (18,524 ) $ 418,851 $ (179,329 ) $ 662,168 (1) Due to the adoption of ASU 2016-09, the excess tax benefits related to share-based awards are now recorded through income tax expense rather than additional paid in capital as described in Note 1—Significant Accounting Policies under "Stock Compensation." Income tax expense from continuing operations consists of: Year Ended December 31, 2016 2015 2014 Current income tax expense $ 132,806 $ 174,284 $ 169,319 Deferred income tax expense 99,839 75,610 87,284 $ 232,645 $ 249,894 $ 256,603 In each of the years 2014 through 2016 , deferred income tax expense was incurred because of certain differences between net income before income taxes as reported on the Consolidated Statements of Operations and taxable income as reported on Torchmark’s income tax returns. As explained in Note 1—Significant Accounting Policies , these differences caused the financial statement book values of some assets and liabilities to be different from their respective tax bases. The effective income tax rate differed from the expected 35% rate as shown below: Year Ended December 31, 2016 % 2015 % 2014 % Expected income taxes $ 270,282 35.0 $ 268,165 35.0 $ 274,637 35.0 Increase (reduction) in income taxes resulting from: Low income housing investments (18,202 ) (2.4 ) (19,031 ) (2.5 ) (17,541 ) (2.2 ) Share-based awards (18,653 ) (2.4 ) — — — — Other (782 ) (0.1 ) 760 0.1 (493 ) — Income tax expense from continuing operations $ 232,645 30.1 $ 249,894 32.6 $ 256,603 32.8 The effective income tax rates for the year ended December 31, 2016 differed from the effective income tax rates for 2015 and 2014 primarily as a result of the Company adopting ASU 2016-09 as of January 1, 2016. As a result of the adoption, the excess tax benefits related to share-based awards are now recorded through income tax expense rather than additional paid-in capital. See Note 1—Significant Accounting Policies for further discussion. The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: December 31, 2016 2015 Deferred tax assets: Fixed maturity investments $ 15,004 $ 16,098 Carryover of tax losses 3,906 2,266 Total gross deferred tax assets 18,910 18,364 Deferred tax liabilities: Unrealized gains 315,509 128,683 Employee and agent compensation 92,131 83,229 Deferred acquisition costs 975,873 921,799 Future policy benefits, unearned and advance premiums, and policy claims 391,451 340,854 Other liabilities 3,987 17,176 Total gross deferred tax liabilities 1,778,951 1,491,741 Net deferred tax liability $ 1,760,041 $ 1,473,377 Torchmark and its subsidiaries, excluding Family Heritage Life Insurance Company (Family Heritage), file a life-nonlife consolidated federal income tax return. Family Heritage files its federal income tax return on a separate company basis. Torchmark’s consolidated federal income tax returns are routinely audited by the Internal Revenue Service (IRS). The IRS completed its examination of Torchmark’s 2008-2011 consolidated income tax returns during 2014 resulting in no impact on the Company’s effective tax rate. The statutes of limitations for the assessment of additional tax are closed for all tax years prior to 2013 with respect to Torchmark’s consolidated and Family Heritage’s federal income tax returns. Management believes that adequate provision has been made in the consolidated financial statements for any potential assessments that may result from current or future tax examinations and other tax-related matters for all open years. Torchmark has net operating loss carryforwards of approximately $11.2 million at December 31, 2016 which will begin to expire in 2032 if not otherwise used to offset future taxable income. A valuation allowance is to be provided when it is more likely than not that deferred tax assets will not be realized by the Company. No valuation allowance has been recorded relating to Torchmark’s deferred tax assets as management believes Torchmark will more likely than not have sufficient taxable income in future periods to fully realize its existing deferred tax assets. Torchmark’s tax liability is adjusted to include a provision for uncertain tax positions taken or expected to be taken in a tax return. However, during the years 2014 through 2016 , Torchmark did not have any uncertain tax positions which resulted in unrecognized tax benefits. Torchmark’s continuing practice is to recognize interest and penalties related to income tax matters in income tax expense. The Company recognized interest income of $9 thousand , $11 thousand , and $465 thousand , net of federal income tax expense, in its Consolidated Statements of Operations for 2016 , 2015 , and 2014 , respectively. The Company had no accrued interest or penalties at December 31, 2016 or 2015 . |
Postretirement Benefits
Postretirement Benefits | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Postretirement Benefits | Postretirement Benefits Torchmark has qualified noncontributory defined benefit pension plans and contributory savings plans which cover substantially all employees. There are also two nonqualified noncontributory supplemental benefit pension plans (SERPs) which cover a limited number of employees. The total cost of these retirement plans charged to operations was as follows: Year Ended December 31, Defined (1) Defined (2) 2016 $ 3,614 $ 24,202 2015 3,429 29,230 2014 3,078 23,463 (1) 401K plans (2) Qualified pension plans and SERPs Torchmark accrues expense for the defined contribution plans based on a percentage of the employees’ contributions. The plans are funded by the employee contributions and a Torchmark contribution equal to the amount of accrued expense. Plan contributions are both mandatory and discretionary, depending on the terms of the plan. Pension Plans : Cost for the defined benefit pension plans has been calculated on the projected unit credit actuarial cost method. All plan measurements for the defined benefit plans are as of December 31 of the respective year. The defined benefit pension plans covering the majority of employees are qualified and funded. Contributions are made to funded pension plans subject to minimums required by regulation and maximums allowed for tax purposes. Defined benefit plan contributions were $15.8 million in 2016 , $15.5 million in 2015 , and $14.6 million in 2014 . Torchmark estimates as of December 31, 2016 that it will contribute an amount not to exceed $20 million to these plans in 2017 . The actual amount of contribution may be different from this estimate. Torchmark has two SERPs, one of which is active and provides to a limited number of executives an additional supplemental defined pension benefit. The supplemental benefit is based on the participant’s qualified plan benefit without consideration to the regulatory limits on compensation and benefit payments applicable to qualified plans, except that eligible compensation is capped at $1 million . This SERP is nonqualified and unfunded. However, a Rabbi Trust has been established to support the liability for this plan. This trust consists of life insurance policies on the lives of plan participants with an unaffiliated insurance carrier as well as an investment account. The following table includes activity for the active SERP for the three years ended December 31, 2016 . Year Ended December 31, 2016 2015 2014 Premiums paid for insurance coverage $ 2,050 $ 10,068 $ 2,150 December 31, 2016 2015 Total investments of this SERP: Company owned life insurance $ 37,267 $ 34,178 Exchange Traded Funds (1) 48,999 45,014 $ 86,266 $ 79,192 Liability for this SERP $ 74,687 $ 67,243 (1) There were no deposits in 2016 , 2015 or 2014 . Because this plan is nonqualified, the investments and the policyholder value of the insurance policies in the Rabbi Trust are not included as defined benefit plan assets, but rather assets of the Company. They are included in “Other Assets” in the Consolidated Balance Sheets . The second supplemental benefit pension plan is limited to a very select group of employees and was closed as of December 31, 1994. It provides the full benefits that an employee would have otherwise received from a defined benefit plan in the absence of the limitation on benefits payable under a qualified plan. This plan is also nonqualified and unfunded. Liability for this closed plan was $3 million at December 31, 2016 and December 31, 2015 . Pension cost for both supplemental defined benefit plans is determined in the same manner as for the qualified defined benefit plans. Plan assets in the funded plans consist primarily of investments in marketable fixed maturities and equity securities and are valued at fair value. Torchmark measures the fair value of its financial assets, including the assets in its benefit plans, in accordance with accounting guidance which establishes a hierarchy for asset values and provides a methodology for the measurement of value. Please refer to Note 1—Significant Accounting Policies under the caption Fair Value Measurements , Investments in Securities for a complete discussion of valuation procedures. The following table presents the assets of Torchmark’s defined benefit pension plans for the years ended December 31, 2016 and 2015 . Pension Assets by Component at December 31, 2016 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Amount % to Total Corporate bonds: Financial $ $ 41,578 $ $ 41,578 13 Utilities 43,890 43,890 13 Energy 25,427 25,427 8 Other corporates 49,141 49,141 15 Total corporate bonds — 160,036 — 160,036 49 Exchange traded fund (1) 134,771 134,771 41 Other bonds 258 258 — Guaranteed annuity contract (2) 18,997 18,997 6 Short-term investments 7,391 7,391 2 Other 7,418 7,418 2 Grand Total $ 149,580 $ 179,291 $ — $ 328,871 100 (1) A fund including marketable securities that mirror the S&P 500 index. (2) Representing a guaranteed annuity contract issued by Torchmark's subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Pension Plan. Pension Assets by Component at December 31, 2015 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Amount % to Total Equity securities: Financial $ 49,391 $ $ $ 49,391 16 Consumer, Cyclical 24,264 24,264 8 Technology 19,871 19,871 6 Consumer, Non-Cyclical 12,216 12,216 4 Industrial 15,176 15,176 5 Other 2,502 8 2,510 1 Total equity securities 123,420 8 — 123,428 40 Corporate bonds: Financial 36,266 36,266 12 Utilities 43,229 43,229 14 Energy 25,890 25,890 8 Other corporates 40,996 40,996 13 Total corporate bonds — 146,381 — 146,381 47 Other bonds 270 270 — Guaranteed annuity contract (1) 17,082 17,082 6 Short-term investments 15,593 15,593 5 Other 4,842 4,842 2 Grand Total $ 143,855 $ 163,741 $ — $ 307,596 100 (1) Representing a guaranteed annuity contract issued by Torchmark's subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Pension Plan. Torchmark’s investment objectives for its plan assets include preservation of capital, preservation of purchasing power, and long-term growth. Torchmark seeks to preserve capital through investments made in high quality securities with adequate diversification by issuer and industry sector to minimize risk. The portfolio is monitored continuously for changes in quality and diversification mix. The preservation of purchasing power is intended to be accomplished through asset growth, exclusive of contributions and withdrawals, in excess of the rate of inflation. Torchmark intends to maintain investments that when combined with future plan contributions will produce adequate long-term growth to provide for all plan obligations. It is also Torchmark’s objective that the portfolio’s investment return will meet or exceed the return of a balanced market index. The majority of the securities in the portfolio are highly marketable so that there will be adequate liquidity to meet projected payments. There are no specific policies calling for asset durations to match those of benefit obligations. Allowed investments are limited to equities, fixed maturities, and short-term investments (invested cash). The assets are to be invested in a mix of equity and fixed income investments that best serve the objectives of the pension plan. Factors to be considered in determining the asset mix include funded status, annual pension expense, annual pension contributions, and balance sheet liability. Equities can include common and preferred stocks, securities convertible into equities, mutual funds and exchange traded funds that invest in equities, and other equity-related investments. Equities are listed on major exchanges and adequate market liquidity is required. Fixed maturities consist of marketable debt securities rated investment grade at purchase by a major rating agency. Short-term investments include fixed maturities with maturities less than one year and invested cash. Short-term investments in commercial paper must be rated at least A-2 by Standard & Poor’s with the issuer rated investment grade. Invested cash is limited to banks rated A or higher. Investments outside of the aforementioned list are not permitted, except by prior approval of the Plan’s Trustees. The investment portfolio is to be well diversified to avoid undue exposure to a single sector, industry, business, or security. The equity and fixed maturity portfolios are not permitted to invest in any single issuer that would exceed 10% of total plan assets at the time of purchase. Torchmark does not employ any other special risk management techniques, such as derivatives, in managing the pension investment portfolio. As of December 31, 2016 , Torchmark sold all equity securities in various sectors and replaced them with an exchange traded fund that mirrors the S&P 500 index to better align with a passive approach rather than an actively managed portfolio. At December 31, 2016 , there were no restricted investments contained in the portfolio. Plan contributions have been invested primarily in fixed maturity and equity securities during the three years ended December 31, 2016 . The following table discloses the assumptions used to determine Torchmark’s pension liabilities and costs for the appropriate periods. The discount and compensation increase rates are used to determine current year projected benefit obligations and subsequent year pension expense. The long-term rate of return is used to determine current year expense. Differences between assumptions and actual experience are included in actuarial gain or loss. Weighted Average Pension Plan Assumptions For Benefit Obligations at December 31: 2016 2015 Discount Rate 4.27 % 4.64 % Rate of Compensation Increase 4.31 4.33 For Periodic Benefit Cost for the Year: 2016 2015 2014 Discount Rate 4.64 % 4.23 % 5.12 % Expected Long-Term Returns 7.19 6.96 6.97 Rate of Compensation Increase 4.33 4.35 4.35 The discount rate is determined based on the expected duration of plan liabilities. A yield is then derived based on the current market yield of a hypothetical portfolio of higher-quality corporate bonds which match the liability duration. The rate of compensation increase is projected based on Company experience, modified as appropriate for future expectations. The expected long-term rate of return on plan assets is management’s best estimate of the average rate of earnings expected to be received on the assets invested in the plan over the benefit period. In determining this assumption, consideration is given to the historical rate of return earned on the assets, the projected returns over future periods, and the discount rate used to compute benefit obligations. Net periodic pension cost for the defined benefit plans by expense component was as follows: Year Ended December 31, 2016 2015 2014 Service cost—benefits earned during the period $ 15,502 $ 15,902 $ 12,925 Interest cost on projected benefit obligation 21,631 19,887 19,270 Expected return on assets (23,127 ) (21,204 ) (19,031 ) Net amortization 10,135 14,465 10,283 Recognition of actuarial loss 61 180 16 Net periodic pension cost $ 24,202 $ 29,230 $ 23,463 An analysis of the impact on other comprehensive income (loss) concerning pensions and other postretirement benefits is as follows: Year Ended December 31, 2016 2015 2014 Balance at January 1 $ (152,149 ) $ (152,999 ) $ (97,467 ) Amortization of: Prior service cost 477 377 2,113 Net actuarial (gain) loss (1) 9,691 14,209 8,172 Total amortization 10,168 14,586 10,285 Plan amendments — (2,104 ) — Experience gain (loss) (31,902 ) (11,632 ) (65,817 ) Balance at December 31 $ (173,883 ) $ (152,149 ) $ (152,999 ) (1) Includes amortization of postretirement benefits other than pensions of $33 thousand in 2016 , $120 thousand in 2015 , and $2 thousand in 2014 . The following table presents a reconciliation from the beginning to the end of the year of the projected benefit obligation and plan assets for pensions. This table also presents the amounts previously recognized as a component of accumulated other comprehensive income. Pension Benefits Year Ended December 31, 2016 2015 Changes in benefit obligation: Obligation at beginning of year $ 476,581 $ 477,426 Service cost 15,502 15,902 Interest cost 21,631 19,887 Plan amendments — 2,104 Actuarial loss (gain) 34,667 (19,226 ) Benefits paid (20,859 ) (19,512 ) Obligation at end of year 527,522 476,581 Changes in plan assets: Fair value at beginning of year 307,596 322,898 Return on assets 26,377 (11,333 ) Contributions 15,757 15,543 Benefits paid (20,859 ) (19,512 ) Fair value at end of year 328,871 307,596 Funded status at year end $ (198,651 ) $ (168,985 ) Amounts recognized in accumulated other comprehensive income consist of: Net loss (gain) $ 167,313 $ 145,623 Prior service cost 4,611 5,088 Net amounts recognized at year end $ 171,924 $ 150,711 The portion of other comprehensive income that is expected to be reflected in pension expense in 2017 is as follows: Amortization of prior service cost $ 476 Amortization of net actuarial loss 11,806 Total $ 12,282 The accumulated benefit obligation (ABO) for Torchmark’s funded defined benefit pension plans was $411 million and $371 million at December 31, 2016 and 2015 , respectively. In the nonqualified plans, the ABO was $69 million at December 31, 2016 and $63 million at 2015 . Torchmark has estimated its expected pension benefits to be paid over the next ten years as of December 31, 2016 . These estimates use the same assumptions that measure the benefit obligation at December 31, 2015 , taking estimated future employee service into account. Those estimated benefits are as follows: For the year(s) 2017 $ 19,839 2018 21,198 2019 22,516 2020 24,109 2021 25,678 2022-2025 152,071 Postretirement Benefit Plans Other Than Pensions : Torchmark provides a small postretirement life insurance benefit for most retired employees, and also provides additional postretirement life insurance benefits for certain key employees. The majority of the life insurance benefits are accrued over the working lives of active employees. Otherwise, Torchmark does not provide postretirement benefits other than pensions and the life insurance benefits described above. Torchmark’s postretirement defined benefit plans other than pensions are not funded. Liabilities for these plans are measured as of December 31 for the appropriate year. The components of net periodic postretirement benefit cost for plans other than pensions are as follows: Year Ended December 31, 2016 2015 2014 Service cost $ — $ — $ — Interest cost on benefit obligation 1,139 1,075 646 Expected return on plan assets — — — Net amortization 33 120 2 Recognition of net actuarial (gain) loss (132 ) 367 (256 ) Net periodic postretirement benefit cost $ 1,040 $ 1,562 $ 392 The following table presents a reconciliation of the benefit obligation and plan assets from the beginning to the end of the year. As these plans are unfunded, funded status is equivalent to the accrued benefit liability. Benefits Other Than Pensions Year Ended December 31, 2016 2015 Changes in benefit obligation: Obligation at beginning of year $ 22,479 $ 22,895 Service cost — — Interest cost 1,139 1,075 Actuarial loss (gain) 412 (1,133 ) Benefits paid (309 ) (358 ) Obligation at end of year 23,721 22,479 Changes in plan assets: Fair value at beginning of year — — Return on assets — — Contributions 309 358 Benefits paid (309 ) (358 ) Fair value at end of year — — Funded status at year end $ (23,721 ) $ (22,479 ) Amounts recognized in accumulated other comprehensive income: Net loss (1) $ 1,959 $ 1,447 Net amounts recognized at year end $ 1,959 $ 1,447 (1) The net loss for benefit plans other than pensions reduces other comprehensive income. The table below presents the assumptions used to determine the liabilities and costs of Torchmark’s postretirement benefit plans other than pensions. Weighted Average Assumptions for Postretirement Benefit Plans Other Than Pensions For Benefit Obligations at December 31: 2016 2015 Discount Rate 4.29 % 4.66 % For Periodic Benefit Cost for the Year: 2016 2015 2014 Discount Rate 4.66 % 4.23 % 5.12 % Estimated Future Payments for Post-Retirement Benefit Plans Other Than Pensions For the year(s) 2017 $ 1,014 2018 1,133 2019 1,247 2020 1,351 2021 1,462 2022-2025 9,811 |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information The following table summarizes Torchmark’s noncash transactions, which are not reflected on the Consolidated Statements of Cash Flows: Year Ended December 31, 2016 2015 2014 Stock-based compensation not involving cash $ 26,326 $ 28,664 $ 32,203 Commitments for low-income housing interests 56,818 68,949 75,706 Exchanges of fixed maturity investments 224,901 — 17,333 Net unsettled security trades 15,020 — — The following table summarizes certain amounts paid during the period: Year Ended December 31, 2016 2015 2014 Interest paid $ 81,338 $ 74,792 $ 77,066 Income taxes paid 79,790 110,650 100,922 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table presents information about the terms and outstanding balances of Torchmark’s debt. Selected Information about Debt Issues As of December 31, 2016 2015 Annual Interest Rate Issue Date Periodic Interest Payments Due Outstanding Principal (Par Value) Outstanding Principal (Book Value) Outstanding Principal (Fair Value) Outstanding Principal (Book Value) Long-term debt: Notes, due 5/15/23 (3,5) 7.875 % 5/93 5/15 & 11/15 $ 165,612 $ 164,095 $ 196,496 $ 163,920 Senior Notes, due 6/15/19 (3,7) 9.250 % 6/09 6/15 & 12/15 292,647 291,424 338,363 291,002 Senior Notes, due 9/15/22 (3,7) 3.800 % 9/12 3/15 & 9/15 150,000 148,189 152,777 147,913 Junior Subordinated Debentures due 12/15/52 (4,8,11) 5.875 % 9/12 quarterly 125,000 120,929 124,378 120,898 Junior Subordinated Debentures due 3/15/36 (4,6,11) 4.263 % (12) (10) quarterly 20,000 20,000 20,000 20,000 Junior Subordinated Debentures due 6/15/56 (4,9) 6.125 % 4/16 quarterly 300,000 290,403 302,880 — Term loan due 5/17/21 (1,6) 1.856 % (13) 6/16 monthly 100,000 100,000 100,000 — 1,153,259 1,135,040 1,234,894 743,733 Less current maturity of term loan 1,875 1,875 1,875 — Total long-term debt 1,151,384 1,133,165 1,233,019 743,733 Short-term debt: Senior Notes, due 6/15/16 6.375 % 6/06 6/15 & 12/15 — — — 249,753 Current maturity of term loan 1,875 1,875 1,875 — Commercial paper (2) 262,850 262,600 262,600 240,376 Total short-term debt 264,725 264,475 264,475 490,129 Total debt $ 1,416,109 $ 1,397,640 $ 1,497,494 $ 1,233,862 (1) The term loan has higher priority than all other debt issues. (2) Commercial paper has priority over all other debt except the term loan. (3) All securities, other than the term loan, commercial paper and Junior Subordinated Debentures have equal priority with one another. (4) All Junior Subordinated Debentures have equal priority, but are subordinate to all other issues. (5) Not callable. (6) Callable anytime. (7) Callable subject to “make-whole” premium. (8) Callable as of December 15, 2017. (9) Callable subject to “make-whole” premium until June 15, 2021 and at par on and any time after June 15, 2021. (10) Assumed upon November 1, 2012 acquisition of Family Heritage. (11) Quarterly payments on the 15th of March, June, September, and December. (12) Interest paid at 3 Month LIBOR plus 330 basis points, resets each quarter. (13) Interest paid at 1 Month LIBOR plus 125 basis points, resets each month. Contractual Debt Obligations : The following table presents expected scheduled principal payments under our contractual debt obligations: Year Ended December 31, 2017 2018 2019 2020 2021 Thereafter Debt obligations $ 264,725 $ 4,375 $ 299,522 $ 9,375 $ 77,500 $ 760,612 Funded debt : O n April 5, 2016, Torchmark completed the issuance and sale of $300 million in aggregate principal of Torchmark’s 6.125% Junior Subordinated Debentures due 2056. The debentures were sold pursuant to Torchmark’s shelf registration statement on Form S-3, filed September 25, 2015. The net proceeds from the sale of the debentures were $290 million , after giving effect to the underwriting discount and expenses of the offering of the debentures. Torchmark used the net proceeds from the offering of the debentures to repay the $250 million outstanding principal, plus accrued interest of $8 million , on the 6.375% Senior Notes that were due June 15, 2016. The remaining proceeds were used for general corporate purposes. Credit Facility : On May 17, 2016, Torchmark amended its credit facility to include, as a part of the facility, the issuance of a $100 million term loan and to extend the maturity date of the entire credit facility to May 2021. The facility is further designated as a back-up credit line for a commercial paper program under which the Company may either borrow from the credit line or issue commercial paper at any time, with total commercial paper outstanding not to exceed the facility maximum of $750 million , less any letters of credit issued. Interest is charged at variable rates. The term loan will be repaid on a redemption schedule which provides for quarterly installments beginning June 30, 2017 that escalate each annual period with a balloon payment of $75 million due in May 2021. Interest on the term loan is computed and paid monthly at 125 basis points plus 1 Month LIBOR. In accordance with the agreement, Torchmark is subject to certain covenants regarding capitalization. As of December 31, 2016 , the Company was in full compliance with these covenants. Commercial paper outstanding and any amortization payments of the term loan due within one year are reported as short-term debt on the Consolidated Balance Sheets . A table presenting selected information concerning Torchmark’s commercial paper borrowings is presented below. Credit Facility - Commercial Paper At December 31, 2016 2015 Balance at end of period (at par value) $ 262,850 $ 240,544 Annualized interest rate 0.96 % 0.55 % Letters of credit outstanding $ 177,000 $ 177,000 Remaining amount available under credit line 310,150 332,456 Year Ended December 31, 2016 2015 2014 Average balance outstanding during period $ 301,550 $ 350,851 $ 296,246 Daily-weighted average interest rate (annualized) 0.83 % 0.43 % 0.26 % Maximum daily amount outstanding during period $ 412,676 $ 458,110 $ 343,000 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Share Data: A summary of preferred and common share activity is presented in the following chart. Preferred Stock Common Stock Issued Treasury Stock Issued Treasury Stock 2014: Balance at January 1, 2014 — — 151,218,183 (16,965,802 ) Grants of restricted stock 19,041 Forfeitures of restricted stock (2,700 ) Issuance of common stock due to exercise of stock options 2,210,349 Treasury stock acquired (8,548,795 ) Retirement of treasury stock (17,000,000 ) 17,000,000 Balance at December 31, 2014 — — 134,218,183 (6,287,907 ) 2015: Grants of restricted stock 6,648 Forfeitures of restricted stock (13,950 ) Vesting of performance shares 211,287 Issuance of common stock due to exercise of stock options 1,576,485 Treasury stock acquired (7,340,794 ) Retirement of treasury stock (4,000,000 ) 4,000,000 Balance at December 31, 2015 — — 130,218,183 (7,848,231 ) 2016: Grants of restricted stock 12,549 Vesting of performance shares 159,020 Issuance of common stock due to exercise of stock options 2,184,169 Treasury stock acquired (6,694,582 ) Retirement of treasury stock (3,000,000 ) 3,000,000 Balance at December 31, 2016 — — 127,218,183 (9,187,075 ) Acquisition of Common Shares : Torchmark shares are acquired from time to time through open market purchases under the Torchmark stock repurchase program when it is believed to be the best use of Torchmark’s excess cash flows. Share repurchases under this program were 5.2 million shares at a cost of $311 million in 2016 , 6.3 million shares at a cost of $359 million in 2015 , and 7.2 million shares at a cost of $375 million in 2014 . When stock options are exercised, proceeds from the exercises are generally used to repurchase approximately the number of shares available with those funds in order to reduce dilution. Shares repurchased for dilution purposes were 1.5 million shares at a cost of $93 million in 2016 , 1.0 million shares at a cost of $60 million in 2015 , and 1.4 million shares at a cost of $74 million in 2014 . Retirement of Treasury Stock : Torchmark retired 3.0 million shares of treasury stock in 2016 , 4.0 million in 2015 , and 17.0 million in 2014 . Restrictions : Restrictions exist on the flow of funds to Torchmark from its insurance subsidiaries. Statutory regulations require life insurance subsidiaries to maintain certain minimum amounts of capital and surplus. Dividends from insurance subsidiaries of Torchmark are restricted based on regulations by their state of domicile . Additionally, insurance company distributions are generally not permitted in excess of statutory surplus. Subsidiaries are also subject to certain minimum capital requirements. Subsidiaries of Torchmark paid cash dividends to the Parent Company in the amount of $438 million in 2016 , $466 million in 2015 , and $479 million in 2014 . As of December 31, 2016 , dividends and transfers from insurance subsidiaries to parent available to be paid in 2017 are limited to the amount of $262 million without regulatory approval, such that $1.1 billion was considered restricted net assets of the subsidiaries. Dividends exceeding these limitations may be available during the year pending regulatory approval. While there are no legal restrictions on the payment of dividends to shareholders from Torchmark’s retained earnings, retained earnings as of December 31, 2016 were restricted by lenders’ covenants which require the Company to maintain and not distribute $2.6 billion from its total consolidated retained earnings of $3.9 billion . Earnings Per Share : A reconciliation of basic and diluted weighted-average shares outstanding used in the computation of basic and diluted earnings per share is as follows: Year Ended December 31, 2016 2015 2014 Basic weighted average shares outstanding 120,001,191 125,094,628 130,721,738 Weighted average dilutive options outstanding 2,366,594 1,662,607 1,918,506 Diluted weighted average shares outstanding 122,367,785 126,757,235 132,640,244 There were no anti-dilutive shares as of December 31, 2016 , 2015 , or 2014 . Income available to common shareholders for basic earnings per share is equivalent to income available to common shareholders for diluted earnings per share. As discussed earlier in Note 1—Significant Accounting Policies , the Company adopted ASU 2016-09 on January 1, 2016. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Torchmark’s stock-based compensation consists of stock options, restricted stock, restricted stock units, and performance shares. Certain employees and directors have been granted fixed equity options to buy shares of Torchmark stock at the market value of the stock on the date of grant, under the provisions of the Torchmark stock option plans. The options are exercisable during the period commencing from the date they vest until expiring according to the terms of the grant. Options generally expire the earlier of employee termination or option contract term, which ranges from seven to ten years. Options generally vest in accordance with the following schedule: Shares vested by period Contract Period 6 Months Year 1 Year 2 Year 3 Year 4 Year 5 Directors 7 years 100% Employees 7 years —% —% 50% 50% Employees (1) 10 years —% —% 25% 25% 25% 25% (1) Grant offered through the Torchmark Corporation 2011 Incentive Plan only. All employee options vest immediately upon retirement on or after the attainment of age 65, upon death, or disability. Torchmark generally issues shares for the exercise of stock options from treasury stock. The Company generally uses the proceeds from option exercises to buy shares of Torchmark common stock in the open market to reduce the dilution from option exercises. During 2014, shareholders approved an amendment to the 2011 Incentive Plan allowing for an additional 6.3 million shares available for grant. An analysis of shares available for grant is as follows: Available for Grant 2016 2015 2014 Balance at January 1, 6,872,282 8,458,593 4,368,753 2011 Plan amendment — — 6,300,000 Options expired and forfeited during year (1) 8,518 90,371 3,488 Restricted stock expired and forfeited during year (2) — 89,745 31,620 Options granted during year (1) (1,306,306 ) (1,334,514 ) (1,523,982 ) Restricted stock, restricted stock units, and performance shares granted under the Torchmark Corporation 2011 Incentive Plan (2) (486,033 ) (431,913 ) (721,286 ) Balance at December 31, 5,088,461 6,872,282 8,458,593 (1) Plan allows for grant of options such that each grant reduces shares available for grant in a range from 0.85 share to 1 share. (2) Plan allows for grant of restricted stock such that each stock grant reduces shares available for grant in a range from 3.1 shares to 3.88 shares. A summary of stock compensation activity for each of the three years ended December 31, 2016 is presented below: 2016 2015 2014 Stock-based compensation expense recognized (1) $ 26,326 $ 28,664 $ 32,203 Tax benefit recognized (2) 27,867 10,033 11,271 (1) No stock-based compensation expense was capitalized in any period. (2) Due to the adoption of ASU 2016-09 as described in Note 1—Significant Accounting Policies under "Accounting Pronouncements Adopted in the Current Year" , certain current year balances related to excess tax benefits from stock compensation were adjusted prospectively. Additional stock compensation information is as follows at December 31: 2016 2015 Unrecognized compensation (1) $ 27,334 $ 33,977 Weighted average period of expected recognition (in years) (1) 0.89 0.85 (1) Includes restricted stock and performance shares. No equity awards were cash settled during the three years ended December 31, 2016 . Options: The following table summarizes information about stock options outstanding at December 31, 2016 . Options Outstanding Options Exercisable Range of Number Outstanding Weighted- Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Number Exercisable Weighted- Average Exercise Price $20.58 - $32.48 1,549,010 2.23 $ 30.01 1,470,267 $ 29.99 37.40 - 43.06 1,111,634 3.53 37.67 998,713 37.70 50.64 1,412,225 7.41 50.64 — — 50.69 1,406,282 4.63 50.69 604,802 50.69 51.62 - 56.32 1,494,440 5.65 53.64 42,065 54.79 $20.58 - $56.32 6,973,591 4.70 $ 44.64 3,115,847 $ 36.81 An analysis of option activity for each of the three years ended December 31, 2016 is as follows: 2016 2015 2014 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding-beginning of year 7,734,841 $ 38.84 7,889,321 $ 32.91 8,579,202 $ 27.84 Granted: 7-year term 834,212 50.78 1,220,751 53.62 1,226,270 50.70 10-year term 597,225 50.64 296,875 53.61 297,712 50.69 Exercised (2,184,169 ) 28.08 (1,576,485 ) 22.81 (2,210,348 ) 25.47 Expired and forfeited (8,518 ) 39.35 (95,621 ) 48.85 (3,488 ) 40.05 Adjustment due to 7/1/14 stock split — — — — (27 ) — Outstanding-end of year 6,973,591 $ 44.64 7,734,841 $ 38.84 7,889,321 $ 32.91 Exercisable at end of year 3,115,847 $ 36.81 3,774,061 $ 29.37 3,809,415 $ 24.58 Additional information about Torchmark’s stock option activity as of December 31, 2016 and 2015 is as follows: 2016 2015 Outstanding options: Weighted-average remaining contractual term (in years) 4.70 4.32 Aggregate intrinsic value $ 87,286 $ 141,728 Exercisable options: Weighted-average remaining contractual term (in years) 2.96 2.74 Aggregate intrinsic value $ 63,395 $ 104,885 Selected stock option activity for the three years ended December 31, 2016 is presented below: 2016 2015 2014 Weighted-average grant-date fair value of options granted $ 9.04 $ 11.97 $ 14.77 Intrinsic value of options exercised 73,995 54,854 61,229 Cash received from options exercised 61,329 35,958 56,294 Actual tax benefit received 25,898 24,470 23,232 Additional information concerning Torchmark’s unvested options is as follows at December 31: 2016 2015 Number of shares outstanding 3,857,744 3,960,780 Weighted-average exercise price (per share) $ 50.97 $ 47.86 Weighted-average remaining contractual term (in years) 6.11 5.82 Aggregate intrinsic value $ 23,891 $ 36,843 Torchmark expects that substantially all unvested options will vest. Restricted Stock: Restricted stock grants consist of time-vested grants, restricted stock units, and performance shares. Time-vested restricted stock is available to both senior executives and directors. The employee grants generally vest over five years and the director grants vest over six months. Restricted stock units are available only to directors. They vest over six months and are not converted to shares until the directors’ retirement, death, or disability. Director restricted stock and restricted stock units are generally granted on the first work day of the year. Performance shares are granted to a limited number of senior executives. Performance shares have a three year contract life and are not settled in shares until the termination of the three -year contract period. While the grant specifies a stated target number of shares, the determination of the actual settlement in shares will be based on the achievement of certain performance objectives of Torchmark over the respective three -year contract periods. Certain executive restricted stock and performance share grants contain terms related to age that could accelerate vesting. Restricted stock units outstanding at each of the year ends 2016 , 2015 , and 2014 were 112,591 , 105,679 , and 98,039 , respectively. All restricted stock units were fully vested at the end of each year of grant. Below is the final determination of the performance share grants in 2012 to 2014: Year of grants Final settlement of shares Final settlement date 2012 211,287 January 27, 2015 2013 159,020 February 24, 2016 2014 119,896 February 21, 2017 For the 2015 and 2016 performance share grants, actual shares that could be distributed range from 0 to 353 thousand for the 2015 grants and 0 to 335 thousand shares for the 2016 grants. A summary of restricted stock grants for each of the years in the three-year period ended December 31, 2016 is presented in the table below. 2016 2015 2014 Executives restricted stock: Shares — — 12,000 Price per share $ — $ — $ 50.69 Aggregate value $ — $ — $ 608 Percent vested as of 12/31/16 — % — % — % Directors restricted stock: Shares 12,549 6,648 7,041 Price per share $ 57.39 $ 54.16 $ 51.62 Aggregate value $ 720 $ 360 $ 363 Percent vested as of 12/31/16 85 % 100 % 100 % Directors restricted stock units (including dividend equivalents): Shares 6,912 7,640 12,322 Price per share $ 56.74 $ 54.44 $ 51.69 Aggregate value $ 392 $ 416 $ 637 Percent vested as of 12/31/16 100 % 100 % 100 % Performance shares: Target shares 167,500 179,500 179,250 Target price per share $ 50.64 $ 53.61 $ 51.41 Assumed adjustment for performance objectives (in shares) (35,073 ) (58,056 ) 22,060 Aggregate value $ 8,482 $ 9,623 $ 9,215 Percent vested as of 12/31/16 — % — % — % Time-vested restricted stock holders, both employees and directors, are entitled to dividend payments on the unvested stock. Restricted stock unit holders are entitled to dividend equivalents. These equivalents are granted in the form of additional restricted stock units and vest immediately upon grant. Dividend equivalents are applicable only to restricted stock units. Performance shareholders are not entitled to dividend equivalents and are not entitled to dividend payments until the shares are vested and settled. An analysis of unvested restricted stock is as follows: Executive Executive Directors Directors Total 2014: Balance at January 1, 2014 344,445 362,550 — — 706,995 Grants 12,000 179,250 7,041 12,322 210,613 Additional performance shares (1) 22,060 22,060 Restriction lapses and settlements (90,315 ) (7,041 ) (12,322 ) (109,678 ) Forfeitures (2,700 ) (7,500 ) (10,200 ) Balance at December 31, 2014 263,430 556,360 — — 819,790 2015: Grants — 179,500 6,648 7,640 193,788 Additional performance shares (1) (58,056 ) (58,056 ) Restriction lapses (61,815 ) (211,287 ) (6,648 ) (7,640 ) (287,390 ) Forfeitures (13,950 ) (7,500 ) (21,450 ) Balance at December 31, 2015 187,665 459,017 — — 646,682 2016: Grants — 167,500 12,549 6,912 186,961 Additional performance shares (1) (35,073 ) (35,073 ) Restriction lapses (130,215 ) (159,020 ) (10,655 ) (6,912 ) (306,802 ) Forfeitures — — — Balance at December 31, 2016 57,450 432,424 1,894 — 491,768 (1) Estimated additional (reduced) share grants expected due to achievement of performance criteria. An analysis of the weighted-average grant-date fair values per share of unvested restricted stock is as follows for the year 2016 : Executive Restricted Stock Executive Performance Shares Directors Restricted Stock Directors Restricted Stock Units Grant-date fair value per share at January 1, 2016 $ 32.92 $ 46.77 Grants — 50.64 $ 57.39 $ 56.32 Estimated additional performance shares (70.47 ) Restriction lapses (30.47 ) (37.40 ) (56.32 ) (56.32 ) Forfeitures — — Grant-date fair value per share at December 31, 2016 38.46 49.79 63.39 |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Torchmark’s reportable segments are based on the insurance product lines it markets and administers: life insurance, health insurance, and annuities. These major product lines are set out as reportable segments because of the common characteristics of products within these categories, comparability of margins, and the similarity in regulatory environment and management techniques. There is also an investment segment which manages the investment portfolio, debt, and cash flow for the insurance segments and the corporate function. Torchmark's chief operating decision makers evaluate the overall performance of the operations of the Company in accordance with these segments. Life insurance products include traditional and interest-sensitive whole life insurance as well as term life insurance. Health insurance products are generally guaranteed-renewable and include Medicare Supplement, critical illness, accident, and limited-benefit supplemental hospital and surgical coverages. Annuities include fixed-benefit contracts. Torchmark markets its insurance products through a number of distribution channels, each of which sells the products of one or more of Torchmark’s insurance segments. The tables below present segment premium revenue by each of Torchmark’s marketing groups. Torchmark Corporation Premium Income by Distribution Channel For the Year 2016 Life Health Annuity Total Distribution Channel Amount % of Total Amount % of Total Amount % of Total Amount % of Total United American Independent $ 13,733 1 $ 355,015 38 $ 38 100 $ 368,786 12 Liberty National Exclusive 270,476 12 201,798 21 472,274 15 American Income Exclusive 913,355 42 84,382 9 997,737 32 Family Heritage Exclusive 2,866 — 236,075 25 238,941 8 Direct Response 782,765 36 70,393 7 853,158 27 Other 206,138 9 206,138 6 $ 2,189,333 100 $ 947,663 100 $ 38 100 $ 3,137,034 100 For the Year 2015 Life Health Annuity Total Distribution Channel Amount % of Total Amount % of Total Amount % of Total Amount % of Total United American Independent $ 15,036 1 $ 345,330 37 $ 135 100 $ 360,501 12 Liberty National Exclusive 271,113 13 209,150 23 480,263 16 American Income Exclusive 830,903 40 80,339 9 911,242 30 Family Heritage Exclusive 2,334 — 221,091 24 223,425 8 Direct Response 746,693 36 69,610 7 816,303 27 Other 206,986 10 206,986 7 $ 2,073,065 100 $ 925,520 100 $ 135 100 $ 2,998,720 100 For the Year 2014 Life Health Annuity Total Distribution Channel Amount % of Total Amount % of Total Amount % of Total Amount % of Total United American Independent $ 16,582 1 $ 305,368 35 $ 400 100 $ 322,350 11 Liberty National Exclusive 272,265 14 222,017 25 494,282 18 American Income Exclusive 766,458 39 78,722 9 845,180 30 Family Heritage Exclusive 1,595 — 204,667 24 206,262 7 Direct Response 702,023 36 58,666 7 760,689 27 Other 207,377 10 207,377 7 $ 1,966,300 100 $ 869,440 100 $ 400 100 $ 2,836,140 100 Due to the nature of the life insurance industry, Torchmark has no individual or group which would be considered a major customer. Substantially all of Torchmark’s business is conducted in the United States. The measure of profitability established by the chief operating decision makers for insurance segments is underwriting margin before other income and administrative expenses, in accordance with the manner the segments are managed. It essentially represents gross profit margin on insurance products before insurance administrative expenses and consists of premium, less net policy obligations, acquisition expenses, and commissions. Interest credited to net policy liabilities (reserves less deferred acquisition costs) is reflected as a component of the Investment segment in order to match this cost to the investment earnings from the assets supporting the net policy liabilities. The measure of profitability for the Investment segment is excess investment income, which represents the income earned on the investment portfolio in excess of net policy requirements and financing costs associated with Torchmark’s debt. Other than the above-mentioned interest allocations and an intersegment commission, there are no other intersegment revenues or expenses. Expenses directly attributable to corporate operations are included in the “Corporate” category. Stock-based compensation expense is considered a corporate expense by Torchmark management and is included in this category. All other unallocated revenues and expenses on a pretax basis, including insurance administrative expense, are included in the “Other” segment category. Torchmark holds a sizeable investment portfolio to support its insurance liabilities, the yield from which is used to offset policy benefit, acquisition, administrative and tax expenses. This yield or investment income is taken into account when establishing premium rates and profitability expectations of its insurance products. In holding such a portfolio, investments are sold, called, or written down from time to time, resulting in a realized gain or loss. These gains or losses generally occur as a result of disposition due to issuer calls, compliance with Company investment policies, or other reasons often beyond management’s control. Unlike investment income, realized gains and losses are incidental to insurance operations, and only overall yields are considered when setting premium rates or insurance product profitability expectations. While these gains and losses are not relevant to segment profitability or core operating results, they can have a material positive or negative result on net income. For these reasons, management removes realized investment gains and losses when it views its segment operations. In 2016, Torchmark recorded $3.8 million in administrative settlements ( $2.5 million after tax) related to benefits paid for deaths occurring in prior years where claims had not been filed. These administrative settlements were included in “Policyholder benefits” in the Consolidated Statements of Operations in 2016. In 2015, Torchmark recorded $1.4 million in administrative settlements ( $906 thousand after tax) related to a post closing adjustment on the sale of a former subsidiary. These administrative settlements were included in "Commissions, premium taxes, and non-deferred acquisition costs" in the Consolidated Statements of Operations in 2015 . During 2014, Torchmark accrued for certain litigation matters 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 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 included in “Policyholder benefits” in the Consolidated Statements of Operations in 2014. Management removes items that are related to prior periods when evaluating the operating results of current periods. Management also removes non-operating items unrelated to its core insurance activities when evaluating those results. Therefore, these items are excluded in its presentation of segment results, because accounting guidance requires that operating segment results be presented as management views its business. With the exception of the administrative settlements noted in the paragraphs above, all of these items are included in “Other operating expense” in the Consolidated Statements of Operations for the appropriate year. The following tables set forth a reconciliation of Torchmark’s revenues and operations by segment to its major income statement line items. See Note 1—Significant Accounting Policies for additional information concerning reconciling items of segment profits to pretax income. For the year 2016 Life Health Annuity Investment Other Corporate Adjustments Consolidated Revenue: Premium $ 2,189,333 $ 947,663 $ 38 $ 3,137,034 Net investment income $ 806,903 806,903 Other income $ 1,534 $ (159 ) (2) 1,375 Total revenue 2,189,333 947,663 38 806,903 1,534 (159 ) 3,945,312 Expenses: Policy benefits 1,475,477 612,725 36,751 3,795 (3) 2,128,748 Required interest on: Policy reserves (577,827 ) (73,382 ) (51,131 ) 702,340 — Deferred acquisition costs 178,946 23,060 807 (202,813 ) — Amortization of acquisition costs 374,499 90,385 4,179 469,063 Commissions, premium taxes, and non-deferred acquisition costs 164,476 84,819 38 (159 ) (2) 249,174 Insurance administrative expense (1) 196,598 553 (4) 197,151 Parent expense $ 8,587 8,587 Stock-based compensation expense 26,326 26,326 Interest expense 83,345 83,345 Total expenses 1,615,571 737,607 (9,356 ) 582,872 196,598 34,913 4,189 3,162,394 Subtotal 573,762 210,056 9,394 224,031 (195,064 ) (34,913 ) (4,348 ) 782,918 Non-operating items 4,348 (3,4) 4,348 Measure of segment profitability (pretax) $ 573,762 $ 210,056 $ 9,394 $ 224,031 $ (195,064 ) $ (34,913 ) $ — 787,266 Deduct applicable income taxes (237,906 ) Net operating income from continuing operations 549,360 Add back income taxes applicable to segment profitability 237,906 Add (deduct) realized investment gains (losses) (10,683 ) Deduct administrative settlements (3) (3,795 ) Deduct non-operating fees (4) (553 ) Income before income taxes per Consolidated Statement of Operations $ 772,235 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. (3) Administrative settlements. (4) Non-operating fees. For the year 2015 Life Health Annuity Investment Other Corporate Adjustments Consolidated Revenue: Premium $ 2,073,065 $ 925,520 $ 135 $ 2,998,720 Net investment income $ 773,951 773,951 Other income $ 2,379 $ (194 ) (2) 2,185 Total revenue 2,073,065 925,520 135 773,951 2,379 (194 ) 3,774,856 Expenses: Policy benefits 1,374,608 602,610 38,994 2,016,212 Required interest on: Policy reserves (552,298 ) (69,057 ) (53,295 ) 674,650 — Deferred acquisition costs 172,947 22,760 1,138 (196,845 ) — Amortization of acquisition costs 353,595 83,341 8,689 445,625 Commissions, premium taxes, and non-deferred acquisition costs 154,811 81,489 41 1,200 (2,3) 237,541 Insurance administrative expense (1) 186,191 186,191 Parent expense $ 9,003 9,003 Stock-based compensation expense 28,664 28,664 Interest expense 76,642 76,642 Total expenses 1,503,663 721,143 (4,433 ) 554,447 186,191 37,667 1,200 2,999,878 Subtotal 569,402 204,377 4,568 219,504 (183,812 ) (37,667 ) (1,394 ) 774,978 Non-operating items 1,394 (3) 1,394 Measure of segment profitability (pretax) $ 569,402 $ 204,377 $ 4,568 $ 219,504 $ (183,812 ) $ (37,667 ) $ — 776,372 Deduct applicable income taxes (253,459 ) Net operating income from continuing operations 522,913 Add back income taxes applicable to segment profitability 253,459 Add (deduct) realized investment gains (losses) (8,791 ) Deduct administrative settlements (3) (1,394 ) Income before income taxes per Consolidated Statement of Operations $ 766,187 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. (3) Administrative settlements. For the Year 2014 Life Health Annuity Investment Other Corporate Adjustments Consolidated Revenue: Premium $ 1,966,300 $ 869,440 $ 400 $ 2,836,140 Net investment income $ 758,286 758,286 Other income $ 2,354 $ (233 ) (2) 2,121 Total revenue 1,966,300 869,440 400 758,286 2,354 (233 ) 3,596,547 Expenses: Policy benefits 1,293,384 559,817 42,005 8,178 (4) 1,903,384 Required interest on: Policy reserves (530,192 ) (64,401 ) (55,255 ) 649,848 — Deferred acquisition costs 168,100 22,499 1,453 (192,052 ) — Amortization of acquisition costs 335,345 72,731 7,838 415,914 Commissions, premium taxes, and non-deferred acquisition costs 143,174 79,475 47 (233 ) (2) 222,463 Insurance administrative expense (1) 174,832 2,422 (3) 177,254 Parent expense $ 8,159 (85 ) (3) 8,074 Stock-based compensation expense 32,203 32,203 Interest expense 76,126 76,126 Total expenses 1,409,811 670,121 (3,912 ) 533,922 174,832 40,362 10,282 2,835,418 Subtotal 556,489 199,319 4,312 224,364 (172,478 ) (40,362 ) (10,515 ) 761,129 Non-operating items 10,515 (3,4) 10,515 Measure of segment profitability (pretax) $ 556,489 $ 199,319 $ 4,312 $ 224,364 $ (172,478 ) $ (40,362 ) $ — 771,644 Deduct applicable income taxes (252,041 ) Net operating income from continuing operations 519,603 Add back income taxes applicable to segment profitability 252,041 Add (deduct) realized investment gains (losses) 23,548 Deduct legal settlement expenses (3) (2,337 ) Deduct administrative settlements (4) (8,178 ) Income before income taxes per Consolidated Statement of Operations $ 784,677 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. (3) Legal settlement expenses. (4) Administrative settlements. The following table summarizes the measures of segment profitability as determined in the three preceding tables for comparison with prior periods. The table also reconciles segment profits to net income. Analysis of Profitability by Segment 2016 2015 2014 2016 % 2015 % Life insurance underwriting margin $ 573,762 $ 569,402 $ 556,489 $ 4,360 1 $ 12,913 2 Health insurance underwriting margin 210,056 204,377 199,319 5,679 3 5,058 3 Annuity underwriting margin 9,394 4,568 4,312 4,826 106 256 6 Excess investment income 224,031 219,504 224,364 4,527 2 (4,860 ) (2 ) Other insurance: Other income 1,534 2,379 2,354 (845 ) (36 ) 25 1 Administrative expense (196,598 ) (186,191 ) (174,832 ) (10,407 ) 6 (11,359 ) 6 Corporate and adjustments (34,913 ) (37,667 ) (40,362 ) 2,754 (7 ) 2,695 (7 ) Pre-tax total 787,266 776,372 771,644 10,894 1 4,728 1 Applicable taxes (1) (237,906 ) (253,459 ) (252,041 ) 15,553 (6 ) (1,418 ) 1 Net operating income from continuing operations 549,360 522,913 519,603 26,447 5 3,310 1 Discontinued operations (after tax) (2) 10,189 10,807 14,865 (618 ) (6 ) (4,058 ) (27 ) Total 559,549 533,720 534,468 25,829 5 (748 ) — Realized gains (losses)—investments (after tax) (6,944 ) (5,714 ) 15,306 (1,230 ) (21,020 ) Legal settlement expenses (after tax) — — (1,519 ) — 1,519 Administrative settlements (after tax) (2,467 ) (906 ) (5,316 ) (1,561 ) 4,410 Non-operating fees (after tax) (359 ) — — (359 ) — Net income $ 549,779 $ 527,100 $ 542,939 $ 22,679 4 $ (15,839 ) (3 ) (1) Certain current year amounts were prospectively adjusted to give effect to the adoption of ASU 2016-09 related to excess tax benefits from stock compensation as described in Note 1—Significant Accounting Policies under "Accounting Pronouncements Adopted in the Current Year." (2) Income from discontinued operations (after tax) is included for purposes of reconciling to net income. Assets for each segment are reported based on a specific identification basis. The insurance segments’ assets contain deferred acquisition costs (including the value of insurance purchased). The investment segment includes the investment portfolio, cash, and accrued investment income. Goodwill is assigned to the insurance segments at the time of purchase based on the excess of cost over the fair value of assets acquired for the benefit of that segment. All other assets are included in the Other category. The table below reconciles segment assets to total assets as reported in the consolidated financial statements. Assets by Segment At December 31, 2016 Life Health Annuity Investment Other Consolidated Cash and invested assets $ 15,955,891 $ 15,955,891 Accrued investment income 223,148 223,148 Deferred acquisition costs $ 3,261,220 $ 512,701 $ 9,237 3,783,158 Goodwill 309,609 131,982 441,591 Other assets $ 1,032,299 1,032,299 Total assets $ 3,570,829 $ 644,683 $ 9,237 $ 16,179,039 $ 1,032,299 $ 21,436,087 At December 31, 2015 Life Health Annuity Investment Other Consolidated Cash and invested assets $ 14,405,073 $ 14,405,073 Accrued investment income 209,915 209,915 Deferred acquisition costs $ 3,098,656 $ 502,535 $ 15,944 3,617,135 Goodwill 309,609 131,982 441,591 Other assets $ 1,179,499 1,179,499 Total assets $ 3,408,265 $ 634,517 $ 15,944 $ 14,614,988 $ 1,179,499 $ 19,853,213 Liabilities for each segment are reported also on a specific identification basis similar to the assets. The insurance segments' liabilities contain future policy benefits, unearned and advance premiums, and policy claims and other benefits payable. Other policyholders' funds are included in Other as well as current and deferred income taxes payable. Debt represents both short and long term. Liabilities by Segment At December 31, 2016 Life Health Annuity Investment Other Consolidated Future policy benefits $ 9,825,776 $ 1,706,870 $ 1,293,191 $ 12,825,837 Unearned and advance premiums 16,828 47,189 64,017 Policy claims and other benefits payable 156,437 143,128 299,565 Debt $ 1,397,640 1,397,640 Other $ 2,282,167 2,282,167 Total liabilities $ 9,999,041 $ 1,897,187 $ 1,293,191 $ 1,397,640 $ 2,282,167 $ 16,869,226 At December 31, 2015 Life Health Annuity Investment Other Consolidated Future policy benefits $ 9,327,561 $ 1,600,240 $ 1,318,010 $ 12,245,811 Unearned and advance premiums 17,381 49,640 67,021 Policy claims and other benefits payable 135,778 137,120 272,898 Debt $ 1,233,862 1,233,862 Other $ 1,978,069 1,978,069 Total liabilities $ 9,480,720 $ 1,787,000 $ 1,318,010 $ 1,233,862 $ 1,978,069 $ 15,797,661 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Reinsurance : Insurance affiliates of Torchmark reinsure that portion of insurance risk which is in excess of their retention limits. Retention limits for ordinary life insurance range up to $2 million per life. Life insurance ceded represented 0.4% of total life insurance in force at December 31, 2016 . Insurance ceded on life and accident and health products represented 0.3% of premium income for 2016 . Torchmark would be liable for the reinsured risks ceded to other companies to the extent that such reinsuring companies are unable to meet their obligations. Insurance affiliates also assume insurance risks of other companies. Life reinsurance assumed represented 1.9% of life insurance in force at December 31, 2016 and reinsurance assumed on life and accident and health products represented 0.7% of premium income for 2016 . Leases : Torchmark leases office space, office equipment, and aviation equipment under a variety of operating lease arrangements. Rental expense for operating leases for each of the three years ended December 31, 2016 is as follows: Year Ended December 31, 2016 2015 2014 Rental expense $ 6,520 $ 6,722 $ 4,200 Future minimum rental commitments required under operating leases having remaining noncancelable lease terms in excess of one year at December 31, 2016 were as follows: Year Ended December 31, 2017 2018 2019 2020 2021 Thereafter Operating lease commitments $ 8,182 $ 5,254 $ 5,047 $ 4,898 $ 4,625 $ 7,801 Low-Income Housing Tax Credit Interests : As described in Note 1—Significant Accounting Policies , Torchmark had $280 million invested in entities which provide certain tax benefits at December 31, 2016 . As of December 31, 2016 , Torchmark remained obligated under these commitments as follows: Year Ended December 31, 2017 2018 2019 2020 2021 Thereafter Low-Income housing commitments $ 34,162 $ 18,350 $ 2,964 $ 838 $ 302 $ 202 Investments : As of December 31, 2016 , Torchmark had committed to purchase $8.4 million of private placement fixed maturities managed by a third party in early 2017. Guarantees : At December 31, 2016 , Torchmark had in place four guarantee agreements, of which were either parent company guarantees of subsidiary obligations to a third party, or parent company guarantees of obligations between wholly-owned subsidiaries. As of December 31, 2016 , Torchmark had no liability with respect to these guarantees. Letters of Credit : Torchmark has guaranteed letters of credit in connection with its credit facility with a group of banks as disclosed in Note 11—Debt . The letters of credit were issued by TMK Re, Ltd., a wholly-owned subsidiary, to secure TMK Re, Ltd.’s obligation for claims on certain policies reinsured by TMK Re, Ltd. that were sold by other Torchmark insurance companies. These letters of credit facilitate TMK Re, Ltd.’s ability to reinsure the business of Torchmark’s insurance carriers. The agreement expires in 2021. The maximum amount of letters of credit available is $250 million . The Torchmark parent company would be liable to the extent that TMK Re, Ltd. does not pay the reinsured party. Letters of credit outstanding were $177 million at December 31, 2016 and 2015 . Equipment leases : Torchmark has guaranteed performance of certain subsidiaries as lessees under three leasing arrangements which include two for aviation equipment and one for computer software, furniture, and equipment. One aviation lease expires in August 2022 and the second expires in September 2024. The office equipment lease expires in December 2017. At December 31, 2016 , total remaining undiscounted payments under the leases were approximately $15 million . The Torchmark parent company would be responsible for any subsidiary obligation in the event the subsidiary did not make payments or otherwise perform under the terms of the lease. Unclaimed Property Audits : Torchmark subsidiaries are currently the subject of audits regarding the identification, reporting and escheatment of unclaimed property arising from life insurance policies and a limited number of annuity contracts. These audits are being conducted by private entities that have contracted with forty-seven states through their respective Departments of Revenue, and have not resulted in any financial assessment from any state nor indicated any liability. The audits are wide-ranging and seek large amounts of data regarding claims handling, procedures, and payments of contract benefits arising from unreported death claims. No estimate of range can be made at this time for loss contingencies related to possible administrative penalties or amounts that could be payable to the states for the escheatment of abandoned property. Litigation : Torchmark and its subsidiaries, in common with the insurance industry in general, are subject to litigation, including claims involving tax matters, alleged breaches of contract, torts, including bad faith and fraud claims based on alleged wrongful or fraudulent acts of agents of Torchmark’s subsidiaries, employment discrimination, and miscellaneous other causes of action. Based upon information presently available, and in light of legal and other factual defenses available to Torchmark and its subsidiaries, management does not believe that such litigation will have a material adverse effect on Torchmark’s financial condition, future operating results or liquidity; however, assessing the eventual outcome of litigation necessarily involves forward-looking speculation as to judgments to be made by judges, juries and appellate courts in the future. This bespeaks caution, particularly in states with reputations for high punitive damage verdicts. Torchmark’s management recognizes that large punitive damage awards bearing little or no relation to actual damages continue to be awarded by juries in jurisdictions in which Torchmark and its subsidiaries have substantial business, creating the potential for unpredictable material adverse judgments in any given punitive damage suit. As previously reported, litigation was filed on February 10, 2015 against Torchmark subsidiary, Globe Life And Accident Insurance Company in Oklahoma County, Oklahoma District Court (Proctor v. Globe Life And Accident Insurance Company, Case No. CJ-2015-838) asserting claims for breach of the implied covenants of good faith and fair dealing and for false representation, deceit and conversion in connection with Globe’s denial of plaintiff’s claim on a life insurance policy for non-payment of premium. Plaintiff, who had alleged that Globe had improperly retained 12 monthly premium payments on a policy that was treated as lapsed or not returned to in-force status, seeks actual and punitive damages, prejudgment interest, attorney fees, costs and other relief. Plaintiff subsequently amended his complaint to add allegations of conversion and civil theft on behalf of a purported class of Globe’s U.S. policyholders who had paid premiums retained by Globe when their policies were lapsed and not reinstated at the time of the premium payments. Globe removed the case to the U.S. District Court for the Western District of Oklahoma (Case No. 15-CV-0070-M) on July 10, 2015 and filed a Motion to Dismiss on July 17, 2015. The Court denied plaintiff’s Motion to Remand back to state court on October 26, 2015, but allowed the plaintiff to amend the complaint to assert a putative class action in federal court. Plaintiff filed a Motion for Class Certification on September 23, 2016. Globe filed a Response in Opposition on November 4, 2016. The Court has not yet ruled on Plaintiff’s Motion. With respect to its current litigation, at this time management believes that the possibility of a material judgment adverse to Torchmark is remote, and no estimate of range can be made for loss contingencies that are at least reasonably possible but not accrued. |
Selected Quarterly Data (Unaudi
Selected Quarterly Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Data (Unaudited) | Selected Quarterly Data (Unaudited) The following is an unaudited summary of quarterly results for the two years ended December 31, 2016 . The information includes all adjustments (consisting of normal accruals) which management considers necessary for a fair presentation of the results of operations for these periods. Three Months Ended March 31, June 30, September 30, December 31, 2016: Premium income $ 779,860 $ 785,855 $ 783,411 $ 787,908 Net investment income 197,053 201,642 202,720 205,488 Realized investment gains (losses) 293 4,005 3,482 (18,463 ) Total revenue 977,627 991,884 989,773 975,345 Policyholder benefits 524,973 531,485 532,152 540,138 Amortization of deferred acquisition costs 118,806 117,245 116,821 116,191 Pretax income from continuing operations 195,448 199,344 201,461 175,982 Income from continuing operations 133,574 139,294 141,910 124,812 Income from discontinued operations (9,541 ) (865 ) 9,959 10,636 Net income (1) 124,033 138,429 151,869 135,448 Basic net income per common share: Continuing operations 1.10 1.16 1.19 1.05 Discontinued operations (0.08 ) (0.01 ) 0.08 0.09 Total basic net income per share 1.02 1.15 1.27 1.14 Diluted net income per common share: (1) Continuing operations 1.08 1.13 1.16 1.03 Discontinued operations (0.07 ) — 0.09 0.09 Total diluted net income per share 1.01 1.13 1.25 1.12 2015: Premium income $ 742,056 $ 752,484 $ 748,109 $ 756,071 Net investment income 191,596 194,823 193,213 194,319 Realized investment gains (losses) 119 2,613 5,140 (16,663 ) Total revenue 934,440 950,611 947,154 933,860 Policyholder benefits 497,775 508,316 501,156 508,965 Amortization of deferred acquisition costs 110,660 111,738 111,643 111,584 Pretax income from continuing operations 194,477 196,723 199,009 175,978 Income from continuing operations 130,778 132,527 133,858 119,130 Income from discontinued operations (9,130 ) (5,417 ) 11,528 13,826 Net income 121,648 127,110 145,386 132,956 Basic net income per common share: Continuing operations 1.03 1.05 1.08 0.97 Discontinued operations (0.07 ) (0.04 ) 0.09 0.11 Total basic net income per share 0.96 1.01 1.17 1.08 Diluted net income per common share: Continuing operations 1.02 1.04 1.06 0.96 Discontinued operations (0.07 ) (0.04 ) 0.09 0.11 Total diluted net income per share 0.95 1.00 1.15 1.07 (1) Due to the adoption in 2016 of ASU 2016-09, certain current year balances related to excess tax benefits from stock compensation were adjusted prospectively as described in Note 1—Significant Accounting Policies under "Stock Compensation." |
Schedule II. Condensed Financia
Schedule II. Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule II. Condensed Financial Information of Registrant | TORCHMARK CORPORATION (PARENT COMPANY) SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT CONDENSED BALANCE SHEETS (Amounts in thousands) December 31, 2016 2015 Assets: Long-term investments $ 33,586 $ 35,498 Cash — — Investment in affiliates 6,004,429 5,438,749 Due from affiliates 96,005 50,765 Taxes receivable from affiliates 88,406 79,599 Other assets 119,801 93,936 Total assets $ 6,342,227 $ 5,698,547 Liabilities and shareholders’ equity: Liabilities: Short-term debt $ 264,475 $ 490,129 Long-term debt 1,282,891 893,417 Due to affiliates — 57,157 Other liabilities 228,000 202,292 Total liabilities 1,775,366 1,642,995 Shareholders’ equity: Preferred stock 351 351 Common stock 127,218 130,218 Additional paid-in capital 840,932 832,795 Accumulated other comprehensive income 577,574 231,947 Retained earnings 3,890,798 3,614,369 Treasury stock (870,012 ) (754,128 ) Total shareholders’ equity 4,566,861 4,055,552 Total liabilities and shareholders’ equity $ 6,342,227 $ 5,698,547 See Notes to Condensed Financial Statements and accompanying Report of Independent Registered Public Accounting Firm. TORCHMARK CORPORATION (PARENT COMPANY) SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued) CONDENSED STATEMENTS OF OPERATIONS (Amounts in thousands) Year Ended December 31, 2016 2015 2014 Net investment income $ 25,352 $ 23,715 $ 22,259 Realized investment gains (losses) — 8 4,767 Total revenue 25,352 23,723 27,026 General operating expenses 52,613 54,100 53,235 Reimbursements from affiliates (54,288 ) (53,436 ) (53,040 ) Interest expense 86,853 79,677 79,366 Total expenses 85,178 80,341 79,561 Operating income (loss) before income taxes and equity in earnings of affiliates (59,826 ) (56,618 ) (52,535 ) Income taxes 23,479 15,542 13,335 Net operating loss before equity in earnings of affiliates (36,347 ) (41,076 ) (39,200 ) Equity in earnings of affiliates 586,126 568,176 582,139 Net income 549,779 527,100 542,939 Other comprehensive income (loss): Attributable to Parent Company (11,314 ) (3,539 ) (28,680 ) Attributable to affiliates 356,941 (761,966 ) 815,151 Comprehensive income (loss) $ 895,406 $ (238,405 ) $ 1,329,410 See Notes to Condensed Financial Statements and accompanying Report of Independent Registered Public Accounting Firm. TORCHMARK CORPORATION (PARENT COMPANY) SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT—(continued) CONDENSED STATEMENTS OF CASH FLOWS (Amounts in thousands) Year Ended December 31, 2016 2015 2014 Net income $ 549,779 $ 527,100 $ 542,939 Equity in earnings of affiliates (586,126 ) (568,176 ) (582,139 ) Cash dividends from subsidiaries 437,566 466,416 478,840 Other, net (6,718 ) 20,371 17,842 Cash provided from operations 394,501 445,711 457,482 Cash provided from (used for) investing activities: Disposition of investments — — 5,064 Net decrease (increase) in short-term investments (3,466 ) 17,338 2,729 Investment in subsidiaries (35,000 ) (2 ) — Additions to properties (21,965 ) (468 ) — Loaned money to affiliates (363,056 ) (282,508 ) (81,000 ) Repayments from affiliates 318,056 282,508 81,000 Cash provided from (used for) investing activities (105,431 ) 16,868 7,793 Cash provided from (used for) financing activities: Repayment of debt (250,000 ) — — Proceeds from issuance of debt 400,000 — — Payment for debt issuance costs (9,638 ) — — Net issuance (repayment) of commercial paper 22,224 1,978 9,328 Issuance of stock 61,329 35,958 56,294 Acquisitions of treasury stock (404,784 ) (418,526 ) (449,309 ) Borrowed money from affiliate 60,000 15,000 168,000 Repayments to affiliates (78,000 ) (15,000 ) (168,000 ) Excess tax benefit on stock option exercises (1) — 8,180 6,688 Payment of dividends (90,201 ) (90,169 ) (88,276 ) Cash provided from (used for) financing activities (289,070 ) (462,579 ) (465,275 ) Net increase (decrease) in cash — — — Cash balance at beginning of period — — — Cash balance at end of period $ — $ — $ — (1) Certain current year amounts were prospectively adjusted to give effect to the adoption of ASU 2016-09 related to excess tax benefits from stock compensation as described in Note 1—Significant Accounting Policies under "Accounting Pronouncements Adopted in the Current Year." See Notes to Condensed Financial Statements and accompanying Report of Independent Registered Public Accounting Firm. TORCHMARK CORPORATION (PARENT COMPANY) SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued) NOTES TO CONDENSED FINANCIAL STATEMENTS (Amounts in thousands) Note A—Dividends from Subsidiaries Cash dividends paid to Torchmark from the subsidiaries were as follows: Year Ended December 31, 2016 2015 2014 Dividends from subsidiaries $ 437,566 $ 466,416 $ 478,840 Note B—Supplemental Disclosures of Cash Flow Information The following table summarizes noncash transactions, which are not reflected on the Condensed Statements of Cash Flows : Year Ended December 31, 2016 2015 2014 Stock-based compensation not involving cash $ 26,326 $ 28,664 $ 32,203 Borrowed money from affiliate — 56,503 — Investment in subsidiaries — 39,206 — Purchase of agent debit balances — 17,297 — The following table summarizes certain amounts paid (received) during the period: Year Ended December 31, 2016 2015 2014 Interest paid $ 84,952 $ 77,920 $ 77,663 Income taxes received (20,838 ) (22,009 ) (25,581 ) Note C—Preferred Stock As of December 31, 2016 , Torchmark had 351 thousand shares of Cumulative Preferred Stock, Series A, issued and outstanding, of which 280 thousand shares were 6.50% Cumulative Preferred Stock, Series A, and 71 thousand shares were 7.15% Cumulative Preferred Stock, Series A (collectively, the “Series A Preferred Stock”). All issued and outstanding shares of Series A Preferred Stock were held by wholly-owned insurance subsidiaries. In the event of liquidation, the holders of the Series A Preferred Stock at the time outstanding would be entitled to receive a liquidating distribution out of the assets legally available to stockholders in the amount of $1 thousand per share or $351 million in the aggregate, plus any accrued and unpaid dividends, before any distribution is made to holders of Torchmark common stock. Holders of Series A Preferred Stock do not have any voting rights nor have rights to convert such shares into shares of any other class of Torchmark capital stock. See accompanying Report of Independent Registered Public Accounting Firm. |
Schedule IV. Reinsurance
Schedule IV. Reinsurance | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Schedule IV. Reinsurance | TORCHMARK CORPORATION SCHEDULE IV. REINSURANCE (CONSOLIDATED) (Amounts in thousands) Gross Ceded (1) Assumed Net Percentage For the Year Ended December 31, 2016 Life insurance in force $ 174,314,897 $ 725,867 $ 3,352,113 $ 176,941,143 1.9 Premiums: (2) Life insurance $ 2,152,698 $ 4,507 $ 22,915 $ 2,171,106 1.1 Health insurance 951,137 3,474 — 947,663 — Total premium $ 3,103,835 $ 7,981 $ 22,915 $ 3,118,769 0.7 For the Year Ended December 31, 2015 Life insurance in force $ 167,677,206 $ 729,739 $ 3,498,826 $ 170,446,293 2.1 Premiums: (2) Life insurance $ 2,034,373 $ 4,484 $ 24,007 $ 2,053,896 1.2 Health insurance 928,659 3,139 — 925,520 — Total premium $ 2,963,032 $ 7,623 $ 24,007 $ 2,979,416 0.8 For the Year Ended December 31, 2014 Life insurance in force $ 160,455,963 $ 795,192 $ 3,658,511 $ 163,319,282 2.2 Premiums: (2) Life insurance $ 1,924,605 $ 4,614 $ 25,774 $ 1,945,765 1.3 Health insurance 872,391 2,951 — 869,440 — Total premium $ 2,796,996 $ 7,565 $ 25,774 $ 2,815,205 0.9 (1) No amounts have been netted against ceded premium. (2) Excludes policy charges of $18.3 million , $19.3 million , and $20.9 million in each of the years 2016 , 2015 , and 2014 , respectively. See accompanying Report of Independent Registered Public Accounting Firm. |
Significant Accounting Polici27
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Significant Accounting Policies [Line Items] | |
Basis of Presentation | The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), under guidance issued by the Financial Accounting Standards Board (FASB). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Principles of Consolidation | The consolidated financial statements include the results of Torchmark and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. When Torchmark acquires a subsidiary or a block of business, the assets acquired and the liabilities assumed are measured at fair value at the acquisition date. Any excess of acquisition cost over the fair value of net assets is recorded as goodwill. Expenses incurred to effect the acquisition are charged to earnings as of the acquisition date. Upon acquisition, the accounts and results of operations are consolidated as of and subsequent to the acquisition date. Torchmark accounts for its variable interest entities (VIEs) under accounting guidance which clarifies the definition of a variable interest and the instructions for consolidating VIEs. Only primary beneficiaries are required or allowed to consolidate VIEs. Therefore, a company may have voting control of a VIE, but if it is not the primary beneficiary, it is not permitted to consolidate the VIE. As further described under the caption Low-Income Housing Tax Credit Interests below in this note, Torchmark holds passive interests in limited partnerships which provide investment returns through the provision of tax benefits (principally from the transfer of federal or state tax credits related to federal low-income housing). These interests are considered to be VIEs. They are not consolidated because the Company has no power to control the activities that most significantly affect the economic performance of these entities and therefore the Company is not the primary beneficiary of any of these interests. Torchmark’s involvement is limited to its limited partnership interest in the entities. Torchmark has not provided any other financial support to the entities beyond its commitments to fund its limited partnership interests, and there are no arrangements or agreements with any of the interests to provide other financial support. The maximum loss exposure relative to these interests is limited to their carrying value. |
Investments | Torchmark classifies all of its fixed maturity investments, which include bonds and redeemable preferred stocks, as available for sale. Investments classified as available for sale are carried at fair value with unrealized gains and losses, net of deferred taxes, reflected directly in accumulated other comprehensive income. Policy loans are carried at unpaid principal balances. Other long-term investments include equity securities, real estate, and limited partnerships. Investments in equity securities, which include common and nonredeemable preferred stocks, are reported at fair value with unrealized gains and losses, net of deferred taxes, reflected directly in accumulated other comprehensive income. Investments in real estate are reported at cost less allowances for depreciation. Depreciation is calculated on the straight-line method. Investments in limited partnerships are accounted for using the cost method of accounting as Torchmark's partnership interest is minor since Torchmark lacks the ability to exercise significant influence over the partnership's operating and financial policies. The Company considers its cost method investments for impairment when the carrying value of such investments exceeds the net asset value (“NAV”). Short-term investments include investments in interest-bearing time deposits with original maturities of twelve months or less. Gains and losses realized on the disposition of investments are determined on a specific identification basis. |
Impairment of Investments | Torchmark’s portfolio of fixed maturities fluctuates in value due to changes in interest rates in the financial markets as well as other factors. Fluctuations caused by market interest rate changes have little bearing on whether or not the investment will be ultimately recoverable. Therefore, Torchmark considers these declines in value resulting from changes in market interest rates to be temporary. In certain circumstances, however, Torchmark determines that the decline in the value of a security is other-than-temporary and writes the book value of the security down to its fair value, realizing an investment loss. The evaluation of Torchmark’s securities for other-than-temporary impairments is a process that is undertaken at least quarterly and is overseen by a team of Company investment and accounting professionals. Each security which is impaired because the fair value is less than the cost or amortized cost is identified and evaluated. The determination that an impairment is other-than-temporary is highly subjective and involves the careful consideration of many factors. Among the factors considered are: • The length of time and extent to which the security has been impaired • The reason(s) for the impairment • The financial condition of the issuer and the near-term prospects for recovery in fair value of the security • The Company’s ability and intent to hold the security until anticipated recovery • Expected future cash flows The relative weight given to each of these factors can change over time as facts and circumstances change. In many cases, management believes it is appropriate to give relatively more weight to prospective factors than to retrospective factors. Prospective factors that are given more weight include prospects for recovery, the Company’s ability and intent to hold the security until anticipated recovery, and expected future cash flows. Among the facts and information considered in the process are: • Financial statements of the issuer • Changes in credit ratings of the issuer • The value of underlying collateral • News and information included in press releases issued by the issuer • News and information reported in the media concerning the issuer • News and information published by or otherwise provided by credit analysts • The nature and amount of recent and expected future sources and uses of cash • Default on a required payment • Issuer bankruptcy filings While all available information is taken into account, it is difficult to predict the ultimate recoverable amount of a distressed or impaired security. If a security is determined to be other-than-temporarily impaired, the cost basis of the security is written down to fair value and is treated as a realized loss in the period the determination is made. The written-down security will be amortized and revenue recognized in accordance with estimated future cash flows. Current accounting guidance is such that if an entity intends to sell or if it is more likely than not that it will be required to sell an impaired security prior to recovery of its cost basis, the security is to be considered other-than-temporarily impaired and the full amount of impairment must be charged to earnings. Otherwise, losses on fixed maturities which are other-than-temporarily impaired are separated into two categories, the portion of loss which is considered credit loss and the portion of loss which is due to other factors. The credit loss portion is charged to earnings while the loss due to other factors is charged to other comprehensive income. The credit loss portion of an impairment is determined as the difference between the security’s amortized cost and the present value of expected future cash flows discounted at the security’s original effective yield rate. The temporary portion is the difference between this present value of expected future cash flows and fair value (as discounted by a market yield). The expected cash flows are determined using judgment and the best information available to the Company. Inputs used to derive expected cash flows include expected default rates, current levels of subordination, and loan-to-collateral value ratios. Management believes that the present value of future cash flows at the original effective yield is a better measure of valuation because fair value determined by a discounted market yield is often based on limited observable market data, and the market for these securities is generally neither active nor orderly. |
Cash | Cash consists of balances on hand and on deposit in banks and financial institutions. |
Accrued Investment Income and Other Receivables | Accrued investment income consists of interest income or dividends earned on the investment portfolio, but are yet to be received as of the balance sheet date. Other receivables consist primarily of agent debit balances, which represent commissions advanced to insurance agents. These balances are repaid to the Company over time as the premiums associated with the advanced commissions are collected by the Company and the agents' commissions on such premiums are retained. |
Deferred Acquisition Costs | Certain costs of acquiring new insurance business are deferred and recorded as an asset. These costs are essential for the acquisition of new insurance business and are directly related to the successful issuance of an insurance contract including sales commissions, policy issue costs, and underwriting costs. Additionally, deferred acquisition costs include the value of insurance purchased, which are the costs of acquiring blocks of insurance from other companies or through the acquisition of other companies. These costs represent the difference between the fair value of the contractual insurance assets acquired and liabilities assumed compared against the assets and liabilities for insurance contracts that the Company issues or holds measured in accordance with GAAP. Deferred acquisition costs and the value of insurance purchased are amortized in a systematic manner which matches these costs with the associated revenues. Policies other than universal life-type policies are amortized with interest over the estimated premium-paying period of the policies in a manner which charges each year’s operations in proportion to the receipt of premium income. Universal life-type policies are amortized with interest in proportion to estimated gross profits. The assumptions used to amortize acquisition costs with regard to interest, mortality, morbidity, and persistency are consistent with those used to estimate the liability for future policy benefits. For interest-sensitive and deposit-balance type products, these assumptions are reviewed on a regular basis and are revised if actual experience differs significantly from original expectations. For all other products, amortization assumptions are generally not revised once established. Deferred acquisition costs are subject to periodic recoverability and loss recognition testing to determine if there is a premium deficiency. These tests evaluate whether the present value of future contract-related cash flows will support the capitalized deferred acquisition cost asset. These cash flows consist primarily of premium income, less benefits and expenses taking inflation into account. The present value of these cash flows, less the benefit reserve, is then compared with the unamortized deferred acquisition cost balance. In the event the estimated present value of net cash flows is less, the deficiency would be recognized by a charge to earnings and either a reduction of unamortized acquisition costs or an increase in the liability for future benefits, as described under the caption Future Policy Benefits . |
Advertising Costs | Costs related to advertising are generally charged to expense as incurred. However, certain Globe Life Direct Response advertising costs are capitalized when there is a reliable and demonstrated relationship between total costs and future benefits that is a direct result of incurring these costs. Globe Life Direct Response advertising costs consist primarily of the production and distribution costs of direct mail advertising materials, and when capitalized are included as a component of deferred acquisition costs. They are amortized in the same manner as other deferred acquisition costs. |
Goodwill | The excess cost of a business acquired over the fair value of net assets acquired is reported as goodwill. Goodwill is subject to impairment testing in accordance with GAAP on an annual basis, or whenever potential impairment triggers occur. The Company may perform a qualitative analysis under certain circumstances, or perform a two-step quantitative analysis. In the qualitative analysis, the Company determines if it is more likely than not that the fair value of a reporting unit is less than its carrying amount by assessing current events and circumstances. If there are factors present indicating potential impairment, the company should proceed to the two-step quantitative analysis as described as follows. In the two-step quantitative analysis, the Company utilizes two approaches, income and market, to determine the fair value of each reporting unit. In the income approach, judgment and assumptions are used in developing the projected cash flows for the reporting units, and such estimates are subject to change. The Company also exercises judgment in the determination of the discount rate as management believes this to be appropriate for the risk associated with the cash flow expectations. In the market approach, the Company utilizes the share price and a control premium based on businesses with similar assets to determine a fair value. In both cases, the fair value of each reporting unit is then measured against that reporting unit’s corresponding carrying value. In the event the fair value is less than the carrying value, further testing is required under the accounting guidance to determine the amount of impairment, if any. If there is an impairment in the goodwill of any reporting unit, it is written down and charged to earnings in the period of the test. |
Low-Income Housing Tax Credit Interests | Torchmark invests in limited partnerships that provide low-income housing tax credits and other related federal income tax and state premium tax benefits to Torchmark. The carrying value of Torchmark’s investment in these entities was $280 million and $306 million at December 31, 2016 and 2015 , respectively. At December 31, 2016 , $280 million associated with the federal interests was included in "Other assets" on the Consolidated Balance Sheets. At December 31, 2015 , $302 million associated with the federal interests was included in "Other assets" with the remaining $4 million state-related interests included in "Other long-term investments". As of December 31, 2016 , Torchmark was obligated under future commitments of $57 million , which is included in the above carrying value. For guaranteed investments acquired prior to January 1, 2015, the Company utilizes the effective-yield method of amortization while the proportional method of amortization is utilized for all non-guaranteed as well as guaranteed investments acquired on or after January 1, 2015. All amortization expense is recorded in “Income tax expense” on the Consolidated Statements of Operations . |
Property and Equipment | Property and equipment, included in “Other assets,” is reported at cost less allowances for depreciation. Depreciation is recorded primarily on the straight line method over the estimated useful lives of these assets which range from three to ten years for equipment and five to forty years for buildings and improvements. Ordinary maintenance and repairs are charged to income as incurred. Impairments, if any, are recorded when certain events and circumstances become evident that the fair value of the asset is less than its carrying amount. |
Future Policy Benefits | The liability for future policy benefits for annuity and universal life-type products is represented by policy account value. The liability for future policy benefits for all other life and health products, approximately 86% of total future policy benefits, is determined on the net level premium method. This method provides for the present value of expected future benefit payments less the present value of expected future net premiums, based on estimated investment yields, mortality, morbidity, persistency and other assumptions which were considered appropriate at the time the policies were issued. For limited-payment contracts, a deferred profit liability is also recorded which causes profits to emerge over the life of the contract in proportion to policies in force. Assumptions used for traditional life and health insurance products are based primarily on Company experience. Assumptions for interest rates range from 2.5% to 7.0% for Torchmark’s insurance companies with an overall weighted average assumed rate of 5.7% . Mortality tables used for individual life insurance include various statutory tables and modifications of a variety of generally accepted actuarial tables. Morbidity assumptions for individual health are based on Company experience and industry data. Withdrawal and termination assumptions are based on Torchmark’s experience. Once established, assumptions for these products are generally not changed. An additional provision is made on most products to allow for possible adverse deviation from the assumptions. These estimates are reviewed annually and compared with actual experience. If it is determined that existing contract liabilities, together with the present value of future gross premiums, will not be sufficient to cover the present value of future benefits and to recover unamortized deferred acquisition costs, then a premium deficiency exists. Such a deficiency would be recognized immediately by a charge to earnings and either a reduction of unamortized deferred acquisition costs or an increase in the liability for future policy benefits. From that point forward, the liability for future policy benefits would be based on revised assumptions. |
Policy Claims and Other Benefits Payable | Torchmark establishes a liability for known policy benefits payable and an estimate of claims that have been incurred but not yet reported to the Company. Torchmark makes an estimate of unreported claims after careful evaluation of all information available to the Company. This estimate is based on prior experience and is reviewed quarterly. However, there is no certainty the stated liability for claims and other benefits, including the estimate of unsubmitted claims, will be Torchmark’s ultimate obligation. |
Income Taxes | Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement book values and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
Postretirement Benefits | Torchmark accounts for its postretirement defined benefit plans by recognizing the funded status of those plans on its Consolidated Balance Sheets in accordance with accounting guidance. Periodic gains and losses attributable to changes in plan assets and liabilities that are not recognized as components of net periodic benefit costs are recognized as components of other comprehensive income, net of tax. |
Treasury Stock | Torchmark accounts for purchases of treasury stock on the cost method. Issuance of treasury stock is accounted for using the weighted-average cost method. |
Recognition of Premium Revenue and Related Expenses | Premium income for traditional long-duration life and health insurance products is recognized when due from the policyholder. Premiums for short-duration health contracts are recognized as revenue over the contract period in proportion to the insurance protection provided. Premiums for universal life-type and annuity contracts are added to the policy account value, and revenues for such products are recognized as charges to the policy account value for mortality, administration, and surrenders (retrospective deposit method). Life premium includes policy charges of $18 million , $19 million , and $21 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. Other premium consists of annuity policy charges in each year. For most insurance products, the related benefits and expenses are matched with revenues by means of the provision of future policy benefits and the amortization of deferred acquisition costs in a manner which recognizes profits as they are earned over the revenue recognition period. For limited-payment life insurance products, the profits are recognized over the contract period. |
Stock-Based Compensation | Torchmark accounts for stock-based compensation by recognizing an expense in the financial statements based on the “fair value method.” The fair value method requires that a fair value be assigned to a stock option or other stock grant on its grant date and that this value be amortized over the grantees’ service period. The fair value method requires the use of an option valuation model to value employee stock options. Torchmark has elected to use the Black-Scholes valuation model for option expensing. A summary of assumptions for options granted in each of the three years 2014 through 2016 is as follows: 2016 2015 2014 Volatility factor 19.2 % 23.6 % 30.9 % Dividend yield 1.1 % 0.9 % 0.9 % Expected term (in years) 5.78 5.66 5.65 Risk-free rate 1.3 % 1.6 % 1.9 % The expected term is generally derived from Company experience. However, expected terms are determined based on the simplified method as permitted under the ASC 718 Stock Compensation topic when company experience is insufficient. The Torchmark Corporation 2011 Incentive Plan replaced all previous plans and allows for option grants for employees with a ten -year contractual term which vest over five years in addition to seven -year grants which vest over three years as permitted by the previous plans. Director grants vest over six months. The Company has sufficient experience with seven -year grants that vest in three years, but insufficient historical experience with five -year vesting. Therefore, Torchmark has used the simplified method to determine the expected term for the ten -year grants with five -year vesting and will do so until adequate experience is developed. Volatility and risk-free interest rates are assumed over a period of time consistent with the expected term of the option. Volatility is measured on a historical basis. Monthly data points are utilized to derive volatility for periods greater than three years. Expected dividend yield is based on current dividend yield held constant over the expected term. Once the fair value of an option has been determined, it is amortized on a straight-line basis over the employee’s service period for that grant (from the grant date to the date the grant is fully vested). Expenses for restricted stock and restricted stock units are based on the grant date fair value allocated on a straight-line basis over the service period. Performance share expense is recognized based on management’s estimate of the probability of meeting the metrics identified in the performance share award agreement, assigned to each service period as these estimates develop. Torchmark management views all stock-based compensation expense as a corporate or Parent Company expense and, therefore, presents it as such in its segment analysis (See Note 14—Business Segments ). It is included in “Other operating expense” in the Consolidated Statements of Operations . |
Earnings Per Share | Torchmark presents basic and diluted earnings per share (EPS) on the face of the Consolidated Statements of Operations for income from continuing operations and income from discontinued operations. Basic EPS is computed by dividing income available to common shareholders by the weighted average common shares outstanding for the period. Diluted EPS is calculated by adding to shares outstanding the additional net effect of potentially dilutive securities or contracts, such as stock options, which could be exercised or converted into common shares. |
Accounting Pronouncements Adopted in Current Year and Not Yet Adopted | Accounting Pronouncements Adopted in the Current Year : Going Concern : In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40) . This accounting standard requires management to perform interim and annual assessments of the entity's ability to continue its business operations within one year of the date of issuance of its financial statements. The Company must then provide certain disclosure if there is substantial doubt about its ability to continue as a going concern. As of January 1, 2016, the Company adopted this standard with no impact to the financial statements. Short-Duration Contracts : The FASB issued Accounting Standards Update No. 2015-09 Financial Services-Insurance: Disclosures about Short-Duration Contracts (ASU 2015-09) , requiring companies to disclose additional information with regards to its short-duration insurance contracts. These new disclosures provide additional insight into an insurance entity’s ability to underwrite claims. Torchmark's disclosures under ASU 2015-09 are effective for the 2016 annual consolidated financial statements. The guidance consists only of new disclosures and did not impact the accounting for short-duration contracts. See Note 7—Liability for Unpaid Claims . Excess Tax Benefits : In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting to simplify certain aspects of accounting for share-based payment award transactions including: (a) income tax consequences; (b) classification in the statement of cash flows; and (c) accounting for forfeitures. Torchmark elected to early adopt this standard as of January 1, 2016, as permitted. This new accounting standard primarily causes excess tax benefits to be recognized through earnings affecting Torchmark's computations of net income, diluted shares outstanding, and earnings per share. While the intent of the adoption of this guidance is simplification, inherent changes in future share prices and volume of stock option exercises are expected to result in increased volatility in net income and earnings per share in future periods. As provided by the new standard, the adoption is prospective and thus will impact only 2016 and future periods. Below is a listing of the effects of the prospective adoption of this guidance due to the change in accounting of excess tax benefits: • Consolidated statement of operations: For the year ended 2016, the Company recorded $20 million in excess tax benefits as a component of income taxes, which resulted in an increase in net income as compared with 2015 and 2014 when the excess tax benefits of $18 million and $19 million , respectively, were recorded as a component of additional paid-in capital on the balance sheet. • Weighted average diluted shares: The weighted average diluted shares outstanding were adjusted to exclude excess tax benefits from the assumed proceeds in the diluted shares calculation. This change resulted in diluted weighted average shares outstanding of 122.4 million for 2016, as compared with 121.5 million previous guidance. • Earnings per share: The adoption resulted in a $0.13 increase in earnings per share for the year ended December 31, 2016. • Consolidated statement of cash flows: The excess tax benefits related to share-based payments of $20 million were presented as a component of operating activities in the same manner as other cash flows related to income taxes. In 2015 and 2014, the excess tax benefits of $18 million and $19 million , respectively, were presented within financing activities. Accounting Pronouncements Not Yet Adopted : Leases : In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842), which requires all lessees to report a right-of-use asset and a lease liability for most leases. For lessors, the standard modifies the classification criteria and the accounting for sales-type and direct financing leases. The standard will become effective for the Company beginning January 1, 2019 and will require recognizing and measuring leases at the beginning of the earliest period presented using a modified retrospective approach. Early adoption is permitted. The Company does not expect the adoption to have a significant impact on the financial statements. Refer to Note 15—Commitments and Contingencies for consideration of five year operating lease commitments. Investment Impairment : In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments as well as to change the loss impairment methodology for available-for-sale debt securities. This standard will become effective on January 1, 2020. The applicable section of the standard related to debt securities requires a prospective transition. The Company does not expect the adoption to have a significant impact on the financial statements. Cash Flows: In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments. This guidance was issued to provide uniformity in the classification of cash receipts and payments recorded in the statement of cash flows, including debt prepayment or extinguishment costs, settlements of zero-coupon bonds, and proceeds from the settlement of insurance claims. This standard will become effective on January 1, 2018. The Company is currently evaluating the standard to determine its impact. Income Taxes: In October 2016, the FASB issued Accounting Standards Update No. 2016-16, Income Taxes: Intra-Entity Transfer of Assets Other Than Inventory. This guidance was issued to improve the accounting for income tax consequences of intra-entity transfers of assets other than inventory by allowing the immediate recognition of the current and deferred income tax effects. Current guidance prohibits the recognition of current and deferred income taxes for an intra-entity transfer until the asset has been sold to an outside party. This new guidance should be applied on a modified retrospective approach and will become effective on January 1, 2018. The Company does not expect the adoption to have a significant impact on the financial statements. Goodwill: In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment. This guidance was issued to simplify the subsequent measurement of goodwill through the elimination of Step 2 from the goodwill impairment test. It will become effective on January 1, 2020 and should be applied on a prospective basis. The Company does not expect the adoption to have a significant impact on the financial statements. |
Fair Value Measurements, Investments in Securities | |
Significant Accounting Policies [Line Items] | |
Fair Value Measurements | Torchmark measures the fair value of its fixed maturities based on a hierarchy consisting of three levels which indicate the quality of the fair value measurements as described below: • Level 1— fair values are based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date. • Level 2 — fair values are based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that can otherwise be corroborated by observable market data. • Level 3— fair values are based on inputs that are considered unobservable where there is little, if any, market activity for the asset or liability as of the measurement date. In this circumstance, the Company has to rely on values derived by independent brokers or internally-developed assumptions. Unobservable inputs are developed based on the best information available to the Company which may include the Company’s own data or bid and ask prices in the dealer market. The great majority of Torchmark's fixed maturities are not actively traded and direct quotes are not generally available. Management therefore determines the fair values of these securities after consideration of data provided by third-party pricing services, independent broker/dealers, and other resources. At December 31, 2016 , Torchmark's investments in fixed maturities were primarily composed of the following significant security types: Corporate securities, state and municipal securities, redeemable preferred stocks, and U.S. government securities. The remaining security types represented less than 1% of the total in the aggregate. Over 95% of the fair value reported at December 31, 2016 was determined using data provided by third-party pricing services. Prices provided by these services are not binding offers, but are estimated exit values. Third-party pricing services use proprietary pricing models to determine security values by discounting cash flows using a market-adjusted spread to a benchmark yield. For all asset classes within Torchmark’s significant security types, third-party pricing services use a common valuation technique to model the price of the investments using observable market data. The foundation for these models consists of developing yield spreads based on multiple observable market inputs, including but not limited to: benchmark yield curves, actual trading activity, new issue yields, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, sector-specific data, economic data, and other inputs that are corroborated in the market. Pricing vendors monitor and review their pricing data continuously with current market and economic data feeds, augmented by ongoing communication within the dealer community. Using the observable market inputs described above, spreads to an appropriate benchmark yield are further developed by the vendors for each security based on security-specific and/or sector-specific risk factors, such as a security’s terms and conditions (coupon, maturity, and call features), credit rating, sector, liquidity, collateral or other cash flow options, and other factors that could impact the risk of the security. Embedded repayment options, such as call and redemption features, are also taken into account in the pricing models. When the spread is determined, it is added to the security’s benchmark yield. The security's expected cash flows are discounted using this spread-adjusted yield, and the resulting present value of the discounted cash flows is the evaluated price. When third-party vendor prices are not available, the Company attempts to obtain valuations from other sources, including but not limited to broker/dealers, broker quotes, and prices on comparable securities. When valuations have been obtained for all securities in the portfolio, management reviews and analyzes the prices to ensure their reasonableness, taking into account available observable information. When two or more valuations are available for a security and the variance between the prices is 10% or less, the close correlation suggests similar observable inputs were used in deriving the price, and the mean of the prices is used. Securities valued in this manner are classified as Level 2. When the variance between two or more valuations for a security exceeds 10%, additional analysis is performed to determine the most appropriate value for that security, using resources such as broker quotes, prices on comparable securities, recent trades, and any other observable market data. Further review is performed on the available valuations to determine if they can be corroborated within reasonable tolerance to any other observable evidence. If one of the valuations or the mean of the available valuations for a security can be corroborated with other observable evidence, then the corroborated value is used and reported as Level 2. The Company uses information and analytical techniques deemed appropriate for determining the point within the range of reasonable fair value estimates that is most representative of fair value under current market conditions. Valuations that cannot be corroborated within a reasonable tolerance are classified as Level 3. Torchmark invests in a portfolio of private placement bonds which are not actively traded. This portfolio is managed by third parties and was $565 million at amortized cost and $574 million at fair value on December 31, 2016 , compared with $542 million at amortized cost and $546 million at fair value a year earlier. The portfolio managers provide valuations for the bonds based on a pricing matrix utilizing observable inputs, such as the benchmark treasury rate and published sector indices, and unobservable inputs such as an internally-developed credit rating. If they cannot be corroborated, the fair values are classified as Level 3. |
Fair Value Measurements, Other Financial Instruments | |
Significant Accounting Policies [Line Items] | |
Fair Value Measurements | Fair values for cash, short-term investments, short-term debt, receivables and payables approximate carrying value. Policy loans are an integral part of Torchmark’s subsidiaries’ life insurance policies in force and their fair values cannot be valued separately and apart from the insurance contracts. The fair values of Torchmark’s long-term debt issues are based on the same methodology as investments in fixed maturities. Because observable inputs were available for these debt securities at December 31, 2016 , they were classified as Level 2 in the valuation hierarchy. The fair value for each debt instrument as of December 31, 2016 is disclosed in Note 11—Debt . As described in Note 9—Postretirement Benefits , Torchmark maintains a nonqualified supplemental retirement plan. Therefore the assets which support the liability for this plan are considered general assets of the Company. These assets consist of the cash value of corporate-owned life insurance policies and exchange traded funds (ETFs). The fair value of the insurance cash values approximates carrying value. Fair values for the ETFs are derived from direct quotes and are considered Level 1 in the valuation hierarchy. |
Significant Accounting Polici28
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Assumptions for Options Granted | A summary of assumptions for options granted in each of the three years 2014 through 2016 is as follows: 2016 2015 2014 Volatility factor 19.2 % 23.6 % 30.9 % Dividend yield 1.1 % 0.9 % 0.9 % Expected term (in years) 5.78 5.66 5.65 Risk-free rate 1.3 % 1.6 % 1.9 % |
Statutory Accounting (Tables)
Statutory Accounting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Consolidated Net Income and Shareholders' Equity for Insurance Companies | Consolidated net income and shareholders’ equity (capital and surplus) on a statutory basis for the insurance subsidiaries were as follows: Net Income Shareholders’ Equity Year Ended December 31, At December 31, 2016 2015 2014 2016 2015 Life insurance subsidiaries $ 429,563 $ 393,466 $ 446,439 $ 1,335,070 $ 1,253,007 |
Supplemental Information Abou30
Supplemental Information About Changes to Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Change in Balance by Component of Accumulated Other Comprehensive Income | An analysis in the change in balance by component of Accumulated Other Comprehensive Income is as follows for each of the years 2014 through 2016 . Components of Accumulated Other Comprehensive Income For the 12 months ended December 31, 2014: Available Deferred Foreign Pension 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 855,132 (4,030 ) (7,480 ) (42,781 ) 800,841 Reclassifications, net of tax (21,055 ) — — 6,685 (14,370 ) Other comprehensive income (loss) 834,077 (4,030 ) (7,480 ) (36,096 ) 786,471 Balance at December 31, 2014 1,090,273 (10,758 ) 17,386 (99,449 ) 997,452 For the 12 months ended December 31, 2015: Other comprehensive income (loss) before reclassifications, net of tax (759,976 ) 5,643 (13,759 ) (8,930 ) (777,022 ) Reclassifications, net of tax 2,036 — — 9,481 11,517 Other comprehensive income (loss) (757,940 ) 5,643 (13,759 ) 551 (765,505 ) Balance at December 31, 2015 332,333 (5,115 ) 3,627 (98,898 ) 231,947 For the 12 months ended December 31, 2016: Other comprehensive income (loss) before reclassifications, net of tax 356,016 (1,567 ) 1,340 (20,736 ) 335,053 Reclassifications, net of tax 3,965 — — 6,609 10,574 Other comprehensive income (loss) 359,981 (1,567 ) 1,340 (14,127 ) 345,627 Balance at December 31, 2016 $ 692,314 $ (6,682 ) $ 4,967 $ (113,025 ) $ 577,574 |
Summary of Reclassifications Out of Accumulated Other Comprehensive Income | Reclassifications out of Accumulated Other Comprehensive Income are presented below for each of the years 2014 through 2016 . Reclassification Adjustments Year Ended December 31, Component Line Item 2016 2015 2014 Affected line items in the Unrealized gains (losses) on available for sale assets: Realized (gains) losses $ 10,285 $ 9,478 $ (23,771 ) Realized investment gains (losses) Amortization of (discount) premium (4,185 ) (6,346 ) (8,621 ) Net investment income Total before tax 6,100 3,132 (32,392 ) Tax (2,135 ) (1,096 ) 11,337 Income taxes Total after tax 3,965 2,036 (21,055 ) Pension adjustments: Amortization of prior service cost 477 377 2,113 Other operating expenses Amortization of actuarial (gain) loss 9,691 14,209 8,172 Other operating expenses Total before tax 10,168 14,586 10,285 Tax (3,559 ) (5,105 ) (3,600 ) Income taxes Total after tax 6,609 9,481 6,685 Total reclassifications (after tax) $ 10,574 $ 11,517 $ (14,370 ) |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Fixed Maturities and Equity Securities Available for Sale by Component | A summary of fixed maturities available for sale by cost or amortized cost and estimated fair value at December 31, 2016 and 2015 is as follows: 2016: Cost or Gross Gross Fair Value (1) % of Total (2) Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 381,054 $ 895 $ (9,151 ) $ 372,798 3 States, municipalities, and political subdivisions 1,284,605 126,850 (1,327 ) 1,410,128 9 Foreign governments 21,701 1,438 (62 ) 23,077 — Corporates, by sector: Financial 2,963,584 285,037 (45,885 ) 3,202,736 21 Utilities 1,875,946 249,701 (12,604 ) 2,113,043 14 Energy 1,542,426 127,989 (44,324 ) 1,626,091 11 Other corporate sectors 5,601,136 424,021 (84,547 ) 5,940,610 39 Total corporates 11,983,092 1,086,748 (187,360 ) 12,882,480 85 Collateralized debt obligations 60,726 13,062 (10,285 ) 63,503 — Other asset-backed securities 56,410 621 (337 ) 56,694 — Redeemable preferred stocks, by sector: Financial 371,862 43,383 (7,218 ) 408,027 3 Utilities 28,600 798 (244 ) 29,154 — Total redeemable preferred stocks 400,462 44,181 (7,462 ) 437,181 3 Total fixed maturities $ 14,188,050 $ 1,273,795 $ (215,984 ) $ 15,245,861 100 (1) Amount reported in the balance sheet. (2) At fair value. 2015: Cost or Gross Gross Fair Value (1) % of Total (2) Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 368,718 $ 404 $ (14,078 ) $ 355,044 3 States, municipalities, and political subdivisions 1,296,396 131,516 (1,908 ) 1,426,004 10 Foreign governments 21,594 1,369 (163 ) 22,800 — Corporates, by sector: Financial 2,760,552 301,624 (54,881 ) 3,007,295 22 Utilities 1,981,241 223,535 (28,267 ) 2,176,509 16 Energy 1,568,392 53,776 (219,101 ) 1,403,067 10 Other corporate sectors 4,761,192 294,026 (230,911 ) 4,824,307 35 Total corporates 11,071,377 872,961 (533,160 ) 11,411,178 83 Collateralized debt obligations 63,662 16,158 (9,438 ) 70,382 1 Other asset-backed securities 18,963 668 — 19,631 — Redeemable preferred stocks, by sector: Financial 382,517 45,926 (4,781 ) 423,662 3 Utilities 28,644 731 (52 ) 29,323 — Total redeemable preferred stocks 411,161 46,657 (4,833 ) 452,985 3 Total fixed maturities $ 13,251,871 $ 1,069,733 $ (563,580 ) $ 13,758,024 100 (1) Amount reported in the balance sheet. (2) At fair value |
Schedule of Fixed Maturities by Contractual Maturity | A schedule of fixed maturities by contractual maturity at December 31, 2016 is shown below on an amortized cost basis and on a fair value basis. Actual maturities could differ from contractual maturities due to call or prepayment provisions. Amortized Fair Fixed maturities available for sale: Due in one year or less $ 23,969 $ 24,573 Due from one to five years 640,903 688,509 Due from five to ten years 1,228,081 1,337,752 Due from ten to twenty years 4,278,896 4,746,466 Due after twenty years 7,897,726 8,326,907 Mortgage-backed and asset-backed securities 118,475 121,654 $ 14,188,050 $ 15,245,861 |
Schedule of Analysis of Investment Operations | Year Ended December 31, 2016 2015 2014 Net investment income is summarized as follows: Fixed maturities $ 778,912 $ 747,663 $ 732,925 Policy loans 38,436 36,763 35,015 Other long-term investments 2,786 2,021 1,516 Short-term investments 447 95 75 820,581 786,542 769,531 Less investment expense (13,678 ) (12,591 ) (11,245 ) Net investment income $ 806,903 $ 773,951 $ 758,286 |
Realized Gain (Loss) on Investments | An analysis of realized gains (losses) from investments is as follows: Realized investment gains (losses): Fixed maturities $ (10,645 ) $ (9,479 ) $ 23,170 Other investments (38 ) 688 636 Loss on redemption on debt — — (258 ) (10,683 ) (8,791 ) 23,548 Applicable tax 3,739 3,077 (8,242 ) Realized gains (losses) from investments, net of tax $ (6,944 ) $ (5,714 ) $ 15,306 |
Unrealized Gain (Loss) on Investments | An analysis of the net change in unrealized investment gains (losses) is as follows: Fixed maturities $ 551,658 $ (1,163,295 ) $ 1,279,190 Other investments 2,143 (2,737 ) 3,872 Net change in unrealized gains (losses) $ 553,801 $ (1,166,032 ) $ 1,283,062 |
Schedule of Selected Information about Sales of Fixed Maturities | Additional information about securities sold is as follows: At December 31, 2016 2015 2014 Fixed maturities: Proceeds from sales (1) $ 358,285 $ 226,792 $ 109,024 Gross realized gains 6,133 259 17,583 Gross realized losses (32,608 ) (16,894 ) (1,879 ) (1) Includes unsettled sales of $18 million at December 31, 2016 . |
Assets Measured at Fair Value on Recurring Basis | The following tables represent the fair value of fixed maturities measured on a recurring basis at December 31, 2016 and 2015 : Fair Value Measurements at December 31, 2016 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: U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 372,798 $ — $ 372,798 States, municipalities, and political subdivisions 45,302 1,364,826 — 1,410,128 Foreign governments — 23,077 — 23,077 Corporates, by sector: Financial — 3,141,611 61,125 3,202,736 Utilities — 1,959,143 153,900 2,113,043 Energy — 1,598,976 27,115 1,626,091 Other corporate sectors — 5,623,150 317,460 5,940,610 Total corporates — 12,322,880 559,600 12,882,480 Collateralized debt obligations — — 63,503 63,503 Other asset-backed securities — 56,694 — 56,694 Redeemable preferred stocks, by sector: Financial — 408,027 — 408,027 Utilities — 29,154 — 29,154 Total redeemable preferred stocks — 437,181 — 437,181 Total fixed maturities $ 45,302 $ 14,577,456 $ 623,103 $ 15,245,861 Percentage of total 0.3 % 95.6 % 4.1 % 100.0 % Fair Value Measurements at December 31, 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: U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 355,044 $ — $ 355,044 States, municipalities, and political subdivisions — 1,426,004 — 1,426,004 Foreign governments — 22,800 — 22,800 Corporates, by sector: Financial — 2,945,048 62,247 3,007,295 Utilities 22,189 2,020,268 134,052 2,176,509 Energy — 1,377,861 25,206 1,403,067 Other corporate sectors — 4,515,006 309,301 4,824,307 Total corporates 22,189 10,858,183 530,806 11,411,178 Collateralized debt obligations — — 70,382 70,382 Other asset-backed securities — 19,631 — 19,631 Redeemable preferred stocks, by sector: Financial 10,124 413,538 — 423,662 Utilities — 29,323 — 29,323 Total redeemable preferred stocks 10,124 442,861 — 452,985 Total fixed maturities $ 32,313 $ 13,124,523 $ 601,188 $ 13,758,024 Percentage of total 0.2 % 95.4 % 4.4 % 100.0 % |
Schedule of Changes in Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs | The following table represents changes in fixed maturities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Collateralized debt Obligations Corporates Total Balance at January 1, 2014 $ 58,205 $ 300,300 $ 358,505 Total gains or losses: Included in realized gains/losses 15,924 1 15,925 Included in other comprehensive income 3,323 27,864 31,187 Acquisitions — 186,366 186,366 Sales (16,049 ) (1 ) (16,050 ) Amortization 5,519 13 5,532 Other (1) (3,690 ) (1,829 ) (5,519 ) Transfers into (out of) Level 3 — — — Balance at December 31, 2014 63,232 512,714 575,946 Total gains or losses: Included in realized gains/losses — 1,182 1,182 Included in other comprehensive income 11,365 (11,925 ) (560 ) Acquisitions — 38,600 38,600 Sales — — — Amortization 5,536 17 5,553 Other (1) (9,751 ) (9,782 ) (19,533 ) Transfers into (out of) Level 3 — — — Balance at December 31, 2015 70,382 530,806 601,188 Total gains or losses: Included in realized gains/losses — 788 788 Included in other comprehensive income (3,943 ) 6,403 2,460 Acquisitions — 33,662 33,662 Sales — — — Amortization 5,186 17 5,203 Other (1) (8,122 ) (12,076 ) (20,198 ) Transfers into (out of) Level 3 — — — Balance at December 31, 2016 $ 63,503 $ 559,600 $ 623,103 (1) Includes foreign exchange adjustments and principal repayments. |
Quantitative Information about Level 3 Fair Value Measurements | Quantitative Information about Level 3 Fair Value Measurements As of December 31, 2016 Fair Value Valuation Unobservable Range Weighted Collateralized debt obligations $ 63,503 Discounted cash flows Discount 9.3 - 10.45% 10.3% Private placement fixed maturities 559,600 Determination of credit spread Credit A+ to B BBB Discounted cash flows Discount 2.82 - 6.55% 4.17% $ 623,103 |
Transfers in and Out of Each of the Valuation Levels of Fair Values | The following table presents transfers in and out of each of the valuation levels of fair values. 2016 2015 2014 In Out Net In Out Net In Out Net Level 1 $ 45,344 $ — $ 45,344 $ 17,252 $ (49,744 ) $ (32,492 ) $ 36,468 $ — $ 36,468 Level 2 — (45,344 ) (45,344 ) 49,744 (17,252 ) 32,492 — (36,468 ) (36,468 ) Level 3 — — — — — — — — — |
Schedule of Unrealized Investment Losses by Class of Investment | ANALYSIS OF GROSS UNREALIZED INVESTMENT LOSSES At December 31, 2016 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 securities: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 321,133 $ (8,553 ) $ 1,404 $ (598 ) $ 322,537 $ (9,151 ) States, municipalities and political subdivisions 32,178 (1,114 ) 683 (19 ) 32,861 (1,133 ) Foreign governments 4,416 (62 ) — — 4,416 (62 ) Corporates, by sector: Financial 479,669 (18,666 ) 64,335 (4,627 ) 544,004 (23,293 ) Utilities 290,732 (11,000 ) 16,977 (1,604 ) 307,709 (12,604 ) Energy 83,064 (1,076 ) 154,908 (18,127 ) 237,972 (19,203 ) Metals and mining 5,936 (231 ) 5,789 (187 ) 11,725 (418 ) Other corporate sectors 1,564,273 (65,131 ) 68,968 (6,495 ) 1,633,241 (71,626 ) Total corporates 2,423,674 (96,104 ) 310,977 (31,040 ) 2,734,651 (127,144 ) Other asset-backed securities 41,498 (337 ) — — 41,498 (337 ) Redeemable preferred stocks, by sector: Utilities 5,857 (244 ) — — 5,857 (244 ) Total redeemable preferred stocks 5,857 (244 ) — — 5,857 (244 ) Total investment grade securities 2,828,756 (106,414 ) 313,064 (31,657 ) 3,141,820 (138,071 ) Below investment grade securities: States, municipalities and political subdivisions — — 357 (194 ) 357 (194 ) Corporates, by sector: — — Financial — — 83,174 (22,592 ) 83,174 (22,592 ) Energy 15,567 (385 ) 91,165 (24,736 ) 106,732 (25,121 ) Metals and mining 32,478 (172 ) 34,463 (2,023 ) 66,941 (2,195 ) Other corporate sectors 51,640 (291 ) 95,679 (10,017 ) 147,319 (10,308 ) Total corporates 99,685 (848 ) 304,481 (59,368 ) 404,166 (60,216 ) Collateralized debt obligations — — 9,714 (10,285 ) 9,714 (10,285 ) Redeemable preferred stocks, by sector: Financial — — 19,912 (7,218 ) 19,912 (7,218 ) Total redeemable preferred stocks — — 19,912 (7,218 ) 19,912 (7,218 ) Total below investment grade securities 99,685 (848 ) 334,464 (77,065 ) 434,149 (77,913 ) Total fixed maturities $ 2,928,441 $ (107,262 ) $ 647,528 $ (108,722 ) $ 3,575,969 $ (215,984 ) ANALYSIS OF GROSS UNREALIZED INVESTMENT LOSSES At December 31, 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 securities: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 310,676 $ (13,196 ) $ 14,731 $ (882 ) $ 325,407 $ (14,078 ) States, municipalities and political subdivisions 55,351 (1,611 ) 671 (42 ) 56,022 (1,653 ) Foreign governments 7,302 (163 ) — — 7,302 (163 ) Corporates, by sector: Financial 476,469 (18,599 ) — — 476,469 (18,599 ) Utilities 435,692 (28,267 ) — — 435,692 (28,267 ) Energy 745,969 (146,157 ) 81,681 (41,412 ) 827,650 (187,569 ) Metals and mining 225,273 (50,857 ) 25,831 (11,552 ) 251,104 (62,409 ) Other corporate sectors 1,615,515 (113,185 ) 35,684 (6,661 ) 1,651,199 (119,846 ) Total corporates 3,498,918 (357,065 ) 143,196 (59,625 ) 3,642,114 (416,690 ) Redeemable preferred stocks, by sector: Utilities 7,763 (52 ) — — 7,763 (52 ) Total redeemable preferred stocks 7,763 (52 ) — — 7,763 (52 ) Total investment grade securities 3,880,010 (372,087 ) 158,598 (60,549 ) 4,038,608 (432,636 ) Below investment grade securities: States, municipalities and political subdivisions — — 299 (255 ) 299 (255 ) Corporates, by sector: Financial — — 69,506 (36,282 ) 69,506 (36,282 ) Energy 7,979 (1,854 ) 61,175 (29,678 ) 69,154 (31,532 ) Metals and mining 4,551 (5,414 ) 17,679 (22,247 ) 22,230 (27,661 ) Other corporate sectors 81,368 (12,492 ) 63,307 (8,503 ) 144,675 (20,995 ) Total corporates 93,898 (19,760 ) 211,667 (96,710 ) 305,565 (116,470 ) Collateralized debt obligations — — 10,562 (9,438 ) 10,562 (9,438 ) Redeemable preferred stocks, by sector: Financial — — 22,374 (4,781 ) 22,374 (4,781 ) Total redeemable preferred stocks — — 22,374 (4,781 ) 22,374 (4,781 ) Total below investment grade securities 93,898 (19,760 ) 244,902 (111,184 ) 338,800 (130,944 ) Total fixed maturities $ 3,973,908 $ (391,847 ) $ 403,500 $ (171,733 ) $ 4,377,408 $ (563,580 ) |
Schedule of Additional Information about Investments in Unrealized Loss Position | Additional information about investments in an unrealized loss position is as follows: Less than Twelve Total Number of issues (CUSIP numbers) held: As of December 31, 2016 407 94 501 As of December 31, 2015 480 75 555 |
Schedule of Other Long-Term Investments | Other long-term investments consist of the following: Year Ended December 31, 2016 2015 Investment in limited partnerships $ 51,509 $ 31,409 Low-income housing interests — 3,767 Other 2,343 3,262 Total $ 53,852 $ 38,438 |
Schedule Of Percentages Of Investments By Major Components At Fair Value | At December 31, 2016 , the investment portfolio, at fair value, consisted of the following: Investment grade fixed maturities: Corporate securities 80 % Securities of state and municipal governments 9 Government-sponsored enterprises 2 Other 1 Below investment grade fixed maturities: Corporate securities 4 Other — Policy loans, which are secured by the underlying insurance policy values 3 Other investments 1 100 % |
Schedule Of Industry Concentrations Held In Corporate Portfolio | Below are the ten largest industry concentrations held in the corporate portfolio of corporate debt securities and redeemable preferred stocks at December 31, 2016 , based on fair value: Insurance 17 % Electric utilities 12 Oil and natural gas pipelines 6 Banks 6 Oil and natural gas exploration and production 4 Transportation 4 Chemicals 4 Metals and mining 3 Food 3 Real estate investment trusts 3 |
Deferred Acquisition Costs (Tab
Deferred Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Analysis of Deferred Acquisition Costs | An analysis of deferred acquisition costs is as follows: Year Ended December 31, 2016 2015 2014 Balance at beginning of year $ 3,617,135 $ 3,457,397 $ 3,325,433 Additions: Deferred during period: Commissions 436,252 401,166 358,969 Other expenses 199,066 211,015 203,276 Total deferred 635,318 612,181 562,245 Foreign exchange adjustment 2,180 — — Adjustment attributable to unrealized investment losses (1) — 8,682 — Total additions 637,498 620,863 562,245 Deductions: Amortized during period (469,063 ) (445,625 ) (415,914 ) Foreign exchange adjustment — (15,500 ) (8,167 ) Adjustment attributable to unrealized investment gains (1) (2,412 ) — (6,200 ) Total deductions (471,475 ) (461,125 ) (430,281 ) Balance at end of year $ 3,783,158 $ 3,617,135 $ 3,457,397 (1) Represents amounts pertaining to investments relating to universal life-type products. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The net assets related to discontinued operations at December 31, 2016 and 2015 were as follows: At December 31, 2016 2015 Assets: Due premiums $ 8,840 $ 8,041 Other receivables (1) 118,692 287,765 Deferred acquisition costs — 17,037 Total assets related to discontinued operations 127,532 312,843 Liabilities: Unearned and advance premiums 67 806 Policy claims and other benefits payable 10,868 12,309 Risk sharing payable 8,374 23,837 Current and deferred income taxes payable 3,820 13,604 Other (2) 4,295 479 Total liabilities related to discontinued operations 27,424 51,035 Net assets $ 100,108 $ 261,808 (1) At December 31, 2016 , other receivables included $50 million from CMS and $69 million from drug manufacturer rebates. At December 31, 2015 , the comparable amounts were $193 million and $95 million , respectively. (2) Balance includes $3.6 million contingent sale price reserve for the year ended December 31, 2016 . Income from discontinued operations for the three years ended December 31, 2016 is as follows: Year Ended December 31, 2016 2015 2014 Revenue: Health premium $ 222,840 $ 260,657 $ 373,280 Benefits and expenses: Health policyholder benefits 183,423 213,114 315,816 Amortization of deferred acquisition costs 3,747 3,506 2,858 Commissions, premium taxes, and non-deferred acquisition expenses 16,396 20,909 26,613 Other operating expense 5,377 6,502 5,123 Total benefits and expenses 208,943 244,031 350,410 Income before income taxes for discontinued operations 13,897 16,626 22,870 Gain from sale of discontinued operations 1,779 — — Income taxes (5,487 ) (5,819 ) (8,005 ) Income from discontinued operations $ 10,189 $ 10,807 $ 14,865 Income taxes paid related to discontinued operations for the three years ended December 31, 2016 were as follows: Year Ended December 31, 2016 2015 2014 Income taxes paid $ 15,271 $ 3,409 $ 12,013 |
Liability for Unpaid Claims (Ta
Liability for Unpaid Claims (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Summary of Liability for Unpaid Health Claims | Activity in the liability for unpaid health claims is summarized as follows: Year Ended December 31, 2016 2015 2014 Balance at beginning of year $ 137,120 $ 128,265 $ 116,559 Incurred related to: Current year 510,075 502,009 453,014 Prior years (1,127 ) (7,845 ) 804 Total incurred 508,948 494,164 453,818 Paid related to: Current year 386,278 379,037 343,648 Prior years 116,662 106,272 98,464 Total paid 502,940 485,309 442,112 Balance at end of year $ 143,128 $ 137,120 $ 128,265 |
Short-duration Insurance Contracts, Claims Development | The below table illustrates the total incurred claims for short-duration products over the last five years. Claim frequency is determined by duration and incurred date. For the years ended December 31, As of December 31, 2016 Cumulative incurred claims (1) Total of incurred-but-not-reported liabilities plus expected development on reported claims Cumulative number of reported claims (1) Accident Year 2012 2013 2014 2015 2016 2012 $ 84,975 $ 83,965 $ 83,928 $ 83,906 $ 83,906 $ — 1,357 2013 84,111 82,644 83,151 83,119 — 1,337 2014 101,407 99,876 99,810 19 1,600 2015 141,667 141,460 478 2,222 2016 140,944 26,224 1,863 Total $ 549,239 $ 26,721 (1) The incurred claims and cumulative number of reported claims for all years prior to 2016 are unaudited. This table illustrates the total cumulative paid claims and allocated claims for short-duration products over the last five years: Cumulative paid claims (1) For the years ended December 31, Accident Year 2012 2013 2014 2015 2016 2012 $ 68,742 $ 83,766 $ 83,919 $ 83,906 $ 83,906 2013 68,159 82,408 83,131 83,119 2014 81,054 99,545 99,791 2015 115,922 140,982 2016 114,720 Total 522,518 Short-duration claim liability as of December 31, 2016 26,721 Total incurred claims & IBNR $ 549,239 (1) The cumulative paid claims for all years prior to 2016 are unaudited. |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | Below is the reconciliation of the net incurred and paid claims development tables to the liability for "Policy claims and other benefits payable" in the Consolidated Balance Sheets . December 31, 2016 Policy claims and other benefits payable: Short-duration products $ 26,721 Insurance lines other than short duration—health 116,407 Insurance lines other than short duration—life 156,437 Total policy claims and other benefits payable $ 299,565 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of Income Taxes | The components of income taxes were as follows: Year Ended December 31, 2016 2015 2014 Income tax expense from continuing operations (1) $ 232,645 $ 249,894 $ 256,603 Shareholders’ equity: Other comprehensive income (loss) 186,206 (411,646 ) 424,089 Tax basis compensation expense (from the exercise of stock options and vesting of restricted stock awards) in excess of amounts recognized for financial reporting purposes (1) — (17,577 ) (18,524 ) $ 418,851 $ (179,329 ) $ 662,168 (1) Due to the adoption of ASU 2016-09, the excess tax benefits related to share-based awards are now recorded through income tax expense rather than additional paid in capital as described in Note 1—Significant Accounting Policies under "Stock Compensation." |
Income Tax Expense from Continuing Operations | Income tax expense from continuing operations consists of: Year Ended December 31, 2016 2015 2014 Current income tax expense $ 132,806 $ 174,284 $ 169,319 Deferred income tax expense 99,839 75,610 87,284 $ 232,645 $ 249,894 $ 256,603 |
Summary of Effective Income Tax Rate | The effective income tax rate differed from the expected 35% rate as shown below: Year Ended December 31, 2016 % 2015 % 2014 % Expected income taxes $ 270,282 35.0 $ 268,165 35.0 $ 274,637 35.0 Increase (reduction) in income taxes resulting from: Low income housing investments (18,202 ) (2.4 ) (19,031 ) (2.5 ) (17,541 ) (2.2 ) Share-based awards (18,653 ) (2.4 ) — — — — Other (782 ) (0.1 ) 760 0.1 (493 ) — Income tax expense from continuing operations $ 232,645 30.1 $ 249,894 32.6 $ 256,603 32.8 |
Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: December 31, 2016 2015 Deferred tax assets: Fixed maturity investments $ 15,004 $ 16,098 Carryover of tax losses 3,906 2,266 Total gross deferred tax assets 18,910 18,364 Deferred tax liabilities: Unrealized gains 315,509 128,683 Employee and agent compensation 92,131 83,229 Deferred acquisition costs 975,873 921,799 Future policy benefits, unearned and advance premiums, and policy claims 391,451 340,854 Other liabilities 3,987 17,176 Total gross deferred tax liabilities 1,778,951 1,491,741 Net deferred tax liability $ 1,760,041 $ 1,473,377 |
Postretirement Benefits (Tables
Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Total Cost of Retirement Plans Charged to Operations | The total cost of these retirement plans charged to operations was as follows: Year Ended December 31, Defined (1) Defined (2) 2016 $ 3,614 $ 24,202 2015 3,429 29,230 2014 3,078 23,463 (1) 401K plans (2) Qualified pension plans and SERPs |
Schedule of Defined Benefit Plans Disclosures | The following table includes activity for the active SERP for the three years ended December 31, 2016 . Year Ended December 31, 2016 2015 2014 Premiums paid for insurance coverage $ 2,050 $ 10,068 $ 2,150 December 31, 2016 2015 Total investments of this SERP: Company owned life insurance $ 37,267 $ 34,178 Exchange Traded Funds (1) 48,999 45,014 $ 86,266 $ 79,192 Liability for this SERP $ 74,687 $ 67,243 (1) There were no deposits in 2016 , 2015 or 2014 . |
Pension Assets by Component at Fair Value | The following table presents the assets of Torchmark’s defined benefit pension plans for the years ended December 31, 2016 and 2015 . Pension Assets by Component at December 31, 2016 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Amount % to Total Corporate bonds: Financial $ $ 41,578 $ $ 41,578 13 Utilities 43,890 43,890 13 Energy 25,427 25,427 8 Other corporates 49,141 49,141 15 Total corporate bonds — 160,036 — 160,036 49 Exchange traded fund (1) 134,771 134,771 41 Other bonds 258 258 — Guaranteed annuity contract (2) 18,997 18,997 6 Short-term investments 7,391 7,391 2 Other 7,418 7,418 2 Grand Total $ 149,580 $ 179,291 $ — $ 328,871 100 (1) A fund including marketable securities that mirror the S&P 500 index. (2) Representing a guaranteed annuity contract issued by Torchmark's subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Pension Plan. Pension Assets by Component at December 31, 2015 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Amount % to Total Equity securities: Financial $ 49,391 $ $ $ 49,391 16 Consumer, Cyclical 24,264 24,264 8 Technology 19,871 19,871 6 Consumer, Non-Cyclical 12,216 12,216 4 Industrial 15,176 15,176 5 Other 2,502 8 2,510 1 Total equity securities 123,420 8 — 123,428 40 Corporate bonds: Financial 36,266 36,266 12 Utilities 43,229 43,229 14 Energy 25,890 25,890 8 Other corporates 40,996 40,996 13 Total corporate bonds — 146,381 — 146,381 47 Other bonds 270 270 — Guaranteed annuity contract (1) 17,082 17,082 6 Short-term investments 15,593 15,593 5 Other 4,842 4,842 2 Grand Total $ 143,855 $ 163,741 $ — $ 307,596 100 (1) Representing a guaranteed annuity contract issued by Torchmark's subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Pension Plan. |
Analysis of Impact on Other Comprehensive Income (Loss) | An analysis of the impact on other comprehensive income (loss) concerning pensions and other postretirement benefits is as follows: Year Ended December 31, 2016 2015 2014 Balance at January 1 $ (152,149 ) $ (152,999 ) $ (97,467 ) Amortization of: Prior service cost 477 377 2,113 Net actuarial (gain) loss (1) 9,691 14,209 8,172 Total amortization 10,168 14,586 10,285 Plan amendments — (2,104 ) — Experience gain (loss) (31,902 ) (11,632 ) (65,817 ) Balance at December 31 $ (173,883 ) $ (152,149 ) $ (152,999 ) (1) Includes amortization of postretirement benefits other than pensions of $33 thousand in 2016 , $120 thousand in 2015 , and $2 thousand in 2014 . |
Portion of Other Comprehensive Income Expected to Be Reflected in Pension Expense in Next Year | The portion of other comprehensive income that is expected to be reflected in pension expense in 2017 is as follows: Amortization of prior service cost $ 476 Amortization of net actuarial loss 11,806 Total $ 12,282 |
Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Weighted Average Assumptions | Weighted Average Pension Plan Assumptions For Benefit Obligations at December 31: 2016 2015 Discount Rate 4.27 % 4.64 % Rate of Compensation Increase 4.31 4.33 For Periodic Benefit Cost for the Year: 2016 2015 2014 Discount Rate 4.64 % 4.23 % 5.12 % Expected Long-Term Returns 7.19 6.96 6.97 Rate of Compensation Increase 4.33 4.35 4.35 |
Components of Net Periodic Pension Costs and Post-Retirement Benefit Costs | Net periodic pension cost for the defined benefit plans by expense component was as follows: Year Ended December 31, 2016 2015 2014 Service cost—benefits earned during the period $ 15,502 $ 15,902 $ 12,925 Interest cost on projected benefit obligation 21,631 19,887 19,270 Expected return on assets (23,127 ) (21,204 ) (19,031 ) Net amortization 10,135 14,465 10,283 Recognition of actuarial loss 61 180 16 Net periodic pension cost $ 24,202 $ 29,230 $ 23,463 |
Reconciliation of Benefit Obligation and Plan Assets | The following table presents a reconciliation from the beginning to the end of the year of the projected benefit obligation and plan assets for pensions. This table also presents the amounts previously recognized as a component of accumulated other comprehensive income. Pension Benefits Year Ended December 31, 2016 2015 Changes in benefit obligation: Obligation at beginning of year $ 476,581 $ 477,426 Service cost 15,502 15,902 Interest cost 21,631 19,887 Plan amendments — 2,104 Actuarial loss (gain) 34,667 (19,226 ) Benefits paid (20,859 ) (19,512 ) Obligation at end of year 527,522 476,581 Changes in plan assets: Fair value at beginning of year 307,596 322,898 Return on assets 26,377 (11,333 ) Contributions 15,757 15,543 Benefits paid (20,859 ) (19,512 ) Fair value at end of year 328,871 307,596 Funded status at year end $ (198,651 ) $ (168,985 ) |
Schedule of Amounts Recognized as Components Accumulated Other Comprehensive Income | Amounts recognized in accumulated other comprehensive income consist of: Net loss (gain) $ 167,313 $ 145,623 Prior service cost 4,611 5,088 Net amounts recognized at year end $ 171,924 $ 150,711 |
Estimated Future Payments for Post-Retirement Benefit Plans | Torchmark has estimated its expected pension benefits to be paid over the next ten years as of December 31, 2016 . These estimates use the same assumptions that measure the benefit obligation at December 31, 2015 , taking estimated future employee service into account. Those estimated benefits are as follows: For the year(s) 2017 $ 19,839 2018 21,198 2019 22,516 2020 24,109 2021 25,678 2022-2025 152,071 |
Other Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Weighted Average Assumptions | The table below presents the assumptions used to determine the liabilities and costs of Torchmark’s postretirement benefit plans other than pensions. Weighted Average Assumptions for Postretirement Benefit Plans Other Than Pensions For Benefit Obligations at December 31: 2016 2015 Discount Rate 4.29 % 4.66 % For Periodic Benefit Cost for the Year: 2016 2015 2014 Discount Rate 4.66 % 4.23 % 5.12 % |
Components of Net Periodic Pension Costs and Post-Retirement Benefit Costs | The components of net periodic postretirement benefit cost for plans other than pensions are as follows: Year Ended December 31, 2016 2015 2014 Service cost $ — $ — $ — Interest cost on benefit obligation 1,139 1,075 646 Expected return on plan assets — — — Net amortization 33 120 2 Recognition of net actuarial (gain) loss (132 ) 367 (256 ) Net periodic postretirement benefit cost $ 1,040 $ 1,562 $ 392 |
Reconciliation of Benefit Obligation and Plan Assets | The following table presents a reconciliation of the benefit obligation and plan assets from the beginning to the end of the year. As these plans are unfunded, funded status is equivalent to the accrued benefit liability. Benefits Other Than Pensions Year Ended December 31, 2016 2015 Changes in benefit obligation: Obligation at beginning of year $ 22,479 $ 22,895 Service cost — — Interest cost 1,139 1,075 Actuarial loss (gain) 412 (1,133 ) Benefits paid (309 ) (358 ) Obligation at end of year 23,721 22,479 Changes in plan assets: Fair value at beginning of year — — Return on assets — — Contributions 309 358 Benefits paid (309 ) (358 ) Fair value at end of year — — Funded status at year end $ (23,721 ) $ (22,479 ) |
Schedule of Amounts Recognized as Components Accumulated Other Comprehensive Income | Amounts recognized in accumulated other comprehensive income: Net loss (1) $ 1,959 $ 1,447 Net amounts recognized at year end $ 1,959 $ 1,447 (1) The net loss for benefit plans other than pensions reduces other comprehensive income. |
Estimated Future Payments for Post-Retirement Benefit Plans | Estimated Future Payments for Post-Retirement Benefit Plans Other Than Pensions For the year(s) 2017 $ 1,014 2018 1,133 2019 1,247 2020 1,351 2021 1,462 2022-2025 9,811 |
Supplemental Disclosures of C37
Supplemental Disclosures of Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Noncash Transactions | The following table summarizes Torchmark’s noncash transactions, which are not reflected on the Consolidated Statements of Cash Flows: Year Ended December 31, 2016 2015 2014 Stock-based compensation not involving cash $ 26,326 $ 28,664 $ 32,203 Commitments for low-income housing interests 56,818 68,949 75,706 Exchanges of fixed maturity investments 224,901 — 17,333 Net unsettled security trades 15,020 — — |
Summary of Amounts Paid | The following table summarizes certain amounts paid during the period: Year Ended December 31, 2016 2015 2014 Interest paid $ 81,338 $ 74,792 $ 77,066 Income taxes paid 79,790 110,650 100,922 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Selected Information about Debt Issues | The following table presents information about the terms and outstanding balances of Torchmark’s debt. Selected Information about Debt Issues As of December 31, 2016 2015 Annual Interest Rate Issue Date Periodic Interest Payments Due Outstanding Principal (Par Value) Outstanding Principal (Book Value) Outstanding Principal (Fair Value) Outstanding Principal (Book Value) Long-term debt: Notes, due 5/15/23 (3,5) 7.875 % 5/93 5/15 & 11/15 $ 165,612 $ 164,095 $ 196,496 $ 163,920 Senior Notes, due 6/15/19 (3,7) 9.250 % 6/09 6/15 & 12/15 292,647 291,424 338,363 291,002 Senior Notes, due 9/15/22 (3,7) 3.800 % 9/12 3/15 & 9/15 150,000 148,189 152,777 147,913 Junior Subordinated Debentures due 12/15/52 (4,8,11) 5.875 % 9/12 quarterly 125,000 120,929 124,378 120,898 Junior Subordinated Debentures due 3/15/36 (4,6,11) 4.263 % (12) (10) quarterly 20,000 20,000 20,000 20,000 Junior Subordinated Debentures due 6/15/56 (4,9) 6.125 % 4/16 quarterly 300,000 290,403 302,880 — Term loan due 5/17/21 (1,6) 1.856 % (13) 6/16 monthly 100,000 100,000 100,000 — 1,153,259 1,135,040 1,234,894 743,733 Less current maturity of term loan 1,875 1,875 1,875 — Total long-term debt 1,151,384 1,133,165 1,233,019 743,733 Short-term debt: Senior Notes, due 6/15/16 6.375 % 6/06 6/15 & 12/15 — — — 249,753 Current maturity of term loan 1,875 1,875 1,875 — Commercial paper (2) 262,850 262,600 262,600 240,376 Total short-term debt 264,725 264,475 264,475 490,129 Total debt $ 1,416,109 $ 1,397,640 $ 1,497,494 $ 1,233,862 (1) The term loan has higher priority than all other debt issues. (2) Commercial paper has priority over all other debt except the term loan. (3) All securities, other than the term loan, commercial paper and Junior Subordinated Debentures have equal priority with one another. (4) All Junior Subordinated Debentures have equal priority, but are subordinate to all other issues. (5) Not callable. (6) Callable anytime. (7) Callable subject to “make-whole” premium. (8) Callable as of December 15, 2017. (9) Callable subject to “make-whole” premium until June 15, 2021 and at par on and any time after June 15, 2021. (10) Assumed upon November 1, 2012 acquisition of Family Heritage. (11) Quarterly payments on the 15th of March, June, September, and December. (12) Interest paid at 3 Month LIBOR plus 330 basis points, resets each quarter. (13) Interest paid at 1 Month LIBOR plus 125 basis points, resets each month. |
Schedule of Maturities of Long-term Debt | The following table presents expected scheduled principal payments under our contractual debt obligations: Year Ended December 31, 2017 2018 2019 2020 2021 Thereafter Debt obligations $ 264,725 $ 4,375 $ 299,522 $ 9,375 $ 77,500 $ 760,612 Funded |
Short-Term Borrowings | Credit Facility - Commercial Paper At December 31, 2016 2015 Balance at end of period (at par value) $ 262,850 $ 240,544 Annualized interest rate 0.96 % 0.55 % Letters of credit outstanding $ 177,000 $ 177,000 Remaining amount available under credit line 310,150 332,456 Year Ended December 31, 2016 2015 2014 Average balance outstanding during period $ 301,550 $ 350,851 $ 296,246 Daily-weighted average interest rate (annualized) 0.83 % 0.43 % 0.26 % Maximum daily amount outstanding during period $ 412,676 $ 458,110 $ 343,000 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Summary of Preferred and Common Share Activity | A summary of preferred and common share activity is presented in the following chart. Preferred Stock Common Stock Issued Treasury Stock Issued Treasury Stock 2014: Balance at January 1, 2014 — — 151,218,183 (16,965,802 ) Grants of restricted stock 19,041 Forfeitures of restricted stock (2,700 ) Issuance of common stock due to exercise of stock options 2,210,349 Treasury stock acquired (8,548,795 ) Retirement of treasury stock (17,000,000 ) 17,000,000 Balance at December 31, 2014 — — 134,218,183 (6,287,907 ) 2015: Grants of restricted stock 6,648 Forfeitures of restricted stock (13,950 ) Vesting of performance shares 211,287 Issuance of common stock due to exercise of stock options 1,576,485 Treasury stock acquired (7,340,794 ) Retirement of treasury stock (4,000,000 ) 4,000,000 Balance at December 31, 2015 — — 130,218,183 (7,848,231 ) 2016: Grants of restricted stock 12,549 Vesting of performance shares 159,020 Issuance of common stock due to exercise of stock options 2,184,169 Treasury stock acquired (6,694,582 ) Retirement of treasury stock (3,000,000 ) 3,000,000 Balance at December 31, 2016 — — 127,218,183 (9,187,075 ) |
Reconciliation of Basic and Diluted Weighted Average Shares Outstanding | A reconciliation of basic and diluted weighted-average shares outstanding used in the computation of basic and diluted earnings per share is as follows: Year Ended December 31, 2016 2015 2014 Basic weighted average shares outstanding 120,001,191 125,094,628 130,721,738 Weighted average dilutive options outstanding 2,366,594 1,662,607 1,918,506 Diluted weighted average shares outstanding 122,367,785 126,757,235 132,640,244 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Grant Contract Periods and Vesting Periods | Shares vested by period Contract Period 6 Months Year 1 Year 2 Year 3 Year 4 Year 5 Directors 7 years 100% Employees 7 years —% —% 50% 50% Employees (1) 10 years —% —% 25% 25% 25% 25% (1) Grant offered through the Torchmark Corporation 2011 Incentive Plan only. |
Analysis of Shares Available for Grant | An analysis of shares available for grant is as follows: Available for Grant 2016 2015 2014 Balance at January 1, 6,872,282 8,458,593 4,368,753 2011 Plan amendment — — 6,300,000 Options expired and forfeited during year (1) 8,518 90,371 3,488 Restricted stock expired and forfeited during year (2) — 89,745 31,620 Options granted during year (1) (1,306,306 ) (1,334,514 ) (1,523,982 ) Restricted stock, restricted stock units, and performance shares granted under the Torchmark Corporation 2011 Incentive Plan (2) (486,033 ) (431,913 ) (721,286 ) Balance at December 31, 5,088,461 6,872,282 8,458,593 (1) Plan allows for grant of options such that each grant reduces shares available for grant in a range from 0.85 share to 1 share. (2) Plan allows for grant of restricted stock such that each stock grant reduces shares available for grant in a range from 3.1 shares to 3.88 shares. |
Summary of Stock Compensation Activity | Selected stock option activity for the three years ended December 31, 2016 is presented below: 2016 2015 2014 Weighted-average grant-date fair value of options granted $ 9.04 $ 11.97 $ 14.77 Intrinsic value of options exercised 73,995 54,854 61,229 Cash received from options exercised 61,329 35,958 56,294 Actual tax benefit received 25,898 24,470 23,232 A summary of stock compensation activity for each of the three years ended December 31, 2016 is presented below: 2016 2015 2014 Stock-based compensation expense recognized (1) $ 26,326 $ 28,664 $ 32,203 Tax benefit recognized (2) 27,867 10,033 11,271 (1) No stock-based compensation expense was capitalized in any period. (2) Due to the adoption of ASU 2016-09 as described in Note 1—Significant Accounting Policies under "Accounting Pronouncements Adopted in the Current Year" , certain current year balances related to excess tax benefits from stock compensation were adjusted prospectively. |
Schedule of Additional Information of Stock-Based Compensation | Additional information about Torchmark’s stock option activity as of December 31, 2016 and 2015 is as follows: 2016 2015 Outstanding options: Weighted-average remaining contractual term (in years) 4.70 4.32 Aggregate intrinsic value $ 87,286 $ 141,728 Exercisable options: Weighted-average remaining contractual term (in years) 2.96 2.74 Aggregate intrinsic value $ 63,395 $ 104,885 Additional stock compensation information is as follows at December 31: 2016 2015 Unrecognized compensation (1) $ 27,334 $ 33,977 Weighted average period of expected recognition (in years) (1) 0.89 0.85 (1) Includes restricted stock and performance shares. |
Summary of Options Outstanding | The following table summarizes information about stock options outstanding at December 31, 2016 . Options Outstanding Options Exercisable Range of Number Outstanding Weighted- Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Number Exercisable Weighted- Average Exercise Price $20.58 - $32.48 1,549,010 2.23 $ 30.01 1,470,267 $ 29.99 37.40 - 43.06 1,111,634 3.53 37.67 998,713 37.70 50.64 1,412,225 7.41 50.64 — — 50.69 1,406,282 4.63 50.69 604,802 50.69 51.62 - 56.32 1,494,440 5.65 53.64 42,065 54.79 $20.58 - $56.32 6,973,591 4.70 $ 44.64 3,115,847 $ 36.81 |
Analysis of Option Activity | An analysis of option activity for each of the three years ended December 31, 2016 is as follows: 2016 2015 2014 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding-beginning of year 7,734,841 $ 38.84 7,889,321 $ 32.91 8,579,202 $ 27.84 Granted: 7-year term 834,212 50.78 1,220,751 53.62 1,226,270 50.70 10-year term 597,225 50.64 296,875 53.61 297,712 50.69 Exercised (2,184,169 ) 28.08 (1,576,485 ) 22.81 (2,210,348 ) 25.47 Expired and forfeited (8,518 ) 39.35 (95,621 ) 48.85 (3,488 ) 40.05 Adjustment due to 7/1/14 stock split — — — — (27 ) — Outstanding-end of year 6,973,591 $ 44.64 7,734,841 $ 38.84 7,889,321 $ 32.91 Exercisable at end of year 3,115,847 $ 36.81 3,774,061 $ 29.37 3,809,415 $ 24.58 |
Schedule of Additional Information on Unvested Options | Additional information concerning Torchmark’s unvested options is as follows at December 31: 2016 2015 Number of shares outstanding 3,857,744 3,960,780 Weighted-average exercise price (per share) $ 50.97 $ 47.86 Weighted-average remaining contractual term (in years) 6.11 5.82 Aggregate intrinsic value $ 23,891 $ 36,843 |
Schedule of Performance Shares Settled | Below is the final determination of the performance share grants in 2012 to 2014: Year of grants Final settlement of shares Final settlement date 2012 211,287 January 27, 2015 2013 159,020 February 24, 2016 2014 119,896 February 21, 2017 |
Summary of Restricted Stock and Restricted Stock Units Granted | A summary of restricted stock grants for each of the years in the three-year period ended December 31, 2016 is presented in the table below. 2016 2015 2014 Executives restricted stock: Shares — — 12,000 Price per share $ — $ — $ 50.69 Aggregate value $ — $ — $ 608 Percent vested as of 12/31/16 — % — % — % Directors restricted stock: Shares 12,549 6,648 7,041 Price per share $ 57.39 $ 54.16 $ 51.62 Aggregate value $ 720 $ 360 $ 363 Percent vested as of 12/31/16 85 % 100 % 100 % Directors restricted stock units (including dividend equivalents): Shares 6,912 7,640 12,322 Price per share $ 56.74 $ 54.44 $ 51.69 Aggregate value $ 392 $ 416 $ 637 Percent vested as of 12/31/16 100 % 100 % 100 % Performance shares: Target shares 167,500 179,500 179,250 Target price per share $ 50.64 $ 53.61 $ 51.41 Assumed adjustment for performance objectives (in shares) (35,073 ) (58,056 ) 22,060 Aggregate value $ 8,482 $ 9,623 $ 9,215 Percent vested as of 12/31/16 — % — % — % |
Analysis of Unvested Restricted Stock | An analysis of unvested restricted stock is as follows: Executive Executive Directors Directors Total 2014: Balance at January 1, 2014 344,445 362,550 — — 706,995 Grants 12,000 179,250 7,041 12,322 210,613 Additional performance shares (1) 22,060 22,060 Restriction lapses and settlements (90,315 ) (7,041 ) (12,322 ) (109,678 ) Forfeitures (2,700 ) (7,500 ) (10,200 ) Balance at December 31, 2014 263,430 556,360 — — 819,790 2015: Grants — 179,500 6,648 7,640 193,788 Additional performance shares (1) (58,056 ) (58,056 ) Restriction lapses (61,815 ) (211,287 ) (6,648 ) (7,640 ) (287,390 ) Forfeitures (13,950 ) (7,500 ) (21,450 ) Balance at December 31, 2015 187,665 459,017 — — 646,682 2016: Grants — 167,500 12,549 6,912 186,961 Additional performance shares (1) (35,073 ) (35,073 ) Restriction lapses (130,215 ) (159,020 ) (10,655 ) (6,912 ) (306,802 ) Forfeitures — — — Balance at December 31, 2016 57,450 432,424 1,894 — 491,768 (1) Estimated additional (reduced) share grants expected due to achievement of performance criteria. |
Schedule of Weighted-Average Grant-Date Fair Values of Unvested Restricted Stock | An analysis of the weighted-average grant-date fair values per share of unvested restricted stock is as follows for the year 2016 : Executive Restricted Stock Executive Performance Shares Directors Restricted Stock Directors Restricted Stock Units Grant-date fair value per share at January 1, 2016 $ 32.92 $ 46.77 Grants — 50.64 $ 57.39 $ 56.32 Estimated additional performance shares (70.47 ) Restriction lapses (30.47 ) (37.40 ) (56.32 ) (56.32 ) Forfeitures — — Grant-date fair value per share at December 31, 2016 38.46 49.79 63.39 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Premium Revenue by Each Marketing Group | The tables below present segment premium revenue by each of Torchmark’s marketing groups. Torchmark Corporation Premium Income by Distribution Channel For the Year 2016 Life Health Annuity Total Distribution Channel Amount % of Total Amount % of Total Amount % of Total Amount % of Total United American Independent $ 13,733 1 $ 355,015 38 $ 38 100 $ 368,786 12 Liberty National Exclusive 270,476 12 201,798 21 472,274 15 American Income Exclusive 913,355 42 84,382 9 997,737 32 Family Heritage Exclusive 2,866 — 236,075 25 238,941 8 Direct Response 782,765 36 70,393 7 853,158 27 Other 206,138 9 206,138 6 $ 2,189,333 100 $ 947,663 100 $ 38 100 $ 3,137,034 100 For the Year 2015 Life Health Annuity Total Distribution Channel Amount % of Total Amount % of Total Amount % of Total Amount % of Total United American Independent $ 15,036 1 $ 345,330 37 $ 135 100 $ 360,501 12 Liberty National Exclusive 271,113 13 209,150 23 480,263 16 American Income Exclusive 830,903 40 80,339 9 911,242 30 Family Heritage Exclusive 2,334 — 221,091 24 223,425 8 Direct Response 746,693 36 69,610 7 816,303 27 Other 206,986 10 206,986 7 $ 2,073,065 100 $ 925,520 100 $ 135 100 $ 2,998,720 100 For the Year 2014 Life Health Annuity Total Distribution Channel Amount % of Total Amount % of Total Amount % of Total Amount % of Total United American Independent $ 16,582 1 $ 305,368 35 $ 400 100 $ 322,350 11 Liberty National Exclusive 272,265 14 222,017 25 494,282 18 American Income Exclusive 766,458 39 78,722 9 845,180 30 Family Heritage Exclusive 1,595 — 204,667 24 206,262 7 Direct Response 702,023 36 58,666 7 760,689 27 Other 207,377 10 207,377 7 $ 1,966,300 100 $ 869,440 100 $ 400 100 $ 2,836,140 100 |
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 major income statement line items. See Note 1—Significant Accounting Policies for additional information concerning reconciling items of segment profits to pretax income. For the year 2016 Life Health Annuity Investment Other Corporate Adjustments Consolidated Revenue: Premium $ 2,189,333 $ 947,663 $ 38 $ 3,137,034 Net investment income $ 806,903 806,903 Other income $ 1,534 $ (159 ) (2) 1,375 Total revenue 2,189,333 947,663 38 806,903 1,534 (159 ) 3,945,312 Expenses: Policy benefits 1,475,477 612,725 36,751 3,795 (3) 2,128,748 Required interest on: Policy reserves (577,827 ) (73,382 ) (51,131 ) 702,340 — Deferred acquisition costs 178,946 23,060 807 (202,813 ) — Amortization of acquisition costs 374,499 90,385 4,179 469,063 Commissions, premium taxes, and non-deferred acquisition costs 164,476 84,819 38 (159 ) (2) 249,174 Insurance administrative expense (1) 196,598 553 (4) 197,151 Parent expense $ 8,587 8,587 Stock-based compensation expense 26,326 26,326 Interest expense 83,345 83,345 Total expenses 1,615,571 737,607 (9,356 ) 582,872 196,598 34,913 4,189 3,162,394 Subtotal 573,762 210,056 9,394 224,031 (195,064 ) (34,913 ) (4,348 ) 782,918 Non-operating items 4,348 (3,4) 4,348 Measure of segment profitability (pretax) $ 573,762 $ 210,056 $ 9,394 $ 224,031 $ (195,064 ) $ (34,913 ) $ — 787,266 Deduct applicable income taxes (237,906 ) Net operating income from continuing operations 549,360 Add back income taxes applicable to segment profitability 237,906 Add (deduct) realized investment gains (losses) (10,683 ) Deduct administrative settlements (3) (3,795 ) Deduct non-operating fees (4) (553 ) Income before income taxes per Consolidated Statement of Operations $ 772,235 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. (3) Administrative settlements. (4) Non-operating fees. For the year 2015 Life Health Annuity Investment Other Corporate Adjustments Consolidated Revenue: Premium $ 2,073,065 $ 925,520 $ 135 $ 2,998,720 Net investment income $ 773,951 773,951 Other income $ 2,379 $ (194 ) (2) 2,185 Total revenue 2,073,065 925,520 135 773,951 2,379 (194 ) 3,774,856 Expenses: Policy benefits 1,374,608 602,610 38,994 2,016,212 Required interest on: Policy reserves (552,298 ) (69,057 ) (53,295 ) 674,650 — Deferred acquisition costs 172,947 22,760 1,138 (196,845 ) — Amortization of acquisition costs 353,595 83,341 8,689 445,625 Commissions, premium taxes, and non-deferred acquisition costs 154,811 81,489 41 1,200 (2,3) 237,541 Insurance administrative expense (1) 186,191 186,191 Parent expense $ 9,003 9,003 Stock-based compensation expense 28,664 28,664 Interest expense 76,642 76,642 Total expenses 1,503,663 721,143 (4,433 ) 554,447 186,191 37,667 1,200 2,999,878 Subtotal 569,402 204,377 4,568 219,504 (183,812 ) (37,667 ) (1,394 ) 774,978 Non-operating items 1,394 (3) 1,394 Measure of segment profitability (pretax) $ 569,402 $ 204,377 $ 4,568 $ 219,504 $ (183,812 ) $ (37,667 ) $ — 776,372 Deduct applicable income taxes (253,459 ) Net operating income from continuing operations 522,913 Add back income taxes applicable to segment profitability 253,459 Add (deduct) realized investment gains (losses) (8,791 ) Deduct administrative settlements (3) (1,394 ) Income before income taxes per Consolidated Statement of Operations $ 766,187 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. (3) Administrative settlements. For the Year 2014 Life Health Annuity Investment Other Corporate Adjustments Consolidated Revenue: Premium $ 1,966,300 $ 869,440 $ 400 $ 2,836,140 Net investment income $ 758,286 758,286 Other income $ 2,354 $ (233 ) (2) 2,121 Total revenue 1,966,300 869,440 400 758,286 2,354 (233 ) 3,596,547 Expenses: Policy benefits 1,293,384 559,817 42,005 8,178 (4) 1,903,384 Required interest on: Policy reserves (530,192 ) (64,401 ) (55,255 ) 649,848 — Deferred acquisition costs 168,100 22,499 1,453 (192,052 ) — Amortization of acquisition costs 335,345 72,731 7,838 415,914 Commissions, premium taxes, and non-deferred acquisition costs 143,174 79,475 47 (233 ) (2) 222,463 Insurance administrative expense (1) 174,832 2,422 (3) 177,254 Parent expense $ 8,159 (85 ) (3) 8,074 Stock-based compensation expense 32,203 32,203 Interest expense 76,126 76,126 Total expenses 1,409,811 670,121 (3,912 ) 533,922 174,832 40,362 10,282 2,835,418 Subtotal 556,489 199,319 4,312 224,364 (172,478 ) (40,362 ) (10,515 ) 761,129 Non-operating items 10,515 (3,4) 10,515 Measure of segment profitability (pretax) $ 556,489 $ 199,319 $ 4,312 $ 224,364 $ (172,478 ) $ (40,362 ) $ — 771,644 Deduct applicable income taxes (252,041 ) Net operating income from continuing operations 519,603 Add back income taxes applicable to segment profitability 252,041 Add (deduct) realized investment gains (losses) 23,548 Deduct legal settlement expenses (3) (2,337 ) Deduct administrative settlements (4) (8,178 ) Income before income taxes per Consolidated Statement of Operations $ 784,677 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. (3) Legal settlement expenses. (4) Administrative settlements. |
Analysis of Profitability by Segment | The following table summarizes the measures of segment profitability as determined in the three preceding tables for comparison with prior periods. The table also reconciles segment profits to net income. Analysis of Profitability by Segment 2016 2015 2014 2016 % 2015 % Life insurance underwriting margin $ 573,762 $ 569,402 $ 556,489 $ 4,360 1 $ 12,913 2 Health insurance underwriting margin 210,056 204,377 199,319 5,679 3 5,058 3 Annuity underwriting margin 9,394 4,568 4,312 4,826 106 256 6 Excess investment income 224,031 219,504 224,364 4,527 2 (4,860 ) (2 ) Other insurance: Other income 1,534 2,379 2,354 (845 ) (36 ) 25 1 Administrative expense (196,598 ) (186,191 ) (174,832 ) (10,407 ) 6 (11,359 ) 6 Corporate and adjustments (34,913 ) (37,667 ) (40,362 ) 2,754 (7 ) 2,695 (7 ) Pre-tax total 787,266 776,372 771,644 10,894 1 4,728 1 Applicable taxes (1) (237,906 ) (253,459 ) (252,041 ) 15,553 (6 ) (1,418 ) 1 Net operating income from continuing operations 549,360 522,913 519,603 26,447 5 3,310 1 Discontinued operations (after tax) (2) 10,189 10,807 14,865 (618 ) (6 ) (4,058 ) (27 ) Total 559,549 533,720 534,468 25,829 5 (748 ) — Realized gains (losses)—investments (after tax) (6,944 ) (5,714 ) 15,306 (1,230 ) (21,020 ) Legal settlement expenses (after tax) — — (1,519 ) — 1,519 Administrative settlements (after tax) (2,467 ) (906 ) (5,316 ) (1,561 ) 4,410 Non-operating fees (after tax) (359 ) — — (359 ) — Net income $ 549,779 $ 527,100 $ 542,939 $ 22,679 4 $ (15,839 ) (3 ) (1) Certain current year amounts were prospectively adjusted to give effect to the adoption of ASU 2016-09 related to excess tax benefits from stock compensation as described in Note 1—Significant Accounting Policies under "Accounting Pronouncements Adopted in the Current Year." (2) Income from discontinued operations (after tax) is included for purposes of reconciling to net income. |
Assets by Segment | The table below reconciles segment assets to total assets as reported in the consolidated financial statements. Assets by Segment At December 31, 2016 Life Health Annuity Investment Other Consolidated Cash and invested assets $ 15,955,891 $ 15,955,891 Accrued investment income 223,148 223,148 Deferred acquisition costs $ 3,261,220 $ 512,701 $ 9,237 3,783,158 Goodwill 309,609 131,982 441,591 Other assets $ 1,032,299 1,032,299 Total assets $ 3,570,829 $ 644,683 $ 9,237 $ 16,179,039 $ 1,032,299 $ 21,436,087 At December 31, 2015 Life Health Annuity Investment Other Consolidated Cash and invested assets $ 14,405,073 $ 14,405,073 Accrued investment income 209,915 209,915 Deferred acquisition costs $ 3,098,656 $ 502,535 $ 15,944 3,617,135 Goodwill 309,609 131,982 441,591 Other assets $ 1,179,499 1,179,499 Total assets $ 3,408,265 $ 634,517 $ 15,944 $ 14,614,988 $ 1,179,499 $ 19,853,213 |
Other Balances by Segment | Liabilities by Segment At December 31, 2016 Life Health Annuity Investment Other Consolidated Future policy benefits $ 9,825,776 $ 1,706,870 $ 1,293,191 $ 12,825,837 Unearned and advance premiums 16,828 47,189 64,017 Policy claims and other benefits payable 156,437 143,128 299,565 Debt $ 1,397,640 1,397,640 Other $ 2,282,167 2,282,167 Total liabilities $ 9,999,041 $ 1,897,187 $ 1,293,191 $ 1,397,640 $ 2,282,167 $ 16,869,226 At December 31, 2015 Life Health Annuity Investment Other Consolidated Future policy benefits $ 9,327,561 $ 1,600,240 $ 1,318,010 $ 12,245,811 Unearned and advance premiums 17,381 49,640 67,021 Policy claims and other benefits payable 135,778 137,120 272,898 Debt $ 1,233,862 1,233,862 Other $ 1,978,069 1,978,069 Total liabilities $ 9,480,720 $ 1,787,000 $ 1,318,010 $ 1,233,862 $ 1,978,069 $ 15,797,661 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases of Lessee Disclosure | Rental expense for operating leases for each of the three years ended December 31, 2016 is as follows: Year Ended December 31, 2016 2015 2014 Rental expense $ 6,520 $ 6,722 $ 4,200 Future minimum rental commitments required under operating leases having remaining noncancelable lease terms in excess of one year at December 31, 2016 were as follows: Year Ended December 31, 2017 2018 2019 2020 2021 Thereafter Operating lease commitments $ 8,182 $ 5,254 $ 5,047 $ 4,898 $ 4,625 $ 7,801 |
Long-term Purchase Commitment | As of December 31, 2016 , Torchmark remained obligated under these commitments as follows: Year Ended December 31, 2017 2018 2019 2020 2021 Thereafter Low-Income housing commitments $ 34,162 $ 18,350 $ 2,964 $ 838 $ 302 $ 202 |
Selected Quarterly Data (Unau43
Selected Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Quarterly Data | The following is an unaudited summary of quarterly results for the two years ended December 31, 2016 . The information includes all adjustments (consisting of normal accruals) which management considers necessary for a fair presentation of the results of operations for these periods. Three Months Ended March 31, June 30, September 30, December 31, 2016: Premium income $ 779,860 $ 785,855 $ 783,411 $ 787,908 Net investment income 197,053 201,642 202,720 205,488 Realized investment gains (losses) 293 4,005 3,482 (18,463 ) Total revenue 977,627 991,884 989,773 975,345 Policyholder benefits 524,973 531,485 532,152 540,138 Amortization of deferred acquisition costs 118,806 117,245 116,821 116,191 Pretax income from continuing operations 195,448 199,344 201,461 175,982 Income from continuing operations 133,574 139,294 141,910 124,812 Income from discontinued operations (9,541 ) (865 ) 9,959 10,636 Net income (1) 124,033 138,429 151,869 135,448 Basic net income per common share: Continuing operations 1.10 1.16 1.19 1.05 Discontinued operations (0.08 ) (0.01 ) 0.08 0.09 Total basic net income per share 1.02 1.15 1.27 1.14 Diluted net income per common share: (1) Continuing operations 1.08 1.13 1.16 1.03 Discontinued operations (0.07 ) — 0.09 0.09 Total diluted net income per share 1.01 1.13 1.25 1.12 2015: Premium income $ 742,056 $ 752,484 $ 748,109 $ 756,071 Net investment income 191,596 194,823 193,213 194,319 Realized investment gains (losses) 119 2,613 5,140 (16,663 ) Total revenue 934,440 950,611 947,154 933,860 Policyholder benefits 497,775 508,316 501,156 508,965 Amortization of deferred acquisition costs 110,660 111,738 111,643 111,584 Pretax income from continuing operations 194,477 196,723 199,009 175,978 Income from continuing operations 130,778 132,527 133,858 119,130 Income from discontinued operations (9,130 ) (5,417 ) 11,528 13,826 Net income 121,648 127,110 145,386 132,956 Basic net income per common share: Continuing operations 1.03 1.05 1.08 0.97 Discontinued operations (0.07 ) (0.04 ) 0.09 0.11 Total basic net income per share 0.96 1.01 1.17 1.08 Diluted net income per common share: Continuing operations 1.02 1.04 1.06 0.96 Discontinued operations (0.07 ) (0.04 ) 0.09 0.11 Total diluted net income per share 0.95 1.00 1.15 1.07 (1) Due to the adoption in 2016 of ASU 2016-09, certain current year balances related to excess tax benefits from stock compensation were adjusted prospectively as described in Note 1—Significant Accounting Policies under "Stock Compensation." |
Significant Accounting Polici44
Significant Accounting Policies - Additional Information (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)segment$ / sharesshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | ||
Significant Accounting Policies [Line Items] | ||||
Number of reportable segments | segment | 4 | |||
Percentage of investment securities not classified as corporate securities, state and municipal securities, redeemable preferred stocks and U.S. government securities (less than) | 1.00% | |||
Fair value determined by third party | 95.00% | |||
Amortized cost | $ 14,188,050 | $ 13,251,871 | ||
Fair Value | 15,245,861 | 13,758,024 | ||
Advanced agent commissions receivable | 353,000 | 334,000 | ||
Advertising costs charged to earnings and included in other operating expense | 9,000 | 10,000 | $ 8,000 | |
Capitalized advertising costs | 1,250,000 | 1,210,000 | ||
Carrying value of investment in low-income housing interests | 280,000 | 306,000 | ||
Obligations under future commitments for low-income housing interests | 57,000 | |||
Original cost of property and equipment | 196,000 | 175,000 | ||
Accumulated depreciation | 99,000 | 92,000 | ||
Depreciation expense | $ 9,800 | 8,000 | 7,400 | |
Traditional life and health, interest rate, low end | 2.50% | |||
Traditional life and health, interest rate, high end | 7.00% | |||
Traditional life and health, weighted average interest rate | 5.70% | |||
Insurance policy charges | $ 18,300 | $ 19,300 | $ 20,900 | |
Excess tax benefits | $ 27,867 | |||
Diluted weighted average shares outstanding | shares | 122,367,785 | 126,757,235 | 132,640,244 | |
Excess tax benefit from stock option exercises, financing activities | [1] | $ 0 | $ 17,577 | $ 18,524 |
Minimum | Equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Property and equipment, estimated useful life | 3 years | |||
Minimum | Building and Improvements | ||||
Significant Accounting Policies [Line Items] | ||||
Property and equipment, estimated useful life | 5 years | |||
Maximum | Equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Property and equipment, estimated useful life | 10 years | |||
Maximum | Building and Improvements | ||||
Significant Accounting Policies [Line Items] | ||||
Property and equipment, estimated useful life | 40 years | |||
Life insurance | ||||
Significant Accounting Policies [Line Items] | ||||
Proportion of future policy reserves which are not universal life type | 86.00% | |||
Equity Option | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Option grants contractual term | 7 years | |||
Equity Option | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Option grants contractual term | 10 years | |||
Employee | Equity Option | 5 Year Vesting Period | Torchmark Corporation 2011 Incentive Plan | ||||
Significant Accounting Policies [Line Items] | ||||
Option grants contractual term | 10 years | |||
Vesting period | 5 years | |||
Employee | Equity Option | 3 Year Vesting Period | Torchmark Corporation 2011 Incentive Plan | ||||
Significant Accounting Policies [Line Items] | ||||
Option grants contractual term | 7 years | |||
Vesting period | 3 years | |||
Director | Equity Option | Torchmark Corporation 2011 Incentive Plan | ||||
Significant Accounting Policies [Line Items] | ||||
Vesting period | 6 months | |||
Other assets | ||||
Significant Accounting Policies [Line Items] | ||||
Carrying value of investment in low-income housing interests | $ 280,000 | 302,000 | ||
Other long-term investments | ||||
Significant Accounting Policies [Line Items] | ||||
Carrying value of investment in low-income housing interests | 4,000 | |||
Private placement fixed maturities | ||||
Significant Accounting Policies [Line Items] | ||||
Amortized cost | 565,000 | 542,000 | ||
Fair Value | 574,000 | 546,000 | ||
Fair Value, Inputs, Level 2 | ||||
Significant Accounting Policies [Line Items] | ||||
Fair Value | 14,577,456 | 13,124,523 | ||
Fair Value, Inputs, Level 2 | Private placement fixed maturities | ||||
Significant Accounting Policies [Line Items] | ||||
Fair Value | 15,000 | 15,000 | ||
Fair Value, Inputs, Level 3 | ||||
Significant Accounting Policies [Line Items] | ||||
Fair Value | 623,103 | 601,188 | ||
Fair Value, Inputs, Level 3 | Private placement fixed maturities | ||||
Significant Accounting Policies [Line Items] | ||||
Fair Value | 559,000 | 531,000 | ||
New Accounting Pronouncement, Early Adoption, Effect | ||||
Significant Accounting Policies [Line Items] | ||||
Excess tax benefits | $ 20,000 | |||
Diluted weighted average shares outstanding | shares | 122,400,000 | |||
Increase in earnings per share as a result of the adoption (in dollars per share) | $ / shares | $ 0.13 | |||
Previous Accounting Guidance | ||||
Significant Accounting Policies [Line Items] | ||||
Excess tax benefits | $ 18,000 | 19,000 | ||
Diluted weighted average shares outstanding | shares | 121,500,000 | |||
Excess tax benefit from stock option exercises, financing activities | $ 18,000 | $ 19,000 | ||
Accounting Standards Update 2016-09 | ||||
Significant Accounting Policies [Line Items] | ||||
Excess tax benefit from stock option exercises, operating activities | $ 20,000 | |||
[1] | Certain current year amounts were prospectively adjusted to give effect to the adoption of ASU 2016-09 related to excess tax benefits from stock compensation as described in Note 1—Significant Accounting Policies under "Accounting Pronouncements Adopted in the Current Year." |
Significant Accounting Polici45
Significant Accounting Policies - Summary of Assumptions for Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Volatility factor | 19.20% | 23.60% | 30.90% |
Dividend yield | 1.10% | 0.90% | 0.90% |
Expected term (in years) | 5 years 9 months 11 days | 5 years 7 months 28 days | 5 years 7 months 24 days |
Risk-free rate | 1.30% | 1.60% | 1.90% |
Statutory Accounting - Consolid
Statutory Accounting - Consolidated Net Income and Shareholders' Equity for Insurance Companies (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Insurance [Abstract] | |||
Life insurance subsidiaries, Net income | $ 429,563 | $ 393,466 | $ 446,439 |
Life insurance subsidiaries, Shareholders' equity | $ 1,335,070 | $ 1,253,007 |
Statutory Accounting - Addition
Statutory Accounting - Additional Information (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Insurance [Abstract] | |
Surplus adequate to satisfy regulatory compliance | $ 477 |
Supplemental Information abou48
Supplemental Information about Changes to Accumulated Other Comprehensive Income - Schedule of Change in Balance by Component of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Increase (Decrease) in AOCI, Net of Tax | |||
Beginning balance | $ 4,055,552 | $ 4,697,466 | $ 3,776,342 |
Reclassifications, net of tax | 10,574 | 11,517 | (14,370) |
Ending balance | 4,566,861 | 4,055,552 | 4,697,466 |
Total [Member] | |||
Increase (Decrease) in AOCI, Net of Tax | |||
Beginning balance | 231,947 | 997,452 | 210,981 |
Other comprehensive income (loss) before reclassifications, net of tax | 335,053 | (777,022) | 800,841 |
Reclassifications, net of tax | 10,574 | 11,517 | (14,370) |
Other comprehensive income (loss) | 345,627 | (765,505) | 786,471 |
Ending balance | 577,574 | 231,947 | 997,452 |
Available for Sale Assets | |||
Increase (Decrease) in AOCI, Net of Tax | |||
Beginning balance | 332,333 | 1,090,273 | 256,196 |
Other comprehensive income (loss) before reclassifications, net of tax | 356,016 | (759,976) | 855,132 |
Reclassifications, net of tax | 3,965 | 2,036 | (21,055) |
Other comprehensive income (loss) | 359,981 | (757,940) | 834,077 |
Ending balance | 692,314 | 332,333 | 1,090,273 |
Deferred Acquisition Costs | |||
Increase (Decrease) in AOCI, Net of Tax | |||
Beginning balance | (5,115) | (10,758) | (6,728) |
Other comprehensive income (loss) before reclassifications, net of tax | (1,567) | 5,643 | (4,030) |
Reclassifications, net of tax | 0 | 0 | 0 |
Other comprehensive income (loss) | (1,567) | 5,643 | (4,030) |
Ending balance | (6,682) | (5,115) | (10,758) |
Foreign Exchange | |||
Increase (Decrease) in AOCI, Net of Tax | |||
Beginning balance | 3,627 | 17,386 | 24,866 |
Other comprehensive income (loss) before reclassifications, net of tax | 1,340 | (13,759) | (7,480) |
Reclassifications, net of tax | 0 | 0 | 0 |
Other comprehensive income (loss) | 1,340 | (13,759) | (7,480) |
Ending balance | 4,967 | 3,627 | 17,386 |
Pension Adjustments | |||
Increase (Decrease) in AOCI, Net of Tax | |||
Beginning balance | (98,898) | (99,449) | (63,353) |
Other comprehensive income (loss) before reclassifications, net of tax | (20,736) | (8,930) | (42,781) |
Reclassifications, net of tax | 6,609 | 9,481 | 6,685 |
Other comprehensive income (loss) | (14,127) | 551 | (36,096) |
Ending balance | $ (113,025) | $ (98,898) | $ (99,449) |
Supplemental Information abou49
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 | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Unrealized gains (losses) on available for sale assets: | ||||||||||||
Realized (gains) losses | $ 10,683 | $ 8,791 | $ (23,548) | |||||||||
Amortization of (discount) premium | $ (205,488) | $ (202,720) | $ (201,642) | $ (197,053) | $ (194,319) | $ (193,213) | $ (194,823) | $ (191,596) | (806,903) | (773,951) | (758,286) | |
Income before income taxes | (175,982) | (201,461) | (199,344) | (195,448) | (175,978) | (199,009) | (196,723) | (194,477) | (772,235) | (766,187) | (784,677) | |
Income tax expense from continuing operations | [1] | 232,645 | 249,894 | 256,603 | ||||||||
Net income | $ (135,448) | $ (151,869) | $ (138,429) | $ (124,033) | $ (132,956) | $ (145,386) | $ (127,110) | $ (121,648) | (549,779) | (527,100) | (542,939) | |
Pension adjustments: | ||||||||||||
Other operating expenses | (232,064) | (223,858) | (217,531) | |||||||||
Total reclassifications (after tax) | 10,574 | 11,517 | (14,370) | |||||||||
Unrealized Gains (Losses) on Available for Sale Assets | ||||||||||||
Pension adjustments: | ||||||||||||
Total reclassifications (after tax) | 3,965 | 2,036 | (21,055) | |||||||||
Pension Adjustments, Amortization of Prior Service Cost | ||||||||||||
Pension adjustments: | ||||||||||||
Other operating expenses | 477 | 377 | 2,113 | |||||||||
Pension Adjustments, Amortization of Actuarial (Gain) Loss | ||||||||||||
Pension adjustments: | ||||||||||||
Other operating expenses | 9,691 | 14,209 | 8,172 | |||||||||
Pension Adjustments | ||||||||||||
Unrealized gains (losses) on available for sale assets: | ||||||||||||
Income before income taxes | 10,168 | 14,586 | 10,285 | |||||||||
Income tax expense from continuing operations | (3,559) | (5,105) | (3,600) | |||||||||
Net income | 6,609 | 9,481 | 6,685 | |||||||||
Pension adjustments: | ||||||||||||
Total reclassifications (after tax) | 6,609 | 9,481 | 6,685 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Available for Sale Assets | ||||||||||||
Unrealized gains (losses) on available for sale assets: | ||||||||||||
Realized (gains) losses | 10,285 | 9,478 | (23,771) | |||||||||
Amortization of (discount) premium | (4,185) | (6,346) | (8,621) | |||||||||
Income before income taxes | 6,100 | 3,132 | (32,392) | |||||||||
Income tax expense from continuing operations | (2,135) | (1,096) | 11,337 | |||||||||
Net income | $ 3,965 | $ 2,036 | $ (21,055) | |||||||||
[1] | Certain current year amounts were prospectively adjusted to give effect to the adoption of ASU 2016-09 related to excess tax benefits from stock compensation as described in Note 1—Significant Accounting Policies under "Accounting Pronouncements Adopted in the Current Year." |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturities Available for Sale by Component (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 14,188,050 | $ 13,251,871 |
Gross Unrealized Gains | 1,273,795 | 1,069,733 |
Gross Unrealized Losses | (215,984) | (563,580) |
Fair Value | $ 15,245,861 | $ 13,758,024 |
Percentage of Total Fixed Maturities | 100.00% | 100.00% |
U.S. Government direct, guaranteed, and government-sponsored enterprises | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 381,054 | $ 368,718 |
Gross Unrealized Gains | 895 | 404 |
Gross Unrealized Losses | (9,151) | (14,078) |
Fair Value | $ 372,798 | $ 355,044 |
Percentage of Total Fixed Maturities | 3.00% | 3.00% |
States, municipalities, and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 1,284,605 | $ 1,296,396 |
Gross Unrealized Gains | 126,850 | 131,516 |
Gross Unrealized Losses | (1,327) | (1,908) |
Fair Value | $ 1,410,128 | $ 1,426,004 |
Percentage of Total Fixed Maturities | 9.00% | 10.00% |
Foreign governments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 21,701 | $ 21,594 |
Gross Unrealized Gains | 1,438 | 1,369 |
Gross Unrealized Losses | (62) | (163) |
Fair Value | $ 23,077 | $ 22,800 |
Percentage of Total Fixed Maturities | 0.00% | 0.00% |
Corporates | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 11,983,092 | $ 11,071,377 |
Gross Unrealized Gains | 1,086,748 | 872,961 |
Gross Unrealized Losses | (187,360) | (533,160) |
Fair Value | $ 12,882,480 | $ 11,411,178 |
Percentage of Total Fixed Maturities | 85.00% | 83.00% |
Corporates | Financial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 2,963,584 | $ 2,760,552 |
Gross Unrealized Gains | 285,037 | 301,624 |
Gross Unrealized Losses | (45,885) | (54,881) |
Fair Value | $ 3,202,736 | $ 3,007,295 |
Percentage of Total Fixed Maturities | 21.00% | 22.00% |
Corporates | Utilities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 1,875,946 | $ 1,981,241 |
Gross Unrealized Gains | 249,701 | 223,535 |
Gross Unrealized Losses | (12,604) | (28,267) |
Fair Value | $ 2,113,043 | $ 2,176,509 |
Percentage of Total Fixed Maturities | 14.00% | 16.00% |
Corporates | Energy | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 1,542,426 | $ 1,568,392 |
Gross Unrealized Gains | 127,989 | 53,776 |
Gross Unrealized Losses | (44,324) | (219,101) |
Fair Value | $ 1,626,091 | $ 1,403,067 |
Percentage of Total Fixed Maturities | 11.00% | 10.00% |
Corporates | Other corporate sectors | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 5,601,136 | $ 4,761,192 |
Gross Unrealized Gains | 424,021 | 294,026 |
Gross Unrealized Losses | (84,547) | (230,911) |
Fair Value | $ 5,940,610 | $ 4,824,307 |
Percentage of Total Fixed Maturities | 39.00% | 35.00% |
Collateralized debt obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 60,726 | $ 63,662 |
Gross Unrealized Gains | 13,062 | 16,158 |
Gross Unrealized Losses | (10,285) | (9,438) |
Fair Value | $ 63,503 | $ 70,382 |
Percentage of Total Fixed Maturities | 0.00% | 1.00% |
Other asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 56,410 | $ 18,963 |
Gross Unrealized Gains | 621 | 668 |
Gross Unrealized Losses | (337) | 0 |
Fair Value | $ 56,694 | $ 19,631 |
Percentage of Total Fixed Maturities | 0.00% | 0.00% |
Redeemable preferred stocks | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 400,462 | $ 411,161 |
Gross Unrealized Gains | 44,181 | 46,657 |
Gross Unrealized Losses | (7,462) | (4,833) |
Fair Value | $ 437,181 | $ 452,985 |
Percentage of Total Fixed Maturities | 3.00% | 3.00% |
Redeemable preferred stocks | Financial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 371,862 | $ 382,517 |
Gross Unrealized Gains | 43,383 | 45,926 |
Gross Unrealized Losses | (7,218) | (4,781) |
Fair Value | $ 408,027 | $ 423,662 |
Percentage of Total Fixed Maturities | 3.00% | 3.00% |
Redeemable preferred stocks | Utilities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 28,600 | $ 28,644 |
Gross Unrealized Gains | 798 | 731 |
Gross Unrealized Losses | (244) | (52) |
Fair Value | $ 29,154 | $ 29,323 |
Percentage of Total Fixed Maturities | 0.00% | 0.00% |
Investments - Schedule of Fixed
Investments - Schedule of Fixed Maturities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fixed Maturities Available for Sale, Amortized Cost | ||
Due in one year or less | $ 23,969 | |
Due from one to five years | 640,903 | |
Due from five to ten years | 1,228,081 | |
Due from ten to twenty years | 4,278,896 | |
Due after twenty years | 7,897,726 | |
Mortgage-backed and asset-backed securities | 118,475 | |
Cost or Amortized Cost | 14,188,050 | $ 13,251,871 |
Fixed Maturities Available for Sale, Fair Value | ||
Due in one year or less | 24,573 | |
Due from one to five years | 688,509 | |
Due from five to ten years | 1,337,752 | |
Due from ten to twenty years | 4,746,466 | |
Due after twenty years | 8,326,907 | |
Mortgage-backed and asset-backed securities | 121,654 | |
Total fixed maturities available for sale, Fair Value | $ 15,245,861 | $ 13,758,024 |
Investments - Schedule of Analy
Investments - Schedule of Analysis of Investment Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Investment Income [Line Items] | |||||||||||
Investment income, gross | $ 820,581 | $ 786,542 | $ 769,531 | ||||||||
Less investment expense | (13,678) | (12,591) | (11,245) | ||||||||
Net investment income | $ 205,488 | $ 202,720 | $ 201,642 | $ 197,053 | $ 194,319 | $ 193,213 | $ 194,823 | $ 191,596 | 806,903 | 773,951 | 758,286 |
Fixed maturities | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income, gross | 778,912 | 747,663 | 732,925 | ||||||||
Policy loans | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income, gross | 38,436 | 36,763 | 35,015 | ||||||||
Other long-term investments | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income, gross | 2,786 | 2,021 | 1,516 | ||||||||
Short-term investments | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income, gross | $ 447 | $ 95 | $ 75 |
Investments - Realized Gain (Lo
Investments - Realized Gain (Loss) on Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Gain (Loss) on Investments [Line Items] | |||||||||||
Realized investment gains (losses) | $ (18,463) | $ 3,482 | $ 4,005 | $ 293 | $ (16,663) | $ 5,140 | $ 2,613 | $ 119 | $ (10,683) | $ (8,791) | $ 23,548 |
Applicable tax | 3,739 | 3,077 | (8,242) | ||||||||
Realized gains (losses) from investments, net of tax | (6,944) | (5,714) | 15,306 | ||||||||
Loss on redemption on debt | |||||||||||
Gain (Loss) on Investments [Line Items] | |||||||||||
Realized investment gains (losses) | 0 | 0 | (258) | ||||||||
Fixed maturities | |||||||||||
Gain (Loss) on Investments [Line Items] | |||||||||||
Realized investment gains (losses) | (10,645) | (9,479) | 23,170 | ||||||||
Other investments | |||||||||||
Gain (Loss) on Investments [Line Items] | |||||||||||
Realized investment gains (losses) | $ (38) | $ 688 | $ 636 |
Investments - Unrealized Gain (
Investments - Unrealized Gain (Loss) on Investments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Gain (Loss) on Investments [Line Items] | |||
Net change in unrealized gains (losses) | $ 553,801 | $ (1,166,032) | $ 1,283,062 |
Fixed maturities | |||
Gain (Loss) on Investments [Line Items] | |||
Net change in unrealized gains (losses) | 551,658 | (1,163,295) | 1,279,190 |
Other investments | |||
Gain (Loss) on Investments [Line Items] | |||
Net change in unrealized gains (losses) | $ 2,143 | $ (2,737) | $ 3,872 |
Investments - Schedule of Selec
Investments - Schedule of Selected Information about Sales of Fixed Maturities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from sales | $ 340,434 | $ 226,792 | $ 109,024 |
Fixed maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from sales | 358,285 | 226,792 | 109,024 |
Gross realized gains | 6,133 | 259 | 17,583 |
Gross realized losses | (32,608) | $ (16,894) | $ (1,879) |
Unsettled sales | $ 18,000 |
Investments - Assets Measured a
Investments - Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 15,245,861 | $ 13,758,024 |
Percentage of total | 100.00% | 100.00% |
U.S. Government direct, guaranteed, and government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 372,798 | $ 355,044 |
States, municipalities, and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,410,128 | 1,426,004 |
Foreign governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 23,077 | 22,800 |
Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 12,882,480 | 11,411,178 |
Collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 63,503 | 70,382 |
Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 56,694 | 19,631 |
Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 437,181 | 452,985 |
Financial | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 3,202,736 | 3,007,295 |
Financial | Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 408,027 | 423,662 |
Utilities | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,113,043 | 2,176,509 |
Utilities | Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 29,154 | 29,323 |
Energy | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,626,091 | 1,403,067 |
Other corporate sectors | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 5,940,610 | 4,824,307 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 45,302 | $ 32,313 |
Percentage of total | 0.30% | 0.20% |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government direct, guaranteed, and government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 0 | $ 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | States, municipalities, and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 45,302 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 22,189 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 10,124 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Financial | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Financial | Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 10,124 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Utilities | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 22,189 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Utilities | Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Energy | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other corporate sectors | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 14,577,456 | $ 13,124,523 |
Percentage of total | 95.60% | 95.40% |
Significant Other Observable Inputs (Level 2) | U.S. Government direct, guaranteed, and government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 372,798 | $ 355,044 |
Significant Other Observable Inputs (Level 2) | States, municipalities, and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,364,826 | 1,426,004 |
Significant Other Observable Inputs (Level 2) | Foreign governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 23,077 | 22,800 |
Significant Other Observable Inputs (Level 2) | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 12,322,880 | 10,858,183 |
Significant Other Observable Inputs (Level 2) | Collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 56,694 | 19,631 |
Significant Other Observable Inputs (Level 2) | Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 437,181 | 442,861 |
Significant Other Observable Inputs (Level 2) | Financial | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 3,141,611 | 2,945,048 |
Significant Other Observable Inputs (Level 2) | Financial | Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 408,027 | 413,538 |
Significant Other Observable Inputs (Level 2) | Utilities | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,959,143 | 2,020,268 |
Significant Other Observable Inputs (Level 2) | Utilities | Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 29,154 | 29,323 |
Significant Other Observable Inputs (Level 2) | Energy | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,598,976 | 1,377,861 |
Significant Other Observable Inputs (Level 2) | Other corporate sectors | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 5,623,150 | 4,515,006 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 623,103 | $ 601,188 |
Percentage of total | 4.10% | 4.40% |
Significant Unobservable Inputs (Level 3) | U.S. Government direct, guaranteed, and government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 0 | $ 0 |
Significant Unobservable Inputs (Level 3) | States, municipalities, and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Foreign governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 559,600 | 530,806 |
Significant Unobservable Inputs (Level 3) | Collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 63,503 | 70,382 |
Significant Unobservable Inputs (Level 3) | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Financial | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 61,125 | 62,247 |
Significant Unobservable Inputs (Level 3) | Financial | Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Utilities | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 153,900 | 134,052 |
Significant Unobservable Inputs (Level 3) | Utilities | Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Energy | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 27,115 | 25,206 |
Significant Unobservable Inputs (Level 3) | Other corporate sectors | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 317,460 | $ 309,301 |
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 | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | |||
Beginning Balance | $ 601,188 | $ 575,946 | $ 358,505 |
Included in realized gains/losses | 788 | 1,182 | 15,925 |
Included in other comprehensive income | 2,460 | (560) | 31,187 |
Acquisitions | 33,662 | 38,600 | 186,366 |
Sales | 0 | 0 | (16,050) |
Amortization | 5,203 | 5,553 | 5,532 |
Other | (20,198) | (19,533) | (5,519) |
Transfers into (out of) Level 3 | 0 | 0 | 0 |
Ending Balance | 623,103 | 601,188 | 575,946 |
Collateralized debt obligations | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | |||
Beginning Balance | 70,382 | 63,232 | 58,205 |
Included in realized gains/losses | 0 | 0 | 15,924 |
Included in other comprehensive income | (3,943) | 11,365 | 3,323 |
Acquisitions | 0 | 0 | 0 |
Sales | 0 | 0 | (16,049) |
Amortization | 5,186 | 5,536 | 5,519 |
Other | (8,122) | (9,751) | (3,690) |
Transfers into (out of) Level 3 | 0 | 0 | 0 |
Ending Balance | 63,503 | 70,382 | 63,232 |
Corporates | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | |||
Beginning Balance | 530,806 | 512,714 | 300,300 |
Included in realized gains/losses | 788 | 1,182 | 1 |
Included in other comprehensive income | 6,403 | (11,925) | 27,864 |
Acquisitions | 33,662 | 38,600 | 186,366 |
Sales | 0 | 0 | (1) |
Amortization | 17 | 17 | 13 |
Other | (12,076) | (9,782) | (1,829) |
Transfers into (out of) Level 3 | 0 | 0 | 0 |
Ending Balance | $ 559,600 | $ 530,806 | $ 512,714 |
Investments - Quantitative Info
Investments - Quantitative Information about Level 3 Fair Value Measurements (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 15,245,861 | $ 13,758,024 |
Collateralized debt obligations | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | 63,503 | 70,382 |
Private placement fixed maturities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | 574,000 | 546,000 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | 623,103 | 601,188 |
Significant Unobservable Inputs (Level 3) | Collateralized debt obligations | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | 63,503 | 70,382 |
Significant Unobservable Inputs (Level 3) | Collateralized debt obligations | Determination of credit spread | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | 63,503 | |
Significant Unobservable Inputs (Level 3) | Private placement fixed maturities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | 559,000 | $ 531,000 |
Significant Unobservable Inputs (Level 3) | Private placement fixed maturities | Determination of credit spread | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 559,600 | |
Minimum | Significant Unobservable Inputs (Level 3) | Collateralized debt obligations | Determination of credit spread | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | 9.30% | |
Minimum | Significant Unobservable Inputs (Level 3) | Private placement fixed maturities | Determination of credit spread | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | 2.82% | |
Maximum | Significant Unobservable Inputs (Level 3) | Collateralized debt obligations | Determination of credit spread | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | 10.45% | |
Maximum | Significant Unobservable Inputs (Level 3) | Private placement fixed maturities | Determination of credit spread | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | 6.55% | |
Weighted Average | Significant Unobservable Inputs (Level 3) | Collateralized debt obligations | Determination of credit spread | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | 10.30% | |
Weighted Average | Significant Unobservable Inputs (Level 3) | Private placement fixed maturities | Determination of credit spread | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | 4.17% |
Investments - Transfers in and
Investments - Transfers in and Out of Each of the Valuation Levels of Fair Values (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Transfers In And Out Of Each Of The Valuation Levels Of Fair Values Of Investments[Line Items] | |||
In | $ 45,344 | $ 17,252 | $ 36,468 |
Out | 0 | (49,744) | 0 |
Net | 45,344 | (32,492) | 36,468 |
Significant Other Observable Inputs (Level 2) | |||
Transfers In And Out Of Each Of The Valuation Levels Of Fair Values Of Investments[Line Items] | |||
In | 0 | 49,744 | 0 |
Out | (45,344) | (17,252) | (36,468) |
Net | (45,344) | 32,492 | (36,468) |
Significant Unobservable Inputs (Level 3) | |||
Transfers In And Out Of Each Of The Valuation Levels Of Fair Values Of Investments[Line Items] | |||
In | 0 | 0 | 0 |
Out | 0 | 0 | 0 |
Net | $ 0 | $ 0 | $ 0 |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Issue | Dec. 31, 2015USD ($) | |
Investment [Line Items] | ||
Securities held on deposit | $ 600,000 | $ 555,000 |
Written down securities carried at fair value | $ 54,000 | |
Written down securities carried at fair value, percentage | 0.40% | |
Gross unrealized loss | $ 215,984 | 563,580 |
Decrease in unrealized loss position | $ 348,000 | |
Total issues of fixed-maturities | Issue | 1,565 | |
Securities of state and municipal governments | 9.00% | |
Percentage of invested assets rated below investment grade | 4.00% | |
Par value of investment in fixed maturities rated below investment grade | $ 834,000 | |
Amortized cost of investment in fixed maturities rated below investment grade | 751,000 | |
Fair value of investment in fixed maturities rated below investment grade | $ 695,000 | |
TEXAS | ||
Investment [Line Items] | ||
State and municipal government securities at fair value invested by state | 30.00% | |
OHIO | ||
Investment [Line Items] | ||
State and municipal government securities at fair value invested by state | 7.00% | |
WASHINGTON | ||
Investment [Line Items] | ||
State and municipal government securities at fair value invested by state | 7.00% | |
ILLINOIS | ||
Investment [Line Items] | ||
State and municipal government securities at fair value invested by state | 6.00% | |
ALABAMA | ||
Investment [Line Items] | ||
State and municipal government securities at fair value invested by state | 5.00% | |
OTHER STATES | ||
Investment [Line Items] | ||
Proportion of state and municipal government securities at fair value invested in selected states | 5.00% | |
Investment Grade | ||
Investment [Line Items] | ||
Gross unrealized loss | $ 138,071 | 432,636 |
Investment Grade | Corporates | ||
Investment [Line Items] | ||
Gross unrealized loss | 127,144 | 416,690 |
Investment Grade | Financial | Corporates | ||
Investment [Line Items] | ||
Gross unrealized loss | 23,293 | 18,599 |
Investment Grade | Energy | Corporates | ||
Investment [Line Items] | ||
Gross unrealized loss | 19,203 | 187,569 |
Investment Grade | Metals and mining | Corporates | ||
Investment [Line Items] | ||
Gross unrealized loss | $ 418 | $ 62,409 |
Credit Concentration Risk | ||
Investment [Line Items] | ||
Concentration risk percentage | 100.00% | |
Credit Concentration Risk | Corporate Debt Securities and Redeemable Preferred Stock | ||
Investment [Line Items] | ||
Concentration risk percentage | 84.00% | |
Credit Concentration Risk | Investment Grade | Fixed maturities | Corporates | ||
Investment [Line Items] | ||
Concentration risk percentage | 80.00% |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Investment Losses by Class of Investment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | $ 2,928,441 | $ 3,973,908 |
Fair Value, Twelve Months or Longer | 647,528 | 403,500 |
Fair Value, Total | 3,575,969 | 4,377,408 |
Unrealized Loss Less Than Twelve Months | (107,262) | (391,847) |
Unrealized Loss Twelve Months or Longer | (108,722) | (171,733) |
Unrealized Loss Total | (215,984) | (563,580) |
Investment Grade | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 2,828,756 | 3,880,010 |
Fair Value, Twelve Months or Longer | 313,064 | 158,598 |
Fair Value, Total | 3,141,820 | 4,038,608 |
Unrealized Loss Less Than Twelve Months | (106,414) | (372,087) |
Unrealized Loss Twelve Months or Longer | (31,657) | (60,549) |
Unrealized Loss Total | (138,071) | (432,636) |
Investment Grade | U.S. Government direct, guaranteed, and government-sponsored enterprises | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 321,133 | 310,676 |
Fair Value, Twelve Months or Longer | 1,404 | 14,731 |
Fair Value, Total | 322,537 | 325,407 |
Unrealized Loss Less Than Twelve Months | (8,553) | (13,196) |
Unrealized Loss Twelve Months or Longer | (598) | (882) |
Unrealized Loss Total | (9,151) | (14,078) |
Investment Grade | States, municipalities, and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 32,178 | 55,351 |
Fair Value, Twelve Months or Longer | 683 | 671 |
Fair Value, Total | 32,861 | 56,022 |
Unrealized Loss Less Than Twelve Months | (1,114) | (1,611) |
Unrealized Loss Twelve Months or Longer | (19) | (42) |
Unrealized Loss Total | (1,133) | (1,653) |
Investment Grade | Foreign governments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 4,416 | 7,302 |
Fair Value, Twelve Months or Longer | 0 | 0 |
Fair Value, Total | 4,416 | 7,302 |
Unrealized Loss Less Than Twelve Months | (62) | (163) |
Unrealized Loss Twelve Months or Longer | 0 | 0 |
Unrealized Loss Total | (62) | (163) |
Investment Grade | Corporates | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 2,423,674 | 3,498,918 |
Fair Value, Twelve Months or Longer | 310,977 | 143,196 |
Fair Value, Total | 2,734,651 | 3,642,114 |
Unrealized Loss Less Than Twelve Months | (96,104) | (357,065) |
Unrealized Loss Twelve Months or Longer | (31,040) | (59,625) |
Unrealized Loss Total | (127,144) | (416,690) |
Investment Grade | Corporates | Financial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 479,669 | 476,469 |
Fair Value, Twelve Months or Longer | 64,335 | 0 |
Fair Value, Total | 544,004 | 476,469 |
Unrealized Loss Less Than Twelve Months | (18,666) | (18,599) |
Unrealized Loss Twelve Months or Longer | (4,627) | 0 |
Unrealized Loss Total | (23,293) | (18,599) |
Investment Grade | Corporates | Utilities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 290,732 | 435,692 |
Fair Value, Twelve Months or Longer | 16,977 | 0 |
Fair Value, Total | 307,709 | 435,692 |
Unrealized Loss Less Than Twelve Months | (11,000) | (28,267) |
Unrealized Loss Twelve Months or Longer | (1,604) | 0 |
Unrealized Loss Total | (12,604) | (28,267) |
Investment Grade | Corporates | Energy | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 83,064 | 745,969 |
Fair Value, Twelve Months or Longer | 154,908 | 81,681 |
Fair Value, Total | 237,972 | 827,650 |
Unrealized Loss Less Than Twelve Months | (1,076) | (146,157) |
Unrealized Loss Twelve Months or Longer | (18,127) | (41,412) |
Unrealized Loss Total | (19,203) | (187,569) |
Investment Grade | Corporates | Metals and mining | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 5,936 | 225,273 |
Fair Value, Twelve Months or Longer | 5,789 | 25,831 |
Fair Value, Total | 11,725 | 251,104 |
Unrealized Loss Less Than Twelve Months | (231) | (50,857) |
Unrealized Loss Twelve Months or Longer | (187) | (11,552) |
Unrealized Loss Total | (418) | (62,409) |
Investment Grade | Corporates | Other corporate sectors | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 1,564,273 | 1,615,515 |
Fair Value, Twelve Months or Longer | 68,968 | 35,684 |
Fair Value, Total | 1,633,241 | 1,651,199 |
Unrealized Loss Less Than Twelve Months | (65,131) | (113,185) |
Unrealized Loss Twelve Months or Longer | (6,495) | (6,661) |
Unrealized Loss Total | (71,626) | (119,846) |
Investment Grade | Other asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 41,498 | |
Fair Value, Twelve Months or Longer | 0 | |
Fair Value, Total | 41,498 | |
Unrealized Loss Less Than Twelve Months | (337) | |
Unrealized Loss Twelve Months or Longer | 0 | |
Unrealized Loss Total | (337) | |
Investment Grade | Redeemable preferred stocks | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 5,857 | 7,763 |
Fair Value, Twelve Months or Longer | 0 | 0 |
Fair Value, Total | 5,857 | 7,763 |
Unrealized Loss Less Than Twelve Months | (244) | (52) |
Unrealized Loss Twelve Months or Longer | 0 | 0 |
Unrealized Loss Total | (244) | (52) |
Investment Grade | Redeemable preferred stocks | Utilities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 5,857 | 7,763 |
Fair Value, Twelve Months or Longer | 0 | 0 |
Fair Value, Total | 5,857 | 7,763 |
Unrealized Loss Less Than Twelve Months | (244) | (52) |
Unrealized Loss Twelve Months or Longer | 0 | 0 |
Unrealized Loss Total | (244) | (52) |
Below Investment Grade | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 99,685 | 93,898 |
Fair Value, Twelve Months or Longer | 334,464 | 244,902 |
Fair Value, Total | 434,149 | 338,800 |
Unrealized Loss Less Than Twelve Months | (848) | (19,760) |
Unrealized Loss Twelve Months or Longer | (77,065) | (111,184) |
Unrealized Loss Total | (77,913) | (130,944) |
Below Investment Grade | States, municipalities, and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 0 | 0 |
Fair Value, Twelve Months or Longer | 357 | 299 |
Fair Value, Total | 357 | 299 |
Unrealized Loss Less Than Twelve Months | 0 | 0 |
Unrealized Loss Twelve Months or Longer | (194) | (255) |
Unrealized Loss Total | (194) | (255) |
Below Investment Grade | Corporates | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 99,685 | 93,898 |
Fair Value, Twelve Months or Longer | 304,481 | 211,667 |
Fair Value, Total | 404,166 | 305,565 |
Unrealized Loss Less Than Twelve Months | (848) | (19,760) |
Unrealized Loss Twelve Months or Longer | (59,368) | (96,710) |
Unrealized Loss Total | (60,216) | (116,470) |
Below Investment Grade | Corporates | Financial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 0 | 0 |
Fair Value, Twelve Months or Longer | 83,174 | 69,506 |
Fair Value, Total | 83,174 | 69,506 |
Unrealized Loss Less Than Twelve Months | 0 | 0 |
Unrealized Loss Twelve Months or Longer | (22,592) | (36,282) |
Unrealized Loss Total | (22,592) | (36,282) |
Below Investment Grade | Corporates | Energy | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 15,567 | 7,979 |
Fair Value, Twelve Months or Longer | 91,165 | 61,175 |
Fair Value, Total | 106,732 | 69,154 |
Unrealized Loss Less Than Twelve Months | (385) | (1,854) |
Unrealized Loss Twelve Months or Longer | (24,736) | (29,678) |
Unrealized Loss Total | (25,121) | (31,532) |
Below Investment Grade | Corporates | Metals and mining | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 32,478 | 4,551 |
Fair Value, Twelve Months or Longer | 34,463 | 17,679 |
Fair Value, Total | 66,941 | 22,230 |
Unrealized Loss Less Than Twelve Months | (172) | (5,414) |
Unrealized Loss Twelve Months or Longer | (2,023) | (22,247) |
Unrealized Loss Total | (2,195) | (27,661) |
Below Investment Grade | Corporates | Other corporate sectors | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 51,640 | 81,368 |
Fair Value, Twelve Months or Longer | 95,679 | 63,307 |
Fair Value, Total | 147,319 | 144,675 |
Unrealized Loss Less Than Twelve Months | (291) | (12,492) |
Unrealized Loss Twelve Months or Longer | (10,017) | (8,503) |
Unrealized Loss Total | (10,308) | (20,995) |
Below Investment Grade | Collateralized debt obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 0 | 0 |
Fair Value, Twelve Months or Longer | 9,714 | 10,562 |
Fair Value, Total | 9,714 | 10,562 |
Unrealized Loss Less Than Twelve Months | 0 | 0 |
Unrealized Loss Twelve Months or Longer | (10,285) | (9,438) |
Unrealized Loss Total | (10,285) | (9,438) |
Below Investment Grade | Redeemable preferred stocks | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 0 | 0 |
Fair Value, Twelve Months or Longer | 19,912 | 22,374 |
Fair Value, Total | 19,912 | 22,374 |
Unrealized Loss Less Than Twelve Months | 0 | 0 |
Unrealized Loss Twelve Months or Longer | (7,218) | (4,781) |
Unrealized Loss Total | (7,218) | (4,781) |
Below Investment Grade | Redeemable preferred stocks | Financial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 0 | 0 |
Fair Value, Twelve Months or Longer | 19,912 | 22,374 |
Fair Value, Total | 19,912 | 22,374 |
Unrealized Loss Less Than Twelve Months | 0 | 0 |
Unrealized Loss Twelve Months or Longer | (7,218) | (4,781) |
Unrealized Loss Total | $ (7,218) | $ (4,781) |
Investments - Schedule of Addit
Investments - Schedule of Additional Information about Investments in Unrealized Loss Position (Detail) - Issue | Dec. 31, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Less than Twelve Months | 407 | 480 |
Twelve Months or Longer | 94 | 75 |
Total | 501 | 555 |
Investments - Schedule of Other
Investments - Schedule of Other Long-Term Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Investment [Line Items] | ||
Other long-term investments | $ 53,852 | $ 38,438 |
Investment in limited partnerships | ||
Investment [Line Items] | ||
Other long-term investments | 51,509 | 31,409 |
Low-income housing interests | ||
Investment [Line Items] | ||
Other long-term investments | 0 | 3,767 |
Other | ||
Investment [Line Items] | ||
Other long-term investments | $ 2,343 | $ 3,262 |
Investments - Summary of Invest
Investments - Summary of Investment Portfolio (Detail) - Credit Concentration Risk | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |
Concentration risk percentage | 100.00% |
Other | |
Schedule of Available-for-sale Securities [Line Items] | |
Concentration risk percentage | 1.00% |
Fixed maturities | Corporates | Investment Grade | |
Schedule of Available-for-sale Securities [Line Items] | |
Concentration risk percentage | 80.00% |
Fixed maturities | Corporates | Below Investment Grade | |
Schedule of Available-for-sale Securities [Line Items] | |
Concentration risk percentage | 4.00% |
Fixed maturities | Securities of state and municipal governments [Member] | Investment Grade | |
Schedule of Available-for-sale Securities [Line Items] | |
Concentration risk percentage | 9.00% |
Fixed maturities | Government-sponsored enterprises [Member] | Investment Grade | |
Schedule of Available-for-sale Securities [Line Items] | |
Concentration risk percentage | 2.00% |
Fixed maturities | Other | Investment Grade | |
Schedule of Available-for-sale Securities [Line Items] | |
Concentration risk percentage | 1.00% |
Fixed maturities | Other | Below Investment Grade | |
Schedule of Available-for-sale Securities [Line Items] | |
Concentration risk percentage | 0.00% |
Policy loans | |
Schedule of Available-for-sale Securities [Line Items] | |
Concentration risk percentage | 3.00% |
Investments - Concentration of
Investments - Concentration of Credit Risk (Details) | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | |
Insurance | 17.00% |
Electric utilities | 12.00% |
Oil and natural gas pipelines | 6.00% |
Banks | 6.00% |
Oil and natural gas exploration and production | 4.00% |
Transportation | 4.00% |
Chemicals | 4.00% |
Metals and mining | 3.00% |
Food | 3.00% |
Real estate investment trusts | 3.00% |
Deferred Acquisition Costs (Det
Deferred Acquisition Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement Analysis of Deferred Policy Acquisition Costs | |||||||||||
Balance at beginning of year | $ 3,617,135 | $ 3,457,397 | $ 3,617,135 | $ 3,457,397 | $ 3,325,433 | ||||||
Commissions | 436,252 | 401,166 | 358,969 | ||||||||
Other expenses | 199,066 | 211,015 | 203,276 | ||||||||
Total deferred | 635,318 | 612,181 | 562,245 | ||||||||
Foreign exchange adjustment | 2,180 | 0 | 0 | ||||||||
Adjustment attributable to unrealized investment losses | 0 | 8,682 | 0 | ||||||||
Total additions | 637,498 | 620,863 | 562,245 | ||||||||
Amortized during period | $ (116,191) | $ (116,821) | $ (117,245) | $ (118,806) | $ (111,584) | $ (111,643) | $ (111,738) | $ (110,660) | (469,063) | (445,625) | (415,914) |
Foreign exchange adjustment | 0 | (15,500) | (8,167) | ||||||||
Adjustment attributable to unrealized investment gains | (2,412) | 0 | (6,200) | ||||||||
Total deductions | (471,475) | (461,125) | (430,281) | ||||||||
Balance at end of year | $ 3,783,158 | $ 3,617,135 | $ 3,783,158 | $ 3,617,135 | $ 3,457,397 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - Medicare Part D - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain from sale of discontinued operations | $ 1,779 | $ 0 | $ 0 |
Gain from sale of discontinued operations, net of tax | 1,200 | ||
Write-off of deferred acquisition costs | 16,400 | ||
Contingent sale price consideration | $ 3,600 |
Discontinued Operations - Net A
Discontinued Operations - Net Assets Held For Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Total assets related to discontinued operations | $ 127,532 | $ 312,843 |
Liabilities: | ||
Total liabilities related to discontinued operations | 27,424 | 51,035 |
Medicare Part D | ||
Assets: | ||
Due premiums | 8,840 | 8,041 |
Other receivables | 118,692 | 287,765 |
Deferred acquisition costs | 0 | 17,037 |
Total assets related to discontinued operations | 127,532 | 312,843 |
Liabilities: | ||
Unearned and advance premiums | 67 | 806 |
Policy claims and other benefits payable | 10,868 | 12,309 |
Risk sharing payable | 8,374 | 23,837 |
Current and deferred income taxes payable | 3,820 | 13,604 |
Other | 4,295 | 479 |
Total liabilities related to discontinued operations | 27,424 | 51,035 |
Net assets | 100,108 | 261,808 |
Amounts of contingent liabilities remaining | 3,600 | |
Centers for Medicare and Medicaid Services | Medicare Part D | ||
Assets: | ||
Other receivables | 50,000 | 193,000 |
Drug Manufacturers | Medicare Part D | ||
Assets: | ||
Other receivables | $ 69,000 | $ 95,000 |
Discontinued Operations - Incom
Discontinued Operations - Income from Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Benefits and expenses: | |||||||||||
Income from discontinued operations | $ 10,636 | $ 9,959 | $ (865) | $ (9,541) | $ 13,826 | $ 11,528 | $ (5,417) | $ (9,130) | $ 10,189 | $ 10,807 | $ 14,865 |
Income taxes paid | 79,790 | 110,650 | 100,922 | ||||||||
Medicare Part D | |||||||||||
Revenue: | |||||||||||
Health premium | 222,840 | 260,657 | 373,280 | ||||||||
Benefits and expenses: | |||||||||||
Health policyholder benefits | 183,423 | 213,114 | 315,816 | ||||||||
Amortization of deferred acquisition costs | 3,747 | 3,506 | 2,858 | ||||||||
Commissions, premium taxes, and non-deferred acquisition expenses | 16,396 | 20,909 | 26,613 | ||||||||
Other operating expense | 5,377 | 6,502 | 5,123 | ||||||||
Total benefits and expenses | 208,943 | 244,031 | 350,410 | ||||||||
Income before income taxes for discontinued operations | 13,897 | 16,626 | 22,870 | ||||||||
Gain from sale of discontinued operations | 1,779 | 0 | 0 | ||||||||
Income taxes | (5,487) | (5,819) | (8,005) | ||||||||
Income from discontinued operations | 10,189 | 10,807 | 14,865 | ||||||||
Discontinued Operations | Medicare Part D | |||||||||||
Benefits and expenses: | |||||||||||
Income taxes paid | $ 15,271 | $ 3,409 | $ 12,013 |
Liability for Unpaid Claims - S
Liability for Unpaid Claims - Summary of Liability for Unpaid Health Claims (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Activity in the Liability for Unpaid Health Claims | |||
Balance at beginning of year | $ 137,120 | $ 128,265 | $ 116,559 |
Incurred related to: | |||
Current year | 510,075 | 502,009 | 453,014 |
Prior years | (1,127) | (7,845) | 804 |
Total incurred | 508,948 | 494,164 | 453,818 |
Paid related to: | |||
Current year | 386,278 | 379,037 | 343,648 |
Prior years | 116,662 | 106,272 | 98,464 |
Total paid | 502,940 | 485,309 | 442,112 |
Balance at end of year | $ 143,128 | $ 137,120 | $ 128,265 |
Liability for Unpaid Claims -71
Liability for Unpaid Claims - Short-duration Contracts, Claims Development (Details) $ in Thousands | Dec. 31, 2016USD ($)claim | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) |
Claims Development [Line Items] | |||||
Incurred claims | $ 549,239 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 26,721 | ||||
Incurred claims | 26,721 | ||||
2,012 | |||||
Claims Development [Line Items] | |||||
Incurred claims | 83,906 | $ 83,906 | $ 83,928 | $ 83,965 | $ 84,975 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 0 | ||||
Cumulative number of reported claims | claim | 1,357,000 | ||||
2,013 | |||||
Claims Development [Line Items] | |||||
Incurred claims | $ 83,119 | 83,151 | 82,644 | 84,111 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 0 | ||||
Cumulative number of reported claims | claim | 1,337,000 | ||||
2,014 | |||||
Claims Development [Line Items] | |||||
Incurred claims | $ 99,810 | 99,876 | 101,407 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 19 | ||||
Cumulative number of reported claims | claim | 1,600,000 | ||||
2,015 | |||||
Claims Development [Line Items] | |||||
Incurred claims | $ 141,460 | 141,667 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 478 | ||||
Cumulative number of reported claims | claim | 2,222,000 | ||||
2,016 | |||||
Claims Development [Line Items] | |||||
Incurred claims | $ 140,944 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 26,224 | ||||
Cumulative number of reported claims | claim | 1,863,000 | ||||
Health Insurance Product Line | |||||
Claims Development [Line Items] | |||||
Cumulative paid claims | $ 522,518 | ||||
Short-duration claim liability as of December 31, 2016 | 26,721 | ||||
Incurred claims | 549,239 | ||||
Health Insurance Product Line | 2012 | |||||
Claims Development [Line Items] | |||||
Cumulative paid claims | 83,906 | 83,906 | 83,919 | 83,766 | $ 68,742 |
Health Insurance Product Line | 2013 | |||||
Claims Development [Line Items] | |||||
Cumulative paid claims | 83,119 | 83,131 | 82,408 | $ 68,159 | |
Health Insurance Product Line | 2014 | |||||
Claims Development [Line Items] | |||||
Cumulative paid claims | 99,791 | 99,545 | $ 81,054 | ||
Health Insurance Product Line | 2015 | |||||
Claims Development [Line Items] | |||||
Cumulative paid claims | 140,982 | $ 115,922 | |||
Health Insurance Product Line | 2016 | |||||
Claims Development [Line Items] | |||||
Cumulative paid claims | $ 114,720 |
Liability for Unpaid Claims - R
Liability for Unpaid Claims - Reconciliation of Net Incurred and Paid Claims Development to Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Insurance [Abstract] | ||
Short-duration products | $ 26,721 | |
Insurance lines other than short duration—health | 116,407 | |
Insurance lines other than short duration—life | 156,437 | |
Total policy claims and other benefits payable | $ 299,565 | $ 272,898 |
Income Taxes - Components of In
Income Taxes - Components of Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income Tax Disclosure [Abstract] | ||||
Income tax expense from continuing operations | [1] | $ 232,645 | $ 249,894 | $ 256,603 |
Shareholders’ equity: | ||||
Other comprehensive income (loss) | 186,206 | (411,646) | 424,089 | |
Tax basis compensation expense (from the exercise of stock options and vesting of restricted stock awards) in excess of amounts recognized for financial reporting purposes | 0 | (17,577) | (18,524) | |
Income tax expense (benefit) | $ 418,851 | $ (179,329) | $ 662,168 | |
[1] | Certain current year amounts were prospectively adjusted to give effect to the adoption of ASU 2016-09 related to excess tax benefits from stock compensation as described in Note 1—Significant Accounting Policies under "Accounting Pronouncements Adopted in the Current Year." |
Income Taxes - Income Taxes Exp
Income Taxes - Income Taxes Expense from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income Tax Disclosure [Abstract] | ||||
Current income tax expense | $ 132,806 | $ 174,284 | $ 169,319 | |
Deferred income tax expense | 99,839 | 75,610 | 87,284 | |
Income tax expense from continuing operations | [1] | $ 232,645 | $ 249,894 | $ 256,603 |
[1] | Certain current year amounts were prospectively adjusted to give effect to the adoption of ASU 2016-09 related to excess tax benefits from stock compensation as described in Note 1—Significant Accounting Policies under "Accounting Pronouncements Adopted in the Current Year." |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income Tax Disclosure [Abstract] | ||||
Expected income taxes | $ 270,282 | $ 268,165 | $ 274,637 | |
Increase (reduction) in income taxes resulting from, amount: | ||||
Low income housing investments | (18,202) | (19,031) | (17,541) | |
Share-based awards | (18,653) | 0 | 0 | |
Other | (782) | 760 | (493) | |
Income tax expense from continuing operations | [1] | $ 232,645 | $ 249,894 | $ 256,603 |
Expected income taxes | 35.00% | 35.00% | 35.00% | |
Increase (reduction) in income taxes resulting from, percent: | ||||
Low income housing investments | (2.40%) | (2.50%) | (2.20%) | |
Share-based awards | (2.40%) | (0.00%) | (0.00%) | |
Other | (0.10%) | 0.10% | 0.00% | |
Income tax expense from continuing operations | 30.10% | 32.60% | 32.80% | |
[1] | Certain current year amounts were prospectively adjusted to give effect to the adoption of ASU 2016-09 related to excess tax benefits from stock compensation as described in Note 1—Significant Accounting Policies under "Accounting Pronouncements Adopted in the Current Year." |
Income Taxes - Significant Port
Income Taxes - Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Fixed maturity investments | $ 15,004 | $ 16,098 |
Carryover of tax losses | 3,906 | 2,266 |
Total gross deferred tax assets | 18,910 | 18,364 |
Deferred tax liabilities: | ||
Unrealized gains | 315,509 | 128,683 |
Employee and agent compensation | 92,131 | 83,229 |
Deferred acquisition costs | 975,873 | 921,799 |
Future policy benefits, unearned and advance premiums, and policy claims | 391,451 | 340,854 |
Other liabilities | 3,987 | 17,176 |
Total gross deferred tax liabilities | 1,778,951 | 1,491,741 |
Net deferred tax liability | $ 1,760,041 | $ 1,473,377 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Operating loss carryforwards | $ 11,200,000 | ||
Deferred tax assets, valuation allowance | 0 | ||
Uncertain tax positions | 0 | $ 0 | $ 0 |
Recognized interest income, net of Federal income tax expense | 9,000 | 11,000 | $ 465,000 |
Amount of accrued interest or penalties | $ 0 | $ 0 |
Postretirement Benefits - Total
Postretirement Benefits - Total Cost of Retirement Plans Charged to Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Defined Contribution Plans | $ 3,614 | $ 3,429 | $ 3,078 |
Defined Benefit Pension Plans | $ 24,202 | $ 29,230 | $ 23,463 |
Postretirement Benefits - Addit
Postretirement Benefits - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2016USD ($)plan | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Number of nonqualified, noncontributory supplemental benefit pension plans | plan | 2 | ||
Defined benefit plan contributions | $ 15,800,000 | $ 15,500,000 | $ 14,600,000 |
Liability for SERP | $ 74,687,000 | 67,243,000 | |
Maximum allowed investment percentage in any single issuer in pension plan assets at time of purchase | 10.00% | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions to benefit plans, future | $ 20,000,000 | ||
Capped eligible compensation | 1,000,000 | ||
Supplemental Employee Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Liability for closed supplemental retirement pension plans | 3,000,000 | 3,000,000 | |
Funded Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 411,000,000 | 371,000,000 | |
Unfunded Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 69,000,000 | $ 63,000,000 |
Postretirement Benefits - Activ
Postretirement Benefits - Activity for the Active SERP (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Premiums paid for insurance coverage | $ 2,050,000 | $ 10,068,000 | $ 2,150,000 |
Company owned life insurance | 37,267,000 | 34,178,000 | |
Exchange Traded Funds | 48,999,000 | 45,014,000 | |
Total investments of SERP | 86,266,000 | 79,192,000 | |
Liability for SERP | 74,687,000 | 67,243,000 | |
Cash deposited into investment fund | $ 0 | $ 0 | $ 0 |
Postretirement Benefits - Pensi
Postretirement Benefits - Pension Assets by Components at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 328,871 | $ 307,596 |
Total percentage | 100.00% | 100.00% |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 149,580 | $ 143,855 |
Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 179,291 | 163,741 |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 123,428 | |
Total percentage | 40.00% | |
Equity Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 123,420 | |
Equity Securities | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8 | |
Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 160,036 | $ 146,381 |
Total percentage | 49.00% | 47.00% |
Corporate Bonds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 160,036 | $ 146,381 |
Exchange Traded Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 134,771 | |
Total percentage | 41.00% | |
Exchange Traded Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 134,771 | |
Other Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 258 | $ 270 |
Total percentage | 0.00% | 0.00% |
Other Bonds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 258 | $ 270 |
Guaranteed Annuity Contract | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 18,997 | $ 17,082 |
Total percentage | 6.00% | 6.00% |
Guaranteed Annuity Contract | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 18,997 | $ 17,082 |
Short-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 7,391 | $ 15,593 |
Total percentage | 2.00% | 5.00% |
Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 7,391 | $ 15,593 |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 7,418 | $ 4,842 |
Total percentage | 2.00% | 2.00% |
Other | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 7,418 | $ 4,842 |
Financial | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 49,391 | |
Total percentage | 16.00% | |
Financial | Equity Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 49,391 | |
Financial | Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 41,578 | $ 36,266 |
Total percentage | 13.00% | 12.00% |
Financial | Corporate Bonds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 41,578 | $ 36,266 |
Consumer, Cyclical | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 24,264 | |
Total percentage | 8.00% | |
Consumer, Cyclical | Equity Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 24,264 | |
Technology | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 19,871 | |
Total percentage | 6.00% | |
Technology | Equity Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 19,871 | |
Industrial | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 15,176 | |
Total percentage | 5.00% | |
Industrial | Equity Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 15,176 | |
Consumer, Non-Cyclical | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 12,216 | |
Total percentage | 4.00% | |
Consumer, Non-Cyclical | Equity Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 12,216 | |
Other Sectors | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 2,510 | |
Total percentage | 1.00% | |
Other Sectors | Equity Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 2,502 | |
Other Sectors | Equity Securities | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8 | |
Utilities | Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 43,890 | $ 43,229 |
Total percentage | 13.00% | 14.00% |
Utilities | Corporate Bonds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 43,890 | $ 43,229 |
Energy | Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 25,427 | $ 25,890 |
Total percentage | 8.00% | 8.00% |
Energy | Corporate Bonds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 25,427 | $ 25,890 |
Other corporate sectors | Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 49,141 | $ 40,996 |
Total percentage | 15.00% | 13.00% |
Other corporate sectors | Corporate Bonds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 49,141 | $ 40,996 |
Postretirement Benefits - Weigh
Postretirement Benefits - Weighted Average Pension Plan Assumptions and Weighted Average Assumptions for Post-Retirement Benefit Plans Other Than Pensions (Detail) - Pension Benefits | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount Rate | 4.27% | 4.64% | |
Rate of Compensation Increase | 4.31% | 4.33% | |
Discount Rate | 4.64% | 4.23% | 5.12% |
Expected Long-Term Returns | 7.19% | 6.96% | 6.97% |
Rate of Compensation Increase | 4.33% | 4.35% | 4.35% |
Postretirement Benefits - Compo
Postretirement Benefits - Components of Net Periodic Pension Costs and Post-Retirement Benefit Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net amortization | $ 10,168 | $ 14,586 | $ 10,285 |
Net periodic pension cost | 24,202 | 29,230 | 23,463 |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost—benefits earned during the period | 15,502 | 15,902 | 12,925 |
Interest cost on projected benefit obligation | 21,631 | 19,887 | 19,270 |
Expected return on assets | (23,127) | (21,204) | (19,031) |
Net amortization | 10,135 | 14,465 | 10,283 |
Recognition of actuarial loss | 61 | 180 | 16 |
Net periodic pension cost | 24,202 | 29,230 | 23,463 |
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost—benefits earned during the period | 0 | 0 | 0 |
Interest cost on projected benefit obligation | 1,139 | 1,075 | 646 |
Expected return on assets | 0 | 0 | 0 |
Net amortization | 33 | 120 | 2 |
Recognition of actuarial loss | (132) | 367 | (256) |
Net periodic pension cost | $ 1,040 | $ 1,562 | $ 392 |
Postretirement Benefits - Analy
Postretirement Benefits - Analysis of Impact on Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan, Impact on Other Comprehensive Income | |||
Balance at January 1 | $ (152,149) | $ (152,999) | $ (97,467) |
Amortization of prior service cost | 477 | 377 | 2,113 |
Amortization of net actuarial (gain) loss | 9,691 | 14,209 | 8,172 |
Total amortization | 10,168 | 14,586 | 10,285 |
Plan amendments | 0 | (2,104) | 0 |
Experience gain (loss) | (31,902) | (11,632) | (65,817) |
Balance at December 31 | (173,883) | (152,149) | (152,999) |
Other Benefits | |||
Defined Benefit Plan, Impact on Other Comprehensive Income | |||
Balance at January 1 | 1,447 | ||
Total amortization | 33 | 120 | $ 2 |
Balance at December 31 | $ 1,959 | $ 1,447 |
Postretirement Benefits - Recon
Postretirement Benefits - Reconciliation of Benefit Obligation and Plan Assets, Pension Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in plan assets: | |||
Fair value at beginning of year | $ 307,596 | ||
Contributions | 15,800 | $ 15,500 | $ 14,600 |
Fair value at end of year | 328,871 | 307,596 | |
Other Benefits | |||
Changes in benefit obligation: | |||
Obligation at beginning of year | 22,479 | 22,895 | |
Service cost—benefits earned during the period | 0 | 0 | 0 |
Interest cost | 1,139 | 1,075 | 646 |
Actuarial loss (gain) | 412 | (1,133) | |
Benefits paid | (309) | (358) | |
Obligation at end of year | 23,721 | 22,479 | 22,895 |
Changes in plan assets: | |||
Fair value at beginning of year | 0 | 0 | |
Return on assets | 0 | 0 | |
Contributions | 309 | 358 | |
Benefits paid | (309) | (358) | |
Fair value at end of year | 0 | 0 | 0 |
Funded status at year end | (23,721) | (22,479) | |
Pension Benefits | |||
Changes in benefit obligation: | |||
Obligation at beginning of year | 476,581 | 477,426 | |
Service cost—benefits earned during the period | 15,502 | 15,902 | 12,925 |
Interest cost | 21,631 | 19,887 | 19,270 |
Plan amendments | 0 | 2,104 | |
Actuarial loss (gain) | 34,667 | (19,226) | |
Benefits paid | (20,859) | (19,512) | |
Obligation at end of year | 527,522 | 476,581 | 477,426 |
Changes in plan assets: | |||
Fair value at beginning of year | 307,596 | 322,898 | |
Return on assets | 26,377 | (11,333) | |
Contributions | 15,757 | 15,543 | |
Benefits paid | (20,859) | (19,512) | |
Fair value at end of year | 328,871 | 307,596 | $ 322,898 |
Funded status at year end | $ (198,651) | $ (168,985) |
Postretirement Benefits - Sched
Postretirement Benefits - Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Net amounts recognized at year end | $ (173,883) | $ (152,149) | $ (152,999) | $ (97,467) |
Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Net loss (gain) | 167,313 | 145,623 | ||
Prior service cost | 4,611 | 5,088 | ||
Net amounts recognized at year end | 171,924 | 150,711 | ||
Other Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Net loss (gain) | 1,959 | 1,447 | ||
Net amounts recognized at year end | $ 1,959 | $ 1,447 |
Postretirement Benefits - Porti
Postretirement Benefits - Portion of Other Comprehensive Income Expected to Be Reflected in Pension Expense in Next Year (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Postretirement Benefits [Abstract] | |
Amortization of prior service cost | $ 476 |
Amortization of net actuarial loss | 11,806 |
Total | $ 12,282 |
Postretirement Benefits - Estim
Postretirement Benefits - Estimated Future Payments for Pension Benefits and Other Postretirement Benefit Plans (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 19,839 |
2,018 | 21,198 |
2,019 | 22,516 |
2,020 | 24,109 |
2,021 | 25,678 |
2022-2025 | 152,071 |
Other Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 1,014 |
2,018 | 1,133 |
2,019 | 1,247 |
2,020 | 1,351 |
2,021 | 1,462 |
2022-2025 | $ 9,811 |
Postretirement Benefits - Wei89
Postretirement Benefits - Weighted Average Assumptions for Post-Retirement Benefit Plans Other Than Pensions (Details) - Other Benefits | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount Rate | 4.29% | 4.66% | |
Discount Rate | 4.66% | 4.23% | 5.12% |
Supplemental Disclosures of C90
Supplemental Disclosures of Cash Flow Information - Summary of Noncash Transactions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental Cash Flow Elements [Abstract] | |||
Stock-based compensation not involving cash | $ 26,326 | $ 28,664 | $ 32,203 |
Commitments for low-income housing interests | 56,818 | 68,949 | 75,706 |
Exchanges of fixed maturity investments | 224,901 | 0 | 17,333 |
Net unsettled security trades | $ 15,020 | $ 0 | $ 0 |
Supplemental Disclosures of C91
Supplemental Disclosures of Cash Flow Information - Summary of Amount Paid (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest paid | $ 81,338 | $ 74,792 | $ 77,066 |
Income taxes paid | $ 79,790 | $ 110,650 | $ 100,922 |
Debt - Selected Information abo
Debt - Selected Information about Debt Issues (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Outstanding Principal (Par Value) | $ 1,153,259 | |
Outstanding Principal (Book Value) | 1,135,040 | $ 743,733 |
Outstanding Principal (Fair Value) | 1,234,894 | |
Less current maturity of term loan, par value | 1,875 | |
Less current maturity of term loan, book value | 1,875 | 0 |
Less current maturity of term loan, fair value | 1,875 | |
Total long-term debt, par value | 1,151,384 | |
Long-term debt | 1,133,165 | 743,733 |
Total long-term debt, fair value | 1,233,019 | 856,291 |
Total short-term debt, book value | 264,475 | 490,129 |
Total short-term debt, fair value | 264,475 | |
Total short-term debt, par value | 264,725 | |
Total debt, par value | 1,416,109 | |
Total debt, book value | 1,397,640 | 1,233,862 |
Total debt, fair value | $ 1,497,494 | |
Senior Notes, Due 6/15/16 | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Jun. 15, 2016 | |
Annual Interest Rate | 6.375% | |
Issue Date | 2006-06 | |
Total short-term debt, book value | $ 0 | 249,753 |
Total short-term debt, fair value | 0 | |
Total short-term debt, par value | 0 | |
Commercial Paper | ||
Debt Instrument [Line Items] | ||
Total short-term debt, book value | 262,600 | 240,376 |
Total short-term debt, fair value | 262,600 | |
Total short-term debt, par value | $ 262,850 | |
Notes, Due 5/15/23 | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | May 15, 2023 | |
Annual Interest Rate | 7.875% | |
Issue Date | 1993-05 | |
Outstanding Principal (Par Value) | $ 165,612 | |
Outstanding Principal (Book Value) | 164,095 | 163,920 |
Outstanding Principal (Fair Value) | $ 196,496 | |
Senior Notes, Due 6/15/19 | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Jun. 15, 2019 | |
Annual Interest Rate | 9.25% | |
Issue Date | 2009-06 | |
Outstanding Principal (Par Value) | $ 292,647 | |
Outstanding Principal (Book Value) | 291,424 | 291,002 |
Outstanding Principal (Fair Value) | $ 338,363 | |
Senior Notes, Due 9/15/22 | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Sep. 15, 2022 | |
Annual Interest Rate | 3.80% | |
Issue Date | 2012-09 | |
Outstanding Principal (Par Value) | $ 150,000 | |
Outstanding Principal (Book Value) | 148,189 | 147,913 |
Outstanding Principal (Fair Value) | $ 152,777 | |
Junior Subordinated Debentures Due 12/15/52 | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Dec. 15, 2052 | |
Annual Interest Rate | 5.875% | |
Issue Date | 2012-09 | |
Outstanding Principal (Par Value) | $ 125,000 | |
Outstanding Principal (Book Value) | 120,929 | 120,898 |
Outstanding Principal (Fair Value) | $ 124,378 | |
Junior Subordinated Debentures Due 3/15/36 | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Mar. 15, 2036 | |
Annual Interest Rate | 4.26344% | |
Outstanding Principal (Par Value) | $ 20,000 | |
Outstanding Principal (Book Value) | 20,000 | 20,000 |
Outstanding Principal (Fair Value) | $ 20,000 | |
Junior Subordinated Debentures Due 3/15/36 | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread | 3.30% | |
Junior Subordinated Debentures Due 6/15/56 | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Jun. 15, 2056 | |
Annual Interest Rate | 6.125% | |
Issue Date | 2016-04 | |
Outstanding Principal (Par Value) | $ 300,000 | |
Outstanding Principal (Book Value) | 290,403 | 0 |
Outstanding Principal (Fair Value) | $ 302,880 | |
Term Loan Due 5/17/21 | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | May 17, 2021 | |
Annual Interest Rate | 1.85561% | |
Issue Date | 2016-06 | |
Outstanding Principal (Par Value) | $ 100,000 | |
Outstanding Principal (Book Value) | 100,000 | $ 0 |
Outstanding Principal (Fair Value) | $ 100,000 | |
Term Loan Due 5/17/21 | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.25% |
Debt - Amount of Debt Due in Ne
Debt - Amount of Debt Due in Next Five Years (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 264,725 |
2,018 | 4,375 |
2,019 | 299,522 |
2,020 | 9,375 |
2,021 | 77,500 |
Thereafter | $ 760,612 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Apr. 05, 2016 | Dec. 31, 2016 | May 17, 2016 |
Debt Instrument [Line Items] | |||
Debt, face amount | $ 1,416,109,000 | ||
Term Loan Due 5/17/21 | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.85561% | ||
Term Loan Due 5/17/21 | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.25% | ||
Junior Subordinated Debentures due 2056 | Junior Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Debt, face amount | $ 300,000,000 | ||
Interest rate | 6.125% | ||
Proceeds from issuance of subordinated long-term debt | $ 290,000,000 | ||
Senior Notes Due June 15, 2016 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt, face amount | $ 250,000,000 | ||
Interest rate | 6.375% | ||
Accrued interest | $ 8,000,000 | ||
Term Loan Due 5/17/21 | Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Debt, face amount | $ 100,000,000 | ||
Balloon payment | 75,000,000 | ||
Line of Credit | $750 Million Credit Facility | Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 750,000,000 |
Debt - Short-Term Borrowings (D
Debt - Short-Term Borrowings (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Short-term Debt [Line Items] | |||
Balance at end of period (at par value) | $ 1,416,109 | ||
Annualized interest rate | 0.96% | 0.55% | |
Letters of credit outstanding | $ 177,000 | $ 177,000 | |
Remaining amount available under credit line | 310,150 | 332,456 | |
Average balance outstanding during period | $ 301,550 | $ 350,851 | $ 296,246 |
Daily-weighted average interest rate (annualized) | 0.83% | 0.43% | 0.26% |
Maximum daily amount outstanding during period | $ 412,676 | $ 458,110 | $ 343,000 |
Short-term Debt | |||
Short-term Debt [Line Items] | |||
Balance at end of period (at par value) | $ 262,850 | $ 240,544 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Preferred and Common Share Activity (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Increase (Decrease) in Stockholders' Equity | |||
Issued, beginning balance | 130,218,183 | ||
Treasury Stock, beginning balance | (7,848,231) | ||
Grants of restricted stock | 186,961 | 193,788 | 210,613 |
Vesting of performance shares | 306,802 | 287,390 | 109,678 |
Issuance of common stock due to exercise of stock options | 2,184,169 | 1,576,485 | 2,210,348 |
Retirement of treasury stock | 3,000,000 | 4,000,000 | 17,000,000 |
Retirement of treasury stock | (3,000,000) | (4,000,000) | (17,000,000) |
Issued, ending balance | 127,218,183 | 130,218,183 | |
Treasury Stock, ending balance | (9,187,075) | (7,848,231) | |
Preferred Stock | |||
Increase (Decrease) in Stockholders' Equity | |||
Issued, beginning balance | 0 | 0 | 0 |
Treasury Stock, beginning balance | 0 | 0 | 0 |
Issued, ending balance | 0 | 0 | 0 |
Treasury Stock, ending balance | 0 | 0 | 0 |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity | |||
Issued, beginning balance | 130,218,183 | 134,218,183 | 151,218,183 |
Treasury Stock, beginning balance | (7,848,231) | (6,287,907) | (16,965,802) |
Grants of restricted stock | 12,549 | 6,648 | 19,041 |
Forfeitures of restricted stock | $ (13,950) | $ (2,700) | |
Issuance of common stock due to exercise of stock options | 2,184,169 | 1,576,485 | 2,210,349 |
Treasury stock acquired | (6,694,582) | (7,340,794) | (8,548,795) |
Retirement of treasury stock | 3,000,000 | 4,000,000 | 17,000,000 |
Retirement of treasury stock | (3,000,000) | (4,000,000) | (17,000,000) |
Issued, ending balance | 127,218,183 | 130,218,183 | 134,218,183 |
Treasury Stock, ending balance | (9,187,075) | (7,848,231) | (6,287,907) |
Performance Shares | |||
Increase (Decrease) in Stockholders' Equity | |||
Grants of restricted stock | 167,500 | 179,500 | 179,250 |
Performance Shares | Common Stock | |||
Increase (Decrease) in Stockholders' Equity | |||
Vesting of performance shares | 159,020 | 211,287 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Capitalization, Equity [Line Items] | |||
Retirement of treasury stock | 3,000,000 | 4,000,000 | 17,000,000 |
Dividends paid by subsidiaries to parent company | $ 438,000 | $ 466,000 | $ 479,000 |
Maximum amount of dividends expected to be available from subsidiaries without regulatory approval during next year | 262,000 | ||
Restricted net assets | 1,100,000 | ||
Retained earnings restricted by lenders' covenants | 2,600,000 | ||
Retained earnings | $ 3,890,798 | $ 3,614,369 | |
Anti-dilutive shares | 0 | 0 | 0 |
Stock Repurchase Plan | |||
Schedule of Capitalization, Equity [Line Items] | |||
Shares repurchased | 5,200,000 | 6,300,000 | 7,200,000 |
Share repurchases under stock repurchase program, amount | $ 311,000 | $ 359,000 | $ 375,000 |
Stock Repurchase Plan for Anti-Dilutive Effect | |||
Schedule of Capitalization, Equity [Line Items] | |||
Shares repurchased | 1,500,000 | 1,000,000 | 1,400,000 |
Share repurchases under stock repurchase program, amount | $ 93,000 | $ 60,000 | $ 74,000 |
Shareholders' Equity - Reconcil
Shareholders' Equity - Reconciliation of Basic and Diluted Weighted Average Shares Outstanding (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | |||
Basic weighted average shares outstanding | 120,001,191 | 125,094,628 | 130,721,738 |
Weighted average dilutive options outstanding | 2,366,594 | 1,662,607 | 1,918,506 |
Diluted weighted average shares outstanding | 122,367,785 | 126,757,235 | 132,640,244 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Grant Contract and Vesting Periods (Details) - Equity Option | 12 Months Ended |
Dec. 31, 2016 | |
Directors | Director | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Contract Period | 7 years |
Directors | Director | 6 months | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights, percentage | 100.00% |
Employee 7 Year Grants | Employee | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Contract Period | 7 years |
Employee 7 Year Grants | Employee | 6 months | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights, percentage | 0.00% |
Employee 7 Year Grants | Employee | Yr 1 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights, percentage | 0.00% |
Employee 7 Year Grants | Employee | Yr 2 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights, percentage | 50.00% |
Employee 7 Year Grants | Employee | Yr 3 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights, percentage | 50.00% |
Employee 10 Year Grants | Employee | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Contract Period | 10 years |
Employee 10 Year Grants | Employee | 6 months | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights, percentage | 0.00% |
Employee 10 Year Grants | Employee | Yr 1 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights, percentage | 0.00% |
Employee 10 Year Grants | Employee | Yr 2 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights, percentage | 25.00% |
Employee 10 Year Grants | Employee | Yr 3 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights, percentage | 25.00% |
Employee 10 Year Grants | Employee | Yr 4 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights, percentage | 25.00% |
Employee 10 Year Grants | Employee | Yr 5 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights, percentage | 25.00% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - shares | Feb. 24, 2016 | Jan. 27, 2015 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Incentive plan, shares available for grant | 5,088,461 | 5,088,461 | 6,872,282 | 8,458,593 | 4,368,753 | ||
Number of equity awards settled for cash | 0 | ||||||
Restricted stock units outstanding | 112,591,000 | 112,591,000 | 105,679,000 | 98,039,000 | |||
2011 Plan Amendment | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Incentive plan, shares available for grant | 6,300,000 | ||||||
Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Settlement of performance shares | 159,020 | 211,287 | |||||
Minimum | Equity Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Contract period | 7 years | ||||||
Minimum | Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance shares target distribution | 0 | 0 | 0 | ||||
Maximum | Equity Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Contract period | 10 years | ||||||
Maximum | Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance shares target distribution | 335,000 | 335,000 | 353,000 | ||||
Employee | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 5 years | ||||||
Director | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 6 months | ||||||
Director | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 6 months |
Stock-Based Compensation - Anal
Stock-Based Compensation - Analysis of Shares Available for Grant (Detail) | 12 Months Ended | ||
Dec. 31, 2016shares | Dec. 31, 2015shares | Dec. 31, 2014shares | |
Activity by Share-based Payment Award | |||
Balance at January 1 (in shares) | 6,872,282 | 8,458,593 | 4,368,753 |
Options expired and forfeited during year (in shares) | 8,518 | 90,371 | 3,488 |
Restricted stock expired and forfeited during year (in shares) | 0 | 89,745 | 31,620 |
Balance at December 31 (in shares) | 5,088,461 | 6,872,282 | 8,458,593 |
Stock Options | |||
Activity by Share-based Payment Award | |||
Options granted during year (in shares) | (1,306,306) | (1,334,514) | (1,523,982) |
2011 Plan Amendment | |||
Activity by Share-based Payment Award | |||
Balance at January 1 (in shares) | 6,300,000 | ||
2011 Plan amendment (in shares) | 0 | 0 | 6,300,000 |
Balance at December 31 (in shares) | 6,300,000 | ||
Torchmark Corporation 2011 Incentive Plan | Restricted Stock, Restricted Stock Units And Performance Shares | |||
Activity by Share-based Payment Award | |||
Restricted stock, restricted stock units, and performance shares granted under the Torchmark Corporation 2011 Incentive Plan (in shares) | (486,033) | (431,913) | (721,286) |
Minimum | |||
Activity by Share-based Payment Award | |||
Ratio by which each grant of stock options reduces shares available for grant | 0.85 | ||
Ratio by which each grant of restricted stock reduces shares available for options | 3.1 | ||
Maximum | |||
Activity by Share-based Payment Award | |||
Ratio by which each grant of stock options reduces shares available for grant | 1 | ||
Ratio by which each grant of restricted stock reduces shares available for options | 3.88 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Compensation Activity (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock-based compensation expense recognized | $ 26,326,000 | $ 28,664,000 | $ 32,203,000 |
Tax benefit recognized | 27,867,000 | ||
Tax benefit recognized | 10,033,000 | 11,271,000 | |
Stock-based compensation expense capitalized | $ 0 | $ 0 | $ 0 |
Stock-Based Compensation - A103
Stock-Based Compensation - Additional Stock Compensation Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Unrecognized compensation | $ 27,334 | $ 33,977 |
Weighted average period of expected recognition (in years) | 10 months 21 days | 10 months 6 days |
Stock-Based Compensation - S104
Stock-Based Compensation - Summary of Options Outstanding (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of Exercise Prices, Minimum (in dollars per share) | $ 20.58 | |||
Range of Exercise Prices, Maximum (in dollars per share) | $ 56.32 | |||
Options Outstanding, Number Outstanding (in shares) | 6,973,591 | 7,734,841 | 7,889,321 | 8,579,202 |
Options Outstanding, Weighted- Average Remaining Contractual Life (Years) | 4 years 8 months 12 days | 4 years 3 months 26 days | ||
Options Outstanding, Weighted- Average Exercise Price (in dollars per share) | $ 44.64 | $ 38.84 | $ 32.91 | $ 27.84 |
Options Exercisable, Number Exercisable (in shares) | 3,115,847 | 3,774,061 | 3,809,415 | |
Options Exercisable, Weighted- Average Exercise Price (in dollars per share) | $ 36.81 | $ 29.37 | $ 24.58 | |
$20.58 - $32.48 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of Exercise Prices, Minimum (in dollars per share) | 20.58 | |||
Range of Exercise Prices, Maximum (in dollars per share) | $ 32.48 | |||
Options Outstanding, Number Outstanding (in shares) | 1,549,010 | |||
Options Outstanding, Weighted- Average Remaining Contractual Life (Years) | 2 years 2 months 23 days | |||
Options Outstanding, Weighted- Average Exercise Price (in dollars per share) | $ 30.01 | |||
Options Exercisable, Number Exercisable (in shares) | 1,470,267 | |||
Options Exercisable, Weighted- Average Exercise Price (in dollars per share) | $ 29.99 | |||
37.40 - 43.06 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of Exercise Prices, Minimum (in dollars per share) | 37.40 | |||
Range of Exercise Prices, Maximum (in dollars per share) | $ 43.06 | |||
Options Outstanding, Number Outstanding (in shares) | 1,111,634 | |||
Options Outstanding, Weighted- Average Remaining Contractual Life (Years) | 3 years 6 months 11 days | |||
Options Outstanding, Weighted- Average Exercise Price (in dollars per share) | $ 37.67 | |||
Options Exercisable, Number Exercisable (in shares) | 998,713 | |||
Options Exercisable, Weighted- Average Exercise Price (in dollars per share) | $ 37.70 | |||
50.64 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of Exercise Prices, Minimum (in dollars per share) | 50.64 | |||
Range of Exercise Prices, Maximum (in dollars per share) | $ 50.64 | |||
Options Outstanding, Number Outstanding (in shares) | 1,412,225 | |||
Options Outstanding, Weighted- Average Remaining Contractual Life (Years) | 7 years 4 months 28 days | |||
Options Outstanding, Weighted- Average Exercise Price (in dollars per share) | $ 50.64 | |||
Options Exercisable, Number Exercisable (in shares) | 0 | |||
Options Exercisable, Weighted- Average Exercise Price (in dollars per share) | $ 0 | |||
50.69 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of Exercise Prices, Minimum (in dollars per share) | 50.69 | |||
Range of Exercise Prices, Maximum (in dollars per share) | $ 50.69 | |||
Options Outstanding, Number Outstanding (in shares) | 1,406,282 | |||
Options Outstanding, Weighted- Average Remaining Contractual Life (Years) | 4 years 7 months 17 days | |||
Options Outstanding, Weighted- Average Exercise Price (in dollars per share) | $ 50.69 | |||
Options Exercisable, Number Exercisable (in shares) | 604,802 | |||
Options Exercisable, Weighted- Average Exercise Price (in dollars per share) | $ 50.69 | |||
51.62 - 56.32 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of Exercise Prices, Minimum (in dollars per share) | 51.62 | |||
Range of Exercise Prices, Maximum (in dollars per share) | $ 56.32 | |||
Options Outstanding, Number Outstanding (in shares) | 1,494,440 | |||
Options Outstanding, Weighted- Average Remaining Contractual Life (Years) | 5 years 7 months 24 days | |||
Options Outstanding, Weighted- Average Exercise Price (in dollars per share) | $ 53.64 | |||
Options Exercisable, Number Exercisable (in shares) | 42,065 | |||
Options Exercisable, Weighted- Average Exercise Price (in dollars per share) | $ 54.79 |
Stock-Based Compensation - A105
Stock-Based Compensation - Analysis of Option Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Options | |||
Options Outstanding-beginning of year (in shares) | 7,734,841 | 7,889,321 | 8,579,202 |
Options Exercised (in shares) | (2,184,169) | (1,576,485) | (2,210,348) |
Options Expired and forfeited (in shares) | (8,518) | (95,621) | (3,488) |
Adjustment to options for stock split (in shares) | (27) | ||
Options Outstanding-end of year (in shares) | 6,973,591 | 7,734,841 | 7,889,321 |
Options Exercisable at end of year (in shares) | 3,115,847 | 3,774,061 | 3,809,415 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price [Abstract] | |||
Outstanding-beginning of year, weighted average exercise price (in dollars per share) | $ 38.84 | $ 32.91 | $ 27.84 |
Options exercised in the period - weighted average exercise price (in dollars per share) | 28.08 | 22.81 | 25.47 |
Options expired and forfeited in the period - weighted average exercise price (in dollars per share) | 39.35 | 48.85 | 40.05 |
Outstanding-end of year, weighted average exercise price (in dollars per share) | 44.64 | 38.84 | 32.91 |
Exercisable at end of year, weighted average exercise price (in dollars per share) | $ 36.81 | $ 29.37 | $ 24.58 |
7-year term | |||
Options | |||
Options Granted (in shares) | 834,212 | 1,220,751 | 1,226,270 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price [Abstract] | |||
Options granted in the period- weighted average exercise price (in dollars per share) | $ 50.78 | $ 53.62 | $ 50.70 |
10-year term | |||
Options | |||
Options Granted (in shares) | 597,225 | 296,875 | 297,712 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price [Abstract] | |||
Options granted in the period- weighted average exercise price (in dollars per share) | $ 50.64 | $ 53.61 | $ 50.69 |
Stock-Based Compensation - S106
Stock-Based Compensation - Summary of Additional Information of Stock Option Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Weighted-average remaining contractual term (in years) | 4 years 8 months 12 days | 4 years 3 months 26 days |
Aggregate intrinsic value | $ 87,286 | $ 141,728 |
Weighted-average remaining contractual term (in years) | 2 years 11 months 16 days | 2 years 8 months 27 days |
Aggregate intrinsic value | $ 63,395 | $ 104,885 |
Stock-Based Compensation - Sele
Stock-Based Compensation - Selected Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted-average grant-date fair value of options granted (in dollars per share) | $ 9.04 | $ 11.97 | $ 14.77 |
Intrinsic value of options exercised | $ 73,995 | $ 54,854 | $ 61,229 |
Cash received from options exercised | 61,329 | 35,958 | 56,294 |
Actual tax benefit received | $ 25,898 | $ 24,470 | $ 23,232 |
Stock-Based Compensation - S108
Stock-Based Compensation - Schedule of Additional Information on Unvested Options (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average remaining contractual term (in years) | 4 years 8 months 12 days | 4 years 3 months 26 days |
Aggregate intrinsic value | $ 87,286 | $ 141,728 |
Unvested Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding (in shares) | 3,857,744 | 3,960,780 |
Weighted-average exercise price (in dollars per share) | $ 50.97 | $ 47.86 |
Weighted-average remaining contractual term (in years) | 6 years 1 month 10 days | 5 years 9 months 26 days |
Aggregate intrinsic value | $ 23,891 | $ 36,843 |
Stock-Based Compensation - S109
Stock-Based Compensation - Summary of Restricted Stock and Restricted Stock Units Granted (Detail) - USD ($) $ / shares in Units, $ in Thousands | Feb. 21, 2017 | Feb. 24, 2016 | Jan. 27, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares (in shares) | 186,961 | 193,788 | 210,613 | |||
Assumed adjustment for performance objectives (in shares) | (35,073) | (58,056) | 22,060 | |||
Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Settlement of performance shares | 159,020 | 211,287 | ||||
Shares (in shares) | 167,500 | 179,500 | 179,250 | |||
Price per share (in dollars per share) | $ 50.64 | $ 53.61 | $ 51.41 | |||
Assumed adjustment for performance objectives (in shares) | (35,073) | (58,056) | 22,060 | |||
Aggregate value | $ 8,482 | $ 9,623 | $ 9,215 | |||
Percent vested | 0.00% | 0.00% | 0.00% | |||
Executive Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares (in shares) | 0 | 0 | 12,000 | |||
Price per share (in dollars per share) | $ 0 | $ 0 | $ 50.69 | |||
Assumed adjustment for performance objectives (in shares) | ||||||
Aggregate value | $ 0 | $ 0 | $ 608 | |||
Percent vested | 0.00% | 0.00% | 0.00% | |||
Directors Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares (in shares) | 12,549 | 6,648 | 7,041 | |||
Price per share (in dollars per share) | $ 57.39 | $ 54.16 | $ 51.62 | |||
Assumed adjustment for performance objectives (in shares) | ||||||
Aggregate value | $ 720 | $ 360 | $ 363 | |||
Percent vested | 85.00% | 100.00% | 100.00% | |||
Directors Restricted Stock Units Including Dividend Equivalents | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares (in shares) | 6,912 | 7,640 | 12,322 | |||
Price per share (in dollars per share) | $ 56.74 | $ 54.44 | $ 51.69 | |||
Aggregate value | $ 392 | $ 416 | $ 637 | |||
Percent vested | 100.00% | 100.00% | 100.00% | |||
Subsequent Event | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Settlement of performance shares | 119,896 |
Stock-Based Compensation - A110
Stock-Based Compensation - Analysis of Unvested Restricted Stock (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Beginning Balance (in shares) | 646,682 | 819,790 | 706,995 |
Grants (in shares) | 186,961 | 193,788 | 210,613 |
Additional performance shares | (35,073) | (58,056) | 22,060 |
Restriction lapses and settlements (in shares) | (306,802) | (287,390) | (109,678) |
Forfeitures (in shares) | 0 | (21,450) | (10,200) |
Ending Balance (in shares) | 491,768 | 646,682 | 819,790 |
Executive Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Beginning Balance (in shares) | 187,665 | 263,430 | 344,445 |
Grants (in shares) | 0 | 0 | 12,000 |
Additional performance shares | |||
Restriction lapses and settlements (in shares) | (130,215) | (61,815) | (90,315) |
Forfeitures (in shares) | 0 | (13,950) | (2,700) |
Ending Balance (in shares) | 57,450 | 187,665 | 263,430 |
Executive Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Beginning Balance (in shares) | 459,017 | 556,360 | 362,550 |
Grants (in shares) | 167,500 | 179,500 | 179,250 |
Additional performance shares | (35,073) | (58,056) | 22,060 |
Restriction lapses and settlements (in shares) | (159,020) | (211,287) | |
Forfeitures (in shares) | 0 | (7,500) | (7,500) |
Ending Balance (in shares) | 432,424 | 459,017 | 556,360 |
Directors Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Beginning Balance (in shares) | 0 | 0 | 0 |
Grants (in shares) | 12,549 | 6,648 | 7,041 |
Additional performance shares | |||
Restriction lapses and settlements (in shares) | (10,655) | (6,648) | (7,041) |
Forfeitures (in shares) | |||
Ending Balance (in shares) | 1,894 | 0 | 0 |
Directors Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Beginning Balance (in shares) | 0 | 0 | 0 |
Grants (in shares) | 6,912 | 7,640 | 12,322 |
Additional performance shares | |||
Restriction lapses and settlements (in shares) | (6,912) | (7,640) | (12,322) |
Forfeitures (in shares) | |||
Ending Balance (in shares) | 0 | 0 | 0 |
Stock-Based Compensation - S111
Stock-Based Compensation - Schedule of Weighted-Average Grant-Date Fair Value of Unvested Restricted Stock (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Executive Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Grant-date fair value per share at January 1, 2016 (in dollars per share) | $ 32.92 | ||
Grants (in dollars per share) | 0 | $ 0 | $ 50.69 |
Restriction lapses (in dollars per share) | (30.47) | ||
Forfeitures (in dollars per share) | 0 | ||
Grant-date fair value per share at December 31, 2016 (in dollars per share) | 38.46 | 32.92 | |
Executive Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Grant-date fair value per share at January 1, 2016 (in dollars per share) | 46.77 | ||
Grants (in dollars per share) | 50.64 | ||
Estimated additional performance shares (in dollars per share) | (70.47) | ||
Restriction lapses (in dollars per share) | (37.40) | ||
Forfeitures (in dollars per share) | 0 | ||
Grant-date fair value per share at December 31, 2016 (in dollars per share) | 49.79 | 46.77 | |
Directors Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Grants (in dollars per share) | 57.39 | $ 54.16 | $ 51.62 |
Restriction lapses (in dollars per share) | (56.32) | ||
Grant-date fair value per share at December 31, 2016 (in dollars per share) | 63.39 | ||
Directors Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Grants (in dollars per share) | 56.32 | ||
Restriction lapses (in dollars per share) | $ (56.32) |
Business Segments - Schedule of
Business Segments - Schedule of Segment Premium Revenue by Each Marketing Groups (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Amount | $ 3,137,034 | $ 2,998,720 | $ 2,836,140 |
% of Total | 100.00% | 100.00% | 100.00% |
United American Independent | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 368,786 | $ 360,501 | $ 322,350 |
% of Total | 12.00% | 12.00% | 11.00% |
Liberty National Exclusive | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 472,274 | $ 480,263 | $ 494,282 |
% of Total | 15.00% | 16.00% | 18.00% |
American Income Exclusive | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 997,737 | $ 911,242 | $ 845,180 |
% of Total | 32.00% | 30.00% | 30.00% |
Family Heritage Exclusive | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 238,941 | $ 223,425 | $ 206,262 |
% of Total | 8.00% | 8.00% | 7.00% |
Direct Response | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 853,158 | $ 816,303 | $ 760,689 |
% of Total | 27.00% | 27.00% | 27.00% |
Other | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 206,138 | $ 206,986 | $ 207,377 |
% of Total | 6.00% | 7.00% | 7.00% |
Life | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 2,189,333 | $ 2,073,065 | $ 1,966,300 |
% of Total | 100.00% | 100.00% | 100.00% |
Life | United American Independent | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 13,733 | $ 15,036 | $ 16,582 |
% of Total | 1.00% | 1.00% | 1.00% |
Life | Liberty National Exclusive | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 270,476 | $ 271,113 | $ 272,265 |
% of Total | 12.00% | 13.00% | 14.00% |
Life | American Income Exclusive | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 913,355 | $ 830,903 | $ 766,458 |
% of Total | 42.00% | 40.00% | 39.00% |
Life | Family Heritage Exclusive | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 2,866 | $ 2,334 | $ 1,595 |
% of Total | 0.00% | 0.00% | 0.00% |
Life | Direct Response | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 782,765 | $ 746,693 | $ 702,023 |
% of Total | 36.00% | 36.00% | 36.00% |
Life | Other | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 206,138 | $ 206,986 | $ 207,377 |
% of Total | 9.00% | 10.00% | 10.00% |
Health | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 947,663 | $ 925,520 | $ 869,440 |
% of Total | 100.00% | 100.00% | 100.00% |
Health | United American Independent | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 355,015 | $ 345,330 | $ 305,368 |
% of Total | 38.00% | 37.00% | 35.00% |
Health | Liberty National Exclusive | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 201,798 | $ 209,150 | $ 222,017 |
% of Total | 21.00% | 23.00% | 25.00% |
Health | American Income Exclusive | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 84,382 | $ 80,339 | $ 78,722 |
% of Total | 9.00% | 9.00% | 9.00% |
Health | Family Heritage Exclusive | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 236,075 | $ 221,091 | $ 204,667 |
% of Total | 25.00% | 24.00% | 24.00% |
Health | Direct Response | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 70,393 | $ 69,610 | $ 58,666 |
% of Total | 7.00% | 7.00% | 7.00% |
Annuity | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 38 | $ 135 | $ 400 |
% of Total | 100.00% | 100.00% | 100.00% |
Annuity | United American Independent | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 38 | $ 135 | $ 400 |
% of Total | 100.00% | 100.00% | 100.00% |
Business Segments - Additional
Business Segments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Administrative settlements | $ 3,795 | $ 1,394 | $ 8,178 |
Administrative settlement, after tax | $ 2,467 | $ 906 | 5,316 |
Litigation settlement amount | 2,337 | ||
Settled Litigation Regarding Non-Insurance Matter | |||
Segment Reporting Information [Line Items] | |||
Litigation settlement amount | 3,700 | ||
Litigation settlement expense, after tax | 2,400 | ||
Settled Litigation Regarding Investments | |||
Segment Reporting Information [Line Items] | |||
Litigation settlement amount | 1,300 | ||
Litigation settlement amount, after tax | $ 853 |
Business Segments - Reconciliat
Business Segments - Reconciliation of Segment Operating Information to Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue: | |||||||||||
Premium | $ 787,908 | $ 783,411 | $ 785,855 | $ 779,860 | $ 756,071 | $ 748,109 | $ 752,484 | $ 742,056 | $ 3,137,034 | $ 2,998,720 | $ 2,836,140 |
Net investment income | 205,488 | 202,720 | 201,642 | 197,053 | 194,319 | 193,213 | 194,823 | 191,596 | 806,903 | 773,951 | 758,286 |
Other income | 1,375 | 2,185 | 2,121 | ||||||||
Total revenue | 3,945,312 | 3,774,856 | 3,596,547 | ||||||||
Expenses: | |||||||||||
Policy benefits | 540,138 | 532,152 | 531,485 | 524,973 | 508,965 | 501,156 | 508,316 | 497,775 | 2,128,748 | 2,016,212 | 1,903,384 |
Policy reserves | 0 | 0 | 0 | ||||||||
Deferred acquisition costs | 0 | 0 | 0 | ||||||||
Amortization of acquisition costs | 116,191 | 116,821 | 117,245 | 118,806 | 111,584 | 111,643 | 111,738 | 110,660 | 469,063 | 445,625 | 415,914 |
Commissions, premium taxes, and non-deferred acquisition costs | 249,174 | 237,541 | 222,463 | ||||||||
Insurance administrative expense | 197,151 | 186,191 | 177,254 | ||||||||
Parent expense | 8,587 | 9,003 | 8,074 | ||||||||
Stock-based compensation expense | 26,326 | 28,664 | 32,203 | ||||||||
Interest expense | 83,345 | 76,642 | 76,126 | ||||||||
Total benefits and expenses | 3,162,394 | 2,999,878 | 2,835,418 | ||||||||
Subtotal | 782,918 | 774,978 | 761,129 | ||||||||
Non-operating items | 4,348 | 1,394 | 10,515 | ||||||||
Measure of segment profitability (pretax) | 787,266 | 776,372 | 771,644 | ||||||||
Deduct applicable income taxes | (237,906) | (253,459) | (252,041) | ||||||||
Net operating income from continuing operations | 549,360 | 522,913 | 519,603 | ||||||||
Add (deduct) realized investment gains (losses) | (18,463) | 3,482 | 4,005 | 293 | (16,663) | 5,140 | 2,613 | 119 | (10,683) | (8,791) | 23,548 |
Deduct legal settlement expenses | (2,337) | ||||||||||
Deduct administrative settlements | (3,795) | (1,394) | (8,178) | ||||||||
Deduct non-operating fees | (553) | ||||||||||
Income before income taxes per Consolidated Statement of Operations | $ 175,982 | $ 201,461 | $ 199,344 | $ 195,448 | $ 175,978 | $ 199,009 | $ 196,723 | $ 194,477 | 772,235 | 766,187 | 784,677 |
Operating Segments | Life | |||||||||||
Revenue: | |||||||||||
Premium | 2,189,333 | 2,073,065 | 1,966,300 | ||||||||
Total revenue | 2,189,333 | 2,073,065 | 1,966,300 | ||||||||
Expenses: | |||||||||||
Policy benefits | 1,475,477 | 1,374,608 | 1,293,384 | ||||||||
Policy reserves | (577,827) | (552,298) | (530,192) | ||||||||
Deferred acquisition costs | 178,946 | 172,947 | 168,100 | ||||||||
Amortization of acquisition costs | 374,499 | 353,595 | 335,345 | ||||||||
Commissions, premium taxes, and non-deferred acquisition costs | 164,476 | 154,811 | 143,174 | ||||||||
Total benefits and expenses | 1,615,571 | 1,503,663 | 1,409,811 | ||||||||
Subtotal | 573,762 | 569,402 | 556,489 | ||||||||
Measure of segment profitability (pretax) | 573,762 | 569,402 | 556,489 | ||||||||
Operating Segments | Health | |||||||||||
Revenue: | |||||||||||
Premium | 947,663 | 925,520 | 869,440 | ||||||||
Total revenue | 947,663 | 925,520 | 869,440 | ||||||||
Expenses: | |||||||||||
Policy benefits | 612,725 | 602,610 | 559,817 | ||||||||
Policy reserves | (73,382) | (69,057) | (64,401) | ||||||||
Deferred acquisition costs | 23,060 | 22,760 | 22,499 | ||||||||
Amortization of acquisition costs | 90,385 | 83,341 | 72,731 | ||||||||
Commissions, premium taxes, and non-deferred acquisition costs | 84,819 | 81,489 | 79,475 | ||||||||
Total benefits and expenses | 737,607 | 721,143 | 670,121 | ||||||||
Subtotal | 210,056 | 204,377 | 199,319 | ||||||||
Measure of segment profitability (pretax) | 210,056 | 204,377 | 199,319 | ||||||||
Operating Segments | Annuity | |||||||||||
Revenue: | |||||||||||
Premium | 38 | 135 | 400 | ||||||||
Total revenue | 38 | 135 | 400 | ||||||||
Expenses: | |||||||||||
Policy benefits | 36,751 | 38,994 | 42,005 | ||||||||
Policy reserves | (51,131) | (53,295) | (55,255) | ||||||||
Deferred acquisition costs | 807 | 1,138 | 1,453 | ||||||||
Amortization of acquisition costs | 4,179 | 8,689 | 7,838 | ||||||||
Commissions, premium taxes, and non-deferred acquisition costs | 38 | 41 | 47 | ||||||||
Total benefits and expenses | (9,356) | (4,433) | (3,912) | ||||||||
Subtotal | 9,394 | 4,568 | 4,312 | ||||||||
Measure of segment profitability (pretax) | 9,394 | 4,568 | 4,312 | ||||||||
Operating Segments | Investment | |||||||||||
Revenue: | |||||||||||
Net investment income | 806,903 | 773,951 | 758,286 | ||||||||
Total revenue | 806,903 | 773,951 | 758,286 | ||||||||
Expenses: | |||||||||||
Policy reserves | 702,340 | 674,650 | 649,848 | ||||||||
Deferred acquisition costs | (202,813) | (196,845) | (192,052) | ||||||||
Interest expense | 83,345 | 76,642 | 76,126 | ||||||||
Total benefits and expenses | 582,872 | 554,447 | 533,922 | ||||||||
Subtotal | 224,031 | 219,504 | 224,364 | ||||||||
Measure of segment profitability (pretax) | 224,031 | 219,504 | 224,364 | ||||||||
Operating Segments | Other | |||||||||||
Revenue: | |||||||||||
Other income | 1,534 | 2,379 | 2,354 | ||||||||
Total revenue | 1,534 | 2,379 | 2,354 | ||||||||
Expenses: | |||||||||||
Insurance administrative expense | 196,598 | 186,191 | 174,832 | ||||||||
Total benefits and expenses | 196,598 | 186,191 | 174,832 | ||||||||
Subtotal | (195,064) | (183,812) | (172,478) | ||||||||
Measure of segment profitability (pretax) | (195,064) | (183,812) | (172,478) | ||||||||
Corporate | |||||||||||
Expenses: | |||||||||||
Parent expense | 8,587 | 9,003 | 8,159 | ||||||||
Stock-based compensation expense | 26,326 | 28,664 | 32,203 | ||||||||
Total benefits and expenses | 34,913 | 37,667 | 40,362 | ||||||||
Subtotal | (34,913) | (37,667) | (40,362) | ||||||||
Measure of segment profitability (pretax) | (34,913) | (37,667) | (40,362) | ||||||||
Adjustments | |||||||||||
Revenue: | |||||||||||
Other income | (159) | (194) | (233) | ||||||||
Total revenue | (159) | (194) | (233) | ||||||||
Expenses: | |||||||||||
Policy benefits | 3,795 | 8,178 | |||||||||
Commissions, premium taxes, and non-deferred acquisition costs | (159) | 1,200 | (233) | ||||||||
Insurance administrative expense | 553 | 2,422 | |||||||||
Parent expense | (85) | ||||||||||
Total benefits and expenses | 4,189 | 1,200 | 10,282 | ||||||||
Subtotal | (4,348) | (1,394) | (10,515) | ||||||||
Non-operating items | 4,348 | 10,515 | |||||||||
Measure of segment profitability (pretax) | $ 0 | $ 0 | $ 0 |
Business Segments - Analysis of
Business Segments - Analysis of Profitability by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Pretax operating income | $ 787,266 | $ 776,372 | $ 771,644 | ||||||||
Applicable taxes | (237,906) | (253,459) | (252,041) | ||||||||
Net operating income from continuing operations | 549,360 | 522,913 | 519,603 | ||||||||
Discontinued operations (after tax) | 10,189 | 10,807 | 14,865 | ||||||||
Total | 559,549 | 533,720 | 534,468 | ||||||||
Realized gains (losses)—investments (after tax) | (6,944) | (5,714) | 15,306 | ||||||||
Legal settlement expenses (after tax) | 0 | 0 | (1,519) | ||||||||
Administrative settlements (after tax) | (2,467) | (906) | (5,316) | ||||||||
Non-operating fees (after tax) | (359) | 0 | 0 | ||||||||
Net income | $ 135,448 | $ 151,869 | $ 138,429 | $ 124,033 | $ 132,956 | $ 145,386 | $ 127,110 | $ 121,648 | 549,779 | 527,100 | 542,939 |
Pretax operating income, Change | 10,894 | 4,728 | |||||||||
Applicable taxes, Change | 15,553 | (1,418) | |||||||||
Net operating income from continuing operations, Change | 26,447 | 3,310 | |||||||||
Discontinued operation (after tax), Change | (618) | (4,058) | |||||||||
Total, Change | 25,829 | (748) | |||||||||
Realized gains (losses)-investments (after tax), Change | (1,230) | (21,020) | |||||||||
Legal settlement expenses (after tax), Change | 0 | 1,519 | |||||||||
Administrative settlements (after tax), Change | (1,561) | 4,410 | |||||||||
Non-operating fees (after tax), Change | (359) | 0 | |||||||||
Net income, Change | $ 22,679 | $ (15,839) | |||||||||
Pretax operating income, Change % | 1.00% | 1.00% | |||||||||
Applicable taxes, Change % | (6.00%) | 1.00% | |||||||||
Net operating income, Change % | 5.00% | 1.00% | |||||||||
Discontinued operation (after tax), Change % | (6.00%) | (27.00%) | |||||||||
Total, Change % | 5.00% | 0.00% | |||||||||
Net income, Change % | 4.00% | (3.00%) | |||||||||
Operating Segments | Life insurance underwriting margin | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Pretax operating income | $ 573,762 | $ 569,402 | 556,489 | ||||||||
Pretax operating income, Change | $ 4,360 | $ 12,913 | |||||||||
Pretax operating income, Change % | 1.00% | 2.00% | |||||||||
Operating Segments | Health insurance underwriting margin | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Pretax operating income | $ 210,056 | $ 204,377 | 199,319 | ||||||||
Pretax operating income, Change | $ 5,679 | $ 5,058 | |||||||||
Pretax operating income, Change % | 3.00% | 3.00% | |||||||||
Operating Segments | Annuity underwriting margin | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Pretax operating income | $ 9,394 | $ 4,568 | 4,312 | ||||||||
Pretax operating income, Change | $ 4,826 | $ 256 | |||||||||
Pretax operating income, Change % | 106.00% | 6.00% | |||||||||
Operating Segments | Investment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Pretax operating income | $ 224,031 | $ 219,504 | 224,364 | ||||||||
Pretax operating income, Change | $ 4,527 | $ (4,860) | |||||||||
Pretax operating income, Change % | 2.00% | (2.00%) | |||||||||
Operating Segments | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Pretax operating income | $ (195,064) | $ (183,812) | (172,478) | ||||||||
Operating Segments | Other | Other income | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Pretax operating income | 1,534 | 2,379 | 2,354 | ||||||||
Pretax operating income, Change | $ (845) | $ 25 | |||||||||
Pretax operating income, Change % | (36.00%) | 1.00% | |||||||||
Operating Segments | Other | Administrative expense | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Pretax operating income | $ (196,598) | $ (186,191) | (174,832) | ||||||||
Pretax operating income, Change | $ (10,407) | $ (11,359) | |||||||||
Pretax operating income, Change % | 6.00% | 6.00% | |||||||||
Operating Segments | Other | Corporate and adjustments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Pretax operating income | $ (34,913) | $ (37,667) | $ (40,362) | ||||||||
Pretax operating income, Change | $ 2,754 | $ 2,695 | |||||||||
Pretax operating income, Change % | (7.00%) | (7.00%) |
Business Segments - Assets by S
Business Segments - Assets by Segment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Cash and invested assets | $ 15,955,891 | $ 14,405,073 | ||
Accrued investment income | 223,148 | 209,915 | ||
Deferred acquisition costs | 3,783,158 | 3,617,135 | $ 3,457,397 | $ 3,325,433 |
Goodwill | 441,591 | 441,591 | ||
Other assets | 1,032,299 | 1,179,499 | ||
Total assets | 21,436,087 | 19,853,213 | ||
Life | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Deferred acquisition costs | 3,261,220 | 3,098,656 | ||
Goodwill | 309,609 | 309,609 | ||
Total assets | 3,570,829 | 3,408,265 | ||
Health | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Deferred acquisition costs | 512,701 | 502,535 | ||
Goodwill | 131,982 | 131,982 | ||
Total assets | 644,683 | 634,517 | ||
Annuity | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Deferred acquisition costs | 9,237 | 15,944 | ||
Total assets | 9,237 | 15,944 | ||
Investment | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Cash and invested assets | 15,955,891 | 14,405,073 | ||
Accrued investment income | 223,148 | 209,915 | ||
Total assets | 16,179,039 | 14,614,988 | ||
Other | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Other assets | 1,032,299 | 1,179,499 | ||
Total assets | $ 1,032,299 | $ 1,179,499 |
Business Segments - Other Balan
Business Segments - Other Balances by Segment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Future policy benefits | $ 12,825,837 | $ 12,245,811 |
Unearned and advance premiums | 64,017 | 67,021 |
Policy claims and other benefits payable | 299,565 | 272,898 |
Debt | 1,397,640 | 1,233,862 |
Other | 2,282,167 | 1,978,069 |
Total | 16,869,226 | 15,797,661 |
Life | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Future policy benefits | 9,825,776 | 9,327,561 |
Unearned and advance premiums | 16,828 | 17,381 |
Policy claims and other benefits payable | 156,437 | 135,778 |
Total | 9,999,041 | 9,480,720 |
Health | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Future policy benefits | 1,706,870 | 1,600,240 |
Unearned and advance premiums | 47,189 | 49,640 |
Policy claims and other benefits payable | 143,128 | 137,120 |
Total | 1,897,187 | 1,787,000 |
Annuity | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Future policy benefits | 1,293,191 | 1,318,010 |
Total | 1,293,191 | 1,318,010 |
Investment | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Debt | 1,397,640 | 1,233,862 |
Total | 1,397,640 | 1,233,862 |
Other | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Other | 2,282,167 | 1,978,069 |
Total | $ 2,282,167 | $ 1,978,069 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2016USD ($)guaranteeleasestate | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Obligation with Joint and Several Liability Arrangement [Line Items] | |||
Retention limits per life | $ 2,000,000 | ||
Percentage of insurance ceded on total life insurance in force (less than) | 0.40% | ||
Ratio of reinsurance ceded to premium income | 0.30% | ||
Life reinsurance assumed ratio to life insurance in force | 1.90% | ||
Reinsurance assumed ratio on premium income | 0.70% | 0.80% | 0.90% |
Rental expense | $ 6,520,000 | $ 6,722,000 | $ 4,200,000 |
Investment in low-income housing interests | $ 280,000,000 | 306,000,000 | |
Number of guarantee arrangements | guarantee | 4 | ||
Guarantee liability | $ 0 | ||
Letters of credit facility outstanding | $ 177,000,000 | $ 177,000,000 | |
Number of states private entities contracted with to conduct audits | state | 47 | ||
Letter of Credit | |||
Obligation with Joint and Several Liability Arrangement [Line Items] | |||
Letter of credit maximum available amount | $ 250,000,000 | ||
Equipment Lease Guarantees | |||
Obligation with Joint and Several Liability Arrangement [Line Items] | |||
Number of leases under guarantee | lease | 3 | ||
Maximum exposure under guarantees | $ 15,000,000 | ||
Private placement fixed maturities | |||
Obligation with Joint and Several Liability Arrangement [Line Items] | |||
Purchase commitment of private placement fixed maturities | $ 8,400,000 | ||
Flight Equipment | Equipment Lease Guarantees | |||
Obligation with Joint and Several Liability Arrangement [Line Items] | |||
Number of leases under guarantee | lease | 2 | ||
Software, Furniture and Equipment | Equipment Lease Guarantees | |||
Obligation with Joint and Several Liability Arrangement [Line Items] | |||
Number of leases under guarantee | lease | 1 |
Commitments and Contingencie119
Commitments and Contingencies - Schedule of Future Minimum Rental Commitments (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 8,182 |
2,018 | 5,254 |
2,019 | 5,047 |
2,020 | 4,898 |
2,021 | 4,625 |
Thereafter | $ 7,801 |
Commitments and Contingencie120
Commitments and Contingencies - Low-Income Housing Commitments (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 34,162 |
2,018 | 18,350 |
2,019 | 2,964 |
2,020 | 838 |
2,021 | 302 |
Thereafter | $ 202 |
Selected Quarterly Data (Una121
Selected Quarterly Data (Unaudited) - Schedule of Selected Quarterly Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Premium income | $ 787,908 | $ 783,411 | $ 785,855 | $ 779,860 | $ 756,071 | $ 748,109 | $ 752,484 | $ 742,056 | $ 3,137,034 | $ 2,998,720 | $ 2,836,140 | |||
Net investment income | 205,488 | 202,720 | 201,642 | 197,053 | 194,319 | 193,213 | 194,823 | 191,596 | 806,903 | 773,951 | 758,286 | |||
Realized investment gains (losses) | (18,463) | 3,482 | 4,005 | 293 | (16,663) | 5,140 | 2,613 | 119 | (10,683) | (8,791) | 23,548 | |||
Total revenue | 975,345 | 989,773 | 991,884 | 977,627 | 933,860 | 947,154 | 950,611 | 934,440 | 3,934,629 | 3,766,065 | 3,620,095 | |||
Policyholder benefits | 540,138 | 532,152 | 531,485 | 524,973 | 508,965 | 501,156 | 508,316 | 497,775 | 2,128,748 | 2,016,212 | 1,903,384 | |||
Amortization of deferred acquisition costs | 116,191 | 116,821 | 117,245 | 118,806 | 111,584 | 111,643 | 111,738 | 110,660 | 469,063 | 445,625 | 415,914 | |||
Pretax income from continuing operations | 175,982 | 201,461 | 199,344 | 195,448 | 175,978 | 199,009 | 196,723 | 194,477 | 772,235 | 766,187 | 784,677 | |||
Income from continuing operations | 124,812 | 141,910 | 139,294 | 133,574 | 119,130 | 133,858 | 132,527 | 130,778 | 539,590 | 516,293 | 528,074 | |||
Income from discontinued operations | 10,636 | 9,959 | (865) | (9,541) | 13,826 | 11,528 | (5,417) | (9,130) | 10,189 | 10,807 | 14,865 | |||
Net income | $ 135,448 | $ 151,869 | $ 138,429 | $ 124,033 | $ 132,956 | $ 145,386 | $ 127,110 | $ 121,648 | $ 549,779 | $ 527,100 | $ 542,939 | |||
Basic net income per common share: | ||||||||||||||
Continuing operations (in dollars per share) | $ 1.05 | $ 1.19 | $ 1.16 | $ 1.10 | $ 0.97 | $ 1.08 | $ 1.05 | $ 1.03 | $ 4.50 | $ 4.13 | $ 4.04 | |||
Discontinued operations (in dollars per share) | 0.09 | 0.08 | (0.01) | (0.08) | 0.11 | 0.09 | (0.04) | (0.07) | 0.08 | 0.08 | 0.11 | |||
Total basic net income per common share (in dollar per share) | 1.14 | 1.27 | 1.15 | 1.02 | 1.08 | 1.17 | 1.01 | 0.96 | 4.58 | 4.21 | 4.15 | |||
Diluted net income per common share: | ||||||||||||||
Continuing operations (in dollars per share) | 1.03 | 1.16 | 1.13 | 1.08 | 0.96 | 1.06 | 1.04 | 1.02 | 4.41 | [1] | 4.07 | [1] | 3.98 | [1] |
Discontinued operations (in dollars per share) | 0.09 | 0.09 | 0 | (0.07) | 0.11 | 0.09 | (0.04) | (0.07) | 0.08 | [1] | 0.09 | [1] | 0.11 | [1] |
Total diluted net income per common share (in dollars per share) | $ 1.12 | $ 1.25 | $ 1.13 | $ 1.01 | $ 1.07 | $ 1.15 | $ 1 | $ 0.95 | $ 4.49 | [1] | $ 4.16 | [1] | $ 4.09 | [1] |
[1] | Certain current year amounts were prospectively adjusted to give effect to the adoption of ASU 2016-09 related to excess tax benefits from stock compensation as described in Note 1—Significant Accounting Policies under "Accounting Pronouncements Adopted in the Current Year." |
Schedule II. Condensed Finan122
Schedule II. Condensed Financial Information of Registrant (Condensed Balance Sheets) (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets: | ||||
Cash | $ 76,163 | $ 61,383 | $ 66,019 | $ 36,943 |
Other assets | 520,313 | 522,104 | ||
Total assets | 21,436,087 | 19,853,213 | ||
Liabilities: | ||||
Short-term debt | 264,475 | 490,129 | ||
Long-term debt | 1,133,165 | 743,733 | ||
Other liabilities | 413,760 | 380,158 | ||
Total liabilities | 16,869,226 | 15,797,661 | ||
Shareholders' equity: | ||||
Preferred stock | 0 | 0 | ||
Common stock | 127,218 | 130,218 | ||
Additional paid-in capital | 490,421 | 482,284 | ||
Accumulated other comprehensive income | 577,574 | 231,947 | ||
Retained earnings | 3,890,798 | 3,614,369 | ||
Treasury stock | (519,150) | (403,266) | ||
Total shareholders’ equity | 4,566,861 | 4,055,552 | 4,697,466 | 3,776,342 |
Total liabilities and shareholders’ equity | 21,436,087 | 19,853,213 | ||
Parent Company | ||||
Assets: | ||||
Long-term investments | 33,586 | 35,498 | ||
Cash | 0 | 0 | $ 0 | $ 0 |
Investment in affiliates | 6,004,429 | 5,438,749 | ||
Due from affiliates | 96,005 | 50,765 | ||
Taxes receivable from affiliates | 88,406 | 79,599 | ||
Other assets | 119,801 | 93,936 | ||
Total assets | 6,342,227 | 5,698,547 | ||
Liabilities: | ||||
Short-term debt | 264,475 | 490,129 | ||
Long-term debt | 1,282,891 | 893,417 | ||
Due to affiliates | 0 | 57,157 | ||
Other liabilities | 228,000 | 202,292 | ||
Total liabilities | 1,775,366 | 1,642,995 | ||
Shareholders' equity: | ||||
Preferred stock | 351 | 351 | ||
Common stock | 127,218 | 130,218 | ||
Additional paid-in capital | 840,932 | 832,795 | ||
Accumulated other comprehensive income | 577,574 | 231,947 | ||
Retained earnings | 3,890,798 | 3,614,369 | ||
Treasury stock | (870,012) | (754,128) | ||
Total shareholders’ equity | 4,566,861 | 4,055,552 | ||
Total liabilities and shareholders’ equity | $ 6,342,227 | $ 5,698,547 |
Schedule II. Condensed Finan123
Schedule II. Condensed Financial Information of Registrant (Condensed Statements of Operations) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net investment income | $ 205,488 | $ 202,720 | $ 201,642 | $ 197,053 | $ 194,319 | $ 193,213 | $ 194,823 | $ 191,596 | $ 806,903 | $ 773,951 | $ 758,286 | |
Realized investment gains (losses) | (18,463) | 3,482 | 4,005 | 293 | (16,663) | 5,140 | 2,613 | 119 | (10,683) | (8,791) | 23,548 | |
Total revenue | 975,345 | 989,773 | 991,884 | 977,627 | 933,860 | 947,154 | 950,611 | 934,440 | 3,934,629 | 3,766,065 | 3,620,095 | |
General operating expenses | 232,064 | 223,858 | 217,531 | |||||||||
Interest expense | 83,345 | 76,642 | 76,126 | |||||||||
Total benefits and expenses | 3,162,394 | 2,999,878 | 2,835,418 | |||||||||
Income before income taxes | 175,982 | 201,461 | 199,344 | 195,448 | 175,978 | 199,009 | 196,723 | 194,477 | 772,235 | 766,187 | 784,677 | |
Income taxes | [1] | (232,645) | (249,894) | (256,603) | ||||||||
Net income | $ 135,448 | $ 151,869 | $ 138,429 | $ 124,033 | $ 132,956 | $ 145,386 | $ 127,110 | $ 121,648 | 549,779 | 527,100 | 542,939 | |
Other comprehensive income (loss): | ||||||||||||
Comprehensive income (loss) | 895,406 | (238,405) | 1,329,410 | |||||||||
Parent Company | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net investment income | 25,352 | 23,715 | 22,259 | |||||||||
Realized investment gains (losses) | 0 | 8 | 4,767 | |||||||||
Total revenue | 25,352 | 23,723 | 27,026 | |||||||||
General operating expenses | 52,613 | 54,100 | 53,235 | |||||||||
Reimbursements from affiliates | (54,288) | (53,436) | (53,040) | |||||||||
Interest expense | 86,853 | 79,677 | 79,366 | |||||||||
Total benefits and expenses | 85,178 | 80,341 | 79,561 | |||||||||
Income before income taxes | (59,826) | (56,618) | (52,535) | |||||||||
Income taxes | 23,479 | 15,542 | 13,335 | |||||||||
Net operating loss before equity in earnings of affiliates | (36,347) | (41,076) | (39,200) | |||||||||
Equity in earnings of affiliates | 586,126 | 568,176 | 582,139 | |||||||||
Net income | 549,779 | 527,100 | 542,939 | |||||||||
Other comprehensive income (loss): | ||||||||||||
Attributable to Parent Company | (11,314) | (3,539) | (28,680) | |||||||||
Attributable to affiliates | 356,941 | (761,966) | 815,151 | |||||||||
Comprehensive income (loss) | $ 895,406 | $ (238,405) | $ 1,329,410 | |||||||||
[1] | Certain current year amounts were prospectively adjusted to give effect to the adoption of ASU 2016-09 related to excess tax benefits from stock compensation as described in Note 1—Significant Accounting Policies under "Accounting Pronouncements Adopted in the Current Year." |
Schedule II. Condensed Finan124
Schedule II. Condensed Financial Information of Registrant (Condensed Statement of Cash Flows) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net income | $ 135,448 | $ 151,869 | $ 138,429 | $ 124,033 | $ 132,956 | $ 145,386 | $ 127,110 | $ 121,648 | $ 549,779 | $ 527,100 | $ 542,939 | |
Other, net | 20,079 | 13,985 | (38,354) | |||||||||
Cash provided from (used for) operating activities | 1,398,708 | 1,120,050 | 864,708 | |||||||||
Cash provided from (used for) investing activities: | ||||||||||||
Disposition of investments | 578,004 | 606,690 | 383,742 | |||||||||
Net decrease (increase) in short-term investments | (17,274) | (38,884) | 61,008 | |||||||||
Additions to properties | (25,162) | (36,957) | (19,367) | |||||||||
Cash provided from (used for) investing activities | (1,062,436) | (633,350) | (350,163) | |||||||||
Cash provided from (used for) financing activities: | ||||||||||||
Repayment of debt | (250,000) | 0 | 0 | |||||||||
Proceeds from issuance of debt | 400,000 | 0 | 0 | |||||||||
Payment for debt issuance costs | (9,638) | 0 | 0 | |||||||||
Net issuance (repayment) of commercial paper | 22,224 | 1,978 | 9,328 | |||||||||
Issuance of stock | 61,329 | 35,958 | 56,294 | |||||||||
Acquisitions of treasury stock | (404,784) | (418,526) | (449,308) | |||||||||
Excess tax benefit from stock option exercises | [1] | 0 | 17,577 | 18,524 | ||||||||
Payment of dividends | (66,931) | (66,899) | (65,006) | |||||||||
Cash provided from (used for) financing activities | (319,791) | (525,705) | (499,960) | |||||||||
Increase (decrease) in cash | 14,780 | (4,636) | 29,076 | |||||||||
Cash at beginning of year | 61,383 | 66,019 | 61,383 | 66,019 | 36,943 | |||||||
Cash at end of year | 76,163 | 61,383 | 76,163 | 61,383 | 66,019 | |||||||
Parent Company | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net income | 549,779 | 527,100 | 542,939 | |||||||||
Equity in earnings of affiliates | (586,126) | (568,176) | (582,139) | |||||||||
Cash dividends from subsidiaries | 437,566 | 466,416 | 478,840 | |||||||||
Other, net | (6,718) | 20,371 | 17,842 | |||||||||
Cash provided from (used for) operating activities | 394,501 | 445,711 | 457,482 | |||||||||
Cash provided from (used for) investing activities: | ||||||||||||
Disposition of investments | 0 | 0 | 5,064 | |||||||||
Net decrease (increase) in short-term investments | (3,466) | 17,338 | 2,729 | |||||||||
Investment in subsidiaries | (35,000) | (2) | 0 | |||||||||
Additions to properties | (21,965) | (468) | 0 | |||||||||
Loaned money to affiliates | (363,056) | (282,508) | (81,000) | |||||||||
Repayments from affiliates | 318,056 | 282,508 | 81,000 | |||||||||
Cash provided from (used for) investing activities | (105,431) | 16,868 | 7,793 | |||||||||
Cash provided from (used for) financing activities: | ||||||||||||
Repayment of debt | (250,000) | 0 | 0 | |||||||||
Proceeds from issuance of debt | 400,000 | 0 | 0 | |||||||||
Payment for debt issuance costs | (9,638) | 0 | 0 | |||||||||
Net issuance (repayment) of commercial paper | 22,224 | 1,978 | 9,328 | |||||||||
Issuance of stock | 61,329 | 35,958 | 56,294 | |||||||||
Acquisitions of treasury stock | (404,784) | (418,526) | (449,309) | |||||||||
Borrowed money from affiliate | 60,000 | 15,000 | 168,000 | |||||||||
Repayments to affiliates | (78,000) | (15,000) | (168,000) | |||||||||
Excess tax benefit from stock option exercises | 0 | 8,180 | 6,688 | |||||||||
Payment of dividends | (90,201) | (90,169) | (88,276) | |||||||||
Cash provided from (used for) financing activities | (289,070) | (462,579) | (465,275) | |||||||||
Increase (decrease) in cash | 0 | 0 | 0 | |||||||||
Cash at beginning of year | $ 0 | $ 0 | 0 | 0 | 0 | |||||||
Cash at end of year | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
[1] | Certain current year amounts were prospectively adjusted to give effect to the adoption of ASU 2016-09 related to excess tax benefits from stock compensation as described in Note 1—Significant Accounting Policies under "Accounting Pronouncements Adopted in the Current Year." |
Schedule II. Condensed Finan125
Schedule II. Condensed Financial Information of Registrant (Notes To Condensed Financial Statements) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Dividends from subsidiaries | $ 438,000 | $ 466,000 | $ 479,000 |
Stock-based compensation not involving cash | 26,326 | 28,664 | 32,203 |
Interest paid | 81,338 | 74,792 | 77,066 |
Income taxes received | $ 79,790 | $ 110,650 | 100,922 |
Preferred stock, shares outstanding | 0 | 0 | |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends from subsidiaries | $ 437,566 | $ 466,416 | 478,840 |
Stock-based compensation not involving cash | 26,326 | 28,664 | 32,203 |
Borrowed money from affiliate | 0 | 56,503 | 0 |
Investment in subsidiaries | 0 | 39,206 | 0 |
Purchase of agent debit balances | 0 | 17,297 | 0 |
Interest paid | 84,952 | 77,920 | 77,663 |
Income taxes received | $ (20,838) | $ (22,009) | $ (25,581) |
Preferred stock, liquidation distribution available to stockholders, per share in thousands | $ 1,000 | ||
Preferred stock, liquidating distribution legally available, aggregate value | $ 351,000 | ||
Cumulative Series A Preferred Stock | Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Preferred stock, shares issued | 351,000 | ||
Preferred stock, shares outstanding | 351,000 | ||
6.50% Cumulative Preferred Stock, Series A | Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Preferred stock, shares issued | 280,000 | ||
Preferred stock, shares outstanding | 280,000 | ||
Preferred stock, dividend rate, percentage | 6.50% | ||
7.15% Cumulative Preferred Stock, Series A | Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Preferred stock, shares issued | 71,000 | ||
Preferred stock, shares outstanding | 71,000 | ||
Preferred stock, dividend rate, percentage | 7.15% |
Schedule I. Reinsurance (Detail
Schedule I. Reinsurance (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Life insurance in force, gross amount | $ 174,314,897 | $ 167,677,206 | $ 160,455,963 |
Life insurance in force, ceded to other companies | 725,867 | 729,739 | 795,192 |
Life insurance in force, assumed from other companies | 3,352,113 | 3,498,826 | 3,658,511 |
Life insurance in force, net amount | $ 176,941,143 | $ 170,446,293 | $ 163,319,282 |
Life insurance in force, percentage of amount assumed to net | 1.90% | 2.10% | 2.20% |
Premium, gross amount | $ 3,103,835 | $ 2,963,032 | $ 2,796,996 |
Premium, ceded to other companies | 7,981 | 7,623 | 7,565 |
Premium, assumed from other companies | 22,915 | 24,007 | 25,774 |
Premium income | $ 3,118,769 | $ 2,979,416 | $ 2,815,205 |
Percentage of amount assumed to net | 0.70% | 0.80% | 0.90% |
Policy charges | $ 18,300 | $ 19,300 | $ 20,900 |
Life insurance | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Premium, gross amount | 2,152,698 | 2,034,373 | 1,924,605 |
Premium, ceded to other companies | 4,507 | 4,484 | 4,614 |
Premium, assumed from other companies | 22,915 | 24,007 | 25,774 |
Premium income | $ 2,171,106 | $ 2,053,896 | $ 1,945,765 |
Percentage of amount assumed to net | 1.10% | 1.20% | 1.30% |
Health insurance | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Premium, gross amount | $ 951,137 | $ 928,659 | $ 872,391 |
Premium, ceded to other companies | 3,474 | 3,139 | 2,951 |
Premium, assumed from other companies | 0 | 0 | 0 |
Premium income | $ 947,663 | $ 925,520 | $ 869,440 |
Percentage of amount assumed to net | 0.00% | 0.00% | 0.00% |