Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 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 | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 116,320,319 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Investments: | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2017—$14,651,551; 2016—$14,188,050) | $ 16,318,286 | $ 15,245,861 |
Policy loans | 516,064 | 507,975 |
Other long-term investments | 55,532 | 53,852 |
Short-term investments | 94,387 | 72,040 |
Total investments | 16,984,269 | 15,879,728 |
Cash | 97,652 | 76,163 |
Accrued investment income | 228,347 | 223,148 |
Other receivables | 380,028 | 384,454 |
Deferred acquisition costs | 3,862,418 | 3,783,158 |
Goodwill | 441,591 | 441,591 |
Other assets | 515,012 | 520,313 |
Assets related to discontinued operations | 68,623 | 127,532 |
Total assets | 22,577,940 | 21,436,087 |
Liabilities: | ||
Future policy benefits | 13,127,651 | 12,825,837 |
Unearned and advance premiums | 69,106 | 64,017 |
Policy claims and other benefits payable | 307,384 | 299,565 |
Other policyholders' funds | 97,237 | 96,993 |
Total policy liabilities | 13,601,378 | 13,286,412 |
Current and deferred income taxes payable | 2,009,825 | 1,743,990 |
Other liabilities | 436,105 | 413,760 |
Short-term debt | 306,271 | 264,475 |
Long-term debt (estimated fair value: 2017—$1,250,875; 2016—$1,233,019) | 1,131,796 | 1,133,165 |
Liabilities related to discontinued operations | 39,149 | 27,424 |
Total liabilities | 17,524,524 | 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 2016 | 0 | 0 |
Common stock, par value $1 per share—Authorized 320,000,000 shares; outstanding: (2017—127,218,183 issued, less 10,959,454 held in treasury and 2016—127,218,183 issued, less 9,187,075 held in treasury) | 127,218 | 127,218 |
Additional paid-in capital | 500,123 | 490,421 |
Accumulated other comprehensive income | 984,560 | 577,574 |
Retained earnings | 4,112,757 | 3,890,798 |
Treasury stock, at cost | (671,242) | (519,150) |
Total shareholders’ equity | 5,053,416 | 4,566,861 |
Total liabilities and shareholders’ equity | $ 22,577,940 | $ 21,436,087 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available for sale, amortized cost | $ 14,651,551 | $ 14,188,050 |
Long-term debt, fair value | $ 1,250,875 | $ 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) | 10,959,454 | 9,187,075 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue: | ||||
Life premium | $ 573,836 | $ 548,590 | $ 1,149,673 | $ 1,092,741 |
Health premium | 242,775 | 237,252 | 487,566 | 472,949 |
Other premium | 3 | 13 | 6 | 25 |
Total premium | 816,614 | 785,855 | 1,637,245 | 1,565,715 |
Net investment income | 212,776 | 201,642 | 421,058 | 398,695 |
Realized investment gains (losses) | (705) | 4,005 | (6,453) | 4,298 |
Other income | 393 | 382 | 809 | 803 |
Total revenue | 1,029,078 | 991,884 | 2,052,659 | 1,969,511 |
Benefits and expenses: | ||||
Life policyholder benefits | 390,859 | 369,342 | 781,938 | 732,202 |
Health policyholder benefits | 156,579 | 153,261 | 314,330 | 306,036 |
Other policyholder benefits | 8,977 | 8,882 | 17,923 | 18,220 |
Total policyholder benefits | 556,415 | 531,485 | 1,114,191 | 1,056,458 |
Amortization of deferred acquisition costs | 122,121 | 117,245 | 248,029 | 236,051 |
Commissions, premium taxes, and non-deferred acquisition costs | 65,032 | 62,854 | 130,148 | 124,456 |
Other operating expense | 62,428 | 57,846 | 124,769 | 115,275 |
Interest expense | 21,156 | 23,110 | 41,855 | 42,479 |
Total benefits and expenses | 827,152 | 792,540 | 1,658,992 | 1,574,719 |
Income before income taxes | 201,926 | 199,344 | 393,667 | 394,792 |
Income taxes | (61,563) | (60,050) | (116,126) | (121,924) |
Income from continuing operations | 140,363 | 139,294 | 277,541 | 272,868 |
Income (loss) from discontinued operations, net of tax | (90) | (865) | (3,727) | (10,406) |
Net income | $ 140,273 | $ 138,429 | $ 273,814 | $ 262,462 |
Basic net income (loss) per common share: | ||||
Continuing operations (in dollars per share) | $ 1.20 | $ 1.16 | $ 2.37 | $ 2.26 |
Discontinued operations (in dollars per share) | 0 | (0.01) | (0.03) | (0.09) |
Total basic net income per common share (in dollars per share) | 1.20 | 1.15 | 2.34 | 2.17 |
Diluted net income (loss) per common share: | ||||
Continuing operations (in dollars per share) | 1.18 | 1.13 | 2.32 | 2.22 |
Discontinued operations (in dollars per share) | 0 | 0 | (0.03) | (0.09) |
Total diluted net income per common share (in dollars per share) | 1.18 | 1.13 | 2.29 | 2.13 |
Dividends declared per common share (in dollars per share) | $ 0.15 | $ 0.14 | $ 0.3 | $ 0.28 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net income | $ 140,273 | $ 138,429 | $ 273,814 | $ 262,462 |
Unrealized gains (losses) on securities: | ||||
Total unrealized investment gains (losses) | 396,929 | 692,615 | 611,995 | 1,157,208 |
Less applicable tax (expense) benefit | (138,931) | (242,401) | (214,254) | (404,990) |
Unrealized investment gains (losses), net of tax | 257,998 | 450,214 | 397,741 | 752,218 |
Unrealized gains (losses) attributable to deferred acquisition costs | (727) | (2,681) | (1,497) | (5,450) |
Less applicable tax (expense) benefit | 254 | 938 | 524 | 1,907 |
Unrealized gains (losses) attributable to deferred acquisition costs, net of tax | (473) | (1,743) | (973) | (3,543) |
Foreign exchange translation adjustments, other than securities | 3,302 | 5,382 | 7,516 | 7,142 |
Less applicable tax (expense) benefit | (1,153) | (1,898) | (1,581) | (2,438) |
Foreign exchange translation adjustments, other than securities, net of tax | 2,149 | 3,484 | 5,935 | 4,704 |
Pension adjustments: | ||||
Amortization of pension costs | 3,109 | 2,551 | 6,218 | 5,103 |
Experience gain (loss) | 0 | 105 | 371 | 791 |
Pension adjustments | 3,109 | 2,656 | 6,589 | 5,894 |
Less applicable tax (expense) benefit | (1,088) | (929) | (2,306) | (2,063) |
Pension adjustments, net of tax | 2,021 | 1,727 | 4,283 | 3,831 |
Other comprehensive income (loss) | 261,695 | 453,682 | 406,986 | 757,210 |
Comprehensive income (loss) | 401,968 | 592,111 | 680,800 | 1,019,672 |
Securities [Member] | ||||
Unrealized gains (losses) on securities: | ||||
Unrealized holding gains (losses) arising during period | 394,004 | 695,984 | 609,531 | 1,161,141 |
Reclassification adjustment for (gains) losses on securities included in net income | 681 | (3,983) | (354) | (4,296) |
Reclassification adjustment for amortization of (discount) and premium | (61) | (1,204) | (498) | (2,568) |
Foreign exchange adjustment on securities recorded at fair value | 230 | 593 | 245 | 1,048 |
Unrealized gains (losses) on securities | 394,854 | 691,390 | 608,924 | 1,155,325 |
Other Investments [Member] | ||||
Unrealized gains (losses) on securities: | ||||
Unrealized gains (losses) on other investments | $ 2,075 | $ 1,225 | $ 3,071 | $ 1,883 |
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) | 1,019,672 | 757,210 | 262,462 | ||||
Common dividends declared ($0.28 in 2016 and $0.30 in 2017) | (33,766) | (33,766) | |||||
Acquisition of treasury stock | (202,975) | (202,975) | |||||
Stock-based compensation | 13,989 | 7,442 | (2,224) | 8,771 | |||
Exercise of stock options | 25,286 | (23,175) | 48,461 | ||||
Stockholders' equity, ending balance at Jun. 30, 2016 | 4,877,758 | 0 | 130,218 | 489,726 | 989,157 | 3,817,666 | (549,009) |
Stockholders' equity, beginning balance at Mar. 31, 2016 | 535,475 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income (loss) | 592,111 | ||||||
Stockholders' equity, ending balance at Jun. 30, 2016 | 4,877,758 | 0 | 130,218 | 489,726 | 989,157 | 3,817,666 | (549,009) |
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) | 680,800 | 406,986 | 273,814 | ||||
Common dividends declared ($0.28 in 2016 and $0.30 in 2017) | (35,005) | (35,005) | |||||
Acquisition of treasury stock | (203,756) | (203,756) | |||||
Stock-based compensation | 16,546 | 9,702 | (606) | 7,450 | |||
Exercise of stock options | 27,970 | (16,244) | 44,214 | ||||
Stockholders' equity, ending balance at Jun. 30, 2017 | 5,053,416 | 0 | 127,218 | 500,123 | 984,560 | 4,112,757 | (671,242) |
Stockholders' equity, beginning balance at Mar. 31, 2017 | 722,865 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income (loss) | 401,968 | ||||||
Stockholders' equity, ending balance at Jun. 30, 2017 | $ 5,053,416 | $ 0 | $ 127,218 | $ 500,123 | $ 984,560 | $ 4,112,757 | $ (671,242) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per common share (in dollars per share) | $ 0.15 | $ 0.14 | $ 0.3 | $ 0.28 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Cash Flows [Abstract] | ||
Cash provided from operating activities | $ 739,056 | $ 604,935 |
Investments sold or matured: | ||
Fixed maturities available for sale—sold | 0 | 51,299 |
Fixed maturities available for sale—matured, called, and repaid | 216,170 | 92,475 |
Other long-term investments | 3,046 | 1,394 |
Total long-term investments sold or matured | 219,216 | 145,168 |
Acquisition of investments: | ||
Fixed maturities—available for sale | (676,648) | (651,267) |
Other long-term investments | (1,775) | (21,762) |
Total investments acquired | (678,423) | (673,029) |
Net increase in policy loans | (8,089) | (9,093) |
Net (increase) decrease in short-term investments | (22,347) | 6,185 |
Net change in payable or receivable for securities | 0 | (711) |
Additions to property and equipment | (8,080) | (6,740) |
Sale of other assets | 18 | 0 |
Investment in low-income housing interests | (8,875) | (9,260) |
Cash provided from (used for) investing activities | (506,580) | (547,480) |
Cash provided from (used for) financing activities: | ||
Issuance of common stock | 27,970 | 25,286 |
Cash dividends paid to shareholders | (34,093) | (33,478) |
Proceeds from issuance of debt | 0 | 400,000 |
Payment for debt issuance costs | 0 | (9,638) |
Repayment of debt | (625) | (250,000) |
Net borrowing (repayment) of commercial paper | 40,546 | 45,010 |
Acquisition of treasury stock | (203,756) | (202,975) |
Net receipts (payments) from deposit-type product | (44,294) | (38,193) |
Cash provided from (used for) financing activities | (214,252) | (63,988) |
Effect of foreign exchange rate changes on cash | 3,265 | (5,172) |
Net increase (decrease) in cash | 21,489 | (11,705) |
Cash at beginning of year | 76,163 | 61,383 |
Cash at end of period | $ 97,652 | $ 49,678 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 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 June 30, 2017 , and the condensed consolidated results of operations, comprehensive income, and cash flows for the periods ended June 30, 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 | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards Accounting Pronouncements Not Yet Adopted ASU 2016-01: In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which primarily revises the classification and measurement of certain equity investments such that they will be measured at fair value through net income. Additionally, it eliminates the cost method for partnerships and joint ventures and requires these types of investments to be accounted for under the fair value through net income method or equity method. Lastly, the guidance will require certain disclosures associated with fair value of financial instruments. This standard will become effective for the Company beginning January 1, 2018. The Company does not expect the adoption to have a significant impact on the financial statements as we have limited ownership in equity investments and partnerships, representing less than 1% of total invested assets. 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 leases with a term life greater than 12 months. Operating and financing leases will be recognized on the balance sheet going forward. Additional qualitative and quantitative disclosures will be required. This 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 noncancellable operating lease commitments. The Company does not have any lessor 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 as we have limited credit losses with respect to our available-for-sale portfolio. 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. This adoption will not have a significant impact on the financial statements. 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. This adoption will not 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. This adoption will not 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 does not expect the adoption to have a significant impact on the financial statements as the change in pension capitalization should be less than 1% of Total Benefits and Expenses for the year. 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. This adoption will not have a significant impact on the financial statements. ASU 2017-09: In May 2017, the FASB issued Accounting Standards Update No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. This guidance was issued to provide clarity and guidance regarding changes to the terms or conditions of a share-based payment award that requires an entity to apply modification accounting. It will become effective on January 1, 2018 with early adoption permitted, including adoption in any interim periods. The Company does not expect the adoption to have a significant impact on the financial statements as modifications to stock compensation are infrequent. |
Supplemental Information about
Supplemental Information about Changes to Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 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 and six month periods ended June 30, 2017 and 2016 . Components of Accumulated Other Comprehensive Income Three Months Ended June 30, 2017 Available Deferred Foreign Pension Total Balance at April 1, 2017 $ 832,057 $ (7,182 ) $ 8,753 $ (110,763 ) $ 722,865 Other comprehensive income (loss) before reclassifications, net of tax 257,595 (473 ) 2,149 — 259,271 Reclassifications, net of tax 403 — — 2,021 2,424 Other comprehensive income (loss) 257,998 (473 ) 2,149 2,021 261,695 Balance at June 30, 2017 $ 1,090,055 $ (7,655 ) $ 10,902 $ (108,742 ) $ 984,560 Three Months Ended June 30, 2016 Available Deferred Foreign Pension Total Balance at April 1, 2016 $ 634,337 $ (6,915 ) $ 4,847 $ (96,794 ) $ 535,475 Other comprehensive income (loss) before reclassifications, net of tax 453,586 (1,743 ) 3,484 69 455,396 Reclassifications, net of tax (3,372 ) — — 1,658 (1,714 ) Other comprehensive income (loss) 450,214 (1,743 ) 3,484 1,727 453,682 Balance at June 30, 2016 $ 1,084,551 $ (8,658 ) $ 8,331 $ (95,067 ) $ 989,157 Components of Accumulated Other Comprehensive Income Six Months Ended June 30, 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 398,295 (973 ) 5,935 241 403,498 Reclassifications, net of tax (554 ) — — 4,042 3,488 Other comprehensive income (loss) 397,741 (973 ) 5,935 4,283 406,986 Balance at June 30, 2017 $ 1,090,055 $ (7,655 ) $ 10,902 $ (108,742 ) $ 984,560 Six Months Ended June 30, 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 756,680 (3,543 ) 4,704 514 758,355 Reclassifications, net of tax (4,462 ) — — 3,317 (1,145 ) Other comprehensive income (loss) 752,218 (3,543 ) 4,704 3,831 757,210 Balance at June 30, 2016 $ 1,084,551 $ (8,658 ) $ 8,331 $ (95,067 ) $ 989,157 Reclassifications out of Accumulated Other Comprehensive Income are presented below for the three and six month periods ended June 30, 2017 and 2016 . Reclassification Adjustments Three Months Ended Six Months Ended Affected line items in the Statement of Operations 2017 2016 2017 2016 Unrealized investment gains (losses) on available for sale assets: Realized (gains) losses $ 681 $ (3,983 ) $ (354 ) $ (4,296 ) Realized gains (losses) Amortization of (discount) premium (61 ) (1,204 ) (498 ) (2,568 ) Net investment income Total before tax 620 (5,187 ) (852 ) (6,864 ) Tax (217 ) 1,815 298 2,402 Income taxes Total after tax 403 (3,372 ) (554 ) (4,462 ) Pension adjustments: Amortization of prior service cost 119 120 238 240 Other operating expenses Amortization of actuarial gain (loss) 2,990 2,431 5,980 4,863 Other operating expenses Total before tax 3,109 2,551 6,218 5,103 Tax (1,088 ) (893 ) (2,176 ) (1,786 ) Income taxes Total after tax 2,021 1,658 4,042 3,317 Total reclassifications (after tax) $ 2,424 $ (1,714 ) $ 3,488 $ (1,145 ) |
Investments
Investments | 6 Months Ended |
Jun. 30, 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 June 30, 2017 is as follows: Portfolio Composition as of June 30, 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 $ 387,331 $ 8,552 $ (1,696 ) $ 394,187 2 States, municipalities, and political subdivisions 1,182,708 128,175 (185 ) 1,310,698 8 Foreign governments 20,720 1,592 — 22,312 — Corporates, by sector: Financial 3,152,297 413,004 (25,309 ) 3,539,992 22 Utilities 1,909,247 314,825 (3,351 ) 2,220,721 14 Energy 1,589,769 170,566 (35,952 ) 1,724,383 11 Other corporate sectors 5,847,507 651,703 (20,017 ) 6,479,193 40 Total corporates 12,498,820 1,550,098 (84,629 ) 13,964,289 87 Collateralized debt obligations 59,871 16,677 (10,303 ) 66,245 — Other asset-backed securities 126,019 3,607 (15 ) 129,611 1 Redeemable preferred stocks, by sector: Financial 347,505 59,206 (5,849 ) 400,862 2 Utilities 28,577 1,725 (220 ) 30,082 — Total redeemable preferred stocks 376,082 60,931 (6,069 ) 430,944 2 Total fixed maturities $ 14,651,551 $ 1,769,632 $ (102,897 ) $ 16,318,286 100 (1) Amounts reported on the balance sheet. (2) At fair value. A schedule of fixed maturities available for sale by contractual maturity date at June 30, 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. June 30, 2017 Amortized Fair Value Fixed maturities available for sale: Due in one year or less $ 143,830 $ 148,150 Due after one year through five years 578,037 622,103 Due after five years through ten years 1,434,971 1,597,721 Due after ten years through twenty years 4,363,391 5,019,819 Due after twenty years 7,944,279 8,733,397 Mortgage-backed and asset-backed securities 187,043 197,096 $ 14,651,551 $ 16,318,286 Selected information about sales of fixed maturities available for sale is as follows. Three Months Ended Six Months Ended 2017 2016 2017 2016 Proceeds from sales $ — $ 36,968 $ — $ 51,299 Gross realized gains — 3,061 — 3,556 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 June 30, 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 $ — $ 394,187 $ — $ 394,187 States, municipalities, and political subdivisions — 1,310,698 — 1,310,698 Foreign governments — 22,312 — 22,312 Corporates, by sector: Financial — 3,477,619 62,373 3,539,992 Utilities — 2,065,431 155,290 2,220,721 Energy — 1,683,064 41,319 1,724,383 Other corporate sectors — 6,151,889 327,304 6,479,193 Total corporates — 13,378,003 586,286 13,964,289 Collateralized debt obligations — — 66,245 66,245 Other asset-backed securities — 115,458 14,153 129,611 Redeemable preferred stocks, by sector: Financial — 400,862 — 400,862 Utilities — 30,082 — 30,082 Total redeemable preferred stocks — 430,944 — 430,944 Total fixed maturities $ — $ 15,651,602 $ 666,684 $ 16,318,286 Percent of total — % 95.9 % 4.1 % 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) Six Months Ended June 30, 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 261 3,597 11,637 15,495 Acquisitions 14,000 — 21,666 35,666 Sales — — — — Amortization — 2,481 8 2,489 Other (2) (108 ) (3,336 ) (6,625 ) (10,069 ) Transfers in and/or out of Level 3 (3) — — — — Balance at June 30, 2017 $ 14,153 $ 66,245 $ 586,286 $ 666,684 Percent of total fixed maturities 0.1 % 0.4 % 3.6 % 4.1 % Six Months Ended June 30, 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 — (4,831 ) 24,291 19,460 Acquisitions — — 15,800 15,800 Sales — — — — Amortization — 2,639 8 2,647 Other (2) — (4,127 ) (1,740 ) (5,867 ) Transfers in and/or out of Level 3 (3) — — — — Balance at June 30, 2016 $ — $ 64,063 $ 569,165 $ 633,228 Percent of total fixed maturities — % 0.4 % 3.7 % 4.1 % (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: In accordance with the other-than-temporary impairment (OTTI) policy, the Company evaluated its fixed maturities available for sale in an unrealized loss position to determine if there was any impairment for the quarter. Gross unrealized losses may fluctuate quarter over quarter due to adverse factors in the market that affect our holdings, such as changes in the interest rates or credit spreads. While the Company holds securities that may be in an unrealized loss position from time to time, 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 due to the strong cash flows generated by its insurance operations. For the six months ended June 30, 2017 , the Company recorded $245 thousand ( $159 thousand , net of tax) in OTTI. For the comparable period in 2016 , the Company concluded that there were no other-than-temporary impairments. 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 June 30, 2017 164 76 240 As of December 31, 2016 407 94 501 Torchmark’s entire fixed maturity portfolio consisted of 1,516 issues at June 30, 2017 and 1,565 issues at December 31, 2016 . The weighted average quality rating of all unrealized loss positions as of June 30, 2017 was BBB . The following table discloses unrealized investment losses by class and major sector of fixed maturities available for sale at June 30, 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 June 30, 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 $ 114,030 $ (1,194 ) $ 1,501 $ (502 ) $ 115,531 $ (1,696 ) States, municipalities and political subdivisions 13,502 (155 ) 666 (30 ) 14,168 (185 ) Foreign governments — — — — — — Corporates, by sector: Financial 123,632 (3,735 ) 47,847 (1,157 ) 171,479 (4,892 ) Utilities 120,890 (2,481 ) 17,710 (870 ) 138,600 (3,351 ) Energy 36,740 (486 ) 137,991 (9,595 ) 174,731 (10,081 ) Other corporate sectors 437,568 (11,357 ) 69,796 (2,624 ) 507,364 (13,981 ) Total corporates 718,830 (18,059 ) 273,344 (14,246 ) 992,174 (32,305 ) Other asset-backed securities 9,927 (15 ) — — 9,927 (15 ) Redeemable preferred stocks, by sector: Financial — — — — — — Utilities 5,855 (220 ) — — 5,855 (220 ) Total redeemable preferred stocks 5,855 (220 ) — — 5,855 (220 ) Total investment grade securities 862,144 (19,643 ) 275,511 (14,778 ) 1,137,655 (34,421 ) Below investment grade securities: Bonds: States, municipalities and political subdivisions — — — — — — Corporates, by sector: Financial — — 85,338 (20,417 ) 85,338 (20,417 ) Energy 20,173 (185 ) 81,387 (25,686 ) 101,560 (25,871 ) Other corporate sectors — — 56,134 (6,036 ) 56,134 (6,036 ) Total corporates 20,173 (185 ) 222,859 (52,139 ) 243,032 (52,324 ) Collateralized debt obligations — — 9,697 (10,303 ) 9,697 (10,303 ) Redeemable preferred stocks, by sector: Financial — — 21,269 (5,849 ) 21,269 (5,849 ) Total redeemable preferred stocks — — 21,269 (5,849 ) 21,269 (5,849 ) Total below investment grade securities 20,173 (185 ) 253,825 (68,291 ) 273,998 (68,476 ) Total fixed maturities $ 882,317 $ (19,828 ) $ 529,336 $ (83,069 ) $ 1,411,653 $ (102,897 ) |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 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 for the six months ended June 30, 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 June 30, 2017 and December 31, 2016 were as follows: June 30, December 31, Assets: Due premiums $ 3,945 $ 8,840 Other receivables (1) 64,678 118,692 Total assets related to discontinued operations 68,623 127,532 Liabilities: Risk sharing payable 9,126 8,374 Current and deferred income taxes payable 1,910 3,820 Other (2) 28,113 15,230 Total liabilities related to discontinued operations 39,149 27,424 Net assets $ 29,474 $ 100,108 (1) At June 30, 2017 , other receivables included $65 million from the Centers for Medicare and Medicaid Services (CMS). At December 31, 2016 , other receivables included $50 million from the Centers for Medicare and Medicaid Services (CMS) and $69 million from drug manufacturer rebates. (2) At June 30, 2017 , the balance included $25.6 million due to CMS. At December 31, 2016 , the balance included a $3.6 million contingent purchase price reserve. Income from discontinued operations for the three and six months ended June 30, 2017 and 2016 was as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 Revenue: Health premium $ (71 ) $ 56,774 $ (295 ) $ 111,473 Benefits and expenses: Health policyholder benefits (252 ) 51,871 3,932 113,352 Amortization of deferred acquisition costs — 932 — 1,940 Commissions, premium taxes, and non-deferred acquisition expenses 154 3,792 730 8,901 Other operating expense 166 1,510 777 3,290 Total benefits and expenses 68 58,105 5,439 127,483 Income (loss) before income taxes for discontinued operations (139 ) (1,331 ) (5,734 ) (16,010 ) Income tax benefit (expense) 49 466 2,007 5,604 Income (loss) from discontinued operations $ (90 ) $ (865 ) $ (3,727 ) $ (10,406 ) Operating cash flows of the discontinued operations for the six months ended June 30, 2017 and 2016 were as follows: Six Months Ended 2017 2016 Net cash provided from (used for) discontinued operations $ 66,907 $ 60,995 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 2017 | |
Insurance [Abstract] | |
Liability for Unpaid Claims | Liability for Unpaid Claims Activity in the liability for unpaid health claims is summarized as follows: Six Months Ended June 30, 2017 2016 Balance at beginning of period $ 143,128 $ 137,120 Incurred related to: Current year 264,648 258,640 Prior years (8,364 ) (3,789 ) Total incurred 256,284 254,851 Paid related to: Current year 164,271 160,740 Prior years 94,676 94,284 Total paid 258,947 255,024 Balance at end of period $ 140,465 $ 136,947 Below is the reconciliation of the liability for "Policy claims and other benefits payable" in the Condensed Consolidated Balance Sheets . June 30, December 31, 2016 Policy claims and other benefits payable: Short-duration contracts $ 21,869 $ 26,721 Insurance lines other than short duration—health 118,596 116,407 Insurance lines other than short duration—life 166,919 156,437 Total policy claims and other benefits payable $ 307,384 $ 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 June 30, 2017 Accident Year Total of incurred-but-not-reported liabilities plus expected development on reported claims 2013 $ — 2014 3 2015 93 2016 2,266 2017 19,507 Total $ 21,869 |
Postretirement Benefit Plans
Postretirement Benefit Plans | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [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 June 30, Pension Benefits Other Benefits 2017 2016 2017 2016 Service cost $ 4,484 $ 3,894 $ — $ — Interest cost 5,551 5,432 250 212 Expected return on assets (5,898 ) (5,782 ) — — Amortization: Prior service cost 119 120 — — Actuarial (gain) loss 2,952 2,423 38 8 Direct recognition of expense — — 116 20 Net periodic benefit cost $ 7,208 $ 6,087 $ 404 $ 240 Six Months Ended June 30, Pension Benefits Other Benefits 2017 2016 2017 2016 Service cost $ 8,971 $ 7,788 $ — $ — Interest cost 11,101 10,864 500 424 Expected return on assets (11,797 ) (11,564 ) — — Amortization: Prior service cost 238 240 — — Actuarial (gain)/loss 5,903 4,847 77 16 Direct recognition of expense — — 212 54 Net periodic benefit cost $ 14,416 $ 12,175 $ 789 $ 494 The following table presents assets at fair value for the defined-benefit pension plans at June 30, 2017 and the prior-year end. Pension Assets by Component June 30, 2017 December 31, 2016 Amount % Amount % Corporate bonds $ 158,227 45 $ 160,036 49 Exchange traded fund (1) 147,357 42 134,771 41 Other bonds 261 — 258 — Guaranteed annuity contract (2) 19,254 5 18,997 6 Short-term investments 24,673 7 7,391 2 Other 5,281 1 7,418 2 Total $ 355,053 100 $ 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. The following table presents liabilities for the defined-benefit pension plans at June 30, 2017 and the prior-year end. Pension Liability June 30, December 31, 2016 Funded defined benefit pension $ 469,357 $ 449,613 SERP (1) (Active) 76,377 74,687 SERP (1) (Closed) 2,845 3,222 Pension Benefit Obligation $ 548,579 $ 527,522 (1) Supplemental executive retirement plan (SERP) During the six months ended June 30, 2017 , the Company made $12 million in 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 June 30, 2017 , the combined value of the insurance policies and investments in the Rabbi Trust to support plan liabilities were $91 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. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Basic weighted average shares outstanding 116,646,669 120,479,938 117,205,467 120,980,372 Weighted average dilutive options outstanding 2,449,882 2,267,910 2,554,158 2,055,407 Diluted weighted average shares outstanding 119,096,551 122,747,848 119,759,625 123,035,779 Antidilutive shares 1,444,280 — 1,037,328 18,158 |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 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 June 30, 2017 Life Health Annuity Investment Other & Adjustments Consolidated Revenue: Premium $ 573,836 $ 242,775 $ 3 $ 816,614 Net investment income $ 212,776 212,776 Other income $ 427 $ (34 ) (2) 393 Total revenue 573,836 242,775 3 212,776 427 (34 ) 1,029,783 Expenses: Policy benefits 388,765 156,579 8,977 2,094 (3) 556,415 Required interest on reserves (150,652 ) (19,267 ) (12,394 ) 182,313 — Required interest on DAC 46,213 5,840 174 (52,227 ) — Amortization of acquisition costs 98,473 23,016 632 122,121 Commissions, premium taxes, and non-deferred acquisition costs 43,708 21,351 7 (34 ) (2) 65,032 Insurance administrative expense (1) 51,412 51,412 Parent expense 2,665 2,665 Stock compensation expense 8,351 8,351 Interest expense 21,156 21,156 Total expenses 426,507 187,519 (2,604 ) 151,242 62,428 2,060 827,152 Subtotal 147,329 55,256 2,607 61,534 (62,001 ) (2,094 ) 202,631 Non-operating items 2,094 (3) 2,094 Measure of segment profitability (pretax) $ 147,329 $ 55,256 $ 2,607 $ 61,534 $ (62,001 ) $ — 204,725 Deduct applicable income taxes (62,543 ) Segment profits after tax 142,182 Add back income taxes applicable to segment profitability 62,543 Add (deduct) realized investment gains (losses) (705 ) Add (deduct) administrative settlements (3) (2,094 ) Pretax income from continuing operations per Condensed Consolidated Statements of Operations $ 201,926 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. (3) Administrative settlements. Three Months Ended June 30, 2016 Life Health Annuity Investment Other & Adjustments Consolidated Revenue: Premium $ 548,590 $ 237,252 $ 13 $ 785,855 Net investment income $ 201,642 201,642 Other income $ 422 $ (40 ) (2) 382 Total revenue 548,590 237,252 13 201,642 422 (40 ) 987,879 Expenses: Policy benefits 369,342 153,261 8,882 531,485 Required interest on reserves (143,625 ) (18,251 ) (12,506 ) 174,382 — Required interest on DAC 44,476 5,766 205 (50,447 ) — Amortization of acquisition costs 93,663 22,102 1,480 117,245 Commissions, premium taxes, and non-deferred acquisition costs 41,130 21,753 11 (40 ) (2) 62,854 Insurance administrative expense (1) 48,413 48,413 Parent expense 2,379 2,379 Stock compensation expense 7,054 7,054 Interest expense 23,110 23,110 Total expenses 404,986 184,631 (1,928 ) 147,045 57,846 (40 ) 792,540 Subtotal 143,604 52,621 1,941 54,597 (57,424 ) — 195,339 Non-operating items — — Measure of segment profitability (pretax) $ 143,604 $ 52,621 $ 1,941 $ 54,597 $ (57,424 ) $ — 195,339 Deduct applicable income taxes (58,649 ) Segment profits after tax 136,690 Add back income taxes applicable to segment profitability 58,649 Add (deduct) realized investment gains (losses) 4,005 Pretax income from continuing operations per Condensed Consolidated Statements of Operations $ 199,344 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. Six Months Ended June 30, 2017 Life Health Annuity Investment Other & Adjustments Consolidated Revenue: Premium $ 1,149,673 $ 487,566 $ 6 $ 1,637,245 Net investment income $ 421,058 421,058 Other income $ 878 $ (69 ) (2) 809 Total revenue 1,149,673 487,566 6 421,058 878 (69 ) 2,059,112 Expenses: Policy benefits 779,844 314,330 17,923 2,094 (3) 1,114,191 Required interest on reserves (299,477 ) (38,242 ) (24,812 ) 362,531 — Required interest on DAC 92,149 11,649 352 (104,150 ) — Amortization of acquisition costs 198,378 48,343 1,308 248,029 Commissions, premium taxes, and non-deferred acquisition costs 87,346 42,853 18 (69 ) (2) 130,148 Insurance administrative expense (1) 103,325 103,325 Parent expense 4,898 4,898 Stock compensation expense 16,546 16,546 Interest expense 41,855 41,855 Total expenses 858,240 378,933 (5,211 ) 300,236 124,769 2,025 1,658,992 Subtotal 291,433 108,633 5,217 120,822 (123,891 ) (2,094 ) 400,120 Non-operating items 2,094 (3) 2,094 Measure of segment profitability (pretax) $ 291,433 $ 108,633 $ 5,217 $ 120,822 $ (123,891 ) $ — 402,214 Deduct applicable income taxes (121,361 ) Segment profits after tax 280,853 Add back income taxes applicable to segment profitability 121,361 Add (deduct) realized investment gains (losses) (6,453 ) Add (deduct) administrative settlements (3) (2,094 ) Pretax income from continuing operations per Condensed Consolidated Statements of Operations $ 393,667 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. (3) Administrative settlements. Six Months Ended June 30, 2016 Life Health Annuity Investment Other & Adjustments Consolidated Revenue: Premium $ 1,092,741 $ 472,949 $ 25 $ 1,565,715 Net investment income $ 398,695 398,695 Other income $ 887 $ (84 ) (2) 803 Total revenue 1,092,741 472,949 25 398,695 887 (84 ) 1,965,213 Expenses: Policy benefits 732,202 306,036 18,220 1,056,458 Required interest on reserves (285,636 ) (36,327 ) (25,598 ) 347,561 — Required interest on DAC 88,678 11,508 429 (100,615 ) — Amortization of acquisition costs 188,202 44,467 3,382 236,051 Commissions, premium taxes, and non-deferred acquisition costs 81,391 43,129 20 (84 ) (2) 124,456 Insurance administrative expense (1) 96,881 96,881 Parent expense 4,405 4,405 Stock compensation expense 13,989 13,989 Interest expense 42,479 42,479 Total expenses 804,837 368,813 (3,547 ) 289,425 115,275 (84 ) 1,574,719 Subtotal 287,904 104,136 3,572 109,270 (114,388 ) — 390,494 Non-operating items — — Measure of segment profitability (pretax) $ 287,904 $ 104,136 $ 3,572 $ 109,270 $ (114,388 ) $ — 390,494 Deduct applicable income taxes (120,420 ) Segment profits after tax 270,074 Add back income taxes applicable to segment profitability 120,420 Add (deduct) realized investment gains (losses) 4,298 Pretax income from continuing operations per Condensed Consolidated Statements of Operations $ 394,792 (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 Six Months Ended 2017 2016 2017 2016 Life insurance underwriting margin $ 147,329 $ 143,604 $ 291,433 $ 287,904 Health insurance underwriting margin 55,256 52,621 108,633 104,136 Annuity underwriting margin 2,607 1,941 5,217 3,572 Excess investment income 61,534 54,597 120,822 109,270 Other insurance: Other income 427 422 878 887 Administrative expense (51,412 ) (48,413 ) (103,325 ) (96,881 ) Corporate and adjustments (11,016 ) (9,433 ) (21,444 ) (18,394 ) Segment profits before tax 204,725 195,339 402,214 390,494 Applicable taxes (62,543 ) (58,649 ) (121,361 ) (120,420 ) Segment profits after tax 142,182 136,690 280,853 270,074 Discontinued operations (after tax) (90 ) (865 ) (3,727 ) (10,406 ) Net operating income 142,092 135,825 277,126 259,668 Reconciling items, net of tax: Realized gains (losses)—investments (after tax) (458 ) 2,604 (1,951 ) 2,794 Administrative settlements (after tax) (1,361 ) — (1,361 ) — Net income $ 140,273 $ 138,429 $ 273,814 $ 262,462 |
Significant Accounting Polici19
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 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 June 30, 2017 , and the condensed consolidated results of operations, comprehensive income, and cash flows for the periods ended June 30, 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 Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which primarily revises the classification and measurement of certain equity investments such that they will be measured at fair value through net income. Additionally, it eliminates the cost method for partnerships and joint ventures and requires these types of investments to be accounted for under the fair value through net income method or equity method. Lastly, the guidance will require certain disclosures associated with fair value of financial instruments. This standard will become effective for the Company beginning January 1, 2018. The Company does not expect the adoption to have a significant impact on the financial statements as we have limited ownership in equity investments and partnerships, representing less than 1% of total invested assets. 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 leases with a term life greater than 12 months. Operating and financing leases will be recognized on the balance sheet going forward. Additional qualitative and quantitative disclosures will be required. This 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 noncancellable operating lease commitments. The Company does not have any lessor 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 as we have limited credit losses with respect to our available-for-sale portfolio. 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. This adoption will not have a significant impact on the financial statements. 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. This adoption will not 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. This adoption will not 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 does not expect the adoption to have a significant impact on the financial statements as the change in pension capitalization should be less than 1% of Total Benefits and Expenses for the year. 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. This adoption will not have a significant impact on the financial statements. ASU 2017-09: In May 2017, the FASB issued Accounting Standards Update No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. This guidance was issued to provide clarity and guidance regarding changes to the terms or conditions of a share-based payment award that requires an entity to apply modification accounting. It will become effective on January 1, 2018 with early adoption permitted, including adoption in any interim periods. The Company does not expect the adoption to have a significant impact on the financial statements as modifications to stock compensation are infrequent. |
Supplemental Information abou20
Supplemental Information about Changes to Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 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 and six month periods ended June 30, 2017 and 2016 . Components of Accumulated Other Comprehensive Income Three Months Ended June 30, 2017 Available Deferred Foreign Pension Total Balance at April 1, 2017 $ 832,057 $ (7,182 ) $ 8,753 $ (110,763 ) $ 722,865 Other comprehensive income (loss) before reclassifications, net of tax 257,595 (473 ) 2,149 — 259,271 Reclassifications, net of tax 403 — — 2,021 2,424 Other comprehensive income (loss) 257,998 (473 ) 2,149 2,021 261,695 Balance at June 30, 2017 $ 1,090,055 $ (7,655 ) $ 10,902 $ (108,742 ) $ 984,560 Three Months Ended June 30, 2016 Available Deferred Foreign Pension Total Balance at April 1, 2016 $ 634,337 $ (6,915 ) $ 4,847 $ (96,794 ) $ 535,475 Other comprehensive income (loss) before reclassifications, net of tax 453,586 (1,743 ) 3,484 69 455,396 Reclassifications, net of tax (3,372 ) — — 1,658 (1,714 ) Other comprehensive income (loss) 450,214 (1,743 ) 3,484 1,727 453,682 Balance at June 30, 2016 $ 1,084,551 $ (8,658 ) $ 8,331 $ (95,067 ) $ 989,157 Components of Accumulated Other Comprehensive Income Six Months Ended June 30, 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 398,295 (973 ) 5,935 241 403,498 Reclassifications, net of tax (554 ) — — 4,042 3,488 Other comprehensive income (loss) 397,741 (973 ) 5,935 4,283 406,986 Balance at June 30, 2017 $ 1,090,055 $ (7,655 ) $ 10,902 $ (108,742 ) $ 984,560 Six Months Ended June 30, 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 756,680 (3,543 ) 4,704 514 758,355 Reclassifications, net of tax (4,462 ) — — 3,317 (1,145 ) Other comprehensive income (loss) 752,218 (3,543 ) 4,704 3,831 757,210 Balance at June 30, 2016 $ 1,084,551 $ (8,658 ) $ 8,331 $ (95,067 ) $ 989,157 |
Summary of Reclassifications Out of Accumulated Other Comprehensive Income | Reclassifications out of Accumulated Other Comprehensive Income are presented below for the three and six month periods ended June 30, 2017 and 2016 . Reclassification Adjustments Three Months Ended Six Months Ended Affected line items in the Statement of Operations 2017 2016 2017 2016 Unrealized investment gains (losses) on available for sale assets: Realized (gains) losses $ 681 $ (3,983 ) $ (354 ) $ (4,296 ) Realized gains (losses) Amortization of (discount) premium (61 ) (1,204 ) (498 ) (2,568 ) Net investment income Total before tax 620 (5,187 ) (852 ) (6,864 ) Tax (217 ) 1,815 298 2,402 Income taxes Total after tax 403 (3,372 ) (554 ) (4,462 ) Pension adjustments: Amortization of prior service cost 119 120 238 240 Other operating expenses Amortization of actuarial gain (loss) 2,990 2,431 5,980 4,863 Other operating expenses Total before tax 3,109 2,551 6,218 5,103 Tax (1,088 ) (893 ) (2,176 ) (1,786 ) Income taxes Total after tax 2,021 1,658 4,042 3,317 Total reclassifications (after tax) $ 2,424 $ (1,714 ) $ 3,488 $ (1,145 ) |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2017 is as follows: Portfolio Composition as of June 30, 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 $ 387,331 $ 8,552 $ (1,696 ) $ 394,187 2 States, municipalities, and political subdivisions 1,182,708 128,175 (185 ) 1,310,698 8 Foreign governments 20,720 1,592 — 22,312 — Corporates, by sector: Financial 3,152,297 413,004 (25,309 ) 3,539,992 22 Utilities 1,909,247 314,825 (3,351 ) 2,220,721 14 Energy 1,589,769 170,566 (35,952 ) 1,724,383 11 Other corporate sectors 5,847,507 651,703 (20,017 ) 6,479,193 40 Total corporates 12,498,820 1,550,098 (84,629 ) 13,964,289 87 Collateralized debt obligations 59,871 16,677 (10,303 ) 66,245 — Other asset-backed securities 126,019 3,607 (15 ) 129,611 1 Redeemable preferred stocks, by sector: Financial 347,505 59,206 (5,849 ) 400,862 2 Utilities 28,577 1,725 (220 ) 30,082 — Total redeemable preferred stocks 376,082 60,931 (6,069 ) 430,944 2 Total fixed maturities $ 14,651,551 $ 1,769,632 $ (102,897 ) $ 16,318,286 100 (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 June 30, 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. June 30, 2017 Amortized Fair Value Fixed maturities available for sale: Due in one year or less $ 143,830 $ 148,150 Due after one year through five years 578,037 622,103 Due after five years through ten years 1,434,971 1,597,721 Due after ten years through twenty years 4,363,391 5,019,819 Due after twenty years 7,944,279 8,733,397 Mortgage-backed and asset-backed securities 187,043 197,096 $ 14,651,551 $ 16,318,286 |
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 Six Months Ended 2017 2016 2017 2016 Proceeds from sales $ — $ 36,968 $ — $ 51,299 Gross realized gains — 3,061 — 3,556 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 June 30, 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 $ — $ 394,187 $ — $ 394,187 States, municipalities, and political subdivisions — 1,310,698 — 1,310,698 Foreign governments — 22,312 — 22,312 Corporates, by sector: Financial — 3,477,619 62,373 3,539,992 Utilities — 2,065,431 155,290 2,220,721 Energy — 1,683,064 41,319 1,724,383 Other corporate sectors — 6,151,889 327,304 6,479,193 Total corporates — 13,378,003 586,286 13,964,289 Collateralized debt obligations — — 66,245 66,245 Other asset-backed securities — 115,458 14,153 129,611 Redeemable preferred stocks, by sector: Financial — 400,862 — 400,862 Utilities — 30,082 — 30,082 Total redeemable preferred stocks — 430,944 — 430,944 Total fixed maturities $ — $ 15,651,602 $ 666,684 $ 16,318,286 Percent of total — % 95.9 % 4.1 % 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) Six Months Ended June 30, 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 261 3,597 11,637 15,495 Acquisitions 14,000 — 21,666 35,666 Sales — — — — Amortization — 2,481 8 2,489 Other (2) (108 ) (3,336 ) (6,625 ) (10,069 ) Transfers in and/or out of Level 3 (3) — — — — Balance at June 30, 2017 $ 14,153 $ 66,245 $ 586,286 $ 666,684 Percent of total fixed maturities 0.1 % 0.4 % 3.6 % 4.1 % Six Months Ended June 30, 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 — (4,831 ) 24,291 19,460 Acquisitions — — 15,800 15,800 Sales — — — — Amortization — 2,639 8 2,647 Other (2) — (4,127 ) (1,740 ) (5,867 ) Transfers in and/or out of Level 3 (3) — — — — Balance at June 30, 2016 $ — $ 64,063 $ 569,165 $ 633,228 Percent of total fixed maturities — % 0.4 % 3.7 % 4.1 % (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 June 30, 2017 164 76 240 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 June 30, 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 June 30, 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 $ 114,030 $ (1,194 ) $ 1,501 $ (502 ) $ 115,531 $ (1,696 ) States, municipalities and political subdivisions 13,502 (155 ) 666 (30 ) 14,168 (185 ) Foreign governments — — — — — — Corporates, by sector: Financial 123,632 (3,735 ) 47,847 (1,157 ) 171,479 (4,892 ) Utilities 120,890 (2,481 ) 17,710 (870 ) 138,600 (3,351 ) Energy 36,740 (486 ) 137,991 (9,595 ) 174,731 (10,081 ) Other corporate sectors 437,568 (11,357 ) 69,796 (2,624 ) 507,364 (13,981 ) Total corporates 718,830 (18,059 ) 273,344 (14,246 ) 992,174 (32,305 ) Other asset-backed securities 9,927 (15 ) — — 9,927 (15 ) Redeemable preferred stocks, by sector: Financial — — — — — — Utilities 5,855 (220 ) — — 5,855 (220 ) Total redeemable preferred stocks 5,855 (220 ) — — 5,855 (220 ) Total investment grade securities 862,144 (19,643 ) 275,511 (14,778 ) 1,137,655 (34,421 ) Below investment grade securities: Bonds: States, municipalities and political subdivisions — — — — — — Corporates, by sector: Financial — — 85,338 (20,417 ) 85,338 (20,417 ) Energy 20,173 (185 ) 81,387 (25,686 ) 101,560 (25,871 ) Other corporate sectors — — 56,134 (6,036 ) 56,134 (6,036 ) Total corporates 20,173 (185 ) 222,859 (52,139 ) 243,032 (52,324 ) Collateralized debt obligations — — 9,697 (10,303 ) 9,697 (10,303 ) Redeemable preferred stocks, by sector: Financial — — 21,269 (5,849 ) 21,269 (5,849 ) Total redeemable preferred stocks — — 21,269 (5,849 ) 21,269 (5,849 ) Total below investment grade securities 20,173 (185 ) 253,825 (68,291 ) 273,998 (68,476 ) Total fixed maturities $ 882,317 $ (19,828 ) $ 529,336 $ (83,069 ) $ 1,411,653 $ (102,897 ) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2017 and December 31, 2016 were as follows: June 30, December 31, Assets: Due premiums $ 3,945 $ 8,840 Other receivables (1) 64,678 118,692 Total assets related to discontinued operations 68,623 127,532 Liabilities: Risk sharing payable 9,126 8,374 Current and deferred income taxes payable 1,910 3,820 Other (2) 28,113 15,230 Total liabilities related to discontinued operations 39,149 27,424 Net assets $ 29,474 $ 100,108 (1) At June 30, 2017 , other receivables included $65 million from the Centers for Medicare and Medicaid Services (CMS). At December 31, 2016 , other receivables included $50 million from the Centers for Medicare and Medicaid Services (CMS) and $69 million from drug manufacturer rebates. (2) At June 30, 2017 , the balance included $25.6 million due to CMS. At December 31, 2016 , the balance included a $3.6 million contingent purchase price reserve. Income from discontinued operations for the three and six months ended June 30, 2017 and 2016 was as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 Revenue: Health premium $ (71 ) $ 56,774 $ (295 ) $ 111,473 Benefits and expenses: Health policyholder benefits (252 ) 51,871 3,932 113,352 Amortization of deferred acquisition costs — 932 — 1,940 Commissions, premium taxes, and non-deferred acquisition expenses 154 3,792 730 8,901 Other operating expense 166 1,510 777 3,290 Total benefits and expenses 68 58,105 5,439 127,483 Income (loss) before income taxes for discontinued operations (139 ) (1,331 ) (5,734 ) (16,010 ) Income tax benefit (expense) 49 466 2,007 5,604 Income (loss) from discontinued operations $ (90 ) $ (865 ) $ (3,727 ) $ (10,406 ) Operating cash flows of the discontinued operations for the six months ended June 30, 2017 and 2016 were as follows: Six Months Ended 2017 2016 Net cash provided from (used for) discontinued operations $ 66,907 $ 60,995 |
Liability for Unpaid Claims (Ta
Liability for Unpaid Claims (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Insurance [Abstract] | |
Activity in the Liability for Unpaid Health Claims | Activity in the liability for unpaid health claims is summarized as follows: Six Months Ended June 30, 2017 2016 Balance at beginning of period $ 143,128 $ 137,120 Incurred related to: Current year 264,648 258,640 Prior years (8,364 ) (3,789 ) Total incurred 256,284 254,851 Paid related to: Current year 164,271 160,740 Prior years 94,676 94,284 Total paid 258,947 255,024 Balance at end of period $ 140,465 $ 136,947 |
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 . June 30, December 31, 2016 Policy claims and other benefits payable: Short-duration contracts $ 21,869 $ 26,721 Insurance lines other than short duration—health 118,596 116,407 Insurance lines other than short duration—life 166,919 156,437 Total policy claims and other benefits payable $ 307,384 $ 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 June 30, 2017 Accident Year Total of incurred-but-not-reported liabilities plus expected development on reported claims 2013 $ — 2014 3 2015 93 2016 2,266 2017 19,507 Total $ 21,869 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [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 June 30, Pension Benefits Other Benefits 2017 2016 2017 2016 Service cost $ 4,484 $ 3,894 $ — $ — Interest cost 5,551 5,432 250 212 Expected return on assets (5,898 ) (5,782 ) — — Amortization: Prior service cost 119 120 — — Actuarial (gain) loss 2,952 2,423 38 8 Direct recognition of expense — — 116 20 Net periodic benefit cost $ 7,208 $ 6,087 $ 404 $ 240 Six Months Ended June 30, Pension Benefits Other Benefits 2017 2016 2017 2016 Service cost $ 8,971 $ 7,788 $ — $ — Interest cost 11,101 10,864 500 424 Expected return on assets (11,797 ) (11,564 ) — — Amortization: Prior service cost 238 240 — — Actuarial (gain)/loss 5,903 4,847 77 16 Direct recognition of expense — — 212 54 Net periodic benefit cost $ 14,416 $ 12,175 $ 789 $ 494 |
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 June 30, 2017 and the prior-year end. Pension Assets by Component June 30, 2017 December 31, 2016 Amount % Amount % Corporate bonds $ 158,227 45 $ 160,036 49 Exchange traded fund (1) 147,357 42 134,771 41 Other bonds 261 — 258 — Guaranteed annuity contract (2) 19,254 5 18,997 6 Short-term investments 24,673 7 7,391 2 Other 5,281 1 7,418 2 Total $ 355,053 100 $ 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 | The following table presents liabilities for the defined-benefit pension plans at June 30, 2017 and the prior-year end. Pension Liability June 30, December 31, 2016 Funded defined benefit pension $ 469,357 $ 449,613 SERP (1) (Active) 76,377 74,687 SERP (1) (Closed) 2,845 3,222 Pension Benefit Obligation $ 548,579 $ 527,522 (1) Supplemental executive retirement plan (SERP) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Basic weighted average shares outstanding 116,646,669 120,479,938 117,205,467 120,980,372 Weighted average dilutive options outstanding 2,449,882 2,267,910 2,554,158 2,055,407 Diluted weighted average shares outstanding 119,096,551 122,747,848 119,759,625 123,035,779 Antidilutive shares 1,444,280 — 1,037,328 18,158 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2017 Life Health Annuity Investment Other & Adjustments Consolidated Revenue: Premium $ 573,836 $ 242,775 $ 3 $ 816,614 Net investment income $ 212,776 212,776 Other income $ 427 $ (34 ) (2) 393 Total revenue 573,836 242,775 3 212,776 427 (34 ) 1,029,783 Expenses: Policy benefits 388,765 156,579 8,977 2,094 (3) 556,415 Required interest on reserves (150,652 ) (19,267 ) (12,394 ) 182,313 — Required interest on DAC 46,213 5,840 174 (52,227 ) — Amortization of acquisition costs 98,473 23,016 632 122,121 Commissions, premium taxes, and non-deferred acquisition costs 43,708 21,351 7 (34 ) (2) 65,032 Insurance administrative expense (1) 51,412 51,412 Parent expense 2,665 2,665 Stock compensation expense 8,351 8,351 Interest expense 21,156 21,156 Total expenses 426,507 187,519 (2,604 ) 151,242 62,428 2,060 827,152 Subtotal 147,329 55,256 2,607 61,534 (62,001 ) (2,094 ) 202,631 Non-operating items 2,094 (3) 2,094 Measure of segment profitability (pretax) $ 147,329 $ 55,256 $ 2,607 $ 61,534 $ (62,001 ) $ — 204,725 Deduct applicable income taxes (62,543 ) Segment profits after tax 142,182 Add back income taxes applicable to segment profitability 62,543 Add (deduct) realized investment gains (losses) (705 ) Add (deduct) administrative settlements (3) (2,094 ) Pretax income from continuing operations per Condensed Consolidated Statements of Operations $ 201,926 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. (3) Administrative settlements. Three Months Ended June 30, 2016 Life Health Annuity Investment Other & Adjustments Consolidated Revenue: Premium $ 548,590 $ 237,252 $ 13 $ 785,855 Net investment income $ 201,642 201,642 Other income $ 422 $ (40 ) (2) 382 Total revenue 548,590 237,252 13 201,642 422 (40 ) 987,879 Expenses: Policy benefits 369,342 153,261 8,882 531,485 Required interest on reserves (143,625 ) (18,251 ) (12,506 ) 174,382 — Required interest on DAC 44,476 5,766 205 (50,447 ) — Amortization of acquisition costs 93,663 22,102 1,480 117,245 Commissions, premium taxes, and non-deferred acquisition costs 41,130 21,753 11 (40 ) (2) 62,854 Insurance administrative expense (1) 48,413 48,413 Parent expense 2,379 2,379 Stock compensation expense 7,054 7,054 Interest expense 23,110 23,110 Total expenses 404,986 184,631 (1,928 ) 147,045 57,846 (40 ) 792,540 Subtotal 143,604 52,621 1,941 54,597 (57,424 ) — 195,339 Non-operating items — — Measure of segment profitability (pretax) $ 143,604 $ 52,621 $ 1,941 $ 54,597 $ (57,424 ) $ — 195,339 Deduct applicable income taxes (58,649 ) Segment profits after tax 136,690 Add back income taxes applicable to segment profitability 58,649 Add (deduct) realized investment gains (losses) 4,005 Pretax income from continuing operations per Condensed Consolidated Statements of Operations $ 199,344 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. Six Months Ended June 30, 2017 Life Health Annuity Investment Other & Adjustments Consolidated Revenue: Premium $ 1,149,673 $ 487,566 $ 6 $ 1,637,245 Net investment income $ 421,058 421,058 Other income $ 878 $ (69 ) (2) 809 Total revenue 1,149,673 487,566 6 421,058 878 (69 ) 2,059,112 Expenses: Policy benefits 779,844 314,330 17,923 2,094 (3) 1,114,191 Required interest on reserves (299,477 ) (38,242 ) (24,812 ) 362,531 — Required interest on DAC 92,149 11,649 352 (104,150 ) — Amortization of acquisition costs 198,378 48,343 1,308 248,029 Commissions, premium taxes, and non-deferred acquisition costs 87,346 42,853 18 (69 ) (2) 130,148 Insurance administrative expense (1) 103,325 103,325 Parent expense 4,898 4,898 Stock compensation expense 16,546 16,546 Interest expense 41,855 41,855 Total expenses 858,240 378,933 (5,211 ) 300,236 124,769 2,025 1,658,992 Subtotal 291,433 108,633 5,217 120,822 (123,891 ) (2,094 ) 400,120 Non-operating items 2,094 (3) 2,094 Measure of segment profitability (pretax) $ 291,433 $ 108,633 $ 5,217 $ 120,822 $ (123,891 ) $ — 402,214 Deduct applicable income taxes (121,361 ) Segment profits after tax 280,853 Add back income taxes applicable to segment profitability 121,361 Add (deduct) realized investment gains (losses) (6,453 ) Add (deduct) administrative settlements (3) (2,094 ) Pretax income from continuing operations per Condensed Consolidated Statements of Operations $ 393,667 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. (3) Administrative settlements. Six Months Ended June 30, 2016 Life Health Annuity Investment Other & Adjustments Consolidated Revenue: Premium $ 1,092,741 $ 472,949 $ 25 $ 1,565,715 Net investment income $ 398,695 398,695 Other income $ 887 $ (84 ) (2) 803 Total revenue 1,092,741 472,949 25 398,695 887 (84 ) 1,965,213 Expenses: Policy benefits 732,202 306,036 18,220 1,056,458 Required interest on reserves (285,636 ) (36,327 ) (25,598 ) 347,561 — Required interest on DAC 88,678 11,508 429 (100,615 ) — Amortization of acquisition costs 188,202 44,467 3,382 236,051 Commissions, premium taxes, and non-deferred acquisition costs 81,391 43,129 20 (84 ) (2) 124,456 Insurance administrative expense (1) 96,881 96,881 Parent expense 4,405 4,405 Stock compensation expense 13,989 13,989 Interest expense 42,479 42,479 Total expenses 804,837 368,813 (3,547 ) 289,425 115,275 (84 ) 1,574,719 Subtotal 287,904 104,136 3,572 109,270 (114,388 ) — 390,494 Non-operating items — — Measure of segment profitability (pretax) $ 287,904 $ 104,136 $ 3,572 $ 109,270 $ (114,388 ) $ — 390,494 Deduct applicable income taxes (120,420 ) Segment profits after tax 270,074 Add back income taxes applicable to segment profitability 120,420 Add (deduct) realized investment gains (losses) 4,298 Pretax income from continuing operations per Condensed Consolidated Statements of Operations $ 394,792 (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 Six Months Ended 2017 2016 2017 2016 Life insurance underwriting margin $ 147,329 $ 143,604 $ 291,433 $ 287,904 Health insurance underwriting margin 55,256 52,621 108,633 104,136 Annuity underwriting margin 2,607 1,941 5,217 3,572 Excess investment income 61,534 54,597 120,822 109,270 Other insurance: Other income 427 422 878 887 Administrative expense (51,412 ) (48,413 ) (103,325 ) (96,881 ) Corporate and adjustments (11,016 ) (9,433 ) (21,444 ) (18,394 ) Segment profits before tax 204,725 195,339 402,214 390,494 Applicable taxes (62,543 ) (58,649 ) (121,361 ) (120,420 ) Segment profits after tax 142,182 136,690 280,853 270,074 Discontinued operations (after tax) (90 ) (865 ) (3,727 ) (10,406 ) Net operating income 142,092 135,825 277,126 259,668 Reconciling items, net of tax: Realized gains (losses)—investments (after tax) (458 ) 2,604 (1,951 ) 2,794 Administrative settlements (after tax) (1,361 ) — (1,361 ) — Net income $ 140,273 $ 138,429 $ 273,814 $ 262,462 |
New Accounting Standards (Detai
New Accounting Standards (Details) | Jun. 30, 2017 |
Partnership [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Ownership percentage | 1.00% |
Joint Venture [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Ownership percentage | 1.00% |
Supplemental Information abou28
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 | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 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 | $ 259,271 | $ 455,396 | 403,498 | 758,355 |
Reclassifications, net of tax | 2,424 | (1,714) | 3,488 | (1,145) |
Other comprehensive income (loss) | 261,695 | 453,682 | 406,986 | 757,210 |
Stockholders' equity, ending balance | 5,053,416 | 4,877,758 | 5,053,416 | 4,877,758 |
Available for Sale Assets [Member] | ||||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||||
Stockholders' equity, beginning balance | 832,057 | 634,337 | 692,314 | 332,333 |
Other comprehensive income (loss) before reclassifications, net of tax | 257,595 | 453,586 | 398,295 | 756,680 |
Reclassifications, net of tax | 403 | (3,372) | (554) | (4,462) |
Other comprehensive income (loss) | 257,998 | 450,214 | 397,741 | 752,218 |
Stockholders' equity, ending balance | 1,090,055 | 1,084,551 | 1,090,055 | 1,084,551 |
Deferred Acquisition Costs [Member] | ||||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||||
Stockholders' equity, beginning balance | (7,182) | (6,915) | (6,682) | (5,115) |
Other comprehensive income (loss) before reclassifications, net of tax | (473) | (1,743) | (973) | (3,543) |
Reclassifications, net of tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | (473) | (1,743) | (973) | (3,543) |
Stockholders' equity, ending balance | (7,655) | (8,658) | (7,655) | (8,658) |
Foreign Exchange [Member] | ||||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||||
Stockholders' equity, beginning balance | 8,753 | 4,847 | 4,967 | 3,627 |
Other comprehensive income (loss) before reclassifications, net of tax | 2,149 | 3,484 | 5,935 | 4,704 |
Reclassifications, net of tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 2,149 | 3,484 | 5,935 | 4,704 |
Stockholders' equity, ending balance | 10,902 | 8,331 | 10,902 | 8,331 |
Pension Adjustments [Member] | ||||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||||
Stockholders' equity, beginning balance | (110,763) | (96,794) | (113,025) | (98,898) |
Other comprehensive income (loss) before reclassifications, net of tax | 0 | 69 | 241 | 514 |
Reclassifications, net of tax | 2,021 | 1,658 | 4,042 | 3,317 |
Other comprehensive income (loss) | 2,021 | 1,727 | 4,283 | 3,831 |
Stockholders' equity, ending balance | (108,742) | (95,067) | (108,742) | (95,067) |
Total [Member] | ||||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||||
Stockholders' equity, beginning balance | 722,865 | 535,475 | 577,574 | 231,947 |
Stockholders' equity, ending balance | $ 984,560 | $ 989,157 | $ 984,560 | $ 989,157 |
Supplemental Information abou29
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 | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Unrealized investment gains (losses) on available for sale assets: | ||||
Realized (gains) losses | $ 705 | $ (4,005) | $ 6,453 | $ (4,298) |
Amortization of (discount) premium | (212,776) | (201,642) | (421,058) | (398,695) |
Total before tax | (201,926) | (199,344) | (393,667) | (394,792) |
Tax | 61,563 | 60,050 | 116,126 | 121,924 |
Net income | (140,273) | (138,429) | (273,814) | (262,462) |
Pension adjustments: | ||||
Total reclassifications (after tax) | 2,424 | (1,714) | 3,488 | (1,145) |
Unrealized Investment Gains (Losses) on Available for Sale Assets [Member] | ||||
Pension adjustments: | ||||
Total reclassifications (after tax) | 403 | (3,372) | (554) | (4,462) |
Amortization of Prior Service Cost [Member] | ||||
Pension adjustments: | ||||
Pension adjustments reclassified out of accumulated other comprehensive income | 119 | 120 | 238 | 240 |
Amortization of Actuarial Gain (Loss) [Member] | ||||
Pension adjustments: | ||||
Pension adjustments reclassified out of accumulated other comprehensive income | 2,990 | 2,431 | 5,980 | 4,863 |
Pension Adjustments [Member] | ||||
Pension adjustments: | ||||
Pension adjustments reclassified out of accumulated other comprehensive income | 3,109 | 2,551 | 6,218 | 5,103 |
Tax | (1,088) | (893) | (2,176) | (1,786) |
Total reclassifications (after tax) | 2,021 | 1,658 | 4,042 | 3,317 |
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 | 681 | (3,983) | (354) | (4,296) |
Amortization of (discount) premium | (61) | (1,204) | (498) | (2,568) |
Total before tax | 620 | (5,187) | (852) | (6,864) |
Tax | (217) | 1,815 | 298 | 2,402 |
Net income | $ 403 | $ (3,372) | $ (554) | $ (4,462) |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturities Available for Sale by Component (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 14,651,551 | $ 14,188,050 |
Fair Value | 16,318,286 | $ 15,245,861 |
Fixed maturities available for sale [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 14,651,551 | |
Gross Unrealized Gains | 1,769,632 | |
Gross Unrealized Losses | (102,897) | |
Fair Value | $ 16,318,286 | |
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 | $ 387,331 | |
Gross Unrealized Gains | 8,552 | |
Gross Unrealized Losses | (1,696) | |
Fair Value | $ 394,187 | |
Percentage of Total Fixed Maturities At Fair Value | 2.00% | |
Fixed maturities available for sale [Member] | States, municipalities, and political subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 1,182,708 | |
Gross Unrealized Gains | 128,175 | |
Gross Unrealized Losses | (185) | |
Fair Value | $ 1,310,698 | |
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 | $ 20,720 | |
Gross Unrealized Gains | 1,592 | |
Gross Unrealized Losses | 0 | |
Fair Value | $ 22,312 | |
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 | $ 12,498,820 | |
Gross Unrealized Gains | 1,550,098 | |
Gross Unrealized Losses | (84,629) | |
Fair Value | $ 13,964,289 | |
Percentage of Total Fixed Maturities At Fair Value | 87.00% | |
Fixed maturities available for sale [Member] | Corporates [Member] | Financial [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 3,152,297 | |
Gross Unrealized Gains | 413,004 | |
Gross Unrealized Losses | (25,309) | |
Fair Value | $ 3,539,992 | |
Percentage of Total Fixed Maturities At Fair Value | 22.00% | |
Fixed maturities available for sale [Member] | Corporates [Member] | Utilities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 1,909,247 | |
Gross Unrealized Gains | 314,825 | |
Gross Unrealized Losses | (3,351) | |
Fair Value | $ 2,220,721 | |
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 | $ 1,589,769 | |
Gross Unrealized Gains | 170,566 | |
Gross Unrealized Losses | (35,952) | |
Fair Value | $ 1,724,383 | |
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 | $ 5,847,507 | |
Gross Unrealized Gains | 651,703 | |
Gross Unrealized Losses | (20,017) | |
Fair Value | $ 6,479,193 | |
Percentage of Total Fixed Maturities At Fair Value | 40.00% | |
Fixed maturities available for sale [Member] | Collateralized debt obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 59,871 | |
Gross Unrealized Gains | 16,677 | |
Gross Unrealized Losses | (10,303) | |
Fair Value | $ 66,245 | |
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 | $ 126,019 | |
Gross Unrealized Gains | 3,607 | |
Gross Unrealized Losses | (15) | |
Fair Value | $ 129,611 | |
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 | $ 376,082 | |
Gross Unrealized Gains | 60,931 | |
Gross Unrealized Losses | (6,069) | |
Fair Value | $ 430,944 | |
Percentage of Total Fixed Maturities At Fair Value | 2.00% | |
Fixed maturities available for sale [Member] | Redeemable preferred stocks [Member] | Financial [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 347,505 | |
Gross Unrealized Gains | 59,206 | |
Gross Unrealized Losses | (5,849) | |
Fair Value | $ 400,862 | |
Percentage of Total Fixed Maturities At Fair Value | 2.00% | |
Fixed maturities available for sale [Member] | Redeemable preferred stocks [Member] | Utilities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 28,577 | |
Gross Unrealized Gains | 1,725 | |
Gross Unrealized Losses | (220) | |
Fair Value | $ 30,082 | |
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 | Jun. 30, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Due in one year or less | $ 143,830 | |
Due after one year through five years | 578,037 | |
Due after five years through ten years | 1,434,971 | |
Due after ten years through twenty years | 4,363,391 | |
Due after twenty years | 7,944,279 | |
Mortgage-backed and asset-backed securities | 187,043 | |
Cost or Amortized Cost | 14,651,551 | $ 14,188,050 |
Fair Value | ||
Due in one year or less | 148,150 | |
Due after one year through five years | 622,103 | |
Due after five years through ten years | 1,597,721 | |
Due after ten years through twenty years | 5,019,819 | |
Due after twenty years | 8,733,397 | |
Mortgage-backed and asset-backed securities | 197,096 | |
Fixed Maturities, Available for Sale, Fair Value | $ 16,318,286 | $ 15,245,861 |
Investments - Schedule of Selec
Investments - Schedule of Selected Information about Sales of Fixed Maturities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Proceeds from sales | $ 0 | $ 51,299 | ||
Fixed Maturities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Proceeds from sales | $ 0 | $ 36,968 | 0 | 51,299 |
Gross realized gains | 0 | 3,061 | 0 | 3,556 |
Gross realized losses | $ 0 | $ 0 | $ 0 | $ (214) |
Investments - Assets Measured a
Investments - Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 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—$14,651,551; 2016—$14,188,050) | $ 16,318,286 | $ 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 | 95.90% | |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percent of total | 4.10% | |
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—$14,651,551; 2016—$14,188,050) | $ 16,318,286 | |
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—$14,651,551; 2016—$14,188,050) | 394,187 | |
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—$14,651,551; 2016—$14,188,050) | 1,310,698 | |
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—$14,651,551; 2016—$14,188,050) | 22,312 | |
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—$14,651,551; 2016—$14,188,050) | 13,964,289 | |
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—$14,651,551; 2016—$14,188,050) | 3,539,992 | |
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—$14,651,551; 2016—$14,188,050) | 2,220,721 | |
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—$14,651,551; 2016—$14,188,050) | 1,724,383 | |
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—$14,651,551; 2016—$14,188,050) | 6,479,193 | |
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—$14,651,551; 2016—$14,188,050) | 66,245 | |
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—$14,651,551; 2016—$14,188,050) | 129,611 | |
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—$14,651,551; 2016—$14,188,050) | 430,944 | |
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—$14,651,551; 2016—$14,188,050) | 400,862 | |
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—$14,651,551; 2016—$14,188,050) | 30,082 | |
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—$14,651,551; 2016—$14,188,050) | 0 | |
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—$14,651,551; 2016—$14,188,050) | 0 | |
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—$14,651,551; 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—$14,651,551; 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—$14,651,551; 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—$14,651,551; 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—$14,651,551; 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—$14,651,551; 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—$14,651,551; 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—$14,651,551; 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—$14,651,551; 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—$14,651,551; 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—$14,651,551; 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—$14,651,551; 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—$14,651,551; 2016—$14,188,050) | 15,651,602 | |
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—$14,651,551; 2016—$14,188,050) | 394,187 | |
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—$14,651,551; 2016—$14,188,050) | 1,310,698 | |
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—$14,651,551; 2016—$14,188,050) | 22,312 | |
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—$14,651,551; 2016—$14,188,050) | 13,378,003 | |
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—$14,651,551; 2016—$14,188,050) | 3,477,619 | |
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—$14,651,551; 2016—$14,188,050) | 2,065,431 | |
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—$14,651,551; 2016—$14,188,050) | 1,683,064 | |
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—$14,651,551; 2016—$14,188,050) | 6,151,889 | |
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—$14,651,551; 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—$14,651,551; 2016—$14,188,050) | 115,458 | |
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—$14,651,551; 2016—$14,188,050) | 430,944 | |
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—$14,651,551; 2016—$14,188,050) | 400,862 | |
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—$14,651,551; 2016—$14,188,050) | 30,082 | |
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—$14,651,551; 2016—$14,188,050) | 666,684 | |
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—$14,651,551; 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—$14,651,551; 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—$14,651,551; 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—$14,651,551; 2016—$14,188,050) | 586,286 | |
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—$14,651,551; 2016—$14,188,050) | 62,373 | |
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—$14,651,551; 2016—$14,188,050) | 155,290 | |
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—$14,651,551; 2016—$14,188,050) | 41,319 | |
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—$14,651,551; 2016—$14,188,050) | 327,304 | |
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—$14,651,551; 2016—$14,188,050) | 66,245 | |
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—$14,651,551; 2016—$14,188,050) | 14,153 | |
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—$14,651,551; 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—$14,651,551; 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—$14,651,551; 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 | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 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 | 15,495 | 19,460 |
Acquisitions | 35,666 | 15,800 |
Sales | 0 | 0 |
Amortization | 2,489 | 2,647 |
Other | (10,069) | (5,867) |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | $ 666,684 | $ 633,228 |
Percent of total fixed maturities | 4.10% | 4.10% |
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 | 261 | 0 |
Acquisitions | 14,000 | 0 |
Sales | 0 | 0 |
Amortization | 0 | 0 |
Other | (108) | 0 |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | $ 14,153 | $ 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 | 3,597 | (4,831) |
Acquisitions | 0 | 0 |
Sales | 0 | 0 |
Amortization | 2,481 | 2,639 |
Other | (3,336) | (4,127) |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | $ 66,245 | $ 64,063 |
Percent of total fixed maturities | 0.40% | 0.40% |
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 | 11,637 | 24,291 |
Acquisitions | 21,666 | 15,800 |
Sales | 0 | 0 |
Amortization | 8 | 8 |
Other | (6,625) | (1,740) |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | $ 586,286 | $ 569,165 |
Percent of total fixed maturities | 3.60% | 3.70% |
Investments - Additional Inform
Investments - Additional Information (Details) | 6 Months Ended | ||
Jun. 30, 2017USD ($)Issue | Jun. 30, 2016USD ($) | Dec. 31, 2016Issue | |
Gain (Loss) on Investments [Line Items] | |||
Total issues of fixed maturity portfolio | Issue | 1,516 | 1,565 | |
Fixed Maturities [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Other than-temporary impairment, available for sale securities | $ 245,000 | $ 0 | |
Other than temporary impairment, available for sale securities, net of tax | $ 159,000 |
Investments - Schedule of Infor
Investments - Schedule of Information about Investments in Unrealized Loss Position (Details) - position | Jun. 30, 2017 | Dec. 31, 2016 |
Number of issues (Cusip numbers) held: | ||
Less than Twelve Months | 164 | 407 |
Twelve Months or Longer | 76 | 94 |
Total | 240 | 501 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Investment Losses by Class of Investment (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | $ 882,317 |
Fair Value, Twelve Months or Longer | 529,336 |
Fair Value, Total | 1,411,653 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | (19,828) |
Unrealized Loss, Twelve Months or Longer | (83,069) |
Unrealized Loss Total | (102,897) |
Investment grade [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 862,144 |
Fair Value, Twelve Months or Longer | 275,511 |
Fair Value, Total | 1,137,655 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | (19,643) |
Unrealized Loss, Twelve Months or Longer | (14,778) |
Unrealized Loss Total | (34,421) |
Investment grade [Member] | U.S. Government direct, guaranteed, and government-sponsored enterprises [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 114,030 |
Fair Value, Twelve Months or Longer | 1,501 |
Fair Value, Total | 115,531 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | (1,194) |
Unrealized Loss, Twelve Months or Longer | (502) |
Unrealized Loss Total | (1,696) |
Investment grade [Member] | States, municipalities, and political subdivisions [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 13,502 |
Fair Value, Twelve Months or Longer | 666 |
Fair Value, Total | 14,168 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | (155) |
Unrealized Loss, Twelve Months or Longer | (30) |
Unrealized Loss Total | (185) |
Investment grade [Member] | Foreign governments [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 0 |
Fair Value, Total | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | 0 |
Unrealized Loss, Twelve Months or Longer | 0 |
Unrealized Loss Total | 0 |
Investment grade [Member] | Corporates [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 718,830 |
Fair Value, Twelve Months or Longer | 273,344 |
Fair Value, Total | 992,174 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | (18,059) |
Unrealized Loss, Twelve Months or Longer | (14,246) |
Unrealized Loss Total | (32,305) |
Investment grade [Member] | Corporates [Member] | Financial [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 123,632 |
Fair Value, Twelve Months or Longer | 47,847 |
Fair Value, Total | 171,479 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | (3,735) |
Unrealized Loss, Twelve Months or Longer | (1,157) |
Unrealized Loss Total | (4,892) |
Investment grade [Member] | Corporates [Member] | Utilities [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 120,890 |
Fair Value, Twelve Months or Longer | 17,710 |
Fair Value, Total | 138,600 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | (2,481) |
Unrealized Loss, Twelve Months or Longer | (870) |
Unrealized Loss Total | (3,351) |
Investment grade [Member] | Corporates [Member] | Energy [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 36,740 |
Fair Value, Twelve Months or Longer | 137,991 |
Fair Value, Total | 174,731 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | (486) |
Unrealized Loss, Twelve Months or Longer | (9,595) |
Unrealized Loss Total | (10,081) |
Investment grade [Member] | Corporates [Member] | Other corporate sectors [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 437,568 |
Fair Value, Twelve Months or Longer | 69,796 |
Fair Value, Total | 507,364 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | (11,357) |
Unrealized Loss, Twelve Months or Longer | (2,624) |
Unrealized Loss Total | (13,981) |
Investment grade [Member] | Other asset-backed securities [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 9,927 |
Fair Value, Twelve Months or Longer | 0 |
Fair Value, Total | 9,927 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | (15) |
Unrealized Loss, Twelve Months or Longer | 0 |
Unrealized Loss Total | (15) |
Investment grade [Member] | Redeemable preferred stocks [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 5,855 |
Fair Value, Twelve Months or Longer | 0 |
Fair Value, Total | 5,855 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | (220) |
Unrealized Loss, Twelve Months or Longer | 0 |
Unrealized Loss Total | (220) |
Investment grade [Member] | Redeemable preferred stocks [Member] | Financial [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 0 |
Fair Value, Total | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | 0 |
Unrealized Loss, Twelve Months or Longer | 0 |
Unrealized Loss Total | 0 |
Investment grade [Member] | Redeemable preferred stocks [Member] | Utilities [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 5,855 |
Fair Value, Twelve Months or Longer | 0 |
Fair Value, Total | 5,855 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | (220) |
Unrealized Loss, Twelve Months or Longer | 0 |
Unrealized Loss Total | (220) |
Below investment grade [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 20,173 |
Fair Value, Twelve Months or Longer | 253,825 |
Fair Value, Total | 273,998 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | (185) |
Unrealized Loss, Twelve Months or Longer | (68,291) |
Unrealized Loss Total | (68,476) |
Below investment grade [Member] | States, municipalities, and political subdivisions [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 0 |
Fair Value, Total | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | 0 |
Unrealized Loss, Twelve Months or Longer | 0 |
Unrealized Loss Total | 0 |
Below investment grade [Member] | Corporates [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 20,173 |
Fair Value, Twelve Months or Longer | 222,859 |
Fair Value, Total | 243,032 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | (185) |
Unrealized Loss, Twelve Months or Longer | (52,139) |
Unrealized Loss Total | (52,324) |
Below investment grade [Member] | Corporates [Member] | Financial [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 85,338 |
Fair Value, Total | 85,338 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | 0 |
Unrealized Loss, Twelve Months or Longer | (20,417) |
Unrealized Loss Total | (20,417) |
Below investment grade [Member] | Corporates [Member] | Energy [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 20,173 |
Fair Value, Twelve Months or Longer | 81,387 |
Fair Value, Total | 101,560 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | (185) |
Unrealized Loss, Twelve Months or Longer | (25,686) |
Unrealized Loss Total | (25,871) |
Below investment grade [Member] | Corporates [Member] | Other corporate sectors [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 56,134 |
Fair Value, Total | 56,134 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | 0 |
Unrealized Loss, Twelve Months or Longer | (6,036) |
Unrealized Loss Total | (6,036) |
Below investment grade [Member] | Collateralized debt obligations [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 9,697 |
Fair Value, Total | 9,697 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | 0 |
Unrealized Loss, Twelve Months or Longer | (10,303) |
Unrealized Loss Total | (10,303) |
Below investment grade [Member] | Redeemable preferred stocks [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 21,269 |
Fair Value, Total | 21,269 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | 0 |
Unrealized Loss, Twelve Months or Longer | (5,849) |
Unrealized Loss Total | (5,849) |
Below investment grade [Member] | Redeemable preferred stocks [Member] | Financial [Member] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Fair Value, Less than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 21,269 |
Fair Value, Total | 21,269 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | |
Unrealized Loss, Less Than Twelve Months | 0 |
Unrealized Loss, Twelve Months or Longer | (5,849) |
Unrealized Loss Total | $ (5,849) |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
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 | Jun. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Due premiums | $ 3,945 | $ 8,840 |
Other receivables | 64,678 | 118,692 |
Total assets related to discontinued operations | 68,623 | 127,532 |
Liabilities: | ||
Risk sharing payable | 9,126 | 8,374 |
Current and deferred income taxes payable | 1,910 | 3,820 |
Other | 28,113 | 15,230 |
Total liabilities related to discontinued operations | 39,149 | 27,424 |
Net assets | 29,474 | 100,108 |
Centers for Medicare and Medicaid Services [Member] | ||
Assets: | ||
Other receivables | 65,000 | 50,000 |
Liabilities: | ||
Contingent purchase price reserve remaining | $ 25,600 | 3,600 |
Drug Manufacturers [Member] | ||
Assets: | ||
Other receivables | $ 69,000 |
Discontinued Operations - Incom
Discontinued Operations - Income from Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue: | ||||
Health premium | $ (71) | $ 56,774 | $ (295) | $ 111,473 |
Benefits and expenses: | ||||
Health policyholder benefits | (252) | 51,871 | 3,932 | 113,352 |
Amortization of deferred acquisition costs | 0 | 932 | 0 | 1,940 |
Commissions, premium taxes, and non-deferred acquisition expenses | 154 | 3,792 | 730 | 8,901 |
Other operating expense | 166 | 1,510 | 777 | 3,290 |
Total benefits and expenses | 68 | 58,105 | 5,439 | 127,483 |
Income (loss) before income taxes for discontinued operations | (139) | (1,331) | (5,734) | (16,010) |
Income tax benefit (expense) | 49 | 466 | 2,007 | 5,604 |
Income (loss) from discontinued operations | $ (90) | $ (865) | $ (3,727) | $ (10,406) |
Discontinued Operations - Opera
Discontinued Operations - Operating Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Net cash provided from (used for) discontinued operations | $ 66,907 | $ 60,995 |
Liability for Unpaid Claims - S
Liability for Unpaid Claims - Summary of Liability for Unpaid Health Claims (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Activity in the Liability for Unpaid Health Claims | ||
Balance at beginning of period | $ 143,128 | $ 137,120 |
Incurred related to: | ||
Current year | 264,648 | 258,640 |
Prior years | (8,364) | (3,789) |
Total incurred | 256,284 | 254,851 |
Paid related to: | ||
Current year | 164,271 | 160,740 |
Prior years | 94,676 | 94,284 |
Total paid | 258,947 | 255,024 |
Balance at end of period | $ 140,465 | $ 136,947 |
Liability for Unpaid Claims - R
Liability for Unpaid Claims - Reconciliation of Net Incurred and Paid Claims Development to Liability (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Policy claims and other benefits payable: | ||
Short-duration contracts | $ 21,869 | $ 26,721 |
Insurance lines other than short duration—health | 118,596 | 116,407 |
Insurance lines other than short duration—life | 166,919 | 156,437 |
Total policy claims and other benefits payable | $ 307,384 | $ 299,565 |
Liability for Unpaid Claims -44
Liability for Unpaid Claims - Short-Duration Contracts (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Claims Development [Line Items] | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 21,869 |
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 | 3 |
2015 [Member] | |
Claims Development [Line Items] | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 93 |
2016 [Member] | |
Claims Development [Line Items] | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 2,266 |
2017 [Member] | |
Claims Development [Line Items] | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 19,507 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Summary of Post-Retirement Benefit Costs by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 4,484 | $ 3,894 | $ 8,971 | $ 7,788 |
Interest cost | 5,551 | 5,432 | 11,101 | 10,864 |
Expected return on assets | (5,898) | (5,782) | (11,797) | (11,564) |
Amortization: | ||||
Prior service cost | 119 | 120 | 238 | 240 |
Actuarial (gain) loss | 2,952 | 2,423 | 5,903 | 4,847 |
Direct recognition of expense | 0 | 0 | 0 | 0 |
Net periodic benefit cost | 7,208 | 6,087 | 14,416 | 12,175 |
Other Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 250 | 212 | 500 | 424 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization: | ||||
Prior service cost | 0 | 0 | 0 | 0 |
Actuarial (gain) loss | 38 | 8 | 77 | 16 |
Direct recognition of expense | 116 | 20 | 212 | 54 |
Net periodic benefit cost | $ 404 | $ 240 | $ 789 | $ 494 |
Postretirement Benefit Plans 46
Postretirement Benefit Plans - Schedule of Assets at Fair Value for Defined-Benefit Pension Plans (Details) - Pension Benefits [Member] - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 355,053 | $ 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 | $ 147,357 | $ 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 | $ 261 | $ 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 | $ 19,254 | $ 18,997 |
Percent of total pension assets | 5.00% | 6.00% |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 5,281 | $ 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 | $ 158,227 | $ 160,036 |
Percent of total pension assets | 45.00% | 49.00% |
Short-term investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 24,673 | $ 7,391 |
Percent of total pension assets | 7.00% | 2.00% |
Postretirement Benefit Plans 47
Postretirement Benefit Plans - Pension Liability (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension Benefit Obligation | $ 548,579 | $ 527,522 |
SERP (Closed) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension Benefit Obligation | 2,845 | 3,222 |
Funded plan [Member] | Pension Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension Benefit Obligation | 469,357 | 449,613 |
Nonqualified plan [Member] | SERP (Active) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension Benefit Obligation | $ 76,377 | $ 74,687 |
Postretirement Benefit Plans 48
Postretirement Benefit Plans - Additional Information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension benefit obligation | $ 548,579,000 | $ 527,522,000 |
Pension Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cash contributions made to benefit plans | 12,000,000 | |
Pension Benefits [Member] | Maximum [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Expected cash contributions | 20,000,000 | |
Funded plan [Member] | Pension Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension benefit obligation | 469,357,000 | 449,613,000 |
Nonqualified plan [Member] | SERP (Active) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension benefit obligation | 76,377,000 | 74,687,000 |
Nonqualified plan [Member] | Unfunded Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Insurance cash value and Rabbi Trust investments supporting supplemental pension plan liability | $ 91,000,000 | $ 86,000,000 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Weighted - Average Shares Outstanding (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average shares outstanding | 116,646,669 | 120,479,938 | 117,205,467 | 120,980,372 |
Weighted average dilutive options outstanding | 2,449,882 | 2,267,910 | 2,554,158 | 2,055,407 |
Diluted weighted average shares outstanding | 119,096,551 | 122,747,848 | 119,759,625 | 123,035,779 |
Antidilutive shares | 1,444,280 | 0 | 1,037,328 | 18,158 |
Business Segments - Reconciliat
Business Segments - Reconciliation of Segment Operating Information to Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue: | ||||
Premium | $ 816,614 | $ 785,855 | $ 1,637,245 | $ 1,565,715 |
Net investment income | 212,776 | 201,642 | 421,058 | 398,695 |
Other income | 393 | 382 | 809 | 803 |
Total revenue | 1,029,783 | 987,879 | 2,059,112 | 1,965,213 |
Expenses: | ||||
Policy benefits | 556,415 | 531,485 | 1,114,191 | 1,056,458 |
Required interest on reserves | 0 | 0 | 0 | 0 |
Required interest on DAC | 0 | 0 | 0 | 0 |
Amortization of acquisition costs | 122,121 | 117,245 | 248,029 | 236,051 |
Commissions, premium taxes, and non-deferred acquisition costs | 65,032 | 62,854 | 130,148 | 124,456 |
Insurance administrative expense | 51,412 | 48,413 | 103,325 | 96,881 |
Parent expense | 2,665 | 2,379 | 4,898 | 4,405 |
Stock compensation expense | 8,351 | 7,054 | 16,546 | 13,989 |
Interest expense | 21,156 | 23,110 | 41,855 | 42,479 |
Total benefits and expenses | 827,152 | 792,540 | 1,658,992 | 1,574,719 |
Subtotal | 202,631 | 195,339 | 400,120 | 390,494 |
Non-operating items | 2,094 | 0 | 2,094 | 0 |
Measure of segment profitability (pretax) | 204,725 | 195,339 | 402,214 | 390,494 |
Deduct applicable income taxes | (62,543) | (58,649) | (121,361) | (120,420) |
Segment profits after tax | 142,182 | 136,690 | 280,853 | 270,074 |
Add back income taxes applicable to segment profitability | 62,543 | 58,649 | 121,361 | 120,420 |
Add (deduct) realized investment gains (losses) | (705) | 4,005 | (6,453) | 4,298 |
Add (deduct) administrative settlements | (2,094) | (2,094) | ||
Pretax income from continuing operations per Condensed Consolidated Statements of Operations | 201,926 | 199,344 | 393,667 | 394,792 |
Operating Segments [Member] | Life [Member] | ||||
Revenue: | ||||
Premium | 573,836 | 548,590 | 1,149,673 | 1,092,741 |
Total revenue | 573,836 | 548,590 | 1,149,673 | 1,092,741 |
Expenses: | ||||
Policy benefits | 388,765 | 369,342 | 779,844 | 732,202 |
Required interest on reserves | (150,652) | (143,625) | (299,477) | (285,636) |
Required interest on DAC | 46,213 | 44,476 | 92,149 | 88,678 |
Amortization of acquisition costs | 98,473 | 93,663 | 198,378 | 188,202 |
Commissions, premium taxes, and non-deferred acquisition costs | 43,708 | 41,130 | 87,346 | 81,391 |
Total benefits and expenses | 426,507 | 404,986 | 858,240 | 804,837 |
Subtotal | 147,329 | 143,604 | 291,433 | 287,904 |
Measure of segment profitability (pretax) | 147,329 | 143,604 | 291,433 | 287,904 |
Operating Segments [Member] | Health [Member] | ||||
Revenue: | ||||
Premium | 242,775 | 237,252 | 487,566 | 472,949 |
Total revenue | 242,775 | 237,252 | 487,566 | 472,949 |
Expenses: | ||||
Policy benefits | 156,579 | 153,261 | 314,330 | 306,036 |
Required interest on reserves | (19,267) | (18,251) | (38,242) | (36,327) |
Required interest on DAC | 5,840 | 5,766 | 11,649 | 11,508 |
Amortization of acquisition costs | 23,016 | 22,102 | 48,343 | 44,467 |
Commissions, premium taxes, and non-deferred acquisition costs | 21,351 | 21,753 | 42,853 | 43,129 |
Total benefits and expenses | 187,519 | 184,631 | 378,933 | 368,813 |
Subtotal | 55,256 | 52,621 | 108,633 | 104,136 |
Measure of segment profitability (pretax) | 55,256 | 52,621 | 108,633 | 104,136 |
Operating Segments [Member] | Annuity [Member] | ||||
Revenue: | ||||
Premium | 3 | 13 | 6 | 25 |
Total revenue | 3 | 13 | 6 | 25 |
Expenses: | ||||
Policy benefits | 8,977 | 8,882 | 17,923 | 18,220 |
Required interest on reserves | (12,394) | (12,506) | (24,812) | (25,598) |
Required interest on DAC | 174 | 205 | 352 | 429 |
Amortization of acquisition costs | 632 | 1,480 | 1,308 | 3,382 |
Commissions, premium taxes, and non-deferred acquisition costs | 7 | 11 | 18 | 20 |
Total benefits and expenses | (2,604) | (1,928) | (5,211) | (3,547) |
Subtotal | 2,607 | 1,941 | 5,217 | 3,572 |
Measure of segment profitability (pretax) | 2,607 | 1,941 | 5,217 | 3,572 |
Operating Segments [Member] | Investment [Member] | ||||
Revenue: | ||||
Net investment income | 212,776 | 201,642 | 421,058 | 398,695 |
Total revenue | 212,776 | 201,642 | 421,058 | 398,695 |
Expenses: | ||||
Required interest on reserves | 182,313 | 174,382 | 362,531 | 347,561 |
Required interest on DAC | (52,227) | (50,447) | (104,150) | (100,615) |
Interest expense | 21,156 | 23,110 | 41,855 | 42,479 |
Total benefits and expenses | 151,242 | 147,045 | 300,236 | 289,425 |
Subtotal | 61,534 | 54,597 | 120,822 | 109,270 |
Measure of segment profitability (pretax) | 61,534 | 54,597 | 120,822 | 109,270 |
Operating Segments [Member] | Other & Corporate [Member] | ||||
Revenue: | ||||
Other income | 427 | 422 | 878 | 887 |
Total revenue | 427 | 422 | 878 | 887 |
Expenses: | ||||
Insurance administrative expense | 51,412 | 48,413 | 103,325 | 96,881 |
Parent expense | 2,665 | 2,379 | 4,898 | 4,405 |
Stock compensation expense | 8,351 | 7,054 | 16,546 | 13,989 |
Total benefits and expenses | 62,428 | 57,846 | 124,769 | 115,275 |
Subtotal | (62,001) | (57,424) | (123,891) | (114,388) |
Measure of segment profitability (pretax) | (62,001) | (57,424) | (123,891) | (114,388) |
Adjustments [Member] | ||||
Revenue: | ||||
Other income | (34) | (40) | (69) | (84) |
Total revenue | (34) | (40) | (69) | (84) |
Expenses: | ||||
Policy benefits | 2,094 | 2,094 | ||
Commissions, premium taxes, and non-deferred acquisition costs | (34) | (40) | (69) | (84) |
Total benefits and expenses | 2,060 | (40) | 2,025 | (84) |
Subtotal | (2,094) | 0 | (2,094) | 0 |
Non-operating items | 2,094 | 0 | 2,094 | 0 |
Measure of segment profitability (pretax) | $ 0 | $ 0 | $ 0 | $ 0 |
Business Segments - Analysis of
Business Segments - Analysis of Profitability by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Pretax operating income | $ 204,725 | $ 195,339 | $ 402,214 | $ 390,494 |
Applicable taxes | (62,543) | (58,649) | (121,361) | (120,420) |
Segment profits after tax | 142,182 | 136,690 | 280,853 | 270,074 |
Discontinued operations (after tax) | (90) | (865) | (3,727) | (10,406) |
Net operating income | 142,092 | 135,825 | 277,126 | 259,668 |
Reconciling items, net of tax: | ||||
Realized gains (losses)—investments (after tax) | (458) | 2,604 | (1,951) | 2,794 |
Administrative settlements (after tax) | (1,361) | 0 | (1,361) | 0 |
Net income | 140,273 | 138,429 | 273,814 | 262,462 |
Operating Segments [Member] | Life insurance underwriting margin [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pretax operating income | 147,329 | 143,604 | 291,433 | 287,904 |
Operating Segments [Member] | Health insurance underwriting margin [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pretax operating income | 55,256 | 52,621 | 108,633 | 104,136 |
Operating Segments [Member] | Annuity underwriting margin [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pretax operating income | 2,607 | 1,941 | 5,217 | 3,572 |
Operating Segments [Member] | Excessive investment income [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pretax operating income | 61,534 | 54,597 | 120,822 | 109,270 |
Operating Segments [Member] | Other and corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pretax operating income | (62,001) | (57,424) | (123,891) | (114,388) |
Operating Segments [Member] | Other and corporate [Member] | Other income [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pretax operating income | 427 | 422 | 878 | 887 |
Operating Segments [Member] | Other and corporate [Member] | Administrative expense [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pretax operating income | (51,412) | (48,413) | (103,325) | (96,881) |
Operating Segments [Member] | Other and corporate [Member] | Corporate and adjustments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pretax operating income | $ (11,016) | $ (9,433) | $ (21,444) | $ (18,394) |