Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 28, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'TMK | ' |
Entity Registrant Name | 'TORCHMARK CORP | ' |
Entity Central Index Key | '0000320335 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 87,811,120 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Assets | ' | ' | |
Fixed maturities, available for sale, at fair value (amortized cost: 2014-$12,618,368 ; 2013-$12,488,875) | $13,618,451 | $12,879,133 | [1] |
Equity securities, at fair value (cost: 2014-$776 ; 2013-$875) | 1,309 | 1,884 | [1] |
Policy loans | 451,972 | 448,887 | [1] |
Other long-term investments | 12,641 | 13,207 | [1] |
Short-term investments | 109,065 | 76,890 | [1] |
Total investments | 14,193,438 | 13,420,001 | [1] |
Cash | 40,016 | 36,943 | [1] |
Accrued investment income | 209,801 | 200,038 | [1] |
Other receivables | 372,617 | 331,103 | [1] |
Deferred acquisition costs | 3,363,952 | 3,337,649 | [1] |
Goodwill | 441,591 | 441,591 | [1] |
Other assets | 442,562 | 424,419 | [1] |
Total assets | 19,063,977 | 18,191,744 | [1] |
Liabilities: | ' | ' | |
Future policy benefits | 11,376,058 | 11,256,155 | [1] |
Unearned and advance premiums | 77,911 | 74,174 | [1] |
Policy claims and other benefits payable | 231,269 | 223,380 | [1] |
Other policyholders' funds | 95,906 | 94,286 | [1] |
Total policy liabilities | 11,781,144 | 11,647,995 | [1] |
Current and deferred income taxes payable | 1,528,582 | 1,285,574 | [1] |
Other liabilities | 309,436 | 261,898 | [1] |
Short-term debt | 264,918 | 229,070 | [1] |
Long-term debt (fair value: 2014-$1,151,946 ; 2013-$1,360,461) | 991,176 | 990,865 | [1] |
Total liabilities | 14,875,256 | 14,415,402 | [1] |
Shareholders' equity: | ' | ' | |
Preferred stock, par value $1 per share-Authorized 5,000,000 shares; outstanding: -0- in 2014 and in 2013 | 0 | 0 | [1] |
Common stock, par value $1 per share-Authorized 320,000,000 shares; outstanding: (2014-100,812,123 issued, less 12,593,085 held in treasury and 2013-100,812,123 issued, less 11,310,536 held in treasury) | 100,812 | 100,812 | [1] |
Additional paid-in capital | 473,961 | 462,058 | [1] |
Accumulated other comprehensive income (loss) | 606,058 | 210,981 | [1] |
Retained earnings | 3,659,477 | 3,545,939 | [1] |
Treasury stock, at cost | -651,587 | -543,448 | [1] |
Total shareholders' equity | 4,188,721 | 3,776,342 | [1] |
Total liabilities and shareholders' equity | $19,063,977 | $18,191,744 | [1] |
[1] | Derived from audited financial statements |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, except Share data, unless otherwise specified | |||
Statement Of Financial Position [Abstract] | ' | ' | |
Fixed maturities, available for sale, amortized cost | $12,618,368 | $12,488,875 | [1] |
Equity securities, cost | 776 | 875 | [1] |
Long-term debt, fair value | $1,151,946 | $1,360,461 | [1] |
Preferred stock, par value | $1 | $1 | [1] |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | [1] |
Preferred stock, shares outstanding | 0 | 0 | [1] |
Common stock, par value | $1 | $1 | [1] |
Common stock, shares authorized | 320,000,000 | 320,000,000 | [1] |
Common stock, shares issued | 100,812,123 | 100,812,123 | [1] |
Common stock, shares held in treasury | 12,593,085 | 11,310,536 | [1] |
[1] | Derived from audited financial statements |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenue: | ' | ' |
Life premium | $489,058 | $470,813 |
Health premium | 329,863 | 313,871 |
Other premium | 99 | 130 |
Total premium | 819,020 | 784,814 |
Net investment income | 181,000 | 176,839 |
Realized investment gains (losses) | 16,619 | -1,229 |
Other-than-temporary impairments | 0 | -2,678 |
Other income | 481 | 470 |
Total revenue | 1,017,120 | 958,216 |
Benefits and expenses: | ' | ' |
Life policyholder benefits | 320,176 | 305,141 |
Health policyholder benefits | 255,718 | 236,127 |
Other policyholder benefits | 10,623 | 10,735 |
Total policyholder benefits | 586,517 | 552,003 |
Amortization of deferred acquisition costs | 104,733 | 101,714 |
Commissions, premium taxes, and non-deferred acquisition costs | 59,378 | 58,251 |
Other operating expense | 56,956 | 52,308 |
Interest expense | 19,049 | 20,877 |
Total benefits and expenses | 826,633 | 785,153 |
Income before income taxes | 190,487 | 173,063 |
Income taxes | -57,631 | -53,431 |
Net income | $132,856 | $119,632 |
Basic net income per share | $1.50 | $1.28 |
Diluted net income per share | $1.48 | $1.27 |
Dividends declared per common share | $0.19 | $0.17 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net income | $132,856 | $119,632 |
Unrealized gains (losses) on securities: | ' | ' |
Less applicable taxes | -213,667 | 44,633 |
Unrealized investment gains (losses), net of tax | 396,890 | -79,370 |
Unrealized gains (losses) attributable to deferred acquisition costs | -4,228 | 2,957 |
Less applicable taxes | 1,480 | -1,035 |
Unrealized gains (losses) attributable to deferred acquisition costs, net of tax | -2,748 | 1,922 |
Foreign exchange translation adjustments, other than securities | -1,177 | -1,033 |
Less applicable taxes | 439 | 284 |
Foreign exchange translation adjustments, other than securities, net of tax | -738 | -749 |
Amortization of pension costs | 2,574 | 4,543 |
Less applicable taxes | -901 | -1,591 |
Amortization of pension costs, net of tax | 1,673 | 2,952 |
Other comprehensive income (loss) | 395,077 | -75,245 |
Comprehensive income (loss) | 527,933 | 44,387 |
Securities [Member] | ' | ' |
Unrealized gains (losses) on securities: | ' | ' |
Unrealized holding gains (losses) arising during period | 629,066 | -129,121 |
Reclassification adjustment for (gains) losses on securities included in net income | -16,619 | 2,561 |
Reclassification adjustment for amortization of (discount) and premium | -2,227 | -1,882 |
Foreign exchange adjustment on securities recorded at fair value | -871 | 5,212 |
Unrealized gains (losses) on securities | 609,349 | -123,230 |
Other Investments [Member] | ' | ' |
Unrealized gains (losses) on securities: | ' | ' |
Unrealized gains (losses) on other investments | 1,208 | -773 |
Total unrealized investment gains (losses) | $610,557 | ($124,003) |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (Unaudited) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Statement Of Cash Flows [Abstract] | ' | ' | |
Cash provided from operations | $274,850 | $290,374 | |
Long-term investments sold or matured: | ' | ' | |
Fixed maturities available for sale - sold | 16,049 | 46,361 | |
Fixed maturities available for sale - matured, called, and repaid | 22,288 | 150,541 | |
Equities | 700 | 14,000 | |
Other long-term investments | 68 | 119 | |
Total long-term investments sold or matured | 39,105 | 211,021 | |
Long-term investments acquired: | ' | ' | |
Fixed maturities | -158,344 | -340,891 | |
Other long-term investments | -20 | -45 | |
Total long-term investments acquired | -158,364 | -340,936 | |
Net increase in policy loans | -3,085 | -3,961 | |
Net (increase) decrease in short-term investments | -32,175 | -81,390 | |
Net change in payable or receivable for securities | -902 | -44,187 | |
Disposition of properties | 0 | 200 | |
Additions to properties | -5,075 | -855 | |
Investment in low-income housing interests | -15,042 | -7,738 | |
Cash used for investment activities | -175,538 | -267,846 | |
Cash provided from (used for) financing activities: | ' | ' | |
Proceeds from exercise of stock options | 13,954 | 31,396 | |
Net borrowings (repayments) of commercial paper | 35,848 | 49,825 | |
Excess tax benefit from stock option exercises | 4,366 | 5,892 | |
Acquisition of treasury stock | -125,635 | -129,239 | |
Cash dividends paid to shareholders | -15,219 | -14,136 | |
Net receipts (withdrawals) from deposit-type products | -17,181 | -6,705 | |
Cash provided by (used for) financing activities | -103,867 | -62,967 | |
Effect of foreign exchange rate changes on cash | 7,628 | 3,985 | |
Net increase (decrease) in cash | 3,073 | -36,454 | |
Cash at beginning of year | 36,943 | [1] | 61,710 |
Cash at end of period | $40,016 | $25,256 | |
[1] | Derived from audited financial statements |
Accounting_Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Accounting Policies | ' |
Note A—Accounting Policies | |
The accompanying condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the annual disclosures required by accounting principles generally accepted in the United States of America (GAAP). However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the consolidated financial position at March 31, 2014, and the consolidated results of operations, comprehensive income, and cash flows for the periods ended March 31, 2014 and 2013. 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 on February 28, 2014. | |
New Unadopted Accounting Guidance: The FASB has issued new accounting guidance, Investments-Equity Method and Joint Ventures: Accounting for Investments in Qualified Affordable Housing Projects (ASU 2014-01). This accounting guidance replaces the effective yield method of accounting with respect to investments in qualified affordable housing projects and, if certain conditions are present, provides for a new method of accounting. The new method of accounting allows an investor to amortize the cost of its investment based on the proportion of the tax credits/benefits received during the year to the total expected tax credits/benefits to be received over the life of the investment and will be recognized in the Consolidated Statements of Operations as a component of “Income tax expense.” Additional disclosures are required concerning investments in qualified affordable housing. | |
The new guidance is effective for Torchmark beginning January 1, 2015, with early adoption permitted. The guidance continues to permit the effective-yield method for investments held as of the date of adoption. Adoption is required on a retrospective basis. Torchmark is currently evaluating the impact of adoption but does not expect that adoption will have a material impact on net income or shareholders’ equity. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share | ' | ||||||||
Note B—Earnings Per Share | |||||||||
A reconciliation of basic and diluted weighted-average shares outstanding is as follows. | |||||||||
For the three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Basic weighted average shares outstanding | 88,775,643 | 93,580,778 | |||||||
Weighted average dilutive options outstanding | 1,248,050 | 989,132 | |||||||
Diluted weighted average shares outstanding | 90,023,693 | 94,569,910 | |||||||
Antidilutive shares | 3,513 | 0 | |||||||
Stock Split: Torchmark declared a three for two stock split to be paid in the form of a 50% stock dividend on all of the Company’s outstanding common stock. The record date for the three for two stock split will be the close of business on June 2, 2014. On July 1, 2014, the payment date, holders of Torchmark common stock will receive one additional share of stock for every two shares held. The Company will pay cash for the fractional shares that result from the stock split. All share and per share amounts will be adjusted to reflect this stock split subsequent to the effective date. |
Postretirement_Benefit_Plans
Postretirement Benefit Plans | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Postretirement Benefit Plans | ' | ||||||||||||||||
Note C—Postretirement Benefit Plans | |||||||||||||||||
The following tables present a summary of post-retirement benefit costs by component. | |||||||||||||||||
Components of Post-Retirement Benefit Costs | |||||||||||||||||
Three Months ended March 31, | |||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 3,232 | $ | 3,765 | $ | 56 | $ | 85 | |||||||||
Interest cost | 4,819 | 4,264 | 147 | 260 | |||||||||||||
Expected return on assets | (4,753 | ) | (4,356 | ) | 0 | 0 | |||||||||||
Amortization: | |||||||||||||||||
Prior service cost | 528 | 571 | 0 | 0 | |||||||||||||
Actuarial (gain) loss | 2,044 | 4,063 | 0 | 0 | |||||||||||||
Direct recognition of (gain) loss | 0 | 0 | (62 | ) | 0 | ||||||||||||
Net periodic benefit cost | $ | 5,870 | $ | 8,307 | $ | 141 | $ | 345 | |||||||||
The following chart presents assets at fair value for the defined-benefit pension plans at March 31, 2014 and the prior-year end. | |||||||||||||||||
Pension Assets by Component | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
Amount | % | Amount | % | ||||||||||||||
Corporate debt | $ | 158,546 | 53 | $ | 147,445 | 51 | |||||||||||
Other fixed maturities | 275 | 0 | 267 | 0 | |||||||||||||
Equity securities | 117,176 | 39 | 115,287 | 38 | |||||||||||||
Short-term investments | 1,738 | 1 | 13,318 | 5 | |||||||||||||
Guaranteed annuity contract | 13,723 | 5 | 13,769 | 5 | |||||||||||||
Other | 7,006 | 2 | 1,667 | 1 | |||||||||||||
Total | $ | 298,464 | 100 | $ | 291,753 | 100 | |||||||||||
The liability for the funded defined-benefit pension plans was $331 million at March 31, 2014 and $322 million at December 31, 2013. No cash contributions were made to the qualified pension plans during the three months ended March 31, 2014. Torchmark expects cash contributions to not exceed $20 million during the remainder of 2014. With respect to the Company’s non-qualified supplemental retirement plan, life insurance policies on the lives of plan participants have been established with an unaffiliated carrier to fund a portion of the Company’s obligations under the plan. These policies, as well as investments deposited with an unaffiliated trustee, were previously placed in a Rabbi Trust to provide for payment of the plan obligations. At March 31, 2014, the combined value of the insurance policies and investments in the Rabbi Trust to support plan liabilities were $67 million, compared with $66 million at year end 2013. Since this plan is non-qualified, the value of the insurance policies and investments are recorded as other assets in the Consolidated Balance Sheets and are not included in the chart of plan assets above. The liability for the non-qualified pension plan was $59 million at March 31, 2014 and $58 million at December 31, 2013. |
Investments
Investments | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Investments Schedule [Abstract] | ' | ||||||||||||||||||||||||
Investments | ' | ||||||||||||||||||||||||
Note D—Investments | |||||||||||||||||||||||||
Portfolio Composition: | |||||||||||||||||||||||||
A summary of fixed maturities and equity securities available for sale by cost or amortized cost and estimated fair value at March 31, 2014 is as follows. | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair Value | Total Fixed | |||||||||||||||||||||
Cost | Gains | Losses | Maturities* | ||||||||||||||||||||||
Fixed maturities available for sale: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. Government direct, guaranteed, and government-sponsored enterprises | $ | 430,777 | $ | 329 | $ | (51,050 | ) | $ | 380,056 | 3 | % | ||||||||||||||
States, municipalities, and political subdivisions | 1,278,263 | 105,064 | (3,863 | ) | 1,379,464 | 10 | |||||||||||||||||||
Foreign governments | 43,642 | 535 | (17 | ) | 44,160 | 0 | |||||||||||||||||||
Corporates | 10,265,282 | 1,065,442 | (147,287 | ) | 11,183,437 | 82 | |||||||||||||||||||
Collateralized debt obligations | 65,014 | 5,950 | (6,634 | ) | 64,330 | 1 | |||||||||||||||||||
Other asset-backed securities | 32,612 | 2,872 | (36 | ) | 35,448 | 0 | |||||||||||||||||||
Redeemable preferred stocks | 502,778 | 35,706 | (6,928 | ) | 531,556 | 4 | |||||||||||||||||||
Total fixed maturities | 12,618,368 | 1,215,898 | (215,815 | ) | 13,618,451 | 100 | % | ||||||||||||||||||
Equity securities | 776 | 533 | 0 | 1,309 | |||||||||||||||||||||
Total fixed maturities and equity securities | $ | 12,619,144 | $ | 1,216,431 | $ | (215,815 | ) | $ | 13,619,760 | ||||||||||||||||
* | At fair value | ||||||||||||||||||||||||
A schedule of fixed maturities by contractual maturity date at March 31, 2014 is shown below on an amortized cost basis and on a fair value basis. Actual maturity dates could differ from contractual maturities due to call or prepayment provisions. | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Fixed maturities available for sale: | |||||||||||||||||||||||||
Due in one year or less | $ | 192,438 | $ | 196,987 | |||||||||||||||||||||
Due from one to five years | 410,166 | 452,731 | |||||||||||||||||||||||
Due from five to ten years | 948,053 | 1,039,939 | |||||||||||||||||||||||
Due from ten to twenty years | 3,170,200 | 3,507,188 | |||||||||||||||||||||||
Due after twenty years | 7,796,872 | 8,318,545 | |||||||||||||||||||||||
Mortgage-backed and asset-backed securities | 100,639 | 103,061 | |||||||||||||||||||||||
$ | 12,618,368 | $ | 13,618,451 | ||||||||||||||||||||||
Selected information about sales of fixed maturities is as follows. | |||||||||||||||||||||||||
For the three months ended March 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Proceeds from sales | $ | 16,050 | $ | 46,361 | |||||||||||||||||||||
Gross realized gains | 15,925 | 991 | |||||||||||||||||||||||
Gross realized losses | 0 | (776 | ) | ||||||||||||||||||||||
Fair Value Measurements: | |||||||||||||||||||||||||
The following table represents assets measured at fair value on a recurring basis. | |||||||||||||||||||||||||
Fair Value Measurements at March 31, 2014 Using: | |||||||||||||||||||||||||
Description | Quoted Prices | Significant | Significant | Total Fair | |||||||||||||||||||||
in Active | Other | Unobservable | Value | ||||||||||||||||||||||
Markets for | Observable | Inputs (Level 3) | |||||||||||||||||||||||
Identical | Inputs (Level 2) | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Fixed maturities available for sale: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. Government direct, guaranteed, and government-sponsored enterprises | $ | 0 | $ | 380,056 | $ | 0 | $ | 380,056 | |||||||||||||||||
States, municipalities, and political subdivisions | 0 | 1,379,464 | 0 | 1,379,464 | |||||||||||||||||||||
Foreign governments | 0 | 44,160 | 0 | 44,160 | |||||||||||||||||||||
Corporates | 56,745 | 10,780,662 | 346,030 | 11,183,437 | |||||||||||||||||||||
Collateralized debt obligations | 0 | 0 | 64,330 | 64,330 | |||||||||||||||||||||
Other asset-backed securities | 0 | 35,448 | 0 | 35,448 | |||||||||||||||||||||
Redeemable preferred stocks | 22,922 | 508,634 | 0 | 531,556 | |||||||||||||||||||||
Total fixed maturities | 79,667 | 13,128,424 | 410,360 | 13,618,451 | |||||||||||||||||||||
Equity securities | 533 | 0 | 776 | 1,309 | |||||||||||||||||||||
Total fixed maturities and equity securities | $ | 80,200 | $ | 13,128,424 | $ | 411,136 | $ | 13,619,760 | |||||||||||||||||
Percent of total | 0.6 | % | 96.4 | % | 3 | % | 100 | % | |||||||||||||||||
Analysis of Changes in Fair Value Measurements Using | |||||||||||||||||||||||||
Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||||||||||
Asset- | Collateralized | Corporates (1) | Equities | Total | |||||||||||||||||||||
backed | debt | ||||||||||||||||||||||||
securities | obligations | ||||||||||||||||||||||||
Balance at January 1, 2014 | $ | 0 | $ | 58,205 | $ | 300,300 | $ | 776 | $ | 359,281 | |||||||||||||||
Total gains or losses: | |||||||||||||||||||||||||
Included in realized gains/losses | 0 | 15,924 | 1 | 0 | 15,925 | ||||||||||||||||||||
Included in other comprehensive income | 0 | 7,283 | 12,772 | 0 | 20,055 | ||||||||||||||||||||
Acquisitions | 0 | 0 | 33,791 | 0 | 33,791 | ||||||||||||||||||||
Sales | 0 | (16,049 | ) | (1 | ) | 0 | (16,050 | ) | |||||||||||||||||
Amortization | 0 | 1,307 | 3 | 0 | 1,310 | ||||||||||||||||||||
Other (2) | 0 | (2,340 | ) | (836 | ) | 0 | (3,176 | ) | |||||||||||||||||
Transfers in and/or out of Level 3 (3) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Balance at March 31, 2014 | $ | 0 | $ | 64,330 | $ | 346,030 | $ | 776 | $ | 411,136 | |||||||||||||||
Percent of total fixed maturity and equity securities | 0 | % | 0.5 | % | 2.5 | % | 0 | % | 3 | % | |||||||||||||||
For the three months ended March 31, 2013 | |||||||||||||||||||||||||
Asset- | Collateralized | Corporates (1) | Equities | Total | |||||||||||||||||||||
backed | debt | ||||||||||||||||||||||||
securities | obligations | ||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 7,981 | $ | 46,571 | $ | 231,072 | $ | 739 | $ | 286,363 | |||||||||||||||
Total gains or losses: | |||||||||||||||||||||||||
Included in realized gains/losses | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Included in other comprehensive income | 426 | 2,852 | (863 | ) | 0 | 2,415 | |||||||||||||||||||
Acquisitions | 0 | 0 | 62,310 | 0 | 62,310 | ||||||||||||||||||||
Sales | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Amortization | (57 | ) | 691 | (3 | ) | 0 | 631 | ||||||||||||||||||
Other (2) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Transfers in and/or out of Level 3 (3) | (8,350 | ) | 0 | (8,181 | ) | 0 | (16,531 | ) | |||||||||||||||||
Balance at March 31, 2013 | $ | 0 | $ | 50,114 | $ | 284,335 | $ | 739 | $ | 335,188 | |||||||||||||||
Percent of total fixed maturity and equity securities | 0 | % | 0.4 | % | 2.1 | % | 0 | % | 2.5 | % | |||||||||||||||
-1 | Includes redeemable preferred stocks. | ||||||||||||||||||||||||
-2 | Includes capitalized interest, foreign exchange adjustments, and principal repayments. | ||||||||||||||||||||||||
-3 | Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available. | ||||||||||||||||||||||||
Other-Than-Temporary Impairments: | |||||||||||||||||||||||||
During the first quarter of 2013, Torchmark wrote down investment real estate in the amount of $2.7 million pretax ($1.7 million after tax) because of other-than-temporary impairment. There were no additional other-than-temporary impairments during the three-month periods ended March 31, 2014 or 2013. | |||||||||||||||||||||||||
Unrealized Loss Analysis: | |||||||||||||||||||||||||
The following table discloses unrealized investment losses by class of investment at March 31, 2014 for the period of time in a loss position. Torchmark considers these investments not to be other-than-temporarily impaired. | |||||||||||||||||||||||||
Analysis of Gross Unrealized Investment Losses | |||||||||||||||||||||||||
At March 31, 2014 | |||||||||||||||||||||||||
Less than | Twelve Months | Total | |||||||||||||||||||||||
Twelve Months | or Longer | ||||||||||||||||||||||||
Description of Securities | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
Fixed maturities available for sale: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. Government direct, guaranteed, and government-sponsored enterprises | $ | 63,633 | $ | (6,031 | ) | $ | 293,591 | $ | (45,019 | ) | $ | 357,224 | $ | (51,050 | ) | ||||||||||
States, municipalities and political subdivisions | 80,424 | (3,167 | ) | 10,960 | (696 | ) | 91,384 | (3,863 | ) | ||||||||||||||||
Foreign governments | 895 | (1 | ) | 6,092 | (16 | ) | 6,987 | (17 | ) | ||||||||||||||||
Corporates | 1,485,588 | (72,557 | ) | 718,802 | (74,730 | ) | 2,204,390 | (147,287 | ) | ||||||||||||||||
Collateralized debt obligations | 0 | 0 | 14,715 | (6,634 | ) | 14,715 | (6,634 | ) | |||||||||||||||||
Other asset-backed securities | 0 | 0 | 2,951 | (36 | ) | 2,951 | (36 | ) | |||||||||||||||||
Redeemable preferred stocks | 47,953 | (926 | ) | 76,162 | (6,002 | ) | 124,115 | (6,928 | ) | ||||||||||||||||
Total fixed maturities | 1,678,493 | (82,682 | ) | 1,123,273 | (133,133 | ) | 2,801,766 | (215,815 | ) | ||||||||||||||||
Equity securities | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||
Total fixed maturities and equity securities | $ | 1,678,493 | $ | (82,682 | ) | $ | 1,123,273 | $ | (133,133 | ) | $ | 2,801,766 | $ | (215,815 | ) | ||||||||||
Additional information about investments in an unrealized loss position is as follows. | |||||||||||||||||||||||||
Less than | Twelve | Total | |||||||||||||||||||||||
Twelve | Months | ||||||||||||||||||||||||
Months | or Longer | ||||||||||||||||||||||||
Number of issues (Cusip numbers) held: | |||||||||||||||||||||||||
As of March 31, 2014 | 272 | 207 | 479 | ||||||||||||||||||||||
As of December 31, 2013 | 462 | 130 | 592 | ||||||||||||||||||||||
Torchmark’s entire fixed-maturity and equity portfolio consisted of 1,612 issues at March 31, 2014 and 1,619 issues at December 31, 2013. The weighted average quality rating of all unrealized loss positions as of March 31, 2014 was A-. Although Torchmark’s fixed-maturity investments are available for sale, Torchmark’s management generally does not intend to sell and does not believe it will be required to sell any securities which are temporarily impaired before they recover due to the strong and stable cash flows generated by its insurance products. |
Supplemental_Information_about
Supplemental Information about Changes to Accumulated Other Comprehensive Income | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Supplemental Information about Changes to Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||
Note E—Supplemental Information about Changes to Accumulated Other Comprehensive Income | |||||||||||||||||||||
An analysis in the change in balance by component of Accumulated Other Comprehensive Income is as follows for the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||
Components of Accumulated Other Comprehensive Income | |||||||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||||||
Available | Deferred | Foreign | Pension | Total | |||||||||||||||||
for Sale | Acquisition | Exchange | Adjustments | ||||||||||||||||||
Assets | Costs | ||||||||||||||||||||
Balance at January 1, 2014 | $ | 256,196 | $ | (6,728 | ) | $ | 24,866 | $ | (63,353 | ) | $ | 210,981 | |||||||||
Other comprehensive income (loss) before reclassifications, net of tax | 409,139 | (2,748 | ) | (738 | ) | 0 | 405,653 | ||||||||||||||
Reclassifications, net of tax | (12,249 | ) | 0 | 0 | 1,673 | (10,576 | ) | ||||||||||||||
Other comprehensive income (loss) | 396,890 | (2,748 | ) | (738 | ) | 1,673 | 395,077 | ||||||||||||||
Balance at March 31, 2014 | $ | 653,086 | $ | (9,476 | ) | $ | 24,128 | $ | (61,680 | ) | $ | 606,058 | |||||||||
For the three months ended March 31, 2013 | |||||||||||||||||||||
Available | Deferred | Foreign | Pension | Total | |||||||||||||||||
for Sale | Acquisition | Exchange | Adjustments | ||||||||||||||||||
Assets | Costs | ||||||||||||||||||||
Balance at January 1, 2013 | $ | 1,024,367 | $ | (16,417 | ) | $ | 26,608 | $ | (109,283 | ) | $ | 925,275 | |||||||||
Other comprehensive income (loss) before reclassifications, net of tax | (81,040 | ) | 1,922 | (749 | ) | 0 | (79,867 | ) | |||||||||||||
Reclassifications, net of tax | 1,670 | 0 | 0 | 2,952 | 4,622 | ||||||||||||||||
Other comprehensive income (loss) | (79,370 | ) | 1,922 | (749 | ) | 2,952 | (75,245 | ) | |||||||||||||
Balance at March 31, 2013 | $ | 944,997 | $ | (14,495 | ) | $ | 25,859 | $ | (106,331 | ) | $ | 850,030 | |||||||||
Reclassifications out of Accumulated Other Comprehensive Income are presented below for the three months March 31, 2014 and 2013. | |||||||||||||||||||||
Reclassification Adjustments | |||||||||||||||||||||
Three months ended March 31, | Affected line items in the | ||||||||||||||||||||
Component Line Item | 2014 | 2013 | Statement of Operations | ||||||||||||||||||
Unrealized gains (losses) on available for sale assets: | |||||||||||||||||||||
Realized (gains) losses | $ | (16,619 | ) | $ | 2,561 | Realized investment gains (losses) | |||||||||||||||
Amortization of (discount) premium | (2,227 | ) | (1,882 | ) | Net investment income | ||||||||||||||||
Total before tax | (18,846 | ) | 679 | ||||||||||||||||||
Tax | 6,597 | 991 | Income Taxes | ||||||||||||||||||
Total after tax | (12,249 | ) | 1,670 | ||||||||||||||||||
Pension adjustments: | |||||||||||||||||||||
Amortization of prior service cost | 528 | 571 | Other operating expenses | ||||||||||||||||||
Amortization of actuarial gain (loss) | 2,046 | 3,972 | Other operating expenses | ||||||||||||||||||
Total before tax | 2,574 | 4,543 | |||||||||||||||||||
Tax | (901 | ) | (1,591 | ) | Income Taxes | ||||||||||||||||
Total after tax | 1,673 | 2,952 | |||||||||||||||||||
Total reclassifications (after tax) | $ | (10,576 | ) | $ | 4,622 | ||||||||||||||||
Business_Segments
Business Segments | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||||||
Business Segments | ' | ||||||||||||||||||||||||||||||||
NOTE F—Business Segments | |||||||||||||||||||||||||||||||||
Torchmark is comprised of life insurance companies which primarily market individual life and supplemental health insurance products through niche distribution systems to middle income Americans. Torchmark’s core operations are insurance marketing and underwriting, and management of its investments. Insurance marketing and underwriting is segmented by the types of insurance products offered: life, health, Medicare Part D, and annuity. Effective January 1, 2014, Torchmark reorganized its segment structure to separate its Medicare Part D health insurance business from its other health insurance activities as a stand-alone segment. Management has concluded that Medicare Part D meets the criteria of a distinct segment. Previously, Part D was included in the health segment. Prior periods’ segment results have been retrospectively adjusted for comparability. Premium income for Medicare Part D health insurance is included with the premium for other health products in the Consolidated Statements of Operations. Annuity revenue is classified as “Other premium.” Management’s measure of profitability for each insurance segment is insurance underwriting margin, which is underwriting income before other income and insurance administrative expenses. It represents the profit margin on insurance products before administrative expenses, and is calculated by deducting net policy obligations (claims incurred and change in reserves), commissions and other acquisition expenses from premium revenue. Torchmark further views the profitability of each insurance product segment by the marketing groups that distribute the products of that segment: direct response, independent, or captive agencies. | |||||||||||||||||||||||||||||||||
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. Required interest related to the net policy liabilities is not included in the various insurance underwriting segments but is shown in the investment segment as a reduction to net investment income. We believe this presentation facilitates a more meaningful analysis of the Company’s underwriting and investment performance as the underwriting results are based on premiums, claims, and expenses and are not affected by unanticipated fluctuations in investment yields. | |||||||||||||||||||||||||||||||||
As noted, Torchmark’s “core operations” are insurance and investment management. The insurance segments issue policies for which premiums are collected for the eventual payment of policy benefits. In addition to policy benefits, operating expenses are incurred including acquisition costs, administrative expenses, and taxes. Because life and health contracts can be long term, premium receipts in excess of current expenses are invested. Investment activities, conducted by the investment segment, focus on seeking quality investments with a yield and term appropriate to support the insurance product obligations. These investments generally consist of fixed maturities, and, over the long term, the expected yields are taken into account when setting insurance premium rates and product profitability expectations. As a result, fixed maturities are generally held for long periods to support the liabilities, and Torchmark generally expects to hold investments until maturity. Dispositions of investments occur from time to time, generally as a result of credit concerns, calls by issuers, or other factors usually beyond the control of management. | |||||||||||||||||||||||||||||||||
Dispositions are sometimes required in order to maintain the Company’s investment policies and objectives. Investments are also occasionally written down as a result of other-than-temporary impairment. Torchmark does not actively trade investments. As a result, realized gains and losses from the disposition and write down of investments are generally incidental to operations and are not considered a material factor in insurance pricing or product profitability. While from time to time these realized gains and losses could be significant to net income in the period in which they occur, they generally have a limited effect on the yield of the total investment portfolio. Further, because the proceeds of the disposals are reinvested in the portfolio, the disposals have little effect on the size of the portfolio and the income from the reinvestments is included in net investment income. Therefore, management removes realized investment gains and losses from results of core operations when evaluating the performance of the Company. For this reason, these gains and losses are excluded from Torchmark’s operating segments. | |||||||||||||||||||||||||||||||||
Torchmark accounts for its stock options and restricted stock under current accounting guidance requiring stock options and stock grants to be expensed based on fair value at the time of grant. Management considers stock compensation expense to be an expense of the Parent Company. Therefore, stock compensation expense is treated as a corporate expense in Torchmark’s segment analysis. | |||||||||||||||||||||||||||||||||
Torchmark provides coverage under the Medicare Part D prescription drug plan for Medicare beneficiaries. In accordance with GAAP, Part D premiums are recognized evenly throughout the year when they become due but benefit costs are recognized when the costs are incurred. Due to the design of the Part D product, premiums are evenly distributed throughout the year, but benefit costs are higher earlier in the year. As a result, under GAAP, benefit costs can exceed premiums in the first part of the year, but be less than premiums during the remainder of the year. In order to more closely match the benefit cost with the associated revenue for interim periods, Torchmark defers these excess benefits for segment reporting purposes. In addition, GAAP recognizes in each quarter a government risk-sharing premium adjustment consistent with the contract as if the quarter represented an entire contract period. These quarterly risk-sharing adjustments are removed in the segment analysis because the actual contract payments are based upon the experience of the full contract year, not the experience of interim periods. For the entire year, Torchmark expects its benefit ratio to be in line with pricing and does not expect to receive any government risk-sharing premium. For the full year of 2013, the total premiums and benefits were the same under this alternative method as they were under GAAP and are expected to be essentially the same in 2014. The Company’s presentation results in the underwriting margin percentage of each interim period reflecting the expected margin percentage for the full year. | |||||||||||||||||||||||||||||||||
An analysis of the adjustments for the difference in the interim results as presented for segment purposes and GAAP for Medicare Part D is as follows. | |||||||||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Benefit costs deferred | $ | 47,671 | $ | 28,304 | |||||||||||||||||||||||||||||
Government risk-sharing premium adjustment | (27,395 | ) | (15,624 | ) | |||||||||||||||||||||||||||||
Pre-tax addition to segment interim period income | $ | 20,276 | $ | 12,680 | |||||||||||||||||||||||||||||
After tax amount | $ | 13,179 | $ | 8,242 | |||||||||||||||||||||||||||||
Additionally, management does not view the risk-sharing premium for Medicare Part D as a component of premium income, and accordingly adjusts health premium income in its segment analysis. A reconciliation of health premium included in the segment analysis with health premium as reported in the Consolidated Statements of Operations is presented in the following table. | |||||||||||||||||||||||||||||||||
Three months ended March 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | % Change | |||||||||||||||||||||||||||||||
Premium per segment analysis: | |||||||||||||||||||||||||||||||||
Medicare Part D premium | $ | 83,033 | $ | 76,720 | 8 | ||||||||||||||||||||||||||||
Other health premium | 219,435 | 221,527 | (1 | ) | |||||||||||||||||||||||||||||
Part D risk sharing adjustment | 27,395 | 15,624 | 75 | ||||||||||||||||||||||||||||||
Health premium per Consolidated Statements of Operations | $ | 329,863 | $ | 313,871 | 5 | ||||||||||||||||||||||||||||
Torchmark has invested in various limited partnerships that provide investment returns through the provision of low-income housing tax credits and other related Federal income tax benefits to the Company. The investment returns from a portion of the interests are guaranteed by unrelated third-parties. Under GAAP, expenses associated with the amortization of the guaranteed interests are required to be reflected in income tax expense. In contrast, GAAP requires the expenses associated with the amortization of non-guaranteed interests to be reflected as a component of “Net investment income.” All of the investment returns from investing in these guaranteed and non-guaranteed limited partnerships interests are in the form of income tax benefits reflected in income tax expense. Management believes including the amortization expense associated with the non-guaranteed as well as the guaranteed interests in income tax expense provides a more appropriate matching of the expense with the related income. For this reason, amortization expense of the non-guaranteed interests is included in “Income taxes” and not “Net investment income” for segment reporting purposes. As noted in Note A—Accounting Policies under the caption “New Unadopted Accounting Guidance,” new accounting guidance related to low-income housing investments will conform more closely with Torchmark’s segment reporting. | |||||||||||||||||||||||||||||||||
During the first three months of 2014, Torchmark accrued for certain litigation cases in the net amount of $3.7 million ($2.4 million after tax) that were not directly related to its insurance operations. Additionally, Torchmark received $1.2 million ($752 thousand after tax) in settlement of litigation regarding investments. Torchmark removes from its segment analysis amounts such as these that do not relate to its core insurance operations. | |||||||||||||||||||||||||||||||||
The following tables total the components of Torchmark’s operating segments and reconcile these operating results to its pretax income and each significant line item in its Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||
Reconciliation of Segment Operating Information to the Consolidated Statement of Operations | |||||||||||||||||||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||||||||||||||||||
Life | Health | Medicare | Annuity | Investment | Other & | Adjustments | Consolidated | ||||||||||||||||||||||||||
Part D | Corporate | ||||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||
Premium | $ | 489,058 | $ | 219,435 | $ | 83,033 | $ | 99 | $ | 27,395 | (1) | $ | 819,020 | ||||||||||||||||||||
Net investment income | $ | 188,051 | (7,051 | )(4) | 181,000 | ||||||||||||||||||||||||||||
Other income | $ | 544 | (63 | )(3) | 481 | ||||||||||||||||||||||||||||
Total revenue | 489,058 | 219,435 | 83,033 | 99 | 188,051 | 544 | 20,281 | 1,000,501 | |||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||
Policy benefits | 320,176 | 141,786 | 66,261 | 10,623 | 47,671 | (1) | 586,517 | ||||||||||||||||||||||||||
Required interest on: | |||||||||||||||||||||||||||||||||
Policy reserves | (130,511 | ) | (15,632 | ) | (13,791 | ) | 159,934 | 0 | |||||||||||||||||||||||||
Deferred acquisition costs | 41,690 | 5,598 | 175 | 389 | (47,852 | ) | 0 | ||||||||||||||||||||||||||
Amortization of acquisition costs | 83,600 | 18,608 | 705 | 1,820 | 104,733 | ||||||||||||||||||||||||||||
Commissions, premium taxes, and non-deferred acquisition costs | 33,484 | 19,618 | 6,326 | 13 | (63 | )(3) | 59,378 | ||||||||||||||||||||||||||
Insurance administrative expense (2) | 44,211 | 2,493 | (5) | 46,704 | |||||||||||||||||||||||||||||
Parent expense | 1,743 | 1,743 | |||||||||||||||||||||||||||||||
Stock compensation expense | 8,509 | 8,509 | |||||||||||||||||||||||||||||||
Interest expense | 19,049 | 19,049 | |||||||||||||||||||||||||||||||
Total expenses | 348,439 | 169,978 | 73,467 | (946 | ) | 131,131 | 54,463 | 50,101 | 826,633 | ||||||||||||||||||||||||
Subtotal | 140,619 | 49,457 | 9,566 | 1,045 | 56,920 | (53,919 | ) | (29,820 | ) | 173,868 | |||||||||||||||||||||||
Nonoperating items | 22,769 | (1,5) | 22,769 | ||||||||||||||||||||||||||||||
Amortization of low-income housing | 7,051 | (4) | 7,051 | ||||||||||||||||||||||||||||||
Measure of segment profitability (pretax) | $ | 140,619 | $ | 49,457 | $ | 9,566 | $ | 1,045 | $ | 56,920 | $ | (53,919 | ) | $ | 0 | 203,688 | |||||||||||||||||
Deduct applicable income taxes | (66,835 | ) | |||||||||||||||||||||||||||||||
Segment profits after tax | 136,853 | ||||||||||||||||||||||||||||||||
Add back income taxes applicable to segment profitability | 66,835 | ||||||||||||||||||||||||||||||||
Add (deduct) realized investment gains (losses) | 16,619 | ||||||||||||||||||||||||||||||||
Deduct Part D adjustment (1) | (20,276 | ) | |||||||||||||||||||||||||||||||
Deduct amortization of low-income housing (4) | (7,051 | ) | |||||||||||||||||||||||||||||||
Deduct legal settlement expenses (5) | (2,493 | ) | |||||||||||||||||||||||||||||||
Pretax income per Consolidated Statement of Operations | $ | 190,487 | |||||||||||||||||||||||||||||||
-1 | Medicare Part D items adjusted to GAAP from the segment analysis, which matches expected benefits with policy premium. | ||||||||||||||||||||||||||||||||
-2 | Administrative expense is not allocated to insurance segments. | ||||||||||||||||||||||||||||||||
-3 | Elimination of intersegment commission. | ||||||||||||||||||||||||||||||||
-4 | Amortization of low-income housing expense, considered a component of income tax expense in the segment analysis. | ||||||||||||||||||||||||||||||||
-5 | Legal settlement expenses. | ||||||||||||||||||||||||||||||||
Reconciliation of Segment Operating Information to the Consolidated Statement of Operations* | |||||||||||||||||||||||||||||||||
For the three months ended March 31, 2013 | |||||||||||||||||||||||||||||||||
Life | Health | Medicare | Annuity | Investment | Other & | Adjustments | Consolidated | ||||||||||||||||||||||||||
Part D | Corporate | ||||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||
Premium | $ | 470,813 | $ | 221,527 | $ | 76,720 | $ | 130 | $ | 15,624 | (1) | $ | 784,814 | ||||||||||||||||||||
Net investment income | $ | 183,040 | (6,201 | )(4) | 176,839 | ||||||||||||||||||||||||||||
Other income | $ | 544 | (74 | )(3) | 470 | ||||||||||||||||||||||||||||
Total revenue | 470,813 | 221,527 | 76,720 | 130 | 183,040 | 544 | 9,349 | 962,123 | |||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||
Policy benefits | 305,141 | 143,516 | 64,307 | 10,735 | 28,304 | (1) | 552,003 | ||||||||||||||||||||||||||
Required interest on: | |||||||||||||||||||||||||||||||||
Policy reserves | (125,016 | ) | (14,540 | ) | (14,459 | ) | 154,015 | 0 | |||||||||||||||||||||||||
Deferred acquisition costs | 41,191 | 5,599 | 165 | 488 | (47,443 | ) | 0 | ||||||||||||||||||||||||||
Amortization of acquisition costs | 81,099 | 17,687 | 550 | 2,378 | 101,714 | ||||||||||||||||||||||||||||
Commissions, premium taxes, and | |||||||||||||||||||||||||||||||||
non-deferred acquisition costs | 35,288 | 19,394 | 3,627 | 16 | (74 | )(3) | 58,251 | ||||||||||||||||||||||||||
Insurance administrative expense (2) | 43,935 | 43,935 | |||||||||||||||||||||||||||||||
Parent expense | 2,120 | 2,120 | |||||||||||||||||||||||||||||||
Stock compensation expense | 6,253 | 6,253 | |||||||||||||||||||||||||||||||
Interest expense | 20,877 | 20,877 | |||||||||||||||||||||||||||||||
Total expenses | 337,703 | 171,656 | 68,649 | (842 | ) | 127,449 | 52,308 | 28,230 | 785,153 | ||||||||||||||||||||||||
Subtotal | 133,110 | 49,871 | 8,071 | 972 | 55,591 | (51,764 | ) | (18,881 | ) | 176,970 | |||||||||||||||||||||||
Nonoperating items | 12,680 | (1) | 12,680 | ||||||||||||||||||||||||||||||
Amortization of low-income housing | 6,201 | (4) | 6,201 | ||||||||||||||||||||||||||||||
Measure of segment profitability (pretax) | $ | 133,110 | $ | 49,871 | $ | 8,071 | $ | 972 | $ | 55,591 | $ | (51,764 | ) | $ | 0 | 195,851 | |||||||||||||||||
Deduct applicable income taxes | (64,209 | ) | |||||||||||||||||||||||||||||||
Segment profits after tax | 131,642 | ||||||||||||||||||||||||||||||||
Add back income taxes applicable to segment profitability | 64,209 | ||||||||||||||||||||||||||||||||
Add (deduct) realized investment gains (losses) | (3,907 | ) | |||||||||||||||||||||||||||||||
Deduct Part D adjustment (1) | (12,680 | ) | |||||||||||||||||||||||||||||||
Deduct amortization of low-income housing (4) | (6,201 | ) | |||||||||||||||||||||||||||||||
Pretax income per Consolidated Statement of Operations | $ | 173,063 | |||||||||||||||||||||||||||||||
-1 | Medicare Part D items adjusted to GAAP from the segment analysis, which matches expected benefits with policy premium. | ||||||||||||||||||||||||||||||||
-2 | Administrative expense is not allocated to insurance segments. | ||||||||||||||||||||||||||||||||
-3 | Elimination of intersegment commission. | ||||||||||||||||||||||||||||||||
-4 | Amortization of low-income housing expense, considered a component of income tax expense in the segment analysis. | ||||||||||||||||||||||||||||||||
* | Retrospectively adjusted to give effect to the reorganization of segments described earlier in this Note. | ||||||||||||||||||||||||||||||||
The following table summarizes the measures of segment profitability for comparison. It also reconciles segment profits to net income. | |||||||||||||||||||||||||||||||||
Analysis of Profitability by Segment | |||||||||||||||||||||||||||||||||
Three months ended | Increase | ||||||||||||||||||||||||||||||||
March 31, | (Decrease) | ||||||||||||||||||||||||||||||||
2014 | 2013* | Amount | % | ||||||||||||||||||||||||||||||
Life | $ | 140,619 | $ | 133,110 | $ | 7,509 | 6 | ||||||||||||||||||||||||||
Health | 49,457 | 49,871 | (414 | ) | (1 | ) | |||||||||||||||||||||||||||
Medicare Part D | 9,566 | 8,071 | 1,495 | 19 | |||||||||||||||||||||||||||||
Annuity | 1,045 | 972 | 73 | ||||||||||||||||||||||||||||||
Investment | 56,920 | 55,591 | 1,329 | 2 | |||||||||||||||||||||||||||||
Other and corporate: | |||||||||||||||||||||||||||||||||
Other income | 544 | 544 | 0 | 0 | |||||||||||||||||||||||||||||
Administrative expense | (44,211 | ) | (43,935 | ) | (276 | ) | 1 | ||||||||||||||||||||||||||
Corporate | (10,252 | ) | (8,373 | ) | (1,879 | ) | 22 | ||||||||||||||||||||||||||
Pretax total | 203,688 | 195,851 | 7,837 | 4 | |||||||||||||||||||||||||||||
Applicable taxes | (66,835 | ) | (64,209 | ) | (2,626 | ) | 4 | ||||||||||||||||||||||||||
Total | 136,853 | 131,642 | 5,211 | 4 | |||||||||||||||||||||||||||||
Reconciling items, net of tax: | |||||||||||||||||||||||||||||||||
Realized gains (losses)—Investments | 10,802 | (3,768 | ) | 14,570 | |||||||||||||||||||||||||||||
Part D adjustment | (13,179 | ) | (8,242 | ) | (4,937 | ) | |||||||||||||||||||||||||||
Legal settlement expense | (1,620 | ) | 0 | (1,620 | ) | ||||||||||||||||||||||||||||
Net income | $ | 132,856 | $ | 119,632 | $ | 13,224 | 11 | ||||||||||||||||||||||||||
* | Retrospectively adjusted to give effect to the reorganization of segments described earlier in this Note. |
Accounting_Policies_Policies
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
The accompanying condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the annual disclosures required by accounting principles generally accepted in the United States of America (GAAP). However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the consolidated financial position at March 31, 2014, and the consolidated results of operations, comprehensive income, and cash flows for the periods ended March 31, 2014 and 2013. 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 on February 28, 2014. | |
New Unadopted Accounting Guidance | ' |
New Unadopted Accounting Guidance: The FASB has issued new accounting guidance, Investments-Equity Method and Joint Ventures: Accounting for Investments in Qualified Affordable Housing Projects (ASU 2014-01). This accounting guidance replaces the effective yield method of accounting with respect to investments in qualified affordable housing projects and, if certain conditions are present, provides for a new method of accounting. The new method of accounting allows an investor to amortize the cost of its investment based on the proportion of the tax credits/benefits received during the year to the total expected tax credits/benefits to be received over the life of the investment and will be recognized in the Consolidated Statements of Operations as a component of “Income tax expense.” Additional disclosures are required concerning investments in qualified affordable housing. | |
The new guidance is effective for Torchmark beginning January 1, 2015, with early adoption permitted. The guidance continues to permit the effective-yield method for investments held as of the date of adoption. Adoption is required on a retrospective basis. Torchmark is currently evaluating the impact of adoption but does not expect that adoption will have a material impact on net income or shareholders’ equity. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Reconciliation of Basic and Diluted Weighted-Average Shares Outstanding | ' | ||||||||
A reconciliation of basic and diluted weighted-average shares outstanding is as follows. | |||||||||
For the three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Basic weighted average shares outstanding | 88,775,643 | 93,580,778 | |||||||
Weighted average dilutive options outstanding | 1,248,050 | 989,132 | |||||||
Diluted weighted average shares outstanding | 90,023,693 | 94,569,910 | |||||||
Antidilutive shares | 3,513 | 0 | |||||||
Postretirement_Benefit_Plans_T
Postretirement Benefit Plans (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Post-Retirement Benefit Costs | ' | ||||||||||||||||
The following tables present a summary of post-retirement benefit costs by component. | |||||||||||||||||
Components of Post-Retirement Benefit Costs | |||||||||||||||||
Three Months ended March 31, | |||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 3,232 | $ | 3,765 | $ | 56 | $ | 85 | |||||||||
Interest cost | 4,819 | 4,264 | 147 | 260 | |||||||||||||
Expected return on assets | (4,753 | ) | (4,356 | ) | 0 | 0 | |||||||||||
Amortization: | |||||||||||||||||
Prior service cost | 528 | 571 | 0 | 0 | |||||||||||||
Actuarial (gain) loss | 2,044 | 4,063 | 0 | 0 | |||||||||||||
Direct recognition of (gain) loss | 0 | 0 | (62 | ) | 0 | ||||||||||||
Net periodic benefit cost | $ | 5,870 | $ | 8,307 | $ | 141 | $ | 345 | |||||||||
Schedule of Defined-Benefit Plans Disclosures | ' | ||||||||||||||||
The following chart presents assets at fair value for the defined-benefit pension plans at March 31, 2014 and the prior-year end. | |||||||||||||||||
Pension Assets by Component | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
Amount | % | Amount | % | ||||||||||||||
Corporate debt | $ | 158,546 | 53 | $ | 147,445 | 51 | |||||||||||
Other fixed maturities | 275 | 0 | 267 | 0 | |||||||||||||
Equity securities | 117,176 | 39 | 115,287 | 38 | |||||||||||||
Short-term investments | 1,738 | 1 | 13,318 | 5 | |||||||||||||
Guaranteed annuity contract | 13,723 | 5 | 13,769 | 5 | |||||||||||||
Other | 7,006 | 2 | 1,667 | 1 | |||||||||||||
Total | $ | 298,464 | 100 | $ | 291,753 | 100 | |||||||||||
Investments_Tables
Investments (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Investments Schedule [Abstract] | ' | ||||||||||||||||||||||||
Summary of Fixed Maturities and Equity Securities Available for Sale by Component | ' | ||||||||||||||||||||||||
A summary of fixed maturities and equity securities available for sale by cost or amortized cost and estimated fair value at March 31, 2014 is as follows. | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair Value | Total Fixed | |||||||||||||||||||||
Cost | Gains | Losses | Maturities* | ||||||||||||||||||||||
Fixed maturities available for sale: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. Government direct, guaranteed, and government-sponsored enterprises | $ | 430,777 | $ | 329 | $ | (51,050 | ) | $ | 380,056 | 3 | % | ||||||||||||||
States, municipalities, and political subdivisions | 1,278,263 | 105,064 | (3,863 | ) | 1,379,464 | 10 | |||||||||||||||||||
Foreign governments | 43,642 | 535 | (17 | ) | 44,160 | 0 | |||||||||||||||||||
Corporates | 10,265,282 | 1,065,442 | (147,287 | ) | 11,183,437 | 82 | |||||||||||||||||||
Collateralized debt obligations | 65,014 | 5,950 | (6,634 | ) | 64,330 | 1 | |||||||||||||||||||
Other asset-backed securities | 32,612 | 2,872 | (36 | ) | 35,448 | 0 | |||||||||||||||||||
Redeemable preferred stocks | 502,778 | 35,706 | (6,928 | ) | 531,556 | 4 | |||||||||||||||||||
Total fixed maturities | 12,618,368 | 1,215,898 | (215,815 | ) | 13,618,451 | 100 | % | ||||||||||||||||||
Equity securities | 776 | 533 | 0 | 1,309 | |||||||||||||||||||||
Total fixed maturities and equity securities | $ | 12,619,144 | $ | 1,216,431 | $ | (215,815 | ) | $ | 13,619,760 | ||||||||||||||||
* | At fair value | ||||||||||||||||||||||||
Schedule of Fixed Maturities by Contractual Maturity | ' | ||||||||||||||||||||||||
A schedule of fixed maturities by contractual maturity date at March 31, 2014 is shown below on an amortized cost basis and on a fair value basis. Actual maturity dates could differ from contractual maturities due to call or prepayment provisions. | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Fixed maturities available for sale: | |||||||||||||||||||||||||
Due in one year or less | $ | 192,438 | $ | 196,987 | |||||||||||||||||||||
Due from one to five years | 410,166 | 452,731 | |||||||||||||||||||||||
Due from five to ten years | 948,053 | 1,039,939 | |||||||||||||||||||||||
Due from ten to twenty years | 3,170,200 | 3,507,188 | |||||||||||||||||||||||
Due after twenty years | 7,796,872 | 8,318,545 | |||||||||||||||||||||||
Mortgage-backed and asset-backed securities | 100,639 | 103,061 | |||||||||||||||||||||||
$ | 12,618,368 | $ | 13,618,451 | ||||||||||||||||||||||
Schedule of Selected Information about Sales of Fixed Maturities | ' | ||||||||||||||||||||||||
Selected information about sales of fixed maturities is as follows. | |||||||||||||||||||||||||
For the three months ended March 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Proceeds from sales | $ | 16,050 | $ | 46,361 | |||||||||||||||||||||
Gross realized gains | 15,925 | 991 | |||||||||||||||||||||||
Gross realized losses | 0 | (776 | ) | ||||||||||||||||||||||
Assets Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||||||
The following table represents assets measured at fair value on a recurring basis. | |||||||||||||||||||||||||
Fair Value Measurements at March 31, 2014 Using: | |||||||||||||||||||||||||
Description | Quoted Prices | Significant | Significant | Total Fair | |||||||||||||||||||||
in Active | Other | Unobservable | Value | ||||||||||||||||||||||
Markets for | Observable | Inputs (Level 3) | |||||||||||||||||||||||
Identical Assets | Inputs (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Fixed maturities available for sale: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. Government direct, guaranteed, and government-sponsored enterprises | $ | 0 | $ | 380,056 | $ | 0 | $ | 380,056 | |||||||||||||||||
States, municipalities, and political subdivisions | 0 | 1,379,464 | 0 | 1,379,464 | |||||||||||||||||||||
Foreign governments | 0 | 44,160 | 0 | 44,160 | |||||||||||||||||||||
Corporates | 56,745 | 10,780,662 | 346,030 | 11,183,437 | |||||||||||||||||||||
Collateralized debt obligations | 0 | 0 | 64,330 | 64,330 | |||||||||||||||||||||
Other asset-backed securities | 0 | 35,448 | 0 | 35,448 | |||||||||||||||||||||
Redeemable preferred stocks | 22,922 | 508,634 | 0 | 531,556 | |||||||||||||||||||||
Total fixed maturities | 79,667 | 13,128,424 | 410,360 | 13,618,451 | |||||||||||||||||||||
Equity securities | 533 | 0 | 776 | 1,309 | |||||||||||||||||||||
Total fixed maturities and equity securities | $ | 80,200 | $ | 13,128,424 | $ | 411,136 | $ | 13,619,760 | |||||||||||||||||
Percent of total | 0.6 | % | 96.4 | % | 3 | % | 100 | % | |||||||||||||||||
Schedule of Changes in Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs | ' | ||||||||||||||||||||||||
Analysis of Changes in Fair Value Measurements Using | |||||||||||||||||||||||||
Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||||||||||
Asset- | Collateralized | Corporates (1) | Equities | Total | |||||||||||||||||||||
backed | debt | ||||||||||||||||||||||||
securities | obligations | ||||||||||||||||||||||||
Balance at January 1, 2014 | $ | 0 | $ | 58,205 | $ | 300,300 | $ | 776 | $ | 359,281 | |||||||||||||||
Total gains or losses: | |||||||||||||||||||||||||
Included in realized gains/losses | 0 | 15,924 | 1 | 0 | 15,925 | ||||||||||||||||||||
Included in other comprehensive income | 0 | 7,283 | 12,772 | 0 | 20,055 | ||||||||||||||||||||
Acquisitions | 0 | 0 | 33,791 | 0 | 33,791 | ||||||||||||||||||||
Sales | 0 | (16,049 | ) | (1 | ) | 0 | (16,050 | ) | |||||||||||||||||
Amortization | 0 | 1,307 | 3 | 0 | 1,310 | ||||||||||||||||||||
Other (2) | 0 | (2,340 | ) | (836 | ) | 0 | (3,176 | ) | |||||||||||||||||
Transfers in and/or out of Level 3 (3) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Balance at March 31, 2014 | $ | 0 | $ | 64,330 | $ | 346,030 | $ | 776 | $ | 411,136 | |||||||||||||||
Percent of total fixed maturity and equity securities | 0 | % | 0.5 | % | 2.5 | % | 0 | % | 3 | % | |||||||||||||||
For the three months ended March 31, 2013 | |||||||||||||||||||||||||
Asset- | Collateralized | Corporates (1) | Equities | Total | |||||||||||||||||||||
backed | debt | ||||||||||||||||||||||||
securities | obligations | ||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 7,981 | $ | 46,571 | $ | 231,072 | $ | 739 | $ | 286,363 | |||||||||||||||
Total gains or losses: | |||||||||||||||||||||||||
Included in realized gains/losses | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Included in other comprehensive income | 426 | 2,852 | (863 | ) | 0 | 2,415 | |||||||||||||||||||
Acquisitions | 0 | 0 | 62,310 | 0 | 62,310 | ||||||||||||||||||||
Sales | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Amortization | (57 | ) | 691 | (3 | ) | 0 | 631 | ||||||||||||||||||
Other (2) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Transfers in and/or out of Level 3 (3) | (8,350 | ) | 0 | (8,181 | ) | 0 | (16,531 | ) | |||||||||||||||||
Balance at March 31, 2013 | $ | 0 | $ | 50,114 | $ | 284,335 | $ | 739 | $ | 335,188 | |||||||||||||||
Percent of total fixed maturity and equity securities | 0 | % | 0.4 | % | 2.1 | % | 0 | % | 2.5 | % | |||||||||||||||
-1 | Includes redeemable preferred stocks. | ||||||||||||||||||||||||
-2 | Includes capitalized interest, foreign exchange adjustments, and principal repayments. | ||||||||||||||||||||||||
-3 | Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available. | ||||||||||||||||||||||||
Schedule of Unrealized Investment Losses by Class of Investment | ' | ||||||||||||||||||||||||
The following table discloses unrealized investment losses by class of investment at March 31, 2014 for the period of time in a loss position. Torchmark considers these investments not to be other-than-temporarily impaired. | |||||||||||||||||||||||||
Analysis of Gross Unrealized Investment Losses | |||||||||||||||||||||||||
At March 31, 2014 | |||||||||||||||||||||||||
Less than | Twelve Months | Total | |||||||||||||||||||||||
Twelve Months | or Longer | ||||||||||||||||||||||||
Description of Securities | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
Fixed maturities available for sale: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. Government direct, guaranteed, and government-sponsored enterprises | $ | 63,633 | $ | (6,031 | ) | $ | 293,591 | $ | (45,019 | ) | $ | 357,224 | $ | (51,050 | ) | ||||||||||
States, municipalities and political subdivisions | 80,424 | (3,167 | ) | 10,960 | (696 | ) | 91,384 | (3,863 | ) | ||||||||||||||||
Foreign governments | 895 | (1 | ) | 6,092 | (16 | ) | 6,987 | (17 | ) | ||||||||||||||||
Corporates | 1,485,588 | (72,557 | ) | 718,802 | (74,730 | ) | 2,204,390 | (147,287 | ) | ||||||||||||||||
Collateralized debt obligations | 0 | 0 | 14,715 | (6,634 | ) | 14,715 | (6,634 | ) | |||||||||||||||||
Other asset-backed securities | 0 | 0 | 2,951 | (36 | ) | 2,951 | (36 | ) | |||||||||||||||||
Redeemable preferred stocks | 47,953 | (926 | ) | 76,162 | (6,002 | ) | 124,115 | (6,928 | ) | ||||||||||||||||
Total fixed maturities | 1,678,493 | (82,682 | ) | 1,123,273 | (133,133 | ) | 2,801,766 | (215,815 | ) | ||||||||||||||||
Equity securities | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||
Total fixed maturities and equity securities | $ | 1,678,493 | $ | (82,682 | ) | $ | 1,123,273 | $ | (133,133 | ) | $ | 2,801,766 | $ | (215,815 | ) | ||||||||||
Schedule of Additional Information About Investments in Unrealized Loss Position | ' | ||||||||||||||||||||||||
Additional information about investments in an unrealized loss position is as follows. | |||||||||||||||||||||||||
Less than | Twelve | Total | |||||||||||||||||||||||
Twelve | Months | ||||||||||||||||||||||||
Months | or Longer | ||||||||||||||||||||||||
Number of issues (Cusip numbers) held: | |||||||||||||||||||||||||
As of March 31, 2014 | 272 | 207 | 479 | ||||||||||||||||||||||
As of December 31, 2013 | 462 | 130 | 592 |
Supplemental_Information_about1
Supplemental Information about Changes to Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Schedule of Change in Balance by Component of Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||
An analysis in the change in balance by component of Accumulated Other Comprehensive Income is as follows for the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||
Components of Accumulated Other Comprehensive Income | |||||||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||||||
Available | Deferred | Foreign | Pension | Total | |||||||||||||||||
for Sale | Acquisition | Exchange | Adjustments | ||||||||||||||||||
Assets | Costs | ||||||||||||||||||||
Balance at January 1, 2014 | $ | 256,196 | $ | (6,728 | ) | $ | 24,866 | $ | (63,353 | ) | $ | 210,981 | |||||||||
Other comprehensive income (loss) before reclassifications, net of tax | 409,139 | (2,748 | ) | (738 | ) | 0 | 405,653 | ||||||||||||||
Reclassifications, net of tax | (12,249 | ) | 0 | 0 | 1,673 | (10,576 | ) | ||||||||||||||
Other comprehensive income (loss) | 396,890 | (2,748 | ) | (738 | ) | 1,673 | 395,077 | ||||||||||||||
Balance at March 31, 2014 | $ | 653,086 | $ | (9,476 | ) | $ | 24,128 | $ | (61,680 | ) | $ | 606,058 | |||||||||
For the three months ended March 31, 2013 | |||||||||||||||||||||
Available | Deferred | Foreign | Pension | Total | |||||||||||||||||
for Sale | Acquisition | Exchange | Adjustments | ||||||||||||||||||
Assets | Costs | ||||||||||||||||||||
Balance at January 1, 2013 | $ | 1,024,367 | $ | (16,417 | ) | $ | 26,608 | $ | (109,283 | ) | $ | 925,275 | |||||||||
Other comprehensive income (loss) before reclassifications, net of tax | (81,040 | ) | 1,922 | (749 | ) | 0 | (79,867 | ) | |||||||||||||
Reclassifications, net of tax | 1,670 | 0 | 0 | 2,952 | 4,622 | ||||||||||||||||
Other comprehensive income (loss) | (79,370 | ) | 1,922 | (749 | ) | 2,952 | (75,245 | ) | |||||||||||||
Balance at March 31, 2013 | $ | 944,997 | $ | (14,495 | ) | $ | 25,859 | $ | (106,331 | ) | $ | 850,030 | |||||||||
Summary of Reclassifications Out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||
Reclassifications out of Accumulated Other Comprehensive Income are presented below for the three months March 31, 2014 and 2013. | |||||||||||||||||||||
Reclassification Adjustments | |||||||||||||||||||||
Three months ended March 31, | Affected line items in the | ||||||||||||||||||||
Component Line Item | 2014 | 2013 | Statement of Operations | ||||||||||||||||||
Unrealized gains (losses) on available for sale assets: | |||||||||||||||||||||
Realized (gains) losses | $ | (16,619 | ) | $ | 2,561 | Realized investment gains (losses) | |||||||||||||||
Amortization of (discount) premium | (2,227 | ) | (1,882 | ) | Net investment income | ||||||||||||||||
Total before tax | (18,846 | ) | 679 | ||||||||||||||||||
Tax | 6,597 | 991 | Income Taxes | ||||||||||||||||||
Total after tax | (12,249 | ) | 1,670 | ||||||||||||||||||
Pension adjustments: | |||||||||||||||||||||
Amortization of prior service cost | 528 | 571 | Other operating expenses | ||||||||||||||||||
Amortization of actuarial gain (loss) | 2,046 | 3,972 | Other operating expenses | ||||||||||||||||||
Total before tax | 2,574 | 4,543 | |||||||||||||||||||
Tax | (901 | ) | (1,591 | ) | Income Taxes | ||||||||||||||||
Total after tax | 1,673 | 2,952 | |||||||||||||||||||
Total reclassifications (after tax) | $ | (10,576 | ) | $ | 4,622 | ||||||||||||||||
Business_Segments_Tables
Business Segments (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of Adjustments for Difference in Interim Medicare Part D Results for Segment Purposes and Gaap Table | ' | ||||||||||||||||||||||||||||||||
An analysis of the adjustments for the difference in the interim results as presented for segment purposes and GAAP for Medicare Part D is as follows. | |||||||||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Benefit costs deferred | $ | 47,671 | $ | 28,304 | |||||||||||||||||||||||||||||
Government risk-sharing premium adjustment | (27,395 | ) | (15,624 | ) | |||||||||||||||||||||||||||||
Pre-tax addition to segment interim period income | $ | 20,276 | $ | 12,680 | |||||||||||||||||||||||||||||
After tax amount | $ | 13,179 | $ | 8,242 | |||||||||||||||||||||||||||||
Reconciliation of Health Premium Included in the Segment Analysis | ' | ||||||||||||||||||||||||||||||||
A reconciliation of health premium included in the segment analysis with health premium as reported in the Consolidated Statements of Operations is presented in the following table. | |||||||||||||||||||||||||||||||||
Three months ended March 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | % Change | |||||||||||||||||||||||||||||||
Premium per segment analysis: | |||||||||||||||||||||||||||||||||
Medicare Part D premium | $ | 83,033 | $ | 76,720 | 8 | ||||||||||||||||||||||||||||
Other health premium | 219,435 | 221,527 | (1 | ) | |||||||||||||||||||||||||||||
Part D risk sharing adjustment | 27,395 | 15,624 | 75 | ||||||||||||||||||||||||||||||
Health premium per Consolidated Statements of Operations | $ | 329,863 | $ | 313,871 | 5 | ||||||||||||||||||||||||||||
Reconciliation of Segment Operating Information to Consolidated Statement of Operations | ' | ||||||||||||||||||||||||||||||||
The following tables total the components of Torchmark’s operating segments and reconcile these operating results to its pretax income and each significant line item in its Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||
Reconciliation of Segment Operating Information to the Consolidated Statement of Operations | |||||||||||||||||||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||||||||||||||||||
Life | Health | Medicare | Annuity | Investment | Other & | Adjustments | Consolidated | ||||||||||||||||||||||||||
Part D | Corporate | ||||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||
Premium | $ | 489,058 | $ | 219,435 | $ | 83,033 | $ | 99 | $ | 27,395 | (1) | $ | 819,020 | ||||||||||||||||||||
Net investment income | $ | 188,051 | (7,051 | )(4) | 181,000 | ||||||||||||||||||||||||||||
Other income | $ | 544 | (63 | )(3) | 481 | ||||||||||||||||||||||||||||
Total revenue | 489,058 | 219,435 | 83,033 | 99 | 188,051 | 544 | 20,281 | 1,000,501 | |||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||
Policy benefits | 320,176 | 141,786 | 66,261 | 10,623 | 47,671 | (1) | 586,517 | ||||||||||||||||||||||||||
Required interest on: | |||||||||||||||||||||||||||||||||
Policy reserves | (130,511 | ) | (15,632 | ) | (13,791 | ) | 159,934 | 0 | |||||||||||||||||||||||||
Deferred acquisition costs | 41,690 | 5,598 | 175 | 389 | (47,852 | ) | 0 | ||||||||||||||||||||||||||
Amortization of acquisition costs | 83,600 | 18,608 | 705 | 1,820 | 104,733 | ||||||||||||||||||||||||||||
Commissions, premium taxes, and non-deferred acquisition costs | 33,484 | 19,618 | 6,326 | 13 | (63 | )(3) | 59,378 | ||||||||||||||||||||||||||
Insurance administrative expense (2) | 44,211 | 2,493 | (5) | 46,704 | |||||||||||||||||||||||||||||
Parent expense | 1,743 | 1,743 | |||||||||||||||||||||||||||||||
Stock compensation expense | 8,509 | 8,509 | |||||||||||||||||||||||||||||||
Interest expense | 19,049 | 19,049 | |||||||||||||||||||||||||||||||
Total expenses | 348,439 | 169,978 | 73,467 | (946 | ) | 131,131 | 54,463 | 50,101 | 826,633 | ||||||||||||||||||||||||
Subtotal | 140,619 | 49,457 | 9,566 | 1,045 | 56,920 | (53,919 | ) | (29,820 | ) | 173,868 | |||||||||||||||||||||||
Nonoperating items | 22,769 | (1,5) | 22,769 | ||||||||||||||||||||||||||||||
Amortization of low-income housing | 7,051 | (4) | 7,051 | ||||||||||||||||||||||||||||||
Measure of segment profitability (pretax) | $ | 140,619 | $ | 49,457 | $ | 9,566 | $ | 1,045 | $ | 56,920 | $ | (53,919 | ) | $ | 0 | 203,688 | |||||||||||||||||
Deduct applicable income taxes | (66,835 | ) | |||||||||||||||||||||||||||||||
Segment profits after tax | 136,853 | ||||||||||||||||||||||||||||||||
Add back income taxes applicable to segment profitability | 66,835 | ||||||||||||||||||||||||||||||||
Add (deduct) realized investment gains (losses) | 16,619 | ||||||||||||||||||||||||||||||||
Deduct Part D adjustment (1) | (20,276 | ) | |||||||||||||||||||||||||||||||
Deduct amortization of low-income housing (4) | (7,051 | ) | |||||||||||||||||||||||||||||||
Deduct legal settlement expenses (5) | (2,493 | ) | |||||||||||||||||||||||||||||||
Pretax income per Consolidated Statement of Operations | $ | 190,487 | |||||||||||||||||||||||||||||||
-1 | Medicare Part D items adjusted to GAAP from the segment analysis, which matches expected benefits with policy premium. | ||||||||||||||||||||||||||||||||
-2 | Administrative expense is not allocated to insurance segments. | ||||||||||||||||||||||||||||||||
-3 | Elimination of intersegment commission. | ||||||||||||||||||||||||||||||||
-4 | Amortization of low-income housing expense, considered a component of income tax expense in the segment analysis. | ||||||||||||||||||||||||||||||||
-5 | Legal settlement expenses. | ||||||||||||||||||||||||||||||||
Reconciliation of Segment Operating Information to the Consolidated Statement of Operations* | |||||||||||||||||||||||||||||||||
For the three months ended March 31, 2013 | |||||||||||||||||||||||||||||||||
Life | Health | Medicare | Annuity | Investment | Other & | Adjustments | Consolidated | ||||||||||||||||||||||||||
Part D | Corporate | ||||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||
Premium | $ | 470,813 | $ | 221,527 | $ | 76,720 | $ | 130 | $ | 15,624 | (1) | $ | 784,814 | ||||||||||||||||||||
Net investment income | $ | 183,040 | (6,201 | )(4) | 176,839 | ||||||||||||||||||||||||||||
Other income | $ | 544 | (74 | )(3) | 470 | ||||||||||||||||||||||||||||
Total revenue | 470,813 | 221,527 | 76,720 | 130 | 183,040 | 544 | 9,349 | 962,123 | |||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||
Policy benefits | 305,141 | 143,516 | 64,307 | 10,735 | 28,304 | (1) | 552,003 | ||||||||||||||||||||||||||
Required interest on: | |||||||||||||||||||||||||||||||||
Policy reserves | (125,016 | ) | (14,540 | ) | (14,459 | ) | 154,015 | 0 | |||||||||||||||||||||||||
Deferred acquisition costs | 41,191 | 5,599 | 165 | 488 | (47,443 | ) | 0 | ||||||||||||||||||||||||||
Amortization of acquisition costs | 81,099 | 17,687 | 550 | 2,378 | 101,714 | ||||||||||||||||||||||||||||
Commissions, premium taxes, and | |||||||||||||||||||||||||||||||||
non-deferred acquisition costs | 35,288 | 19,394 | 3,627 | 16 | (74 | )(3) | 58,251 | ||||||||||||||||||||||||||
Insurance administrative expense (2) | 43,935 | 43,935 | |||||||||||||||||||||||||||||||
Parent expense | 2,120 | 2,120 | |||||||||||||||||||||||||||||||
Stock compensation expense | 6,253 | 6,253 | |||||||||||||||||||||||||||||||
Interest expense | 20,877 | 20,877 | |||||||||||||||||||||||||||||||
Total expenses | 337,703 | 171,656 | 68,649 | (842 | ) | 127,449 | 52,308 | 28,230 | 785,153 | ||||||||||||||||||||||||
Subtotal | 133,110 | 49,871 | 8,071 | 972 | 55,591 | (51,764 | ) | (18,881 | ) | 176,970 | |||||||||||||||||||||||
Nonoperating items | 12,680 | (1) | 12,680 | ||||||||||||||||||||||||||||||
Amortization of low-income housing | 6,201 | (4) | 6,201 | ||||||||||||||||||||||||||||||
Measure of segment profitability (pretax) | $ | 133,110 | $ | 49,871 | $ | 8,071 | $ | 972 | $ | 55,591 | $ | (51,764 | ) | $ | 0 | 195,851 | |||||||||||||||||
Deduct applicable income taxes | (64,209 | ) | |||||||||||||||||||||||||||||||
Segment profits after tax | 131,642 | ||||||||||||||||||||||||||||||||
Add back income taxes applicable to segment profitability | 64,209 | ||||||||||||||||||||||||||||||||
Add (deduct) realized investment gains (losses) | (3,907 | ) | |||||||||||||||||||||||||||||||
Deduct Part D adjustment (1) | (12,680 | ) | |||||||||||||||||||||||||||||||
Deduct amortization of low-income housing (4) | (6,201 | ) | |||||||||||||||||||||||||||||||
Pretax income per Consolidated Statement of Operations | $ | 173,063 | |||||||||||||||||||||||||||||||
-1 | Medicare Part D items adjusted to GAAP from the segment analysis, which matches expected benefits with policy premium. | ||||||||||||||||||||||||||||||||
-2 | Administrative expense is not allocated to insurance segments. | ||||||||||||||||||||||||||||||||
-3 | Elimination of intersegment commission. | ||||||||||||||||||||||||||||||||
-4 | Amortization of low-income housing expense, considered a component of income tax expense in the segment analysis. | ||||||||||||||||||||||||||||||||
* | Retrospectively adjusted to give effect to the reorganization of segments described earlier in this Note. | ||||||||||||||||||||||||||||||||
Analysis of Profitability By Segment | ' | ||||||||||||||||||||||||||||||||
The following table summarizes the measures of segment profitability for comparison. It also reconciles segment profits to net income. | |||||||||||||||||||||||||||||||||
Analysis of Profitability by Segment | |||||||||||||||||||||||||||||||||
Three months ended | Increase | ||||||||||||||||||||||||||||||||
March 31, | (Decrease) | ||||||||||||||||||||||||||||||||
2014 | 2013* | Amount | % | ||||||||||||||||||||||||||||||
Life | $ | 140,619 | $ | 133,110 | $ | 7,509 | 6 | ||||||||||||||||||||||||||
Health | 49,457 | 49,871 | (414 | ) | (1 | ) | |||||||||||||||||||||||||||
Medicare Part D | 9,566 | 8,071 | 1,495 | 19 | |||||||||||||||||||||||||||||
Annuity | 1,045 | 972 | 73 | ||||||||||||||||||||||||||||||
Investment | 56,920 | 55,591 | 1,329 | 2 | |||||||||||||||||||||||||||||
Other and corporate: | |||||||||||||||||||||||||||||||||
Other income | 544 | 544 | 0 | 0 | |||||||||||||||||||||||||||||
Administrative expense | (44,211 | ) | (43,935 | ) | (276 | ) | 1 | ||||||||||||||||||||||||||
Corporate | (10,252 | ) | (8,373 | ) | (1,879 | ) | 22 | ||||||||||||||||||||||||||
Pretax total | 203,688 | 195,851 | 7,837 | 4 | |||||||||||||||||||||||||||||
Applicable taxes | (66,835 | ) | (64,209 | ) | (2,626 | ) | 4 | ||||||||||||||||||||||||||
Total | 136,853 | 131,642 | 5,211 | 4 | |||||||||||||||||||||||||||||
Reconciling items, net of tax: | |||||||||||||||||||||||||||||||||
Realized gains (losses)—Investments | 10,802 | (3,768 | ) | 14,570 | |||||||||||||||||||||||||||||
Part D adjustment | (13,179 | ) | (8,242 | ) | (4,937 | ) | |||||||||||||||||||||||||||
Legal settlement expense | (1,620 | ) | 0 | (1,620 | ) | ||||||||||||||||||||||||||||
Net income | $ | 132,856 | $ | 119,632 | $ | 13,224 | 11 | ||||||||||||||||||||||||||
* | Retrospectively adjusted to give effect to the reorganization of segments described earlier in this Note. |
Earnings_Per_Share_Reconciliat
Earnings Per Share - Reconciliation of Basic and Diluted Weighted - Average Shares Outstanding (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Earnings Per Share [Abstract] | ' | ' |
Basic weighted average shares outstanding | 88,775,643 | 93,580,778 |
Weighted average dilutive options outstanding | 1,248,050 | 989,132 |
Diluted weighted average shares outstanding | 90,023,693 | 94,569,910 |
Antidilutive shares | 3,513 | 0 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Earnings Per Share [Abstract] | ' |
Stock split, description | 'a three for two stock split |
Percentage of stock dividend payable | 50.00% |
Record date for three for two stock split | 2-Jun-14 |
Stock split, payment date | 1-Jul-14 |
Postretirement_Benefits_Schedu
Postretirement Benefits - Schedule of Post-Retirement Benefit Costs (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Pension Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Service cost | $3,232 | $3,765 |
Interest cost | 4,819 | 4,264 |
Expected return on assets | -4,753 | -4,356 |
Amortization: | ' | ' |
Prior service cost | 528 | 571 |
Actuarial (gain) loss | 2,044 | 4,063 |
Direct recognition of (gain) loss | 0 | 0 |
Net periodic benefit cost | 5,870 | 8,307 |
Other Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Service cost | 56 | 85 |
Interest cost | 147 | 260 |
Expected return on assets | 0 | 0 |
Amortization: | ' | ' |
Prior service cost | 0 | 0 |
Actuarial (gain) loss | 0 | 0 |
Direct recognition of (gain) loss | -62 | 0 |
Net periodic benefit cost | $141 | $345 |
Postretirement_Benefit_Plans_S
Postretirement Benefit Plans - Schedule of Defined-Benefit Plans Disclosures (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined benefit pension plans-fair value of plan assets | $298,464 | $291,753 |
Percent of total pension assets | 100.00% | 100.00% |
Other Fixed Maturities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined benefit pension plans-fair value of plan assets | 275 | 267 |
Percent of total pension assets | 0.00% | 0.00% |
Equity Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined benefit pension plans-fair value of plan assets | 117,176 | 115,287 |
Percent of total pension assets | 39.00% | 38.00% |
Guaranteed Annuity Contract [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined benefit pension plans-fair value of plan assets | 13,723 | 13,769 |
Percent of total pension assets | 5.00% | 5.00% |
Other [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined benefit pension plans-fair value of plan assets | 7,006 | 1,667 |
Percent of total pension assets | 2.00% | 1.00% |
Corporate Bonds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined benefit pension plans-fair value of plan assets | 158,546 | 147,445 |
Percent of total pension assets | 53.00% | 51.00% |
Short-term Investments [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined benefit pension plans-fair value of plan assets | $1,738 | $13,318 |
Percent of total pension assets | 1.00% | 5.00% |
Postretirement_Benefit_Plans_A
Postretirement Benefit Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Liability related to funded defined-benefit pension plans | $331 | $322 |
Contributions to benefit plans | 0 | ' |
Insurance cash value and Rabbi Trust investments supporting supplemental pension plan liability | 67 | 66 |
Non-qualified supplemental retirement pension plan liability | 59 | 58 |
Maximum [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Contributions to benefit plans | $20 | ' |
Investments_Summary_of_Fixed_M
Investments - Summary of Fixed Maturities and Equity Securities Available for Sale by Component (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Debt Securities Cost or Amortized Cost | $12,618,368 | $12,488,875 | [1] |
Total Available for Sale Securities Cost | 12,619,144 | ' | |
Unrealized Gains | 1,216,431 | ' | |
Unrealized Losses | -215,815 | ' | |
Debt Securities Fair Value | 13,618,451 | 12,879,133 | [1] |
Total Available for Sale Securities Fair Value | 13,619,760 | ' | |
Equity Securities Cost or Amortized Cost | 776 | 875 | [1] |
Equity Securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Equity Securities Cost or Amortized Cost | 776 | ' | |
Unrealized Gains | 533 | ' | |
Unrealized Losses | 0 | ' | |
Equity Securities Fair Value | 1,309 | ' | |
Fixed Maturities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Debt Securities Cost or Amortized Cost | 12,618,368 | ' | |
Unrealized Gains | 1,215,898 | ' | |
Unrealized Losses | -215,815 | ' | |
Debt Securities Fair Value | 13,618,451 | ' | |
Total Fixed Maturities At Fair Value | 100.00% | ' | |
Fixed Maturities [Member] | U.S. Government Direct, Guaranteed, and Government-Sponsored Enterprises [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Debt Securities Cost or Amortized Cost | 430,777 | ' | |
Unrealized Gains | 329 | ' | |
Unrealized Losses | -51,050 | ' | |
Debt Securities Fair Value | 380,056 | ' | |
Total Fixed Maturities At Fair Value | 3.00% | ' | |
Fixed Maturities [Member] | States, Municipalities, and Political Subdivisions [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Debt Securities Cost or Amortized Cost | 1,278,263 | ' | |
Unrealized Gains | 105,064 | ' | |
Unrealized Losses | -3,863 | ' | |
Debt Securities Fair Value | 1,379,464 | ' | |
Total Fixed Maturities At Fair Value | 10.00% | ' | |
Fixed Maturities [Member] | Foreign Governments [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Debt Securities Cost or Amortized Cost | 43,642 | ' | |
Unrealized Gains | 535 | ' | |
Unrealized Losses | -17 | ' | |
Debt Securities Fair Value | 44,160 | ' | |
Total Fixed Maturities At Fair Value | 0.00% | ' | |
Fixed Maturities [Member] | Corporates [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Debt Securities Cost or Amortized Cost | 10,265,282 | ' | |
Unrealized Gains | 1,065,442 | ' | |
Unrealized Losses | -147,287 | ' | |
Debt Securities Fair Value | 11,183,437 | ' | |
Total Fixed Maturities At Fair Value | 82.00% | ' | |
Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Debt Securities Cost or Amortized Cost | 65,014 | ' | |
Unrealized Gains | 5,950 | ' | |
Unrealized Losses | -6,634 | ' | |
Debt Securities Fair Value | 64,330 | ' | |
Total Fixed Maturities At Fair Value | 1.00% | ' | |
Fixed Maturities [Member] | Other Asset-backed Securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Debt Securities Cost or Amortized Cost | 32,612 | ' | |
Unrealized Gains | 2,872 | ' | |
Unrealized Losses | -36 | ' | |
Debt Securities Fair Value | 35,448 | ' | |
Total Fixed Maturities At Fair Value | 0.00% | ' | |
Fixed Maturities [Member] | Redeemable Preferred Stocks [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Debt Securities Cost or Amortized Cost | 502,778 | ' | |
Unrealized Gains | 35,706 | ' | |
Unrealized Losses | -6,928 | ' | |
Debt Securities Fair Value | $531,556 | ' | |
Total Fixed Maturities At Fair Value | 4.00% | ' | |
[1] | Derived from audited financial statements |
Investments_Schedule_of_Fixed_
Investments - Schedule of Fixed Maturities by Contractual Maturity (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Investments Debt And Equity Securities [Abstract] | ' | ' | |
Fixed maturities available for sale, Amortized Cost - Due in one year or less | $192,438 | ' | |
Fixed maturities available for sale, Amortized Cost - Due from one to five years | 410,166 | ' | |
Fixed maturities available for sale, Amortized Cost - Due from five to ten years | 948,053 | ' | |
Fixed maturities available for sale, Amortized Cost - Due from ten to twenty years | 3,170,200 | ' | |
Fixed maturities available for sale, Amortized Cost - Due after twenty years | 7,796,872 | ' | |
Mortgage-backed and asset-backed securities, Amortized Cost | 100,639 | ' | |
Total fixed maturities available for sale, Amortized Cost | 12,618,368 | 12,488,875 | [1] |
Fixed maturities available for sale, Fair Value - Due in one year or less | 196,987 | ' | |
Fixed maturities available for sale, Fair Value - Due from one to five years | 452,731 | ' | |
Fixed maturities available for sale, Fair Value - Due from five to ten years | 1,039,939 | ' | |
Fixed maturities available for sale, Fair Value - Due from ten to twenty years | 3,507,188 | ' | |
Fixed maturities available for sale, Fair Value - Due after twenty years | 8,318,545 | ' | |
Mortgage-backed and asset-backed securities, Fair Value | 103,061 | ' | |
Debt Securities Fair Value | $13,618,451 | $12,879,133 | [1] |
[1] | Derived from audited financial statements |
Investments_Schedule_of_Select
Investments - Schedule of Selected Information about Sales of Fixed Maturities (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Proceeds from sales | $16,049 | $46,361 |
Fixed Maturities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Proceeds from sales | 16,050 | 46,361 |
Gross realized gains | 15,925 | 991 |
Gross realized losses | $0 | ($776) |
Investments_Assets_Measured_at
Investments - Assets Measured at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | $13,618,451 | $12,879,133 | [1] |
Equity securities | 1,309 | 1,884 | [1] |
Total fixed maturities and equity securities | 13,619,760 | ' | |
Percent of total | 100.00% | ' | |
Fixed Maturities [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 13,618,451 | ' | |
Fixed Maturities [Member] | U.S. Government Direct, Guaranteed, and Government-Sponsored Enterprises [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 380,056 | ' | |
Fixed Maturities [Member] | States, Municipalities, and Political Subdivisions [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 1,379,464 | ' | |
Fixed Maturities [Member] | Foreign Governments [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 44,160 | ' | |
Fixed Maturities [Member] | Corporates [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 11,183,437 | ' | |
Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 64,330 | ' | |
Fixed Maturities [Member] | Other Asset-backed Securities [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 35,448 | ' | |
Fixed Maturities [Member] | Redeemable Preferred Stocks [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 531,556 | ' | |
Equity Securities [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Equity securities | 1,309 | ' | |
Fair Value, Inputs, Level 1 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Total fixed maturities and equity securities | 80,200 | ' | |
Percent of total | 0.60% | ' | |
Fair Value, Inputs, Level 1 [Member] | Fixed Maturities [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 79,667 | ' | |
Fair Value, Inputs, Level 1 [Member] | Fixed Maturities [Member] | U.S. Government Direct, Guaranteed, and Government-Sponsored Enterprises [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 0 | ' | |
Fair Value, Inputs, Level 1 [Member] | Fixed Maturities [Member] | States, Municipalities, and Political Subdivisions [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 0 | ' | |
Fair Value, Inputs, Level 1 [Member] | Fixed Maturities [Member] | Foreign Governments [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 0 | ' | |
Fair Value, Inputs, Level 1 [Member] | Fixed Maturities [Member] | Corporates [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 56,745 | ' | |
Fair Value, Inputs, Level 1 [Member] | Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 0 | ' | |
Fair Value, Inputs, Level 1 [Member] | Fixed Maturities [Member] | Other Asset-backed Securities [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 0 | ' | |
Fair Value, Inputs, Level 1 [Member] | Fixed Maturities [Member] | Redeemable Preferred Stocks [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 22,922 | ' | |
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Equity securities | 533 | ' | |
Fair Value, Inputs, Level 2 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Total fixed maturities and equity securities | 13,128,424 | ' | |
Percent of total | 96.40% | ' | |
Fair Value, Inputs, Level 2 [Member] | Fixed Maturities [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 13,128,424 | ' | |
Fair Value, Inputs, Level 2 [Member] | Fixed Maturities [Member] | U.S. Government Direct, Guaranteed, and Government-Sponsored Enterprises [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 380,056 | ' | |
Fair Value, Inputs, Level 2 [Member] | Fixed Maturities [Member] | States, Municipalities, and Political Subdivisions [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 1,379,464 | ' | |
Fair Value, Inputs, Level 2 [Member] | Fixed Maturities [Member] | Foreign Governments [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 44,160 | ' | |
Fair Value, Inputs, Level 2 [Member] | Fixed Maturities [Member] | Corporates [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 10,780,662 | ' | |
Fair Value, Inputs, Level 2 [Member] | Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 0 | ' | |
Fair Value, Inputs, Level 2 [Member] | Fixed Maturities [Member] | Other Asset-backed Securities [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 35,448 | ' | |
Fair Value, Inputs, Level 2 [Member] | Fixed Maturities [Member] | Redeemable Preferred Stocks [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 508,634 | ' | |
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Equity securities | 0 | ' | |
Fair Value, Inputs, Level 3 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Total fixed maturities and equity securities | 411,136 | ' | |
Percent of total | 3.00% | ' | |
Fair Value, Inputs, Level 3 [Member] | Fixed Maturities [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 410,360 | ' | |
Fair Value, Inputs, Level 3 [Member] | Fixed Maturities [Member] | U.S. Government Direct, Guaranteed, and Government-Sponsored Enterprises [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 0 | ' | |
Fair Value, Inputs, Level 3 [Member] | Fixed Maturities [Member] | States, Municipalities, and Political Subdivisions [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 0 | ' | |
Fair Value, Inputs, Level 3 [Member] | Fixed Maturities [Member] | Foreign Governments [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 0 | ' | |
Fair Value, Inputs, Level 3 [Member] | Fixed Maturities [Member] | Corporates [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 346,030 | ' | |
Fair Value, Inputs, Level 3 [Member] | Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 64,330 | ' | |
Fair Value, Inputs, Level 3 [Member] | Fixed Maturities [Member] | Other Asset-backed Securities [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 0 | ' | |
Fair Value, Inputs, Level 3 [Member] | Fixed Maturities [Member] | Redeemable Preferred Stocks [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Fair value fixed maturities measured on recurring basis | 0 | ' | |
Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis [Line Items] | ' | ' | |
Equity securities | $776 | ' | |
[1] | Derived from audited financial statements |
Investments_Schedule_of_Change
Investments - Schedule of Changes in Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Investment [Line Items] | ' | ' |
Beginning Balance | $359,281 | $286,363 |
Included in realized gains/losses | 15,925 | 0 |
Included in other comprehensive income | 20,055 | 2,415 |
Acquisitions | 33,791 | 62,310 |
Sales | -16,050 | 0 |
Amortization | 1,310 | 631 |
Other | -3,176 | 0 |
Transfers in and/or out of Level 3 | 0 | -16,531 |
Ending Balance | 411,136 | 335,188 |
Percent of total fixed maturity and equity securities | 3.00% | 2.50% |
Asset-backed Securities [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Beginning Balance | 0 | 7,981 |
Included in realized gains/losses | 0 | 0 |
Included in other comprehensive income | 0 | 426 |
Acquisitions | 0 | 0 |
Sales | 0 | 0 |
Amortization | 0 | -57 |
Other | 0 | 0 |
Transfers in and/or out of Level 3 | 0 | -8,350 |
Ending Balance | 0 | 0 |
Percent of total fixed maturity and equity securities | 0.00% | 0.00% |
Collateralized Debt Obligations [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Beginning Balance | 58,205 | 46,571 |
Included in realized gains/losses | 15,924 | 0 |
Included in other comprehensive income | 7,283 | 2,852 |
Acquisitions | 0 | 0 |
Sales | -16,049 | 0 |
Amortization | 1,307 | 691 |
Other | -2,340 | 0 |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending Balance | 64,330 | 50,114 |
Percent of total fixed maturity and equity securities | 0.50% | 0.40% |
Corporates [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Beginning Balance | 300,300 | 231,072 |
Included in realized gains/losses | 1 | 0 |
Included in other comprehensive income | 12,772 | -863 |
Acquisitions | 33,791 | 62,310 |
Sales | -1 | 0 |
Amortization | 3 | -3 |
Other | -836 | 0 |
Transfers in and/or out of Level 3 | 0 | -8,181 |
Ending Balance | 346,030 | 284,335 |
Percent of total fixed maturity and equity securities | 2.50% | 2.10% |
Equity Securities [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Beginning Balance | 776 | 739 |
Included in realized gains/losses | 0 | 0 |
Included in other comprehensive income | 0 | 0 |
Acquisitions | 0 | 0 |
Sales | 0 | 0 |
Amortization | 0 | 0 |
Other | 0 | 0 |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending Balance | $776 | $739 |
Percent of total fixed maturity and equity securities | 0.00% | 0.00% |
Investments_Schedule_of_Unreal
Investments - Schedule of Unrealized Investment Losses by Class of Investment (Detail) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value, Less than Twelve Months | $1,678,493 |
Fair Value, Twelve Months or Longer | 1,123,273 |
Fair Value, Total | 2,801,766 |
Unrealized Loss Less Than Twelve Months | -82,682 |
Unrealized Loss Twelve Months or Longer | -133,133 |
Unrealized Loss Total | -215,815 |
Fixed Maturities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value, Less than Twelve Months | 1,678,493 |
Fair Value, Twelve Months or Longer | 1,123,273 |
Fair Value, Total | 2,801,766 |
Unrealized Loss Less Than Twelve Months | -82,682 |
Unrealized Loss Twelve Months or Longer | -133,133 |
Unrealized Loss Total | -215,815 |
Equity Securities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value, Less than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 0 |
Fair Value, Total | 0 |
Unrealized Loss Less Than Twelve Months | 0 |
Unrealized Loss Twelve Months or Longer | 0 |
Unrealized Loss Total | 0 |
U.S. Government Direct, Guaranteed, and Government-Sponsored Enterprises [Member] | Fixed Maturities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value, Less than Twelve Months | 63,633 |
Fair Value, Twelve Months or Longer | 293,591 |
Fair Value, Total | 357,224 |
Unrealized Loss Less Than Twelve Months | -6,031 |
Unrealized Loss Twelve Months or Longer | -45,019 |
Unrealized Loss Total | -51,050 |
States, Municipalities, and Political Subdivisions [Member] | Fixed Maturities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value, Less than Twelve Months | 80,424 |
Fair Value, Twelve Months or Longer | 10,960 |
Fair Value, Total | 91,384 |
Unrealized Loss Less Than Twelve Months | -3,167 |
Unrealized Loss Twelve Months or Longer | -696 |
Unrealized Loss Total | -3,863 |
Foreign Governments [Member] | Fixed Maturities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value, Less than Twelve Months | 895 |
Fair Value, Twelve Months or Longer | 6,092 |
Fair Value, Total | 6,987 |
Unrealized Loss Less Than Twelve Months | -1 |
Unrealized Loss Twelve Months or Longer | -16 |
Unrealized Loss Total | -17 |
Corporates [Member] | Fixed Maturities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value, Less than Twelve Months | 1,485,588 |
Fair Value, Twelve Months or Longer | 718,802 |
Fair Value, Total | 2,204,390 |
Unrealized Loss Less Than Twelve Months | -72,557 |
Unrealized Loss Twelve Months or Longer | -74,730 |
Unrealized Loss Total | -147,287 |
Collateralized Debt Obligations [Member] | Fixed Maturities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value, Less than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 14,715 |
Fair Value, Total | 14,715 |
Unrealized Loss Less Than Twelve Months | 0 |
Unrealized Loss Twelve Months or Longer | -6,634 |
Unrealized Loss Total | -6,634 |
Other Asset-backed Securities [Member] | Fixed Maturities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value, Less than Twelve Months | 0 |
Fair Value, Twelve Months or Longer | 2,951 |
Fair Value, Total | 2,951 |
Unrealized Loss Less Than Twelve Months | 0 |
Unrealized Loss Twelve Months or Longer | -36 |
Unrealized Loss Total | -36 |
Redeemable Preferred Stocks [Member] | Fixed Maturities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value, Less than Twelve Months | 47,953 |
Fair Value, Twelve Months or Longer | 76,162 |
Fair Value, Total | 124,115 |
Unrealized Loss Less Than Twelve Months | -926 |
Unrealized Loss Twelve Months or Longer | -6,002 |
Unrealized Loss Total | ($6,928) |
Investments_Schedule_of_Additi
Investments - Schedule of Additional Information about Investments in Unrealized Loss Position (Detail) | Mar. 31, 2014 | Dec. 31, 2013 |
Issues | Issues | |
Investments Debt And Equity Securities [Abstract] | ' | ' |
Number of issues (Cusip numbers) held, Less than Twelve Months | 272 | 462 |
Number of issues (Cusip numbers) held, Twelve Months or Longer | 207 | 130 |
Number of issues (Cusip numbers) held, Total | 479 | 592 |
Investments_Additional_Informa
Investments - Additional Information (Detail) | Mar. 31, 2014 | Dec. 31, 2013 |
Issues | Issues | |
Investments Debt And Equity Securities [Abstract] | ' | ' |
Total issues of fixed-maturities and equities | 1,612 | 1,619 |
Supplemental_Information_about2
Supplemental Information about Changes to Accumulated Other Comprehensive Income - Schedule of Change in Balance by Component of Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | |
Accumulated other comprehensive income (loss), Beginning Balance | $210,981 | [1] | $925,275 |
Other comprehensive income (loss) before reclassifications, net of tax | 405,653 | -79,867 | |
Reclassifications, net of tax | -10,576 | 4,622 | |
Other comprehensive income (loss) | 395,077 | -75,245 | |
Accumulated other comprehensive income (loss), Ending Balance | 606,058 | 850,030 | |
Pension Adjustments [Member] | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | |
Accumulated other comprehensive income (loss), Beginning Balance | -63,353 | -109,283 | |
Other comprehensive income (loss) before reclassifications, net of tax | 0 | 0 | |
Reclassifications, net of tax | 1,673 | 2,952 | |
Other comprehensive income (loss) | 1,673 | 2,952 | |
Accumulated other comprehensive income (loss), Ending Balance | -61,680 | -106,331 | |
Foreign Exchange [Member] | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | |
Accumulated other comprehensive income (loss), Beginning Balance | 24,866 | 26,608 | |
Other comprehensive income (loss) before reclassifications, net of tax | -738 | -749 | |
Reclassifications, net of tax | 0 | 0 | |
Other comprehensive income (loss) | -738 | -749 | |
Accumulated other comprehensive income (loss), Ending Balance | 24,128 | 25,859 | |
Deferred Acquisition Costs [Member] | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | |
Accumulated other comprehensive income (loss), Beginning Balance | -6,728 | -16,417 | |
Other comprehensive income (loss) before reclassifications, net of tax | -2,748 | 1,922 | |
Reclassifications, net of tax | 0 | 0 | |
Other comprehensive income (loss) | -2,748 | 1,922 | |
Accumulated other comprehensive income (loss), Ending Balance | -9,476 | -14,495 | |
Available for Sale Assets [Member] | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | |
Accumulated other comprehensive income (loss), Beginning Balance | 256,196 | 1,024,367 | |
Other comprehensive income (loss) before reclassifications, net of tax | 409,139 | -81,040 | |
Reclassifications, net of tax | -12,249 | 1,670 | |
Other comprehensive income (loss) | 396,890 | -79,370 | |
Accumulated other comprehensive income (loss), Ending Balance | $653,086 | $944,997 | |
[1] | Derived from audited financial statements |
Supplemental_Information_about3
Supplemental Information about Changes to Accumulated Other Comprehensive Income - Summary of Reclassification out of Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Other Comprehensive Income Loss Reclassification Adjustments [Line Items] | ' | ' |
Tax | ($901) | ($1,591) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' |
Other Comprehensive Income Loss Reclassification Adjustments [Line Items] | ' | ' |
Total after tax | -10,576 | 4,622 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized gains (losses) on available for sale assets [Member] | ' | ' |
Other Comprehensive Income Loss Reclassification Adjustments [Line Items] | ' | ' |
Realized (gains) losses | -16,619 | 2,561 |
Amortization of (discount) premium | -2,227 | -1,882 |
Total before tax | -18,846 | 679 |
Tax | 6,597 | 991 |
Total after tax | -12,249 | 1,670 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension adjustments [Member] | ' | ' |
Other Comprehensive Income Loss Reclassification Adjustments [Line Items] | ' | ' |
Amortization of prior service cost | 528 | 571 |
Amortization of actuarial gain (loss) | 2,046 | 3,972 |
Total before tax | 2,574 | 4,543 |
Tax | -901 | -1,591 |
Total after tax | $1,673 | $2,952 |
Business_Segments_Adjustments_
Business Segments - Adjustments for Difference in Interim Medicare Part D Results for Segment Purposes and GAAP (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Disclosure [Line Items] | ' | ' |
Benefit costs deferred | $586,517 | $552,003 |
Government risk-sharing premium adjustment | -819,020 | -784,814 |
Pre-tax addition to segment interim period income | 20,276 | 12,680 |
After tax amount | 13,179 | 8,242 |
Adjustments [Member] | ' | ' |
Segment Reporting Disclosure [Line Items] | ' | ' |
Benefit costs deferred | 47,671 | 28,304 |
Government risk-sharing premium adjustment | -27,395 | -15,624 |
Pre-tax addition to segment interim period income | $20,276 | $12,680 |
Business_Segments_Reconciliati
Business Segments - Reconciliation of Health Premium Included in the segment Analysis (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Health premium | $329,863 | $313,871 |
Health premium earned per segment, Change % | 5.00% | ' |
Medicare Part D [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Health premium | 83,033 | 76,720 |
Health premium earned per segment, Change % | 8.00% | ' |
Other Health [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Health premium | 219,435 | 221,527 |
Health premium earned per segment, Change % | -1.00% | ' |
Part D risk sharing adjustments [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Health premium | $27,395 | $15,624 |
Health premium earned per segment, Change % | 75.00% | ' |
Business_Segments_Additional_I
Business Segments - Additional Information (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Settled Litigation [Member] | ' |
Segment Reporting Disclosure [Line Items] | ' |
Litigation settlement amount | ($3,700,000) |
Litigation settlement amount (after tax) | -2,400,000 |
Settled Litigation Regarding Investments [Member] | ' |
Segment Reporting Disclosure [Line Items] | ' |
Litigation settlement amount | 1,200,000 |
Litigation settlement amount (after tax) | $752,000 |
Business_Segments_Reconciliati1
Business Segments - Reconciliation of Segment Operating Information to Consolidated Statement of Operations (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Premium | $819,020 | $784,814 |
Net investment income | 181,000 | 176,839 |
Other income | 481 | 470 |
Total revenue | 1,000,501 | 962,123 |
Policy benefits | 586,517 | 552,003 |
Policy reserves | 0 | 0 |
Deferred acquisition costs | 0 | 0 |
Amortization of acquisition costs | 104,733 | 101,714 |
Commissions, premium taxes, and non-deferred acquisition costs | 59,378 | 58,251 |
Insurance administrative expense | 46,704 | 43,935 |
Parent expense | 1,743 | 2,120 |
Stock compensation expense | 8,509 | 6,253 |
Interest expense | 19,049 | 20,877 |
Total benefits and expenses | 826,633 | 785,153 |
Subtotal | 173,868 | 176,970 |
Nonoperating items | 22,769 | 12,680 |
Amortization of low-income housing | 7,051 | 6,201 |
Measure of segment profitability (pretax) | 203,688 | 195,851 |
Deduct applicable income taxes | -66,835 | -64,209 |
Segment profits after tax | 136,853 | 131,642 |
Add back income taxes applicable to segment profitability | 66,835 | 64,209 |
Add (deduct) realized investment gains (losses) | 16,619 | -3,907 |
Deduct Part D adjustment | -20,276 | -12,680 |
Deduct amortization of low-income housing | -7,051 | -6,201 |
Deduct legal settlement expenses | -2,493 | ' |
Income before income taxes | 190,487 | 173,063 |
Operating Segments [Member] | Life Insurance [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Premium | 489,058 | 470,813 |
Total revenue | 489,058 | 470,813 |
Policy benefits | 320,176 | 305,141 |
Policy reserves | -130,511 | -125,016 |
Deferred acquisition costs | 41,690 | 41,191 |
Amortization of acquisition costs | 83,600 | 81,099 |
Commissions, premium taxes, and non-deferred acquisition costs | 33,484 | 35,288 |
Total benefits and expenses | 348,439 | 337,703 |
Subtotal | 140,619 | 133,110 |
Measure of segment profitability (pretax) | 140,619 | 133,110 |
Operating Segments [Member] | Health Insurance [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Premium | 219,435 | 221,527 |
Total revenue | 219,435 | 221,527 |
Policy benefits | 141,786 | 143,516 |
Policy reserves | -15,632 | -14,540 |
Deferred acquisition costs | 5,598 | 5,599 |
Amortization of acquisition costs | 18,608 | 17,687 |
Commissions, premium taxes, and non-deferred acquisition costs | 19,618 | 19,394 |
Total benefits and expenses | 169,978 | 171,656 |
Subtotal | 49,457 | 49,871 |
Measure of segment profitability (pretax) | 49,457 | 49,871 |
Operating Segments [Member] | Medicare Part D [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Premium | 83,033 | 76,720 |
Total revenue | 83,033 | 76,720 |
Policy benefits | 66,261 | 64,307 |
Deferred acquisition costs | 175 | 165 |
Amortization of acquisition costs | 705 | 550 |
Commissions, premium taxes, and non-deferred acquisition costs | 6,326 | 3,627 |
Total benefits and expenses | 73,467 | 68,649 |
Subtotal | 9,566 | 8,071 |
Measure of segment profitability (pretax) | 9,566 | 8,071 |
Operating Segments [Member] | Annuity [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Premium | 99 | 130 |
Total revenue | 99 | 130 |
Policy benefits | 10,623 | 10,735 |
Policy reserves | -13,791 | -14,459 |
Deferred acquisition costs | 389 | 488 |
Amortization of acquisition costs | 1,820 | 2,378 |
Commissions, premium taxes, and non-deferred acquisition costs | 13 | 16 |
Total benefits and expenses | -946 | -842 |
Subtotal | 1,045 | 972 |
Measure of segment profitability (pretax) | 1,045 | 972 |
Operating Segments [Member] | Investment [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net investment income | 188,051 | 183,040 |
Total revenue | 188,051 | 183,040 |
Policy reserves | 159,934 | 154,015 |
Deferred acquisition costs | -47,852 | -47,443 |
Interest expense | 19,049 | 20,877 |
Total benefits and expenses | 131,131 | 127,449 |
Subtotal | 56,920 | 55,591 |
Measure of segment profitability (pretax) | 56,920 | 55,591 |
Operating Segments [Member] | Other and Corporate [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Other income | 544 | 544 |
Total revenue | 544 | 544 |
Insurance administrative expense | 44,211 | 43,935 |
Parent expense | 1,743 | 2,120 |
Stock compensation expense | 8,509 | 6,253 |
Total benefits and expenses | 54,463 | 52,308 |
Subtotal | -53,919 | -51,764 |
Measure of segment profitability (pretax) | -53,919 | -51,764 |
Adjustments [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Premium | 27,395 | 15,624 |
Net investment income | -7,051 | -6,201 |
Other income | -63 | -74 |
Total revenue | 20,281 | 9,349 |
Policy benefits | 47,671 | 28,304 |
Commissions, premium taxes, and non-deferred acquisition costs | -63 | -74 |
Insurance administrative expense | 2,493 | ' |
Total benefits and expenses | 50,101 | 28,230 |
Subtotal | -29,820 | -18,881 |
Nonoperating items | 22,769 | 12,680 |
Amortization of low-income housing | 7,051 | 6,201 |
Measure of segment profitability (pretax) | 0 | 0 |
Deduct Part D adjustment | -20,276 | -12,680 |
Deduct amortization of low-income housing | ($7,051) | ($6,201) |
Business_Segments_Analysis_of_
Business Segments - Analysis of Profitability by Segment (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Pretax operating income | $203,688 | $195,851 |
Applicable taxes | -66,835 | -64,209 |
Net operating income | 136,853 | 131,642 |
Realized gains (losses)-Investments | 10,802 | -3,768 |
Part D adjustment | -13,179 | -8,242 |
Legal settlement expense | -1,620 | 0 |
Net income | 132,856 | 119,632 |
Applicable taxes, Increase (Decrease) | -2,626 | ' |
Net operating income, Increase (Decrease) | 5,211 | ' |
Realized gains (losses) - Investments net of tax, Increase (Decrease) | 14,570 | ' |
Part D adjustment net of tax, Increase (Decrease) | -4,937 | ' |
Legal settlement expenses net of tax, Increase (Decrease) | -1,620 | ' |
Net income, Increase (Decrease) | 13,224 | ' |
Pretax operating income, Increase (Decrease) % | 4.00% | ' |
Applicable taxes, Change % | 4.00% | ' |
Net operating income, Change % | 4.00% | ' |
Net income, Change % | 11.00% | ' |
Operating Segments [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Pretax operating income, Change | 7,837 | ' |
Operating Segments [Member] | Life Insurance [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Pretax operating income | 140,619 | 133,110 |
Pretax operating income, Change | 7,509 | ' |
Pretax operating income, Increase (Decrease) % | 6.00% | ' |
Operating Segments [Member] | Health Insurance [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Pretax operating income | 49,457 | 49,871 |
Pretax operating income, Change | -414 | ' |
Pretax operating income, Increase (Decrease) % | -1.00% | ' |
Operating Segments [Member] | Medicare Part D [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Pretax operating income | 9,566 | 8,071 |
Pretax operating income, Change | 1,495 | ' |
Pretax operating income, Increase (Decrease) % | 19.00% | ' |
Operating Segments [Member] | Annuity [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Pretax operating income | 1,045 | 972 |
Pretax operating income, Change | 73 | ' |
Operating Segments [Member] | Investment [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Pretax operating income | 56,920 | 55,591 |
Pretax operating income, Change | 1,329 | ' |
Pretax operating income, Increase (Decrease) % | 2.00% | ' |
Operating Segments [Member] | Other and Corporate [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Pretax operating income | -53,919 | -51,764 |
Operating Segments [Member] | Other and Corporate [Member] | Other Income [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Pretax operating income | 544 | 544 |
Pretax operating income, Change | 0 | ' |
Pretax operating income, Increase (Decrease) % | 0.00% | ' |
Operating Segments [Member] | Other and Corporate [Member] | Administrative Expense [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Pretax operating income | -44,211 | -43,935 |
Pretax operating income, Change | -276 | ' |
Pretax operating income, Increase (Decrease) % | 1.00% | ' |
Operating Segments [Member] | Other and Corporate [Member] | Corporate [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Pretax operating income | -10,252 | -8,373 |
Pretax operating income, Change | ($1,879) | ' |
Pretax operating income, Increase (Decrease) % | 22.00% | ' |