Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'HMN | ' |
Entity Common Stock, Shares Outstanding | ' | 40,325,799 |
Entity Registrant Name | 'HORACE MANN EDUCATORS CORP /DE/ | ' |
Entity Central Index Key | '0000850141 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Investments | ' | ' | ||
Fixed maturities, available for sale, at fair value (amortized cost 2013, $5,662,718; 2012, $5,311,457) | $5,940,522 | $5,962,232 | ||
Equity securities, available for sale, at fair value (cost 2013, $83,079; 2012, $52,396) | 86,631 | 53,503 | ||
Short-term and other investments | 313,599 | 276,362 | ||
Total investments | 6,340,752 | 6,292,097 | ||
Cash | 45,773 | 15,181 | ||
Deferred policy acquisition costs | 233,168 | 196,885 | ||
Goodwill | 47,396 | 47,396 | ||
Other assets | 227,957 | 217,886 | ||
Separate Account (variable annuity) assets | 1,627,685 | 1,398,281 | ||
Total assets | 8,522,731 | 8,167,726 | ||
Policy liabilities | ' | ' | ||
Fixed annuity contract liabilities | 3,454,356 | 3,257,758 | ||
Interest-sensitive life contract liabilities | 773,791 | 761,671 | ||
Unpaid claims and claim expenses | 296,983 | 289,395 | ||
Future policy benefits | 221,380 | 214,562 | ||
Unearned premiums | 223,301 | 213,268 | ||
Total policy liabilities | 4,969,811 | 4,736,654 | ||
Other policyholder funds | 97,823 | 103,227 | ||
Other liabilities | 500,247 | 445,952 | ||
Short-term debt | 38,000 | 38,000 | ||
Long-term debt | 199,858 | 199,809 | ||
Separate Account (variable annuity) liabilities | 1,627,685 | 1,398,281 | ||
Total liabilities | 7,433,424 | 6,921,923 | ||
Preferred stock, $0.001 par value, authorized 1,000,000 shares; none issued | 0 | 0 | ||
Common stock, $0.001 par value, authorized75,000,000 shares; issued, 2013, 63,236,761;2012, 62,311,787 | 63 | 62 | ||
Additional paid-in capital | 400,081 | 383,135 | ||
Retained earnings | 974,264 | 921,969 | ||
Accumulated other comprehensive income (loss), net of taxes: | ' | ' | ||
Net unrealized gains on fixed maturities and equity securities | 160,551 | [1],[2] | 382,400 | [1],[2] |
Net funded status of pension and other postretirement benefit obligations | -15,311 | [1] | -15,311 | [1] |
Treasury stock, at cost, 2013, 23,117,554 shares;2012, 22,943,925 shares | -430,341 | -426,452 | ||
Total shareholders’ equity | 1,089,307 | 1,245,803 | ||
Total liabilities and shareholders’ equity | $8,522,731 | $8,167,726 | ||
[1] | All amounts are net of tax. | |||
[2] | The pretax amounts reclassified from accumulated other comprehensive income, $(1,407) and $20,872, are included in net realized investment gains and losses and the related tax expenses (benefits), $(492) and $7,306, are included in income tax expense in the Consolidated Statements of Operations for the three and nine months ended September 30, 2013, respectively. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets [Abstract] | ' | ' |
Fixed maturities, available for sale, amortized cost | $5,662,718 | $5,311,457 |
Equity securities, available for sale, cost | $83,079 | $52,396 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 63,236,761 | 62,311,787 |
Treasury stock, shares | 23,117,554 | 22,943,925 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues | ' | ' | ' | ' |
Insurance premiums and contract charges earned | $173,761 | $167,904 | $514,480 | $499,743 |
Net investment income | 78,466 | 76,649 | 233,230 | 228,658 |
Net realized investment gains (losses) | -1,407 | 10,762 | 20,872 | 21,060 |
Other income | 1,064 | 1,233 | 3,470 | 5,936 |
Total revenues | 251,884 | 256,548 | 772,052 | 755,397 |
Benefits, losses and expenses | ' | ' | ' | ' |
Benefits, claims and settlement expenses | 112,701 | 106,051 | 346,165 | 344,913 |
Interest credited | 42,924 | 41,411 | 126,430 | 121,844 |
Policy acquisition expenses amortized | 20,911 | 20,406 | 63,985 | 60,538 |
Operating expenses | 41,407 | 37,955 | 119,239 | 114,382 |
Interest expense | 3,553 | 3,556 | 10,656 | 10,666 |
Total benefits, losses and expenses | 221,496 | 209,379 | 666,475 | 652,343 |
Income before income taxes | 30,388 | 47,169 | 105,577 | 103,054 |
Income tax expense | 6,789 | 14,903 | 28,971 | 31,014 |
Net income | 23,599 | 32,266 | 76,606 | 72,040 |
Net income per share | ' | ' | ' | ' |
Basic | $0.59 | $0.82 | $1.93 | $1.82 |
Diluted | $0.57 | $0.78 | $1.85 | $1.74 |
Weighted average number of shares and equivalent shares (in thousands) | ' | ' | ' | ' |
Basic | 40,001 | 39,381 | 39,767 | 39,572 |
Diluted | 41,732 | 41,138 | 41,363 | 41,295 |
Net realized investment gains (losses) | ' | ' | ' | ' |
Total other-than-temporary impairment losses on securities | -11 | 0 | -974 | 0 |
Portion of losses recognized in other comprehensive income | 0 | 0 | 0 | 0 |
Net other-than-temporary impairment losses on securities recognized in earnings | -11 | 0 | -974 | 0 |
Realized gains (losses), net | -1,396 | 10,762 | 21,846 | 21,060 |
Total | ($1,407) | $10,762 | $20,872 | $21,060 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Comprehensive income (loss) | ' | ' | ' | ' | ||
Net income | $23,599 | $32,266 | $76,606 | $72,040 | ||
Other comprehensive income (loss), net of taxes: | ' | ' | ' | ' | ||
Change in net unrealized gains and losses on fixed maturities and equity securities | -36,296 | [1],[2] | 61,557 | -221,849 | [1],[2] | 127,979 |
Change in net funded status of pension and other postretirement benefit obligations | 0 | 0 | 0 | 0 | ||
Other comprehensive income (loss) | -36,296 | [1] | 61,557 | -221,849 | [1] | 127,979 |
Total | ($12,697) | $93,823 | ($145,243) | $200,019 | ||
[1] | All amounts are net of tax. | |||||
[2] | The pretax amounts reclassified from accumulated other comprehensive income, $(1,407) and $20,872, are included in net realized investment gains and losses and the related tax expenses (benefits), $(492) and $7,306, are included in income tax expense in the Consolidated Statements of Operations for the three and nine months ended September 30, 2013, respectively. |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (USD $) | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss), net of taxes | Treasury stock, at cost | |
In Thousands | |||||||
Beginning balance at Dec. 31, 2011 | ' | $62 | $373,384 | $840,644 | $251,980 | ($410,717) | |
Options exercised, 2013, 766,716 shares; 2012, 297,592 shares | ' | 0 | ' | ' | ' | ' | |
Conversion of common stock units, 2013, 11,851 shares; 2012, 15,084 shares | ' | 0 | ' | ' | ' | ' | |
Conversion of restricted stock units, 2013, 146,407 shares; 2012, 91,327 shares | ' | 0 | ' | ' | ' | ' | |
Options exercised and conversion of common stock units and restricted stock units | ' | ' | 5,480 | ' | ' | ' | |
Share-based compensation expense | ' | ' | 1,207 | ' | ' | ' | |
Net income | 72,040 | ' | ' | 72,040 | ' | ' | |
Cash dividends, 2013, $0.585 per share; 2012, $0.39 per share | ' | ' | ' | -16,001 | ' | ' | |
Change in net unrealized gains and losses on fixed maturities and equity securities | 127,979 | ' | ' | ' | 127,979 | ' | |
Change in net funded status of pension and other postretirement benefit obligations | 0 | ' | ' | ' | 0 | ' | |
Acquisition of shares, 2013, 173,629 shares; 2012, 801,086 shares | ' | ' | ' | ' | ' | -13,640 | |
Ending balance at Sep. 30, 2012 | 1,232,418 | 62 | 380,071 | 896,683 | 379,959 | -424,357 | |
Beginning balance at Dec. 31, 2012 | 1,245,803 | 62 | 383,135 | 921,969 | 367,089 | -426,452 | |
Options exercised, 2013, 766,716 shares; 2012, 297,592 shares | ' | 1 | ' | ' | ' | ' | |
Conversion of common stock units, 2013, 11,851 shares; 2012, 15,084 shares | ' | 0 | ' | ' | ' | ' | |
Conversion of restricted stock units, 2013, 146,407 shares; 2012, 91,327 shares | ' | 0 | ' | ' | ' | ' | |
Options exercised and conversion of common stock units and restricted stock units | ' | ' | 15,881 | ' | ' | ' | |
Share-based compensation expense | ' | ' | 1,065 | ' | ' | ' | |
Net income | 76,606 | ' | ' | 76,606 | ' | ' | |
Cash dividends, 2013, $0.585 per share; 2012, $0.39 per share | ' | ' | ' | -24,311 | ' | ' | |
Change in net unrealized gains and losses on fixed maturities and equity securities | -221,849 | [1],[2] | ' | ' | ' | -221,849 | ' |
Change in net funded status of pension and other postretirement benefit obligations | 0 | ' | ' | ' | 0 | ' | |
Acquisition of shares, 2013, 173,629 shares; 2012, 801,086 shares | ' | ' | ' | ' | ' | -3,889 | |
Ending balance at Sep. 30, 2013 | $1,089,307 | $63 | $400,081 | $974,264 | $145,240 | ($430,341) | |
[1] | All amounts are net of tax. | ||||||
[2] | The pretax amounts reclassified from accumulated other comprehensive income, $(1,407) and $20,872, are included in net realized investment gains and losses and the related tax expenses (benefits), $(492) and $7,306, are included in income tax expense in the Consolidated Statements of Operations for the three and nine months ended September 30, 2013, respectively. |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Consolidated Statements of Changes in Shareholders' Equity [Abstract] | ' | ' |
Common stock, par value beginning balance | $0.00 | $0.00 |
Common stock, par value ending balance | $0.00 | $0.00 |
Options exercised, shares | 766,716 | 297,592 |
Conversion of common stock units, shares | 11,851 | 15,084 |
Conversion of restricted stock units, shares | 146,407 | 91,327 |
Cash dividends, per share | $0.59 | $0.39 |
Treasury stock, beginning balance, shares | 22,943,925 | 22,028,030 |
Treasury stock, acquisition of shares | 173,629 | 801,086 |
Treasury stock, ending balance, shares | 23,117,554 | 22,829,116 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows - operating activities | ' | ' |
Premiums collected | $516,404 | $497,282 |
Policyholder benefits paid | -361,356 | -362,726 |
Policy acquisition and other operating expenses paid | -192,196 | -177,154 |
Federal income taxes paid | -24,801 | -14,728 |
Investment income collected | 227,716 | 220,433 |
Interest expense paid | -7,159 | -7,232 |
Contribution to defined benefit pension plan trust | -3,103 | -2,534 |
Other | -4,581 | -3,107 |
Net cash provided by operating activities | 150,924 | 150,234 |
Fixed maturities | ' | ' |
Purchases | -907,186 | -1,018,438 |
Sales | 270,329 | 470,684 |
Maturities, paydowns, calls and redemptions | 361,925 | 453,184 |
Purchase of other invested assets | -25,000 | -50,000 |
Net cash used in short-term and other investments | -37,911 | -82,423 |
Net cash used in investing activities | -337,843 | -226,993 |
Cash flows - financing activities | ' | ' |
Dividends paid to shareholders | -24,311 | -16,001 |
Acquisition of treasury stock | -3,889 | -13,640 |
Exercise of stock options | 12,729 | 3,846 |
Annuity contracts, variable and fixed | ' | ' |
Deposits | 316,780 | 302,870 |
Benefits, withdrawals and net transfers to Separate Account (variable annuity) assets | -202,447 | -161,414 |
Life policy accounts | ' | ' |
Deposits | 1,136 | 1,326 |
Withdrawals and surrenders | -3,371 | -3,997 |
Cash received related to repurchase agreements | 121,285 | 0 |
Change in bank overdrafts | -401 | -1,763 |
Net cash provided by financing activities | 217,511 | 111,227 |
Net increase in cash | 30,592 | 34,468 |
Cash at beginning of period | 15,181 | 7,452 |
Cash at end of period | $45,773 | $41,920 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Note 1 - Basis of Presentation | |
The accompanying unaudited consolidated financial statements of Horace Mann Educators Corporation (“HMEC”; and together with its subsidiaries, the “Company” or “Horace Mann”) have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) and with the rules and regulations of the Securities and Exchange Commission (“SEC”), specifically Regulation S-X and the instructions to Form 10-Q. Certain information and note disclosures which are normally included in annual financial statements prepared in accordance with GAAP but are not required for interim reporting purposes have been omitted. The Company believes that these consolidated financial statements contain all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to present fairly the Company’s consolidated financial position as of September 30, 2013, the consolidated results of operations and comprehensive income for the three and nine months ended September 30, 2013 and 2012, and the consolidated changes in shareholders’ equity and cash flows for the nine months ended September 30, 2013 and 2012. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (1) the reported amounts of assets and liabilities, (2) disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and (3) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
The subsidiaries of HMEC market and underwrite personal lines of property and casualty (primarily personal lines automobile and homeowners) insurance, retirement annuities (primarily tax-qualified products) and life insurance, primarily to K-12 teachers, administrators and other employees of public schools and their families. HMEC’s principal operating subsidiaries are Horace Mann Life Insurance Company, Horace Mann Insurance Company, Teachers Insurance Company, Horace Mann Property & Casualty Insurance Company and Horace Mann Lloyds. | |
The Company has evaluated subsequent events through the date these consolidated financial statements were issued. | |
These consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes to consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for the full year. | |
The Company has reclassified the presentation of certain prior period information to conform with the 2013 presentation. | |
Adopted Accounting Standards | |
Comprehensive Income | |
Effective January 1, 2013, the Company prospectively adopted accounting guidance to improve the disclosure of reclassifications out of accumulated other comprehensive income. The guidance requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required to be reclassified in their entirety to net income in the same reporting period, the reclassifications are required to be cross-referenced to other disclosures that provide additional detail about those amounts. As shown in “Note 8 — Accumulated Other Comprehensive Income (Loss)”, certain disclosures in the Company’s Notes to Consolidated Financial Statements have been expanded to address additional information required by this guidance. The adoption of this accounting guidance did not have an effect on the results of operations or financial position of the Company. | |
Balance Sheet Offsetting | |
Effective January 1, 2013, the Company adopted accounting guidance to address disclosures about offsetting assets and liabilities. The guidance clarifies which instruments and transactions are subject to the offsetting disclosure requirements. The instruments and transactions include bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. The adoption of this accounting guidance did not have an effect on the results of operations or financial position of the Company. | |
Investments
Investments | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||
Investments | ' | |||||||||||||||||||
Note 2 - Investments | ||||||||||||||||||||
The Company's investment portfolio includes no free-standing derivative financial instruments (futures, forwards, swaps, option contracts or other financial instruments with similar characteristics), and there are no embedded derivative features related to the Company’s insurance products. | ||||||||||||||||||||
Fixed Maturities and Equity Securities | ||||||||||||||||||||
The Company’s investment portfolio is comprised primarily of fixed maturity securities (“fixed maturities”) and equity securities. The amortized cost or cost, unrealized investment gains and losses, fair values and other-than-temporary impairment (“OTTI”) included in accumulated other comprehensive income (loss) (“AOCI”) of all fixed maturities and equity securities in the portfolio as of September 30, 2013 and December 31, 2012 were as follows: | ||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | OTTI in | ||||||||||||||||
Cost/Cost | Gains | Losses | Value | AOCI (2) | ||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||
U.S. government and federally | ||||||||||||||||||||
sponsored agency obligations (1): | ||||||||||||||||||||
Mortgage-backed securities | $ | 559,749 | $ | 40,317 | $ | 12,705 | $ | 587,361 | $ | - | ||||||||||
Other, including | ||||||||||||||||||||
U.S. Treasury securities | 455,923 | 13,523 | 14,345 | 455,101 | - | |||||||||||||||
Municipal bonds | 1,395,769 | 93,091 | 29,249 | 1,459,611 | - | |||||||||||||||
Foreign government bonds | 49,501 | 5,169 | 349 | 54,321 | - | |||||||||||||||
Corporate bonds | 2,391,920 | 193,315 | 31,811 | 2,553,424 | - | |||||||||||||||
Other mortgage-backed securities | 809,856 | 29,251 | 8,403 | 830,704 | 2,786 | |||||||||||||||
Totals | $ | 5,662,718 | $ | 374,666 | $ | 96,862 | $ | 5,940,522 | $ | 2,786 | ||||||||||
Equity securities | $ | 83,079 | $ | 7,225 | $ | 3,673 | $ | 86,631 | $ | - | ||||||||||
31-Dec-12 | ||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||
U.S. government and federally | ||||||||||||||||||||
sponsored agency obligations (1): | ||||||||||||||||||||
Mortgage-backed securities | $ | 547,040 | $ | 72,644 | $ | 125 | $ | 619,559 | $ | - | ||||||||||
Other, including | ||||||||||||||||||||
U.S. Treasury securities | 371,706 | 37,857 | 135 | 409,428 | - | |||||||||||||||
Municipal bonds | 1,402,424 | 186,261 | 2,648 | 1,586,037 | - | |||||||||||||||
Foreign government bonds | 48,476 | 9,393 | - | 57,869 | - | |||||||||||||||
Corporate bonds | 2,258,554 | 313,430 | 4,950 | 2,567,034 | - | |||||||||||||||
Other mortgage-backed securities | 683,257 | 41,080 | 2,032 | 722,305 | 3,214 | |||||||||||||||
Totals | $ | 5,311,457 | $ | 660,665 | $ | 9,890 | $ | 5,962,232 | $ | 3,214 | ||||||||||
Equity securities | $ | 52,396 | $ | 2,397 | $ | 1,290 | $ | 53,503 | $ | - | ||||||||||
-1 | Fair value includes securities issued by Federal National Mortgage Association (“FNMA”) of $364,823 and $375,111; Federal Home Loan Mortgage Corporation (“FHLMC”) of $439,184 and $418,174; and Government National Mortgage Association (“GNMA”) of $126,881 and $136,998 as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||
-2 | Represents the amount of other-than-temporary impairment losses in AOCI which, beginning April 1, 2009, was not included in earnings under current accounting guidance. Amounts also include unrealized gains/losses on impaired securities relating to changes in the fair value of such securities subsequent to the impairment measurement date. | |||||||||||||||||||
Compared to December 31, 2012, the reduction in net unrealized gains at September 30, 2013 was due to higher yields on U.S. Treasury securities and virtually unchanged credit spreads across most asset classes in 2013, the combination of which resulted in a decrease in net unrealized gains for the Company’s holdings of corporate, municipal, mortgage-backed, and government securities. | ||||||||||||||||||||
The following table presents the fair value and gross unrealized losses of fixed maturities and equity securities in an unrealized loss position at September 30, 2013 and December 31, 2012, respectively. The Company views the decrease in value of all of the securities with unrealized losses at September 30, 2013 — which was driven largely by changes in interest rates, spread widening, financial market illiquidity and/or market volatility from the date of acquisition — as temporary. For fixed maturity securities, management does not have the intent to sell the securities and it is not more likely than not the Company will be required to sell the securities before the anticipated recovery of the amortized cost bases, and the present value of future cash flows exceeds the amortized cost bases. In addition, management expects to recover the entire cost bases of the fixed maturity securities. For equity securities, the Company has the ability and intent to hold the securities for the recovery of cost and recovery of cost is expected within a reasonable period of time. Therefore, no impairment of these securities was recorded at September 30, 2013. | ||||||||||||||||||||
12 Months or Less | More than 12 Months | Total | ||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||
U.S. government and federally | ||||||||||||||||||||
sponsored agency obligations: | ||||||||||||||||||||
Mortgage-backed securities | $ | 112,736 | $ | 12,705 | $ | 40 | $ | - | $ | 112,776 | $ | 12,705 | ||||||||
Other | 191,183 | 14,345 | - | - | 191,183 | 14,345 | ||||||||||||||
Municipal bonds | 369,099 | 27,759 | 12,010 | 1,490 | 381,109 | 29,249 | ||||||||||||||
Foreign government bonds | 5,626 | 349 | - | - | 5,626 | 349 | ||||||||||||||
Corporate bonds | 577,369 | 27,982 | 14,305 | 3,829 | 591,674 | 31,811 | ||||||||||||||
Other mortgage-backed securities | 222,222 | 7,246 | 29,125 | 1,157 | 251,347 | 8,403 | ||||||||||||||
Total fixed | ||||||||||||||||||||
maturity securities | 1,478,235 | 90,386 | 55,480 | 6,476 | 1,533,715 | 96,862 | ||||||||||||||
Equity securities (1) | 34,139 | 3,251 | 1,034 | 422 | 35,173 | 3,673 | ||||||||||||||
Combined totals | $ | 1,512,374 | $ | 93,637 | $ | 56,514 | $ | 6,898 | $ | 1,568,888 | $ | 100,535 | ||||||||
Number of positions with a | ||||||||||||||||||||
gross unrealized loss | 509 | 30 | 539 | |||||||||||||||||
Fair value as a percentage of | ||||||||||||||||||||
total fixed maturities and | ||||||||||||||||||||
equity securities fair value | 25.1 | % | 0.9 | % | 26 | % | ||||||||||||||
31-Dec-12 | ||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||
U.S. government and federally | ||||||||||||||||||||
sponsored agency obligations: | ||||||||||||||||||||
Mortgage-backed securities | $ | 11,006 | $ | 124 | $ | 50 | $ | 1 | $ | 11,056 | $ | 125 | ||||||||
Other | 9,944 | 135 | - | - | 9,944 | 135 | ||||||||||||||
Municipal bonds | 108,578 | 2,605 | 3,990 | 43 | 112,568 | 2,648 | ||||||||||||||
Foreign government bonds | - | - | - | - | - | - | ||||||||||||||
Corporate bonds | 56,481 | 875 | 26,725 | 4,075 | 83,206 | 4,950 | ||||||||||||||
Other mortgage-backed | 58,218 | 621 | 25,014 | 1,411 | 83,232 | 2,032 | ||||||||||||||
securities | ||||||||||||||||||||
Total fixed | ||||||||||||||||||||
maturity securities | 244,227 | 4,360 | 55,779 | 5,530 | 300,006 | 9,890 | ||||||||||||||
Equity securities (1) | 19,344 | 1,288 | 9 | 2 | 19,353 | 1,290 | ||||||||||||||
Combined totals | $ | 263,571 | $ | 5,648 | $ | 55,788 | $ | 5,532 | $ | 319,359 | $ | 11,180 | ||||||||
Number of positions with a | ||||||||||||||||||||
gross unrealized loss | 156 | 43 | 199 | |||||||||||||||||
Fair value as a percentage of | ||||||||||||||||||||
total fixed maturities and | ||||||||||||||||||||
equity securities fair value | 4.4 | % | 0.9 | % | 5.3 | % | ||||||||||||||
-1 | Includes nonredeemable (perpetual) preferred stocks, common stocks and closed-end funds. | |||||||||||||||||||
Credit Losses | ||||||||||||||||||||
The following table summarizes the cumulative amounts related to the Company’s credit loss component of the other-than-temporary impairment losses on fixed maturity securities held as of September 30, 2013 and 2012 that the Company did not intend to sell as of those dates, and it was not more likely than not that the Company would be required to sell the securities before the anticipated recovery of the amortized cost bases, for which the non-credit portions of the other-than-temporary impairment losses were recognized in other comprehensive income: | ||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||
September 30, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Cumulative credit loss (1) | ||||||||||||||||||||
Beginning of period | $ | 2,877 | $ | 3,957 | ||||||||||||||||
New credit losses (2) | 860 | 2 | ||||||||||||||||||
Losses related to securities sold or paid down during the period | - | -1,082 | ||||||||||||||||||
End of period | $ | 3,737 | $ | 2,877 | ||||||||||||||||
-1 | The cumulative credit loss amounts exclude other-than-temporary impairment losses on securities held as of the periods indicated that the Company intended to sell or it was more likely than not that the Company would be required to sell the security before the recovery of the amortized cost basis. | |||||||||||||||||||
-2 | For the nine months ended September 30, 2013, the other than temporary impairment loss was recorded on a Detroit general obligation bond. | |||||||||||||||||||
Maturities/Sales of Fixed Maturities and Equity Securities | ||||||||||||||||||||
The following table presents the distribution of the Company's fixed maturity securities portfolio by estimated expected maturity. Estimated expected maturities differ from contractual maturities, reflecting assumptions regarding borrowers’ utilization of the right to call or prepay obligations with or without call or prepayment penalties. For structured securities, including mortgage-backed securities and other asset-backed securities, estimated expected maturities consider broker-dealer survey prepayment assumptions and are verified for consistency with the interest rate and economic environments. | ||||||||||||||||||||
Percent of Total Fair Value | September 30, 2013 | |||||||||||||||||||
September 30, | December 31, | Fair | Amortized | |||||||||||||||||
2013 | 2012 | Value | Cost | |||||||||||||||||
Estimated expected maturity: | ||||||||||||||||||||
Due in 1 year or less | 4.6 | % | 4.3 | % | $ | 271,941 | $ | 259,224 | ||||||||||||
Due after 1 year through 5 years | 20.3 | 20.8 | 1,209,226 | 1,152,678 | ||||||||||||||||
Due after 5 years through 10 years | 38.5 | 38.4 | 2,290,089 | 2,182,994 | ||||||||||||||||
Due after 10 years | ||||||||||||||||||||
through 20 years | 19.9 | 18.7 | 1,179,999 | 1,124,817 | ||||||||||||||||
Due after 20 years | 16.7 | 17.8 | 989,267 | 943,005 | ||||||||||||||||
Total | 100 | % | 100 | % | $ | 5,940,522 | $ | 5,662,718 | ||||||||||||
Average option-adjusted | ||||||||||||||||||||
duration, in years | 6.3 | 6.3 | ||||||||||||||||||
Proceeds received from sales of fixed maturities and equity securities, each determined using the specific identification method, and gross gains and gross losses realized as a result of those sales for each period were: | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||
Proceeds received | $ | 56,343 | $ | 191,155 | $ | 270,329 | $ | 470,684 | ||||||||||||
Gross gains realized | 1,807 | 10,528 | 16,197 | 27,891 | ||||||||||||||||
Gross losses realized | -4,117 | -139 | -4,598 | -11,968 | ||||||||||||||||
Equity securities | ||||||||||||||||||||
Proceeds received | $ | 3,742 | $ | 1,970 | $ | 14,875 | $ | 2,894 | ||||||||||||
Gross gains realized | 531 | 67 | 3,875 | 84 | ||||||||||||||||
Gross losses realized | -103 | -157 | -490 | -233 | ||||||||||||||||
Unrealized Gains and Losses on Fixed Maturities and Equity Securities | ||||||||||||||||||||
Net unrealized gains and losses are computed as the difference between fair value and amortized cost for fixed maturities or cost for equity securities. The following table reconciles the net unrealized investment gains and losses, net of tax, included in accumulated other comprehensive income (loss), before the impact on deferred policy acquisition costs: | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Net unrealized investment gains (losses) | ||||||||||||||||||||
on fixed maturity securities, net of tax | ||||||||||||||||||||
Beginning of period | $ | 220,668 | $ | 356,104 | $ | 423,004 | $ | 284,338 | ||||||||||||
Change in unrealized investment | ||||||||||||||||||||
gains and losses | -41,288 | 70,702 | -231,116 | 146,569 | ||||||||||||||||
Reclassification of net realized | ||||||||||||||||||||
investment (gains) losses | ||||||||||||||||||||
to net income | 1,193 | -7,054 | -11,315 | -11,155 | ||||||||||||||||
End of period | $ | 180,573 | $ | 419,752 | $ | 180,573 | $ | 419,752 | ||||||||||||
Net unrealized investment gains (losses) | ||||||||||||||||||||
on equity securities, net of tax | ||||||||||||||||||||
Beginning of period | $ | 3,266 | $ | 543 | $ | 720 | $ | 2,408 | ||||||||||||
Change in unrealized investment | ||||||||||||||||||||
gains and losses | -679 | 646 | 3,840 | 1,373 | ||||||||||||||||
Reclassification of net realized | ||||||||||||||||||||
investment (gains) losses | ||||||||||||||||||||
to net income | -278 | 58 | -2,251 | -2,534 | ||||||||||||||||
End of period | $ | 2,309 | $ | 1,247 | $ | 2,309 | $ | 1,247 | ||||||||||||
Repurchase Agreements | ||||||||||||||||||||
Beginning in 2013, the Company enters into repurchase agreements to earn incremental spread income. A repurchase agreement is a transaction in which one party (transferor) agrees to sell securities to another party (transferee) in return for cash (or securities), with a simultaneous agreement to repurchase the same securities at a specified price at a later date. These transactions are generally short-term in nature, and therefore, the carrying amounts of these instruments approximate fair value. | ||||||||||||||||||||
As part of repurchase agreements, the Company transfers primarily U.S. government, government agency and corporate securities and receives cash. For the repurchase agreements, the Company receives cash in an amount equal to at least 95% of the fair value of the securities transferred, and the agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received from the repurchase program is typically invested in high quality floating rate fixed maturity securities. The Company accounts for the repurchase agreements as collateralized borrowings. The securities transferred under repurchase agreements are included in fixed maturity, available-for-sale securities with the obligation to repurchase those securities recorded in Other Liabilities on the Company's Consolidated Balance Sheets. The fair value of the securities transferred was $123,368 as of September 30, 2013. The obligation for securities sold under agreement to repurchase was $121,308, including accrued interest, as of September 30, 2013. | ||||||||||||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||||||
Note 3 - Fair Value of Financial Instruments | ||||||||||||||||||||
The Company is required under GAAP to disclose estimated fair values for certain financial and non-financial assets and liabilities. Fair values of the Company’s insurance contracts other than annuity contracts are not required to be disclosed. However, the estimated fair values of liabilities under all insurance contracts are taken into consideration in the Company’s overall management of interest rate risk through the matching of investment maturities with amounts due under insurance contracts. | ||||||||||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between knowledgeable, unrelated and willing market participants on the measurement date. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The Company categorizes its financial and non-financial assets and liabilities into a three-level hierarchy based on the priority of the inputs to the valuation technique. The three levels of inputs that may be used to measure fair value are: | ||||||||||||||||||||
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include fixed maturity and equity securities (both common stock and preferred stock) that are traded in an active exchange market, as well as U.S. Treasury securities. | |||||||||||||||||||
Level 2 | Unadjusted observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for the assets or liabilities. Level 2 assets and liabilities include fixed maturity securities with quoted prices that are traded less frequently than exchange-traded instruments. This category generally includes certain U.S. Government and agency mortgage-backed securities, non-agency structured securities, corporate fixed maturity securities and preferred stocks. | |||||||||||||||||||
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, certain discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation and for which the significant inputs are unobservable. This category generally includes certain private debt and equity investments. | |||||||||||||||||||
When the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. As a result, a Level 3 fair value measurement may include inputs that are observable (Level 1 or Level 2) and unobservable (Level 3). Net transfers into or out of Level 3 are reported as having occurred at the end of the reporting period in which the transfers were determined. | ||||||||||||||||||||
The following discussion describes the valuation methodologies used for financial assets and financial liabilities measured at fair value. The techniques utilized in estimating the fair values are affected by the assumptions used, including discount rates and estimates of the amount and timing of future cash flows. The use of different methodologies, assumptions and inputs may have a material effect on the estimated fair values of the Company’s securities holdings. Care should be exercised in deriving conclusions about the Company’s business, its value or financial position based on the fair value information of financial and nonfinancial assets and liabilities presented below. | ||||||||||||||||||||
Fair value estimates are made at a specific point in time, based on available market information and judgments about the financial asset or financial liability, including estimates of timing, amount of expected future cash flows and the credit standing of the issuer. In some cases, the fair value estimates cannot be substantiated by comparison to independent markets. In addition, the disclosed fair value may not be realized in the immediate settlement of the financial asset or financial liability. The disclosed fair values do not reflect any premium or discount that could result from offering for sale at one time an entire holding of a particular financial asset or financial liability. In periods of market disruption, the ability to observe prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from Level 1 to Level 2 or from Level 2 to Level 3. Potential taxes and other expenses that would be incurred in an actual sale or settlement are not reflected in amounts disclosed. | ||||||||||||||||||||
Investments | ||||||||||||||||||||
For fixed maturity securities, each month the Company obtains fair value prices from its investment managers and custodian bank. Fair values for the Company’s fixed maturity securities are based primarily on prices provided by its investment managers as well as its custodian bank for certain securities. The prices from the custodian bank are compared to prices from the investment managers. Differences in prices between the sources that the Company considers significant are researched and the Company utilizes the price that it considers most representative of an exit price. Both the investment managers and the custodian bank use a variety of independent, nationally recognized pricing sources to determine market valuations. Each designate specific pricing services or indexes for each sector of the market based upon the provider’s expertise. Typical inputs used by these pricing sources include, but are not limited to, reported trades, benchmark yield curves, benchmarking of like securities, ratings designations, sector groupings, issuer spreads, bids, offers, and/or estimated cash flows and prepayment speeds. | ||||||||||||||||||||
When the pricing sources cannot provide fair value determinations, the Company obtains non-binding price quotes from broker-dealers. The broker-dealers’ valuation methodology is sometimes matrix-based, using indicative evaluation measures and adjustments for specific security characteristics and market sentiment. The market inputs utilized in the evaluation measures and adjustments include: benchmark yield curves, reported trades, broker/dealer quotes, ratings and corresponding issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and industry and economic events. The extent of the use of each market input depends on the market sector and the market conditions. Depending on the security, the priority of the use of inputs may change or some market inputs may not be relevant. For some securities, additional inputs may be necessary. | ||||||||||||||||||||
The Company analyzes price and market valuations received to verify reasonableness, to understand the key assumptions used and their sources, to conclude the prices obtained are appropriate, and to determine an appropriate fair value hierarchy level based upon trading activity and the observability of market inputs. Based on this evaluation and investment class analysis, each security is classified into Level 1, 2, or 3. The Company has in place certain control processes to determine the reasonableness of the financial asset fair values. These processes are designed to ensure (1) the values received are reasonable and accurately recorded, (2) the data inputs and valuation techniques utilized are appropriate and consistently applied, and (3) the assumptions are reasonable and consistent with the objective of determining fair value. For example, on a continuing basis, the Company assesses the reasonableness of individual security values received from pricing sources that vary from certain thresholds. The Company’s fixed maturity securities portfolio is primarily publicly traded, which allows for a high percentage of the portfolio to be priced through pricing services. Approximately 88% and 89% of the portfolio, based on fair value, was priced through pricing services or index priced as of September 30, 2013 and 2012, respectively. The remainder of the portfolio was priced by broker-dealers or pricing models. When non-binding broker-dealer quotes could be corroborated by comparison to other vendor quotes, pricing models or analysis, the securities were generally classified as Level 2, otherwise they were classified as Level 3. There were no significant changes to the valuation process during the first nine months of 2013. | ||||||||||||||||||||
Fair values of equity securities have been determined by the Company from observable market quotations, when available. When a public quotation is not available, equity securities are valued by using non-binding broker quotes or through the use of pricing models or analysis that is based on market information regarding interest rates, credit spreads and liquidity. The underlying source data for calculating the matrix of credit spreads relative to the U.S. Treasury curve are nationally recognized indices. In addition, credit rating (or credit quality equivalent information) of securities is also factored into a pricing matrix. These inputs are based on assumptions deemed appropriate given the circumstances and are believed to be consistent with what other market participants would use when pricing such securities. There were no significant changes to the valuation process in the first nine months of 2013. | ||||||||||||||||||||
Short-term and other investments are comprised of short-term fixed income securities, policy loans and mortgage loans, as well as certain alternative investments which are accounted for as equity method investments and therefore excluded from the fair value tabular disclosures. For short-term fixed income securities, because of the nature of these assets, carrying amounts generally approximate fair values, which have been determined from public quotations, when available. The fair value of policy loans is based on estimates using discounted cash flow analysis and current interest rates being offered for new loans. The fair value of mortgage loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and the same remaining maturities. | ||||||||||||||||||||
Separate Account (Variable Annuity) Assets and Liabilities | ||||||||||||||||||||
Separate Account (variable annuity) assets are carried at fair value and represent variable annuity contractholder funds invested in various mutual funds. Fair values of these assets are based primarily on market quotations of the underlying securities. Investment performance related to these assets is fully offset by corresponding amounts credited to contractholders with the liability reflected within Separate Account (variable annuity) liabilities. Separate Account liabilities are equal to the estimated fair value of Separate Account assets. | ||||||||||||||||||||
Fixed Annuity Contract Liabilities and Policyholder Account Balances on Interest-sensitive Life Contracts | ||||||||||||||||||||
The fair values of fixed annuity contract liabilities and policyholder account balances on interest-sensitive life contracts are equal to the discounted estimated future cash flows (using the Company's current interest rates for similar products including consideration of minimum guaranteed interest rates). The Company carries these financial liabilities at cost. | ||||||||||||||||||||
Other Policyholder Funds | ||||||||||||||||||||
Other policyholder funds are liabilities related to supplementary contracts without life contingencies and dividend accumulations, which represent deposits that do not have defined maturities. Other policyholder funds are carried at cost, which management believes is a reasonable estimate of fair value due to the relatively short duration of these deposits, based on the Company’s past experience. | ||||||||||||||||||||
Short-term Debt | ||||||||||||||||||||
Short-term debt is carried at amortized cost, which management believes is a reasonable estimate of fair value due to the liquidity and short duration of these variable rate instruments. | ||||||||||||||||||||
Long-term Debt | ||||||||||||||||||||
The Company carries long-term debt at amortized cost. The fair value of long-term debt is estimated based on unadjusted quoted market prices of the Company’s securities or unadjusted market prices based on similar publicly traded issues when trading activity for the Company’s securities is not sufficient to provide a market price. | ||||||||||||||||||||
Other Liabilities, Repurchase Agreements | ||||||||||||||||||||
The Company carries the obligations for securities sold under agreements to repurchase at cost, which approximates fair value due to the short duration of the obligations. | ||||||||||||||||||||
Financial Instruments Measured and Carried at Fair Value | ||||||||||||||||||||
The following table presents the Company’s fair value hierarchy for those assets and liabilities measured and carried at fair value on a recurring basis as of September 30, 2013 and December 31, 2012. At September 30, 2013, Level 3 invested assets below comprised approximately 2.1% of the Company’s total investment portfolio fair value. | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
Carrying | Fair | Reporting Date Using | ||||||||||||||||||
Amount | Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||
U.S. government and federally | ||||||||||||||||||||
sponsored agency obligations: | ||||||||||||||||||||
Mortgage-backed securities | $ | 587,361 | $ | 587,361 | $ | - | $ | 587,361 | $ | - | ||||||||||
Other, including | ||||||||||||||||||||
U.S. Treasury securities | 455,101 | 455,101 | 18,063 | 437,038 | - | |||||||||||||||
Municipal bonds | 1,459,611 | 1,459,611 | - | 1,451,296 | 8,315 | |||||||||||||||
Foreign government bonds | 54,321 | 54,321 | - | 54,321 | - | |||||||||||||||
Corporate bonds | 2,553,424 | 2,553,424 | 10,090 | 2,479,043 | 64,291 | |||||||||||||||
Other mortgage-backed securities | 830,704 | 830,704 | - | 767,694 | 63,010 | |||||||||||||||
Total fixed maturities | 5,940,522 | 5,940,522 | 28,153 | 5,776,753 | 135,616 | |||||||||||||||
Equity securities | 86,631 | 86,631 | 70,381 | 16,244 | 6 | |||||||||||||||
Short-term investments | 94,245 | 94,245 | 78,956 | 15,289 | - | |||||||||||||||
Totals | 6,121,398 | 6,121,398 | 177,490 | 5,808,286 | 135,622 | |||||||||||||||
Separate Account | ||||||||||||||||||||
(variable annuity) assets (1) | 1,627,685 | 1,627,685 | 1,627,685 | - | - | |||||||||||||||
Financial Liabilities | - | - | - | - | - | |||||||||||||||
31-Dec-12 | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||
U.S. government and federally | ||||||||||||||||||||
sponsored agency obligations: | ||||||||||||||||||||
Mortgage-backed securities | $ | 619,559 | $ | 619,559 | $ | - | $ | 619,559 | $ | - | ||||||||||
Other, including | ||||||||||||||||||||
U.S. Treasury securities | 409,428 | 409,428 | 18,594 | 390,834 | - | |||||||||||||||
Municipal bonds | 1,586,037 | 1,586,037 | - | 1,573,762 | 12,275 | |||||||||||||||
Foreign government bonds | 57,869 | 57,869 | - | 57,869 | - | |||||||||||||||
Corporate bonds | 2,567,034 | 2,567,034 | 11,934 | 2,469,378 | 85,722 | |||||||||||||||
Other mortgage-backed securities | 722,305 | 722,305 | - | 689,133 | 33,172 | |||||||||||||||
Total fixed maturities | 5,962,232 | 5,962,232 | 30,528 | 5,800,535 | 131,169 | |||||||||||||||
Equity securities | 53,503 | 53,503 | 43,704 | 9,459 | 340 | |||||||||||||||
Short-term investments | 87,561 | 87,561 | 87,561 | - | - | |||||||||||||||
Totals | 6,103,296 | 6,103,296 | 161,793 | 5,809,994 | 131,509 | |||||||||||||||
Separate Account | ||||||||||||||||||||
(variable annuity) assets (1) | 1,398,281 | 1,398,281 | 1,398,281 | - | - | |||||||||||||||
Financial Liabilities | - | - | - | - | - | |||||||||||||||
-1 | Separate Account (variable annuity) liabilities are set equal to Separate Account (variable annuity) assets. | |||||||||||||||||||
As of March 31, 2013, the Company transferred the separate account assets and liabilities into Level 1 from Level 2 after reassessing the underlying inputs for the determination of fair value for these assets and liabilities. As disclosed above, fair value is based primarily on market quotations of the underlying securities consistent with the method applied in all prior periods. The Company did not have any other transfers between Levels 1 and 2 during the nine months ended September 30, 2013. The following tables present reconciliations for the three and nine months ended September 30, 2013 and 2012 for all Level 3 assets measured at fair value on a recurring basis. | ||||||||||||||||||||
Municipal | Corporate | Other | Total | Equity | Total | |||||||||||||||
Bonds | Bonds | Mortgage- | Fixed | Securities | ||||||||||||||||
Backed | Maturities | |||||||||||||||||||
Securities | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Beginning balance July 1, 2013 | $ | 3,764 | $ | 56,590 | $ | 49,343 | $ | 109,697 | $ | 6 | $ | 109,703 | ||||||||
Transfers into Level 3 (1) | 5,546 | 9,315 | 23,828 | 38,689 | - | 38,689 | ||||||||||||||
Transfers out of Level 3 (1) | -800 | - | -1,881 | -2,681 | - | -2,681 | ||||||||||||||
Total gains or losses | ||||||||||||||||||||
Net realized gains (losses) | ||||||||||||||||||||
included in net income | - | - | - | - | - | - | ||||||||||||||
Net unrealized gains (losses) | ||||||||||||||||||||
included in other | ||||||||||||||||||||
comprehensive income | -123 | 104 | -20 | -39 | - | -39 | ||||||||||||||
Purchases | - | - | - | - | - | - | ||||||||||||||
Issuances | - | - | - | - | - | - | ||||||||||||||
Sales | - | - | - | - | - | - | ||||||||||||||
Settlements | - | - | - | - | - | - | ||||||||||||||
Paydowns, maturities | ||||||||||||||||||||
and distributions | -72 | -1,718 | -8,260 | -10,050 | - | -10,050 | ||||||||||||||
Ending balance, September 30, 2013 | $ | 8,315 | $ | 64,291 | $ | 63,010 | $ | 135,616 | $ | 6 | $ | 135,622 | ||||||||
Beginning balance, January 1, 2013 | $ | 12,275 | $ | 85,722 | $ | 33,172 | $ | 131,169 | $ | 340 | $ | 131,509 | ||||||||
Transfers into Level 3 (1) | 9,453 | 32,754 | 67,827 | 110,034 | - | 110,034 | ||||||||||||||
Transfers out of Level 3 (1) | -800 | -50,341 | -20,284 | -71,425 | - | -71,425 | ||||||||||||||
Total gains or losses | ||||||||||||||||||||
Net realized gains (losses) | ||||||||||||||||||||
included in net income | - | - | - | - | - | - | ||||||||||||||
Net unrealized gains (losses) | ||||||||||||||||||||
included in other | ||||||||||||||||||||
comprehensive income | -474 | -1,605 | -438 | -2,517 | - | -2,517 | ||||||||||||||
Purchases | - | - | - | - | - | - | ||||||||||||||
Issuances | - | - | - | - | - | - | ||||||||||||||
Sales | - | - | - | - | -334 | -334 | ||||||||||||||
Settlements | - | - | - | - | - | - | ||||||||||||||
Paydowns, maturities | ||||||||||||||||||||
and distributions | -12,139 | -2,239 | -17,267 | -31,645 | - | -31,645 | ||||||||||||||
Ending balance, September 30, 2013 | $ | 8,315 | $ | 64,291 | $ | 63,010 | $ | 135,616 | $ | 6 | $ | 135,622 | ||||||||
-1 | Transfers into and out of Level 3 during the periods ended September 30, 2013 were attributable to changes in the availability of observable market information for individual fixed maturity securities. The Company’s policy is to recognize transfers into and transfers out of the levels as of the ending date of the reporting period. | |||||||||||||||||||
Municipal | Corporate | Other | Total | Equity | Total | |||||||||||||||
Bonds | Bonds | Mortgage- | Fixed | Securities | ||||||||||||||||
Backed | Maturities | |||||||||||||||||||
Securities | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Beginning balance July 1, 2012 | $ | - | $ | 56,459 | $ | 12,911 | $ | 69,370 | $ | 385 | $ | 69,755 | ||||||||
Transfers into Level 3 (1) | 12,297 | 29,558 | 21,044 | 62,899 | - | 62,899 | ||||||||||||||
Transfers out of Level 3 (1) | - | - | - | - | - | - | ||||||||||||||
Total gains or losses | ||||||||||||||||||||
Net realized gains (losses) | ||||||||||||||||||||
included in net income | - | - | -2 | -2 | - | -2 | ||||||||||||||
Net unrealized gains (losses) | ||||||||||||||||||||
included in other | ||||||||||||||||||||
comprehensive income | - | -31 | 95 | 64 | -45 | 19 | ||||||||||||||
Purchases | - | - | - | - | - | - | ||||||||||||||
Issuances | - | - | - | - | - | - | ||||||||||||||
Sales | - | - | - | - | - | - | ||||||||||||||
Settlements | - | - | - | - | - | - | ||||||||||||||
Paydowns, maturities | ||||||||||||||||||||
and distributions | - | -169 | -160 | -329 | - | -329 | ||||||||||||||
Ending balance, September 30, 2012 | $ | 12,297 | $ | 85,817 | $ | 33,888 | $ | 132,002 | $ | 340 | $ | 132,342 | ||||||||
Beginning balance, January 1, 2012 | $ | - | $ | 88,256 | $ | 4,532 | $ | 92,788 | $ | 385 | $ | 93,173 | ||||||||
Transfers into Level 3 (1) | 12,297 | 47,798 | 29,548 | 89,643 | - | 89,643 | ||||||||||||||
Transfers out of Level 3 (1) | - | -50,707 | - | -50,707 | - | -50,707 | ||||||||||||||
Total gains or losses | ||||||||||||||||||||
Net realized gains (losses) | ||||||||||||||||||||
included in net income | - | - | -2 | -2 | - | -2 | ||||||||||||||
Net unrealized gains (losses) | ||||||||||||||||||||
included in other | ||||||||||||||||||||
comprehensive income | - | 915 | 260 | 1,175 | -45 | 1,130 | ||||||||||||||
Purchases | - | - | - | - | - | - | ||||||||||||||
Issuances | - | - | - | - | - | - | ||||||||||||||
Sales | - | - | - | - | - | - | ||||||||||||||
Settlements | - | - | - | - | - | - | ||||||||||||||
Paydowns, maturities | ||||||||||||||||||||
and distributions | - | -445 | -450 | -895 | - | -895 | ||||||||||||||
Ending balance, September 30, 2012 | $ | 12,297 | $ | 85,817 | $ | 33,888 | $ | 132,002 | $ | 340 | $ | 132,342 | ||||||||
-1 | Transfers into and out of Level 3 during the periods ended September 30, 2012 were attributable to changes in the availability of observable market information for individual fixed maturity securities. The Company’s policy is to recognize transfers into and transfers out of the levels as of the ending date of the reporting period. | |||||||||||||||||||
At September 30, 2013 and 2012, there were no realized gains or losses included in earnings that were attributable to changes in the fair value of Level 3 assets still held. | ||||||||||||||||||||
The valuation techniques and significant unobservable inputs used in the fair value measurement for financial instruments classified as Level 3 are subject to the control processes as previously described in this note for “Investments”. Generally, valuation for fixed maturity securities include spread pricing, matrix pricing and discounted cash flow methodologies; inputs such as quoted prices for identical or similar securities that are less liquid; and based on lower levels of trading activity than securities classified as Level 2. The valuation techniques and significant unobservable inputs used in the fair value measurement for equity securities classified as Level 3 use similar valuation techniques and significant unobservable inputs as fixed maturities. | ||||||||||||||||||||
The sensitivity of the estimated fair values to changes in the significant unobservable inputs for fixed maturities and equity securities included in Level 3 generally relate to interest rate spreads, illiquidity premiums and default rates. Significant spread widening in isolation will adversely impact the overall valuation, while significant spread tightening will lead to substantial valuation increases. Significant increases (decreases) in illiquidity premiums in isolation will result in substantially lower (higher) valuations. Significant increases (decreases) in expected default rates in isolation will result in substantially lower (higher) valuations. | ||||||||||||||||||||
Financial Instruments Disclosed, But Not Carried, at Fair Value | ||||||||||||||||||||
The Company has various other financial assets and financial liabilities used in the normal course of business that are not carried at fair value, but for which fair value disclosure is required. The following table presents the carrying value, fair value and fair value hierarchy of these financial assets and financial liabilities at September 30, 2013 and December 31, 2012. | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
Carrying | Fair | Reporting Date Using | ||||||||||||||||||
Amount | Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Other investments | $ | 139,010 | $ | 144,054 | $ | - | $ | - | $ | 144,054 | ||||||||||
Financial Liabilities | ||||||||||||||||||||
Fixed annuity contract liabilities | 3,454,356 | 3,254,859 | - | - | 3,254,859 | |||||||||||||||
Policyholder account balances on | ||||||||||||||||||||
interest-sensitive life contracts | 78,843 | 78,345 | - | - | 78,345 | |||||||||||||||
Other policyholder funds | 97,823 | 97,823 | - | - | 97,823 | |||||||||||||||
Short-term debt | 38,000 | 38,000 | - | 38,000 | - | |||||||||||||||
Long-term debt | 199,858 | 215,918 | 215,918 | - | - | |||||||||||||||
Other liabilities, repurchase | ||||||||||||||||||||
agreement obligations | 121,308 | 121,308 | - | 121,308 | - | |||||||||||||||
31-Dec-12 | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Other investments | $ | 134,985 | $ | 135,121 | $ | - | $ | - | $ | 135,121 | ||||||||||
Financial Liabilities | ||||||||||||||||||||
Fixed annuity contract liabilities | 3,257,758 | 3,070,111 | - | - | 3,070,111 | |||||||||||||||
Policyholder account balances on | ||||||||||||||||||||
interest-sensitive life contracts | 79,017 | 78,519 | - | - | 78,519 | |||||||||||||||
Other policyholder funds | 103,227 | 103,227 | - | - | 103,227 | |||||||||||||||
Short-term debt | 38,000 | 38,000 | - | 38,000 | - | |||||||||||||||
Long-term debt | 199,809 | 219,319 | 219,319 | - | - | |||||||||||||||
Debt
Debt | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt | ' | |||||||
Note 4 - Debt | ||||||||
Indebtedness outstanding was as follows: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Short-term debt: | ||||||||
Bank Credit Facility, expires October 6, 2015 | $ | 38,000 | $ | 38,000 | ||||
Long-term debt: | ||||||||
6.05% Senior Notes, due June 15, 2015. Aggregate | ||||||||
principal amount of $75,000 less unaccrued discount | ||||||||
of $45 and $65 (6.1% imputed rate) | 74,955 | 74,935 | ||||||
6.85% Senior Notes, due April 15, 2016. Aggregate | ||||||||
principal amount of $125,000 less unaccrued discount | ||||||||
of $97 and $126 (6.9% imputed rate) | 124,903 | 124,874 | ||||||
Total | $ | 237,858 | $ | 237,809 | ||||
The Bank Credit Facility, 6.05% Senior Notes due 2015 (“Senior Notes due 2015”) and 6.85% Senior Notes due 2016 (“Senior Notes due 2016”) are described in “Notes to Consolidated Financial Statements — Note 5 — Debt” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | ||||||||
Federal Home Loan Bank | ||||||||
One of the Company’s subsidiaries, Horace Mann Life Insurance Company (“HMLIC”), is a member of the Federal Home Loan Bank of Chicago (“FHLB”), which provides HMLIC with access to collateralized borrowings and other FHLB products. As membership requires the ownership of member stock, on June 4, 2013, HMLIC purchased common stock to meet the membership requirement. Any borrowing from the FHLB requires the purchase of FHLB activity-based common stock in an amount equal to 5.0% of the borrowing. As of September 30, 2013 and for the period then ended, the Company had no borrowings outstanding from the FHLB. | ||||||||
Pension_Plans_and_Other_Postre
Pension Plans and Other Postretirement Benefits | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||
Pension Plans and Other Postretirement Benefits | ' | |||||||||||||
Note 5 - Pension Plans and Other Postretirement Benefits | ||||||||||||||
The Company has the following retirement plans: a defined contribution plan; a 401(k) plan; a defined benefit plan for employees hired on or before December 31, 1998; and certain employees participate in a supplemental defined contribution plan or a supplemental defined benefit plan or both. | ||||||||||||||
Defined Benefit Plan and Supplemental Defined Benefit Plans | ||||||||||||||
The following tables summarize the components of net periodic pension cost recognized for the defined benefit plan and the supplemental defined benefit plans for the three and nine months ended September 30, 2013 and 2012. | ||||||||||||||
Defined Benefit Plan | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Components of net periodic | ||||||||||||||
pension (income) expense: | ||||||||||||||
Service cost: | ||||||||||||||
Benefit accrual | $ | - | $ | - | $ | - | $ | - | ||||||
Other expenses | 90 | 90 | 270 | 270 | ||||||||||
Interest cost | 342 | 356 | 1,027 | 1,070 | ||||||||||
Expected return on plan assets | -560 | -605 | -1,679 | -1,817 | ||||||||||
Settlement loss | 244 | 161 | 731 | 1,079 | ||||||||||
Amortization of: | ||||||||||||||
Prior service cost | - | - | - | - | ||||||||||
Actuarial loss | 401 | 512 | 1,202 | 1,538 | ||||||||||
Net periodic pension expense | $ | 517 | $ | 514 | $ | 1,551 | $ | 2,140 | ||||||
Supplemental Defined Benefit Plans | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Components of net periodic | ||||||||||||||
pension (income) expense: | ||||||||||||||
Service cost: | ||||||||||||||
Benefit accrual | $ | - | $ | - | $ | - | $ | - | ||||||
Other expenses | - | - | - | - | ||||||||||
Interest cost | 154 | 171 | 461 | 506 | ||||||||||
Expected return on plan assets | - | - | - | - | ||||||||||
Settlement loss | - | - | - | - | ||||||||||
Amortization of: | ||||||||||||||
Prior service cost | 31 | 31 | 94 | 93 | ||||||||||
Actuarial (gain) loss | 50 | -362 | 152 | 128 | ||||||||||
Net periodic pension expense (benefit) | $ | 235 | $ | -160 | $ | 707 | $ | 727 | ||||||
Postretirement Benefits Other Than Pensions | ||||||||||||||
In addition to providing pension benefits, the Company also provides certain health care and life insurance benefits to a closed group of eligible employees. Effective January 1, 2007, the Company eliminated the previous group health insurance benefits for retirees 65 years of age and over, including elimination of pharmacy benefits for Medicare eligible retirees, and established a Health Reimbursement Account (“HRA”) for each eligible participant in that closed group. Funding of HRA accounts was $132 and $133 for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||
The following table summarizes the components of the net periodic benefit for postretirement benefits other than pensions for the three and nine months ended September 30, 2013 and 2012. | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Components of net periodic benefit: | ||||||||||||||
Service cost | $ | - | $ | - | $ | - | $ | - | ||||||
Interest cost | 23 | 22 | 69 | 68 | ||||||||||
Amortization of prior service cost | - | - | - | - | ||||||||||
Amortization of prior gain | -59 | -131 | -177 | -392 | ||||||||||
Net periodic income | $ | -36 | $ | -109 | $ | -108 | $ | -324 | ||||||
2013 Contributions | ||||||||||||||
In 2013, there is no minimum funding requirement for the Company’s defined benefit plan. The following table discloses the minimum funding requirements, contributions made and expected full year contributions for the Company’s plans. | ||||||||||||||
Defined Benefit Pension Plans | ||||||||||||||
Defined | Supplemental | Other | ||||||||||||
Benefit | Defined Benefit | Postretirement | ||||||||||||
Plan | Plans | Benefits | ||||||||||||
Minimum funding requirement for 2013 | $ | - | N/A | N/A | ||||||||||
Contributions made in the nine months | ||||||||||||||
ended September 30, 2013 | 3,103 | $ | 986 | $ | 406 | |||||||||
Expected contributions (approximations) | ||||||||||||||
for the year ended December 31, 2013 | ||||||||||||||
as of the time of : | ||||||||||||||
This Form 10-Q (1) | 3,103 | 1,320 | 480 | |||||||||||
2012 Form 10-K (2) | 2,500 | 1,320 | 480 | |||||||||||
N/A - | Not applicable. | |||||||||||||
(1) | HMEC’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013. | |||||||||||||
(2) | HMEC’s Annual Report on Form 10-K for the year ended December 31, 2012, specifically “Notes to Consolidated Financial Statements — Note 9 — Pension Plans and Other Postretirement Benefits”. | |||||||||||||
Reinsurance
Reinsurance | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Insurance [Abstract] | ' | |||||||||||||
Reinsurance | ' | |||||||||||||
Note 6 - Reinsurance | ||||||||||||||
The Company recognizes the cost of reinsurance premiums over the contract periods for such premiums in proportion to the insurance protection provided. Amounts recoverable from reinsurers for unpaid claims and claim settlement expenses, including estimated amounts for unsettled claims, claims incurred but not yet reported and policy benefits, are estimated in a manner consistent with the insurance liability associated with the policy. The effects of reinsurance on premiums written and contract deposits; premiums and contract charges earned; and benefits, claims and settlement expenses were as follows: | ||||||||||||||
Ceded to | Assumed | |||||||||||||
Gross | Other | from Other | Net | |||||||||||
Amount | Companies | Companies | Amount | |||||||||||
Three months ended September 30, 2013 | ||||||||||||||
Premiums written and contract deposits | $ | 312,351 | $ | 7,162 | $ | 844 | $ | 306,033 | ||||||
Premiums and contract charges earned | 179,969 | 7,094 | 886 | 173,761 | ||||||||||
Benefits, claims and settlement expenses | 114,261 | 2,602 | 1,042 | 112,701 | ||||||||||
Three months ended September 30, 2012 | ||||||||||||||
Premiums written and contract deposits | $ | 291,732 | $ | 7,407 | $ | 881 | $ | 285,206 | ||||||
Premiums and contract charges earned | 174,372 | 7,410 | 942 | 167,904 | ||||||||||
Benefits, claims and settlement expenses | 108,680 | 3,585 | 956 | 106,051 | ||||||||||
Nine months ended September 30, 2013 | ||||||||||||||
Premiums written and contract deposits | $ | 838,615 | $ | 22,074 | $ | 2,273 | $ | 818,814 | ||||||
Premiums and contract charges earned | 534,621 | 22,455 | 2,314 | 514,480 | ||||||||||
Benefits, claims and settlement expenses | 351,274 | 7,251 | 2,142 | 346,165 | ||||||||||
Nine months ended September 30, 2012 | ||||||||||||||
Premiums written and contract deposits | $ | 808,147 | $ | 22,175 | $ | 2,276 | $ | 788,248 | ||||||
Premiums and contract charges earned | 519,928 | 22,541 | 2,356 | 499,743 | ||||||||||
Benefits, claims and settlement expenses | 353,029 | 10,365 | 2,249 | 344,913 | ||||||||||
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||
Segment Information | ' | |||||||||||||
Note 7 - Segment Information | ||||||||||||||
The Company conducts and manages its business through four segments. The three operating segments, representing the major lines of insurance business, are: property and casualty insurance, primarily personal lines automobile and homeowners products; retirement annuity products, primarily tax-qualified fixed and variable deposits; and life insurance. The Company does not allocate the impact of corporate level transactions to the insurance segments, consistent with the basis for management’s evaluation of the results of those segments, but classifies those items in the fourth segment, corporate and other. In addition to ongoing transactions such as corporate debt service, realized investment gains and losses and certain public company expenses, such items also have included corporate debt retirement costs/gains, when applicable. Summarized financial information for these segments is as follows: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Insurance premiums and | ||||||||||||||
contract charges earned | ||||||||||||||
Property and casualty | $ | 140,812 | $ | 136,809 | $ | 418,205 | $ | 407,471 | ||||||
Annuity | 5,895 | 5,551 | 16,714 | 16,053 | ||||||||||
Life | 27,054 | 25,544 | 79,561 | 76,219 | ||||||||||
Total | $ | 173,761 | $ | 167,904 | $ | 514,480 | $ | 499,743 | ||||||
Net investment income | ||||||||||||||
Property and casualty | $ | 8,824 | $ | 9,022 | $ | 26,894 | $ | 27,250 | ||||||
Annuity | 52,175 | 50,742 | 154,818 | 150,000 | ||||||||||
Life | 17,703 | 17,131 | 52,232 | 52,148 | ||||||||||
Corporate and other | 2 | - | 6 | 1 | ||||||||||
Intersegment eliminations | -238 | -246 | -720 | -741 | ||||||||||
Total | $ | 78,466 | $ | 76,649 | $ | 233,230 | $ | 228,658 | ||||||
Net income (loss) | ||||||||||||||
Property and casualty | $ | 11,037 | $ | 13,529 | $ | 25,363 | $ | 22,633 | ||||||
Annuity | 11,605 | 9,918 | 31,896 | 29,380 | ||||||||||
Life | 5,884 | 4,941 | 15,752 | 16,236 | ||||||||||
Corporate and other | -4,927 | 3,878 | 3,595 | 3,791 | ||||||||||
Total | $ | 23,599 | $ | 32,266 | $ | 76,606 | $ | 72,040 | ||||||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
Assets | ||||||||||||||
Property and casualty | $ | 1,005,190 | $ | 1,016,368 | ||||||||||
Annuity | 5,724,170 | 5,380,780 | ||||||||||||
Life | 1,698,730 | 1,663,696 | ||||||||||||
Corporate and other | 130,911 | 131,449 | ||||||||||||
Intersegment eliminations | -36,270 | -24,567 | ||||||||||||
Total | $ | 8,522,731 | $ | 8,167,726 | ||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | ||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||
Note 8 - Accumulated Other Comprehensive Income (Loss) | |||||||||||
Accumulated other comprehensive income (loss) represents the accumulated change in shareholders’ equity from transactions and other events and circumstances from non-shareholder sources. For the Company, accumulated other comprehensive income (loss) includes the after-tax change in net unrealized gains and losses on fixed maturities and equity securities and the after-tax change in net funded status of pension and other postretirement benefit obligations as shown in the Consolidated Statements of Changes in Shareholders’ Equity. The following tables reconcile these components for the three and nine months ended September 30, 2013. | |||||||||||
Unrealized Gains | |||||||||||
and Losses on | |||||||||||
Fixed Maturities | |||||||||||
and Equity | Defined | ||||||||||
Securities (1)(2) | Benefit Plans (1) | Total (1) | |||||||||
Beginning balance, July 1, 2013 | $ | 196,847 | $ | -15,311 | $ | 181,536 | |||||
Other comprehensive income (loss) | |||||||||||
before reclassifications | -37,211 | - | -37,211 | ||||||||
Amounts reclassified from | |||||||||||
accumulated other | |||||||||||
comprehensive income | 915 | - | 915 | ||||||||
Net current-period other | |||||||||||
comprehensive income (loss) | -36,296 | - | -36,296 | ||||||||
Ending balance, September 30, 2013 | $ | 160,551 | $ | -15,311 | $ | 145,240 | |||||
Beginning balance, January 1, 2013 | $ | 382,400 | $ | -15,311 | $ | 367,089 | |||||
Other comprehensive income (loss) | |||||||||||
before reclassifications | -208,283 | - | -208,283 | ||||||||
Amounts reclassified from | |||||||||||
accumulated other | |||||||||||
comprehensive income | -13,566 | - | -13,566 | ||||||||
Net current-period other | |||||||||||
comprehensive income (loss) | -221,849 | - | -221,849 | ||||||||
Ending balance, September 30, 2013 | $ | 160,551 | $ | -15,311 | $ | 145,240 | |||||
-1 | All amounts are net of tax. | ||||||||||
-2 | The pretax amounts reclassified from accumulated other comprehensive income, $(1,407) and $20,872, are included in net realized investment gains and losses and the related tax expenses (benefits), $(492) and $7,306, are included in income tax expense in the Consolidated Statements of Operations for the three and nine months ended September 30, 2013, respectively. | ||||||||||
Comparative information for elements that are not required to be reclassified in their entirety to net income in the same reporting period is located in “Note 2 — Investments — Unrealized Gains and Losses on Fixed Maturities and Equity Securities”. | |||||||||||
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Adopted Accounting Standards | ' |
Adopted Accounting Standards | |
Comprehensive Income | |
Effective January 1, 2013, the Company prospectively adopted accounting guidance to improve the disclosure of reclassifications out of accumulated other comprehensive income. The guidance requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required to be reclassified in their entirety to net income in the same reporting period, the reclassifications are required to be cross-referenced to other disclosures that provide additional detail about those amounts. As shown in “Note 8 — Accumulated Other Comprehensive Income”, certain disclosures in the Company’s Notes to Consolidated Financial Statements have been expanded to address additional information required by this guidance. The adoption of this accounting guidance did not have an effect on the results of operations or financial position of the Company. | |
Balance Sheet Offsetting | |
Effective January 1, 2013, the Company adopted accounting guidance to address disclosures about offsetting assets and liabilities. The guidance clarifies which instruments and transactions are subject to the offsetting disclosure requirements. The instruments and transactions include bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. The adoption of this accounting guidance did not have an effect on the results of operations or financial position of the Company. | |
Investments_Tables
Investments (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||
Unrealized gains and losses on fixed maturities and equity securities | ' | |||||||||||||||||||
The amortized cost or cost, unrealized investment gains and losses, fair values and other-than-temporary impairment (“OTTI”) included in accumulated other comprehensive income (loss) (“AOCI”) of all fixed maturities and equity securities in the portfolio as of September 30, 2013 and December 31, 2012 were as follows: | ||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | OTTI in | ||||||||||||||||
Cost/Cost | Gains | Losses | Value | AOCI (2) | ||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||
U.S. government and federally | ||||||||||||||||||||
sponsored agency obligations (1): | ||||||||||||||||||||
Mortgage-backed securities | $ | 559,749 | $ | 40,317 | $ | 12,705 | $ | 587,361 | $ | - | ||||||||||
Other, including | ||||||||||||||||||||
U.S. Treasury securities | 455,923 | 13,523 | 14,345 | 455,101 | - | |||||||||||||||
Municipal bonds | 1,395,769 | 93,091 | 29,249 | 1,459,611 | - | |||||||||||||||
Foreign government bonds | 49,501 | 5,169 | 349 | 54,321 | - | |||||||||||||||
Corporate bonds | 2,391,920 | 193,315 | 31,811 | 2,553,424 | - | |||||||||||||||
Other mortgage-backed securities | 809,856 | 29,251 | 8,403 | 830,704 | 2,786 | |||||||||||||||
Totals | $ | 5,662,718 | $ | 374,666 | $ | 96,862 | $ | 5,940,522 | $ | 2,786 | ||||||||||
Equity securities | $ | 83,079 | $ | 7,225 | $ | 3,673 | $ | 86,631 | $ | - | ||||||||||
31-Dec-12 | ||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||
U.S. government and federally | ||||||||||||||||||||
sponsored agency obligations (1): | ||||||||||||||||||||
Mortgage-backed securities | $ | 547,040 | $ | 72,644 | $ | 125 | $ | 619,559 | $ | - | ||||||||||
Other, including | ||||||||||||||||||||
U.S. Treasury securities | 371,706 | 37,857 | 135 | 409,428 | - | |||||||||||||||
Municipal bonds | 1,402,424 | 186,261 | 2,648 | 1,586,037 | - | |||||||||||||||
Foreign government bonds | 48,476 | 9,393 | - | 57,869 | - | |||||||||||||||
Corporate bonds | 2,258,554 | 313,430 | 4,950 | 2,567,034 | - | |||||||||||||||
Other mortgage-backed securities | 683,257 | 41,080 | 2,032 | 722,305 | 3,214 | |||||||||||||||
Totals | $ | 5,311,457 | $ | 660,665 | $ | 9,890 | $ | 5,962,232 | $ | 3,214 | ||||||||||
Equity securities | $ | 52,396 | $ | 2,397 | $ | 1,290 | $ | 53,503 | $ | - | ||||||||||
-1 | Fair value includes securities issued by Federal National Mortgage Association (“FNMA”) of $364,823 and $375,111; Federal Home Loan Mortgage Corporation (“FHLMC”) of $439,184 and $418,174; and Government National Mortgage Association (“GNMA”) of $126,881 and $136,998 as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||
-2 | Represents the amount of other-than-temporary impairment losses in AOCI which, beginning April 1, 2009, was not included in earnings under current accounting guidance. Amounts also include unrealized gains/losses on impaired securities relating to changes in the fair value of such securities subsequent to the impairment measurement date. | |||||||||||||||||||
Summary of fair value and gross unrealized losses of fixed maturity securities and equity securities in an unrealized loss position | ' | |||||||||||||||||||
Therefore, no impairment of these securities was recorded at September 30, 2013. | ||||||||||||||||||||
12 Months or Less | More than 12 Months | Total | ||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||
U.S. government and federally | ||||||||||||||||||||
sponsored agency obligations: | ||||||||||||||||||||
Mortgage-backed securities | $ | 112,736 | $ | 12,705 | $ | 40 | $ | - | $ | 112,776 | $ | 12,705 | ||||||||
Other | 191,183 | 14,345 | - | - | 191,183 | 14,345 | ||||||||||||||
Municipal bonds | 369,099 | 27,759 | 12,010 | 1,490 | 381,109 | 29,249 | ||||||||||||||
Foreign government bonds | 5,626 | 349 | - | - | 5,626 | 349 | ||||||||||||||
Corporate bonds | 577,369 | 27,982 | 14,305 | 3,829 | 591,674 | 31,811 | ||||||||||||||
Other mortgage-backed securities | 222,222 | 7,246 | 29,125 | 1,157 | 251,347 | 8,403 | ||||||||||||||
Total fixed | ||||||||||||||||||||
maturity securities | 1,478,235 | 90,386 | 55,480 | 6,476 | 1,533,715 | 96,862 | ||||||||||||||
Equity securities (1) | 34,139 | 3,251 | 1,034 | 422 | 35,173 | 3,673 | ||||||||||||||
Combined totals | $ | 1,512,374 | $ | 93,637 | $ | 56,514 | $ | 6,898 | $ | 1,568,888 | $ | 100,535 | ||||||||
Number of positions with a | ||||||||||||||||||||
gross unrealized loss | 509 | 30 | 539 | |||||||||||||||||
Fair value as a percentage of | ||||||||||||||||||||
total fixed maturities and | ||||||||||||||||||||
equity securities fair value | 25.1 | % | 0.9 | % | 26 | % | ||||||||||||||
31-Dec-12 | ||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||
U.S. government and federally | ||||||||||||||||||||
sponsored agency obligations: | ||||||||||||||||||||
Mortgage-backed securities | $ | 11,006 | $ | 124 | $ | 50 | $ | 1 | $ | 11,056 | $ | 125 | ||||||||
Other | 9,944 | 135 | - | - | 9,944 | 135 | ||||||||||||||
Municipal bonds | 108,578 | 2,605 | 3,990 | 43 | 112,568 | 2,648 | ||||||||||||||
Foreign government bonds | - | - | - | - | - | - | ||||||||||||||
Corporate bonds | 56,481 | 875 | 26,725 | 4,075 | 83,206 | 4,950 | ||||||||||||||
Other mortgage-backed | 58,218 | 621 | 25,014 | 1,411 | 83,232 | 2,032 | ||||||||||||||
securities | ||||||||||||||||||||
Total fixed | ||||||||||||||||||||
maturity securities | 244,227 | 4,360 | 55,779 | 5,530 | 300,006 | 9,890 | ||||||||||||||
Equity securities (1) | 19,344 | 1,288 | 9 | 2 | 19,353 | 1,290 | ||||||||||||||
Combined totals | $ | 263,571 | $ | 5,648 | $ | 55,788 | $ | 5,532 | $ | 319,359 | $ | 11,180 | ||||||||
Number of positions with a | ||||||||||||||||||||
gross unrealized loss | 156 | 43 | 199 | |||||||||||||||||
Fair value as a percentage of | ||||||||||||||||||||
total fixed maturities and | ||||||||||||||||||||
equity securities fair value | 4.4 | % | 0.9 | % | 5.3 | % | ||||||||||||||
-1 | Includes nonredeemable (perpetual) preferred stocks, common stocks and closed-end funds. | |||||||||||||||||||
Summary of cumulative credit losses | ' | |||||||||||||||||||
The following table summarizes the cumulative amounts related to the Company’s credit loss component of the other-than-temporary impairment losses on fixed maturity securities held as of September 30, 2013 and 2012 that the Company did not intend to sell as of those dates, and it was not more likely than not that the Company would be required to sell the securities before the anticipated recovery of the amortized cost bases, for which the non-credit portions of the other-than-temporary impairment losses were recognized in other comprehensive income: | ||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||
September 30, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Cumulative credit loss (1) | ||||||||||||||||||||
Beginning of period | $ | 2,877 | $ | 3,957 | ||||||||||||||||
New credit losses (2) | 860 | 2 | ||||||||||||||||||
Losses related to securities sold or paid down during the period | - | -1,082 | ||||||||||||||||||
End of period | $ | 3,737 | $ | 2,877 | ||||||||||||||||
-1 | The cumulative credit loss amounts exclude other-than-temporary impairment losses on securities held as of the periods indicated that the Company intended to sell or it was more likely than not that the Company would be required to sell the security before the recovery of the amortized cost basis. | |||||||||||||||||||
-2 | For the nine months ended September 30, 2013, the other than temporary impairment loss was recorded on a Detroit general obligation bond. | |||||||||||||||||||
Distribution of the Company's fixed maturity portfolio by estimated expected maturity | ' | |||||||||||||||||||
For structured securities, including mortgage-backed securities and other asset-backed securities, estimated expected maturities consider broker-dealer survey prepayment assumptions and are verified for consistency with the interest rate and economic environments. | ||||||||||||||||||||
Percent of Total Fair Value | September 30, 2013 | |||||||||||||||||||
September 30, | December 31, | Fair | Amortized | |||||||||||||||||
2013 | 2012 | Value | Cost | |||||||||||||||||
Estimated expected maturity: | ||||||||||||||||||||
Due in 1 year or less | 4.6 | % | 4.3 | % | $ | 271,941 | $ | 259,224 | ||||||||||||
Due after 1 year through 5 years | 20.3 | 20.8 | 1,209,226 | 1,152,678 | ||||||||||||||||
Due after 5 years through 10 years | 38.5 | 38.4 | 2,290,089 | 2,182,994 | ||||||||||||||||
Due after 10 years | ||||||||||||||||||||
through 20 years | 19.9 | 18.7 | 1,179,999 | 1,124,817 | ||||||||||||||||
Due after 20 years | 16.7 | 17.8 | 989,267 | 943,005 | ||||||||||||||||
Total | 100 | % | 100 | % | $ | 5,940,522 | $ | 5,662,718 | ||||||||||||
Average option-adjusted | ||||||||||||||||||||
duration, in years | 6.3 | 6.3 | ||||||||||||||||||
Proceeds received from sales of fixed maturities and equity securities | ' | |||||||||||||||||||
Proceeds received from sales of fixed maturities and equity securities, each determined using the specific identification method, and gross gains and gross losses realized as a result of those sales for each period were: | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||
Proceeds received | $ | 56,343 | $ | 191,155 | $ | 270,329 | $ | 470,684 | ||||||||||||
Gross gains realized | 1,807 | 10,528 | 16,197 | 27,891 | ||||||||||||||||
Gross losses realized | -4,117 | -139 | -4,598 | -11,968 | ||||||||||||||||
Equity securities | ||||||||||||||||||||
Proceeds received | $ | 3,742 | $ | 1,970 | $ | 14,875 | $ | 2,894 | ||||||||||||
Gross gains realized | 531 | 67 | 3,875 | 84 | ||||||||||||||||
Gross losses realized | -103 | -157 | -490 | -233 | ||||||||||||||||
Reconciliation of net unrealized investment gains (losses) on fixed maturity securities and equity securities | ' | |||||||||||||||||||
The following table reconciles the net unrealized investment gains and losses, net of tax, included in accumulated other comprehensive income (loss), before the impact on deferred policy acquisition costs: | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Net unrealized investment gains (losses) | ||||||||||||||||||||
on fixed maturity securities, net of tax | ||||||||||||||||||||
Beginning of period | $ | 220,668 | $ | 356,104 | $ | 423,004 | $ | 284,338 | ||||||||||||
Change in unrealized investment | ||||||||||||||||||||
gains and losses | -41,288 | 70,702 | -231,116 | 146,569 | ||||||||||||||||
Reclassification of net realized | ||||||||||||||||||||
investment (gains) losses | ||||||||||||||||||||
to net income | 1,193 | -7,054 | -11,315 | -11,155 | ||||||||||||||||
End of period | $ | 180,573 | $ | 419,752 | $ | 180,573 | $ | 419,752 | ||||||||||||
Net unrealized investment gains (losses) | ||||||||||||||||||||
on equity securities, net of tax | ||||||||||||||||||||
Beginning of period | $ | 3,266 | $ | 543 | $ | 720 | $ | 2,408 | ||||||||||||
Change in unrealized investment | ||||||||||||||||||||
gains and losses | -679 | 646 | 3,840 | 1,373 | ||||||||||||||||
Reclassification of net realized | ||||||||||||||||||||
investment (gains) losses | ||||||||||||||||||||
to net income | -278 | 58 | -2,251 | -2,534 | ||||||||||||||||
End of period | $ | 2,309 | $ | 1,247 | $ | 2,309 | $ | 1,247 | ||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Summary of Company's fair value hierarchy measured at recurring basis | ' | |||||||||||||||||||
The following table presents the Company’s fair value hierarchy for those assets and liabilities measured and carried at fair value on a recurring basis as of September 30, 2013 and December 31, 2012. At September 30, 2013, Level 3 invested assets below comprised approximately 2.1% of the Company’s total investment portfolio fair value. | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
Carrying | Fair | Reporting Date Using | ||||||||||||||||||
Amount | Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||
U.S. government and federally | ||||||||||||||||||||
sponsored agency obligations: | ||||||||||||||||||||
Mortgage-backed securities | $ | 587,361 | $ | 587,361 | $ | - | $ | 587,361 | $ | - | ||||||||||
Other, including | ||||||||||||||||||||
U.S. Treasury securities | 455,101 | 455,101 | 18,063 | 437,038 | - | |||||||||||||||
Municipal bonds | 1,459,611 | 1,459,611 | - | 1,451,296 | 8,315 | |||||||||||||||
Foreign government bonds | 54,321 | 54,321 | - | 54,321 | - | |||||||||||||||
Corporate bonds | 2,553,424 | 2,553,424 | 10,090 | 2,479,043 | 64,291 | |||||||||||||||
Other mortgage-backed securities | 830,704 | 830,704 | - | 767,694 | 63,010 | |||||||||||||||
Total fixed maturities | 5,940,522 | 5,940,522 | 28,153 | 5,776,753 | 135,616 | |||||||||||||||
Equity securities | 86,631 | 86,631 | 70,381 | 16,244 | 6 | |||||||||||||||
Short-term investments | 94,245 | 94,245 | 78,956 | 15,289 | - | |||||||||||||||
Totals | 6,121,398 | 6,121,398 | 177,490 | 5,808,286 | 135,622 | |||||||||||||||
Separate Account | ||||||||||||||||||||
(variable annuity) assets (1) | 1,627,685 | 1,627,685 | 1,627,685 | - | - | |||||||||||||||
Financial Liabilities | - | - | - | - | - | |||||||||||||||
31-Dec-12 | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||
U.S. government and federally | ||||||||||||||||||||
sponsored agency obligations: | ||||||||||||||||||||
Mortgage-backed securities | $ | 619,559 | $ | 619,559 | $ | - | $ | 619,559 | $ | - | ||||||||||
Other, including | ||||||||||||||||||||
U.S. Treasury securities | 409,428 | 409,428 | 18,594 | 390,834 | - | |||||||||||||||
Municipal bonds | 1,586,037 | 1,586,037 | - | 1,573,762 | 12,275 | |||||||||||||||
Foreign government bonds | 57,869 | 57,869 | - | 57,869 | - | |||||||||||||||
Corporate bonds | 2,567,034 | 2,567,034 | 11,934 | 2,469,378 | 85,722 | |||||||||||||||
Other mortgage-backed securities | 722,305 | 722,305 | - | 689,133 | 33,172 | |||||||||||||||
Total fixed maturities | 5,962,232 | 5,962,232 | 30,528 | 5,800,535 | 131,169 | |||||||||||||||
Equity securities | 53,503 | 53,503 | 43,704 | 9,459 | 340 | |||||||||||||||
Short-term investments | 87,561 | 87,561 | 87,561 | - | - | |||||||||||||||
Totals | 6,103,296 | 6,103,296 | 161,793 | 5,809,994 | 131,509 | |||||||||||||||
Separate Account | ||||||||||||||||||||
(variable annuity) assets (1) | 1,398,281 | 1,398,281 | 1,398,281 | - | - | |||||||||||||||
Financial Liabilities | - | - | - | - | - | |||||||||||||||
-1 | Separate Account (variable annuity) liabilities are set equal to Separate Account (variable annuity) assets. | |||||||||||||||||||
Table for reconciliations for all Level 3 assets measured at fair value on a recurring basis | ' | |||||||||||||||||||
The following tables present reconciliations for the three and nine months ended September 30, 2013 and 2012 for all Level 3 assets measured at fair value on a recurring basis. | ||||||||||||||||||||
Municipal | Corporate | Other | Total | Equity | Total | |||||||||||||||
Bonds | Bonds | Mortgage- | Fixed | Securities | ||||||||||||||||
Backed | Maturities | |||||||||||||||||||
Securities | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Beginning balance July 1, 2013 | $ | 3,764 | $ | 56,590 | $ | 49,343 | $ | 109,697 | $ | 6 | $ | 109,703 | ||||||||
Transfers into Level 3 (1) | 5,546 | 9,315 | 23,828 | 38,689 | - | 38,689 | ||||||||||||||
Transfers out of Level 3 (1) | -800 | - | -1,881 | -2,681 | - | -2,681 | ||||||||||||||
Total gains or losses | ||||||||||||||||||||
Net realized gains (losses) | ||||||||||||||||||||
included in net income | - | - | - | - | - | - | ||||||||||||||
Net unrealized gains (losses) | ||||||||||||||||||||
included in other | ||||||||||||||||||||
comprehensive income | -123 | 104 | -20 | -39 | - | -39 | ||||||||||||||
Purchases | - | - | - | - | - | - | ||||||||||||||
Issuances | - | - | - | - | - | - | ||||||||||||||
Sales | - | - | - | - | - | - | ||||||||||||||
Settlements | - | - | - | - | - | - | ||||||||||||||
Paydowns, maturities | ||||||||||||||||||||
and distributions | -72 | -1,718 | -8,260 | -10,050 | - | -10,050 | ||||||||||||||
Ending balance, September 30, 2013 | $ | 8,315 | $ | 64,291 | $ | 63,010 | $ | 135,616 | $ | 6 | $ | 135,622 | ||||||||
Beginning balance, January 1, 2013 | $ | 12,275 | $ | 85,722 | $ | 33,172 | $ | 131,169 | $ | 340 | $ | 131,509 | ||||||||
Transfers into Level 3 (1) | 9,453 | 32,754 | 67,827 | 110,034 | - | 110,034 | ||||||||||||||
Transfers out of Level 3 (1) | -800 | -50,341 | -20,284 | -71,425 | - | -71,425 | ||||||||||||||
Total gains or losses | ||||||||||||||||||||
Net realized gains (losses) | ||||||||||||||||||||
included in net income | - | - | - | - | - | - | ||||||||||||||
Net unrealized gains (losses) | ||||||||||||||||||||
included in other | ||||||||||||||||||||
comprehensive income | -474 | -1,605 | -438 | -2,517 | - | -2,517 | ||||||||||||||
Purchases | - | - | - | - | - | - | ||||||||||||||
Issuances | - | - | - | - | - | - | ||||||||||||||
Sales | - | - | - | - | -334 | -334 | ||||||||||||||
Settlements | - | - | - | - | - | - | ||||||||||||||
Paydowns, maturities | ||||||||||||||||||||
and distributions | -12,139 | -2,239 | -17,267 | -31,645 | - | -31,645 | ||||||||||||||
Ending balance, September 30, 2013 | $ | 8,315 | $ | 64,291 | $ | 63,010 | $ | 135,616 | $ | 6 | $ | 135,622 | ||||||||
-1 | Transfers into and out of Level 3 during the periods ended September 30, 2013 were attributable to changes in the availability of observable market information for individual fixed maturity securities. The Company’s policy is to recognize transfers into and transfers out of the levels as of the ending date of the reporting period. | |||||||||||||||||||
Municipal | Corporate | Other | Total | Equity | Total | |||||||||||||||
Bonds | Bonds | Mortgage- | Fixed | Securities | ||||||||||||||||
Backed | Maturities | |||||||||||||||||||
Securities | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Beginning balance July 1, 2012 | $ | - | $ | 56,459 | $ | 12,911 | $ | 69,370 | $ | 385 | $ | 69,755 | ||||||||
Transfers into Level 3 (1) | 12,297 | 29,558 | 21,044 | 62,899 | - | 62,899 | ||||||||||||||
Transfers out of Level 3 (1) | - | - | - | - | - | - | ||||||||||||||
Total gains or losses | ||||||||||||||||||||
Net realized gains (losses) | ||||||||||||||||||||
included in net income | - | - | -2 | -2 | - | -2 | ||||||||||||||
Net unrealized gains (losses) | ||||||||||||||||||||
included in other | ||||||||||||||||||||
comprehensive income | - | -31 | 95 | 64 | -45 | 19 | ||||||||||||||
Purchases | - | - | - | - | - | - | ||||||||||||||
Issuances | - | - | - | - | - | - | ||||||||||||||
Sales | - | - | - | - | - | - | ||||||||||||||
Settlements | - | - | - | - | - | - | ||||||||||||||
Paydowns, maturities | ||||||||||||||||||||
and distributions | - | -169 | -160 | -329 | - | -329 | ||||||||||||||
Ending balance, September 30, 2012 | $ | 12,297 | $ | 85,817 | $ | 33,888 | $ | 132,002 | $ | 340 | $ | 132,342 | ||||||||
Beginning balance, January 1, 2012 | $ | - | $ | 88,256 | $ | 4,532 | $ | 92,788 | $ | 385 | $ | 93,173 | ||||||||
Transfers into Level 3 (1) | 12,297 | 47,798 | 29,548 | 89,643 | - | 89,643 | ||||||||||||||
Transfers out of Level 3 (1) | - | -50,707 | - | -50,707 | - | -50,707 | ||||||||||||||
Total gains or losses | ||||||||||||||||||||
Net realized gains (losses) | ||||||||||||||||||||
included in net income | - | - | -2 | -2 | - | -2 | ||||||||||||||
Net unrealized gains (losses) | ||||||||||||||||||||
included in other | ||||||||||||||||||||
comprehensive income | - | 915 | 260 | 1,175 | -45 | 1,130 | ||||||||||||||
Purchases | - | - | - | - | - | - | ||||||||||||||
Issuances | - | - | - | - | - | - | ||||||||||||||
Sales | - | - | - | - | - | - | ||||||||||||||
Settlements | - | - | - | - | - | - | ||||||||||||||
Paydowns, maturities | ||||||||||||||||||||
and distributions | - | -445 | -450 | -895 | - | -895 | ||||||||||||||
Ending balance, September 30, 2012 | $ | 12,297 | $ | 85,817 | $ | 33,888 | $ | 132,002 | $ | 340 | $ | 132,342 | ||||||||
-1 | Transfers into and out of Level 3 during the periods ended September 30, 2012 were attributable to changes in the availability of observable market information for individual fixed maturity securities. The Company’s policy is to recognize transfers into and transfers out of the levels as of the ending date of the reporting period. | |||||||||||||||||||
Carrying value, fair value and fair value hierarchy of financial assets and financial liabilities | ' | |||||||||||||||||||
The following table presents the carrying value, fair value and fair value hierarchy of these financial assets and financial liabilities at September 30, 2013 and December 31, 2012. | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
Carrying | Fair | Reporting Date Using | ||||||||||||||||||
Amount | Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Other investments | $ | 139,010 | $ | 144,054 | $ | - | $ | - | $ | 144,054 | ||||||||||
Financial Liabilities | ||||||||||||||||||||
Fixed annuity contract liabilities | 3,454,356 | 3,254,859 | - | - | 3,254,859 | |||||||||||||||
Policyholder account balances on | ||||||||||||||||||||
interest-sensitive life contracts | 78,843 | 78,345 | - | - | 78,345 | |||||||||||||||
Other policyholder funds | 97,823 | 97,823 | - | - | 97,823 | |||||||||||||||
Short-term debt | 38,000 | 38,000 | - | 38,000 | - | |||||||||||||||
Long-term debt | 199,858 | 215,918 | 215,918 | - | - | |||||||||||||||
Other liabilities, repurchase | ||||||||||||||||||||
agreement obligations | 121,308 | 121,308 | - | 121,308 | - | |||||||||||||||
31-Dec-12 | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Other investments | $ | 134,985 | $ | 135,121 | $ | - | $ | - | $ | 135,121 | ||||||||||
Financial Liabilities | ||||||||||||||||||||
Fixed annuity contract liabilities | 3,257,758 | 3,070,111 | - | - | 3,070,111 | |||||||||||||||
Policyholder account balances on | ||||||||||||||||||||
interest-sensitive life contracts | 79,017 | 78,519 | - | - | 78,519 | |||||||||||||||
Other policyholder funds | 103,227 | 103,227 | - | - | 103,227 | |||||||||||||||
Short-term debt | 38,000 | 38,000 | - | 38,000 | - | |||||||||||||||
Long-term debt | 199,809 | 219,319 | 219,319 | - | - | |||||||||||||||
Debt_Tables
Debt (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Summary of Indebtedness outstanding | ' | |||||||
Indebtedness outstanding was as follows: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Short-term debt: | ||||||||
Bank Credit Facility, expires October 6, 2015 | $ | 38,000 | $ | 38,000 | ||||
Long-term debt: | ||||||||
6.05% Senior Notes, due June 15, 2015. Aggregate | ||||||||
principal amount of $75,000 less unaccrued discount | ||||||||
of $45 and $65 (6.1% imputed rate) | 74,955 | 74,935 | ||||||
6.85% Senior Notes, due April 15, 2016. Aggregate | ||||||||
principal amount of $125,000 less unaccrued discount | ||||||||
of $97 and $126 (6.9% imputed rate) | 124,903 | 124,874 | ||||||
Total | $ | 237,858 | $ | 237,809 | ||||
Pension_Plans_and_Other_Postre1
Pension Plans and Other Postretirement Benefits (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||
Defined benefit plan and the supplemental defined benefit plans | ' | |||||||||||||
The following tables summarize the components of net periodic pension cost recognized for the defined benefit plan and the supplemental defined benefit plans for the three and nine months ended September 30, 2013 and 2012. | ||||||||||||||
Defined Benefit Plan | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Components of net periodic | ||||||||||||||
pension (income) expense: | ||||||||||||||
Service cost: | ||||||||||||||
Benefit accrual | $ | - | $ | - | $ | - | $ | - | ||||||
Other expenses | 90 | 90 | 270 | 270 | ||||||||||
Interest cost | 342 | 356 | 1,027 | 1,070 | ||||||||||
Expected return on plan assets | -560 | -605 | -1,679 | -1,817 | ||||||||||
Settlement loss | 244 | 161 | 731 | 1,079 | ||||||||||
Amortization of: | ||||||||||||||
Prior service cost | - | - | - | - | ||||||||||
Actuarial loss | 401 | 512 | 1,202 | 1,538 | ||||||||||
Net periodic pension expense | $ | 517 | $ | 514 | $ | 1,551 | $ | 2,140 | ||||||
Supplemental Defined Benefit Plans | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Components of net periodic | ||||||||||||||
pension (income) expense: | ||||||||||||||
Service cost: | ||||||||||||||
Benefit accrual | $ | - | $ | - | $ | - | $ | - | ||||||
Other expenses | - | - | - | - | ||||||||||
Interest cost | 154 | 171 | 461 | 506 | ||||||||||
Expected return on plan assets | - | - | - | - | ||||||||||
Settlement loss | - | - | - | - | ||||||||||
Amortization of: | ||||||||||||||
Prior service cost | 31 | 31 | 94 | 93 | ||||||||||
Actuarial (gain) loss | 50 | -362 | 152 | 128 | ||||||||||
Net periodic pension expense (benefit) | $ | 235 | $ | -160 | $ | 707 | $ | 727 | ||||||
Net periodic benefit for postretirement benefits other than pensions | ' | |||||||||||||
The following table summarizes the components of the net periodic benefit for postretirement benefits other than pensions for the three and nine months ended September 30, 2013 and 2012. | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Components of net periodic benefit: | ||||||||||||||
Service cost | $ | - | $ | - | $ | - | $ | - | ||||||
Interest cost | 23 | 22 | 69 | 68 | ||||||||||
Amortization of prior service cost | - | - | - | - | ||||||||||
Amortization of prior gain | -59 | -131 | -177 | -392 | ||||||||||
Net periodic income | $ | -36 | $ | -109 | $ | -108 | $ | -324 | ||||||
Summary of minimum funding requirement, contributions made and the expected full year contributions for the Company's plans | ' | |||||||||||||
The following table discloses the minimum funding requirements, contributions made and expected full year contributions for the Company’s plans. | ||||||||||||||
Defined Benefit Pension Plans | ||||||||||||||
Defined | Supplemental | Other | ||||||||||||
Benefit | Defined Benefit | Postretirement | ||||||||||||
Plan | Plans | Benefits | ||||||||||||
Minimum funding requirement for 2013 | $ | - | N/A | N/A | ||||||||||
Contributions made in the nine months | ||||||||||||||
ended September 30, 2013 | 3,103 | $ | 986 | $ | 406 | |||||||||
Expected contributions (approximations) | ||||||||||||||
for the year ended December 31, 2013 | ||||||||||||||
as of the time of : | ||||||||||||||
This Form 10-Q (1) | 3,103 | 1,320 | 480 | |||||||||||
2012 Form 10-K (2) | 2,500 | 1,320 | 480 | |||||||||||
N/A - | Not applicable. | |||||||||||||
(1) | HMEC’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013. | |||||||||||||
(2) | HMEC’s Annual Report on Form 10-K for the year ended December 31, 2012, specifically “Notes to Consolidated Financial Statements — Note 9 — Pension Plans and Other Postretirement Benefits”. | |||||||||||||
Reinsurance_Tables
Reinsurance (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Insurance [Abstract] | ' | |||||||||||||
Effects of reinsurance on premiums and benefits | ' | |||||||||||||
The effects of reinsurance on premiums written and contract deposits; premiums and contract charges earned; and benefits, claims and settlement expenses were as follows: | ||||||||||||||
Ceded to | Assumed | |||||||||||||
Gross | Other | from Other | Net | |||||||||||
Amount | Companies | Companies | Amount | |||||||||||
Three months ended September 30, 2013 | ||||||||||||||
Premiums written and contract deposits | $ | 312,351 | $ | 7,162 | $ | 844 | $ | 306,033 | ||||||
Premiums and contract charges earned | 179,969 | 7,094 | 886 | 173,761 | ||||||||||
Benefits, claims and settlement expenses | 114,261 | 2,602 | 1,042 | 112,701 | ||||||||||
Three months ended September 30, 2012 | ||||||||||||||
Premiums written and contract deposits | $ | 291,732 | $ | 7,407 | $ | 881 | $ | 285,206 | ||||||
Premiums and contract charges earned | 174,372 | 7,410 | 942 | 167,904 | ||||||||||
Benefits, claims and settlement expenses | 108,680 | 3,585 | 956 | 106,051 | ||||||||||
Nine months ended September 30, 2013 | ||||||||||||||
Premiums written and contract deposits | $ | 838,615 | $ | 22,074 | $ | 2,273 | $ | 818,814 | ||||||
Premiums and contract charges earned | 534,621 | 22,455 | 2,314 | 514,480 | ||||||||||
Benefits, claims and settlement expenses | 351,274 | 7,251 | 2,142 | 346,165 | ||||||||||
Nine months ended September 30, 2012 | ||||||||||||||
Premiums written and contract deposits | $ | 808,147 | $ | 22,175 | $ | 2,276 | $ | 788,248 | ||||||
Premiums and contract charges earned | 519,928 | 22,541 | 2,356 | 499,743 | ||||||||||
Benefits, claims and settlement expenses | 353,029 | 10,365 | 2,249 | 344,913 | ||||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||
Summarized financial information for these segments | ' | |||||||||||||
Summarized financial information for these segments is as follows: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Insurance premiums and | ||||||||||||||
contract charges earned | ||||||||||||||
Property and casualty | $ | 140,812 | $ | 136,809 | $ | 418,205 | $ | 407,471 | ||||||
Annuity | 5,895 | 5,551 | 16,714 | 16,053 | ||||||||||
Life | 27,054 | 25,544 | 79,561 | 76,219 | ||||||||||
Total | $ | 173,761 | $ | 167,904 | $ | 514,480 | $ | 499,743 | ||||||
Net investment income | ||||||||||||||
Property and casualty | $ | 8,824 | $ | 9,022 | $ | 26,894 | $ | 27,250 | ||||||
Annuity | 52,175 | 50,742 | 154,818 | 150,000 | ||||||||||
Life | 17,703 | 17,131 | 52,232 | 52,148 | ||||||||||
Corporate and other | 2 | - | 6 | 1 | ||||||||||
Intersegment eliminations | -238 | -246 | -720 | -741 | ||||||||||
Total | $ | 78,466 | $ | 76,649 | $ | 233,230 | $ | 228,658 | ||||||
Net income (loss) | ||||||||||||||
Property and casualty | $ | 11,037 | $ | 13,529 | $ | 25,363 | $ | 22,633 | ||||||
Annuity | 11,605 | 9,918 | 31,896 | 29,380 | ||||||||||
Life | 5,884 | 4,941 | 15,752 | 16,236 | ||||||||||
Corporate and other | -4,927 | 3,878 | 3,595 | 3,791 | ||||||||||
Total | $ | 23,599 | $ | 32,266 | $ | 76,606 | $ | 72,040 | ||||||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
Assets | ||||||||||||||
Property and casualty | $ | 1,005,190 | $ | 1,016,368 | ||||||||||
Annuity | 5,724,170 | 5,380,780 | ||||||||||||
Life | 1,698,730 | 1,663,696 | ||||||||||||
Corporate and other | 130,911 | 131,449 | ||||||||||||
Intersegment eliminations | -36,270 | -24,567 | ||||||||||||
Total | $ | 8,522,731 | $ | 8,167,726 | ||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | ||||||||||
Schedule of accumulated other comprehensive income (loss) | ' | ||||||||||
The following tables reconcile these components for the three and nine months ended September 30, 2013. | |||||||||||
Unrealized Gains | |||||||||||
and Losses on | |||||||||||
Fixed Maturities | |||||||||||
and Equity | Defined | ||||||||||
Securities (1)(2) | Benefit Plans (1) | Total (1) | |||||||||
Beginning balance, July 1, 2013 | $ | 196,847 | $ | -15,311 | $ | 181,536 | |||||
Other comprehensive income (loss) | |||||||||||
before reclassifications | -37,211 | - | -37,211 | ||||||||
Amounts reclassified from | |||||||||||
accumulated other | |||||||||||
comprehensive income | 915 | - | 915 | ||||||||
Net current-period other | |||||||||||
comprehensive income (loss) | -36,296 | - | -36,296 | ||||||||
Ending balance, September 30, 2013 | $ | 160,551 | $ | -15,311 | $ | 145,240 | |||||
Beginning balance, January 1, 2013 | $ | 382,400 | $ | -15,311 | $ | 367,089 | |||||
Other comprehensive income (loss) | |||||||||||
before reclassifications | -208,283 | - | -208,283 | ||||||||
Amounts reclassified from | |||||||||||
accumulated other | |||||||||||
comprehensive income | -13,566 | - | -13,566 | ||||||||
Net current-period other | |||||||||||
comprehensive income (loss) | -221,849 | - | -221,849 | ||||||||
Ending balance, September 30, 2013 | $ | 160,551 | $ | -15,311 | $ | 145,240 | |||||
-1 | All amounts are net of tax. | ||||||||||
-2 | The pretax amounts reclassified from accumulated other comprehensive income, $(1,407) and $20,872, are included in net realized investment gains and losses and the related tax expenses (benefits), $(492) and $7,306, are included in income tax expense in the Consolidated Statements of Operations for the three and nine months ended September 30, 2013, respectively. | ||||||||||
Investments_Details
Investments (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Unrealized gains and losses on fixed maturities and equity securities | ' | ' | ||
Amortized Cost/Cost | $5,662,718 | $5,311,457 | ||
Equity securities, Amortized Cost/Cost | 83,079 | 52,396 | ||
Unrealized Gains | 374,666 | 660,665 | ||
Unrealized Losses | 96,862 | 9,890 | ||
Fair Value | 5,940,522 | 5,962,232 | ||
Equity securities, Fair Value | 86,631 | 53,503 | ||
OTTI in AOCI | 2,786 | [1] | 3,214 | [1] |
Mortgage-backed securities [Member] | ' | ' | ||
Unrealized gains and losses on fixed maturities and equity securities | ' | ' | ||
Amortized Cost/Cost | 559,749 | [2] | 547,040 | [2] |
Unrealized Gains | 40,317 | [2] | 72,644 | [2] |
Unrealized Losses | 12,705 | [2] | 125 | [2] |
Fair Value | 587,361 | [2] | 619,559 | [2] |
OTTI in AOCI | 0 | [1],[2] | 0 | [1],[2] |
Other, including U.S. Treasury Securities [Member] | ' | ' | ||
Unrealized gains and losses on fixed maturities and equity securities | ' | ' | ||
Amortized Cost/Cost | 455,923 | [2] | 371,706 | [2] |
Unrealized Gains | 13,523 | [2] | 37,857 | [2] |
Unrealized Losses | 14,345 | [2] | 135 | [2] |
Fair Value | 455,101 | [2] | 409,428 | [2] |
OTTI in AOCI | 0 | [1],[2] | 0 | [1],[2] |
Municipal bonds [Member] | ' | ' | ||
Unrealized gains and losses on fixed maturities and equity securities | ' | ' | ||
Amortized Cost/Cost | 1,395,769 | 1,402,424 | ||
Unrealized Gains | 93,091 | 186,261 | ||
Unrealized Losses | 29,249 | 2,648 | ||
Fair Value | 1,459,611 | 1,586,037 | ||
OTTI in AOCI | 0 | [1] | 0 | [1] |
Foreign government bonds [Member] | ' | ' | ||
Unrealized gains and losses on fixed maturities and equity securities | ' | ' | ||
Amortized Cost/Cost | 49,501 | 48,476 | ||
Unrealized Gains | 5,169 | 9,393 | ||
Unrealized Losses | 349 | 0 | ||
Fair Value | 54,321 | 57,869 | ||
OTTI in AOCI | 0 | [1] | 0 | [1] |
Corporate bonds [Member] | ' | ' | ||
Unrealized gains and losses on fixed maturities and equity securities | ' | ' | ||
Amortized Cost/Cost | 2,391,920 | 2,258,554 | ||
Unrealized Gains | 193,315 | 313,430 | ||
Unrealized Losses | 31,811 | 4,950 | ||
Fair Value | 2,553,424 | 2,567,034 | ||
OTTI in AOCI | 0 | [1] | 0 | [1] |
Other mortgage-backed securities [Member] | ' | ' | ||
Unrealized gains and losses on fixed maturities and equity securities | ' | ' | ||
Amortized Cost/Cost | 809,856 | 683,257 | ||
Unrealized Gains | 29,251 | 41,080 | ||
Unrealized Losses | 8,403 | 2,032 | ||
Fair Value | 830,704 | 722,305 | ||
OTTI in AOCI | 2,786 | [1] | 3,214 | [1] |
Equity securities [Member] | ' | ' | ||
Unrealized gains and losses on fixed maturities and equity securities | ' | ' | ||
Equity securities, Amortized Cost/Cost | 83,079 | 52,396 | ||
Unrealized Gains | 7,225 | 2,397 | ||
Unrealized Losses | 3,673 | 1,290 | ||
Equity securities, Fair Value | 86,631 | 53,503 | ||
OTTI in AOCI | $0 | [1] | $0 | [1] |
[1] | Represents the amount of other-than-temporary impairment losses in AOCI which, beginning April 1, 2009, was not included in earnings under current accounting guidance. Amounts also include unrealized gains/losses on impaired securities relating to changes in the fair value of such securities subsequent to the impairment measurement date. | |||
[2] | Fair value includes securities issued by Federal National Mortgage Association (“FNMAâ€) of $364,823 and $375,111; Federal Home Loan Mortgage Corporation (“FHLMCâ€) of $439,184 and $418,174; and Government National Mortgage Association (“GNMAâ€) of $126,881 and $136,998 as of September 30, 2013 and December 31, 2012, respectively. |
Investments_Details_1
Investments (Details 1) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Number | Number | |||
Fixed maturity securities Fair Value | ' | ' | ||
Fixed maturity securities, Fair Value 12 Months or Less | $1,512,374 | $263,571 | ||
Fixed maturity securities, Fair Value More than 12 Months | 56,514 | 55,788 | ||
Fixed maturity securities, Fair Value, Total | 1,568,888 | 319,359 | ||
Fixed maturity securities Gross Unrealized Losses | ' | ' | ||
Fixed maturity securities, Gross Unrealized Losses 12 Months or Less | 93,637 | 5,648 | ||
Fixed maturity securities, Gross Unrealized Losses More than 12 Months | 6,898 | 5,532 | ||
Fixed maturity securities, Gross Unrealized Losses, Total | 100,535 | 11,180 | ||
Number of positions with a gross unrealized loss 12 months or less | 509 | 156 | ||
Number of position with gross unrealized loss position more than 12 months | 30 | 43 | ||
Number of position with gross unrealized loss position, Total | 539 | 199 | ||
Fair value as percentage of total fixed maturities and equity securities fair value less than 12 months | 25.10% | 4.40% | ||
Fair value as percentage of total fixed maturities and equity securities fair value more than 12 months | 0.90% | 0.90% | ||
Fair value as percentage of total fixed maturities and equity securities fair value, Total | 26.00% | 5.30% | ||
Mortgage-backed securities [Member] | ' | ' | ||
Fixed maturity securities Fair Value | ' | ' | ||
Fixed maturity securities, Fair Value 12 Months or Less | 112,736 | 11,006 | ||
Fixed maturity securities, Fair Value More than 12 Months | 40 | 50 | ||
Fixed maturity securities, Fair Value, Total | 112,776 | 11,056 | ||
Fixed maturity securities Gross Unrealized Losses | ' | ' | ||
Fixed maturity securities, Gross Unrealized Losses 12 Months or Less | 12,705 | 124 | ||
Fixed maturity securities, Gross Unrealized Losses More than 12 Months | 0 | 1 | ||
Fixed maturity securities, Gross Unrealized Losses, Total | 12,705 | 125 | ||
Other [Member] | ' | ' | ||
Fixed maturity securities Fair Value | ' | ' | ||
Fixed maturity securities, Fair Value 12 Months or Less | 191,183 | 9,944 | ||
Fixed maturity securities, Fair Value More than 12 Months | 0 | 0 | ||
Fixed maturity securities, Fair Value, Total | 191,183 | 9,944 | ||
Fixed maturity securities Gross Unrealized Losses | ' | ' | ||
Fixed maturity securities, Gross Unrealized Losses 12 Months or Less | 14,345 | 135 | ||
Fixed maturity securities, Gross Unrealized Losses More than 12 Months | 0 | 0 | ||
Fixed maturity securities, Gross Unrealized Losses, Total | 14,345 | 135 | ||
Municipal bonds [Member] | ' | ' | ||
Fixed maturity securities Fair Value | ' | ' | ||
Fixed maturity securities, Fair Value 12 Months or Less | 369,099 | 108,578 | ||
Fixed maturity securities, Fair Value More than 12 Months | 12,010 | 3,990 | ||
Fixed maturity securities, Fair Value, Total | 381,109 | 112,568 | ||
Fixed maturity securities Gross Unrealized Losses | ' | ' | ||
Fixed maturity securities, Gross Unrealized Losses 12 Months or Less | 27,759 | 2,605 | ||
Fixed maturity securities, Gross Unrealized Losses More than 12 Months | 1,490 | 43 | ||
Fixed maturity securities, Gross Unrealized Losses, Total | 29,249 | 2,648 | ||
Foreign government bonds [Member] | ' | ' | ||
Fixed maturity securities Fair Value | ' | ' | ||
Fixed maturity securities, Fair Value 12 Months or Less | 5,626 | 0 | ||
Fixed maturity securities, Fair Value More than 12 Months | 0 | 0 | ||
Fixed maturity securities, Fair Value, Total | 5,626 | 0 | ||
Fixed maturity securities Gross Unrealized Losses | ' | ' | ||
Fixed maturity securities, Gross Unrealized Losses 12 Months or Less | 349 | 0 | ||
Fixed maturity securities, Gross Unrealized Losses More than 12 Months | 0 | 0 | ||
Fixed maturity securities, Gross Unrealized Losses, Total | 349 | 0 | ||
Corporate bonds [Member] | ' | ' | ||
Fixed maturity securities Fair Value | ' | ' | ||
Fixed maturity securities, Fair Value 12 Months or Less | 577,369 | 56,481 | ||
Fixed maturity securities, Fair Value More than 12 Months | 14,305 | 26,725 | ||
Fixed maturity securities, Fair Value, Total | 591,674 | 83,206 | ||
Fixed maturity securities Gross Unrealized Losses | ' | ' | ||
Fixed maturity securities, Gross Unrealized Losses 12 Months or Less | 27,982 | 875 | ||
Fixed maturity securities, Gross Unrealized Losses More than 12 Months | 3,829 | 4,075 | ||
Fixed maturity securities, Gross Unrealized Losses, Total | 31,811 | 4,950 | ||
Other mortgage-backed securities [Member] | ' | ' | ||
Fixed maturity securities Fair Value | ' | ' | ||
Fixed maturity securities, Fair Value 12 Months or Less | 222,222 | 58,218 | ||
Fixed maturity securities, Fair Value More than 12 Months | 29,125 | 25,014 | ||
Fixed maturity securities, Fair Value, Total | 251,347 | 83,232 | ||
Fixed maturity securities Gross Unrealized Losses | ' | ' | ||
Fixed maturity securities, Gross Unrealized Losses 12 Months or Less | 7,246 | 621 | ||
Fixed maturity securities, Gross Unrealized Losses More than 12 Months | 1,157 | 1,411 | ||
Fixed maturity securities, Gross Unrealized Losses, Total | 8,403 | 2,032 | ||
Total fixed maturities securities [Member] | ' | ' | ||
Fixed maturity securities Fair Value | ' | ' | ||
Fixed maturity securities, Fair Value 12 Months or Less | 1,478,235 | 244,227 | ||
Fixed maturity securities, Fair Value More than 12 Months | 55,480 | 55,779 | ||
Fixed maturity securities, Fair Value, Total | 1,533,715 | 300,006 | ||
Fixed maturity securities Gross Unrealized Losses | ' | ' | ||
Fixed maturity securities, Gross Unrealized Losses 12 Months or Less | 90,386 | 4,360 | ||
Fixed maturity securities, Gross Unrealized Losses More than 12 Months | 6,476 | 5,530 | ||
Fixed maturity securities, Gross Unrealized Losses, Total | 96,862 | 9,890 | ||
Equity securities [Member] | ' | ' | ||
Fixed maturity securities Fair Value | ' | ' | ||
Fixed maturity securities, Fair Value 12 Months or Less | 34,139 | [1] | 19,344 | [1] |
Fixed maturity securities, Fair Value More than 12 Months | 1,034 | [1] | 9 | [1] |
Fixed maturity securities, Fair Value, Total | 35,173 | [1] | 19,353 | [1] |
Fixed maturity securities Gross Unrealized Losses | ' | ' | ||
Fixed maturity securities, Gross Unrealized Losses 12 Months or Less | 3,251 | [1] | 1,288 | [1] |
Fixed maturity securities, Gross Unrealized Losses More than 12 Months | 422 | [1] | 2 | [1] |
Fixed maturity securities, Gross Unrealized Losses, Total | $3,673 | [1] | $1,290 | [1] |
[1] | Includes nonredeemable (perpetual) preferred stocks, common stocks and closed-end funds. |
Investments_Details_2
Investments (Details 2) (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | ||
Cumulative credit loss | ' | ' | ||
Beginning of period | $2,877 | [1] | $3,957 | [1] |
New credit losses | 860 | [1],[2] | 2 | [1],[2] |
Losses related to securities sold or paid down during the period | 0 | [1] | -1,082 | [1] |
End of period | $3,737 | [1] | $2,877 | [1] |
[1] | The cumulative credit loss amounts exclude other-than-temporary impairment losses on securities held as of the periods indicated that the Company intended to sell or it was more likely than not that the Company would be required to sell the security before the recovery of the amortized cost basis. | |||
[2] | For the nine months ended September 30, 2013, the other than temporary impairment loss was recorded on a Detroit general obligation bond. |
Investments_Details_3
Investments (Details 3) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Estimated expected maturity: | ' | ' |
Due in 1 year or less, Amortized Cost | $259,224 | ' |
Due in 1 year or less, Fair Value | 271,941 | ' |
Due in 1 year or less, Percent of Total Fair Value | 4.60% | 4.30% |
Due after 1 year through 5 years, Amortized Cost | 1,152,678 | ' |
Due after 1 year through 5 years, Fair Value | 1,209,226 | ' |
Due after 1 year through 5 years, Percent of Total Fair Value | 20.30% | 20.80% |
Due after 5 years through 10 years, Amortized Cost | 2,182,994 | ' |
Due after 5 years through 10 years, Fair Value | 2,290,089 | ' |
Due after 5 years through 10 years, Percent of Total Fair Value | 38.50% | 38.40% |
Due after 10 years through 20 years, Amortized Cost | 1,124,817 | ' |
Due after 10 years through 20 years, Fair Value | 1,179,999 | ' |
Due after 10 years through 20 years, Percent of Total Fair Value | 19.90% | 18.70% |
Due after 20 years, Amortized Cost | 943,005 | ' |
Due after 20 years, Fair Value | 989,267 | ' |
Due after 20 years, Percent of Total Fair Value | 16.70% | 17.80% |
Total, Amortized Cost | 5,662,718 | 5,311,457 |
Fair Value | $5,940,522 | $5,962,232 |
Total, Percent of Total Fair Value | 100.00% | 100.00% |
Average option-adjusted duration, in years | '6 years 3 months 18 days | '6 years 3 months 18 days |
Investments_Details_4
Investments (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Proceeds received from sales of fixed maturities and equity securities | ' | ' | ' | ' |
Proceeds received, Fixed maturity securities | $56,343 | $191,155 | $270,329 | $470,684 |
Proceeds received, Equity securities | 3,742 | 1,970 | 14,875 | 2,894 |
Fixed Maturity Securities [Member] | ' | ' | ' | ' |
Proceeds received from sales of fixed maturities and equity securities | ' | ' | ' | ' |
Gross gains realized | 1,807 | 10,528 | 16,197 | 27,891 |
Gross losses realized | -4,117 | -139 | -4,598 | -11,968 |
Equity Securities [Member] | ' | ' | ' | ' |
Proceeds received from sales of fixed maturities and equity securities | ' | ' | ' | ' |
Gross gains realized | 531 | 67 | 3,875 | 84 |
Gross losses realized | ($103) | ($157) | ($490) | ($233) |
Investments_Details_5
Investments (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Reconciliation of net unrealized investment gains (losses) on fixed maturity securities and equity securities | ' | ' | ' | ' | ||
Reclassification of net realized investment (gains) losses to net income | ($915) | [1],[2] | ' | $13,566 | [1],[2] | ' |
Fixed Maturity Securities [Member] | ' | ' | ' | ' | ||
Reconciliation of net unrealized investment gains (losses) on fixed maturity securities and equity securities | ' | ' | ' | ' | ||
Beginning of period | 220,668 | 356,104 | 423,004 | 284,338 | ||
Change in unrealized investment gains and losses | -41,288 | 70,702 | -231,116 | 146,569 | ||
Reclassification of net realized investment (gains) losses to net income | 1,193 | -7,054 | -11,315 | -11,155 | ||
End of period | 180,573 | 419,752 | 180,573 | 419,752 | ||
Equity securities [Member] | ' | ' | ' | ' | ||
Reconciliation of net unrealized investment gains (losses) on fixed maturity securities and equity securities | ' | ' | ' | ' | ||
Beginning of period | 3,266 | 543 | 720 | 2,408 | ||
Change in unrealized investment gains and losses | -679 | 646 | 3,840 | 1,373 | ||
Reclassification of net realized investment (gains) losses to net income | -278 | 58 | -2,251 | -2,534 | ||
End of period | $2,309 | $1,247 | $2,309 | $1,247 | ||
[1] | All amounts are net of tax. | |||||
[2] | The pretax amounts reclassified from accumulated other comprehensive income, $(1,407) and $20,872, are included in net realized investment gains and losses and the related tax expenses (benefits), $(492) and $7,306, are included in income tax expense in the Consolidated Statements of Operations for the three and nine months ended September 30, 2013, respectively. |
Investments_Details_Textual
Investments (Details Textual) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Investments (Textual) [Abstract] | ' | ' |
Fair value of issued securities | $5,940,522 | $5,962,232 |
Investments (Additional Textual) [Abstract] | ' | ' |
Impairment of securities | 0 | ' |
Cash received in an amount equal to fair value of securities transferred | 95.00% | ' |
Fair value of securities transferred | 123,368 | ' |
Obligation for securities sold under agreement to repurchase, including accrued interest | 121,308 | ' |
Federal National Mortgage Association Certificates and Obligations (FNMA) [Member] | ' | ' |
Investments (Textual) [Abstract] | ' | ' |
Fair value of issued securities | 364,823 | 375,111 |
Federal Home Loan Mortgage Corporation Certificates and Obligations (FHLMC) [Member] | ' | ' |
Investments (Textual) [Abstract] | ' | ' |
Fair value of issued securities | 439,184 | 418,174 |
Government National Mortgage Association Certificates and Obligations (GNMA) [Member] | ' | ' |
Investments (Textual) [Abstract] | ' | ' |
Fair value of issued securities | $126,881 | $136,998 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Investments, Carrying Amount | $6,340,752 | $6,292,097 | ||
Separate Account (variable annuity) assets | 1,627,685 | 1,398,281 | ||
Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Carrying Amount | 5,940,522 | 5,962,232 | ||
Fair Value | 5,940,522 | 5,962,232 | ||
Investments, Carrying Amount | 6,121,398 | 6,103,296 | ||
Investments, Fair Value | 6,121,398 | 6,103,296 | ||
Separate Account (variable annuity) assets | 1,627,685 | [1] | 1,398,281 | [1] |
Separate Account (variable annuity) assets, Fair Value | 1,627,685 | [1] | 1,398,281 | [1] |
Financial Liabilities, Fair Value | 0 | 0 | ||
Financial Liabilities, Carrying Value | 0 | 0 | ||
Short-term investments [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Investments, Carrying Amount | 94,245 | 87,561 | ||
Investments, Fair Value | 94,245 | 87,561 | ||
Mortgage-backed securities [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Carrying Amount | 587,361 | 619,559 | ||
Fair Value | 587,361 | 619,559 | ||
Other, including U.S. Treasury Securities [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Carrying Amount | 455,101 | 409,428 | ||
Fair Value | 455,101 | 409,428 | ||
Municipal bonds [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Carrying Amount | 1,459,611 | 1,586,037 | ||
Fair Value | 1,459,611 | 1,586,037 | ||
Foreign government bonds [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Carrying Amount | 54,321 | 57,869 | ||
Fair Value | 54,321 | 57,869 | ||
Corporate bonds [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Carrying Amount | 2,553,424 | 2,567,034 | ||
Fair Value | 2,553,424 | 2,567,034 | ||
Other mortgage-backed securities [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Carrying Amount | 830,704 | 722,305 | ||
Fair Value | 830,704 | 722,305 | ||
Equity securities [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Investments, Carrying Amount | 86,631 | 53,503 | ||
Investments, Fair Value | 86,631 | 53,503 | ||
Level 1 [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Fair Value | 28,153 | 30,528 | ||
Investments, Fair Value | 177,490 | 161,793 | ||
Separate Account (variable annuity) assets, Fair Value | 1,627,685 | [1] | 1,398,281 | [1] |
Financial Liabilities, Fair Value | 0 | 0 | ||
Level 1 [Member] | Short-term investments [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Investments, Fair Value | 78,956 | 87,561 | ||
Level 1 [Member] | Mortgage-backed securities [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Fair Value | 0 | 0 | ||
Level 1 [Member] | Other, including U.S. Treasury Securities [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Fair Value | 18,063 | 18,594 | ||
Level 1 [Member] | Municipal bonds [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Fair Value | 0 | 0 | ||
Level 1 [Member] | Foreign government bonds [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Fair Value | 0 | 0 | ||
Level 1 [Member] | Corporate bonds [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Fair Value | 10,090 | 11,934 | ||
Level 1 [Member] | Other mortgage-backed securities [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Fair Value | 0 | 0 | ||
Level 1 [Member] | Equity securities [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Investments, Fair Value | 70,381 | 43,704 | ||
Level 2 [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Fair Value | 5,776,753 | 5,800,535 | ||
Investments, Fair Value | 5,808,286 | 5,809,994 | ||
Separate Account (variable annuity) assets, Fair Value | 0 | [1] | 0 | [1] |
Financial Liabilities, Fair Value | 0 | 0 | ||
Level 2 [Member] | Short-term investments [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Investments, Fair Value | 15,289 | 0 | ||
Level 2 [Member] | Mortgage-backed securities [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Fair Value | 587,361 | 619,559 | ||
Level 2 [Member] | Other, including U.S. Treasury Securities [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Fair Value | 437,038 | 390,834 | ||
Level 2 [Member] | Municipal bonds [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Fair Value | 1,451,296 | 1,573,762 | ||
Level 2 [Member] | Foreign government bonds [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Fair Value | 54,321 | 57,869 | ||
Level 2 [Member] | Corporate bonds [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Fair Value | 2,479,043 | 2,469,378 | ||
Level 2 [Member] | Other mortgage-backed securities [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Fair Value | 767,694 | 689,133 | ||
Level 2 [Member] | Equity securities [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Investments, Fair Value | 16,244 | 9,459 | ||
Level 3 [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Fair Value | 135,616 | 131,169 | ||
Investments, Fair Value | 135,622 | 131,509 | ||
Separate Account (variable annuity) assets, Fair Value | 0 | [1] | 0 | [1] |
Financial Liabilities, Fair Value | 0 | 0 | ||
Level 3 [Member] | Short-term investments [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Investments, Fair Value | 0 | 0 | ||
Level 3 [Member] | Mortgage-backed securities [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Fair Value | 0 | 0 | ||
Level 3 [Member] | Other, including U.S. Treasury Securities [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Fair Value | 0 | 0 | ||
Level 3 [Member] | Municipal bonds [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Fair Value | 8,315 | 12,275 | ||
Level 3 [Member] | Foreign government bonds [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Fair Value | 0 | 0 | ||
Level 3 [Member] | Corporate bonds [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Fair Value | 64,291 | 85,722 | ||
Level 3 [Member] | Other mortgage-backed securities [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Fair Value | 63,010 | 33,172 | ||
Level 3 [Member] | Equity securities [Member] | Recurring [Member] | ' | ' | ||
U.S. government and federally sponsored agency obligations: | ' | ' | ||
Investments, Fair Value | $6 | $340 | ||
[1] | Separate Account (variable annuity) liabilities are set equal to Separate Account (variable annuity) assets. |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Financial Assets | ' | ' | ' | ' | ||||
Beginning balance | $109,703 | $69,755 | $131,509 | $93,173 | ||||
Transfers into Level 3 | 38,689 | [1] | 62,899 | [2] | 110,034 | [1] | 89,643 | [2] |
Transfers out of Level 3 | -2,681 | [1] | 0 | [2] | -71,425 | [1] | -50,707 | [2] |
Total gains or losses | ' | ' | ' | ' | ||||
Net realized gains (losses) included in net income | 0 | -2 | 0 | -2 | ||||
Net unrealized gains (losses) included in other comprehensive income | -39 | 19 | -2,517 | 1,130 | ||||
Purchases | 0 | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | -334 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Paydowns, maturities and distributions | -10,050 | -329 | -31,645 | -895 | ||||
Ending balance | 135,622 | 132,342 | 135,622 | 132,342 | ||||
Municipal bonds [Member] | ' | ' | ' | ' | ||||
Financial Assets | ' | ' | ' | ' | ||||
Beginning balance | 3,764 | 0 | 12,275 | 0 | ||||
Transfers into Level 3 | 5,546 | [1] | 12,297 | [2] | 9,453 | [1] | 12,297 | [2] |
Transfers out of Level 3 | -800 | [1] | 0 | [2] | -800 | [1] | 0 | [2] |
Total gains or losses | ' | ' | ' | ' | ||||
Net realized gains (losses) included in net income | 0 | 0 | 0 | 0 | ||||
Net unrealized gains (losses) included in other comprehensive income | -123 | 0 | -474 | 0 | ||||
Purchases | 0 | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Paydowns, maturities and distributions | -72 | 0 | -12,139 | 0 | ||||
Ending balance | 8,315 | 12,297 | 8,315 | 12,297 | ||||
Corporate bonds [Member] | ' | ' | ' | ' | ||||
Financial Assets | ' | ' | ' | ' | ||||
Beginning balance | 56,590 | 56,459 | 85,722 | 88,256 | ||||
Transfers into Level 3 | 9,315 | [1] | 29,558 | [2] | 32,754 | [1] | 47,798 | [2] |
Transfers out of Level 3 | 0 | [1] | 0 | [2] | -50,341 | [1] | -50,707 | [2] |
Total gains or losses | ' | ' | ' | ' | ||||
Net realized gains (losses) included in net income | 0 | 0 | 0 | 0 | ||||
Net unrealized gains (losses) included in other comprehensive income | 104 | -31 | -1,605 | 915 | ||||
Purchases | 0 | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Paydowns, maturities and distributions | -1,718 | -169 | -2,239 | -445 | ||||
Ending balance | 64,291 | 85,817 | 64,291 | 85,817 | ||||
Other mortgage-backed securities [Member] | ' | ' | ' | ' | ||||
Financial Assets | ' | ' | ' | ' | ||||
Beginning balance | 49,343 | 12,911 | 33,172 | 4,532 | ||||
Transfers into Level 3 | 23,828 | [1] | 21,044 | [2] | 67,827 | [1] | 29,548 | [2] |
Transfers out of Level 3 | -1,881 | [1] | 0 | [2] | -20,284 | [1] | 0 | [2] |
Total gains or losses | ' | ' | ' | ' | ||||
Net realized gains (losses) included in net income | 0 | -2 | 0 | -2 | ||||
Net unrealized gains (losses) included in other comprehensive income | -20 | 95 | -438 | 260 | ||||
Purchases | 0 | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Paydowns, maturities and distributions | -8,260 | -160 | -17,267 | -450 | ||||
Ending balance | 63,010 | 33,888 | 63,010 | 33,888 | ||||
Total Fixed Maturities [Member] | ' | ' | ' | ' | ||||
Financial Assets | ' | ' | ' | ' | ||||
Beginning balance | 109,697 | 69,370 | 131,169 | 92,788 | ||||
Transfers into Level 3 | 38,689 | [1] | 62,899 | [2] | 110,034 | [1] | 89,643 | [2] |
Transfers out of Level 3 | -2,681 | [1] | 0 | [2] | -71,425 | [1] | -50,707 | [2] |
Total gains or losses | ' | ' | ' | ' | ||||
Net realized gains (losses) included in net income | 0 | -2 | 0 | -2 | ||||
Net unrealized gains (losses) included in other comprehensive income | -39 | 64 | -2,517 | 1,175 | ||||
Purchases | 0 | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Paydowns, maturities and distributions | -10,050 | -329 | -31,645 | -895 | ||||
Ending balance | 135,616 | 132,002 | 135,616 | 132,002 | ||||
Equity securities [Member] | ' | ' | ' | ' | ||||
Financial Assets | ' | ' | ' | ' | ||||
Beginning balance | 6 | 385 | 340 | 385 | ||||
Transfers into Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] |
Transfers out of Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] |
Total gains or losses | ' | ' | ' | ' | ||||
Net realized gains (losses) included in net income | 0 | 0 | 0 | 0 | ||||
Net unrealized gains (losses) included in other comprehensive income | 0 | -45 | 0 | -45 | ||||
Purchases | 0 | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | -334 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Paydowns, maturities and distributions | 0 | 0 | 0 | 0 | ||||
Ending balance | $6 | $340 | $6 | $340 | ||||
[1] | Transfers into and out of Level 3 during the periods ended September 30, 2013 were attributable to changes in the availability of observable market information for individual fixed maturity securities. The Company’s policy is to recognize transfers into and transfers out of the levels as of the ending date of the reporting period. | |||||||
[2] | Transfers into and out of Level 3 during the periods ended September 30, 2012 were attributable to changes in the availability of observable market information for individual fixed maturity securities. The Company’s policy is to recognize transfers into and transfers out of the levels as of the ending date of the reporting period. |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments | ' | ' |
Other investments, Carrying Amount | $6,340,752 | $6,292,097 |
Financial Liabilities | ' | ' |
Fixed annuity contract liabilities, Carrying Amount | 3,454,356 | 3,257,758 |
Fixed annuity contract liabilities, Fair value | 3,254,859 | 3,070,111 |
Policyholder account balances on interest-sensitive life contracts, Carrying Amount | 78,843 | 79,017 |
Policyholder account balances on interest-sensitive life contracts, Fair value | 78,345 | 78,519 |
Other policyholder funds, Carrying Amount | 97,823 | 103,227 |
Other policyholder funds, Fair Value | 97,823 | 103,227 |
Short-term debt, Carrying Amount | 38,000 | 38,000 |
Short-term debt, Fair Value | 38,000 | 38,000 |
Long-term debt, Carrying Amount | 199,858 | 199,809 |
Long-term debt, Fair Value | 215,918 | 219,319 |
Other liabilities, repurchase agreement obligations, Carrying Amount | 121,308 | ' |
Other liabilities, repurchase agreement obligations, Fair Value | 121,308 | ' |
Other investments [Member] | ' | ' |
Investments | ' | ' |
Other investments, Carrying Amount | 139,010 | 134,985 |
Other investments, Fair Value | 144,054 | 135,121 |
Level 1 [Member] | ' | ' |
Financial Liabilities | ' | ' |
Fixed annuity contract liabilities, Fair value | 0 | 0 |
Policyholder account balances on interest-sensitive life contracts, Fair value | 0 | 0 |
Other policyholder funds, Fair Value | 0 | 0 |
Short-term debt, Fair Value | 0 | 0 |
Long-term debt, Fair Value | 215,918 | 219,319 |
Other liabilities, repurchase agreement obligations, Carrying Amount | 0 | ' |
Level 1 [Member] | Other investments [Member] | ' | ' |
Investments | ' | ' |
Other investments, Fair Value | 0 | 0 |
Level 2 [Member] | ' | ' |
Financial Liabilities | ' | ' |
Fixed annuity contract liabilities, Fair value | 0 | 0 |
Policyholder account balances on interest-sensitive life contracts, Fair value | 0 | 0 |
Other policyholder funds, Fair Value | 0 | 0 |
Short-term debt, Fair Value | 38,000 | 38,000 |
Long-term debt, Fair Value | 0 | 0 |
Other liabilities, repurchase agreement obligations, Carrying Amount | 121,308 | ' |
Level 2 [Member] | Other investments [Member] | ' | ' |
Investments | ' | ' |
Other investments, Fair Value | 0 | 0 |
Level 3 [Member] | ' | ' |
Financial Liabilities | ' | ' |
Fixed annuity contract liabilities, Fair value | 3,254,859 | 3,070,111 |
Policyholder account balances on interest-sensitive life contracts, Fair value | 78,345 | 78,519 |
Other policyholder funds, Fair Value | 97,823 | 103,227 |
Short-term debt, Fair Value | 0 | 0 |
Long-term debt, Fair Value | 0 | 0 |
Other liabilities, repurchase agreement obligations, Carrying Amount | 0 | ' |
Level 3 [Member] | Other investments [Member] | ' | ' |
Investments | ' | ' |
Other investments, Fair Value | $144,054 | $135,121 |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments (Details Textual) (Level 3 [Member], USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Level 3 [Member] | ' | ' |
Fair Value of Financial Instruments (Textual) [Abstract] | ' | ' |
Percentage of investment portfolio fair value pricing services or index priced | 88.00% | 89.00% |
Percentage of invested assets in total investment portfolio level3 | 2.10% | ' |
Net realized gains or losses | $0 | $0 |
Debt_Details
Debt (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Short-term debt: | ' | ' |
Bank Credit Facility, expires October 6, 2015 | $38,000 | $38,000 |
Long-term debt: | ' | ' |
Long-term debt | 199,858 | 199,809 |
Total | 237,858 | 237,809 |
Senior Notes 2015 [Member] | ' | ' |
Short-term debt: | ' | ' |
Bank Credit Facility, expires October 6, 2015 | 38,000 | 38,000 |
Senior Notes 2015 [Member] | Senior Note 6.05 % [Member] | ' | ' |
Long-term debt: | ' | ' |
Long-term debt | 74,955 | 74,935 |
Senior Notes 2016 [Member] | Senior Note 6.85 % [Member] | ' | ' |
Long-term debt: | ' | ' |
Long-term debt | $124,903 | $124,874 |
Debt_Details_Textual
Debt (Details Textual) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Debt (Textual) [Abstract] | ' | ' |
Expiry date of bank credit facility | 6-Oct-15 | ' |
FHLB common stock amount equal rate | 5.00% | ' |
Senior Notes 2015 [Member] | ' | ' |
Debt (Textual) [Abstract] | ' | ' |
Senior Notes | 6.05% | ' |
Senior Notes 2015 [Member] | Senior Note 6.05 % [Member] | ' | ' |
Debt (Textual) [Abstract] | ' | ' |
Unaccrued discount | $45 | $65 |
Aggregate principal amount | 75,000 | ' |
Maturity date of Senior note | 15-Jun-15 | ' |
Imputed rate | 6.10% | ' |
Senior Notes 2016 [Member] | ' | ' |
Debt (Textual) [Abstract] | ' | ' |
Senior Notes | 6.85% | ' |
Senior Notes 2016 [Member] | Senior Note 6.85 % [Member] | ' | ' |
Debt (Textual) [Abstract] | ' | ' |
Unaccrued discount | 97 | 126 |
Aggregate principal amount | $125,000 | ' |
Maturity date of Senior note | 15-Apr-16 | ' |
Imputed rate | 6.90% | ' |
Pension_Plans_and_Other_Postre2
Pension Plans and Other Postretirement Benefits (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Defined Benefit Plan [Member] | ' | ' | ' | ' |
Service cost: | ' | ' | ' | ' |
Benefit accrual | $0 | $0 | $0 | $0 |
Other expenses | 90 | 90 | 270 | 270 |
Interest cost | 342 | 356 | 1,027 | 1,070 |
Expected return on plan assets | -560 | -605 | -1,679 | -1,817 |
Settlement loss | 244 | 161 | 731 | 1,079 |
Amortization of: | ' | ' | ' | ' |
Prior service cost | 0 | 0 | 0 | 0 |
Actuarial (gain) loss | 401 | 512 | 1,202 | 1,538 |
Net periodic pension expense (benefit) | 517 | 514 | 1,551 | 2,140 |
Supplemental Defined Benefit Plans [Member] | ' | ' | ' | ' |
Service cost: | ' | ' | ' | ' |
Benefit accrual | 0 | 0 | 0 | 0 |
Other expenses | 0 | 0 | 0 | 0 |
Interest cost | 154 | 171 | 461 | 506 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Settlement loss | 0 | 0 | 0 | 0 |
Amortization of: | ' | ' | ' | ' |
Prior service cost | 31 | 31 | 94 | 93 |
Actuarial (gain) loss | 50 | -362 | 152 | 128 |
Net periodic pension expense (benefit) | $235 | ($160) | $707 | $727 |
Pension_Plans_and_Other_Postre3
Pension Plans and Other Postretirement Benefits (Details 1) (Other Postretirement Benefit Plans [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Other Postretirement Benefit Plans [Member] | ' | ' | ' | ' |
Components of net periodic benefit: | ' | ' | ' | ' |
Service cost | $0 | $0 | $0 | $0 |
Interest cost | 23 | 22 | 69 | 68 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of prior gain | -59 | -131 | -177 | -392 |
Net periodic pension expense (benefit) | ($36) | ($109) | ($108) | ($324) |
Pension_Plans_and_Other_Postre4
Pension Plans and Other Postretirement Benefits (Details 2) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | |
Defined Benefit Plan [Member] | ' | |
Summary of minimum funding requirement, contributions made and the expected full year contributions for the Company's plans | ' | |
Minimum funding requirement for 2013 | $0 | |
Contributions made in the nine months ended September 30, 2013 | 3,103 | |
Expected contributions (approximations) for the year ended December 31, 2013 as of the time of: | ' | |
This Form 10-Q (1) | 3,103 | [1] |
2012 Form 10-K (2) | 2,500 | [2] |
Supplemental Defined Benefit Plans [Member] | ' | |
Summary of minimum funding requirement, contributions made and the expected full year contributions for the Company's plans | ' | |
Contributions made in the nine months ended September 30, 2013 | 986 | |
Expected contributions (approximations) for the year ended December 31, 2013 as of the time of: | ' | |
This Form 10-Q (1) | 1,320 | [1] |
2012 Form 10-K (2) | 1,320 | [2] |
Other Postretirement Benefits [Member] | ' | |
Summary of minimum funding requirement, contributions made and the expected full year contributions for the Company's plans | ' | |
Contributions made in the nine months ended September 30, 2013 | 406 | |
Expected contributions (approximations) for the year ended December 31, 2013 as of the time of: | ' | |
This Form 10-Q (1) | 480 | [1] |
2012 Form 10-K (2) | $480 | [2] |
[1] | HMEC’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013. | |
[2] | HMEC’s Annual Report on Form 10-K for the year ended December 31, 2012, specifically “Notes to Consolidated Financial Statements — Note 9 — Pension Plans and Other Postretirement Benefitsâ€. |
Pension_Plans_and_Other_Postre5
Pension Plans and Other Postretirement Benefits (Details Textual) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Pension Plans and Other Postretirement Benefits (Textual) [Abstract] | ' | ' |
Effective Jan. 1, 2007, minimum age at which previous group health benefits were eliminated | '65 years | ' |
Health reimbursement accounts funding | $132 | $133 |
Minimum funding requirement for 2013 | $0 | ' |
Reinsurance_Details
Reinsurance (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Effects of reinsurance on premiums and benefits | ' | ' | ' | ' |
Premiums written and contract deposits, Gross Amount | $312,351 | $291,732 | $838,615 | $808,147 |
Premiums written and contract deposits, Ceded to Other Companies | 7,162 | 7,407 | 22,074 | 22,175 |
Premiums written and contract deposits, Assumed from Other Companies | 844 | 881 | 2,273 | 2,276 |
Premiums written and contract deposits, Net Amount | 306,033 | 285,206 | 818,814 | 788,248 |
Premiums and contract charges earned, Gross Amount | 179,969 | 174,372 | 534,621 | 519,928 |
Premiums and contract charges earned, Ceded to Other Companies | 7,094 | 7,410 | 22,455 | 22,541 |
Premiums and contract charges earned, Assumed from Other Companies | 886 | 942 | 2,314 | 2,356 |
Premiums and contract charges earned, Net Amount | 173,761 | 167,904 | 514,480 | 499,743 |
Benefits, claims and settlement expenses, Gross Amount | 114,261 | 108,680 | 351,274 | 353,029 |
Benefits, claims and settlement expenses, Ceded to Other Companies | 2,602 | 3,585 | 7,251 | 10,365 |
Benefits, claims and settlement expenses, Assumed from Other Companies | 1,042 | 956 | 2,142 | 2,249 |
Benefits, claims and settlement expenses, Net Amount | $112,701 | $106,051 | $346,165 | $344,913 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Summarized financial information for these segments | ' | ' | ' | ' | ' |
Insurance premiums and contract charges earned | $173,761 | $167,904 | $514,480 | $499,743 | ' |
Net investment income | 78,466 | 76,649 | 233,230 | 228,658 | ' |
Net income (loss) | 23,599 | 32,266 | 76,606 | 72,040 | ' |
Assets | 8,522,731 | ' | 8,522,731 | ' | 8,167,726 |
Property and casualty [Member] | ' | ' | ' | ' | ' |
Summarized financial information for these segments | ' | ' | ' | ' | ' |
Insurance premiums and contract charges earned | 140,812 | 136,809 | 418,205 | 407,471 | ' |
Net investment income | 8,824 | 9,022 | 26,894 | 27,250 | ' |
Net income (loss) | 11,037 | 13,529 | 25,363 | 22,633 | ' |
Assets | 1,005,190 | ' | 1,005,190 | ' | 1,016,368 |
Annuity [Member] | ' | ' | ' | ' | ' |
Summarized financial information for these segments | ' | ' | ' | ' | ' |
Insurance premiums and contract charges earned | 5,895 | 5,551 | 16,714 | 16,053 | ' |
Net investment income | 52,175 | 50,742 | 154,818 | 150,000 | ' |
Net income (loss) | 11,605 | 9,918 | 31,896 | 29,380 | ' |
Assets | 5,724,170 | ' | 5,724,170 | ' | 5,380,780 |
Life [Member] | ' | ' | ' | ' | ' |
Summarized financial information for these segments | ' | ' | ' | ' | ' |
Insurance premiums and contract charges earned | 27,054 | 25,544 | 79,561 | 76,219 | ' |
Net investment income | 17,703 | 17,131 | 52,232 | 52,148 | ' |
Net income (loss) | 5,884 | 4,941 | 15,752 | 16,236 | ' |
Assets | 1,698,730 | ' | 1,698,730 | ' | 1,663,696 |
Corporate and other [Member] | ' | ' | ' | ' | ' |
Summarized financial information for these segments | ' | ' | ' | ' | ' |
Net investment income | 2 | 0 | 6 | 1 | ' |
Net income (loss) | -4,927 | 3,878 | 3,595 | 3,791 | ' |
Assets | 130,911 | ' | 130,911 | ' | 131,449 |
Intersegment eliminations [Member] | ' | ' | ' | ' | ' |
Summarized financial information for these segments | ' | ' | ' | ' | ' |
Net investment income | -238 | -246 | -720 | -741 | ' |
Assets | ($36,270) | ' | ($36,270) | ' | ($24,567) |
Segment_Information_Details_Te
Segment Information (Details Textual) | 9 Months Ended |
Sep. 30, 2013 | |
Segment Information (Textual) [Abstract] | ' |
Business segments | 4 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Schedule of accumulated other comprehensive income (loss) | ' | ' | ' | ' | ||
Unrealized Gains and Losses on Fixed Maturities and Equity Securities, Beginning balance | $196,847 | [1],[2] | ' | $382,400 | [1],[2] | ' |
Unrealized Gains and Losses on Fixed Maturities and Equity Securities, Other comprehensive income (loss) before reclassifications | -37,211 | [1],[2] | ' | -208,283 | [1],[2] | ' |
Unrealized Gains and Losses on Fixed Maturities and Equity Securities, Amounts reclassified from accumulated other comprehensive income | 915 | [1],[2] | ' | -13,566 | [1],[2] | ' |
Unrealized Gains and Losses on Fixed Maturities and Equity Securities, Net current-period other comprehensive income (loss) | -36,296 | [1],[2] | 61,557 | -221,849 | [1],[2] | 127,979 |
Unrealized Gains and Losses on Fixed Maturities and Equity Securities, Ending balance | 160,551 | [1],[2] | ' | 160,551 | [1],[2] | ' |
Defined Benefit Plans, Beginning balance | -15,311 | [1] | ' | -15,311 | [1] | ' |
Defined Benefit Plans, Ending balance | -15,311 | [1] | ' | -15,311 | [1] | ' |
Total, Beginning balance | 181,536 | [1] | ' | 367,089 | [1] | ' |
Total, Other comprehensive income (loss) before reclassifications | -37,211 | [1] | ' | -208,283 | [1] | ' |
Total, Amounts reclassified from accumulated other comprehensive income | 915 | [1] | ' | -13,566 | [1] | ' |
Total, Net current-period other comprehensive income (loss) | -36,296 | [1] | 61,557 | -221,849 | [1] | 127,979 |
Total, Ending balance | $145,240 | [1] | ' | $145,240 | [1] | ' |
[1] | All amounts are net of tax. | |||||
[2] | The pretax amounts reclassified from accumulated other comprehensive income, $(1,407) and $20,872, are included in net realized investment gains and losses and the related tax expenses (benefits), $(492) and $7,306, are included in income tax expense in the Consolidated Statements of Operations for the three and nine months ended September 30, 2013, respectively. |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Accumulated other comprehensive income (Loss) (Textual) [Abstract] | ' | ' |
Net realized investment gains (loss) | ($1,407) | $20,872 |
Income tax expense (benefits) | ($492) | $7,306 |