Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 28, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | TORCHMARK CORP | |
Entity Central Index Key | 320,335 | |
Trading Symbol | TMK | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 116,982,255 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Investments: | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | $ 15,874,131 | $ 15,245,861 |
Policy loans | 510,574 | 507,975 |
Other long-term investments | 53,741 | 53,852 |
Short-term investments | 120,990 | 72,040 |
Total investments | 16,559,436 | 15,879,728 |
Cash | 61,754 | 76,163 |
Accrued investment income | 235,120 | 223,148 |
Other receivables | 370,306 | 384,454 |
Deferred acquisition costs | 3,821,718 | 3,783,158 |
Goodwill | 441,591 | 441,591 |
Other assets | 513,706 | 520,313 |
Assets related to discontinued operations | 83,345 | 127,532 |
Total assets | 22,086,976 | 21,436,087 |
Liabilities: | ||
Future policy benefits | 12,972,517 | 12,825,837 |
Unearned and advance premiums | 70,022 | 64,017 |
Policy claims and other benefits payable | 301,944 | 299,565 |
Other policyholders' funds | 97,015 | 96,993 |
Total policy liabilities | 13,441,498 | 13,286,412 |
Current and deferred income taxes payable | 1,864,015 | 1,743,990 |
Other liabilities | 563,102 | 413,760 |
Short-term debt | 327,019 | 264,475 |
Long-term debt (estimated fair value: 2017—$1,244,283; 2016—$1,233,019) | 1,132,791 | 1,133,165 |
Liabilities related to discontinued operations | 13,724 | 27,424 |
Total liabilities | 17,342,149 | 16,869,226 |
Commitments and Contingencies (Note 6) | ||
Shareholders’ equity: | ||
Preferred stock, par value $1 per share—Authorized 5,000,000 shares; outstanding: -0- in 2017 and in 2016 | 0 | 0 |
Common stock, par value $1 per share—Authorized 320,000,000 shares; outstanding: (2017—127,218,183 issued, less 9,951,143 held in treasury and 2016—127,218,183 issued, less 9,187,075 held in treasury) | 127,218 | 127,218 |
Additional paid-in capital | 491,772 | 490,421 |
Accumulated other comprehensive income | 722,865 | 577,574 |
Retained earnings | 3,994,665 | 3,890,798 |
Treasury stock, at cost | (591,693) | (519,150) |
Total shareholders’ equity | 4,744,827 | 4,566,861 |
Total liabilities and shareholders’ equity | $ 22,086,976 | $ 21,436,087 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available for sale, amortized cost | $ 14,602,250 | $ 14,188,050 |
Long-term debt, fair value | $ 1,244,283 | $ 1,233,019 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 320,000,000 | 320,000,000 |
Common stock, shares issued (in shares) | 127,218,183 | 127,218,183 |
Common stock, shares held in treasury (in shares) | 9,951,143 | 9,187,075 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue: | ||
Life premium | $ 575,837 | $ 544,151 |
Health premium | 244,791 | 235,697 |
Other premium | 3 | 12 |
Total premium | 820,631 | 779,860 |
Net investment income | 208,282 | 197,053 |
Realized investment gains (losses) | (5,748) | 293 |
Other income | 416 | 421 |
Total revenue | 1,023,581 | 977,627 |
Benefits and expenses: | ||
Life policyholder benefits | 391,079 | 362,860 |
Health policyholder benefits | 157,751 | 152,775 |
Other policyholder benefits | 8,946 | 9,338 |
Total policyholder benefits | 557,776 | 524,973 |
Amortization of deferred acquisition costs | 125,908 | 118,806 |
Commissions, premium taxes, and non-deferred acquisition costs | 65,116 | 61,602 |
Other operating expense | 62,341 | 57,429 |
Interest expense | 20,699 | 19,369 |
Total benefits and expenses | 831,840 | 782,179 |
Income before income taxes | 191,741 | 195,448 |
Income taxes | (54,563) | (61,874) |
Income from continuing operations | 137,178 | 133,574 |
Income (loss) from discontinued operations, net of tax | (3,637) | (9,541) |
Net income | $ 133,541 | $ 124,033 |
Basic net income (loss) per common share: | ||
Continuing operations (in dollars per share) | $ 1.16 | $ 1.10 |
Discontinued operations (in dollars per share) | (0.03) | (0.08) |
Total basic net income per common share (in dollars per share) | 1.13 | 1.02 |
Diluted net income (loss) per common share: | ||
Continuing operations (in dollars per share) | 1.14 | 1.08 |
Discontinued operations (in dollars per share) | (0.03) | (0.07) |
Total diluted net income per common share (in dollars per share) | 1.11 | 1.01 |
Dividends declared per common share (in dollars per share) | $ 0.15 | $ 0.14 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net income | $ 133,541 | $ 124,033 |
Unrealized gains (losses) on securities: | ||
Total unrealized investment gains (losses) | 215,066 | 464,593 |
Less applicable tax (expense) benefit | (75,323) | (162,589) |
Unrealized investment gains (losses), net of tax | 139,743 | 302,004 |
Unrealized gains (losses) attributable to deferred acquisition costs | (770) | (2,769) |
Less applicable tax (expense) benefit | 270 | 969 |
Unrealized gains (losses) attributable to deferred acquisition costs, net of tax | (500) | (1,800) |
Foreign exchange translation adjustments, other than securities | 4,214 | 1,760 |
Less applicable tax (expense) benefit | (428) | (540) |
Foreign exchange translation adjustments, other than securities, net of tax | 3,786 | 1,220 |
Amortization of pension costs | 3,109 | 2,552 |
Experience gain (loss) | 371 | 686 |
Pension adjustments | 3,480 | 3,238 |
Less applicable tax (expense) benefit | (1,218) | (1,134) |
Pension adjustments, net of tax | 2,262 | 2,104 |
Other comprehensive income (loss) | 145,291 | 303,528 |
Comprehensive income (loss) | 278,832 | 427,561 |
Securities [Member] | ||
Unrealized gains (losses) on securities: | ||
Unrealized holding gains (losses) arising during period | 215,527 | 465,157 |
Reclassification adjustment for (gains) losses on securities included in net income | (1,035) | (313) |
Reclassification adjustment for amortization of (discount) and premium | (437) | (1,364) |
Foreign exchange adjustment on securities recorded at fair value | 15 | 455 |
Unrealized gains (losses) on securities | 214,070 | 463,935 |
Other Investments [Member] | ||
Unrealized gains (losses) on securities: | ||
Unrealized gains (losses) on other investments | $ 996 | $ 658 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Stockholders' equity, beginning 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 [Roll Forward] | |||||||
Comprehensive income (loss) | 427,561 | 303,528 | 124,033 | ||||
Common dividends declared ($0.14 in 2016 and $0.15 in 2017) | (16,979) | (16,979) | |||||
Acquisition of treasury stock | (85,089) | (85,089) | |||||
Stock-based compensation | 6,935 | 388 | (2,224) | 8,771 | |||
Exercise of stock options | 3,763 | (4,020) | 7,783 | ||||
Stockholders' equity, ending balance at Mar. 31, 2016 | 4,391,743 | 0 | 130,218 | 482,672 | 535,475 | 3,715,179 | (471,801) |
Stockholders' equity, beginning balance at Dec. 31, 2016 | 4,566,861 | 0 | 127,218 | 490,421 | 577,574 | 3,890,798 | (519,150) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income (loss) | 278,832 | 145,291 | 133,541 | ||||
Common dividends declared ($0.14 in 2016 and $0.15 in 2017) | (17,567) | (17,567) | |||||
Acquisition of treasury stock | (113,719) | (113,719) | |||||
Stock-based compensation | 8,195 | 1,351 | (606) | 7,450 | |||
Exercise of stock options | 22,225 | (11,501) | 33,726 | ||||
Stockholders' equity, ending balance at Mar. 31, 2017 | $ 4,744,827 | $ 0 | $ 127,218 | $ 491,772 | $ 722,865 | $ 3,994,665 | $ (591,693) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per common share (in dollars per share) | $ 0.15 | $ 0.14 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Cash Flows [Abstract] | ||
Cash provided from operating activities | $ 460,756 | $ 340,738 |
Investments sold or matured: | ||
Fixed maturities available for sale—sold | 0 | 14,331 |
Fixed maturities available for sale—matured, called, and repaid | 108,899 | 44,622 |
Other long-term investments | 3,071 | 8 |
Total long-term investments sold or matured | 111,970 | 58,961 |
Acquisition of investments: | ||
Fixed maturities—available for sale | (461,324) | (287,204) |
Other long-term investments | 0 | (644) |
Total investments acquired | (461,324) | (287,848) |
Net increase in policy loans | (2,599) | (4,378) |
Net (increase) decrease in short-term investments | (48,950) | (89,905) |
Additions to property and equipment | (3,978) | (3,879) |
Sale of other assets | 18 | 0 |
Investment in low-income housing interests | (5,875) | (7,925) |
Cash provided from (used for) investing activities | (410,738) | (334,974) |
Cash provided from (used for) financing activities: | ||
Issuance of common stock | 22,225 | 3,763 |
Cash dividends paid to shareholders | (16,503) | (16,524) |
Net borrowing (repayment) of commercial paper | 61,919 | 66,899 |
Acquisition of treasury stock | (113,719) | (85,089) |
Net receipts (payments) from deposit-type product | (21,174) | (17,641) |
Cash provided from (used for) financing activities | (67,252) | (48,592) |
Effect of foreign exchange rate changes on cash | 2,825 | (5,797) |
Net increase (decrease) in cash | (14,409) | (48,625) |
Cash at beginning of year | 76,163 | 61,383 |
Cash at end of period | $ 61,754 | $ 12,758 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation: The accompanying condensed consolidated financial statements of Torchmark Corporation (Torchmark or alternatively, the Company) have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the annual disclosures required by accounting principles generally accepted in the United States of America (GAAP). However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial position at March 31, 2017 , and the condensed consolidated results of operations, comprehensive income, and cash flows for the periods ended March 31, 2017 and 2016 . The interim period condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements that are included in the Form 10-K filed with the Securities Exchange Commission (SEC) on February 27, 2017. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | Accounting Pronouncements Not Yet Adopted ASU 2016-01: In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instrument—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which revises the classification and measurement of certain equity investments such that they are measured at fair value through net income. The standard will become effective for the Company beginning January 1, 2018 and early adoption is permitted. The Company does not expect the adoption to have a significant impact on the financial statements. ASU 2016-02: 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 the 2016 form 10-K Note 15—Commitments and Contingencies for consideration of the non-cancellable operating lease commitments. ASU 2016-13: 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. ASU 2016-15: In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments to provide uniformity in the classification of cash receipts and payments recorded in the statement of cash flows including debt prepayment or debt extinguishment costs, settlement 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. ASU 2016-16: In October 2016, the FASB issued Accounting Standards Update No. 2016-16, Income Taxes (Topic 740): 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. ASU 2017-04: In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles—Goodwill and Other (Topic 350): 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. ASU 2017-07: In March 2017, the FASB issued Accounting Standards Update No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This guidance was issued to simplify the reporting of pension costs by disaggregating the service-cost component from the other components of net benefit costs and reporting it separately on the income statement. The service-cost component is the only component of net benefit cost that will be eligible for capitalization. The guidance will become effective on January 1, 2018 with a retrospective transition method for separation of net benefit costs and a prospective transition method for the capitalization of service costs. The Company is currently evaluating the standard to determine its impact. ASU 2017-08: In March 2017, the FASB issued Accounting Standards Update No. 2017-08, Receivables —Nonrefundable Fees and Other Costs (Topic 310-20): Premium Amortization on Purchased Callable Debt Securities. This guidance was issued to shorten the amortization period for certain callable debt securities held at a premium. The guidance requires the premium to be amortized to the earliest call date. It will become effective on January 1, 2019 with early adoption permitted, including during interim periods. The adoption is to be applied on a modified retrospective basis through an adjustment to retained earnings. The Company is currently evaluating the standard to determine its impact. |
Supplemental Information about
Supplemental Information about Changes to Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Supplemental Information about Changes to Accumulated Other Comprehensive Income | Supplemental Information about Changes to Accumulated Other Comprehensive Income An analysis of the change in balance by component of Accumulated Other Comprehensive Income is as follows for the three month periods ended March 31, 2017 and 2016 . Components of Accumulated Other Comprehensive Income Three Months Ended March 31, 2017 Available Deferred Foreign Pension Total Balance at January 1, 2017 $ 692,314 $ (6,682 ) $ 4,967 $ (113,025 ) $ 577,574 Other comprehensive income (loss) before reclassifications, net of tax 140,700 (500 ) 3,786 241 144,227 Reclassifications, net of tax (957 ) — — 2,021 1,064 Other comprehensive income (loss) 139,743 (500 ) 3,786 2,262 145,291 Balance at March 31, 2017 $ 832,057 $ (7,182 ) $ 8,753 $ (110,763 ) $ 722,865 Three Months Ended March 31, 2016 Available Deferred Foreign Pension Total Balance at January 1, 2016 $ 332,333 $ (5,115 ) $ 3,627 $ (98,898 ) $ 231,947 Other comprehensive income (loss) before reclassifications, net of tax 303,094 (1,800 ) 1,220 445 302,959 Reclassifications, net of tax (1,090 ) — — 1,659 569 Other comprehensive income (loss) 302,004 (1,800 ) 1,220 2,104 303,528 Balance at March 31, 2016 $ 634,337 $ (6,915 ) $ 4,847 $ (96,794 ) $ 535,475 Reclassifications out of Accumulated Other Comprehensive Income are presented below for the three month periods ended March 31, 2017 and 2016 . Reclassification Adjustments Three Months Ended Affected line items in the Statement of Operations 2017 2016 Unrealized investment gains (losses) on available for sale assets: Realized (gains) losses $ (1,035 ) $ (313 ) Realized gains (losses) Amortization of (discount) premium (437 ) (1,364 ) Net investment income Total before tax (1,472 ) (1,677 ) Tax 515 587 Income taxes Total after tax (957 ) (1,090 ) Pension adjustments: Amortization of prior service cost 119 120 Other operating expenses Amortization of actuarial gain (loss) 2,990 2,432 Other operating expenses Total before tax 3,109 2,552 Tax (1,088 ) (893 ) Income taxes Total after tax 2,021 1,659 Total reclassifications (after tax) $ 1,064 $ 569 |
Investments
Investments | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 is as follows: Portfolio Composition as of March 31, 2017 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (1) % of Total Fixed Maturities (2) Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 385,755 $ 1,830 $ (6,424 ) $ 381,161 3 States, municipalities, and political subdivisions 1,184,062 120,066 (1,029 ) 1,303,099 8 Foreign governments 20,066 1,466 (8 ) 21,524 — Corporates, by sector: Financial 3,137,495 331,704 (34,260 ) 3,434,939 21 Utilities 1,896,115 268,397 (9,842 ) 2,154,670 14 Energy 1,589,982 145,310 (31,320 ) 1,703,972 11 Other corporate sectors 5,824,044 494,335 (59,618 ) 6,258,761 39 Total corporates 12,447,636 1,239,746 (135,040 ) 13,552,342 85 Collateralized debt obligations 59,976 17,515 (9,648 ) 67,843 — Other asset-backed securities 104,476 1,072 (361 ) 105,187 1 Redeemable preferred stocks, by sector: Financial 371,691 48,325 (7,011 ) 413,005 3 Utilities 28,588 1,628 (246 ) 29,970 — Total redeemable preferred stocks 400,279 49,953 (7,257 ) 442,975 3 Total fixed maturities $ 14,602,250 $ 1,431,648 $ (159,767 ) $ 15,874,131 100 (1) Amounts reported on the balance sheet. (2) At fair value. A schedule of fixed maturities available for sale by contractual maturity date at March 31, 2017 is shown below on an amortized cost basis and on a fair value basis. Actual maturity dates could differ from contractual maturities due to call or prepayment provisions. March 31, 2017 Amortized Fair Value Fixed maturities available for sale: Due in one year or less $ 88,952 $ 91,746 Due from one to five years 628,487 675,601 Due from five to ten years 1,335,053 1,474,252 Due from ten to twenty years 4,256,853 4,794,890 Due after twenty years 8,127,226 8,663,281 Mortgage-backed and asset-backed securities 165,679 174,361 $ 14,602,250 $ 15,874,131 Selected information about sales of fixed maturities available for sale is as follows. Three Months Ended March 31, 2017 2016 Proceeds from sales $ — $ 14,331 Gross realized gains — 495 Gross realized losses — (214 ) Fair Value Measurements : The following table represents the fair value of fixed maturities available for sale measured on a recurring basis. Fair Value Measurements at March 31, 2017 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 Bonds: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 4 $ 381,157 $ — $ 381,161 States, municipalities, and political subdivisions — 1,303,099 — 1,303,099 Foreign governments — 21,524 — 21,524 Corporates, by sector: Financial — 3,372,832 62,107 3,434,939 Utilities — 2,000,220 154,450 2,154,670 Energy — 1,663,113 40,859 1,703,972 Other corporate sectors — 5,930,189 328,572 6,258,761 Total corporates — 12,966,354 585,988 13,552,342 Collateralized debt obligations — — 67,843 67,843 Other asset-backed securities — 91,187 14,000 105,187 Redeemable preferred stocks, by sector: Financial — 413,005 — 413,005 Utilities — 29,970 — 29,970 Total redeemable preferred stocks — 442,975 — 442,975 Total fixed maturities $ 4 $ 15,206,296 $ 667,831 $ 15,874,131 Percent of total — % 95.8 % 4.2 % 100.0 % The following table represents an analysis of changes in fair value measurements using significant unobservable inputs (Level 3). Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Three Months Ended March 31, 2017 Asset- Collateralized Corporates (1) Total Balance at January 1, 2017 $ — $ 63,503 $ 559,600 $ 623,103 Total gains or losses: Included in realized gains/losses — — — — Included in other comprehensive income — 5,090 6,275 11,365 Acquisitions 14,000 — 21,666 35,666 Sales — — — — Amortization — 1,249 4 1,253 Other (2) — (1,999 ) (1,557 ) (3,556 ) Transfers in and/or out of Level 3 (3) — — — — Balance at March 31, 2017 $ 14,000 $ 67,843 $ 585,988 $ 667,831 Percent of total fixed maturities 0.1 % 0.4 % 3.7 % 4.2 % Three Months Ended March 31, 2016 Asset- Collateralized Corporates (1) Total Balance at January 1, 2016 $ — $ 70,382 $ 530,806 $ 601,188 Total gains or losses: Included in realized gains/losses — — — — Included in other comprehensive income — (3,598 ) 9,568 5,970 Acquisitions — — 15,800 15,800 Sales — — — — Amortization — 1,334 4 1,338 Other (2) — (2,626 ) (1,377 ) (4,003 ) Transfers in and/or out of Level 3 (3) — — — — Balance at March 31, 2016 $ — $ 65,492 $ 554,801 $ 620,293 Percent of total fixed maturities — % 0.5 % 3.8 % 4.3 % (1) Includes redeemable preferred stocks. (2) Includes capitalized interest, foreign exchange adjustments, and principal repayments. (3) Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available. Other-Than-Temporary Impairments: Based on the Company's evaluation of its fixed maturities available for sale in an unrealized loss position in accordance with the other-than-temporary impairment (OTTI) policy, the Company concluded that there were no other-than-temporary impairments during the three month periods ended March 31, 2017 and 2016 . Torchmark is continuously monitoring the market conditions impacting its portfolio. Additionally, Torchmark has the ability and intent to hold these investments to recovery, and does not expect to be required to sell any of its securities. Unrealized Loss Analysis: The following table discloses information about fixed maturities available for sale in an unrealized loss position. Less than Twelve Months Twelve Months or Longer Total Number of issues (CUSIP numbers) held: As of March 31, 2017 346 87 433 As of December 31, 2016 407 94 501 Torchmark’s entire fixed maturity portfolio consisted of 1,535 issues at March 31, 2017 and 1,565 issues at December 31, 2016 . The weighted average quality rating of all unrealized loss positions as of March 31, 2017 was BBB+ . The following table discloses unrealized investment losses by class and major sector of fixed maturities available for sale at March 31, 2017 for the period of time in a loss position. Torchmark considers these investments to be only temporarily impaired. Analysis of Gross Unrealized Investment Losses At March 31, 2017 Less than Twelve Months Twelve Months or Longer Total Description of Securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Investment grade securities: Bonds: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 243,425 $ (5,865 ) $ 1,441 $ (559 ) $ 244,866 $ (6,424 ) States, municipalities and political subdivisions 30,822 (779 ) 668 (32 ) 31,490 (811 ) Foreign governments 2,187 (8 ) — — 2,187 (8 ) Corporates, by sector: Financial 335,653 (7,863 ) 80,362 (3,632 ) 416,015 (11,495 ) Utilities 246,001 (7,937 ) 16,675 (1,905 ) 262,676 (9,842 ) Energy 57,535 (955 ) 141,685 (12,049 ) 199,220 (13,004 ) Other corporate sectors 1,301,093 (46,268 ) 70,324 (5,124 ) 1,371,417 (51,392 ) Total corporates 1,940,282 (63,023 ) 309,046 (22,710 ) 2,249,328 (85,733 ) Other asset-backed securities 24,580 (361 ) — — 24,580 (361 ) Redeemable preferred stocks, by sector: Financial 23,985 (6 ) — — 23,985 (6 ) Utilities 5,842 (246 ) — — 5,842 (246 ) Total redeemable preferred stocks 29,827 (252 ) — — 29,827 (252 ) Total investment grade securities 2,271,123 (70,288 ) 311,155 (23,301 ) 2,582,278 (93,589 ) Below investment grade securities: Bonds: States, municipalities and political subdivisions — — 333 (218 ) 333 (218 ) Corporates, by sector: Financial — — 82,995 (22,765 ) 82,995 (22,765 ) Energy 10,563 (123 ) 88,907 (18,193 ) 99,470 (18,316 ) Other corporate sectors — — 115,418 (8,226 ) 115,418 (8,226 ) Total corporates 10,563 (123 ) 287,320 (49,184 ) 297,883 (49,307 ) Collateralized debt obligations — — 10,351 (9,648 ) 10,351 (9,648 ) Redeemable preferred stocks, by sector: Financial 10,000 — 20,119 (7,005 ) 30,119 (7,005 ) Total redeemable preferred stocks 10,000 — 20,119 (7,005 ) 30,119 (7,005 ) Total below investment grade securities 20,563 (123 ) 318,123 (66,055 ) 338,686 (66,178 ) Total fixed maturities $ 2,291,686 $ (70,411 ) $ 629,278 $ (89,356 ) $ 2,920,964 $ (159,767 ) |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2017 | |
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. The sale resulted in a net gain of $1.8 million ( $1.2 million net of tax) in 2016. The operating results from discontinued operations are reflected in income as of March 31, 2017 . The remaining assets and liabilities reflected on the Torchmark balance sheet related to discontinued operations are receivables and payables associated with the 2016 and prior plan years that are expected to be settled in the ordinary course of business during 2017 and 2018. The net assets related to discontinued operations at March 31, 2017 and December 31, 2016 were as follows: March 31, 2017 December 31, 2016 Assets: Due premiums $ 3,945 $ 8,840 Other receivables (1) 79,400 118,692 Total assets related to discontinued operations 83,345 127,532 Liabilities: Risk sharing payable 8,528 8,374 Current and deferred income taxes payable 3,128 3,820 Other (2) 2,068 15,230 Total liabilities related to discontinued operations 13,724 27,424 Net assets $ 69,621 $ 100,108 (1) At March 31, 2017 , receivables included $65 million from the Centers for Medicare and Medicaid Services (CMS) and $14 million from drug manufacturer rebates. At December 31, 2016 , the comparable amounts were $50 million and $69 million , respectively. (2) Balance at December 31, 2016 includes $3.6 million representing a contingent purchase price reserve. Income from discontinued operations for the three months ended March 31, 2017 and 2016 was as follows: Three Months Ended 2017 2016 Revenue: Health premium $ (224 ) $ 54,699 Benefits and expenses: Health policyholder benefits 4,184 61,481 Amortization of deferred acquisition costs — 1,008 Commissions, premium taxes, and non-deferred acquisition expenses 576 5,109 Other operating expense 611 1,780 Total benefits and expenses 5,371 69,378 Income (loss) before income taxes for discontinued operations (5,595 ) (14,679 ) Income tax benefit (expense) 1,958 5,138 Income (loss) from discontinued operations $ (3,637 ) $ (9,541 ) Operating cash flows of the discontinued operations for the three months ended March 31, 2017 and 2016 were as follows: Three Months Ended 2017 2016 Net cash provided from (used for) discontinued operations $ 26,850 $ 14,061 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Torchmark and its subsidiaries, in common with the insurance industry in general, are subject to litigation, involving various matters where we are either the defendant or the plaintiff. Torchmark subsidiaries are also 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. In each of these matters, based upon information presently available, management does not believe that such litigation or audits will have a material adverse effect on Torchmark’s financial condition, future operating results or liquidity. With respect to 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. |
Liability for Unpaid Claims
Liability for Unpaid Claims | 3 Months Ended |
Mar. 31, 2017 | |
Insurance [Abstract] | |
Liability for Unpaid Claims | Liability for Unpaid Claims Activity in the liability for unpaid health claims is summarized as follows: Three Months Ended March 31, 2017 2016 Balance at beginning of period $ 143,128 $ 137,120 Incurred related to: Current year 135,377 126,897 Prior years (4,024 ) (316 ) Total incurred 131,353 126,581 Paid related to: Current year 54,241 52,621 Prior years 77,555 76,421 Total paid 131,796 129,042 Balance at end of period $ 142,685 $ 134,659 Below is the reconciliation of the liability for "Policy claims and other benefits payable" in the Condensed Consolidated Balance Sheets . March 31, 2017 December 31, 2016 Policy claims and other benefits payable: Short-duration contracts $ 24,341 $ 26,721 Insurance lines other than short duration—health 118,344 116,407 Insurance lines other than short duration—life 159,259 156,437 Total policy claims and other benefits payable $ 301,944 $ 299,565 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 but not reported liabilities plus expected development on reported claims for short-duration products over the last five years. Claim frequency is determined by duration and incurred date. As of March 31, 2017 Accident Year Total of incurred-but-not-reported liabilities plus expected development on reported claims 2013 $ — 2014 7 2015 210 2016 6,174 2017 17,950 Total $ 24,341 |
Postretirement Benefit Plans
Postretirement Benefit Plans | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Postretirement Benefit Plans | Postretirement Benefit Plans The following tables present a summary of post-retirement benefit costs by component. Components of Post-Retirement Benefit Costs Three Months Ended March 31, Pension Benefits Other Benefits 2017 2016 2017 2016 Service cost $ 4,487 $ 3,894 $ — $ — Interest cost 5,550 5,432 250 212 Expected return on assets (5,899 ) (5,782 ) — — Amortization: Prior service cost 119 120 — — Actuarial (gain)/loss 2,951 2,424 39 8 Direct recognition of expense — — 96 34 Net periodic benefit cost $ 7,208 $ 6,088 $ 385 $ 254 The following table presents assets at fair value for the defined-benefit pension plans at March 31, 2017 and the prior-year end. Pension Assets by Component March 31, 2017 December 31, 2016 Amount % Amount % Corporate bonds $ 160,254 48 $ 160,036 49 Exchange traded fund (1) 142,902 42 134,771 41 Other bonds 260 — 258 — Guaranteed annuity contract (2) 19,126 6 18,997 6 Short-term investments 11,336 3 7,391 2 Other 3,075 1 7,418 2 Total $ 336,953 100 $ 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 Liability March 31, 2017 December 31, 2016 Funded defined benefit pension $ 460,475 $ 449,613 SERP (1) (Active) 75,533 74,687 SERP (1) (Closed) 2,864 3,222 Pension Benefit Obligation $ 538,872 $ 527,522 (1) Supplemental executive retirement plan (SERP). As noted in the table above, the liability for the funded defined-benefit pension plans was $460 million at March 31, 2017 and $450 million at December 31, 2016 . During the three months ended March 31, 2017 , the Company made no cash contributions to the qualified pension plans. Torchmark expects to make total cash contributions to these plans during 2017 in an amount not to exceed $20 million . With respect to the Company’s active nonqualified noncontributory SERP, life insurance policies on the lives of plan participants have been established with an unaffiliated carrier to provide for a portion of the Company’s obligations under the plan. These policies along with investments deposited with an unaffiliated trustee were previously placed in a Rabbi Trust to provide for the payment of the plan obligations. At March 31, 2017 , the combined value of the insurance policies and investments in the Rabbi Trust to support plan liabilities were $88 million , compared with $86 million at year end 2016 . Since this plan is nonqualified and therefore is treated as unfunded, the values of the insurance policies and investments are recorded as Other assets in the Condensed Consolidated Balance Sheets and are not included in the chart of plan assets above. The liability for the active non-qualified pension plan was $76 million at March 31, 2017 and $75 million at December 31, 2016 . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share A reconciliation of basic and diluted weighted-average shares outstanding is as follows: Three Months Ended March 31, 2017 2016 Basic weighted average shares outstanding 117,770,474 121,480,805 Weighted average dilutive options outstanding 2,659,242 1,831,938 Diluted weighted average shares outstanding 120,429,716 123,312,743 Antidilutive shares 625,855 1,489,562 |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2017 | |
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. Torchmark's chief operating decision makers evaluate the overall performance of the operations of the Company in accordance with these segments. Annuity revenue is classified as “Other premium.” Management’s measure of profitability for each insurance segment is insurance underwriting margin, which is underwriting income before other income and insurance administrative expenses. It represents the profit margin on insurance products before administrative expenses, and is calculated by deducting net policy obligations (claims incurred and change in reserves), commissions and other acquisition expenses from premium revenue. Torchmark further views the profitability of each insurance product segment by the marketing groups that distribute the products of that segment: direct response, independent agencies, or captive agencies. Torchmark’s management prefers to evaluate the performance of its underwriting and investment activities separately, rather than allocating investment income to the underwriting results. As such, the investment function is presented as a stand-alone segment. The investment segment includes the management of the investment portfolio, debt, and cash flow. Management’s measure of profitability for this segment is excess investment income, which is the income earned on the investment portfolio less the required interest on net policy liabilities and financing costs. Financing costs include the interest on Torchmark’s debt. Other income and insurance administrative expense are classified in a separate Other segment. The majority of the Company’s required interest on net policy liabilities (benefit reserves less the deferred acquisition cost asset) is not credited to policyholder accounts. Instead, it is an actuarial assumption for discounting cash flows in the computation of benefit reserves and the amortization of the deferred acquisition cost asset. Investment income required to fund the required interest on net policy liabilities is removed from the investment segment and applied to the insurance segments to eliminate the effect of the required interest from the insurance segments. As a result, the investment segment measures net investment income against the required interest on net policy liabilities and financing costs, while the insurance segments simply measure premiums against benefits and expenses. Management believes this presentation facilitates a more meaningful analysis of the Company’s underwriting and investment performance as the underwriting results are based on premiums, claims, and expenses and are not affected by unanticipated fluctuations in investment yields. As noted, Torchmark’s “core operations” are insurance and investment management. The insurance segments issue policies for which premiums are collected for the eventual payment of policy benefits. In addition to policy benefits, operating expenses are incurred including acquisition costs, administrative expenses, and taxes. Because life and health contracts can be long term, premium receipts in excess of current expenses are invested. Investment activities, conducted by the investment segment, focus on seeking quality investments with a yield and term appropriate to support the insurance product obligations. These investments generally consist of fixed maturities, and, over the long term, the expected yields are taken into account when setting insurance premium rates and product profitability expectations. As a result, fixed maturities are generally held for long periods to support the liabilities, and Torchmark generally expects to hold investments until maturity. However, dispositions of investments occur from time to time, generally for reasons such as credit concerns, calls by issuers, or other factors. Since Torchmark does not actively trade investments, realized gains and losses from the disposition and write down of investments are generally incidental to operations and are not considered a material factor in insurance pricing or product profitability. While from time to time these realized gains and losses could be significant to net income in the period in which they occur, they generally have a limited effect on the yield of the total investment portfolio. Further, because the proceeds of the disposals are reinvested in the portfolio, the disposals have little effect on the size of the portfolio and the income from the reinvestments is included in net investment income. Therefore, management removes realized investment gains and losses from results of core operations when evaluating the performance of the Company. For this reason, these gains and losses are excluded from Torchmark’s operating segments. Torchmark accounts for its stock options and restricted stock under current accounting guidance requiring stock options and stock grants to be expensed based on fair value at the time of grant. Management considers stock compensation expense to be an expense of the Parent Company. Therefore, stock compensation expense is treated as a corporate expense in Torchmark’s segment analysis. The following tables set forth a reconciliation of Torchmark’s revenues and operations by segment to its pretax income and each significant line item in its Condensed Consolidated Statements of Operations . Reconciliation of Segment Operating Information to the Condensed Consolidated Statement of Operations Three Months Ended March 31, 2017 Life Health Annuity Investment Other & Adjustments Consolidated Revenue: Premium $ 575,837 $ 244,791 $ 3 $ 820,631 Net investment income $ 208,282 208,282 Other income $ 451 $ (35 ) (2) 416 Total revenue 575,837 244,791 3 208,282 451 (35 ) 1,029,329 Expenses: Policy benefits 391,079 157,751 8,946 557,776 Required interest on reserves (148,825 ) (18,975 ) (12,418 ) 180,218 — Required interest on DAC 45,936 5,809 178 (51,923 ) — Amortization of acquisition costs 99,905 25,327 676 125,908 Commissions, premium taxes, and non-deferred acquisition costs 43,638 21,502 11 (35 ) (2) 65,116 Insurance administrative expense (1) 51,913 51,913 Parent expense 2,233 2,233 Stock compensation expense 8,195 8,195 Interest expense 20,699 20,699 Total expenses 431,733 191,414 (2,607 ) 148,994 62,341 (35 ) 831,840 Subtotal 144,104 53,377 2,610 59,288 (61,890 ) — 197,489 Non-operating items — — Measure of segment profitability (pretax) $ 144,104 $ 53,377 $ 2,610 $ 59,288 $ (61,890 ) $ — 197,489 Deduct applicable income taxes (58,818 ) Segment profits after tax 138,671 Add back income taxes applicable to segment profitability 58,818 Add (deduct) realized investment gains (losses) (5,748 ) Pretax income from continuing operations per Condensed Consolidated Statements of Operations $ 191,741 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. Three Months Ended March 31, 2016 Life Health Annuity Investment Other & Adjustments Consolidated Revenue: Premium $ 544,151 $ 235,697 $ 12 $ 779,860 Net investment income $ 197,053 197,053 Other income $ 465 $ (44 ) (2) 421 Total revenue 544,151 235,697 12 197,053 465 (44 ) 977,334 Expenses: Policy benefits 362,860 152,775 9,338 524,973 Required interest on reserves (142,011 ) (18,076 ) (13,092 ) 173,179 — Required interest on DAC 44,202 5,742 224 (50,168 ) — Amortization of acquisition costs 94,539 22,365 1,902 118,806 Commissions, premium taxes, and non-deferred acquisition costs 40,261 21,376 9 (44 ) (2) 61,602 Insurance administrative expense (1) 48,468 48,468 Parent expense 2,026 2,026 Stock compensation expense 6,935 6,935 Interest expense 19,369 19,369 Total expenses 399,851 184,182 (1,619 ) 142,380 57,429 (44 ) 782,179 Subtotal 144,300 51,515 1,631 54,673 (56,964 ) — 195,155 Non-operating items — — Measure of segment profitability (pretax) $ 144,300 $ 51,515 $ 1,631 $ 54,673 $ (56,964 ) $ — 195,155 Deduct applicable income taxes (61,771 ) Segment profits after tax 133,384 Add back income taxes applicable to segment profitability 61,771 Add (deduct) realized investment gains (losses) 293 Pretax income from continuing operations per Condensed Consolidated Statements of Operations $ 195,448 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. The following table summarizes the measures of segment profitability for comparison. It also reconciles segment profits to net income. Analysis of Profitability by Segment Three Months Ended 2017 2016 Life insurance underwriting margin $ 144,104 $ 144,300 Health insurance underwriting margin 53,377 51,515 Annuity underwriting margin 2,610 1,631 Excess investment income 59,288 54,673 Other insurance: Other income 451 465 Administrative expense (51,913 ) (48,468 ) Corporate and adjustments (10,428 ) (8,961 ) Segment profits before tax 197,489 195,155 Applicable taxes (58,818 ) (61,771 ) Segment profits after tax 138,671 133,384 Discontinued operations (after tax) (3,637 ) (9,541 ) Net operating income 135,034 123,843 Reconciling items, net of tax: Realized gains (losses)—investments (after tax) (1,493 ) 190 Net income $ 133,541 $ 124,033 |
Significant Accounting Polici19
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The accompanying condensed consolidated financial statements of Torchmark Corporation (Torchmark or alternatively, the Company) have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the annual disclosures required by accounting principles generally accepted in the United States of America (GAAP). However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial position at March 31, 2017 , and the condensed consolidated results of operations, comprehensive income, and cash flows for the periods ended March 31, 2017 and 2016 . The interim period condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements that are included in the Form 10-K filed with the Securities Exchange Commission (SEC) on February 27, 2017. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted ASU 2016-01: In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instrument—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which revises the classification and measurement of certain equity investments such that they are measured at fair value through net income. The standard will become effective for the Company beginning January 1, 2018 and early adoption is permitted. The Company does not expect the adoption to have a significant impact on the financial statements. ASU 2016-02: 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 the 2016 form 10-K Note 15—Commitments and Contingencies for consideration of the non-cancellable operating lease commitments. ASU 2016-13: 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. ASU 2016-15: In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments to provide uniformity in the classification of cash receipts and payments recorded in the statement of cash flows including debt prepayment or debt extinguishment costs, settlement 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. ASU 2016-16: In October 2016, the FASB issued Accounting Standards Update No. 2016-16, Income Taxes (Topic 740): 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. ASU 2017-04: In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles—Goodwill and Other (Topic 350): 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. ASU 2017-07: In March 2017, the FASB issued Accounting Standards Update No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This guidance was issued to simplify the reporting of pension costs by disaggregating the service-cost component from the other components of net benefit costs and reporting it separately on the income statement. The service-cost component is the only component of net benefit cost that will be eligible for capitalization. The guidance will become effective on January 1, 2018 with a retrospective transition method for separation of net benefit costs and a prospective transition method for the capitalization of service costs. The Company is currently evaluating the standard to determine its impact. ASU 2017-08: In March 2017, the FASB issued Accounting Standards Update No. 2017-08, Receivables —Nonrefundable Fees and Other Costs (Topic 310-20): Premium Amortization on Purchased Callable Debt Securities. This guidance was issued to shorten the amortization period for certain callable debt securities held at a premium. The guidance requires the premium to be amortized to the earliest call date. It will become effective on January 1, 2019 with early adoption permitted, including during interim periods. The adoption is to be applied on a modified retrospective basis through an adjustment to retained earnings. The Company is currently evaluating the standard to determine its impact. |
Supplemental Information abou20
Supplemental Information about Changes to Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Schedule of Analysis of Change in Balance by Component of Accumulated Other Comprehensive Income | An analysis of the change in balance by component of Accumulated Other Comprehensive Income is as follows for the three month periods ended March 31, 2017 and 2016 . Components of Accumulated Other Comprehensive Income Three Months Ended March 31, 2017 Available Deferred Foreign Pension Total Balance at January 1, 2017 $ 692,314 $ (6,682 ) $ 4,967 $ (113,025 ) $ 577,574 Other comprehensive income (loss) before reclassifications, net of tax 140,700 (500 ) 3,786 241 144,227 Reclassifications, net of tax (957 ) — — 2,021 1,064 Other comprehensive income (loss) 139,743 (500 ) 3,786 2,262 145,291 Balance at March 31, 2017 $ 832,057 $ (7,182 ) $ 8,753 $ (110,763 ) $ 722,865 Three Months Ended March 31, 2016 Available Deferred Foreign Pension Total Balance at January 1, 2016 $ 332,333 $ (5,115 ) $ 3,627 $ (98,898 ) $ 231,947 Other comprehensive income (loss) before reclassifications, net of tax 303,094 (1,800 ) 1,220 445 302,959 Reclassifications, net of tax (1,090 ) — — 1,659 569 Other comprehensive income (loss) 302,004 (1,800 ) 1,220 2,104 303,528 Balance at March 31, 2016 $ 634,337 $ (6,915 ) $ 4,847 $ (96,794 ) $ 535,475 |
Summary of Reclassifications Out of Accumulated Other Comprehensive Income | Reclassifications out of Accumulated Other Comprehensive Income are presented below for the three month periods ended March 31, 2017 and 2016 . Reclassification Adjustments Three Months Ended Affected line items in the Statement of Operations 2017 2016 Unrealized investment gains (losses) on available for sale assets: Realized (gains) losses $ (1,035 ) $ (313 ) Realized gains (losses) Amortization of (discount) premium (437 ) (1,364 ) Net investment income Total before tax (1,472 ) (1,677 ) Tax 515 587 Income taxes Total after tax (957 ) (1,090 ) Pension adjustments: Amortization of prior service cost 119 120 Other operating expenses Amortization of actuarial gain (loss) 2,990 2,432 Other operating expenses Total before tax 3,109 2,552 Tax (1,088 ) (893 ) Income taxes Total after tax 2,021 1,659 Total reclassifications (after tax) $ 1,064 $ 569 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Fixed Maturities and Equity Securities Available for Sale by Cost or Amortized Cost and Estimated Fair Value | A summary of fixed maturities available for sale by cost or amortized cost and estimated fair value at March 31, 2017 is as follows: Portfolio Composition as of March 31, 2017 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (1) % of Total Fixed Maturities (2) Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 385,755 $ 1,830 $ (6,424 ) $ 381,161 3 States, municipalities, and political subdivisions 1,184,062 120,066 (1,029 ) 1,303,099 8 Foreign governments 20,066 1,466 (8 ) 21,524 — Corporates, by sector: Financial 3,137,495 331,704 (34,260 ) 3,434,939 21 Utilities 1,896,115 268,397 (9,842 ) 2,154,670 14 Energy 1,589,982 145,310 (31,320 ) 1,703,972 11 Other corporate sectors 5,824,044 494,335 (59,618 ) 6,258,761 39 Total corporates 12,447,636 1,239,746 (135,040 ) 13,552,342 85 Collateralized debt obligations 59,976 17,515 (9,648 ) 67,843 — Other asset-backed securities 104,476 1,072 (361 ) 105,187 1 Redeemable preferred stocks, by sector: Financial 371,691 48,325 (7,011 ) 413,005 3 Utilities 28,588 1,628 (246 ) 29,970 — Total redeemable preferred stocks 400,279 49,953 (7,257 ) 442,975 3 Total fixed maturities $ 14,602,250 $ 1,431,648 $ (159,767 ) $ 15,874,131 100 (1) Amounts reported on the balance sheet. (2) At fair value. |
Schedule of Fixed Maturities by Contractual Maturity Date | A schedule of fixed maturities available for sale by contractual maturity date at March 31, 2017 is shown below on an amortized cost basis and on a fair value basis. Actual maturity dates could differ from contractual maturities due to call or prepayment provisions. March 31, 2017 Amortized Fair Value Fixed maturities available for sale: Due in one year or less $ 88,952 $ 91,746 Due from one to five years 628,487 675,601 Due from five to ten years 1,335,053 1,474,252 Due from ten to twenty years 4,256,853 4,794,890 Due after twenty years 8,127,226 8,663,281 Mortgage-backed and asset-backed securities 165,679 174,361 $ 14,602,250 $ 15,874,131 |
Schedule of Selected Information about Sales of Fixed Maturities | Selected information about sales of fixed maturities available for sale is as follows. Three Months Ended March 31, 2017 2016 Proceeds from sales $ — $ 14,331 Gross realized gains — 495 Gross realized losses — (214 ) |
Schedule of Assets Measured at Fair Value on Recurring Basis | The following table represents the fair value of fixed maturities available for sale measured on a recurring basis. Fair Value Measurements at March 31, 2017 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 Bonds: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 4 $ 381,157 $ — $ 381,161 States, municipalities, and political subdivisions — 1,303,099 — 1,303,099 Foreign governments — 21,524 — 21,524 Corporates, by sector: Financial — 3,372,832 62,107 3,434,939 Utilities — 2,000,220 154,450 2,154,670 Energy — 1,663,113 40,859 1,703,972 Other corporate sectors — 5,930,189 328,572 6,258,761 Total corporates — 12,966,354 585,988 13,552,342 Collateralized debt obligations — — 67,843 67,843 Other asset-backed securities — 91,187 14,000 105,187 Redeemable preferred stocks, by sector: Financial — 413,005 — 413,005 Utilities — 29,970 — 29,970 Total redeemable preferred stocks — 442,975 — 442,975 Total fixed maturities $ 4 $ 15,206,296 $ 667,831 $ 15,874,131 Percent of total — % 95.8 % 4.2 % 100.0 % |
Schedule of Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs | The following table represents an analysis of changes in fair value measurements using significant unobservable inputs (Level 3). Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Three Months Ended March 31, 2017 Asset- Collateralized Corporates (1) Total Balance at January 1, 2017 $ — $ 63,503 $ 559,600 $ 623,103 Total gains or losses: Included in realized gains/losses — — — — Included in other comprehensive income — 5,090 6,275 11,365 Acquisitions 14,000 — 21,666 35,666 Sales — — — — Amortization — 1,249 4 1,253 Other (2) — (1,999 ) (1,557 ) (3,556 ) Transfers in and/or out of Level 3 (3) — — — — Balance at March 31, 2017 $ 14,000 $ 67,843 $ 585,988 $ 667,831 Percent of total fixed maturities 0.1 % 0.4 % 3.7 % 4.2 % Three Months Ended March 31, 2016 Asset- Collateralized Corporates (1) Total Balance at January 1, 2016 $ — $ 70,382 $ 530,806 $ 601,188 Total gains or losses: Included in realized gains/losses — — — — Included in other comprehensive income — (3,598 ) 9,568 5,970 Acquisitions — — 15,800 15,800 Sales — — — — Amortization — 1,334 4 1,338 Other (2) — (2,626 ) (1,377 ) (4,003 ) Transfers in and/or out of Level 3 (3) — — — — Balance at March 31, 2016 $ — $ 65,492 $ 554,801 $ 620,293 Percent of total fixed maturities — % 0.5 % 3.8 % 4.3 % (1) Includes redeemable preferred stocks. (2) Includes capitalized interest, foreign exchange adjustments, and principal repayments. (3) Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available. |
Schedule of Information About Investments in Unrealized Loss Position | The following table discloses information about fixed maturities available for sale in an unrealized loss position. Less than Twelve Months Twelve Months or Longer Total Number of issues (CUSIP numbers) held: As of March 31, 2017 346 87 433 As of December 31, 2016 407 94 501 |
Schedule of Unrealized Investment Losses by Class of Investment | The following table discloses unrealized investment losses by class and major sector of fixed maturities available for sale at March 31, 2017 for the period of time in a loss position. Torchmark considers these investments to be only temporarily impaired. Analysis of Gross Unrealized Investment Losses At March 31, 2017 Less than Twelve Months Twelve Months or Longer Total Description of Securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Investment grade securities: Bonds: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 243,425 $ (5,865 ) $ 1,441 $ (559 ) $ 244,866 $ (6,424 ) States, municipalities and political subdivisions 30,822 (779 ) 668 (32 ) 31,490 (811 ) Foreign governments 2,187 (8 ) — — 2,187 (8 ) Corporates, by sector: Financial 335,653 (7,863 ) 80,362 (3,632 ) 416,015 (11,495 ) Utilities 246,001 (7,937 ) 16,675 (1,905 ) 262,676 (9,842 ) Energy 57,535 (955 ) 141,685 (12,049 ) 199,220 (13,004 ) Other corporate sectors 1,301,093 (46,268 ) 70,324 (5,124 ) 1,371,417 (51,392 ) Total corporates 1,940,282 (63,023 ) 309,046 (22,710 ) 2,249,328 (85,733 ) Other asset-backed securities 24,580 (361 ) — — 24,580 (361 ) Redeemable preferred stocks, by sector: Financial 23,985 (6 ) — — 23,985 (6 ) Utilities 5,842 (246 ) — — 5,842 (246 ) Total redeemable preferred stocks 29,827 (252 ) — — 29,827 (252 ) Total investment grade securities 2,271,123 (70,288 ) 311,155 (23,301 ) 2,582,278 (93,589 ) Below investment grade securities: Bonds: States, municipalities and political subdivisions — — 333 (218 ) 333 (218 ) Corporates, by sector: Financial — — 82,995 (22,765 ) 82,995 (22,765 ) Energy 10,563 (123 ) 88,907 (18,193 ) 99,470 (18,316 ) Other corporate sectors — — 115,418 (8,226 ) 115,418 (8,226 ) Total corporates 10,563 (123 ) 287,320 (49,184 ) 297,883 (49,307 ) Collateralized debt obligations — — 10,351 (9,648 ) 10,351 (9,648 ) Redeemable preferred stocks, by sector: Financial 10,000 — 20,119 (7,005 ) 30,119 (7,005 ) Total redeemable preferred stocks 10,000 — 20,119 (7,005 ) 30,119 (7,005 ) Total below investment grade securities 20,563 (123 ) 318,123 (66,055 ) 338,686 (66,178 ) Total fixed maturities $ 2,291,686 $ (70,411 ) $ 629,278 $ (89,356 ) $ 2,920,964 $ (159,767 ) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Net Assets, Income and Operating Cash Flows of Discontinued Operations | The net assets related to discontinued operations at March 31, 2017 and December 31, 2016 were as follows: March 31, 2017 December 31, 2016 Assets: Due premiums $ 3,945 $ 8,840 Other receivables (1) 79,400 118,692 Total assets related to discontinued operations 83,345 127,532 Liabilities: Risk sharing payable 8,528 8,374 Current and deferred income taxes payable 3,128 3,820 Other (2) 2,068 15,230 Total liabilities related to discontinued operations 13,724 27,424 Net assets $ 69,621 $ 100,108 (1) At March 31, 2017 , receivables included $65 million from the Centers for Medicare and Medicaid Services (CMS) and $14 million from drug manufacturer rebates. At December 31, 2016 , the comparable amounts were $50 million and $69 million , respectively. (2) Balance at December 31, 2016 includes $3.6 million representing a contingent purchase price reserve. Income from discontinued operations for the three months ended March 31, 2017 and 2016 was as follows: Three Months Ended 2017 2016 Revenue: Health premium $ (224 ) $ 54,699 Benefits and expenses: Health policyholder benefits 4,184 61,481 Amortization of deferred acquisition costs — 1,008 Commissions, premium taxes, and non-deferred acquisition expenses 576 5,109 Other operating expense 611 1,780 Total benefits and expenses 5,371 69,378 Income (loss) before income taxes for discontinued operations (5,595 ) (14,679 ) Income tax benefit (expense) 1,958 5,138 Income (loss) from discontinued operations $ (3,637 ) $ (9,541 ) Operating cash flows of the discontinued operations for the three months ended March 31, 2017 and 2016 were as follows: Three Months Ended 2017 2016 Net cash provided from (used for) discontinued operations $ 26,850 $ 14,061 |
Liability for Unpaid Claims (Ta
Liability for Unpaid Claims (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Insurance [Abstract] | |
Activity in the Liability for Unpaid Health Claims | Activity in the liability for unpaid health claims is summarized as follows: Three Months Ended March 31, 2017 2016 Balance at beginning of period $ 143,128 $ 137,120 Incurred related to: Current year 135,377 126,897 Prior years (4,024 ) (316 ) Total incurred 131,353 126,581 Paid related to: Current year 54,241 52,621 Prior years 77,555 76,421 Total paid 131,796 129,042 Balance at end of period $ 142,685 $ 134,659 |
Reconciliation of the Liability for Policy Claims and Other Benefits Payable | Below is the reconciliation of the liability for "Policy claims and other benefits payable" in the Condensed Consolidated Balance Sheets . March 31, 2017 December 31, 2016 Policy claims and other benefits payable: Short-duration contracts $ 24,341 $ 26,721 Insurance lines other than short duration—health 118,344 116,407 Insurance lines other than short duration—life 159,259 156,437 Total policy claims and other benefits payable $ 301,944 $ 299,565 |
Total Incurred of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims for Short-Duration Products | The below table illustrates the total incurred but not reported liabilities plus expected development on reported claims for short-duration products over the last five years. Claim frequency is determined by duration and incurred date. As of March 31, 2017 Accident Year Total of incurred-but-not-reported liabilities plus expected development on reported claims 2013 $ — 2014 7 2015 210 2016 6,174 2017 17,950 Total $ 24,341 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Post-Retirement Benefit Costs by Component | The following tables present a summary of post-retirement benefit costs by component. Components of Post-Retirement Benefit Costs Three Months Ended March 31, Pension Benefits Other Benefits 2017 2016 2017 2016 Service cost $ 4,487 $ 3,894 $ — $ — Interest cost 5,550 5,432 250 212 Expected return on assets (5,899 ) (5,782 ) — — Amortization: Prior service cost 119 120 — — Actuarial (gain)/loss 2,951 2,424 39 8 Direct recognition of expense — — 96 34 Net periodic benefit cost $ 7,208 $ 6,088 $ 385 $ 254 |
Schedule of Assets at Fair Value for Defined-Benefit Pension Plans | The following table presents assets at fair value for the defined-benefit pension plans at March 31, 2017 and the prior-year end. Pension Assets by Component March 31, 2017 December 31, 2016 Amount % Amount % Corporate bonds $ 160,254 48 $ 160,036 49 Exchange traded fund (1) 142,902 42 134,771 41 Other bonds 260 — 258 — Guaranteed annuity contract (2) 19,126 6 18,997 6 Short-term investments 11,336 3 7,391 2 Other 3,075 1 7,418 2 Total $ 336,953 100 $ 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 Liability | Pension Liability March 31, 2017 December 31, 2016 Funded defined benefit pension $ 460,475 $ 449,613 SERP (1) (Active) 75,533 74,687 SERP (1) (Closed) 2,864 3,222 Pension Benefit Obligation $ 538,872 $ 527,522 (1) Supplemental executive retirement plan (SERP). |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Weighted-Average Shares Outstanding | A reconciliation of basic and diluted weighted-average shares outstanding is as follows: Three Months Ended March 31, 2017 2016 Basic weighted average shares outstanding 117,770,474 121,480,805 Weighted average dilutive options outstanding 2,659,242 1,831,938 Diluted weighted average shares outstanding 120,429,716 123,312,743 Antidilutive shares 625,855 1,489,562 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Segment Operating Information to Consolidated Statement of Operations | The following tables set forth a reconciliation of Torchmark’s revenues and operations by segment to its pretax income and each significant line item in its Condensed Consolidated Statements of Operations . Reconciliation of Segment Operating Information to the Condensed Consolidated Statement of Operations Three Months Ended March 31, 2017 Life Health Annuity Investment Other & Adjustments Consolidated Revenue: Premium $ 575,837 $ 244,791 $ 3 $ 820,631 Net investment income $ 208,282 208,282 Other income $ 451 $ (35 ) (2) 416 Total revenue 575,837 244,791 3 208,282 451 (35 ) 1,029,329 Expenses: Policy benefits 391,079 157,751 8,946 557,776 Required interest on reserves (148,825 ) (18,975 ) (12,418 ) 180,218 — Required interest on DAC 45,936 5,809 178 (51,923 ) — Amortization of acquisition costs 99,905 25,327 676 125,908 Commissions, premium taxes, and non-deferred acquisition costs 43,638 21,502 11 (35 ) (2) 65,116 Insurance administrative expense (1) 51,913 51,913 Parent expense 2,233 2,233 Stock compensation expense 8,195 8,195 Interest expense 20,699 20,699 Total expenses 431,733 191,414 (2,607 ) 148,994 62,341 (35 ) 831,840 Subtotal 144,104 53,377 2,610 59,288 (61,890 ) — 197,489 Non-operating items — — Measure of segment profitability (pretax) $ 144,104 $ 53,377 $ 2,610 $ 59,288 $ (61,890 ) $ — 197,489 Deduct applicable income taxes (58,818 ) Segment profits after tax 138,671 Add back income taxes applicable to segment profitability 58,818 Add (deduct) realized investment gains (losses) (5,748 ) Pretax income from continuing operations per Condensed Consolidated Statements of Operations $ 191,741 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. Three Months Ended March 31, 2016 Life Health Annuity Investment Other & Adjustments Consolidated Revenue: Premium $ 544,151 $ 235,697 $ 12 $ 779,860 Net investment income $ 197,053 197,053 Other income $ 465 $ (44 ) (2) 421 Total revenue 544,151 235,697 12 197,053 465 (44 ) 977,334 Expenses: Policy benefits 362,860 152,775 9,338 524,973 Required interest on reserves (142,011 ) (18,076 ) (13,092 ) 173,179 — Required interest on DAC 44,202 5,742 224 (50,168 ) — Amortization of acquisition costs 94,539 22,365 1,902 118,806 Commissions, premium taxes, and non-deferred acquisition costs 40,261 21,376 9 (44 ) (2) 61,602 Insurance administrative expense (1) 48,468 48,468 Parent expense 2,026 2,026 Stock compensation expense 6,935 6,935 Interest expense 19,369 19,369 Total expenses 399,851 184,182 (1,619 ) 142,380 57,429 (44 ) 782,179 Subtotal 144,300 51,515 1,631 54,673 (56,964 ) — 195,155 Non-operating items — — Measure of segment profitability (pretax) $ 144,300 $ 51,515 $ 1,631 $ 54,673 $ (56,964 ) $ — 195,155 Deduct applicable income taxes (61,771 ) Segment profits after tax 133,384 Add back income taxes applicable to segment profitability 61,771 Add (deduct) realized investment gains (losses) 293 Pretax income from continuing operations per Condensed Consolidated Statements of Operations $ 195,448 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. |
Analysis of Profitability By Segment | The following table summarizes the measures of segment profitability for comparison. It also reconciles segment profits to net income. Analysis of Profitability by Segment Three Months Ended 2017 2016 Life insurance underwriting margin $ 144,104 $ 144,300 Health insurance underwriting margin 53,377 51,515 Annuity underwriting margin 2,610 1,631 Excess investment income 59,288 54,673 Other insurance: Other income 451 465 Administrative expense (51,913 ) (48,468 ) Corporate and adjustments (10,428 ) (8,961 ) Segment profits before tax 197,489 195,155 Applicable taxes (58,818 ) (61,771 ) Segment profits after tax 138,671 133,384 Discontinued operations (after tax) (3,637 ) (9,541 ) Net operating income 135,034 123,843 Reconciling items, net of tax: Realized gains (losses)—investments (after tax) (1,493 ) 190 Net income $ 133,541 $ 124,033 |
Supplemental Information abou27
Supplemental Information about Changes to Accumulated Other Comprehensive Income - Schedule of Analysis of Change in Balance by Component of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | $ 4,566,861 | $ 4,055,552 |
Other comprehensive income (loss) before reclassifications, net of tax | 144,227 | 302,959 |
Reclassifications, net of tax | 1,064 | 569 |
Other comprehensive income (loss) | 145,291 | 303,528 |
Stockholders' equity, ending balance | 4,744,827 | 4,391,743 |
Available for Sale Assets [Member] | ||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | 692,314 | 332,333 |
Other comprehensive income (loss) before reclassifications, net of tax | 140,700 | 303,094 |
Reclassifications, net of tax | (957) | (1,090) |
Other comprehensive income (loss) | 139,743 | 302,004 |
Stockholders' equity, ending balance | 832,057 | 634,337 |
Deferred Acquisition Costs [Member] | ||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | (6,682) | (5,115) |
Other comprehensive income (loss) before reclassifications, net of tax | (500) | (1,800) |
Reclassifications, net of tax | 0 | 0 |
Other comprehensive income (loss) | (500) | (1,800) |
Stockholders' equity, ending balance | (7,182) | (6,915) |
Foreign Exchange [Member] | ||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | 4,967 | 3,627 |
Other comprehensive income (loss) before reclassifications, net of tax | 3,786 | 1,220 |
Reclassifications, net of tax | 0 | 0 |
Other comprehensive income (loss) | 3,786 | 1,220 |
Stockholders' equity, ending balance | 8,753 | 4,847 |
Pension Adjustments [Member] | ||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | (113,025) | (98,898) |
Other comprehensive income (loss) before reclassifications, net of tax | 241 | 445 |
Reclassifications, net of tax | 2,021 | 1,659 |
Other comprehensive income (loss) | 2,262 | 2,104 |
Stockholders' equity, ending balance | (110,763) | (96,794) |
Total [Member] | ||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | 577,574 | 231,947 |
Stockholders' equity, ending balance | $ 722,865 | $ 535,475 |
Supplemental Information abou28
Supplemental Information about Changes to Accumulated Other Comprehensive Income - Summary of Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Unrealized investment gains (losses) on available for sale assets: | ||
Realized (gains) losses | $ 5,748 | $ (293) |
Amortization of (discount) premium | (208,282) | (197,053) |
Total before tax | (191,741) | (195,448) |
Tax | 54,563 | 61,874 |
Net income | (133,541) | (124,033) |
Pension adjustments: | ||
Total reclassifications (after tax) | 1,064 | 569 |
Unrealized Investment Gains (Losses) on Available for Sale Assets [Member] | ||
Pension adjustments: | ||
Total reclassifications (after tax) | (957) | (1,090) |
Amortization of Prior Service Cost [Member] | ||
Pension adjustments: | ||
Pension adjustments reclassified out of accumulated other comprehensive income | 119 | 120 |
Amortization of Actuarial Gain (Loss) [Member] | ||
Pension adjustments: | ||
Pension adjustments reclassified out of accumulated other comprehensive income | 2,990 | 2,432 |
Pension Adjustments [Member] | ||
Pension adjustments: | ||
Pension adjustments reclassified out of accumulated other comprehensive income | 3,109 | 2,552 |
Tax | (1,088) | (893) |
Total reclassifications (after tax) | 2,021 | 1,659 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Investment Gains (Losses) on Available for Sale Assets [Member] | ||
Unrealized investment gains (losses) on available for sale assets: | ||
Realized (gains) losses | (1,035) | (313) |
Amortization of (discount) premium | (437) | (1,364) |
Total before tax | (1,472) | (1,677) |
Tax | 515 | 587 |
Net income | $ (957) | $ (1,090) |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturities Available for Sale by Component (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 14,602,250 | $ 14,188,050 |
Fair Value | 15,874,131 | $ 15,245,861 |
Fixed maturities available for sale [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 14,602,250 | |
Gross Unrealized Gains | 1,431,648 | |
Gross Unrealized Losses | (159,767) | |
Fair Value | $ 15,874,131 | |
Percentage of Total Fixed Maturities At Fair Value | 100.00% | |
Fixed maturities available for sale [Member] | U.S. Government direct, guaranteed, and government-sponsored enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 385,755 | |
Gross Unrealized Gains | 1,830 | |
Gross Unrealized Losses | (6,424) | |
Fair Value | $ 381,161 | |
Percentage of Total Fixed Maturities At Fair Value | 3.00% | |
Fixed maturities available for sale [Member] | States, municipalities, and political subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 1,184,062 | |
Gross Unrealized Gains | 120,066 | |
Gross Unrealized Losses | (1,029) | |
Fair Value | $ 1,303,099 | |
Percentage of Total Fixed Maturities At Fair Value | 8.00% | |
Fixed maturities available for sale [Member] | Foreign governments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 20,066 | |
Gross Unrealized Gains | 1,466 | |
Gross Unrealized Losses | (8) | |
Fair Value | $ 21,524 | |
Percentage of Total Fixed Maturities At Fair Value | 0.00% | |
Fixed maturities available for sale [Member] | Corporates [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 12,447,636 | |
Gross Unrealized Gains | 1,239,746 | |
Gross Unrealized Losses | (135,040) | |
Fair Value | $ 13,552,342 | |
Percentage of Total Fixed Maturities At Fair Value | 85.00% | |
Fixed maturities available for sale [Member] | Corporates [Member] | Financial [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 3,137,495 | |
Gross Unrealized Gains | 331,704 | |
Gross Unrealized Losses | (34,260) | |
Fair Value | $ 3,434,939 | |
Percentage of Total Fixed Maturities At Fair Value | 21.00% | |
Fixed maturities available for sale [Member] | Corporates [Member] | Utilities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 1,896,115 | |
Gross Unrealized Gains | 268,397 | |
Gross Unrealized Losses | (9,842) | |
Fair Value | $ 2,154,670 | |
Percentage of Total Fixed Maturities At Fair Value | 14.00% | |
Fixed maturities available for sale [Member] | Corporates [Member] | Energy [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 1,589,982 | |
Gross Unrealized Gains | 145,310 | |
Gross Unrealized Losses | (31,320) | |
Fair Value | $ 1,703,972 | |
Percentage of Total Fixed Maturities At Fair Value | 11.00% | |
Fixed maturities available for sale [Member] | Corporates [Member] | Other corporate sectors [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 5,824,044 | |
Gross Unrealized Gains | 494,335 | |
Gross Unrealized Losses | (59,618) | |
Fair Value | $ 6,258,761 | |
Percentage of Total Fixed Maturities At Fair Value | 39.00% | |
Fixed maturities available for sale [Member] | Collateralized debt obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 59,976 | |
Gross Unrealized Gains | 17,515 | |
Gross Unrealized Losses | (9,648) | |
Fair Value | $ 67,843 | |
Percentage of Total Fixed Maturities At Fair Value | 0.00% | |
Fixed maturities available for sale [Member] | Other asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 104,476 | |
Gross Unrealized Gains | 1,072 | |
Gross Unrealized Losses | (361) | |
Fair Value | $ 105,187 | |
Percentage of Total Fixed Maturities At Fair Value | 1.00% | |
Fixed maturities available for sale [Member] | Redeemable preferred stocks [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 400,279 | |
Gross Unrealized Gains | 49,953 | |
Gross Unrealized Losses | (7,257) | |
Fair Value | $ 442,975 | |
Percentage of Total Fixed Maturities At Fair Value | 3.00% | |
Fixed maturities available for sale [Member] | Redeemable preferred stocks [Member] | Financial [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 371,691 | |
Gross Unrealized Gains | 48,325 | |
Gross Unrealized Losses | (7,011) | |
Fair Value | $ 413,005 | |
Percentage of Total Fixed Maturities At Fair Value | 3.00% | |
Fixed maturities available for sale [Member] | Redeemable preferred stocks [Member] | Utilities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 28,588 | |
Gross Unrealized Gains | 1,628 | |
Gross Unrealized Losses | (246) | |
Fair Value | $ 29,970 | |
Percentage of Total Fixed Maturities At Fair Value | 0.00% |
Investments - Schedule of Fixed
Investments - Schedule of Fixed Maturities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Due in one year or less | $ 88,952 | |
Due from one to five years | 628,487 | |
Due from five to ten years | 1,335,053 | |
Due from ten to twenty years | 4,256,853 | |
Due after twenty years | 8,127,226 | |
Mortgage-backed and asset-backed securities | 165,679 | |
Cost or Amortized Cost | 14,602,250 | $ 14,188,050 |
Fair Value | ||
Due in one year or less | 91,746 | |
Due from one to five years | 675,601 | |
Due from five to ten years | 1,474,252 | |
Due from ten to twenty years | 4,794,890 | |
Due after twenty years | 8,663,281 | |
Mortgage-backed and asset-backed securities | 174,361 | |
Fixed Maturities, Available for Sale, Fair Value | $ 15,874,131 | $ 15,245,861 |
Investments - Schedule of Selec
Investments - Schedule of Selected Information about Sales of Fixed Maturities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Proceeds from sales | $ 0 | $ 14,331 |
Fixed Maturities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Proceeds from sales | 0 | 14,331 |
Gross realized gains | 0 | 495 |
Gross realized losses | $ 0 | $ (214) |
Investments - Assets Measured a
Investments - Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | $ 15,874,131 | $ 15,245,861 |
Percent of total | 100.00% | |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percent of total | 0.00% | |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percent of total | 95.80% | |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percent of total | 4.20% | |
Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | $ 15,874,131 | |
Fixed maturities available for sale [Member] | U.S. Government direct, guaranteed, and government-sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 381,161 | |
Fixed maturities available for sale [Member] | States, municipalities, and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 1,303,099 | |
Fixed maturities available for sale [Member] | Foreign governments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 21,524 | |
Fixed maturities available for sale [Member] | Corporates [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 13,552,342 | |
Fixed maturities available for sale [Member] | Corporates [Member] | Financial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 3,434,939 | |
Fixed maturities available for sale [Member] | Corporates [Member] | Utilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 2,154,670 | |
Fixed maturities available for sale [Member] | Corporates [Member] | Energy [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 1,703,972 | |
Fixed maturities available for sale [Member] | Corporates [Member] | Other corporate sectors [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 6,258,761 | |
Fixed maturities available for sale [Member] | Collateralized debt obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 67,843 | |
Fixed maturities available for sale [Member] | Other asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 105,187 | |
Fixed maturities available for sale [Member] | Redeemable preferred stocks [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 442,975 | |
Fixed maturities available for sale [Member] | Redeemable preferred stocks [Member] | Financial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 413,005 | |
Fixed maturities available for sale [Member] | Redeemable preferred stocks [Member] | Utilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 29,970 | |
Fixed maturities available for sale [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 4 | |
Fixed maturities available for sale [Member] | Level 1 [Member] | U.S. Government direct, guaranteed, and government-sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 4 | |
Fixed maturities available for sale [Member] | Level 1 [Member] | States, municipalities, and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 0 | |
Fixed maturities available for sale [Member] | Level 1 [Member] | Foreign governments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 0 | |
Fixed maturities available for sale [Member] | Level 1 [Member] | Corporates [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 0 | |
Fixed maturities available for sale [Member] | Level 1 [Member] | Corporates [Member] | Financial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 0 | |
Fixed maturities available for sale [Member] | Level 1 [Member] | Corporates [Member] | Utilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 0 | |
Fixed maturities available for sale [Member] | Level 1 [Member] | Corporates [Member] | Energy [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 0 | |
Fixed maturities available for sale [Member] | Level 1 [Member] | Corporates [Member] | Other corporate sectors [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 0 | |
Fixed maturities available for sale [Member] | Level 1 [Member] | Collateralized debt obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 0 | |
Fixed maturities available for sale [Member] | Level 1 [Member] | Other asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 0 | |
Fixed maturities available for sale [Member] | Level 1 [Member] | Redeemable preferred stocks [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 0 | |
Fixed maturities available for sale [Member] | Level 1 [Member] | Redeemable preferred stocks [Member] | Financial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 0 | |
Fixed maturities available for sale [Member] | Level 1 [Member] | Redeemable preferred stocks [Member] | Utilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 0 | |
Fixed maturities available for sale [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 15,206,296 | |
Fixed maturities available for sale [Member] | Level 2 [Member] | U.S. Government direct, guaranteed, and government-sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 381,157 | |
Fixed maturities available for sale [Member] | Level 2 [Member] | States, municipalities, and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 1,303,099 | |
Fixed maturities available for sale [Member] | Level 2 [Member] | Foreign governments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 21,524 | |
Fixed maturities available for sale [Member] | Level 2 [Member] | Corporates [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 12,966,354 | |
Fixed maturities available for sale [Member] | Level 2 [Member] | Corporates [Member] | Financial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 3,372,832 | |
Fixed maturities available for sale [Member] | Level 2 [Member] | Corporates [Member] | Utilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 2,000,220 | |
Fixed maturities available for sale [Member] | Level 2 [Member] | Corporates [Member] | Energy [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 1,663,113 | |
Fixed maturities available for sale [Member] | Level 2 [Member] | Corporates [Member] | Other corporate sectors [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 5,930,189 | |
Fixed maturities available for sale [Member] | Level 2 [Member] | Collateralized debt obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 0 | |
Fixed maturities available for sale [Member] | Level 2 [Member] | Other asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 91,187 | |
Fixed maturities available for sale [Member] | Level 2 [Member] | Redeemable preferred stocks [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 442,975 | |
Fixed maturities available for sale [Member] | Level 2 [Member] | Redeemable preferred stocks [Member] | Financial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 413,005 | |
Fixed maturities available for sale [Member] | Level 2 [Member] | Redeemable preferred stocks [Member] | Utilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 29,970 | |
Fixed maturities available for sale [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 667,831 | |
Fixed maturities available for sale [Member] | Level 3 [Member] | U.S. Government direct, guaranteed, and government-sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 0 | |
Fixed maturities available for sale [Member] | Level 3 [Member] | States, municipalities, and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 0 | |
Fixed maturities available for sale [Member] | Level 3 [Member] | Foreign governments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 0 | |
Fixed maturities available for sale [Member] | Level 3 [Member] | Corporates [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 585,988 | |
Fixed maturities available for sale [Member] | Level 3 [Member] | Corporates [Member] | Financial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 62,107 | |
Fixed maturities available for sale [Member] | Level 3 [Member] | Corporates [Member] | Utilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 154,450 | |
Fixed maturities available for sale [Member] | Level 3 [Member] | Corporates [Member] | Energy [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 40,859 | |
Fixed maturities available for sale [Member] | Level 3 [Member] | Corporates [Member] | Other corporate sectors [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 328,572 | |
Fixed maturities available for sale [Member] | Level 3 [Member] | Collateralized debt obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 67,843 | |
Fixed maturities available for sale [Member] | Level 3 [Member] | Other asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 14,000 | |
Fixed maturities available for sale [Member] | Level 3 [Member] | Redeemable preferred stocks [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 0 | |
Fixed maturities available for sale [Member] | Level 3 [Member] | Redeemable preferred stocks [Member] | Financial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | 0 | |
Fixed maturities available for sale [Member] | Level 3 [Member] | Redeemable preferred stocks [Member] | Utilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,602,250; 2016—$14,188,050) | $ 0 |
Investments - Schedule of Chang
Investments - Schedule of Changes in Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 623,103 | $ 601,188 |
Total gains or losses: | ||
Included in realized gains/losses | 0 | 0 |
Included in other comprehensive income | 11,365 | 5,970 |
Acquisitions | 35,666 | 15,800 |
Sales | 0 | 0 |
Amortization | 1,253 | 1,338 |
Other | (3,556) | (4,003) |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | $ 667,831 | $ 620,293 |
Percent of total fixed maturities | 4.20% | 4.30% |
Asset-backed Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 0 | $ 0 |
Total gains or losses: | ||
Included in realized gains/losses | 0 | 0 |
Included in other comprehensive income | 0 | 0 |
Acquisitions | 14,000 | 0 |
Sales | 0 | 0 |
Amortization | 0 | 0 |
Other | 0 | 0 |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | $ 14,000 | $ 0 |
Percent of total fixed maturities | 0.10% | 0.00% |
Collateralized debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 63,503 | $ 70,382 |
Total gains or losses: | ||
Included in realized gains/losses | 0 | 0 |
Included in other comprehensive income | 5,090 | (3,598) |
Acquisitions | 0 | 0 |
Sales | 0 | 0 |
Amortization | 1,249 | 1,334 |
Other | (1,999) | (2,626) |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | $ 67,843 | $ 65,492 |
Percent of total fixed maturities | 0.40% | 0.50% |
Corporates [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 559,600 | $ 530,806 |
Total gains or losses: | ||
Included in realized gains/losses | 0 | 0 |
Included in other comprehensive income | 6,275 | 9,568 |
Acquisitions | 21,666 | 15,800 |
Sales | 0 | 0 |
Amortization | 4 | 4 |
Other | (1,557) | (1,377) |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | $ 585,988 | $ 554,801 |
Percent of total fixed maturities | 3.70% | 3.80% |
Investments - Additional Inform
Investments - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2017USD ($)Issue | Mar. 31, 2016USD ($) | Dec. 31, 2016Issue | |
Gain (Loss) on Investments [Line Items] | |||
Total issues of fixed maturity portfolio | Issue | 1,535 | 1,565 | |
Fixed Maturities [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Other than-temporary impairment, available for sale securities | $ | $ 0 | $ 0 |
Investments - Schedule of Infor
Investments - Schedule of Information about Investments in Unrealized Loss Position (Details) - position | Mar. 31, 2017 | Dec. 31, 2016 |
Number of issues (Cusip numbers) held: | ||
Less than Twelve Months | 346 | 407 |
Twelve Months or Longer | 87 | 94 |
Total | 433 | 501 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Investment Losses by Class of Investment (Details) - Fixed maturities available for sale [Member] $ in Thousands | Mar. 31, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | $ 2,291,686 |
Unrealized Loss, Less Than Twelve Months | (70,411) |
Fair Value, Twelve Months or Longer | 629,278 |
Unrealized Loss, Twelve Months or Longer | (89,356) |
Fair Value, Total | 2,920,964 |
Unrealized Loss Total | (159,767) |
Investment grade [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 2,271,123 |
Unrealized Loss, Less Than Twelve Months | (70,288) |
Fair Value, Twelve Months or Longer | 311,155 |
Unrealized Loss, Twelve Months or Longer | (23,301) |
Fair Value, Total | 2,582,278 |
Unrealized Loss Total | (93,589) |
Investment grade [Member] | U.S. Government direct, guaranteed, and government-sponsored enterprises [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 243,425 |
Unrealized Loss, Less Than Twelve Months | (5,865) |
Fair Value, Twelve Months or Longer | 1,441 |
Unrealized Loss, Twelve Months or Longer | (559) |
Fair Value, Total | 244,866 |
Unrealized Loss Total | (6,424) |
Investment grade [Member] | States, municipalities, and political subdivisions [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 30,822 |
Unrealized Loss, Less Than Twelve Months | (779) |
Fair Value, Twelve Months or Longer | 668 |
Unrealized Loss, Twelve Months or Longer | (32) |
Fair Value, Total | 31,490 |
Unrealized Loss Total | (811) |
Investment grade [Member] | Foreign governments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 2,187 |
Unrealized Loss, Less Than Twelve Months | (8) |
Fair Value, Twelve Months or Longer | 0 |
Unrealized Loss, Twelve Months or Longer | 0 |
Fair Value, Total | 2,187 |
Unrealized Loss Total | (8) |
Investment grade [Member] | Corporates [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 1,940,282 |
Unrealized Loss, Less Than Twelve Months | (63,023) |
Fair Value, Twelve Months or Longer | 309,046 |
Unrealized Loss, Twelve Months or Longer | (22,710) |
Fair Value, Total | 2,249,328 |
Unrealized Loss Total | (85,733) |
Investment grade [Member] | Corporates [Member] | Financial [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 335,653 |
Unrealized Loss, Less Than Twelve Months | (7,863) |
Fair Value, Twelve Months or Longer | 80,362 |
Unrealized Loss, Twelve Months or Longer | (3,632) |
Fair Value, Total | 416,015 |
Unrealized Loss Total | (11,495) |
Investment grade [Member] | Corporates [Member] | Utilities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 246,001 |
Unrealized Loss, Less Than Twelve Months | (7,937) |
Fair Value, Twelve Months or Longer | 16,675 |
Unrealized Loss, Twelve Months or Longer | (1,905) |
Fair Value, Total | 262,676 |
Unrealized Loss Total | (9,842) |
Investment grade [Member] | Corporates [Member] | Energy [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 57,535 |
Unrealized Loss, Less Than Twelve Months | (955) |
Fair Value, Twelve Months or Longer | 141,685 |
Unrealized Loss, Twelve Months or Longer | (12,049) |
Fair Value, Total | 199,220 |
Unrealized Loss Total | (13,004) |
Investment grade [Member] | Corporates [Member] | Other corporate sectors [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 1,301,093 |
Unrealized Loss, Less Than Twelve Months | (46,268) |
Fair Value, Twelve Months or Longer | 70,324 |
Unrealized Loss, Twelve Months or Longer | (5,124) |
Fair Value, Total | 1,371,417 |
Unrealized Loss Total | (51,392) |
Investment grade [Member] | Other asset-backed securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 24,580 |
Unrealized Loss, Less Than Twelve Months | (361) |
Fair Value, Twelve Months or Longer | 0 |
Unrealized Loss, Twelve Months or Longer | 0 |
Fair Value, Total | 24,580 |
Unrealized Loss Total | (361) |
Investment grade [Member] | Redeemable preferred stocks [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 29,827 |
Unrealized Loss, Less Than Twelve Months | (252) |
Fair Value, Twelve Months or Longer | 0 |
Unrealized Loss, Twelve Months or Longer | 0 |
Fair Value, Total | 29,827 |
Unrealized Loss Total | (252) |
Investment grade [Member] | Redeemable preferred stocks [Member] | Financial [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 23,985 |
Unrealized Loss, Less Than Twelve Months | (6) |
Fair Value, Twelve Months or Longer | 0 |
Unrealized Loss, Twelve Months or Longer | 0 |
Fair Value, Total | 23,985 |
Unrealized Loss Total | (6) |
Investment grade [Member] | Redeemable preferred stocks [Member] | Utilities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 5,842 |
Unrealized Loss, Less Than Twelve Months | (246) |
Fair Value, Twelve Months or Longer | 0 |
Unrealized Loss, Twelve Months or Longer | 0 |
Fair Value, Total | 5,842 |
Unrealized Loss Total | (246) |
Below investment grade [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 20,563 |
Unrealized Loss, Less Than Twelve Months | (123) |
Fair Value, Twelve Months or Longer | 318,123 |
Unrealized Loss, Twelve Months or Longer | (66,055) |
Fair Value, Total | 338,686 |
Unrealized Loss Total | (66,178) |
Below investment grade [Member] | States, municipalities, and political subdivisions [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 0 |
Unrealized Loss, Less Than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 333 |
Unrealized Loss, Twelve Months or Longer | (218) |
Fair Value, Total | 333 |
Unrealized Loss Total | (218) |
Below investment grade [Member] | Corporates [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 10,563 |
Unrealized Loss, Less Than Twelve Months | (123) |
Fair Value, Twelve Months or Longer | 287,320 |
Unrealized Loss, Twelve Months or Longer | (49,184) |
Fair Value, Total | 297,883 |
Unrealized Loss Total | (49,307) |
Below investment grade [Member] | Corporates [Member] | Financial [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 0 |
Unrealized Loss, Less Than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 82,995 |
Unrealized Loss, Twelve Months or Longer | (22,765) |
Fair Value, Total | 82,995 |
Unrealized Loss Total | (22,765) |
Below investment grade [Member] | Corporates [Member] | Energy [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 10,563 |
Unrealized Loss, Less Than Twelve Months | (123) |
Fair Value, Twelve Months or Longer | 88,907 |
Unrealized Loss, Twelve Months or Longer | (18,193) |
Fair Value, Total | 99,470 |
Unrealized Loss Total | (18,316) |
Below investment grade [Member] | Corporates [Member] | Other corporate sectors [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 0 |
Unrealized Loss, Less Than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 115,418 |
Unrealized Loss, Twelve Months or Longer | (8,226) |
Fair Value, Total | 115,418 |
Unrealized Loss Total | (8,226) |
Below investment grade [Member] | Collateralized debt obligations [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 0 |
Unrealized Loss, Less Than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 10,351 |
Unrealized Loss, Twelve Months or Longer | (9,648) |
Fair Value, Total | 10,351 |
Unrealized Loss Total | (9,648) |
Below investment grade [Member] | Redeemable preferred stocks [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 10,000 |
Unrealized Loss, Less Than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 20,119 |
Unrealized Loss, Twelve Months or Longer | (7,005) |
Fair Value, Total | 30,119 |
Unrealized Loss Total | (7,005) |
Below investment grade [Member] | Redeemable preferred stocks [Member] | Financial [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than Twelve Months | 10,000 |
Unrealized Loss, Less Than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 20,119 |
Unrealized Loss, Twelve Months or Longer | (7,005) |
Fair Value, Total | 30,119 |
Unrealized Loss Total | $ (7,005) |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Discontinued Operations and Disposal Groups [Abstract] | |
Gain from sale of discontinued operations | $ 1.8 |
Gain from sale of discontinued operations, net of tax | $ 1.2 |
Discontinued Operations - Net A
Discontinued Operations - Net Assets Held for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Due premiums | $ 3,945 | $ 8,840 |
Other receivables | 79,400 | 118,692 |
Total assets related to discontinued operations | 83,345 | 127,532 |
Liabilities: | ||
Risk sharing payable | 8,528 | 8,374 |
Current and deferred income taxes payable | 3,128 | 3,820 |
Other | 2,068 | 15,230 |
Total liabilities related to discontinued operations | 13,724 | 27,424 |
Net assets | 69,621 | 100,108 |
Contingent purchase price reserve remaining | 3,600 | |
Centers for Medicare and Medicaid Services [Member] | ||
Assets: | ||
Other receivables | 65,000 | 50,000 |
Drug Manufacturers [Member] | ||
Assets: | ||
Other receivables | $ 14,000 | $ 69,000 |
Discontinued Operations - Incom
Discontinued Operations - Income from Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue: | ||
Health premium | $ (224) | $ 54,699 |
Benefits and expenses: | ||
Health policyholder benefits | 4,184 | 61,481 |
Amortization of deferred acquisition costs | 0 | 1,008 |
Commissions, premium taxes, and non-deferred acquisition expenses | 576 | 5,109 |
Other operating expense | 611 | 1,780 |
Total benefits and expenses | 5,371 | 69,378 |
Income (loss) before income taxes for discontinued operations | (5,595) | (14,679) |
Income tax benefit (expense) | 1,958 | 5,138 |
Income (loss) from discontinued operations | $ (3,637) | $ (9,541) |
Discontinued Operations - Opera
Discontinued Operations - Operating Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Net cash provided from (used for) discontinued operations | $ 26,850 | $ 14,061 |
Liability for Unpaid Claims - S
Liability for Unpaid Claims - Summary of Liability for Unpaid Health Claims (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Activity in the Liability for Unpaid Health Claims | ||
Balance at beginning of period | $ 143,128 | $ 137,120 |
Incurred related to: | ||
Current year | 135,377 | 126,897 |
Prior years | (4,024) | (316) |
Total incurred | 131,353 | 126,581 |
Paid related to: | ||
Current year | 54,241 | 52,621 |
Prior years | 77,555 | 76,421 |
Total paid | 131,796 | 129,042 |
Balance at end of period | $ 142,685 | $ 134,659 |
Liability for Unpaid Claims - R
Liability for Unpaid Claims - Reconciliation of Net Incurred and Paid Claims Development to Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Policy claims and other benefits payable: | ||
Short-duration contracts | $ 24,341 | $ 26,721 |
Insurance lines other than short duration—health | 118,344 | 116,407 |
Insurance lines other than short duration—life | 159,259 | 156,437 |
Total policy claims and other benefits payable | $ 301,944 | $ 299,565 |
Liability for Unpaid Claims -43
Liability for Unpaid Claims - Short-Duration Contracts (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Claims Development [Line Items] | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 24,341 |
2013 [Member] | |
Claims Development [Line Items] | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 0 |
2014 [Member] | |
Claims Development [Line Items] | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 7 |
2015 [Member] | |
Claims Development [Line Items] | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 210 |
2016 [Member] | |
Claims Development [Line Items] | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 6,174 |
2017 [Member] | |
Claims Development [Line Items] | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 17,950 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Summary of Post-Retirement Benefit Costs by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 4,487 | $ 3,894 |
Interest cost | 5,550 | 5,432 |
Expected return on assets | (5,899) | (5,782) |
Amortization: | ||
Prior service cost | 119 | 120 |
Actuarial (gain) loss | 2,951 | 2,424 |
Direct recognition of expense | 0 | 0 |
Net periodic benefit cost | 7,208 | 6,088 |
Other Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 250 | 212 |
Expected return on assets | 0 | 0 |
Amortization: | ||
Prior service cost | 0 | 0 |
Actuarial (gain) loss | 39 | 8 |
Direct recognition of expense | 96 | 34 |
Net periodic benefit cost | $ 385 | $ 254 |
Postretirement Benefit Plans 45
Postretirement Benefit Plans - Schedule of Assets at Fair Value for Defined-Benefit Pension Plans (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 336,953 | $ 328,871 |
Percent of total pension assets | 100.00% | 100.00% |
Exchange traded fund [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 142,902 | $ 134,771 |
Percent of total pension assets | 42.00% | 41.00% |
Other bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 260 | $ 258 |
Percent of total pension assets | 0.00% | 0.00% |
Guaranteed annuity contract [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 19,126 | $ 18,997 |
Percent of total pension assets | 6.00% | 6.00% |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 3,075 | $ 7,418 |
Percent of total pension assets | 1.00% | 2.00% |
Corporate debt [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 160,254 | $ 160,036 |
Percent of total pension assets | 48.00% | 49.00% |
Short-term investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 11,336 | $ 7,391 |
Percent of total pension assets | 3.00% | 2.00% |
Postretirement Benefit Plans 46
Postretirement Benefit Plans - Pension Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension Benefit Obligation | $ 538,872 | $ 527,522 |
Funded defined pension plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension Benefit Obligation | 460,475 | 449,613 |
SERP (Active) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension Benefit Obligation | 75,533 | 74,687 |
SERP (Closed) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension Benefit Obligation | $ 2,864 | $ 3,222 |
Postretirement Benefit Plans 47
Postretirement Benefit Plans - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension benefit obligation | $ 538,872,000 | $ 527,522,000 |
Cash contributions made to benefit plans | 0 | |
Insurance cash value and Rabbi Trust investments supporting supplemental pension plan liability | 88,000,000 | 86,000,000 |
Maximum [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Expected cash contributions | 20,000,000 | |
Funded defined pension plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension benefit obligation | 460,475,000 | 449,613,000 |
SERP (Active) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension benefit obligation | $ 75,533,000 | $ 74,687,000 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Weighted - Average Shares Outstanding (Details) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Basic weighted average shares outstanding | 117,770,474 | 121,480,805 |
Weighted average dilutive options outstanding | 2,659,242 | 1,831,938 |
Diluted weighted average shares outstanding | 120,429,716 | 123,312,743 |
Antidilutive shares | 625,855 | 1,489,562 |
Business Segments - Reconciliat
Business Segments - Reconciliation of Segment Operating Information to Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue: | ||
Premium | $ 820,631 | $ 779,860 |
Net investment income | 208,282 | 197,053 |
Other income | 416 | 421 |
Total revenue | 1,029,329 | 977,334 |
Expenses: | ||
Policy benefits | 557,776 | 524,973 |
Required interest on reserves | 0 | 0 |
Required interest on DAC | 0 | 0 |
Amortization of acquisition costs | 125,908 | 118,806 |
Commissions, premium taxes, and non-deferred acquisition costs | 65,116 | 61,602 |
Insurance administrative expense | 51,913 | 48,468 |
Parent expense | 2,233 | 2,026 |
Stock compensation expense | 8,195 | 6,935 |
Interest expense | 20,699 | 19,369 |
Total benefits and expenses | 831,840 | 782,179 |
Subtotal | 197,489 | 195,155 |
Non-operating items | 0 | 0 |
Measure of segment profitability (pretax) | 197,489 | 195,155 |
Deduct applicable income taxes | (58,818) | (61,771) |
Segment profits after tax | 138,671 | 133,384 |
Add (deduct) realized investment gains (losses) | (5,748) | 293 |
Pretax income from continuing operations per Condensed Consolidated Statements of Operations | 191,741 | 195,448 |
Operating Segments [Member] | Life [Member] | ||
Revenue: | ||
Premium | 575,837 | 544,151 |
Total revenue | 575,837 | 544,151 |
Expenses: | ||
Policy benefits | 391,079 | 362,860 |
Required interest on reserves | (148,825) | (142,011) |
Required interest on DAC | 45,936 | 44,202 |
Amortization of acquisition costs | 99,905 | 94,539 |
Commissions, premium taxes, and non-deferred acquisition costs | 43,638 | 40,261 |
Total benefits and expenses | 431,733 | 399,851 |
Subtotal | 144,104 | 144,300 |
Measure of segment profitability (pretax) | 144,104 | 144,300 |
Operating Segments [Member] | Health [Member] | ||
Revenue: | ||
Premium | 244,791 | 235,697 |
Total revenue | 244,791 | 235,697 |
Expenses: | ||
Policy benefits | 157,751 | 152,775 |
Required interest on reserves | (18,975) | (18,076) |
Required interest on DAC | 5,809 | 5,742 |
Amortization of acquisition costs | 25,327 | 22,365 |
Commissions, premium taxes, and non-deferred acquisition costs | 21,502 | 21,376 |
Total benefits and expenses | 191,414 | 184,182 |
Subtotal | 53,377 | 51,515 |
Measure of segment profitability (pretax) | 53,377 | 51,515 |
Operating Segments [Member] | Annuity [Member] | ||
Revenue: | ||
Premium | 3 | 12 |
Total revenue | 3 | 12 |
Expenses: | ||
Policy benefits | 8,946 | 9,338 |
Required interest on reserves | (12,418) | (13,092) |
Required interest on DAC | 178 | 224 |
Amortization of acquisition costs | 676 | 1,902 |
Commissions, premium taxes, and non-deferred acquisition costs | 11 | 9 |
Total benefits and expenses | (2,607) | (1,619) |
Subtotal | 2,610 | 1,631 |
Measure of segment profitability (pretax) | 2,610 | 1,631 |
Operating Segments [Member] | Investment [Member] | ||
Revenue: | ||
Net investment income | 208,282 | 197,053 |
Total revenue | 208,282 | 197,053 |
Expenses: | ||
Required interest on reserves | 180,218 | 173,179 |
Required interest on DAC | (51,923) | (50,168) |
Interest expense | 20,699 | 19,369 |
Total benefits and expenses | 148,994 | 142,380 |
Subtotal | 59,288 | 54,673 |
Measure of segment profitability (pretax) | 59,288 | 54,673 |
Operating Segments [Member] | Other & Corporate [Member] | ||
Revenue: | ||
Other income | 451 | 465 |
Total revenue | 451 | 465 |
Expenses: | ||
Insurance administrative expense | 51,913 | 48,468 |
Parent expense | 2,233 | 2,026 |
Stock compensation expense | 8,195 | 6,935 |
Total benefits and expenses | 62,341 | 57,429 |
Subtotal | (61,890) | (56,964) |
Measure of segment profitability (pretax) | (61,890) | (56,964) |
Adjustments [Member] | ||
Revenue: | ||
Other income | (35) | (44) |
Total revenue | (35) | (44) |
Expenses: | ||
Commissions, premium taxes, and non-deferred acquisition costs | (35) | (44) |
Insurance administrative expense | ||
Total benefits and expenses | (35) | (44) |
Subtotal | 0 | 0 |
Non-operating items | 0 | 0 |
Measure of segment profitability (pretax) | $ 0 | $ 0 |
Business Segments - Analysis of
Business Segments - Analysis of Profitability by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Pretax operating income | $ 197,489 | $ 195,155 |
Applicable taxes | (58,818) | (61,771) |
Segment profits after tax | 138,671 | 133,384 |
Discontinued operations (after tax) | (3,637) | (9,541) |
Net operating income | 135,034 | 123,843 |
Reconciling items, net of tax: | ||
Realized gains (losses)—investments (after tax) | (1,493) | 190 |
Net income | 133,541 | 124,033 |
Operating Segments [Member] | Life insurance underwriting margin [Member] | ||
Segment Reporting Information [Line Items] | ||
Pretax operating income | 144,104 | 144,300 |
Operating Segments [Member] | Health insurance underwriting margin [Member] | ||
Segment Reporting Information [Line Items] | ||
Pretax operating income | 53,377 | 51,515 |
Operating Segments [Member] | Annuity underwriting margin [Member] | ||
Segment Reporting Information [Line Items] | ||
Pretax operating income | 2,610 | 1,631 |
Operating Segments [Member] | Excessive investment income [Member] | ||
Segment Reporting Information [Line Items] | ||
Pretax operating income | 59,288 | 54,673 |
Operating Segments [Member] | Other and corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Pretax operating income | (61,890) | (56,964) |
Operating Segments [Member] | Other and corporate [Member] | Other income [Member] | ||
Segment Reporting Information [Line Items] | ||
Pretax operating income | 451 | 465 |
Operating Segments [Member] | Other and corporate [Member] | Administrative expense [Member] | ||
Segment Reporting Information [Line Items] | ||
Pretax operating income | (51,913) | (48,468) |
Operating Segments [Member] | Other and corporate [Member] | Corporate and adjustments [Member] | ||
Segment Reporting Information [Line Items] | ||
Pretax operating income | $ (10,428) | $ (8,961) |