Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | TORCHMARK CORP | |
Entity Central Index Key | 320,335 | |
Trading Symbol | TMK | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 113,557,007 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investments: | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2018—$15,274,490; 2017—$14,995,101) | $ 16,635,885 | $ 16,969,325 |
Policy loans | 532,383 | 529,529 |
Other long-term investments (includes: 2018—$106,151; 2017—$0, under the fair value option) | 168,621 | 108,559 |
Short-term investments | 80,023 | 127,071 |
Total investments | 17,416,912 | 17,734,484 |
Cash | 88,615 | 118,563 |
Accrued investment income | 240,817 | 233,453 |
Other receivables | 396,379 | 391,775 |
Deferred acquisition costs | 4,002,181 | 3,958,063 |
Goodwill | 441,591 | 441,591 |
Other assets | 527,258 | 528,536 |
Assets related to discontinued operations | 68,590 | 68,520 |
Total assets | 23,182,343 | 23,474,985 |
Liabilities: | ||
Future policy benefits | 13,571,585 | 13,439,472 |
Unearned and advance premiums | 67,058 | 61,430 |
Policy claims and other benefits payable | 333,760 | 333,294 |
Other policyholders' funds | 97,468 | 97,635 |
Total policy liabilities | 14,069,871 | 13,931,831 |
Current and deferred income taxes payable | 1,216,687 | 1,312,002 |
Other liabilities | 528,877 | 489,609 |
Short-term debt | 365,156 | 328,067 |
Long-term debt (estimated fair value: 2018—$1,202,444; 2017—$1,228,392) | 1,131,215 | 1,132,201 |
Liabilities related to discontinued operations | 50,236 | 49,854 |
Total liabilities | 17,362,042 | 17,243,564 |
Commitments and Contingencies (Note 6) | ||
Shareholders’ equity: | ||
Preferred stock, par value $1 per share—Authorized 5,000,000 shares; outstanding: -0- in 2018 and 2017 | 0 | 0 |
Common stock, par value $1 per share—Authorized 320,000,000 shares; outstanding: (2018—124,218,183 issued, less 10,396,436 held in treasury and 2017—124,218,183 issued, less 9,625,104 held in treasury) | 124,218 | 124,218 |
Additional paid-in capital | 508,941 | 508,476 |
Accumulated other comprehensive income | 940,199 | 1,424,274 |
Retained earnings | 4,955,608 | 4,806,208 |
Treasury stock, at cost | (708,665) | (631,755) |
Total shareholders’ equity | 5,820,301 | 6,231,421 |
Total liabilities and shareholders’ equity | $ 23,182,343 | $ 23,474,985 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fixed maturities, available for sale, amortized cost | $ 15,274,490 | $ 14,995,101 |
Long-term debt, fair value | $ 1,202,444 | $ 1,228,392 |
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) | 124,218,183 | 124,218,183 |
Common stock, shares held in treasury (in shares) | 10,396,436 | 9,625,104 |
Fair Value Option [Member] | ||
Fair value option | $ 106,151 | |
Partnership Interest [Member] | Fair Value Option [Member] | ||
Fair value option | $ 106,000 | $ 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue: | ||
Life premium | $ 598,303 | $ 575,837 |
Health premium | 251,798 | 244,791 |
Other premium | 5 | 3 |
Total premium | 850,106 | 820,631 |
Net investment income | 218,084 | 208,282 |
Realized investment gains (losses) | 1,951 | (5,748) |
Other income | 295 | 416 |
Total revenue | 1,070,436 | 1,023,581 |
Benefits and expenses: | ||
Life policyholder benefits | 400,581 | 391,079 |
Health policyholder benefits | 160,619 | 157,751 |
Other policyholder benefits | 8,689 | 8,946 |
Total policyholder benefits | 569,889 | 557,776 |
Amortization of deferred acquisition costs | 129,620 | 125,908 |
Commissions, premium taxes, and non-deferred acquisition costs | 69,639 | 65,116 |
Other operating expense | 66,824 | 62,341 |
Interest expense | 21,622 | 20,699 |
Total benefits and expenses | 857,594 | 831,840 |
Income before income taxes | 212,842 | 191,741 |
Income taxes | (39,131) | (54,563) |
Income from continuing operations | 173,711 | 137,178 |
Income (loss) from discontinued operations, net of tax | (111) | (3,637) |
Net income | $ 173,600 | $ 133,541 |
Basic net income (loss) per common share: | ||
Continuing operations (in dollars per share) | $ 1.52 | $ 1.16 |
Discontinued operations (in dollars per share) | 0 | (0.03) |
Total basic net income per common share (in dollars per share) | 1.52 | 1.13 |
Diluted net income (loss) per common share: | ||
Continuing operations (in dollars per share) | 1.49 | 1.14 |
Discontinued operations (in dollars per share) | 0 | (0.03) |
Total diluted net income per common share (in dollars per share) | 1.49 | 1.11 |
Dividends declared per common share (in dollars per share) | $ 0.16 | $ 0.15 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net income | $ 173,600 | $ 133,541 |
Investments: | ||
Total unrealized investment gains (losses) | (615,682) | 215,066 |
Less applicable tax (expense) benefit | 129,289 | (75,323) |
Unrealized investment gains (losses), net of tax | (486,393) | 139,743 |
Deferred acquisition costs: | ||
Unrealized gains (losses) attributable to deferred acquisition costs | 450 | (770) |
Less applicable tax (expense) benefit | (94) | 270 |
Unrealized gains (losses) attributable to deferred acquisition costs, net of tax | 356 | (500) |
Foreign exchange translation: | ||
Foreign exchange translation adjustments, other than securities | (1,299) | 4,214 |
Less applicable tax (expense) benefit | 276 | (428) |
Foreign exchange translation adjustments, other than securities, net of tax | (1,023) | 3,786 |
Pension: | ||
Amortization of pension costs | 3,778 | 3,109 |
Experience gain (loss) | 0 | 371 |
Pension adjustments | 3,778 | 3,480 |
Less applicable tax (expense) benefit | (793) | (1,218) |
Pension adjustments, net of tax | 2,985 | 2,262 |
Other comprehensive income (loss) | (484,075) | 145,291 |
Comprehensive income (loss) | (310,475) | 278,832 |
Securities [Member] | ||
Investments: | ||
Unrealized holding gains (losses) arising during period | (611,548) | 215,527 |
Reclassification adjustment for (gains) losses on securities included in net income | (1,386) | (1,035) |
Reclassification adjustment for amortization of (discount) and premium | 690 | (437) |
Foreign exchange adjustment on securities recorded at fair value | (585) | 15 |
Unrealized gains (losses) on securities | (612,829) | 214,070 |
Other Investments [Member] | ||
Investments: | ||
Unrealized gains (losses) on other investments | $ (2,853) | $ 996 |
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, 2016 | $ 4,566,861 | $ 0 | $ 127,218 | $ 490,421 | $ 577,574 | $ 3,890,798 | $ (519,150) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Comprehensive income (loss) | 278,832 | 145,291 | 133,541 | |||||
Common dividends declared ($0.15 in 2017 and $0.16 in 2018) | (17,567) | (17,567) | ||||||
Acquisition of treasury stock | (113,719) | (113,719) | ||||||
Stock-based compensation | 8,195 | 1,351 | (606) | 7,450 | ||||
Exercise of stock options | 22,225 | (11,501) | 33,726 | |||||
Stockholders' equity, ending balance at Mar. 31, 2017 | 4,744,827 | 0 | 127,218 | 491,772 | 722,865 | 3,994,665 | (591,693) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Adoption of ASU 2016-01 | [1] | 4,896 | 4,896 | |||||
Stockholders' equity, beginning balance at Dec. 31, 2017 | 6,231,421 | 0 | 124,218 | 508,476 | 1,424,274 | 4,806,208 | (631,755) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Comprehensive income (loss) | (310,475) | (484,075) | 173,600 | |||||
Common dividends declared ($0.15 in 2017 and $0.16 in 2018) | (18,216) | (18,216) | ||||||
Acquisition of treasury stock | (109,954) | (109,954) | ||||||
Stock-based compensation | 9,060 | 465 | (1,803) | 10,398 | ||||
Exercise of stock options | 13,569 | (9,077) | 22,646 | |||||
Stockholders' equity, ending balance at Mar. 31, 2018 | $ 5,820,301 | $ 0 | $ 124,218 | $ 508,941 | $ 940,199 | $ 4,955,608 | $ (708,665) | |
[1] | See further discussion in Note 2—New Accounting Standards and Note 4—Investments. |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per common share (in dollars per share) | $ 0.16 | $ 0.15 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Cash Flows [Abstract] | ||
Cash provided from operating activities | $ 382,389 | $ 460,756 |
Investments sold or matured: | ||
Fixed maturities available for sale—matured, called, and repaid | 74,019 | 108,899 |
Other long-term investments | 0 | 3,071 |
Total long-term investments sold or matured | 74,019 | 111,970 |
Acquisition of investments: | ||
Fixed maturities—available for sale | (358,753) | (461,324) |
Other long-term investments | (53,853) | 0 |
Total investments acquired | (412,606) | (461,324) |
Net (increase) decrease in policy loans | (2,854) | (2,599) |
Net (increase) decrease in short-term investments | 47,048 | (48,950) |
Additions to property and equipment | (11,966) | (3,978) |
Sale of other assets | 0 | 18 |
Investment in low-income housing interests | (7,518) | (5,875) |
Cash provided from (used for) investing activities | (313,877) | (410,738) |
Cash provided from (used for) financing activities: | ||
Issuance of common stock | 13,569 | 22,225 |
Cash dividends paid to shareholders | (17,194) | (16,503) |
Repayment of debt | (625) | 0 |
Net borrowing (repayment) of commercial paper | 36,464 | 61,919 |
Acquisition of treasury stock | (109,954) | (113,719) |
Net receipts (payments) from deposit-type product | (25,603) | (21,174) |
Cash provided from (used for) financing activities | (103,343) | (67,252) |
Effect of foreign exchange rate changes on cash | 4,883 | 2,825 |
Net increase (decrease) in cash | (29,948) | (14,409) |
Cash at beginning of year | 118,563 | 76,163 |
Cash at end of period | $ 88,615 | $ 61,754 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation: The accompanying condensed consolidated financial statements of Torchmark Corporation (Torchmark or alternatively, the Company) have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the annual disclosures required by accounting principles generally accepted in the United States of America (GAAP). However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial position at March 31, 2018 , and the condensed consolidated results of operations, comprehensive income, and cash flows for the periods ended March 31, 2018 and 2017 . 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 26, 2018. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards Accounting Pronouncements Adopted in the Current Year: ASU 2016-01: In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 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, the guidance 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 or equity method. This standard became effective for the Company on January 1, 2018. On January 1, 2018, the Company adopted this standard on a modified retrospective basis for two types of investments: equity securities and limited partnerships. The adoption resulted in a $4.9 million after tax positive adjustment to the opening balance of retained earnings. Subsequent to the adoption, the Company elected to measure its investment in the limited partnership at fair value in accordance with the fair value option for financial instruments with changes recognized in "Realized Investment Gains (Losses)" in the Condensed Consolidated Statements of Operations. As of March 31, 2018, the fair value balance of the limited partnerships were $106 million . See Note 4—Investments for further discussion. ASU 2016-15: In August 2016, the FASB issued ASU 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 became effective on January 1, 2018 and did not have a significant impact to the classification on the Condensed Statement of Cash Flows . ASU 2016-16: In October 2016, the FASB issued ASU 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 guidance is applied on a modified retrospective approach and became effective on January 1, 2018. This adoption did not have a significant impact on the financial statements. ASU 2017-07: In March 2017, the FASB issued ASU 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 became 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 will record approximately $3.5 million in additional expense to the 2018 Condensed Consolidated Statements of Operations due to the elimination of the ability to capitalize a portion of the benefit costs. For the three months ended March 31, 2018, the Company recorded $831 thousand in additional expense. ASU 2017-09: In May 2017, the FASB issued ASU 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 became effective on January 1, 2018. The adoption had no significant impact on the financial statements as modifications to stock compensation are infrequent. ASU 2018-02 : In February 2018, the FASB issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (AOCI) . This guidance was issued to allow the reclassification of taxes from AOCI to retained earnings as a result of the reduction in corporate income tax rates due to the Tax Cuts and Jobs Act of 2017 (Tax Legislation). Current accounting requires the effect of changes in tax rates used to measure deferred tax assets and liabilities to be reported in net income as of the date of enactment even though deferred taxes were previously recognized in AOCI (stranded taxes). This guidance, however, allows a company to elect to reclassify the stranded taxes in AOCI to retained earnings and is effective for years beginning after December 15, 2018, with early adoption permitted. The Company elected to early adopt this guidance resulting in a reclassification of $252 million from AOCI to retained earnings for the period ended December 31, 2017. Accounting Pronouncements Not Yet Adopted ASU 2016-02: In February 2016, the FASB issued ASU 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 Note 15—Commitments and Contingencies of the 2017 10-K for consideration of the noncancelable operating lease commitments. The Company is not a lessor. ASU 2016-13: In June 2016, the FASB issued ASU 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 by use of an allowance rather than a direct write-down. 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 current available-for-sale portfolio. ASU 2017-04: In January 2017, the FASB issued ASU 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 which required a hypothetical purchase price allocation. It will become effective on January 1, 2020 and should be applied on a prospective basis. This adoption will not have an impact to the financial statements. ASU 2017-08: In March 2017, the FASB issued ASU 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. |
Supplemental Information about
Supplemental Information about Changes to Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Supplemental Information about Changes to Accumulated Other Comprehensive Income | Supplemental Information about Changes to Accumulated Other Comprehensive Income An analysis of the change in balance by component of Accumulated Other Comprehensive Income is as follows for the three month periods ended March 31, 2018 and 2017 . Components of Accumulated Other Comprehensive Income Three Months Ended March 31, 2018 Available Deferred Foreign Pension Total Balance at January 1, 2018 $ 1,569,289 $ (8,547 ) $ 16,302 $ (152,770 ) $ 1,424,274 Other comprehensive income (loss) before reclassifications, net of tax (485,843 ) 356 (1,023 ) — (486,510 ) Reclassifications, net of tax (550 ) — — 2,985 2,435 Other comprehensive income (loss) (486,393 ) 356 (1,023 ) 2,985 (484,075 ) Balance at March 31, 2018 $ 1,082,896 $ (8,191 ) $ 15,279 $ (149,785 ) $ 940,199 Three Months Ended March 31, 2017 Available Deferred Foreign Pension Total Balance at January 1, 2017 $ 692,314 $ (6,682 ) $ 4,967 $ (113,025 ) $ 577,574 Other comprehensive income (loss) before reclassifications, net of tax 140,700 (500 ) 3,786 241 144,227 Reclassifications, net of tax (957 ) — — 2,021 1,064 Other comprehensive income (loss) 139,743 (500 ) 3,786 2,262 145,291 Balance at March 31, 2017 $ 832,057 $ (7,182 ) $ 8,753 $ (110,763 ) $ 722,865 Reclassifications out of Accumulated Other Comprehensive Income are presented below for the three month periods ended March 31, 2018 and 2017 . Reclassification Adjustments Three Months Ended Affected line items in the Statement of Operations 2018 2017 Unrealized investment gains (losses) on available for sale assets: Realized (gains) losses $ (1,386 ) $ (1,035 ) Realized investment gains (losses) Amortization of (discount) premium 690 (437 ) Net investment income Total before tax (696 ) (1,472 ) Tax 146 515 Income taxes Total after tax (550 ) (957 ) Pension adjustments: Amortization of prior service cost 119 119 Other operating expense Amortization of actuarial gain (loss) 3,659 2,990 Other operating expense Total before tax 3,778 3,109 Tax (793 ) (1,088 ) Income taxes Total after tax 2,985 2,021 Total reclassifications (after tax) $ 2,435 $ 1,064 |
Investments
Investments | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Portfolio Composition : A summary of fixed maturities available for sale by cost or amortized cost and estimated fair value at March 31, 2018 and December 31, 2017 is as follows: March 31, 2018: 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 $ 394,548 $ 7,127 $ (2,397 ) $ 399,278 3 States, municipalities, and political subdivisions 1,219,749 113,694 (508 ) 1,332,935 8 Foreign governments 20,541 1,740 — 22,281 — Corporates, by sector: Financial 3,329,170 349,415 (31,568 ) 3,647,017 22 Utilities 1,963,247 296,546 (6,482 ) 2,253,311 14 Energy 1,614,917 175,301 (35,069 ) 1,755,149 11 Other corporate sectors 6,150,540 489,984 (65,084 ) 6,575,440 39 Total corporates 13,057,874 1,311,246 (138,203 ) 14,230,917 86 Collateralized debt obligations 58,473 23,518 (6,467 ) 75,524 — Other asset-backed securities 147,511 3,263 (362 ) 150,412 1 Redeemable preferred stocks, by sector: Financial 347,254 51,250 (3,783 ) 394,721 2 Utilities 28,540 1,598 (321 ) 29,817 — Total redeemable preferred stocks 375,794 52,848 (4,104 ) 424,538 2 Total fixed maturities $ 15,274,490 $ 1,513,436 $ (152,041 ) $ 16,635,885 100 (1) Amounts reported on the balance sheet. (2) At fair value. December 31, 2017: Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (1) % of Total Fixed Maturities (2) Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 390,646 $ 18,173 $ (1,373 ) $ 407,446 2 States, municipalities, and political subdivisions 1,091,960 127,890 (135 ) 1,219,715 7 Foreign governments 20,236 1,782 — 22,018 — Corporates, by sector: — Financial 3,282,526 475,961 (23,392 ) 3,735,095 22 Utilities 1,955,737 369,406 (1,298 ) 2,323,845 14 Energy 1,619,349 226,140 (25,392 ) 1,820,097 11 Other corporate sectors 6,065,803 747,612 (20,616 ) 6,792,799 40 Total corporates 12,923,415 1,819,119 (70,698 ) 14,671,836 87 Collateralized debt obligations 59,150 20,084 (7,653 ) 71,581 — Other asset-backed securities 144,520 4,835 — 149,355 1 Redeemable preferred stocks, by sector: Financial 336,621 62,892 (2,727 ) 396,786 3 Utilities 28,553 2,132 (97 ) 30,588 — Total redeemable preferred stocks 365,174 65,024 (2,824 ) 427,374 3 Total fixed maturities $ 14,995,101 $ 2,056,907 $ (82,683 ) $ 16,969,325 100 (1) Amounts reported on the balance sheet. (2) At fair value. A schedule of fixed maturities available for sale by contractual maturity date at March 31, 2018 is shown below on an amortized cost basis and on a fair value basis. Actual maturity dates could differ from contractual maturities due to call or prepayment provisions. March 31, 2018 Amortized Fair Value Fixed maturities available for sale: Due in one year or less $ 106,827 $ 107,973 Due after one year through five years 736,487 766,321 Due after five years through ten years 1,490,930 1,640,983 Due after ten years through twenty years 5,000,345 5,690,933 Due after twenty years 7,733,027 8,202,784 Mortgage-backed and asset-backed securities 206,874 226,891 $ 15,274,490 $ 16,635,885 There were no sales of fixed maturities available for sale in either quarter of March 31, 2018 or 2017. Fair Value Measurements : The following tables represents the fair value of fixed maturities available for sale measured on a recurring basis at March 31, 2018 and December 31, 2017 . Fair Value Measurements at March 31, 2018 using: Description Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 399,278 $ — $ 399,278 States, municipalities, and political subdivisions — 1,332,935 — 1,332,935 Foreign governments — 22,281 — 22,281 Corporates, by sector: Financial — 3,586,007 61,010 3,647,017 Utilities — 2,103,085 150,226 2,253,311 Energy — 1,715,081 40,068 1,755,149 Other corporate sectors — 6,257,944 317,496 6,575,440 Total corporates — 13,662,117 568,800 14,230,917 Collateralized debt obligations — — 75,524 75,524 Other asset-backed securities — 137,225 13,187 150,412 Redeemable preferred stocks, by sector: Financial — 394,721 — 394,721 Utilities — 29,817 — 29,817 Total redeemable preferred stocks — 424,538 — 424,538 Total fixed maturities $ — $ 15,978,374 $ 657,511 $ 16,635,885 Percent of total — % 96.0 % 4.0 % 100.0 % Fair Value Measurements at December 31, 2017 using: Description Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 407,446 $ — $ 407,446 States, municipalities, and political subdivisions 44 1,219,671 — 1,219,715 Foreign governments — 22,018 — 22,018 Corporates, by sector: — Financial — 3,673,089 62,006 3,735,095 Utilities — 2,168,115 155,730 2,323,845 Energy — 1,779,281 40,816 1,820,097 Other corporate sectors — 6,468,541 324,258 6,792,799 Total corporates — 14,089,026 582,810 14,671,836 Collateralized debt obligations — — 71,581 71,581 Other asset-backed securities — 135,306 14,049 149,355 Redeemable preferred stocks, by sector: Financial — 396,786 — 396,786 Utilities — 30,588 — 30,588 Total redeemable preferred stocks — 427,374 — 427,374 Total fixed maturities $ 44 $ 16,300,841 $ 668,440 $ 16,969,325 Percentage of total — % 96.1 % 3.9 % 100.0 % The following tables represent an analysis of changes in fair value measurements using significant unobservable inputs (Level 3) for the three months ended March 31, 2018 and 2017 . Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Three Months Ended March 31, 2018 Asset- Collateralized Corporates (1) Total Balance at January 1, 2018 $ 14,049 $ 71,581 $ 582,810 $ 668,440 Total gains or losses: Included in realized gains/losses — — — — Included in other comprehensive income (749 ) 4,621 (12,233 ) (8,361 ) Acquisitions — — — — Sales — — — — Amortization — 1,201 4 1,205 Other (2) (113 ) (1,879 ) (1,781 ) (3,773 ) Transfers in and/or out of Level 3 (3) — — — — Balance at March 31, 2018 $ 13,187 $ 75,524 $ 568,800 $ 657,511 Percent of total fixed maturities 0.1 % 0.5 % 3.4 % 4.0 % Three Months Ended March 31, 2017 Asset- Collateralized Corporates (1) Total Balance at January 1, 2017 $ — $ 63,503 $ 559,600 $ 623,103 Total gains or losses: Included in realized gains/losses — — — — Included in other comprehensive income — 5,090 6,275 11,365 Acquisitions 14,000 — 21,666 35,666 Sales — — — — Amortization — 1,249 4 1,253 Other (2) — (1,999 ) (1,557 ) (3,556 ) Transfers in and/or out of Level 3 (3) — — — — Balance at March 31, 2017 $ 14,000 $ 67,843 $ 585,988 $ 667,831 Percent of total fixed maturities 0.1 % 0.4 % 3.7 % 4.2 % (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. The following table presents transfers in and out of each of the valuation levels of fair values. Three Months Ended March 31, 2018 2017 In Out Net In Out Net Level 1 $ — $ — $ — $ 4 $ (597 ) $ (593 ) Level 2 — — — 597 (4 ) 593 Level 3 — — — — — — Fair Value Option : As discussed in Note 2—New Accounting Standards , the Company elected the fair value option in the first quarter of 2018, subsequent to the adoption of ASU 2016-01, to record its investment in limited partnerships at fair value with changes recognized in "Realized Investment Gains (Losses)" in the Condensed Consolidated Statements of Operations in accordance with ASC 825 . Dividends received on a semi-annual basis are recorded in Net Investment Income. The limited partnerships are recorded in Other Long-Term Investments on the Condensed Consolidated Balance Sheets . The following table represents the fair value of investments elected for the fair value option method measured on a recurring basis at March 31, 2018, and the changes in fair value for the three months ended March 31, 2018. Fair Value Measurements at March 31, 2018 Changes in Fair Values for the Period for Items Measured at Fair Value Pursuant to Election of the Fair Value Option Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Net Gains and Losses Recognized During the Period Less Net Gains and Losses Recognized due to Sales Total Changes in Fair Values Included in Current-Period Earnings Limited partnership $ — $ 106,151 $ — $ 106,151 $ 560 $ — $ 560 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. Additionally, Torchmark 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 three months ended March 31, 2018 and 2017 , 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 March 31, 2018 327 98 425 As of December 31, 2017 92 102 194 Torchmark’s entire fixed maturity portfolio consisted of 1,529 issues at March 31, 2018 and 1,502 issues at December 31, 2017 . The weighted average quality rating of all unrealized loss positions as of March 31, 2018 was BBB compared with BBB- as of December 31, 2017 . The following tables disclose unrealized investment losses by class and major sector of fixed maturities available for sale at March 31, 2018 and December 31, 2017 for the respective periods of time in a loss position. Torchmark considers these investments to be only temporarily impaired. Analysis of Gross Unrealized Investment Losses At March 31, 2018 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 $ 82,042 $ (1,167 ) $ 43,914 $ (1,230 ) $ 125,956 $ (2,397 ) States, municipalities and political subdivisions 37,278 (495 ) 1,195 (13 ) 38,473 (508 ) Corporates, by sector: Financial 519,675 (12,606 ) 34,166 (2,445 ) 553,841 (15,051 ) Utilities 192,595 (5,154 ) 31,590 (1,328 ) 224,185 (6,482 ) Energy 161,511 (3,730 ) 51,640 (5,137 ) 213,151 (8,867 ) Other corporate sectors 1,185,926 (37,821 ) 156,415 (11,553 ) 1,342,341 (49,374 ) Total corporates 2,059,707 (59,311 ) 273,811 (20,463 ) 2,333,518 (79,774 ) Other asset-backed securities 17,663 (362 ) — — 17,663 (362 ) Redeemable preferred stocks, by sector: Financial 10,322 (516 ) — — 10,322 (516 ) Utilities — — 5,714 (321 ) 5,714 (321 ) Total redeemable preferred stocks 10,322 (516 ) 5,714 (321 ) 16,036 (837 ) Total investment grade securities 2,207,012 (61,851 ) 324,634 (22,027 ) 2,531,646 (83,878 ) Below investment grade securities: Bonds: States, municipalities and political subdivisions 15 — — — 15 — Corporates, by sector: Financial 26,116 (4,665 ) 63,104 (11,852 ) 89,220 (16,517 ) Energy 17,047 (182 ) 63,694 (26,020 ) 80,741 (26,202 ) Other corporate sectors 52,616 (5,819 ) 53,318 (9,891 ) 105,934 (15,710 ) Total corporates 95,779 (10,666 ) 180,116 (47,763 ) 275,895 (58,429 ) Collateralized debt obligations — — 13,533 (6,467 ) 13,533 (6,467 ) Redeemable preferred stocks, by sector: Financial — — 23,830 (3,267 ) 23,830 (3,267 ) Total redeemable preferred stocks — — 23,830 (3,267 ) 23,830 (3,267 ) Total below investment grade securities 95,794 (10,666 ) 217,479 (57,497 ) 313,273 (68,163 ) Total fixed maturities $ 2,302,806 $ (72,517 ) $ 542,113 $ (79,524 ) $ 2,844,919 $ (152,041 ) Analysis of Gross Unrealized Investment Losses At December 31, 2017 Less than Twelve Months Twelve Months or Longer Total Description of Securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fixed maturities available for sale: Investment grade securities: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 34,388 $ (422 ) $ 47,514 $ (951 ) $ 81,902 $ (1,373 ) States, municipalities and political subdivisions 4,561 (21 ) 1,771 (9 ) 6,332 (30 ) Foreign governments — — — — — — Corporates, by sector: Financial 133,080 (652 ) 35,302 (1,429 ) 168,382 (2,081 ) Utilities 48,562 (569 ) 32,345 (729 ) 80,907 (1,298 ) Energy 23,463 (81 ) 67,775 (3,682 ) 91,238 (3,763 ) Metals and mining — — — — — — Other corporate sectors 220,661 (2,312 ) 163,886 (4,257 ) 384,547 (6,569 ) Total corporates 425,766 (3,614 ) 299,308 (10,097 ) 725,074 (13,711 ) Other asset-backed securities — — — — — — Redeemable preferred stocks, by sector: Utilities — — 5,953 (97 ) 5,953 (97 ) Total redeemable preferred stocks — — 5,953 (97 ) 5,953 (97 ) Total investment grade securities 464,715 (4,057 ) 354,546 (11,154 ) 819,261 (15,211 ) Below investment grade securities: States, municipalities and political subdivisions 200 (105 ) — — 200 (105 ) Corporates, by sector: Financial — — 84,432 (21,311 ) 84,432 (21,311 ) Energy 8,114 (104 ) 75,204 (21,525 ) 83,318 (21,629 ) Metals and mining — — — — — — Other corporate sectors 25,334 (5,066 ) 54,383 (8,981 ) 79,717 (14,047 ) Total corporates 33,448 (5,170 ) 214,019 (51,817 ) 247,467 (56,987 ) Collateralized debt obligations — — 12,347 (7,653 ) 12,347 (7,653 ) Redeemable preferred stocks, by sector: Financial — — 24,376 (2,727 ) 24,376 (2,727 ) Total redeemable preferred stocks — — 24,376 (2,727 ) 24,376 (2,727 ) Total below investment grade securities 33,648 (5,275 ) 250,742 (62,197 ) 284,390 (67,472 ) Total fixed maturities $ 498,363 $ (9,332 ) $ 605,288 $ (73,351 ) $ 1,103,651 $ (82,683 ) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In 2017, newly enacted tax legislation revised the corporate income tax rate from 35% to 21% effective January 1, 2018. The change in tax rates was the primary reason for the difference in the Company’s effective tax rate as compared with the first quarter of FY 2017. The effective income tax rate differed from the expected rate as shown below: Three Months Ended March 31, 2018 % 2017 % Expected income taxes $ 44,697 21.0 $ 67,109 35.0 Increase (reduction) in income taxes resulting from: Low income housing investments (3,325 ) (1.6 ) (4,649 ) (2.4 ) Share-based awards (2,199 ) (1.0 ) (5,673 ) (3.0 ) Other (42 ) — (2,224 ) (1.2 ) Income tax expense (benefit) from continuing operations $ 39,131 18.4 $ 54,563 28.4 As of December 31, 2017, the Company recorded $877 million of tax benefits in net income as a result of re-measuring its deferred tax assets and liabilities using the lower corporate tax rate as of the legislation’s enactment date. The Company was able to determine that the adjustment recorded in 2017 was a reasonable estimate of the impact of the tax legislation in accordance with SAB 118. However, the Company has not completed its analysis and will continue to analyze relevant information to complete the accounting for income taxes which may result in an adjustment to tax expense in 2018. The accounting is expected to be complete when the 2017 U.S. corporate income tax returns are filed in 2018. The Company did not make any adjustments to this estimate for the period ended March 31, 2018 . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation : 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. On February 1, 2018, putative class action litigation was filed against American Income Life Insurance Company in U.S. District Court for the Northern District of Texas, Dallas Division ( Bruce v. American Income Life Insurance Company, et al. , Case No. 3:18-cv-00258-G). The plaintiff, a former insurance sales agent of American Income who is suing on behalf of all current and former American Income sales agents contracted through State General Agent Stephen Jubrey’s agency office at any time since January 31, 2015 through the final disposition of this matter, asserts that such agents are employees rather than independent contractors as they are classified by American Income. He alleges failure to pay minimum wages, overtime wages and other applicable monies in accordance with the Fair Labor Standards Act. The plaintiff seeks, in a jury trial, actual and punitive damages, pre- and post-judgment interest, attorney fees, costs and other relief, including injunctive relief. On February 27, 2018, the Company filed a motion to compel arbitration of this matter and is awaiting the court’s decision as to the same. 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. Guarantees: Torchmark has guaranteed letters of credit in connection with its credit facility with a group of banks. The letters of credit were issued by TMK Re, Ltd., a wholly-owned subsidiary, to secure TMK Re, Ltd.’s obligation for claims on certain policies reinsured by TMK Re, Ltd. that were sold by other Torchmark insurance companies. These letters of credit facilitate TMK Re, Ltd.’s ability to reinsure the business of Torchmark’s insurance carriers. The agreement expires in 2021. The maximum amount of letters of credit available is $250 million . Torchmark would be liable to the extent that TMK Re, Ltd. does not pay the reinsured party. On March 14, 2018, the letters of credit were amended to reduce the current amount outstanding to $155 million from $177 million as of December 31, 2017. |
Liability for Unpaid Claims
Liability for Unpaid Claims | 3 Months Ended |
Mar. 31, 2018 | |
Insurance [Abstract] | |
Liability for Unpaid Claims | Liability for Unpaid Claims Activity in the liability for unpaid health claims is summarized as follows: Three Months Ended 2018 2017 Balance at beginning of period $ 146,865 $ 143,128 Incurred related to: Current year 134,542 135,377 Prior years (5,001 ) (4,024 ) Total incurred 129,541 131,353 Paid related to: Current year 55,130 54,241 Prior years 78,722 77,555 Total paid 133,852 131,796 Balance at end of period $ 142,554 $ 142,685 Below is the reconciliation of the liability for "Policy claims and other benefits payable" in the Condensed Consolidated Balance Sheets . March 31, December 31, 2017 Policy claims and other benefits payable: Life insurance $ 191,206 $ 186,429 Health insurance 142,554 146,865 Total $ 333,760 $ 333,294 |
Postretirement Benefit Plans
Postretirement Benefit Plans | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Postretirement Benefit Plans | Postretirement Benefits The following table presents a summary of post-retirement benefit costs by component. Components of Post-Retirement Benefit Costs Three Months Ended March 31, Pension Benefits Other Benefits 2018 2017 2018 2017 Service cost $ 5,277 $ 4,487 $ — $ — Interest cost 5,493 5,550 228 250 Expected return on assets (6,363 ) (5,899 ) — — Amortization: Prior service cost 119 119 — — Actuarial (gain)/loss 3,636 2,951 23 39 Direct recognition of expense — — 140 96 Net periodic benefit cost $ 8,162 $ 7,208 $ 391 $ 385 The following tables present the assets of Torchmark’s defined benefit pension plans for the years ended March 31, 2018 and December 31, 2017 . Pension Assets by Component at March 31, 2018 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Amount % to Total Corporate bonds: Financial $ $ 41,709 $ $ 41,709 11 Utilities 44,870 44,870 12 Energy 23,846 23,846 7 Other corporates 62,666 62,666 17 Total corporate bonds — 173,091 — 173,091 47 Exchange traded fund (1) 162,980 162,980 45 Other bonds 249 249 — Other long-term investments 2,439 2,439 1 Guaranteed annuity contract (2) 21,322 21,322 6 Short-term investments 2,070 2,070 — Other 3,623 3,623 1 Grand Total $ 168,673 $ 197,101 $ — $ 365,774 100 (1) A fund including marketable securities that mirror the S&P 500 index. (2) Representing a guaranteed annuity contract issued by Torchmark's subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Pension Plan. Pension Assets by Component at December 31, 2017 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Amount % to Total Corporate bonds: Financial $ $ 43,451 $ $ 43,451 12 Utilities 46,144 46,144 12 Energy 25,023 25,023 7 Other corporates 65,888 65,888 17 Total corporate bonds — 180,506 — 180,506 48 Exchange traded fund (1) 164,351 164,351 43 Other bonds 256 256 — Other long-term investments 2,304 2,304 1 Guaranteed annuity contract (2) 21,202 21,202 6 Short-term investments 3,984 3,984 1 Other 5,021 5,021 1 Grand Total $ 173,356 $ 204,268 $ — $ 377,624 100 (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 March 31, 2018 and December 31, 2017 . Pension Liability March 31, December 31, 2017 Funded defined benefit pension $ 509,526 $ 518,140 SERPs (1) 84,828 84,465 Pension Benefit Obligation $ 594,354 $ 602,605 (1) Supplemental executive retirement plan (SERP). The following table includes information regarding the SERPs at March 31, 2018 and December 31, 2017 . March 31, December 31, 2017 Premiums paid for insurance coverage $ 1,047 $ 2,050 Total investments: Company owned life insurance $ 41,608 $ 40,273 Exchange traded funds 53,598 55,442 $ 95,206 $ 95,715 Liability: Active plan $ 82,200 $ 81,457 Closed plan 2,628 3,008 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share A reconciliation of basic and diluted weighted-average shares outstanding is as follows: Three Months Ended March 31, 2018 2017 Basic weighted average shares outstanding 114,179,084 117,770,474 Weighted average dilutive options outstanding 2,570,418 2,659,242 Diluted weighted average shares outstanding 116,749,502 120,429,716 Antidilutive shares 535,143 625,855 |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2018 | |
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. 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 net policy benefits and expenses. Management believes this presentation facilitates a more meaningful analysis of the Company’s underwriting and investment performance as the underwriting results are based on premiums, claims, and expenses and are not affected by unanticipated fluctuations in investment yields. As noted, Torchmark’s core operations are insurance and investment management. The insurance segments issue policies for which premiums are collected for the eventual payment of policy benefits. In addition to policy benefits, operating expenses are incurred including acquisition costs, administrative expenses, and taxes. Because life and health contracts can be long term, premium receipts in excess of current expenses are invested. Investment activities, conducted by the investment segment, focus on seeking quality investments with a yield and term appropriate to support the insurance product obligations. These investments generally consist of fixed maturities, and, over the long term, the expected yields are taken into account when setting insurance premium rates and product profitability expectations. As a result, fixed maturities are generally held for long periods to support the liabilities, and Torchmark generally expects to hold investments until maturity. However, dispositions of investments occur from time to time, generally for reasons such as credit concerns, calls by issuers, or other factors. Since Torchmark does not actively trade investments, realized gains and losses from the disposition and write down of investments are generally incidental to operations and are not considered a material factor in insurance pricing or product profitability. While from time to time these realized gains and losses could be significant to net income in the period in which they occur, they generally have a limited effect on the yield of the total investment portfolio. Further, because the proceeds of the disposals are reinvested in the portfolio, the disposals have little effect on the size of the portfolio and the income from the reinvestments is included in net investment income. Therefore, management removes realized investment gains and losses from results of core operations when evaluating the performance of the Company. For this reason, these gains and losses are excluded from Torchmark’s operating segments. Torchmark accounts for its stock options and restricted stock under current accounting guidance requiring stock options and stock grants to be expensed based on fair value at the time of grant. Management considers stock compensation expense to be an expense of the Parent Company. Therefore, stock compensation expense is treated as a corporate expense in Torchmark’s segment analysis. The following tables set forth a reconciliation of Torchmark’s revenues and operations by segment to its pretax income and each significant line item in its Condensed Consolidated Statements of Operations . Reconciliation of Segment Operating Information to the Condensed Consolidated Statement of Operations Three Months Ended March 31, 2018 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium $ 598,303 $ 251,798 $ 5 $ 850,106 Net investment income $ 218,084 218,084 Other income $ 323 $ (28 ) (2) 295 Total revenue 598,303 251,798 5 218,084 323 (28 ) 1,068,485 Expenses: Policy benefits 400,581 160,619 8,689 569,889 Required interest on reserves (156,214 ) (20,404 ) (12,017 ) 188,635 — Required interest on DAC 47,944 6,013 153 (54,110 ) — Amortization of acquisition costs 103,777 25,257 586 129,620 Commissions, premium taxes, and non-deferred acquisition costs 47,394 22,265 8 (28 ) (2) 69,639 Insurance administrative expense (1) 55,472 55,472 Parent expense 2,292 2,292 Stock-based compensation expense 9,060 9,060 Interest expense 21,622 21,622 Total expenses 443,482 193,750 (2,581 ) 156,147 66,824 (28 ) 857,594 Subtotal 154,821 58,048 2,586 61,937 (66,501 ) — 210,891 Non-operating items — — Measure of segment profitability (pretax) $ 154,821 $ 58,048 $ 2,586 $ 61,937 $ (66,501 ) $ — 210,891 Deduct applicable income taxes (38,721 ) Net operating income 172,170 Add back income taxes applicable to segment profitability 38,721 Add (deduct) realized investment gains (losses) 1,951 Income before income taxes per Condensed Consolidated Statements of Operations $ 212,842 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. Three Months Ended March 31, 2017 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium $ 575,837 $ 244,791 $ 3 $ 820,631 Net investment income $ 208,282 208,282 Other income $ 451 $ (35 ) (2) 416 Total revenue 575,837 244,791 3 208,282 451 (35 ) 1,029,329 Expenses: Policy benefits 391,079 157,751 8,946 557,776 Required interest on reserves (148,825 ) (18,975 ) (12,418 ) 180,218 — Required interest on DAC 45,936 5,809 178 (51,923 ) — Amortization of acquisition costs 99,905 25,327 676 125,908 Commissions, premium taxes, and non-deferred acquisition costs 43,638 21,502 11 (35 ) (2) 65,116 Insurance administrative expense (1) 51,913 51,913 Parent expense 2,233 2,233 Stock-based compensation expense 8,195 8,195 Interest expense 20,699 20,699 Total expenses 431,733 191,414 (2,607 ) 148,994 62,341 (35 ) 831,840 Subtotal 144,104 53,377 2,610 59,288 (61,890 ) — 197,489 Non-operating items — — Measure of segment profitability (pretax) $ 144,104 $ 53,377 $ 2,610 $ 59,288 $ (61,890 ) $ — 197,489 Deduct applicable income taxes (58,818 ) Net operating income 138,671 Add back income taxes applicable to segment profitability 58,818 Add (deduct) realized investment gains (losses) (5,748 ) Income before income taxes per Condensed Consolidated Statements of Operations $ 191,741 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. |
Significant Accounting Polici19
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The accompanying condensed consolidated financial statements of Torchmark Corporation (Torchmark or alternatively, the Company) have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the annual disclosures required by accounting principles generally accepted in the United States of America (GAAP). However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial position at March 31, 2018 , and the condensed consolidated results of operations, comprehensive income, and cash flows for the periods ended March 31, 2018 and 2017 . 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 26, 2018. |
Accounting Pronouncements Adopted / Not Yet Adopted | Accounting Pronouncements Adopted in the Current Year: ASU 2016-01: In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 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, the guidance 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 or equity method. This standard became effective for the Company on January 1, 2018. On January 1, 2018, the Company adopted this standard on a modified retrospective basis for two types of investments: equity securities and limited partnerships. The adoption resulted in a $4.9 million after tax positive adjustment to the opening balance of retained earnings. Subsequent to the adoption, the Company elected to measure its investment in the limited partnership at fair value in accordance with the fair value option for financial instruments with changes recognized in "Realized Investment Gains (Losses)" in the Condensed Consolidated Statements of Operations. As of March 31, 2018, the fair value balance of the limited partnerships were $106 million . See Note 4—Investments for further discussion. ASU 2016-15: In August 2016, the FASB issued ASU 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 became effective on January 1, 2018 and did not have a significant impact to the classification on the Condensed Statement of Cash Flows . ASU 2016-16: In October 2016, the FASB issued ASU 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 guidance is applied on a modified retrospective approach and became effective on January 1, 2018. This adoption did not have a significant impact on the financial statements. ASU 2017-07: In March 2017, the FASB issued ASU 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 became 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 will record approximately $3.5 million in additional expense to the 2018 Condensed Consolidated Statements of Operations due to the elimination of the ability to capitalize a portion of the benefit costs. For the three months ended March 31, 2018, the Company recorded $831 thousand in additional expense. ASU 2017-09: In May 2017, the FASB issued ASU 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 became effective on January 1, 2018. The adoption had no significant impact on the financial statements as modifications to stock compensation are infrequent. ASU 2018-02 : In February 2018, the FASB issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (AOCI) . This guidance was issued to allow the reclassification of taxes from AOCI to retained earnings as a result of the reduction in corporate income tax rates due to the Tax Cuts and Jobs Act of 2017 (Tax Legislation). Current accounting requires the effect of changes in tax rates used to measure deferred tax assets and liabilities to be reported in net income as of the date of enactment even though deferred taxes were previously recognized in AOCI (stranded taxes). This guidance, however, allows a company to elect to reclassify the stranded taxes in AOCI to retained earnings and is effective for years beginning after December 15, 2018, with early adoption permitted. The Company elected to early adopt this guidance resulting in a reclassification of $252 million from AOCI to retained earnings for the period ended December 31, 2017. Accounting Pronouncements Not Yet Adopted ASU 2016-02: In February 2016, the FASB issued ASU 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 Note 15—Commitments and Contingencies of the 2017 10-K for consideration of the noncancelable operating lease commitments. The Company is not a lessor. ASU 2016-13: In June 2016, the FASB issued ASU 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 by use of an allowance rather than a direct write-down. 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 current available-for-sale portfolio. ASU 2017-04: In January 2017, the FASB issued ASU 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 which required a hypothetical purchase price allocation. It will become effective on January 1, 2020 and should be applied on a prospective basis. This adoption will not have an impact to the financial statements. ASU 2017-08: In March 2017, the FASB issued ASU 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. |
Supplemental Information abou20
Supplemental Information about Changes to Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of Analysis of Change in Balance by Component of Accumulated Other Comprehensive Income | An analysis of the change in balance by component of Accumulated Other Comprehensive Income is as follows for the three month periods ended March 31, 2018 and 2017 . Components of Accumulated Other Comprehensive Income Three Months Ended March 31, 2018 Available Deferred Foreign Pension Total Balance at January 1, 2018 $ 1,569,289 $ (8,547 ) $ 16,302 $ (152,770 ) $ 1,424,274 Other comprehensive income (loss) before reclassifications, net of tax (485,843 ) 356 (1,023 ) — (486,510 ) Reclassifications, net of tax (550 ) — — 2,985 2,435 Other comprehensive income (loss) (486,393 ) 356 (1,023 ) 2,985 (484,075 ) Balance at March 31, 2018 $ 1,082,896 $ (8,191 ) $ 15,279 $ (149,785 ) $ 940,199 Three Months Ended March 31, 2017 Available Deferred Foreign Pension Total Balance at January 1, 2017 $ 692,314 $ (6,682 ) $ 4,967 $ (113,025 ) $ 577,574 Other comprehensive income (loss) before reclassifications, net of tax 140,700 (500 ) 3,786 241 144,227 Reclassifications, net of tax (957 ) — — 2,021 1,064 Other comprehensive income (loss) 139,743 (500 ) 3,786 2,262 145,291 Balance at March 31, 2017 $ 832,057 $ (7,182 ) $ 8,753 $ (110,763 ) $ 722,865 |
Summary of Reclassifications Out of Accumulated Other Comprehensive Income | Reclassifications out of Accumulated Other Comprehensive Income are presented below for the three month periods ended March 31, 2018 and 2017 . Reclassification Adjustments Three Months Ended Affected line items in the Statement of Operations 2018 2017 Unrealized investment gains (losses) on available for sale assets: Realized (gains) losses $ (1,386 ) $ (1,035 ) Realized investment gains (losses) Amortization of (discount) premium 690 (437 ) Net investment income Total before tax (696 ) (1,472 ) Tax 146 515 Income taxes Total after tax (550 ) (957 ) Pension adjustments: Amortization of prior service cost 119 119 Other operating expense Amortization of actuarial gain (loss) 3,659 2,990 Other operating expense Total before tax 3,778 3,109 Tax (793 ) (1,088 ) Income taxes Total after tax 2,985 2,021 Total reclassifications (after tax) $ 2,435 $ 1,064 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Fixed Maturities and Equity Securities Available for Sale by Cost or Amortized Cost and Estimated Fair Value | A summary of fixed maturities available for sale by cost or amortized cost and estimated fair value at March 31, 2018 and December 31, 2017 is as follows: March 31, 2018: 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 $ 394,548 $ 7,127 $ (2,397 ) $ 399,278 3 States, municipalities, and political subdivisions 1,219,749 113,694 (508 ) 1,332,935 8 Foreign governments 20,541 1,740 — 22,281 — Corporates, by sector: Financial 3,329,170 349,415 (31,568 ) 3,647,017 22 Utilities 1,963,247 296,546 (6,482 ) 2,253,311 14 Energy 1,614,917 175,301 (35,069 ) 1,755,149 11 Other corporate sectors 6,150,540 489,984 (65,084 ) 6,575,440 39 Total corporates 13,057,874 1,311,246 (138,203 ) 14,230,917 86 Collateralized debt obligations 58,473 23,518 (6,467 ) 75,524 — Other asset-backed securities 147,511 3,263 (362 ) 150,412 1 Redeemable preferred stocks, by sector: Financial 347,254 51,250 (3,783 ) 394,721 2 Utilities 28,540 1,598 (321 ) 29,817 — Total redeemable preferred stocks 375,794 52,848 (4,104 ) 424,538 2 Total fixed maturities $ 15,274,490 $ 1,513,436 $ (152,041 ) $ 16,635,885 100 (1) Amounts reported on the balance sheet. (2) At fair value. December 31, 2017: Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (1) % of Total Fixed Maturities (2) Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 390,646 $ 18,173 $ (1,373 ) $ 407,446 2 States, municipalities, and political subdivisions 1,091,960 127,890 (135 ) 1,219,715 7 Foreign governments 20,236 1,782 — 22,018 — Corporates, by sector: — Financial 3,282,526 475,961 (23,392 ) 3,735,095 22 Utilities 1,955,737 369,406 (1,298 ) 2,323,845 14 Energy 1,619,349 226,140 (25,392 ) 1,820,097 11 Other corporate sectors 6,065,803 747,612 (20,616 ) 6,792,799 40 Total corporates 12,923,415 1,819,119 (70,698 ) 14,671,836 87 Collateralized debt obligations 59,150 20,084 (7,653 ) 71,581 — Other asset-backed securities 144,520 4,835 — 149,355 1 Redeemable preferred stocks, by sector: Financial 336,621 62,892 (2,727 ) 396,786 3 Utilities 28,553 2,132 (97 ) 30,588 — Total redeemable preferred stocks 365,174 65,024 (2,824 ) 427,374 3 Total fixed maturities $ 14,995,101 $ 2,056,907 $ (82,683 ) $ 16,969,325 100 (1) Amounts reported on the balance sheet. (2) At fair value. |
Schedule of Fixed Maturities by Contractual Maturity Date | A schedule of fixed maturities available for sale by contractual maturity date at March 31, 2018 is shown below on an amortized cost basis and on a fair value basis. Actual maturity dates could differ from contractual maturities due to call or prepayment provisions. March 31, 2018 Amortized Fair Value Fixed maturities available for sale: Due in one year or less $ 106,827 $ 107,973 Due after one year through five years 736,487 766,321 Due after five years through ten years 1,490,930 1,640,983 Due after ten years through twenty years 5,000,345 5,690,933 Due after twenty years 7,733,027 8,202,784 Mortgage-backed and asset-backed securities 206,874 226,891 $ 15,274,490 $ 16,635,885 |
Schedule of Assets Measured at Fair Value on Recurring Basis | The following tables represents the fair value of fixed maturities available for sale measured on a recurring basis at March 31, 2018 and December 31, 2017 . Fair Value Measurements at March 31, 2018 using: Description Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 399,278 $ — $ 399,278 States, municipalities, and political subdivisions — 1,332,935 — 1,332,935 Foreign governments — 22,281 — 22,281 Corporates, by sector: Financial — 3,586,007 61,010 3,647,017 Utilities — 2,103,085 150,226 2,253,311 Energy — 1,715,081 40,068 1,755,149 Other corporate sectors — 6,257,944 317,496 6,575,440 Total corporates — 13,662,117 568,800 14,230,917 Collateralized debt obligations — — 75,524 75,524 Other asset-backed securities — 137,225 13,187 150,412 Redeemable preferred stocks, by sector: Financial — 394,721 — 394,721 Utilities — 29,817 — 29,817 Total redeemable preferred stocks — 424,538 — 424,538 Total fixed maturities $ — $ 15,978,374 $ 657,511 $ 16,635,885 Percent of total — % 96.0 % 4.0 % 100.0 % Fair Value Measurements at December 31, 2017 using: Description Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 407,446 $ — $ 407,446 States, municipalities, and political subdivisions 44 1,219,671 — 1,219,715 Foreign governments — 22,018 — 22,018 Corporates, by sector: — Financial — 3,673,089 62,006 3,735,095 Utilities — 2,168,115 155,730 2,323,845 Energy — 1,779,281 40,816 1,820,097 Other corporate sectors — 6,468,541 324,258 6,792,799 Total corporates — 14,089,026 582,810 14,671,836 Collateralized debt obligations — — 71,581 71,581 Other asset-backed securities — 135,306 14,049 149,355 Redeemable preferred stocks, by sector: Financial — 396,786 — 396,786 Utilities — 30,588 — 30,588 Total redeemable preferred stocks — 427,374 — 427,374 Total fixed maturities $ 44 $ 16,300,841 $ 668,440 $ 16,969,325 Percentage of total — % 96.1 % 3.9 % 100.0 % |
Schedule of Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs | The following tables represent an analysis of changes in fair value measurements using significant unobservable inputs (Level 3) for the three months ended March 31, 2018 and 2017 . Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Three Months Ended March 31, 2018 Asset- Collateralized Corporates (1) Total Balance at January 1, 2018 $ 14,049 $ 71,581 $ 582,810 $ 668,440 Total gains or losses: Included in realized gains/losses — — — — Included in other comprehensive income (749 ) 4,621 (12,233 ) (8,361 ) Acquisitions — — — — Sales — — — — Amortization — 1,201 4 1,205 Other (2) (113 ) (1,879 ) (1,781 ) (3,773 ) Transfers in and/or out of Level 3 (3) — — — — Balance at March 31, 2018 $ 13,187 $ 75,524 $ 568,800 $ 657,511 Percent of total fixed maturities 0.1 % 0.5 % 3.4 % 4.0 % Three Months Ended March 31, 2017 Asset- Collateralized Corporates (1) Total Balance at January 1, 2017 $ — $ 63,503 $ 559,600 $ 623,103 Total gains or losses: Included in realized gains/losses — — — — Included in other comprehensive income — 5,090 6,275 11,365 Acquisitions 14,000 — 21,666 35,666 Sales — — — — Amortization — 1,249 4 1,253 Other (2) — (1,999 ) (1,557 ) (3,556 ) Transfers in and/or out of Level 3 (3) — — — — Balance at March 31, 2017 $ 14,000 $ 67,843 $ 585,988 $ 667,831 Percent of total fixed maturities 0.1 % 0.4 % 3.7 % 4.2 % (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. |
Transfers In And Out Of Each Of Valuation Levels Of Fair Values | The following table presents transfers in and out of each of the valuation levels of fair values. Three Months Ended March 31, 2018 2017 In Out Net In Out Net Level 1 $ — $ — $ — $ 4 $ (597 ) $ (593 ) Level 2 — — — 597 (4 ) 593 Level 3 — — — — — — |
Fair Value of Investments Elected for the Fair Value Option | The following table represents the fair value of investments elected for the fair value option method measured on a recurring basis at March 31, 2018, and the changes in fair value for the three months ended March 31, 2018. Fair Value Measurements at March 31, 2018 Changes in Fair Values for the Period for Items Measured at Fair Value Pursuant to Election of the Fair Value Option Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Net Gains and Losses Recognized During the Period Less Net Gains and Losses Recognized due to Sales Total Changes in Fair Values Included in Current-Period Earnings Limited partnership $ — $ 106,151 $ — $ 106,151 $ 560 $ — $ 560 |
Schedule of Information About Investments in Unrealized Loss Position | The following table discloses information about fixed maturities available for sale in an unrealized loss position. Less than Twelve Months Twelve Months or Longer Total Number of issues (CUSIP numbers) held: As of March 31, 2018 327 98 425 As of December 31, 2017 92 102 194 |
Schedule of Unrealized Investment Losses by Class of Investment | The following tables disclose unrealized investment losses by class and major sector of fixed maturities available for sale at March 31, 2018 and December 31, 2017 for the respective periods of time in a loss position. Torchmark considers these investments to be only temporarily impaired. Analysis of Gross Unrealized Investment Losses At March 31, 2018 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 $ 82,042 $ (1,167 ) $ 43,914 $ (1,230 ) $ 125,956 $ (2,397 ) States, municipalities and political subdivisions 37,278 (495 ) 1,195 (13 ) 38,473 (508 ) Corporates, by sector: Financial 519,675 (12,606 ) 34,166 (2,445 ) 553,841 (15,051 ) Utilities 192,595 (5,154 ) 31,590 (1,328 ) 224,185 (6,482 ) Energy 161,511 (3,730 ) 51,640 (5,137 ) 213,151 (8,867 ) Other corporate sectors 1,185,926 (37,821 ) 156,415 (11,553 ) 1,342,341 (49,374 ) Total corporates 2,059,707 (59,311 ) 273,811 (20,463 ) 2,333,518 (79,774 ) Other asset-backed securities 17,663 (362 ) — — 17,663 (362 ) Redeemable preferred stocks, by sector: Financial 10,322 (516 ) — — 10,322 (516 ) Utilities — — 5,714 (321 ) 5,714 (321 ) Total redeemable preferred stocks 10,322 (516 ) 5,714 (321 ) 16,036 (837 ) Total investment grade securities 2,207,012 (61,851 ) 324,634 (22,027 ) 2,531,646 (83,878 ) Below investment grade securities: Bonds: States, municipalities and political subdivisions 15 — — — 15 — Corporates, by sector: Financial 26,116 (4,665 ) 63,104 (11,852 ) 89,220 (16,517 ) Energy 17,047 (182 ) 63,694 (26,020 ) 80,741 (26,202 ) Other corporate sectors 52,616 (5,819 ) 53,318 (9,891 ) 105,934 (15,710 ) Total corporates 95,779 (10,666 ) 180,116 (47,763 ) 275,895 (58,429 ) Collateralized debt obligations — — 13,533 (6,467 ) 13,533 (6,467 ) Redeemable preferred stocks, by sector: Financial — — 23,830 (3,267 ) 23,830 (3,267 ) Total redeemable preferred stocks — — 23,830 (3,267 ) 23,830 (3,267 ) Total below investment grade securities 95,794 (10,666 ) 217,479 (57,497 ) 313,273 (68,163 ) Total fixed maturities $ 2,302,806 $ (72,517 ) $ 542,113 $ (79,524 ) $ 2,844,919 $ (152,041 ) Analysis of Gross Unrealized Investment Losses At December 31, 2017 Less than Twelve Months Twelve Months or Longer Total Description of Securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fixed maturities available for sale: Investment grade securities: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 34,388 $ (422 ) $ 47,514 $ (951 ) $ 81,902 $ (1,373 ) States, municipalities and political subdivisions 4,561 (21 ) 1,771 (9 ) 6,332 (30 ) Foreign governments — — — — — — Corporates, by sector: Financial 133,080 (652 ) 35,302 (1,429 ) 168,382 (2,081 ) Utilities 48,562 (569 ) 32,345 (729 ) 80,907 (1,298 ) Energy 23,463 (81 ) 67,775 (3,682 ) 91,238 (3,763 ) Metals and mining — — — — — — Other corporate sectors 220,661 (2,312 ) 163,886 (4,257 ) 384,547 (6,569 ) Total corporates 425,766 (3,614 ) 299,308 (10,097 ) 725,074 (13,711 ) Other asset-backed securities — — — — — — Redeemable preferred stocks, by sector: Utilities — — 5,953 (97 ) 5,953 (97 ) Total redeemable preferred stocks — — 5,953 (97 ) 5,953 (97 ) Total investment grade securities 464,715 (4,057 ) 354,546 (11,154 ) 819,261 (15,211 ) Below investment grade securities: States, municipalities and political subdivisions 200 (105 ) — — 200 (105 ) Corporates, by sector: Financial — — 84,432 (21,311 ) 84,432 (21,311 ) Energy 8,114 (104 ) 75,204 (21,525 ) 83,318 (21,629 ) Metals and mining — — — — — — Other corporate sectors 25,334 (5,066 ) 54,383 (8,981 ) 79,717 (14,047 ) Total corporates 33,448 (5,170 ) 214,019 (51,817 ) 247,467 (56,987 ) Collateralized debt obligations — — 12,347 (7,653 ) 12,347 (7,653 ) Redeemable preferred stocks, by sector: Financial — — 24,376 (2,727 ) 24,376 (2,727 ) Total redeemable preferred stocks — — 24,376 (2,727 ) 24,376 (2,727 ) Total below investment grade securities 33,648 (5,275 ) 250,742 (62,197 ) 284,390 (67,472 ) Total fixed maturities $ 498,363 $ (9,332 ) $ 605,288 $ (73,351 ) $ 1,103,651 $ (82,683 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of Effective Income Tax Rate | The effective income tax rate differed from the expected rate as shown below: Three Months Ended March 31, 2018 % 2017 % Expected income taxes $ 44,697 21.0 $ 67,109 35.0 Increase (reduction) in income taxes resulting from: Low income housing investments (3,325 ) (1.6 ) (4,649 ) (2.4 ) Share-based awards (2,199 ) (1.0 ) (5,673 ) (3.0 ) Other (42 ) — (2,224 ) (1.2 ) Income tax expense (benefit) from continuing operations $ 39,131 18.4 $ 54,563 28.4 |
Liability for Unpaid Claims (Ta
Liability for Unpaid Claims (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Insurance [Abstract] | |
Activity in the Liability for Unpaid Health Claims | Activity in the liability for unpaid health claims is summarized as follows: Three Months Ended 2018 2017 Balance at beginning of period $ 146,865 $ 143,128 Incurred related to: Current year 134,542 135,377 Prior years (5,001 ) (4,024 ) Total incurred 129,541 131,353 Paid related to: Current year 55,130 54,241 Prior years 78,722 77,555 Total paid 133,852 131,796 Balance at end of period $ 142,554 $ 142,685 |
Reconciliation of the Liability for Policy Claims and Other Benefits Payable | Below is the reconciliation of the liability for "Policy claims and other benefits payable" in the Condensed Consolidated Balance Sheets . March 31, December 31, 2017 Policy claims and other benefits payable: Life insurance $ 191,206 $ 186,429 Health insurance 142,554 146,865 Total $ 333,760 $ 333,294 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Summary of Post-Retirement Benefit Costs by Component | The following table presents a summary of post-retirement benefit costs by component. Components of Post-Retirement Benefit Costs Three Months Ended March 31, Pension Benefits Other Benefits 2018 2017 2018 2017 Service cost $ 5,277 $ 4,487 $ — $ — Interest cost 5,493 5,550 228 250 Expected return on assets (6,363 ) (5,899 ) — — Amortization: Prior service cost 119 119 — — Actuarial (gain)/loss 3,636 2,951 23 39 Direct recognition of expense — — 140 96 Net periodic benefit cost $ 8,162 $ 7,208 $ 391 $ 385 |
Schedule of Assets at Fair Value for Defined-Benefit Pension Plans | The following tables present the assets of Torchmark’s defined benefit pension plans for the years ended March 31, 2018 and December 31, 2017 . Pension Assets by Component at March 31, 2018 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Amount % to Total Corporate bonds: Financial $ $ 41,709 $ $ 41,709 11 Utilities 44,870 44,870 12 Energy 23,846 23,846 7 Other corporates 62,666 62,666 17 Total corporate bonds — 173,091 — 173,091 47 Exchange traded fund (1) 162,980 162,980 45 Other bonds 249 249 — Other long-term investments 2,439 2,439 1 Guaranteed annuity contract (2) 21,322 21,322 6 Short-term investments 2,070 2,070 — Other 3,623 3,623 1 Grand Total $ 168,673 $ 197,101 $ — $ 365,774 100 (1) A fund including marketable securities that mirror the S&P 500 index. (2) Representing a guaranteed annuity contract issued by Torchmark's subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Pension Plan. Pension Assets by Component at December 31, 2017 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Amount % to Total Corporate bonds: Financial $ $ 43,451 $ $ 43,451 12 Utilities 46,144 46,144 12 Energy 25,023 25,023 7 Other corporates 65,888 65,888 17 Total corporate bonds — 180,506 — 180,506 48 Exchange traded fund (1) 164,351 164,351 43 Other bonds 256 256 — Other long-term investments 2,304 2,304 1 Guaranteed annuity contract (2) 21,202 21,202 6 Short-term investments 3,984 3,984 1 Other 5,021 5,021 1 Grand Total $ 173,356 $ 204,268 $ — $ 377,624 100 (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 March 31, 2018 and December 31, 2017 . Pension Liability March 31, December 31, 2017 Funded defined benefit pension $ 509,526 $ 518,140 SERPs (1) 84,828 84,465 Pension Benefit Obligation $ 594,354 $ 602,605 (1) Supplemental executive retirement plan (SERP). |
Schedule of Defined Benefit Plans Disclosures | The following table includes information regarding the SERPs at March 31, 2018 and December 31, 2017 . March 31, December 31, 2017 Premiums paid for insurance coverage $ 1,047 $ 2,050 Total investments: Company owned life insurance $ 41,608 $ 40,273 Exchange traded funds 53,598 55,442 $ 95,206 $ 95,715 Liability: Active plan $ 82,200 $ 81,457 Closed plan 2,628 3,008 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Weighted-Average Shares Outstanding | A reconciliation of basic and diluted weighted-average shares outstanding is as follows: Three Months Ended March 31, 2018 2017 Basic weighted average shares outstanding 114,179,084 117,770,474 Weighted average dilutive options outstanding 2,570,418 2,659,242 Diluted weighted average shares outstanding 116,749,502 120,429,716 Antidilutive shares 535,143 625,855 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of Segment Operating Information to Consolidated Statement of Operations | The following tables set forth a reconciliation of Torchmark’s revenues and operations by segment to its pretax income and each significant line item in its Condensed Consolidated Statements of Operations . Reconciliation of Segment Operating Information to the Condensed Consolidated Statement of Operations Three Months Ended March 31, 2018 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium $ 598,303 $ 251,798 $ 5 $ 850,106 Net investment income $ 218,084 218,084 Other income $ 323 $ (28 ) (2) 295 Total revenue 598,303 251,798 5 218,084 323 (28 ) 1,068,485 Expenses: Policy benefits 400,581 160,619 8,689 569,889 Required interest on reserves (156,214 ) (20,404 ) (12,017 ) 188,635 — Required interest on DAC 47,944 6,013 153 (54,110 ) — Amortization of acquisition costs 103,777 25,257 586 129,620 Commissions, premium taxes, and non-deferred acquisition costs 47,394 22,265 8 (28 ) (2) 69,639 Insurance administrative expense (1) 55,472 55,472 Parent expense 2,292 2,292 Stock-based compensation expense 9,060 9,060 Interest expense 21,622 21,622 Total expenses 443,482 193,750 (2,581 ) 156,147 66,824 (28 ) 857,594 Subtotal 154,821 58,048 2,586 61,937 (66,501 ) — 210,891 Non-operating items — — Measure of segment profitability (pretax) $ 154,821 $ 58,048 $ 2,586 $ 61,937 $ (66,501 ) $ — 210,891 Deduct applicable income taxes (38,721 ) Net operating income 172,170 Add back income taxes applicable to segment profitability 38,721 Add (deduct) realized investment gains (losses) 1,951 Income before income taxes per Condensed Consolidated Statements of Operations $ 212,842 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. Three Months Ended March 31, 2017 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium $ 575,837 $ 244,791 $ 3 $ 820,631 Net investment income $ 208,282 208,282 Other income $ 451 $ (35 ) (2) 416 Total revenue 575,837 244,791 3 208,282 451 (35 ) 1,029,329 Expenses: Policy benefits 391,079 157,751 8,946 557,776 Required interest on reserves (148,825 ) (18,975 ) (12,418 ) 180,218 — Required interest on DAC 45,936 5,809 178 (51,923 ) — Amortization of acquisition costs 99,905 25,327 676 125,908 Commissions, premium taxes, and non-deferred acquisition costs 43,638 21,502 11 (35 ) (2) 65,116 Insurance administrative expense (1) 51,913 51,913 Parent expense 2,233 2,233 Stock-based compensation expense 8,195 8,195 Interest expense 20,699 20,699 Total expenses 431,733 191,414 (2,607 ) 148,994 62,341 (35 ) 831,840 Subtotal 144,104 53,377 2,610 59,288 (61,890 ) — 197,489 Non-operating items — — Measure of segment profitability (pretax) $ 144,104 $ 53,377 $ 2,610 $ 59,288 $ (61,890 ) $ — 197,489 Deduct applicable income taxes (58,818 ) Net operating income 138,671 Add back income taxes applicable to segment profitability 58,818 Add (deduct) realized investment gains (losses) (5,748 ) Income before income taxes per Condensed Consolidated Statements of Operations $ 191,741 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. |
New Accounting Standards (Detai
New Accounting Standards (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Retained earnings | $ 4,955,608 | $ 4,806,208 | |||
Impact of ASU on financial statements | [1] | (4,896) | |||
Accounting Standards Update 2016-01 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Retained earnings | $ 4,900 | ||||
Accounting Standards Update 2018-02 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reclassification from AOCI to retained earnings | 252,000 | ||||
Accounting Standards Update 2017-07 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net periodic benefit costs | 831 | ||||
Scenario, Forecast [Member] | Accounting Standards Update 2017-07 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net periodic benefit costs | $ 3,500 | ||||
Fair Value Option [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Investments, fair value disclosure | 106,151 | ||||
Partnership Interest [Member] | Fair Value Option [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Investments, fair value disclosure | $ 106,000 | $ 0 | |||
[1] | See further discussion in Note 2—New Accounting Standards and Note 4—Investments. |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | $ 6,231,421 | $ 4,566,861 |
Other comprehensive income (loss) before reclassifications, net of tax | (486,510) | 144,227 |
Reclassifications, net of tax | 2,435 | 1,064 |
Other comprehensive income (loss) | (484,075) | 145,291 |
Stockholders' equity, ending balance | 5,820,301 | 4,744,827 |
Available for Sale Assets [Member] | ||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | 1,569,289 | 692,314 |
Other comprehensive income (loss) before reclassifications, net of tax | (485,843) | 140,700 |
Reclassifications, net of tax | (550) | (957) |
Other comprehensive income (loss) | (486,393) | 139,743 |
Stockholders' equity, ending balance | 1,082,896 | 832,057 |
Deferred Acquisition Costs [Member] | ||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | (8,547) | (6,682) |
Other comprehensive income (loss) before reclassifications, net of tax | 356 | (500) |
Reclassifications, net of tax | 0 | 0 |
Other comprehensive income (loss) | 356 | (500) |
Stockholders' equity, ending balance | (8,191) | (7,182) |
Foreign Exchange [Member] | ||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | 16,302 | 4,967 |
Other comprehensive income (loss) before reclassifications, net of tax | (1,023) | 3,786 |
Reclassifications, net of tax | 0 | 0 |
Other comprehensive income (loss) | (1,023) | 3,786 |
Stockholders' equity, ending balance | 15,279 | 8,753 |
Pension Adjustments [Member] | ||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | (152,770) | (113,025) |
Other comprehensive income (loss) before reclassifications, net of tax | 0 | 241 |
Reclassifications, net of tax | 2,985 | 2,021 |
Other comprehensive income (loss) | 2,985 | 2,262 |
Stockholders' equity, ending balance | (149,785) | (110,763) |
Total [Member] | ||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | 1,424,274 | 577,574 |
Stockholders' equity, ending balance | $ 940,199 | $ 722,865 |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Unrealized investment gains (losses) on available for sale assets: | ||
Realized (gains) losses | $ (1,951) | $ 5,748 |
Amortization of (discount) premium | (218,084) | (208,282) |
Total before tax | (212,842) | (191,741) |
Tax | 39,131 | 54,563 |
Net income | (173,600) | (133,541) |
Pension adjustments: | ||
Total reclassifications (after tax) | 2,435 | 1,064 |
Unrealized Investment Gains (Losses) on Available for Sale Assets [Member] | ||
Pension adjustments: | ||
Total reclassifications (after tax) | (550) | (957) |
Amortization of Prior Service Cost [Member] | ||
Pension adjustments: | ||
Pension adjustments reclassified out of accumulated other comprehensive income | 119 | 119 |
Amortization of Actuarial Gain (Loss) [Member] | ||
Pension adjustments: | ||
Pension adjustments reclassified out of accumulated other comprehensive income | 3,659 | 2,990 |
Pension Adjustments [Member] | ||
Pension adjustments: | ||
Pension adjustments reclassified out of accumulated other comprehensive income | 3,778 | 3,109 |
Tax | (793) | (1,088) |
Total reclassifications (after tax) | 2,985 | 2,021 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Investment Gains (Losses) on Available for Sale Assets [Member] | ||
Unrealized investment gains (losses) on available for sale assets: | ||
Realized (gains) losses | (1,386) | (1,035) |
Amortization of (discount) premium | 690 | (437) |
Total before tax | (696) | (1,472) |
Tax | 146 | 515 |
Net income | $ (550) | $ (957) |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturities Available for Sale by Component (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 15,274,490 | $ 14,995,101 |
Fair Value | 16,635,885 | 16,969,325 |
Fixed maturities available for sale [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 15,274,490 | 14,995,101 |
Gross Unrealized Gains | 1,513,436 | 2,056,907 |
Gross Unrealized Losses | (152,041) | (82,683) |
Fair Value | $ 16,635,885 | $ 16,969,325 |
Percentage of Total Fixed Maturities At Fair Value | 100.00% | 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 | $ 394,548 | $ 390,646 |
Gross Unrealized Gains | 7,127 | 18,173 |
Gross Unrealized Losses | (2,397) | (1,373) |
Fair Value | $ 399,278 | $ 407,446 |
Percentage of Total Fixed Maturities At Fair Value | 3.00% | 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 | $ 1,219,749 | $ 1,091,960 |
Gross Unrealized Gains | 113,694 | 127,890 |
Gross Unrealized Losses | (508) | (135) |
Fair Value | $ 1,332,935 | $ 1,219,715 |
Percentage of Total Fixed Maturities At Fair Value | 8.00% | 7.00% |
Fixed maturities available for sale [Member] | Foreign governments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 20,541 | $ 20,236 |
Gross Unrealized Gains | 1,740 | 1,782 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 22,281 | $ 22,018 |
Percentage of Total Fixed Maturities At Fair Value | 0.00% | 0.00% |
Fixed maturities available for sale [Member] | Corporates [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 13,057,874 | $ 12,923,415 |
Gross Unrealized Gains | 1,311,246 | 1,819,119 |
Gross Unrealized Losses | (138,203) | (70,698) |
Fair Value | $ 14,230,917 | $ 14,671,836 |
Percentage of Total Fixed Maturities At Fair Value | 86.00% | 87.00% |
Fixed maturities available for sale [Member] | Corporates [Member] | Financial [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 3,329,170 | $ 3,282,526 |
Gross Unrealized Gains | 349,415 | 475,961 |
Gross Unrealized Losses | (31,568) | (23,392) |
Fair Value | $ 3,647,017 | $ 3,735,095 |
Percentage of Total Fixed Maturities At Fair Value | 22.00% | 22.00% |
Fixed maturities available for sale [Member] | Corporates [Member] | Utilities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 1,963,247 | $ 1,955,737 |
Gross Unrealized Gains | 296,546 | 369,406 |
Gross Unrealized Losses | (6,482) | (1,298) |
Fair Value | $ 2,253,311 | $ 2,323,845 |
Percentage of Total Fixed Maturities At Fair Value | 14.00% | 14.00% |
Fixed maturities available for sale [Member] | Corporates [Member] | Energy [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 1,614,917 | $ 1,619,349 |
Gross Unrealized Gains | 175,301 | 226,140 |
Gross Unrealized Losses | (35,069) | (25,392) |
Fair Value | $ 1,755,149 | $ 1,820,097 |
Percentage of Total Fixed Maturities At Fair Value | 11.00% | 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 | $ 6,150,540 | $ 6,065,803 |
Gross Unrealized Gains | 489,984 | 747,612 |
Gross Unrealized Losses | (65,084) | (20,616) |
Fair Value | $ 6,575,440 | $ 6,792,799 |
Percentage of Total Fixed Maturities At Fair Value | 39.00% | 40.00% |
Fixed maturities available for sale [Member] | Collateralized debt obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 58,473 | $ 59,150 |
Gross Unrealized Gains | 23,518 | 20,084 |
Gross Unrealized Losses | (6,467) | (7,653) |
Fair Value | $ 75,524 | $ 71,581 |
Percentage of Total Fixed Maturities At Fair Value | 0.00% | 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 | $ 147,511 | $ 144,520 |
Gross Unrealized Gains | 3,263 | 4,835 |
Gross Unrealized Losses | (362) | 0 |
Fair Value | $ 150,412 | $ 149,355 |
Percentage of Total Fixed Maturities At Fair Value | 1.00% | 1.00% |
Fixed maturities available for sale [Member] | Redeemable preferred stocks [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 375,794 | $ 365,174 |
Gross Unrealized Gains | 52,848 | 65,024 |
Gross Unrealized Losses | (4,104) | (2,824) |
Fair Value | $ 424,538 | $ 427,374 |
Percentage of Total Fixed Maturities At Fair Value | 2.00% | 3.00% |
Fixed maturities available for sale [Member] | Redeemable preferred stocks [Member] | Financial [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 347,254 | $ 336,621 |
Gross Unrealized Gains | 51,250 | 62,892 |
Gross Unrealized Losses | (3,783) | (2,727) |
Fair Value | $ 394,721 | $ 396,786 |
Percentage of Total Fixed Maturities At Fair Value | 2.00% | 3.00% |
Fixed maturities available for sale [Member] | Redeemable preferred stocks [Member] | Utilities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 28,540 | $ 28,553 |
Gross Unrealized Gains | 1,598 | 2,132 |
Gross Unrealized Losses | (321) | (97) |
Fair Value | $ 29,817 | $ 30,588 |
Percentage of Total Fixed Maturities At Fair Value | 0.00% | 0.00% |
Investments - Schedule of Fixed
Investments - Schedule of Fixed Maturities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Due in one year or less | $ 106,827 | |
Due after one year through five years | 736,487 | |
Due after five years through ten years | 1,490,930 | |
Due after ten years through twenty years | 5,000,345 | |
Due after twenty years | 7,733,027 | |
Mortgage-backed and asset-backed securities | 206,874 | |
Cost or Amortized Cost | 15,274,490 | $ 14,995,101 |
Fair Value | ||
Due in one year or less | 107,973 | |
Due after one year through five years | 766,321 | |
Due after five years through ten years | 1,640,983 | |
Due after ten years through twenty years | 5,690,933 | |
Due after twenty years | 8,202,784 | |
Mortgage-backed and asset-backed securities | 226,891 | |
Fair Value | $ 16,635,885 | $ 16,969,325 |
Investments - Assets Measured a
Investments - Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 16,635,885 | $ 16,969,325 |
Percent of total | 100.00% | 100.00% |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percent of total | 0.00% | 0.00% |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percent of total | 96.00% | 96.10% |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percent of total | 4.00% | 3.90% |
Fixed maturities available for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 16,635,885 | $ 16,969,325 |
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] | ||
Fair Value | 399,278 | 407,446 |
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] | ||
Fair Value | 1,332,935 | 1,219,715 |
Fixed maturities available for sale [Member] | Foreign governments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 22,281 | 22,018 |
Fixed maturities available for sale [Member] | Corporates [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 14,230,917 | 14,671,836 |
Fixed maturities available for sale [Member] | Corporates [Member] | Financial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 3,647,017 | 3,735,095 |
Fixed maturities available for sale [Member] | Corporates [Member] | Utilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,253,311 | 2,323,845 |
Fixed maturities available for sale [Member] | Corporates [Member] | Energy [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,755,149 | 1,820,097 |
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] | ||
Fair Value | 6,575,440 | 6,792,799 |
Fixed maturities available for sale [Member] | Collateralized debt obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 75,524 | 71,581 |
Fixed maturities available for sale [Member] | Other asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 150,412 | 149,355 |
Fixed maturities available for sale [Member] | Redeemable preferred stocks [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 424,538 | 427,374 |
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] | ||
Fair Value | 394,721 | 396,786 |
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] | ||
Fair Value | 29,817 | 30,588 |
Fixed maturities available for sale [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 44 |
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] | ||
Fair Value | 0 | 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] | ||
Fair Value | 0 | 44 |
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] | ||
Fair Value | 0 | 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] | ||
Fair Value | 0 | 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] | ||
Fair Value | 0 | 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] | ||
Fair Value | 0 | 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] | ||
Fair Value | 0 | 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] | ||
Fair Value | 0 | 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] | ||
Fair Value | 0 | 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] | ||
Fair Value | 0 | 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] | ||
Fair Value | 0 | 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] | ||
Fair Value | 0 | 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] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 15,978,374 | 16,300,841 |
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] | ||
Fair Value | 399,278 | 407,446 |
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] | ||
Fair Value | 1,332,935 | 1,219,671 |
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] | ||
Fair Value | 22,281 | 22,018 |
Fixed maturities available for sale [Member] | Level 2 [Member] | Corporates [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 13,662,117 | 14,089,026 |
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] | ||
Fair Value | 3,586,007 | 3,673,089 |
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] | ||
Fair Value | 2,103,085 | 2,168,115 |
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] | ||
Fair Value | 1,715,081 | 1,779,281 |
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] | ||
Fair Value | 6,257,944 | 6,468,541 |
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] | ||
Fair Value | 0 | 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] | ||
Fair Value | 137,225 | 135,306 |
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] | ||
Fair Value | 424,538 | 427,374 |
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] | ||
Fair Value | 394,721 | 396,786 |
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] | ||
Fair Value | 29,817 | 30,588 |
Fixed maturities available for sale [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 657,511 | 668,440 |
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] | ||
Fair Value | 0 | 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] | ||
Fair Value | 0 | 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] | ||
Fair Value | 0 | 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] | ||
Fair Value | 568,800 | 582,810 |
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] | ||
Fair Value | 61,010 | 62,006 |
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] | ||
Fair Value | 150,226 | 155,730 |
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] | ||
Fair Value | 40,068 | 40,816 |
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] | ||
Fair Value | 317,496 | 324,258 |
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] | ||
Fair Value | 75,524 | 71,581 |
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] | ||
Fair Value | 13,187 | 14,049 |
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] | ||
Fair Value | 0 | 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] | ||
Fair Value | 0 | 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] | ||
Fair Value | $ 0 | $ 0 |
Investments - Schedule of Chang
Investments - Schedule of Changes in Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 668,440 | $ 623,103 |
Total gains or losses: | ||
Included in realized gains/losses | 0 | 0 |
Included in other comprehensive income | (8,361) | 11,365 |
Acquisitions | 0 | 35,666 |
Sales | 0 | 0 |
Amortization | 1,205 | 1,253 |
Other | (3,773) | (3,556) |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | $ 657,511 | $ 667,831 |
Percent of total fixed maturities | 4.00% | 4.20% |
Asset-Backed Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 14,049 | $ 0 |
Total gains or losses: | ||
Included in realized gains/losses | 0 | 0 |
Included in other comprehensive income | (749) | 0 |
Acquisitions | 0 | 14,000 |
Sales | 0 | 0 |
Amortization | 0 | 0 |
Other | (113) | 0 |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | $ 13,187 | $ 14,000 |
Percent of total fixed maturities | 0.10% | 0.10% |
Collateralized debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 71,581 | $ 63,503 |
Total gains or losses: | ||
Included in realized gains/losses | 0 | 0 |
Included in other comprehensive income | 4,621 | 5,090 |
Acquisitions | 0 | 0 |
Sales | 0 | 0 |
Amortization | 1,201 | 1,249 |
Other | (1,879) | (1,999) |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | $ 75,524 | $ 67,843 |
Percent of total fixed maturities | 0.50% | 0.40% |
Corporates [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 582,810 | $ 559,600 |
Total gains or losses: | ||
Included in realized gains/losses | 0 | 0 |
Included in other comprehensive income | (12,233) | 6,275 |
Acquisitions | 0 | 21,666 |
Sales | 0 | 0 |
Amortization | 4 | 4 |
Other | (1,781) | (1,557) |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | $ 568,800 | $ 585,988 |
Percent of total fixed maturities | 3.40% | 3.70% |
Investments - Additional Inform
Investments - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2018USD ($)Issue | Mar. 31, 2017USD ($) | Dec. 31, 2017Issue | |
Gain (Loss) on Investments [Line Items] | |||
Total issues of fixed maturity portfolio | Issue | 1,529 | 1,502 | |
Fixed Maturities [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Other than-temporary impairment, available for sale securities | $ 0 | ||
Other than temporary impairment, available for sale securities, net of tax | $ 0 |
Investments - Transfers in and
Investments - Transfers in and Out of Each of the Valuation Levels of Fair Values (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Level 1 [Member] | ||
Transfers In And Out Of Each Of Valuation Levels Of Fair Values Of Investments [Line Items] | ||
In | $ 0 | $ 4 |
Out | 0 | (597) |
Net | 0 | (593) |
Level 2 [Member] | ||
Transfers In And Out Of Each Of Valuation Levels Of Fair Values Of Investments [Line Items] | ||
In | 0 | 597 |
Out | 0 | (4) |
Net | 0 | 593 |
Level 3 [Member] | ||
Transfers In And Out Of Each Of Valuation Levels Of Fair Values Of Investments [Line Items] | ||
In | 0 | 0 |
Out | 0 | 0 |
Net | $ 0 | $ 0 |
Investments - Fair Value Option
Investments - Fair Value Option (Details) - Fair Value Option [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Investments, fair value disclosure | $ 106,151 |
Net Gains and Losses Recognized During the Period | 560 |
Less Net Gains and Losses Recognized due to Sales | 0 |
Total Changes in Fair Values Included in Current-Period Earnings | 560 |
Level 1 [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Investments, fair value disclosure | 0 |
Level 2 [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Investments, fair value disclosure | 106,151 |
Level 3 [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Investments, fair value disclosure | $ 0 |
Investments - Schedule of Infor
Investments - Schedule of Information about Investments in Unrealized Loss Position (Details) - Issue | Mar. 31, 2018 | Dec. 31, 2017 |
Number of issues (Cusip numbers) held: | ||
Less than Twelve Months | 327 | 92 |
Twelve Months or Longer | 98 | 102 |
Total | 425 | 194 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Investment Losses by Class of Investment (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Fair Value, Less than Twelve Months | $ 2,302,806 | $ 498,363 |
Fair Value, Twelve Months or Longer | 542,113 | 605,288 |
Fair Value, Total | 2,844,919 | 1,103,651 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | (72,517) | (9,332) |
Unrealized Loss, Twelve Months or Longer | (79,524) | (73,351) |
Unrealized Loss Total | (152,041) | (82,683) |
Investment grade [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Fair Value, Less than Twelve Months | 2,207,012 | 464,715 |
Fair Value, Twelve Months or Longer | 324,634 | 354,546 |
Fair Value, Total | 2,531,646 | 819,261 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | (61,851) | (4,057) |
Unrealized Loss, Twelve Months or Longer | (22,027) | (11,154) |
Unrealized Loss Total | (83,878) | (15,211) |
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 | 82,042 | 34,388 |
Fair Value, Twelve Months or Longer | 43,914 | 47,514 |
Fair Value, Total | 125,956 | 81,902 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | (1,167) | (422) |
Unrealized Loss, Twelve Months or Longer | (1,230) | (951) |
Unrealized Loss Total | (2,397) | (1,373) |
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 | 37,278 | 4,561 |
Fair Value, Twelve Months or Longer | 1,195 | 1,771 |
Fair Value, Total | 38,473 | 6,332 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | (495) | (21) |
Unrealized Loss, Twelve Months or Longer | (13) | (9) |
Unrealized Loss Total | (508) | (30) |
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 | 2,059,707 | 425,766 |
Fair Value, Twelve Months or Longer | 273,811 | 299,308 |
Fair Value, Total | 2,333,518 | 725,074 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | (59,311) | (3,614) |
Unrealized Loss, Twelve Months or Longer | (20,463) | (10,097) |
Unrealized Loss Total | (79,774) | (13,711) |
Investment grade [Member] | Corporates [Member] | Financial [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Fair Value, Less than Twelve Months | 519,675 | 133,080 |
Fair Value, Twelve Months or Longer | 34,166 | 35,302 |
Fair Value, Total | 553,841 | 168,382 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | (12,606) | (652) |
Unrealized Loss, Twelve Months or Longer | (2,445) | (1,429) |
Unrealized Loss Total | (15,051) | (2,081) |
Investment grade [Member] | Corporates [Member] | Utilities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Fair Value, Less than Twelve Months | 192,595 | 48,562 |
Fair Value, Twelve Months or Longer | 31,590 | 32,345 |
Fair Value, Total | 224,185 | 80,907 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | (5,154) | (569) |
Unrealized Loss, Twelve Months or Longer | (1,328) | (729) |
Unrealized Loss Total | (6,482) | (1,298) |
Investment grade [Member] | Corporates [Member] | Energy [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Fair Value, Less than Twelve Months | 161,511 | 23,463 |
Fair Value, Twelve Months or Longer | 51,640 | 67,775 |
Fair Value, Total | 213,151 | 91,238 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | (3,730) | (81) |
Unrealized Loss, Twelve Months or Longer | (5,137) | (3,682) |
Unrealized Loss Total | (8,867) | (3,763) |
Investment grade [Member] | Corporates [Member] | Metals and mining [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] | Other corporate sectors [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Fair Value, Less than Twelve Months | 1,185,926 | 220,661 |
Fair Value, Twelve Months or Longer | 156,415 | 163,886 |
Fair Value, Total | 1,342,341 | 384,547 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | (37,821) | (2,312) |
Unrealized Loss, Twelve Months or Longer | (11,553) | (4,257) |
Unrealized Loss Total | (49,374) | (6,569) |
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 | 17,663 | 0 |
Fair Value, Twelve Months or Longer | 0 | 0 |
Fair Value, Total | 17,663 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | (362) | 0 |
Unrealized Loss, Twelve Months or Longer | 0 | 0 |
Unrealized Loss Total | (362) | 0 |
Investment grade [Member] | Redeemable preferred stocks [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Fair Value, Less than Twelve Months | 10,322 | 0 |
Fair Value, Twelve Months or Longer | 5,714 | 5,953 |
Fair Value, Total | 16,036 | 5,953 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | (516) | 0 |
Unrealized Loss, Twelve Months or Longer | (321) | (97) |
Unrealized Loss Total | (837) | (97) |
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 | 10,322 | |
Fair Value, Twelve Months or Longer | 0 | |
Fair Value, Total | 10,322 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | (516) | |
Unrealized Loss, Twelve Months or Longer | 0 | |
Unrealized Loss Total | (516) | |
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 | 0 | 0 |
Fair Value, Twelve Months or Longer | 5,714 | 5,953 |
Fair Value, Total | 5,714 | 5,953 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | 0 | 0 |
Unrealized Loss, Twelve Months or Longer | (321) | (97) |
Unrealized Loss Total | (321) | (97) |
Below investment grade [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Fair Value, Less than Twelve Months | 95,794 | 33,648 |
Fair Value, Twelve Months or Longer | 217,479 | 250,742 |
Fair Value, Total | 313,273 | 284,390 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | (10,666) | (5,275) |
Unrealized Loss, Twelve Months or Longer | (57,497) | (62,197) |
Unrealized Loss Total | (68,163) | (67,472) |
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 | 15 | 200 |
Fair Value, Twelve Months or Longer | 0 | 0 |
Fair Value, Total | 15 | 200 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | 0 | (105) |
Unrealized Loss, Twelve Months or Longer | 0 | 0 |
Unrealized Loss Total | 0 | (105) |
Below investment grade [Member] | Corporates [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Fair Value, Less than Twelve Months | 95,779 | 33,448 |
Fair Value, Twelve Months or Longer | 180,116 | 214,019 |
Fair Value, Total | 275,895 | 247,467 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | (10,666) | (5,170) |
Unrealized Loss, Twelve Months or Longer | (47,763) | (51,817) |
Unrealized Loss Total | (58,429) | (56,987) |
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 | 26,116 | 0 |
Fair Value, Twelve Months or Longer | 63,104 | 84,432 |
Fair Value, Total | 89,220 | 84,432 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | (4,665) | 0 |
Unrealized Loss, Twelve Months or Longer | (11,852) | (21,311) |
Unrealized Loss Total | (16,517) | (21,311) |
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 | 17,047 | 8,114 |
Fair Value, Twelve Months or Longer | 63,694 | 75,204 |
Fair Value, Total | 80,741 | 83,318 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | (182) | (104) |
Unrealized Loss, Twelve Months or Longer | (26,020) | (21,525) |
Unrealized Loss Total | (26,202) | (21,629) |
Below investment grade [Member] | Corporates [Member] | Metals and mining [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] | Other corporate sectors [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Fair Value, Less than Twelve Months | 52,616 | 25,334 |
Fair Value, Twelve Months or Longer | 53,318 | 54,383 |
Fair Value, Total | 105,934 | 79,717 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | (5,819) | (5,066) |
Unrealized Loss, Twelve Months or Longer | (9,891) | (8,981) |
Unrealized Loss Total | (15,710) | (14,047) |
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 | 0 |
Fair Value, Twelve Months or Longer | 13,533 | 12,347 |
Fair Value, Total | 13,533 | 12,347 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | 0 | 0 |
Unrealized Loss, Twelve Months or Longer | (6,467) | (7,653) |
Unrealized Loss Total | (6,467) | (7,653) |
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 | 0 |
Fair Value, Twelve Months or Longer | 23,830 | 24,376 |
Fair Value, Total | 23,830 | 24,376 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | 0 | 0 |
Unrealized Loss, Twelve Months or Longer | (3,267) | (2,727) |
Unrealized Loss Total | (3,267) | (2,727) |
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 | 0 |
Fair Value, Twelve Months or Longer | 23,830 | 24,376 |
Fair Value, Total | 23,830 | 24,376 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized Loss, Less Than Twelve Months | 0 | 0 |
Unrealized Loss, Twelve Months or Longer | (3,267) | (2,727) |
Unrealized Loss Total | $ (3,267) | $ (2,727) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Expected income taxes | $ 44,697 | $ 67,109 | |
Increase (reduction) in income taxes resulting from: | |||
Low income housing investments | (3,325) | (4,649) | |
Share-based awards | (2,199) | (5,673) | |
Other | (42) | (2,224) | |
Income tax expense (benefit) from continuing operations | $ 39,131 | $ 54,563 | |
Expected income taxes | 21.00% | 35.00% | |
Increase (reduction) in income taxes resulting from: | |||
Low income housing investments | (1.60%) | (2.40%) | |
Share-based awards | (1.00%) | (3.00%) | |
Other | 0.00% | (1.20%) | |
Income tax expense (benefit) from continuing operations | 18.40% | 28.40% | |
Tax benefit as a result of remeasuring deferred tax assets and liabilities | $ 877,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
Letters of credit outstanding | $ 155,000,000 | $ 177,000,000 |
Letter of Credit [Member] | ||
Short-term Debt [Line Items] | ||
Maximum amount of letters of credit available | $ 250,000,000 |
Liability for Unpaid Claims - S
Liability for Unpaid Claims - Summary of Liability for Unpaid Health Claims (Details) - Health Insurance [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Activity in the Liability for Unpaid Health Claims | ||
Balance at beginning of period | $ 146,865 | $ 143,128 |
Incurred related to: | ||
Current year | 134,542 | 135,377 |
Prior years | (5,001) | (4,024) |
Total incurred | 129,541 | 131,353 |
Paid related to: | ||
Current year | 55,130 | 54,241 |
Prior years | 78,722 | 77,555 |
Total paid | 133,852 | 131,796 |
Balance at end of period | $ 142,554 | $ 142,685 |
Liability for Unpaid Claims - R
Liability for Unpaid Claims - Reconciliation of Net Incurred and Paid Claims Development to Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Policy claims and other benefits payable: | ||
Life insurance | $ 191,206 | $ 186,429 |
Total | 333,760 | 333,294 |
Health Insurance [Member] | ||
Policy claims and other benefits payable: | ||
Total | $ 142,554 | $ 146,865 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Summary of Post-Retirement Benefit Costs by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 5,277 | $ 4,487 |
Interest cost | 5,493 | 5,550 |
Expected return on assets | (6,363) | (5,899) |
Amortization: | ||
Prior service cost | 119 | 119 |
Actuarial (gain) loss | 3,636 | 2,951 |
Direct recognition of expense | 0 | 0 |
Net periodic benefit cost | 8,162 | 7,208 |
Other Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 228 | 250 |
Expected return on assets | 0 | 0 |
Amortization: | ||
Prior service cost | 0 | 0 |
Actuarial (gain) loss | 23 | 39 |
Direct recognition of expense | 140 | 96 |
Net periodic benefit cost | $ 391 | $ 385 |
Postretirement Benefit Plans 44
Postretirement Benefit Plans - Pension Assets by Components at Fair Value (Detail) (Details) - Pension Benefits [Member] - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 365,774 | $ 377,624 |
% to Total | 100.00% | 100.00% |
Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 168,673 | $ 173,356 |
Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | 197,101 | 204,268 |
Corporate bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 173,091 | $ 180,506 |
% to Total | 47.00% | 48.00% |
Corporate bonds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 173,091 | $ 180,506 |
Corporate bonds [Member] | Financial [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 41,709 | $ 43,451 |
% to Total | 11.00% | 12.00% |
Corporate bonds [Member] | Financial [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 41,709 | $ 43,451 |
Corporate bonds [Member] | Utilities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 44,870 | $ 46,144 |
% to Total | 12.00% | 12.00% |
Corporate bonds [Member] | Utilities [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 44,870 | $ 46,144 |
Corporate bonds [Member] | Energy [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 23,846 | $ 25,023 |
% to Total | 7.00% | 7.00% |
Corporate bonds [Member] | Energy [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 23,846 | $ 25,023 |
Corporate bonds [Member] | Other corporate sectors [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 62,666 | $ 65,888 |
% to Total | 17.00% | 17.00% |
Corporate bonds [Member] | Other corporate sectors [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 62,666 | $ 65,888 |
Exchange traded fund [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 162,980 | $ 164,351 |
% to Total | 45.00% | 43.00% |
Exchange traded fund [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 162,980 | $ 164,351 |
Other bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 249 | $ 256 |
% to Total | 0.00% | 0.00% |
Other bonds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 249 | $ 256 |
Other long-term investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 2,439 | $ 2,304 |
% to Total | 1.00% | 1.00% |
Other long-term investments [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 2,439 | $ 2,304 |
Guaranteed annuity contract [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 21,322 | $ 21,202 |
% to Total | 6.00% | 6.00% |
Guaranteed annuity contract [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 21,322 | $ 21,202 |
Short-term investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 2,070 | $ 3,984 |
% to Total | 0.00% | 1.00% |
Short-term investments [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 2,070 | $ 3,984 |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 3,623 | $ 5,021 |
% to Total | 1.00% | 1.00% |
Other [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans-fair value of plan assets | $ 3,623 | $ 5,021 |
Postretirement Benefit Plans 45
Postretirement Benefit Plans - Pension Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Liabilities for defined benefit pension plan | $ 594,354 | $ 602,605 |
Qualified plan [Member] | Funded plan [Member] | Pension Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Liabilities for defined benefit pension plan | 509,526 | 518,140 |
Nonqualified plan [Member] | SERPs [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Liabilities for defined benefit pension plan | $ 84,828 | $ 84,465 |
Postretirement Benefit Plans 46
Postretirement Benefit Plans - Activity for the SERP (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Premiums paid for insurance coverage | $ 1,047 | $ 2,050 |
Liability | 594,354 | 602,605 |
SERPs [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total investments | 95,206 | 95,715 |
SERPs [Member] | Nonqualified plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Liability | 84,828 | 84,465 |
SERP (Active) [Member] | Nonqualified plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Liability | 82,200 | 81,457 |
SERP (Closed) [Member] | Nonqualified plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Liability | 2,628 | 3,008 |
Company owned life insurance [Member] | SERPs [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total investments | 41,608 | 40,273 |
Exchange traded fund [Member] | SERPs [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total investments | $ 53,598 | $ 55,442 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Weighted - Average Shares Outstanding (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Basic weighted average shares outstanding | 114,179,084 | 117,770,474 |
Weighted average dilutive options outstanding | 2,570,418 | 2,659,242 |
Diluted weighted average shares outstanding | 116,749,502 | 120,429,716 |
Antidilutive shares | 535,143 | 625,855 |
Business Segments - Reconciliat
Business Segments - Reconciliation of Segment Operating Information to Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue: | ||
Premium | $ 850,106 | $ 820,631 |
Net investment income | 218,084 | 208,282 |
Other income | 295 | 416 |
Total revenue | 1,068,485 | 1,029,329 |
Expenses: | ||
Policy benefits | 569,889 | 557,776 |
Required interest on reserves | 0 | 0 |
Required interest on DAC | 0 | 0 |
Amortization of acquisition costs | 129,620 | 125,908 |
Commissions, premium taxes, and non-deferred acquisition costs | 69,639 | 65,116 |
Insurance administrative expense | 55,472 | 51,913 |
Parent expense | 2,292 | 2,233 |
Stock-based compensation expense | 9,060 | 8,195 |
Interest expense | 21,622 | 20,699 |
Total benefits and expenses | 857,594 | 831,840 |
Subtotal | 210,891 | 197,489 |
Non-operating items | 0 | 0 |
Measure of segment profitability (pretax) | 210,891 | 197,489 |
Deduct applicable income taxes | (38,721) | (58,818) |
Net operating income | 172,170 | 138,671 |
Add back income taxes applicable to segment profitability | 38,721 | 58,818 |
Add (deduct) realized investment gains (losses) | 1,951 | (5,748) |
Income before income taxes | 212,842 | 191,741 |
Operating Segments [Member] | Life [Member] | ||
Revenue: | ||
Premium | 598,303 | 575,837 |
Total revenue | 598,303 | 575,837 |
Expenses: | ||
Policy benefits | 400,581 | 391,079 |
Required interest on reserves | (156,214) | (148,825) |
Required interest on DAC | 47,944 | 45,936 |
Amortization of acquisition costs | 103,777 | 99,905 |
Commissions, premium taxes, and non-deferred acquisition costs | 47,394 | 43,638 |
Total benefits and expenses | 443,482 | 431,733 |
Subtotal | 154,821 | 144,104 |
Measure of segment profitability (pretax) | 154,821 | 144,104 |
Operating Segments [Member] | Health [Member] | ||
Revenue: | ||
Premium | 251,798 | 244,791 |
Total revenue | 251,798 | 244,791 |
Expenses: | ||
Policy benefits | 160,619 | 157,751 |
Required interest on reserves | (20,404) | (18,975) |
Required interest on DAC | 6,013 | 5,809 |
Amortization of acquisition costs | 25,257 | 25,327 |
Commissions, premium taxes, and non-deferred acquisition costs | 22,265 | 21,502 |
Total benefits and expenses | 193,750 | 191,414 |
Subtotal | 58,048 | 53,377 |
Measure of segment profitability (pretax) | 58,048 | 53,377 |
Operating Segments [Member] | Annuity [Member] | ||
Revenue: | ||
Premium | 5 | 3 |
Total revenue | 5 | 3 |
Expenses: | ||
Policy benefits | 8,689 | 8,946 |
Required interest on reserves | (12,017) | (12,418) |
Required interest on DAC | 153 | 178 |
Amortization of acquisition costs | 586 | 676 |
Commissions, premium taxes, and non-deferred acquisition costs | 8 | 11 |
Total benefits and expenses | (2,581) | (2,607) |
Subtotal | 2,586 | 2,610 |
Measure of segment profitability (pretax) | 2,586 | 2,610 |
Operating Segments [Member] | Investment [Member] | ||
Revenue: | ||
Net investment income | 218,084 | 208,282 |
Total revenue | 218,084 | 208,282 |
Expenses: | ||
Required interest on reserves | 188,635 | 180,218 |
Required interest on DAC | (54,110) | (51,923) |
Interest expense | 21,622 | 20,699 |
Total benefits and expenses | 156,147 | 148,994 |
Subtotal | 61,937 | 59,288 |
Measure of segment profitability (pretax) | 61,937 | 59,288 |
Operating Segments [Member] | Other & Corporate [Member] | ||
Revenue: | ||
Other income | 323 | 451 |
Total revenue | 323 | 451 |
Expenses: | ||
Insurance administrative expense | 55,472 | 51,913 |
Parent expense | 2,292 | 2,233 |
Stock-based compensation expense | 9,060 | 8,195 |
Total benefits and expenses | 66,824 | 62,341 |
Subtotal | (66,501) | (61,890) |
Measure of segment profitability (pretax) | (66,501) | (61,890) |
Adjustments [Member] | ||
Revenue: | ||
Other income | (28) | (35) |
Total revenue | (28) | (35) |
Expenses: | ||
Policy benefits | ||
Commissions, premium taxes, and non-deferred acquisition costs | (28) | (35) |
Insurance administrative expense | ||
Total benefits and expenses | (28) | (35) |
Subtotal | 0 | 0 |
Non-operating items | 0 | 0 |
Measure of segment profitability (pretax) | $ 0 | $ 0 |