Horace Mann Educators (HMN) 10-Q 8 Nov 17 2017 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 31, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Entity Registrant Name	HORACE MANN EDUCATORS CORP /DE/
Entity Central Index Key	850,141
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Trading Symbol	HMN
Entity Common Stock, Shares Outstanding		40,667,211

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Investments
Fixed maturity securities, available for sale, at fair value (amortized cost 2017, $7,194,397; 2016, $7,152,127)	$ 7,630,634	$ 7,456,708
Equity securities, available for sale, at fair value (cost 2017, $140,200; 2016, $134,013)	159,275	141,649
Short-term and other investments	547,227	401,015
Total investments	8,337,136	7,999,372
Cash	6,692	16,670
Deferred policy acquisition costs	257,214	267,580
Goodwill	47,396	47,396
Other assets	344,443	321,874
Separate Account (variable annuity) assets	2,051,467	1,923,932
Total assets	11,044,348	10,576,824
Policy liabilities
Investment contract and life policy reserves	5,540,045	5,447,969
Unpaid claims and claim expenses	341,784	329,888
Unearned premiums	262,029	246,274
Total policy liabilities	6,143,858	6,024,131
Other policyholder funds	717,369	708,950
Other liabilities	493,810	378,620
Long-term debt	247,403	247,209
Separate Account (variable annuity) liabilities	2,051,467	1,923,932
Total liabilities	9,653,907	9,282,842
Preferred stock, $0.001 par value, authorized 1,000,000 shares; none issued	0	0
Common stock, $0.001 par value, authorized 75,000,000 shares; issued, 2017, 65,382,877; 2016, 64,917,683	65	65
Additional paid-in capital	462,068	453,479
Retained earnings	1,165,282	1,155,732
Accumulated other comprehensive income (loss), net of taxes:
Net unrealized investment gains on fixed maturity and equity securities	255,718	175,738
Net funded status of benefit plans	(11,817)	(11,817)
Treasury stock, at cost, 2017, 24,721,372 shares; 2016, 24,672,932 shares	(480,875)	(479,215)
Total shareholders’ equity	1,390,441	1,293,982
Total liabilities and shareholders’ equity	$ 11,044,348	$ 10,576,824

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Fixed maturities, available for sale, amortized cost (in usd)	$ 7,194,397	$ 7,152,127
Equity securities, available for sale, cost (in usd)	$ 140,200	$ 134,013
Preferred stock, par value (in usd per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	65,382,877	64,917,683
Treasury stock (in shares)	24,721,372	24,672,932

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues
Insurance premiums and contract charges earned	$ 198,935	$ 191,050	$ 590,375	$ 564,860
Net investment income	92,320	94,847	275,025	270,685
Net realized investment gains (losses)	(3,486)	3,985	(1,656)	6,911
Other income	2,048	1,294	4,813	3,581
Total revenues	289,817	291,176	868,557	846,037
Benefits, losses and expenses
Benefits, claims and settlement expenses	134,895	135,710	444,870	403,631
Interest credited	50,078	48,658	148,200	142,924
Policy acquisition expenses amortized	24,210	24,474	73,904	73,113
Operating expenses	44,172	44,337	139,156	130,478
Interest expense	2,978	2,975	8,879	8,858
Total benefits, losses and expenses	256,333	256,154	815,009	759,004
Income before income taxes	33,484	35,022	53,548	87,033
Income tax expense	6,933	8,099	9,418	23,091
Net income	$ 26,551	$ 26,923	$ 44,130	$ 63,942
Net income per share
Basic (in usd per share)	$ 0.64	$ 0.66	$ 1.07	$ 1.55
Diluted (in usd per share)	$ 0.64	$ 0.65	$ 1.06	$ 1.55
Weighted average number of common and common equivalent shares (in thousands)
Basic (in shares)	41,433	41,092	41,337	41,155
Diluted (in shares)	41,575	41,347	41,467	41,386
Net realized investment gains (losses)
Total other-than-temporary impairment losses on securities	$ (6,091)	$ (160)	$ (12,452)	$ (7,686)
Portion of losses recognized in other comprehensive income	0	0	0	(290)
Net other-than-temporary impairment losses on securities recognized in earnings	(6,091)	(160)	(12,452)	(7,396)
Realized investment gains, net	2,605	4,145	10,796	14,307
Total	$ (3,486)	$ 3,985	$ (1,656)	$ 6,911

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Comprehensive income
Net income	$ 26,551	$ 26,923	$ 44,130	$ 63,942
Other comprehensive income, net of taxes:
Change in net unrealized investment gains on fixed maturity and equity securities	12,208	7,638	79,980	162,124
Change in net funded status of benefit plans	0	0	0	0
Other comprehensive income	12,208	7,638	79,980	162,124
Total	$ 38,759	$ 34,561	$ 124,110	$ 226,066

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Total	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive income, net of taxes	Treasury stock, at cost
Beginning balance at Dec. 31, 2015		$ 65	$ 442,648	$ 1,116,277	$ 163,373	$ (457,702)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Options exercised, 2017, 156,211 shares; 2016, 114,507 shares		0
Conversion of common stock units, 2017, 15,981 shares; 2016, 15,629 shares		0
Conversion of restricted stock units, 2017, 293,002 shares; 2016, 188,207 shares		0
Options exercised and conversion of common stock units and restricted stock units			2,045
Share-based compensation expense			6,066
Net income	$ 63,942			63,942
Cash dividends, 2017, $0.825 per share; 2016, $0.795 per share				(33,241)
Change in net unrealized investment gains on fixed maturity and equity securities	162,124				162,124
Change in net funded status of benefit plans	0				0
Acquisition of shares, 2017, 48,440 shares; 2016, 701,410 shares						(21,513)
Ending balance at Sep. 30, 2016	1,444,084	65	450,759	1,146,978	325,497	(479,215)
Beginning balance at Jun. 30, 2016					317,859
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	26,923
Change in net unrealized investment gains on fixed maturity and equity securities	7,638
Change in net funded status of benefit plans	0
Ending balance at Sep. 30, 2016	1,444,084	65	450,759	1,146,978	325,497	(479,215)
Beginning balance at Dec. 31, 2016	1,293,982	65	453,479	1,155,732	163,921	(479,215)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Options exercised, 2017, 156,211 shares; 2016, 114,507 shares		0
Conversion of common stock units, 2017, 15,981 shares; 2016, 15,629 shares		0
Conversion of restricted stock units, 2017, 293,002 shares; 2016, 188,207 shares		0
Options exercised and conversion of common stock units and restricted stock units			2,773
Share-based compensation expense			5,816
Net income	44,130			44,130
Cash dividends, 2017, $0.825 per share; 2016, $0.795 per share				(34,580)
Change in net unrealized investment gains on fixed maturity and equity securities	79,980				79,980
Change in net funded status of benefit plans	0				0
Acquisition of shares, 2017, 48,440 shares; 2016, 701,410 shares						(1,660)
Ending balance at Sep. 30, 2017	1,390,441	65	462,068	1,165,282	243,901	(480,875)
Beginning balance at Jun. 30, 2017					231,693
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	26,551
Change in net unrealized investment gains on fixed maturity and equity securities	12,208
Change in net funded status of benefit plans	0
Ending balance at Sep. 30, 2017	$ 1,390,441	$ 65	$ 462,068	$ 1,165,282	$ 243,901	$ (480,875)

CONSOLIDATED STATEMENTS OF CHA7

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Common stock, par value (in usd per share)	$ 0.001		$ 0.001
Treasury stock (in shares)	24,721,372		24,672,932
Common stock
Common stock, par value (in usd per share)			$ 0.001	$ 0.001
Options exercised (in shares)	156,211	114,507
Conversion of common stock units (in shares)	15,981	15,629
Conversion of restricted stock units (in shares)	293,002	188,207
Retained earnings
Cash dividends (in usd per share)	$ 0.825	$ 0.795
Treasury stock, at cost
Treasury stock (in shares)	24,721,372	24,672,932	24,672,932	23,971,522
Treasury stock, acquisitions (in shares)	48,440	701,410

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows - operating activities
Premiums collected	$ 598,882	$ 557,816
Policyholder benefits paid	(410,241)	(422,184)
Policy acquisition and other operating expenses paid	(208,248)	(207,825)
Federal income taxes paid	(10,061)	(18,156)
Investment income collected	271,717	259,373
Interest expense paid	(5,821)	(6,072)
Other	976	1,884
Net cash provided by operating activities	237,204	164,836
Fixed maturity securities
Purchases	(1,041,744)	(1,097,880)
Sales	315,531	351,739
Maturities, paydowns, calls and redemptions	691,169	634,686
Purchase of other invested assets	(98,109)	(42,578)
Net cash used in equity securities, short-term and other investments	(54,281)	(75,665)
Net cash used in investing activities	(187,434)	(229,698)
Cash flows - financing activities
Dividends paid to shareholders	(34,580)	(33,241)
Acquisition of treasury stock	(1,661)	(21,513)
Proceeds from exercise of stock options	3,815	2,361
Withholding tax payments on RSUs tendered	(2,745)	(3,321)
Annuity contracts: variable, fixed and FHLB funding agreements
Deposits	348,900	391,944
Benefits, withdrawals and net transfers to Separate Account (variable annuity) assets	(295,064)	(240,489)
Transfer of Company 401(k) assets to a third-party provider	(77,898)	0
Life policy accounts
Deposits	3,357	2,957
Withdrawals and surrenders	(3,340)	(3,151)
Change in bank overdrafts	(532)	7,422
Net cash (used in) provided by financing activities	(59,748)	102,969
Net (decrease) increase in cash	(9,978)	38,107
Cash at beginning of period	16,670	15,509
Cash at end of period	$ 6,692	$ 53,616

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
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 disclosures 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, 2017 , the consolidated results of operations and comprehensive income for the three and nine month periods ended September 30, 2017 and 2016 , and the consolidated changes in shareholders’ equity and cash flows for the nine month periods ended September 30, 2017 and 2016 . 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 of 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. 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, 2016 . The results of operations for the three and nine month periods ended September 30, 2017 are not necessarily indicative of the results to be expected for the full year. The Company reclassified the presentation of certain prior period information to conform to the 2017 presentation. See “Adopted Accounting Standards”. Investment Contract and Life Policy Reserves This table summarizes the Company’s investment contract and life policy reserves. ($ in thousands) September 30, 2017 December 31, 2016 Investment contract reserves $ 4,428,989 $ 4,360,456 Life policy reserves 1,111,056 1,087,513 Total $ 5,540,045 $ 5,447,969 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 investment gains and losses on fixed maturity and equity securities and the after tax change in net funded status of benefit plans for the period as shown in the Consolidated Statement of Changes in Shareholders’ Equity. The following tables reconcile these components. ($ in thousands) Net Unrealized Investment Gains and Losses on Fixed Maturity and Equity Securities (1)(2) Benefit Plans (1) Total (1) Beginning balance, July 1, 2017 $ 243,510 $ (11,817 ) $ 231,693 Other comprehensive income (loss) before reclassifications 9,786 — 9,786 Amounts reclassified from accumulated other comprehensive income (loss) 2,422 — 2,422 Net current period other comprehensive income 12,208 — 12,208 Ending balance, September 30, 2017 $ 255,718 $ (11,817 ) $ 243,901 Beginning balance, January 1, 2017 $ 175,738 $ (11,817 ) $ 163,921 Other comprehensive income (loss) before reclassifications 78,419 — 78,419 Amounts reclassified from accumulated other comprehensive income (loss) 1,561 — 1,561 Net current period other comprehensive income 79,980 — 79,980 Ending balance, September 30, 2017 $ 255,718 $ (11,817 ) $ 243,901 (1) All amounts are net of tax. (2) The pretax amounts reclassified from accumulated other comprehensive income (loss), $(3,726) thousand and $(2,401) thousand , are included in net realized investment gains and losses and the related income tax expense, $(1,304) thousand and $(840) thousand , are included in income tax expense in the Consolidated Statements of Operations for the three and nine month periods ended September 30, 2017 , respectively. ($ in thousands) Net Unrealized Investment Gains and Losses on Fixed Maturity and Equity Securities (1)(2) Benefit Plans (1) Total (1) Beginning balance, July 1, 2016 $ 329,653 $ (11,794 ) $ 317,859 Other comprehensive income (loss) before reclassifications 9,912 — 9,912 Amounts reclassified from accumulated other comprehensive income (loss) (2,274 ) — (2,274 ) Net current period other comprehensive income 7,638 — 7,638 Ending balance, September 30, 2016 $ 337,291 $ (11,794 ) $ 325,497 Beginning balance, January 1, 2016 $ 175,167 $ (11,794 ) $ 163,373 Other comprehensive income (loss) before reclassifications 167,692 — 167,692 Amounts reclassified from accumulated other comprehensive income (loss) (5,568 ) — (5,568 ) Net current period other comprehensive income 162,124 — 162,124 Ending balance, September 30, 2016 $ 337,291 $ (11,794 ) $ 325,497 (1) All amounts are net of tax. (2) The pretax amounts reclassified from accumulated other comprehensive income (loss), $3,499 thousand and $8,566 thousand , are included in net realized investment gains and losses and the related income tax expense, $1,225 thousand and $2,998 thousand , are included in income tax expense in the Consolidated Statements of Operations for the three and nine month periods ended September 30, 2016 , 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 -- Net Unrealized Investment Gains and Losses on Fixed Maturity and Equity Securities”. Adopted Accounting Standards Employee Share-based Payment Accounting Effective January 1, 2017, the Company adopted new accounting guidance for employee share-based payments which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The recognition and classification of the excess tax benefit provisions were applied prospectively in the results of operations. This adoption resulted in additional excess tax benefits of $2,864 thousand which reduced the current provision for income taxes in the results of operations. The statutory tax withholding classification, which are cash payments made to taxing authorities for withheld taxes funded through tendered shares, were applied retrospectively and the Company reclassified the statutory tax withholding requirements in the statement of cash flows from Other in operating activities to Withholding tax payments on RSUs tendered in financing activities. This statutory withholding reclassification resulted in $2,745 thousand and $3,321 thousand being included in financing activities for the nine month periods ended September 30, 2017 and 2016 , respectively. There were no cumulative effect adjustments upon adoption of the new accounting guidance. Pending Accounting Standards Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued accounting guidance to provide a single comprehensive model in accounting for revenue arising from contracts with customers. The guidance applies to all contracts with customers; however, insurance contracts are specifically excluded from this updated guidance. The guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those years. Early adoption is permitted only for annual reporting periods beginning after December 15, 2016. The Company plans to adopt the guidance as of January 1, 2018. Insurance contract revenue continues to fall under the scope of ASC 944, Financial Services - Insurance, and ASC 605, Revenue Recognition. The Company performed an evaluation of the non-insurance contract revenue that would be subject to ASC 606, Revenue from Contracts with Customers, and concluded that there is not a material impact to the consolidated financial statements upon adoption on January 1, 2018. Recognition and Measurement of Financial Assets and Liabilities In January 2016, the FASB issued accounting guidance to improve certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. Among other things, the guidance revises the accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The Company’s results of operations will be impacted as changes in fair value of equity securities will be reported in net income instead of reported in other comprehensive income. The effective date of the guidance is for interim and annual reporting periods beginning after December 15, 2017. The guidance has not yet been adopted. Had the Company adopted the guidance on September 30, 2017, $15,718 thousand of after-tax unrealized gains on equity securities would have been reclassified from accumulated other comprehensive income to retained earnings. The actual amount reclassified upon adoption will vary depending on the future changes in fair value of the Company's equity portfolio. Statement of Cash Flows -- Classification In August 2016, the FASB issued guidance to reduce diversity in practice in the statement of cash flows between operating, investing and financing activities related to the classification of cash receipts and cash payments for eight specific issues. The FASB acknowledged that current GAAP either is unclear or does not include specific guidance on these eight cash flow classification issues: (1) debt prepayment or extinguishment costs; (2) settlement of zero-coupon bonds (pertains to issuers); (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims (pertains to claimants); (5) proceeds from the settlement of corporate-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions (pertains to transferors) and (8) separately identifiable cash flows and application of the predominance principle. For public business entities, the guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those years, using a retrospective approach. The guidance allows prospective adoption for individual issues if it is impracticable to apply the amendments retrospectively for those issues. Early application is permitted. Management believes the adoption of this accounting guidance will not have a material effect on the classifications in the Company’s consolidated statement of cash flows. The adoption of this accounting guidance will not have any effect on the results of operations or financial position of the Company. Accounting for Leases In February 2016, the FASB issued accounting and disclosure guidance to improve financial reporting and comparability among organizations about leasing transactions. Under the new guidance, for leases with lease terms of more than 12 months, a lessee will be required to recognize assets and liabilities on the balance sheet for the rights and obligations created by those leases. Consistent with current accounting guidance, the recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or an operating lease. However, while current guidance requires only capital leases to be recognized on the balance sheet, the new guidance will require both operating and capital leases to be recognized on the balance sheet. In transition to the new guidance, companies are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those years. Early application is permitted. Management is evaluating the impact this guidance will have on the results of operations and financial position of the Company. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued guidance to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments, including reinsurance receivables, held by companies. The new guidance replaces the incurred loss impairment methodology and requires an organization to measure and recognize all current expected credit losses (“CECL”) for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Companies will need to utilize forward-looking information to better inform their credit loss estimates. Companies will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. Credit losses related to available for sale debt securities -- which represent over 90% of Horace Mann’s total investment portfolio -- will be recorded through an allowance for credit losses with this allowance having a limit equal to the amount by which fair value is below amortized cost. The guidance also requires enhanced qualitative and quantitative disclosures to provide additional information about the amounts recorded in the financial statements. For public business entities that are SEC filers, the guidance is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those years, using a modified-retrospective approach. Early application is permitted for annual reporting periods, and interim periods within those years, beginning after December 15, 2018. Management is evaluating the impact this guidance will have on the results of operations and financial position of the Company. Simplifying the Test for Goodwill Impairment

Investments

Investments	9 Months Ended
	Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract]
Investments	The Company’s investment portfolio includes free-standing derivative financial instruments (currently over the counter (“OTC”) index call option contracts) to economically hedge risk associated with its fixed indexed annuity (“FIA”) and indexed universal life (“IUL”) products’ contingent liabilities. The Company’s FIA and IUL products include embedded derivative features that are discussed in “Note 1 -- Summary of Significant Accounting Policies -- Investment Contract and Life Policy Reserves -- Reserves for Fixed Indexed Annuities and Indexed Universal Life Policies” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . The Company’s investment portfolio included no other free-standing derivative financial instruments (futures, forwards, swaps, option contracts or other financial instruments with similar characteristics), and there were no other embedded derivative features related to the Company’s investment or insurance products during the nine month periods ended September 30, 2017 and 2016 . Fixed Maturity and Equity Securities The Company’s investment portfolio is comprised primarily of fixed maturity securities and also includes 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 (“AOCI”) of all fixed maturity and equity securities in the portfolio were as follows: ($ in thousands) Amortized Cost or Cost Unrealized Investment Gains Unrealized Investment Losses Fair Value OTTI in AOCI (1) September 30, 2017 Fixed maturity securities U.S. Government and federally sponsored agency obligations (2): Mortgage-backed securities $ 613,761 $ 34,712 $ 3,071 $ 645,402 $ — Other, including U.S. Treasury securities 653,237 24,705 6,922 671,020 — Municipal bonds 1,669,273 177,359 4,428 1,842,204 — Foreign government bonds 93,761 6,416 — 100,177 — Corporate bonds 2,635,313 190,548 4,158 2,821,703 — Other mortgage-backed securities 1,529,052 26,879 5,803 1,550,128 1,335 Totals $ 7,194,397 $ 460,619 $ 24,382 $ 7,630,634 $ 1,335 Equity securities (3) $ 140,200 $ 20,483 $ 1,408 $ 159,275 $ — December 31, 2016 Fixed maturity securities U.S. Government and federally sponsored agency obligations (2): Mortgage-backed securities $ 587,355 $ 34,256 $ 6,720 $ 614,891 $ — Other, including U.S. Treasury securities 458,745 18,518 10,120 467,143 — Municipal bonds 1,648,252 143,733 22,588 1,769,397 — Foreign government bonds 93,864 5,102 297 98,669 — Corporate bonds 2,672,818 152,229 14,826 2,810,221 — Other mortgage-backed securities 1,691,093 21,153 15,859 1,696,387 1,618 Totals $ 7,152,127 $ 374,991 $ 70,410 $ 7,456,708 $ 1,618 Equity securities (3) $ 134,013 $ 13,210 $ 5,574 $ 141,649 $ — (1) Related to securities for which an unrealized loss was bifurcated to distinguish the credit-related portion and the portion driven by other market factors. Represents the amount of OTTI losses in AOCI which was not included in earnings; amounts also include net unrealized investment gains and losses on such impaired securities relating to changes in the fair value of those securities subsequent to the impairment measurement date. (2) Fair value includes securities issued by Federal National Mortgage Association (“FNMA”) of $332,057 thousand and $272,668 thousand ; Federal Home Loan Mortgage Corporation (“FHLMC”) of $373,676 thousand and $378,683 thousand ; and Government National Mortgage Association (“GNMA”) of $109,873 thousand and $115,627 thousand as of September 30, 2017 and December 31, 2016 , respectively. (3) Includes nonredeemable perpetual preferred stocks, common stocks and closed-end funds. The following table presents the fair value and gross unrealized losses of fixed maturity and equity securities in an unrealized loss position at September 30, 2017 and December 31, 2016 , respectively. The Company views the decrease in value of all of the securities with unrealized losses at September 30, 2017 -- which was driven largely by changes in interest rates, spread widening, financial market illiquidity and/or market volatility from the date of acquisition -- as temporary. For fixed maturity securities, management does not have the intent to sell the securities and it is not more likely than not the Company will be required to sell the securities before the anticipated recovery of the amortized cost bases, and management expects to recover the entire amortized cost bases of the fixed maturity securities. For equity securities, the Company has the ability and intent to hold the securities for the recovery of cost and recovery of cost is expected within a reasonable period of time. ($ in thousands) 12 Months or Less More than 12 Months Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses September 30, 2017 Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 111,456 $ 2,213 $ 12,879 $ 858 $ 124,335 $ 3,071 Other 275,332 5,901 16,979 1,021 292,311 6,922 Municipal bonds 118,881 2,731 32,710 1,697 151,591 4,428 Foreign government bonds — — — — — — Corporate bonds 138,207 2,287 49,931 1,871 188,138 4,158 Other mortgage-backed securities 349,600 3,985 126,297 1,818 475,897 5,803 Total fixed maturity securities 993,476 17,117 238,796 7,265 1,232,272 24,382 Equity securities (1) 10,547 692 2,192 716 12,739 1,408 Combined totals $ 1,004,023 $ 17,809 $ 240,988 $ 7,981 $ 1,245,011 $ 25,790 Number of positions with a gross unrealized loss 393 77 470 Fair value as a percentage of total fixed maturity and equity securities fair value 12.9 % 3.1 % 16.0 % December 31, 2016 Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 186,439 $ 6,176 $ 3,235 $ 544 $ 189,674 $ 6,720 Other 219,372 10,120 — — 219,372 10,120 Municipal bonds 408,163 19,006 9,928 3,582 418,091 22,588 Foreign government bonds 24,182 297 — — 24,182 297 Corporate bonds 459,402 11,056 57,261 3,770 516,663 14,826 Other mortgage-backed securities 640,691 10,470 229,106 5,389 869,797 15,859 Total fixed maturity securities 1,938,249 57,125 299,530 13,285 2,237,779 70,410 Equity securities (1) 56,676 4,567 7,956 1,007 64,632 5,574 Combined totals $ 1,994,925 $ 61,692 $ 307,486 $ 14,292 $ 2,302,411 $ 75,984 Number of positions with a gross unrealized loss 629 102 731 Fair value as a percentage of total fixed maturity and equity securities fair value 26.3 % 4.0 % 30.3 % (1) Includes nonredeemable perpetual preferred stocks, common stocks and closed-end funds. Fixed maturity and equity securities with an investment grade rating represented 92% of the gross unrealized losses as of September 30, 2017 . With respect to fixed maturity securities involving securitized financial assets, the underlying collateral cash flows were stress tested to determine there was no adverse change in the present value of cash flows below the amortized cost basis. Credit Losses The following table summarizes the cumulative amounts related to the Company’s credit loss component of OTTI losses on fixed maturity securities held as of September 30, 2017 and 2016 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 OTTI losses were recognized in other comprehensive income: ($ in thousands) Nine Months Ended September 30, 2017 2016 Cumulative credit loss (1) Beginning of period $ 13,703 $ 7,844 New credit losses — 300 Increases to previously recognized credit losses 1,994 2,480 Gains related to securities sold or paid down during the period (2 ) — End of period $ 15,695 $ 10,624 (1) The cumulative credit loss amounts exclude OTTI 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. Expected Maturity of Fixed Maturity 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. ($ in thousands) Percent of Total Fair Value September 30, 2017 September 30, 2017 December 31, 2016 Fair Value Amortized Cost Estimated expected maturity: Due in 1 year or less 3.4 % 3.9 % $ 256,527 $ 250,803 Due after 1 year through 5 years 27.5 28.7 2,097,243 1,998,498 Due after 5 years through 10 years 33.3 35.2 2,540,303 2,431,895 Due after 10 years through 20 years 23.3 19.5 1,780,760 1,654,259 Due after 20 years 12.5 12.7 955,801 858,942 Total 100.0 % 100.0 % $ 7,630,634 $ 7,194,397 Average option-adjusted duration, in years 6.0 5.9 Sales of Fixed Maturity and Equity Securities Proceeds received from sales of fixed maturity 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: ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Fixed maturity securities Proceeds received $ 85,841 $ 94,706 $ 315,531 $ 351,739 Gross gains realized 2,293 2,966 8,862 13,824 Gross losses realized (181 ) (102 ) (1,558 ) (1,542 ) Equity securities Proceeds received $ 3,514 $ 4,479 $ 20,510 $ 17,101 Gross gains realized 477 790 3,227 1,960 Gross losses realized (293 ) (21 ) (721 ) (862 ) Net Unrealized Investment Gains and Losses on Fixed Maturity and Equity Securities Net unrealized investment gains and losses are computed as the difference between fair value and amortized cost for fixed maturity securities 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: ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net unrealized investment gains and losses on fixed maturity securities, net of tax Beginning of period $ 270,834 $ 371,456 $ 197,978 $ 198,714 Change in net unrealized investment gains and losses 10,133 20,827 83,547 188,912 Reclassification of net realized investment (gains) losses to net income 2,587 (11,072 ) 2,029 (6,415 ) End of period $ 283,554 $ 381,211 $ 283,554 $ 381,211 Net unrealized investment gains and losses on equity securities, net of tax Beginning of period $ 10,631 $ 8,183 $ 4,963 $ 2,649 Change in net unrealized investment gains and losses 1,933 (2,052 ) 7,905 4,846 Reclassification of net realized investment (gains) losses to net income (165 ) 2,211 (469 ) 847 End of period $ 12,399 $ 8,342 $ 12,399 $ 8,342 Offsetting of Assets and Liabilities The Company’s derivative instruments (call options) are subject to enforceable master netting arrangements. Collateral support agreements associated with each master netting arrangement provide that the Company will receive or pledge financial collateral in the event minimum thresholds are reached. The following table presents the instruments that were subject to a master netting arrangement for the Company. ($ in thousands) Gross Amounts Offset in the Net Amounts of Assets/ Liabilities Presented in the Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts Consolidated Balance Sheets Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount September 30, 2017 Asset derivatives: Free-standing derivatives $ 10,431 $ — $ 10,431 $ — $ 10,954 $ (523 ) December 31, 2016 Asset derivatives: Free-standing derivatives $ 8,694 $ — $ 8,694 $ — $ 8,824 $ (130 ) Deposits At September 30, 2017 and December 31, 2016 , fixed maturity securities with a fair value of $18,133 thousand and $18,119 thousand , respectively, were on deposit with governmental agencies as required by law in various states in which the insurance subsidiaries of HMEC conduct business. In addition, at September 30, 2017 and December 31, 2016 , fixed maturity securities with a fair value of $620,558 thousand and $620,489 thousand , respectively, were on deposit with the Federal Home Loan Bank of Chicago (“FHLB”) as collateral for amounts subject to funding agreements which were equal to $575,000 thousand

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	The Company is required under GAAP to disclose estimated fair values for certain financial and nonfinancial 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. Information regarding the three-level hierarchy presented below and the valuation methodologies utilized by the Company to estimate fair values at a point in time is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 , specifically in “Note 3 -- Fair Value of Financial Instruments”. 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. At September 30, 2017 , Level 3 invested assets comprised 3.3% of the Company’s total investment portfolio at fair value. ($ in thousands) Fair Value Measurements at Carrying Fair Reporting Date Using Amount Value Level 1 Level 2 Level 3 September 30, 2017 Financial Assets Investments Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 645,402 $ 645,402 $ — $ 642,110 $ 3,292 Other, including U.S. Treasury securities 671,020 671,020 13,484 657,536 — Municipal bonds 1,842,204 1,842,204 — 1,792,992 49,212 Foreign government bonds 100,177 100,177 — 100,177 — Corporate bonds 2,821,703 2,821,703 14,798 2,712,660 94,245 Other mortgage-backed securities 1,550,128 1,550,128 — 1,431,802 118,326 Total fixed maturity securities 7,630,634 7,630,634 28,282 7,337,277 265,075 Equity securities 159,275 159,275 103,552 55,717 6 Short-term investments 111,488 111,488 111,488 — — Other investments 21,944 21,944 — 21,944 — Totals $ 7,923,341 $ 7,923,341 $ 243,322 $ 7,414,938 $ 265,081 Financial Liabilities Investment contract and life policy reserves, embedded derivatives $ 390 $ 390 $ — $ 390 $ — Other policyholder funds, embedded derivatives 72,986 72,986 — — 72,986 December 31, 2016 Financial Assets Investments Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 614,891 $ 614,891 $ — $ 611,476 $ 3,415 Other, including U.S. Treasury securities 467,143 467,143 13,631 453,512 — Municipal bonds 1,769,397 1,769,397 — 1,722,900 46,497 Foreign government bonds 98,669 98,669 — 98,669 — Corporate bonds 2,810,221 2,810,221 13,532 2,736,498 60,191 Other mortgage-backed securities 1,696,387 1,696,387 — 1,595,143 101,244 Total fixed maturity securities 7,456,708 7,456,708 27,163 7,218,198 211,347 Equity securities 141,649 141,649 98,632 43,011 6 Short-term investments 44,918 44,918 44,167 — 751 Other investments 20,194 20,194 — 20,194 — Totals $ 7,663,469 $ 7,663,469 $ 169,962 $ 7,281,403 $ 212,104 Financial Liabilities Investment contract and life policy reserves, embedded derivatives $ 158 $ 158 $ — $ 158 $ — Other policyholder funds, embedded derivatives 59,393 59,393 — — 59,393 During the nine month period ended September 30, 2017 , an equity security was transferred into Level 1 from Level 2 as a result of increased liquidity in the market and a sustained increase in the market activity for this asset. The following table presents reconciliations for the periods indicated for all Level 3 assets and liabilities measured at fair value on a recurring basis. ($ in thousands) Financial Assets Financial Liabilities(1) Municipal Bonds Corporate Bonds Mortgage- Backed Securities (2) Total Fixed Maturity Securities Equity Securities Short-term Investments Total Beginning balance, July 1, 2017 $ 49,123 $ 77,052 $ 120,324 $ 246,499 $ 6 $ — $ 246,505 $ 67,995 Transfers into Level 3 (3) — 23,501 11,961 35,462 — — 35,462 — Transfers out of Level 3 (3) — 1 (881 ) (880 ) — — (880 ) — Total gains or losses Net realized investment gains (losses) included in net income related to financial assets — (1 ) (160 ) (161 ) — — (161 ) — Net realized (gains) losses included in net income related to financial liabilities — — — — — — — 2,587 Net unrealized investment gains (losses) included in other comprehensive income 382 (192 ) (377 ) (187 ) — — (187 ) — Purchases — — — — — — — — Issuances — — — — — — — 3,752 Sales — (1,999 ) — (1,999 ) — — (1,999 ) — Settlements — — — — — — — — Paydowns, maturities and distributions (293 ) (4,117 ) (9,249 ) (13,659 ) — — (13,659 ) (1,348 ) Ending balance, September 30, 2017 $ 49,212 $ 94,245 $ 121,618 $ 265,075 $ 6 $ — $ 265,081 $ 72,986 Beginning balance, January 1, 2017 $ 46,497 $ 60,191 $ 104,659 $ 211,347 $ 6 $ 751 $ 212,104 $ 59,393 Transfers into Level 3 (3) 5,214 55,420 36,482 97,116 — — 97,116 — Transfers out of Level 3 (3) (5,557 ) (11,962 ) (881 ) (18,400 ) — (751 ) (19,151 ) — Total gains or losses Net realized investment gains (losses) included in net income related to financial assets — (1 ) (1,874 ) (1,875 ) — — (1,875 ) — Net realized (gains) losses included in net income related to financial liabilities — — — — — — — 6,133 Net unrealized investment gains (losses) included in other comprehensive income 3,540 263 1,945 5,748 — — 5,748 — Purchases — — — — — — — — Issuances — — — — — — — 10,538 Sales — (1,999 ) — (1,999 ) — — (1,999 ) — Settlements — — — — — — — — Paydowns, maturities and distributions (482 ) (7,667 ) (18,713 ) (26,862 ) — — (26,862 ) (3,078 ) Ending balance, September 30, 2017 $ 49,212 $ 94,245 $ 121,618 $ 265,075 $ 6 $ — $ 265,081 $ 72,986 (1) Represents embedded derivatives, all related to the Company’s FIA products, reported in Other policyholder funds in the Company’s Consolidated Balance Sheets. (2) Includes U.S. Government and federally sponsored agency obligations for mortgage-backed securities and other mortgage-backed securities. (3) Transfers into and out of Level 3 during the three and nine month periods ended September 30, 2017 were attributable to changes in the availability of observable market information for individual fixed maturity securities and short-term investments. The Company’s policy is to recognize transfers into and transfers out of the levels as having occurred at the end of the reporting period in which the transfers were determined. ($ in thousands) Financial Assets Financial Liabilities(1) Municipal Bonds Corporate Bonds Mortgage- Backed Securities (2) Total Fixed Maturity Securities Equity Securities Short-term Investments Total Beginning balance, July 1, 2016 $ 47,647 $ 73,408 $ 96,581 $ 217,636 $ 6 $ — $ 217,642 $ 47,706 Transfers into Level 3 (3) — 10,375 7,655 18,030 — — 18,030 — Transfers out of Level 3 (3) — (5,967 ) (788 ) (6,755 ) — — (6,755 ) — Total gains or losses Net realized investment gains (losses) included in net income related to financial assets — 1 (56 ) (55 ) — — (55 ) — Net realized (gains) losses included in net income related to financial liabilities — — — — — — — 68 Net unrealized investment gains (losses) included in other comprehensive income (2,361 ) 1,292 3,951 2,882 — — 2,882 — Purchases — — — — — — — — Issuances — — — — — — — 6,710 Sales — — — — — — — — Settlements — — — — — — — — Paydowns, maturities and distributions (120 ) (1,488 ) (5,194 ) (6,802 ) — — (6,802 ) 695 Ending balance, September 30, 2016 $ 45,166 $ 77,621 $ 102,149 $ 224,936 $ 6 $ — $ 224,942 $ 55,179 Beginning balance, January 1, 2016 $ 30,379 $ 67,575 $ 75,466 $ 173,420 $ 6 $ — $ 173,426 $ 39,021 Transfers into Level 3 (3) 14,751 21,451 32,281 68,483 — — 68,483 — Transfers out of Level 3 (3) — (5,967 ) (788 ) (6,755 ) — — (6,755 ) — Total gains or losses Net realized investment gains (losses) included in net income related to financial assets — (656 ) (56 ) (712 ) — — (712 ) — Net realized (gains) losses included in net income related to financial liabilities — — — — — — — 2,066 Net unrealized investment gains (losses) included in other comprehensive income 420 3,073 4,173 7,666 — — 7,666 — Purchases — — — — — — — — Issuances — — — — — — — 15,194 Sales — — — — — — — — Settlements — — — — — — — — Paydowns, maturities and distributions (384 ) (7,855 ) (8,927 ) (17,166 ) — — (17,166 ) (1,102 ) Ending balance, September 30, 2016 $ 45,166 $ 77,621 $ 102,149 $ 224,936 $ 6 $ — $ 224,942 $ 55,179 (1) Represents embedded derivatives, all related to the Company’s FIA products, reported in Other policyholder funds in the Company’s Consolidated Balance Sheets. (2) Includes U.S. Government and federally sponsored agency obligations for mortgage-backed securities and other mortgage-backed securities. (3) Transfers into and out of Level 3 during the three and nine month periods ended September 30, 2016 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 having occurred at the end of the reporting period in which the transfers were determined. At September 30, 2017 , the Company impaired two Level 3 securities for a $1,874 thousand realized loss. At September 30, 2016 , there were no net realized investment gains or losses included in earnings that were attributable to changes in the fair value of Level 3 assets still held. For the three and nine month periods ended September 30, 2017 , net realized losses of $2,587 thousand and $6,133 thousand , respectively, were included in earnings that were attributable to the changes in the fair value of Level 3 liabilities (embedded derivatives) still held; for the three and nine month periods ended September 30, 2016 , the respective loss amounts were $68 thousand and $2,066 thousand . The valuation techniques and significant unobservable inputs used in the fair value measurement for financial assets classified as Level 3 are subject to the control processes as described in “Note 3 -- Fair Value of Financial Instruments -- Investments” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Generally, valuation techniques for fixed maturity securities include spread pricing, matrix pricing and discounted cash flow methodologies; include inputs such as quoted prices for identical or similar securities that are less liquid; and are 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 those used for fixed maturity securities. The sensitivity of the estimated fair values to changes in the significant unobservable inputs for fixed maturity 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 Not Carried at Fair Value; Disclosure Required 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. ($ in thousands) Fair Value Measurements at Carrying Fair Reporting Date Using Amount Value Level 1 Level 2 Level 3 September 30, 2017 Financial Assets Investments Other investments $ 154,630 $ 159,253 $ — $ — $ 159,253 Financial Liabilities Investment contract reserves 4,428,989 4,338,318 — — 4,338,318 Life policy reserves, account values on life contracts 81,520 86,906 — — 86,906 Other policyholder funds 644,383 644,383 — 575,579 68,804 Long-term debt 247,403 264,781 264,781 — — December 31, 2016 Financial Assets Investments Other investments $ 151,965 $ 156,536 $ — $ — $ 156,536 Financial Liabilities Investment contract reserves 4,360,456 4,280,528 — — 4,280,528 Life policy reserves, account values on life contracts 79,591 85,066 — — 85,066 Other policyholder funds 649,557 649,557 — 575,253 74,304 Long-term debt 247,209 248,191 248,191 — —

Derivative Instruments

Derivative Instruments	9 Months Ended
	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	The Company offers FIA products, which are deferred fixed annuities that guarantee the return of principal to the contractholder and credit interest based on a percentage of the gain in a specified market index, and IUL products, which also credit interest based on a percentage of the gain in a specified market index. When deposits are received for FIA and IUL contracts, a portion is used to purchase derivatives consisting of OTC call options on the applicable market indices to fund the index credits due to FIA and IUL policyholders. For the Company, substantially all of such call options are one-year options purchased to match the funding requirements of the underlying contracts. The call options are carried at fair value with changes in fair value included in Net realized investment gains and losses, a component of Revenues, in the Consolidated Statements of Operations. The change in fair value of the derivatives includes the gains or losses recognized at the expiration of the option term or early termination and the changes in fair value for open positions. Call options are not purchased to fund the index liabilities which may arise after the next deposit anniversary date. On the respective anniversary dates of the indexed deposits, the index used to compute the annual index credit is reset and new one-year call options are purchased to fund the next annual index credit. The cost of these purchases is managed through the terms of the FIA and IUL contracts, which permit changes to index return caps, participation rates and/or asset fees, subject to guaranteed minimums on each contract’s anniversary date. By adjusting the index return caps, participation rates or asset fees, crediting rates generally can be managed except in cases where the contractual features would prevent further modifications. The future annual index credits on FIA contracts are treated as a “series of embedded derivatives” over the expected life of the applicable contract with a corresponding reserve recorded. For the IUL contracts, the embedded derivative represents a single year liability for the index return. The Company carries all derivative instruments as assets or liabilities in the Consolidated Balance Sheets at fair value. The Company elected to not use hedge accounting for derivative transactions related to the FIA and IUL products. As a result, the Company records the purchased call options and the embedded derivatives related to the provision of a contingent return at fair value, with changes in the fair value of the derivatives recognized immediately as Net realized investment gains (losses) in the Consolidated Statements of Operations. The fair values of derivative instruments, including derivative instruments embedded in FIA and IUL contracts, presented in the Consolidated Balance Sheets were as follows: ($ in thousands) September 30, 2017 December 31, 2016 Assets Derivative instruments, included in Short-term and other investments $ 10,431 $ 8,694 Liabilities FIA - embedded derivatives, included in Other policyholder funds $ 72,986 $ 59,393 IUL - embedded derivatives, included in Investment contract and life policy reserves 390 158 In general, the change in the fair value of the embedded derivatives related to FIA contracts will not correspond to the change in fair value of the purchased call options because the purchased call options are one-year options while the options valued in those embedded derivatives represent the rights of the policyholder to receive index credits over the entire period the FIA contracts are expected to be in force, which typically exceeds 10 years. The changes in fair value of derivatives included in the Consolidated Statements of Operations were as follows: ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Change in fair value of derivatives (1): Revenues Net realized investment gains $ 2,943 $ 562 $ 7,109 $ 422 Change in fair value of embedded derivatives: Revenues Net realized investment losses $ (2,702 ) $ (76 ) $ (6,363 ) $ (2,077 ) (1) Includes the gains or losses recognized at the expiration of the option term or early termination and the changes in fair value for open options. The Company’s strategy attempts to mitigate potential risk of loss under these agreements through a regular monitoring process, which evaluates the program’s effectiveness. The Company is exposed to risk of loss in the event of nonperformance by the counterparties and, accordingly, option contracts are purchased from multiple counterparties, which are evaluated for creditworthiness prior to purchase of the contracts. All of these options have been purchased from nationally recognized financial institutions with a Standard and Poor’s Financial Services LLC ("S&P") long-term credit rating of “BBB+” or higher at the time of purchase and the maximum credit exposure to any single counterparty is subject to concentration limits. The Company also obtains credit support agreements that allow it to request the counterparty to provide collateral when the fair value of the exposure to the counterparty exceeds specified amounts. The notional amount and fair value of call options by counterparty and each counterparty’s long-term credit ratings were as follows: ($ in thousands) September 30, 2017 December 31, 2016 Credit Rating Notional Fair Notional Fair Counterparty S&P Amount Value Amount Value Bank of America, N.A. A+ $ 74,400 $ 2,466 $ 38,500 $ 1,934 Barclays Bank PLC A 68,900 3,017 66,800 1,543 Citigroup Inc. BBB+ — — — — Credit Suisse International A 29,100 2,041 65,200 4,281 Societe Generale A 68,900 2,907 15,600 936 Total $ 241,300 $ 10,431 $ 186,100 $ 8,694 As of September 30, 2017 and December 31, 2016 , the Company held $10,954 thousand and $8,824 thousand , respectively, of cash received from counterparties for derivative collateral, which is included in Other liabilities in the Consolidated Balance Sheets. This derivative collateral limits the Company’s maximum amount of economic loss due to credit risk that would be incurred if parties to the call options failed completely to perform according to the terms of the contracts to $250 thousand

Property and Casualty Unpaid Cl

Property and Casualty Unpaid Claims and Claim Expenses	9 Months Ended
	Sep. 30, 2017
Insurance Loss Reserves [Abstract]
Property and Casualty Unpaid Claims and Claim Expenses	The following table is a summary reconciliation of the beginning and ending Property and Casualty unpaid claims and claim expense reserves for the periods indicated. The table presents reserves on both gross and net (after reinsurance) bases. The total net Property and Casualty insurance claims and claim expense incurred amounts are reflected in the Consolidated Statements of Operations. The end of the period gross reserve (before reinsurance) balances and the reinsurance recoverable balances are reflected on a gross basis in the Consolidated Balance Sheets. ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Property and Casualty segment Beginning Gross reserves (1) $ 329,831 $ 320,961 $ 307,757 $ 301,569 Less: reinsurance recoverables 58,897 60,499 61,199 50,332 Net reserves, beginning of period (2) 270,934 260,462 246,558 251,237 Incurred claims and claim expenses: Claims occurring in the current period 115,393 116,709 386,945 351,270 Decrease in estimated reserves for claims occurring in prior periods (3) (500 ) (700 ) (2,100 ) (4,300 ) Total claims and claim expenses incurred (4) 114,893 116,009 384,845 346,970 Claims and claim expense payments for claims occurring during: Current period 97,188 99,832 245,213 228,462 Prior periods 28,054 27,976 125,605 121,082 Total claims and claim expense payments 125,242 127,808 370,818 349,544 Net reserves, end of period (2) 260,585 248,663 260,585 248,663 Plus: reinsurance recoverables 57,302 61,893 57,302 61,893 Ending Gross reserves (1) $ 317,887 $ 310,556 $ 317,887 $ 310,556 (1) Unpaid claims and claim expenses as reported in the Consolidated Balance Sheets also include reserves for the Life and Retirement segments of $23,897 thousand and $22,231 thousand as of September 30, 2017 and 2016 , respectively, in addition to Property and Casualty segment reserves. (2) Reserves net of anticipated reinsurance recoverables. (3) Shows the amounts by which the Company decreased its reserves in each of the periods indicated for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs. (4) Benefits, claims and settlement expenses as reported in the Consolidated Statements of Operations also include amounts for the Life and Retirement segments of $20,002 thousand and $60,025 thousand for the three and nine month periods ended September 30, 2017 , respectively, in addition to the Property and Casualty segment amounts. Benefits, claims and settlement expenses for the Life and Retirement segments for the three and nine month periods ended September 30, 2016 were $19,701 thousand and $56,661 thousand , respectively. Net favorable development of total reserves for Property and Casualty claims occurring in prior years was $2,100 thousand and $4,300 thousand for the nine month periods ended September 30, 2017 and 2016 , respectively. The favorable development for both of the nine month periods ended September 30, 2017 and 2016 was predominantly the result of favorable severity trends in homeowners loss emergence. This favorable development was for accident years 2015 and prior for the nine month period ended September 30, 2017 and accident years 2014 and prior for the nine month period ended September 30, 2016

Debt

Debt	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Debt	Indebtedness outstanding was as follows: ($ in thousands) September 30, 2017 December 31, 2016 Short-term debt: Bank Credit Facility, expires July 30, 2019 $ — $ — Long-term debt: 4.50% Senior Notes, due December 1, 2025. Aggregate principal amount of $250,000 thousand less unaccrued discount of $561 thousand and $603 thousand (4.5% imputed rate) and unamortized debt issuance costs of $2,036 thousand and $2,188 thousand 247,403 247,209 The Credit Agreement with certain financial institutions (“Bank Credit Facility”) and 4.50% Senior Notes due 2025 (“Senior Notes due 2025”) are described in “Notes to Consolidated Financial Statements -- Note 7 -- Debt” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2016

Reinsurance

Reinsurance	9 Months Ended
	Sep. 30, 2017
Insurance [Abstract]
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: ($ in thousands) Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Three months ended September 30, 2017 Premiums written and contract deposits $ 322,428 $ 5,189 $ 1,116 $ 318,355 Premiums and contract charges earned 202,988 5,216 1,163 198,935 Benefits, claims and settlement expenses 135,508 1,831 1,218 134,895 Three months ended September 30, 2016 Premiums written and contract deposits $ 356,155 $ 5,555 $ 934 $ 351,534 Premiums and contract charges earned 195,654 5,584 980 191,050 Benefits, claims and settlement expenses 139,114 4,642 1,238 135,710 Nine months ended September 30, 2017 Premiums written and contract deposits $ 940,063 $ 16,342 $ 2,980 $ 926,701 Premiums and contract charges earned 603,794 16,415 2,996 590,375 Benefits, claims and settlement expenses 450,997 8,899 2,772 444,870 Nine months ended September 30, 2016 Premiums written and contract deposits $ 960,945 $ 17,244 $ 2,881 $ 946,582 Premiums and contract charges earned 579,283 17,305 2,882 564,860 Benefits, claims and settlement expenses 422,352 21,748 3,027 403,631

Commitments

Commitments	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments	Investment Commitments From time to time, the Company has outstanding commitments to purchase investments and/or commitments to lend funds under bridge loans. Unfunded commitments to purchase investments were $111,265 thousand and $135,054 thousand at September 30, 2017 and December 31, 2016

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Segment Information	The Company conducts and manages its business through four segments. The three operating segments, representing the major lines of business, are: Property and Casualty, primarily personal lines automobile and homeowners insurance products; Retirement, primarily tax-qualified fixed and variable annuities; and Life, life insurance. The Company does not allocate the impact of corporate-level transactions to these operating 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, net 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: ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Insurance premiums and contract charges earned Property and Casualty $ 163,209 $ 155,727 $ 481,987 $ 461,520 Retirement 7,393 6,448 20,753 18,614 Life 28,333 28,875 87,635 84,726 Total $ 198,935 $ 191,050 $ 590,375 $ 564,860 Net investment income Property and Casualty $ 9,167 $ 10,018 $ 26,457 $ 28,997 Retirement 64,340 66,174 192,921 186,950 Life 18,999 18,852 56,215 55,338 Corporate and Other 17 15 47 44 Intersegment eliminations (203 ) (212 ) (615 ) (644 ) Total $ 92,320 $ 94,847 $ 275,025 $ 270,685 Net income (loss) Property and Casualty $ 13,407 $ 6,715 $ 2,186 $ 16,047 Retirement 13,603 15,732 36,933 39,348 Life 4,788 4,583 14,283 13,072 Corporate and Other (5,247 ) (107 ) (9,272 ) (4,525 ) Total $ 26,551 $ 26,923 $ 44,130 $ 63,942 ($ in thousands) September 30, 2017 December 31, 2016 Assets Property and Casualty $ 1,156,959 $ 1,110,958 Retirement 7,793,727 7,449,777 Life 1,988,767 1,912,771 Corporate and Other 135,876 140,104 Intersegment eliminations (30,981 ) (36,786 ) Total $ 11,044,348 $ 10,576,824

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
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 disclosures 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, 2017 , the consolidated results of operations and comprehensive income for the three and nine month periods ended September 30, 2017 and 2016 , and the consolidated changes in shareholders’ equity and cash flows for the nine month periods ended September 30, 2017 and 2016 . 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 of 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. 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, 2016 . The results of operations for the three and nine month periods ended September 30, 2017 are not necessarily indicative of the results to be expected for the full year. The Company reclassified the presentation of certain prior period information to conform to the 2017
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss)
Adopted and Pending Accounting Standards	Adopted Accounting Standards Employee Share-based Payment Accounting Effective January 1, 2017, the Company adopted new accounting guidance for employee share-based payments which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The recognition and classification of the excess tax benefit provisions were applied prospectively in the results of operations. This adoption resulted in additional excess tax benefits of $2,864 thousand which reduced the current provision for income taxes in the results of operations. The statutory tax withholding classification, which are cash payments made to taxing authorities for withheld taxes funded through tendered shares, were applied retrospectively and the Company reclassified the statutory tax withholding requirements in the statement of cash flows from Other in operating activities to Withholding tax payments on RSUs tendered in financing activities. This statutory withholding reclassification resulted in $2,745 thousand and $3,321 thousand being included in financing activities for the nine month periods ended September 30, 2017 and 2016 , respectively. There were no cumulative effect adjustments upon adoption of the new accounting guidance. Pending Accounting Standards Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued accounting guidance to provide a single comprehensive model in accounting for revenue arising from contracts with customers. The guidance applies to all contracts with customers; however, insurance contracts are specifically excluded from this updated guidance. The guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those years. Early adoption is permitted only for annual reporting periods beginning after December 15, 2016. The Company plans to adopt the guidance as of January 1, 2018. Insurance contract revenue continues to fall under the scope of ASC 944, Financial Services - Insurance, and ASC 605, Revenue Recognition. The Company performed an evaluation of the non-insurance contract revenue that would be subject to ASC 606, Revenue from Contracts with Customers, and concluded that there is not a material impact to the consolidated financial statements upon adoption on January 1, 2018. Recognition and Measurement of Financial Assets and Liabilities In January 2016, the FASB issued accounting guidance to improve certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. Among other things, the guidance revises the accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The Company’s results of operations will be impacted as changes in fair value of equity securities will be reported in net income instead of reported in other comprehensive income. The effective date of the guidance is for interim and annual reporting periods beginning after December 15, 2017. The guidance has not yet been adopted. Had the Company adopted the guidance on September 30, 2017, $15,718 thousand of after-tax unrealized gains on equity securities would have been reclassified from accumulated other comprehensive income to retained earnings. The actual amount reclassified upon adoption will vary depending on the future changes in fair value of the Company's equity portfolio. Statement of Cash Flows -- Classification In August 2016, the FASB issued guidance to reduce diversity in practice in the statement of cash flows between operating, investing and financing activities related to the classification of cash receipts and cash payments for eight specific issues. The FASB acknowledged that current GAAP either is unclear or does not include specific guidance on these eight cash flow classification issues: (1) debt prepayment or extinguishment costs; (2) settlement of zero-coupon bonds (pertains to issuers); (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims (pertains to claimants); (5) proceeds from the settlement of corporate-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions (pertains to transferors) and (8) separately identifiable cash flows and application of the predominance principle. For public business entities, the guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those years, using a retrospective approach. The guidance allows prospective adoption for individual issues if it is impracticable to apply the amendments retrospectively for those issues. Early application is permitted. Management believes the adoption of this accounting guidance will not have a material effect on the classifications in the Company’s consolidated statement of cash flows. The adoption of this accounting guidance will not have any effect on the results of operations or financial position of the Company. Accounting for Leases In February 2016, the FASB issued accounting and disclosure guidance to improve financial reporting and comparability among organizations about leasing transactions. Under the new guidance, for leases with lease terms of more than 12 months, a lessee will be required to recognize assets and liabilities on the balance sheet for the rights and obligations created by those leases. Consistent with current accounting guidance, the recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or an operating lease. However, while current guidance requires only capital leases to be recognized on the balance sheet, the new guidance will require both operating and capital leases to be recognized on the balance sheet. In transition to the new guidance, companies are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those years. Early application is permitted. Management is evaluating the impact this guidance will have on the results of operations and financial position of the Company. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued guidance to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments, including reinsurance receivables, held by companies. The new guidance replaces the incurred loss impairment methodology and requires an organization to measure and recognize all current expected credit losses (“CECL”) for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Companies will need to utilize forward-looking information to better inform their credit loss estimates. Companies will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. Credit losses related to available for sale debt securities -- which represent over 90% of Horace Mann’s total investment portfolio -- will be recorded through an allowance for credit losses with this allowance having a limit equal to the amount by which fair value is below amortized cost. The guidance also requires enhanced qualitative and quantitative disclosures to provide additional information about the amounts recorded in the financial statements. For public business entities that are SEC filers, the guidance is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those years, using a modified-retrospective approach. Early application is permitted for annual reporting periods, and interim periods within those years, beginning after December 15, 2018. Management is evaluating the impact this guidance will have on the results of operations and financial position of the Company. Simplifying the Test for Goodwill Impairment

Basis of Presentation (Tables)

Basis of Presentation (Tables)	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Investment Contract And Life Policy Reserves	This table summarizes the Company’s investment contract and life policy reserves. ($ in thousands) September 30, 2017 December 31, 2016 Investment contract reserves $ 4,428,989 $ 4,360,456 Life policy reserves 1,111,056 1,087,513 Total $ 5,540,045 $ 5,447,969
Accumulated Other Comprehensive Income (Loss)	The following tables reconcile these components. ($ in thousands) Net Unrealized Investment Gains and Losses on Fixed Maturity and Equity Securities (1)(2) Benefit Plans (1) Total (1) Beginning balance, July 1, 2017 $ 243,510 $ (11,817 ) $ 231,693 Other comprehensive income (loss) before reclassifications 9,786 — 9,786 Amounts reclassified from accumulated other comprehensive income (loss) 2,422 — 2,422 Net current period other comprehensive income 12,208 — 12,208 Ending balance, September 30, 2017 $ 255,718 $ (11,817 ) $ 243,901 Beginning balance, January 1, 2017 $ 175,738 $ (11,817 ) $ 163,921 Other comprehensive income (loss) before reclassifications 78,419 — 78,419 Amounts reclassified from accumulated other comprehensive income (loss) 1,561 — 1,561 Net current period other comprehensive income 79,980 — 79,980 Ending balance, September 30, 2017 $ 255,718 $ (11,817 ) $ 243,901 (1) All amounts are net of tax. (2) The pretax amounts reclassified from accumulated other comprehensive income (loss), $(3,726) thousand and $(2,401) thousand , are included in net realized investment gains and losses and the related income tax expense, $(1,304) thousand and $(840) thousand , are included in income tax expense in the Consolidated Statements of Operations for the three and nine month periods ended September 30, 2017 , respectively. ($ in thousands) Net Unrealized Investment Gains and Losses on Fixed Maturity and Equity Securities (1)(2) Benefit Plans (1) Total (1) Beginning balance, July 1, 2016 $ 329,653 $ (11,794 ) $ 317,859 Other comprehensive income (loss) before reclassifications 9,912 — 9,912 Amounts reclassified from accumulated other comprehensive income (loss) (2,274 ) — (2,274 ) Net current period other comprehensive income 7,638 — 7,638 Ending balance, September 30, 2016 $ 337,291 $ (11,794 ) $ 325,497 Beginning balance, January 1, 2016 $ 175,167 $ (11,794 ) $ 163,373 Other comprehensive income (loss) before reclassifications 167,692 — 167,692 Amounts reclassified from accumulated other comprehensive income (loss) (5,568 ) — (5,568 ) Net current period other comprehensive income 162,124 — 162,124 Ending balance, September 30, 2016 $ 337,291 $ (11,794 ) $ 325,497 (1) All amounts are net of tax. (2) The pretax amounts reclassified from accumulated other comprehensive income (loss), $3,499 thousand and $8,566 thousand , are included in net realized investment gains and losses and the related income tax expense, $1,225 thousand and $2,998 thousand , are included in income tax expense in the Consolidated Statements of Operations for the three and nine month periods ended September 30, 2016

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2017
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 (“AOCI”) of all fixed maturity and equity securities in the portfolio were as follows: ($ in thousands) Amortized Cost or Cost Unrealized Investment Gains Unrealized Investment Losses Fair Value OTTI in AOCI (1) September 30, 2017 Fixed maturity securities U.S. Government and federally sponsored agency obligations (2): Mortgage-backed securities $ 613,761 $ 34,712 $ 3,071 $ 645,402 $ — Other, including U.S. Treasury securities 653,237 24,705 6,922 671,020 — Municipal bonds 1,669,273 177,359 4,428 1,842,204 — Foreign government bonds 93,761 6,416 — 100,177 — Corporate bonds 2,635,313 190,548 4,158 2,821,703 — Other mortgage-backed securities 1,529,052 26,879 5,803 1,550,128 1,335 Totals $ 7,194,397 $ 460,619 $ 24,382 $ 7,630,634 $ 1,335 Equity securities (3) $ 140,200 $ 20,483 $ 1,408 $ 159,275 $ — December 31, 2016 Fixed maturity securities U.S. Government and federally sponsored agency obligations (2): Mortgage-backed securities $ 587,355 $ 34,256 $ 6,720 $ 614,891 $ — Other, including U.S. Treasury securities 458,745 18,518 10,120 467,143 — Municipal bonds 1,648,252 143,733 22,588 1,769,397 — Foreign government bonds 93,864 5,102 297 98,669 — Corporate bonds 2,672,818 152,229 14,826 2,810,221 — Other mortgage-backed securities 1,691,093 21,153 15,859 1,696,387 1,618 Totals $ 7,152,127 $ 374,991 $ 70,410 $ 7,456,708 $ 1,618 Equity securities (3) $ 134,013 $ 13,210 $ 5,574 $ 141,649 $ — (1) Related to securities for which an unrealized loss was bifurcated to distinguish the credit-related portion and the portion driven by other market factors. Represents the amount of OTTI losses in AOCI which was not included in earnings; amounts also include net unrealized investment gains and losses on such impaired securities relating to changes in the fair value of those securities subsequent to the impairment measurement date. (2) Fair value includes securities issued by Federal National Mortgage Association (“FNMA”) of $332,057 thousand and $272,668 thousand ; Federal Home Loan Mortgage Corporation (“FHLMC”) of $373,676 thousand and $378,683 thousand ; and Government National Mortgage Association (“GNMA”) of $109,873 thousand and $115,627 thousand as of September 30, 2017 and December 31, 2016 , respectively. (3)
Summary of fair value and gross unrealized losses of fixed maturity securities and equity securities in an unrealized loss position	For equity securities, the Company has the ability and intent to hold the securities for the recovery of cost and recovery of cost is expected within a reasonable period of time. ($ in thousands) 12 Months or Less More than 12 Months Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses September 30, 2017 Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 111,456 $ 2,213 $ 12,879 $ 858 $ 124,335 $ 3,071 Other 275,332 5,901 16,979 1,021 292,311 6,922 Municipal bonds 118,881 2,731 32,710 1,697 151,591 4,428 Foreign government bonds — — — — — — Corporate bonds 138,207 2,287 49,931 1,871 188,138 4,158 Other mortgage-backed securities 349,600 3,985 126,297 1,818 475,897 5,803 Total fixed maturity securities 993,476 17,117 238,796 7,265 1,232,272 24,382 Equity securities (1) 10,547 692 2,192 716 12,739 1,408 Combined totals $ 1,004,023 $ 17,809 $ 240,988 $ 7,981 $ 1,245,011 $ 25,790 Number of positions with a gross unrealized loss 393 77 470 Fair value as a percentage of total fixed maturity and equity securities fair value 12.9 % 3.1 % 16.0 % December 31, 2016 Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 186,439 $ 6,176 $ 3,235 $ 544 $ 189,674 $ 6,720 Other 219,372 10,120 — — 219,372 10,120 Municipal bonds 408,163 19,006 9,928 3,582 418,091 22,588 Foreign government bonds 24,182 297 — — 24,182 297 Corporate bonds 459,402 11,056 57,261 3,770 516,663 14,826 Other mortgage-backed securities 640,691 10,470 229,106 5,389 869,797 15,859 Total fixed maturity securities 1,938,249 57,125 299,530 13,285 2,237,779 70,410 Equity securities (1) 56,676 4,567 7,956 1,007 64,632 5,574 Combined totals $ 1,994,925 $ 61,692 $ 307,486 $ 14,292 $ 2,302,411 $ 75,984 Number of positions with a gross unrealized loss 629 102 731 Fair value as a percentage of total fixed maturity and equity securities fair value 26.3 % 4.0 % 30.3 % (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 OTTI losses on fixed maturity securities held as of September 30, 2017 and 2016 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 OTTI losses were recognized in other comprehensive income: ($ in thousands) Nine Months Ended September 30, 2017 2016 Cumulative credit loss (1) Beginning of period $ 13,703 $ 7,844 New credit losses — 300 Increases to previously recognized credit losses 1,994 2,480 Gains related to securities sold or paid down during the period (2 ) — End of period $ 15,695 $ 10,624 (1)
Distribution of the Company's fixed maturity portfolio by estimated expected maturity	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. ($ in thousands) Percent of Total Fair Value September 30, 2017 September 30, 2017 December 31, 2016 Fair Value Amortized Cost Estimated expected maturity: Due in 1 year or less 3.4 % 3.9 % $ 256,527 $ 250,803 Due after 1 year through 5 years 27.5 28.7 2,097,243 1,998,498 Due after 5 years through 10 years 33.3 35.2 2,540,303 2,431,895 Due after 10 years through 20 years 23.3 19.5 1,780,760 1,654,259 Due after 20 years 12.5 12.7 955,801 858,942 Total 100.0 % 100.0 % $ 7,630,634 $ 7,194,397 Average option-adjusted duration, in years 6.0 5.9
Proceeds received from sales of fixed maturities and equity securities	Proceeds received from sales of fixed maturity 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: ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Fixed maturity securities Proceeds received $ 85,841 $ 94,706 $ 315,531 $ 351,739 Gross gains realized 2,293 2,966 8,862 13,824 Gross losses realized (181 ) (102 ) (1,558 ) (1,542 ) Equity securities Proceeds received $ 3,514 $ 4,479 $ 20,510 $ 17,101 Gross gains realized 477 790 3,227 1,960 Gross losses realized (293 ) (21 ) (721 ) (862 )
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: ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net unrealized investment gains and losses on fixed maturity securities, net of tax Beginning of period $ 270,834 $ 371,456 $ 197,978 $ 198,714 Change in net unrealized investment gains and losses 10,133 20,827 83,547 188,912 Reclassification of net realized investment (gains) losses to net income 2,587 (11,072 ) 2,029 (6,415 ) End of period $ 283,554 $ 381,211 $ 283,554 $ 381,211 Net unrealized investment gains and losses on equity securities, net of tax Beginning of period $ 10,631 $ 8,183 $ 4,963 $ 2,649 Change in net unrealized investment gains and losses 1,933 (2,052 ) 7,905 4,846 Reclassification of net realized investment (gains) losses to net income (165 ) 2,211 (469 ) 847 End of period $ 12,399 $ 8,342 $ 12,399 $ 8,342
Offsetting assets and liability	The following table presents the instruments that were subject to a master netting arrangement for the Company. ($ in thousands) Gross Amounts Offset in the Net Amounts of Assets/ Liabilities Presented in the Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts Consolidated Balance Sheets Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount September 30, 2017 Asset derivatives: Free-standing derivatives $ 10,431 $ — $ 10,431 $ — $ 10,954 $ (523 ) December 31, 2016 Asset derivatives: Free-standing derivatives $ 8,694 $ — $ 8,694 $ — $ 8,824 $ (130 )

Fair Value of Financial Instr21

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2017
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. At September 30, 2017 , Level 3 invested assets comprised 3.3% of the Company’s total investment portfolio at fair value. ($ in thousands) Fair Value Measurements at Carrying Fair Reporting Date Using Amount Value Level 1 Level 2 Level 3 September 30, 2017 Financial Assets Investments Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 645,402 $ 645,402 $ — $ 642,110 $ 3,292 Other, including U.S. Treasury securities 671,020 671,020 13,484 657,536 — Municipal bonds 1,842,204 1,842,204 — 1,792,992 49,212 Foreign government bonds 100,177 100,177 — 100,177 — Corporate bonds 2,821,703 2,821,703 14,798 2,712,660 94,245 Other mortgage-backed securities 1,550,128 1,550,128 — 1,431,802 118,326 Total fixed maturity securities 7,630,634 7,630,634 28,282 7,337,277 265,075 Equity securities 159,275 159,275 103,552 55,717 6 Short-term investments 111,488 111,488 111,488 — — Other investments 21,944 21,944 — 21,944 — Totals $ 7,923,341 $ 7,923,341 $ 243,322 $ 7,414,938 $ 265,081 Financial Liabilities Investment contract and life policy reserves, embedded derivatives $ 390 $ 390 $ — $ 390 $ — Other policyholder funds, embedded derivatives 72,986 72,986 — — 72,986 December 31, 2016 Financial Assets Investments Fixed maturity securities U.S. Government and federally sponsored agency obligations: Mortgage-backed securities $ 614,891 $ 614,891 $ — $ 611,476 $ 3,415 Other, including U.S. Treasury securities 467,143 467,143 13,631 453,512 — Municipal bonds 1,769,397 1,769,397 — 1,722,900 46,497 Foreign government bonds 98,669 98,669 — 98,669 — Corporate bonds 2,810,221 2,810,221 13,532 2,736,498 60,191 Other mortgage-backed securities 1,696,387 1,696,387 — 1,595,143 101,244 Total fixed maturity securities 7,456,708 7,456,708 27,163 7,218,198 211,347 Equity securities 141,649 141,649 98,632 43,011 6 Short-term investments 44,918 44,918 44,167 — 751 Other investments 20,194 20,194 — 20,194 — Totals $ 7,663,469 $ 7,663,469 $ 169,962 $ 7,281,403 $ 212,104 Financial Liabilities Investment contract and life policy reserves, embedded derivatives $ 158 $ 158 $ — $ 158 $ — Other policyholder funds, embedded derivatives 59,393 59,393 — — 59,393
Table for reconciliations for all Level 3 assets measured at fair value on a recurring basis	The following table presents reconciliations for the periods indicated for all Level 3 assets and liabilities measured at fair value on a recurring basis. ($ in thousands) Financial Assets Financial Liabilities(1) Municipal Bonds Corporate Bonds Mortgage- Backed Securities (2) Total Fixed Maturity Securities Equity Securities Short-term Investments Total Beginning balance, July 1, 2017 $ 49,123 $ 77,052 $ 120,324 $ 246,499 $ 6 $ — $ 246,505 $ 67,995 Transfers into Level 3 (3) — 23,501 11,961 35,462 — — 35,462 — Transfers out of Level 3 (3) — 1 (881 ) (880 ) — — (880 ) — Total gains or losses Net realized investment gains (losses) included in net income related to financial assets — (1 ) (160 ) (161 ) — — (161 ) — Net realized (gains) losses included in net income related to financial liabilities — — — — — — — 2,587 Net unrealized investment gains (losses) included in other comprehensive income 382 (192 ) (377 ) (187 ) — — (187 ) — Purchases — — — — — — — — Issuances — — — — — — — 3,752 Sales — (1,999 ) — (1,999 ) — — (1,999 ) — Settlements — — — — — — — — Paydowns, maturities and distributions (293 ) (4,117 ) (9,249 ) (13,659 ) — — (13,659 ) (1,348 ) Ending balance, September 30, 2017 $ 49,212 $ 94,245 $ 121,618 $ 265,075 $ 6 $ — $ 265,081 $ 72,986 Beginning balance, January 1, 2017 $ 46,497 $ 60,191 $ 104,659 $ 211,347 $ 6 $ 751 $ 212,104 $ 59,393 Transfers into Level 3 (3) 5,214 55,420 36,482 97,116 — — 97,116 — Transfers out of Level 3 (3) (5,557 ) (11,962 ) (881 ) (18,400 ) — (751 ) (19,151 ) — Total gains or losses Net realized investment gains (losses) included in net income related to financial assets — (1 ) (1,874 ) (1,875 ) — — (1,875 ) — Net realized (gains) losses included in net income related to financial liabilities — — — — — — — 6,133 Net unrealized investment gains (losses) included in other comprehensive income 3,540 263 1,945 5,748 — — 5,748 — Purchases — — — — — — — — Issuances — — — — — — — 10,538 Sales — (1,999 ) — (1,999 ) — — (1,999 ) — Settlements — — — — — — — — Paydowns, maturities and distributions (482 ) (7,667 ) (18,713 ) (26,862 ) — — (26,862 ) (3,078 ) Ending balance, September 30, 2017 $ 49,212 $ 94,245 $ 121,618 $ 265,075 $ 6 $ — $ 265,081 $ 72,986 (1) Represents embedded derivatives, all related to the Company’s FIA products, reported in Other policyholder funds in the Company’s Consolidated Balance Sheets. (2) Includes U.S. Government and federally sponsored agency obligations for mortgage-backed securities and other mortgage-backed securities. (3) Transfers into and out of Level 3 during the three and nine month periods ended September 30, 2017 ($ in thousands) Financial Assets Financial Liabilities(1) Municipal Bonds Corporate Bonds Mortgage- Backed Securities (2) Total Fixed Maturity Securities Equity Securities Short-term Investments Total Beginning balance, July 1, 2016 $ 47,647 $ 73,408 $ 96,581 $ 217,636 $ 6 $ — $ 217,642 $ 47,706 Transfers into Level 3 (3) — 10,375 7,655 18,030 — — 18,030 — Transfers out of Level 3 (3) — (5,967 ) (788 ) (6,755 ) — — (6,755 ) — Total gains or losses Net realized investment gains (losses) included in net income related to financial assets — 1 (56 ) (55 ) — — (55 ) — Net realized (gains) losses included in net income related to financial liabilities — — — — — — — 68 Net unrealized investment gains (losses) included in other comprehensive income (2,361 ) 1,292 3,951 2,882 — — 2,882 — Purchases — — — — — — — — Issuances — — — — — — — 6,710 Sales — — — — — — — — Settlements — — — — — — — — Paydowns, maturities and distributions (120 ) (1,488 ) (5,194 ) (6,802 ) — — (6,802 ) 695 Ending balance, September 30, 2016 $ 45,166 $ 77,621 $ 102,149 $ 224,936 $ 6 $ — $ 224,942 $ 55,179 Beginning balance, January 1, 2016 $ 30,379 $ 67,575 $ 75,466 $ 173,420 $ 6 $ — $ 173,426 $ 39,021 Transfers into Level 3 (3) 14,751 21,451 32,281 68,483 — — 68,483 — Transfers out of Level 3 (3) — (5,967 ) (788 ) (6,755 ) — — (6,755 ) — Total gains or losses Net realized investment gains (losses) included in net income related to financial assets — (656 ) (56 ) (712 ) — — (712 ) — Net realized (gains) losses included in net income related to financial liabilities — — — — — — — 2,066 Net unrealized investment gains (losses) included in other comprehensive income 420 3,073 4,173 7,666 — — 7,666 — Purchases — — — — — — — — Issuances — — — — — — — 15,194 Sales — — — — — — — — Settlements — — — — — — — — Paydowns, maturities and distributions (384 ) (7,855 ) (8,927 ) (17,166 ) — — (17,166 ) (1,102 ) Ending balance, September 30, 2016 $ 45,166 $ 77,621 $ 102,149 $ 224,936 $ 6 $ — $ 224,942 $ 55,179 (1) Represents embedded derivatives, all related to the Company’s FIA products, reported in Other policyholder funds in the Company’s Consolidated Balance Sheets. (2) Includes U.S. Government and federally sponsored agency obligations for mortgage-backed securities and other mortgage-backed securities. (3) Transfers into and out of Level 3 during the three and nine month periods ended September 30, 2016
Summary of fair value assets and liabilities measured on nonrecurring basis	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. ($ in thousands) Fair Value Measurements at Carrying Fair Reporting Date Using Amount Value Level 1 Level 2 Level 3 September 30, 2017 Financial Assets Investments Other investments $ 154,630 $ 159,253 $ — $ — $ 159,253 Financial Liabilities Investment contract reserves 4,428,989 4,338,318 — — 4,338,318 Life policy reserves, account values on life contracts 81,520 86,906 — — 86,906 Other policyholder funds 644,383 644,383 — 575,579 68,804 Long-term debt 247,403 264,781 264,781 — — December 31, 2016 Financial Assets Investments Other investments $ 151,965 $ 156,536 $ — $ — $ 156,536 Financial Liabilities Investment contract reserves 4,360,456 4,280,528 — — 4,280,528 Life policy reserves, account values on life contracts 79,591 85,066 — — 85,066 Other policyholder funds 649,557 649,557 — 575,253 74,304 Long-term debt 247,209 248,191 248,191 — —

Derivative Instruments (Tables)

Derivative Instruments (Tables)	9 Months Ended
	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	The fair values of derivative instruments, including derivative instruments embedded in FIA and IUL contracts, presented in the Consolidated Balance Sheets were as follows: ($ in thousands) September 30, 2017 December 31, 2016 Assets Derivative instruments, included in Short-term and other investments $ 10,431 $ 8,694 Liabilities FIA - embedded derivatives, included in Other policyholder funds $ 72,986 $ 59,393 IUL - embedded derivatives, included in Investment contract and life policy reserves 390 158
Derivative Instruments, Gain (Loss)	The changes in fair value of derivatives included in the Consolidated Statements of Operations were as follows: ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Change in fair value of derivatives (1): Revenues Net realized investment gains $ 2,943 $ 562 $ 7,109 $ 422 Change in fair value of embedded derivatives: Revenues Net realized investment losses $ (2,702 ) $ (76 ) $ (6,363 ) $ (2,077 ) (1)
Financing Receivable Credit Quality Indicators	The notional amount and fair value of call options by counterparty and each counterparty’s long-term credit ratings were as follows: ($ in thousands) September 30, 2017 December 31, 2016 Credit Rating Notional Fair Notional Fair Counterparty S&P Amount Value Amount Value Bank of America, N.A. A+ $ 74,400 $ 2,466 $ 38,500 $ 1,934 Barclays Bank PLC A 68,900 3,017 66,800 1,543 Citigroup Inc. BBB+ — — — — Credit Suisse International A 29,100 2,041 65,200 4,281 Societe Generale A 68,900 2,907 15,600 936 Total $ 241,300 $ 10,431 $ 186,100 $ 8,694

Property and Casualty Unpaid 23

Property and Casualty Unpaid Claims and Claim Expenses (Tables)	9 Months Ended
	Sep. 30, 2017
Insurance Loss Reserves [Abstract]
Reconciliation of property and casualty unpaid claims and claim expenses	The end of the period gross reserve (before reinsurance) balances and the reinsurance recoverable balances are reflected on a gross basis in the Consolidated Balance Sheets. ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Property and Casualty segment Beginning Gross reserves (1) $ 329,831 $ 320,961 $ 307,757 $ 301,569 Less: reinsurance recoverables 58,897 60,499 61,199 50,332 Net reserves, beginning of period (2) 270,934 260,462 246,558 251,237 Incurred claims and claim expenses: Claims occurring in the current period 115,393 116,709 386,945 351,270 Decrease in estimated reserves for claims occurring in prior periods (3) (500 ) (700 ) (2,100 ) (4,300 ) Total claims and claim expenses incurred (4) 114,893 116,009 384,845 346,970 Claims and claim expense payments for claims occurring during: Current period 97,188 99,832 245,213 228,462 Prior periods 28,054 27,976 125,605 121,082 Total claims and claim expense payments 125,242 127,808 370,818 349,544 Net reserves, end of period (2) 260,585 248,663 260,585 248,663 Plus: reinsurance recoverables 57,302 61,893 57,302 61,893 Ending Gross reserves (1) $ 317,887 $ 310,556 $ 317,887 $ 310,556 (1) Unpaid claims and claim expenses as reported in the Consolidated Balance Sheets also include reserves for the Life and Retirement segments of $23,897 thousand and $22,231 thousand as of September 30, 2017 and 2016 , respectively, in addition to Property and Casualty segment reserves. (2) Reserves net of anticipated reinsurance recoverables. (3) Shows the amounts by which the Company decreased its reserves in each of the periods indicated for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs. (4) Benefits, claims and settlement expenses as reported in the Consolidated Statements of Operations also include amounts for the Life and Retirement segments of $20,002 thousand and $60,025 thousand for the three and nine month periods ended September 30, 2017 , respectively, in addition to the Property and Casualty segment amounts. Benefits, claims and settlement expenses for the Life and Retirement segments for the three and nine month periods ended September 30, 2016 were $19,701 thousand and $56,661 thousand , respectively.

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Summary of Indebtedness outstanding	Indebtedness outstanding was as follows: ($ in thousands) September 30, 2017 December 31, 2016 Short-term debt: Bank Credit Facility, expires July 30, 2019 $ — $ — Long-term debt: 4.50% Senior Notes, due December 1, 2025. Aggregate principal amount of $250,000 thousand less unaccrued discount of $561 thousand and $603 thousand (4.5% imputed rate) and unamortized debt issuance costs of $2,036 thousand and $2,188 thousand 247,403 247,209

Reinsurance (Tables)

Reinsurance (Tables)	9 Months Ended
	Sep. 30, 2017
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: ($ in thousands) Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Three months ended September 30, 2017 Premiums written and contract deposits $ 322,428 $ 5,189 $ 1,116 $ 318,355 Premiums and contract charges earned 202,988 5,216 1,163 198,935 Benefits, claims and settlement expenses 135,508 1,831 1,218 134,895 Three months ended September 30, 2016 Premiums written and contract deposits $ 356,155 $ 5,555 $ 934 $ 351,534 Premiums and contract charges earned 195,654 5,584 980 191,050 Benefits, claims and settlement expenses 139,114 4,642 1,238 135,710 Nine months ended September 30, 2017 Premiums written and contract deposits $ 940,063 $ 16,342 $ 2,980 $ 926,701 Premiums and contract charges earned 603,794 16,415 2,996 590,375 Benefits, claims and settlement expenses 450,997 8,899 2,772 444,870 Nine months ended September 30, 2016 Premiums written and contract deposits $ 960,945 $ 17,244 $ 2,881 $ 946,582 Premiums and contract charges earned 579,283 17,305 2,882 564,860 Benefits, claims and settlement expenses 422,352 21,748 3,027 403,631

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Summarized financial information for these segments	Summarized financial information for these segments is as follows: ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Insurance premiums and contract charges earned Property and Casualty $ 163,209 $ 155,727 $ 481,987 $ 461,520 Retirement 7,393 6,448 20,753 18,614 Life 28,333 28,875 87,635 84,726 Total $ 198,935 $ 191,050 $ 590,375 $ 564,860 Net investment income Property and Casualty $ 9,167 $ 10,018 $ 26,457 $ 28,997 Retirement 64,340 66,174 192,921 186,950 Life 18,999 18,852 56,215 55,338 Corporate and Other 17 15 47 44 Intersegment eliminations (203 ) (212 ) (615 ) (644 ) Total $ 92,320 $ 94,847 $ 275,025 $ 270,685 Net income (loss) Property and Casualty $ 13,407 $ 6,715 $ 2,186 $ 16,047 Retirement 13,603 15,732 36,933 39,348 Life 4,788 4,583 14,283 13,072 Corporate and Other (5,247 ) (107 ) (9,272 ) (4,525 ) Total $ 26,551 $ 26,923 $ 44,130 $ 63,942 ($ in thousands) September 30, 2017 December 31, 2016 Assets Property and Casualty $ 1,156,959 $ 1,110,958 Retirement 7,793,727 7,449,777 Life 1,988,767 1,912,771 Corporate and Other 135,876 140,104 Intersegment eliminations (30,981 ) (36,786 ) Total $ 11,044,348 $ 10,576,824

Basis of Presentation - Investm

Basis of Presentation - Investment Contract and Life Policy Reserves (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Investment contract reserves	$ 4,428,989	$ 4,360,456
Life policy reserves	1,111,056	1,087,513
Total	$ 5,540,045	$ 5,447,969

Basis of Presentation - Accumul

Basis of Presentation - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			$ 1,293,982
Other comprehensive income (loss) before reclassifications	$ 9,786	$ 9,912	78,419	$ 167,692
Amounts reclassified from accumulated other comprehensive income (loss)	2,422	(2,274)	1,561	(5,568)
Other comprehensive income	12,208	7,638	79,980	162,124
Ending balance	1,390,441	1,444,084	1,390,441	1,444,084
Other income tax expense (benefit)	(1,304)	1,225	(840)	2,998
Total
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	231,693	317,859	163,921	163,373
Ending balance	243,901	325,497	243,901	325,497
Net Unrealized Investment Gains and Losses on Fixed Maturity and Equity Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	243,510	329,653	175,738	175,167
Other comprehensive income (loss) before reclassifications	9,786	9,912	78,419	167,692
Amounts reclassified from accumulated other comprehensive income (loss)	2,422	(2,274)	1,561	(5,568)
Other comprehensive income	12,208	7,638	79,980	162,124
Ending balance	255,718	337,291	255,718	337,291
Pretax reclassification amounts from accumulated other comprehensive income (loss)	(3,726)	3,499	(2,401)	8,566
Benefit Plans
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(11,817)	(11,794)	(11,817)	(11,794)
Other comprehensive income (loss) before reclassifications	0	0	0	0
Amounts reclassified from accumulated other comprehensive income (loss)	0	0	0	0
Other comprehensive income	0	0	0	0
Ending balance	$ (11,817)	$ (11,794)	$ (11,817)	$ (11,794)

Basis of Presentation - Narrati

Basis of Presentation - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Basis of Presentation [Line Items]
Additional excess tax benefits	$ 2,864
Net cash provided by financing activities	59,748	$ (102,969)
Net cash provided by operating activities	$ 237,204	164,836
Percentage of credit losses on available-for-sale deb securities to total investment portfolio	90.00%
Accounting Standards Update 2016-09, Statutory Tax Withholding Component
Basis of Presentation [Line Items]
Net cash provided by financing activities	$ 2,745	3,321
Net cash provided by operating activities	2,604	$ 3,233
Pro Forma [Member] | Adjustments for new accounting pronouncements
Basis of Presentation [Line Items]
After-tax unrealized gains on equity securities reclassified from AOCI	$ 15,718

Investments - Summary of Fair V

Investments - Summary of Fair Value and Amortized Costs (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Unrealized gains and losses on fixed maturities and equity securities
Amortized Cost or Cost	$ 7,194,397	$ 7,152,127
Amortized Cost or Cost	140,200	134,013
Fair Value	7,630,634	7,456,708
Fair Value	159,275	141,649
Federal National Mortgage Association Certificates and Obligations (FNMA)
Unrealized gains and losses on fixed maturities and equity securities
Fair Value	332,057	272,668
Federal Home Loan Mortgage Corporation Certificates and Obligations (FHLMC)
Unrealized gains and losses on fixed maturities and equity securities
Fair Value	373,676	378,683
Government National Mortgage Association Certificates and Obligations (GNMA)
Unrealized gains and losses on fixed maturities and equity securities
Fair Value	109,873	115,627
Total Fixed Maturity Securities
Unrealized gains and losses on fixed maturities and equity securities
Amortized Cost or Cost	7,194,397	7,152,127
Unrealized Investment Gains	460,619	374,991
Unrealized Investment Losses	24,382	70,410
Fair Value	7,630,634	7,456,708
OTTI in AOCI	1,335	1,618
Mortgage-backed securities
Unrealized gains and losses on fixed maturities and equity securities
Amortized Cost or Cost	613,761	587,355
Unrealized Investment Gains	34,712	34,256
Unrealized Investment Losses	3,071	6,720
Fair Value	645,402	614,891
OTTI in AOCI	0	0
Other, including U.S. Treasury securities
Unrealized gains and losses on fixed maturities and equity securities
Amortized Cost or Cost	653,237	458,745
Unrealized Investment Gains	24,705	18,518
Unrealized Investment Losses	6,922	10,120
Fair Value	671,020	467,143
OTTI in AOCI	0	0
Municipal bonds
Unrealized gains and losses on fixed maturities and equity securities
Amortized Cost or Cost	1,669,273	1,648,252
Unrealized Investment Gains	177,359	143,733
Unrealized Investment Losses	4,428	22,588
Fair Value	1,842,204	1,769,397
OTTI in AOCI	0	0
Foreign government bonds
Unrealized gains and losses on fixed maturities and equity securities
Amortized Cost or Cost	93,761	93,864
Unrealized Investment Gains	6,416	5,102
Unrealized Investment Losses	0	297
Fair Value	100,177	98,669
OTTI in AOCI	0	0
Corporate bonds
Unrealized gains and losses on fixed maturities and equity securities
Amortized Cost or Cost	2,635,313	2,672,818
Unrealized Investment Gains	190,548	152,229
Unrealized Investment Losses	4,158	14,826
Fair Value	2,821,703	2,810,221
OTTI in AOCI	0	0
Other mortgage-backed securities
Unrealized gains and losses on fixed maturities and equity securities
Amortized Cost or Cost	1,529,052	1,691,093
Unrealized Investment Gains	26,879	21,153
Unrealized Investment Losses	5,803	15,859
Fair Value	1,550,128	1,696,387
OTTI in AOCI	1,335	1,618
Equity securities
Unrealized gains and losses on fixed maturities and equity securities
Amortized Cost or Cost	140,200	134,013
Unrealized Investment Gains	20,483	13,210
Unrealized Investment Losses	1,408	5,574
Fair Value	159,275	141,649
OTTI in AOCI	$ 0	$ 0

Investments - Fair Value and Gr

Investments - Fair Value and Gross Unrealized Losses (Details) $ in Thousands	Sep. 30, 2017USD ($)security	Dec. 31, 2016USD ($)security
Fixed maturity securities, Fair Value
Fixed maturity securities, Fair Value, 12 Months or Less	$ 1,004,023	$ 1,994,925
Fixed maturity securities, Fair Value, More than 12 Months	240,988	307,486
Fixed maturity securities, Fair Value, Total	1,245,011	2,302,411
Fixed maturity securities, Gross Unrealized Losses
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less	17,809	61,692
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months	7,981	14,292
Fixed maturity securities, Gross Unrealized Losses, Total	$ 25,790	$ 75,984
Number of positions with a gross unrealized loss, 12 Months or Less | security	393	629
Number of position with a gross unrealized loss, more than 12 months | security	77	102
Number of position with a gross unrealized loss, Total | security	470	731
Fair value as a percentage of total fixed maturities and equity securities fair value, 12 Months or Less	12.90%	26.30%
Fair value as a percentage of total fixed maturities and equity securities fair value, more than 12 months	3.10%	4.00%
Fair value as a percentage of total fixed maturities and equity securities fair value, Total	16.00%	30.30%
Mortgage-backed securities
Fixed maturity securities, Fair Value
Fixed maturity securities, Fair Value, 12 Months or Less	$ 111,456	$ 186,439
Fixed maturity securities, Fair Value, More than 12 Months	12,879	3,235
Fixed maturity securities, Fair Value, Total	124,335	189,674
Fixed maturity securities, Gross Unrealized Losses
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less	2,213	6,176
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months	858	544
Fixed maturity securities, Gross Unrealized Losses, Total	3,071	6,720
Other
Fixed maturity securities, Fair Value
Fixed maturity securities, Fair Value, 12 Months or Less	275,332	219,372
Fixed maturity securities, Fair Value, More than 12 Months	16,979	0
Fixed maturity securities, Fair Value, Total	292,311	219,372
Fixed maturity securities, Gross Unrealized Losses
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less	5,901	10,120
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months	1,021	0
Fixed maturity securities, Gross Unrealized Losses, Total	6,922	10,120
Municipal bonds
Fixed maturity securities, Fair Value
Fixed maturity securities, Fair Value, 12 Months or Less	118,881	408,163
Fixed maturity securities, Fair Value, More than 12 Months	32,710	9,928
Fixed maturity securities, Fair Value, Total	151,591	418,091
Fixed maturity securities, Gross Unrealized Losses
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less	2,731	19,006
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months	1,697	3,582
Fixed maturity securities, Gross Unrealized Losses, Total	4,428	22,588
Foreign government bonds
Fixed maturity securities, Fair Value
Fixed maturity securities, Fair Value, 12 Months or Less	0	24,182
Fixed maturity securities, Fair Value, More than 12 Months	0	0
Fixed maturity securities, Fair Value, Total	0	24,182
Fixed maturity securities, Gross Unrealized Losses
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less	0	297
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months	0	0
Fixed maturity securities, Gross Unrealized Losses, Total	0	297
Corporate bonds
Fixed maturity securities, Fair Value
Fixed maturity securities, Fair Value, 12 Months or Less	138,207	459,402
Fixed maturity securities, Fair Value, More than 12 Months	49,931	57,261
Fixed maturity securities, Fair Value, Total	188,138	516,663
Fixed maturity securities, Gross Unrealized Losses
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less	2,287	11,056
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months	1,871	3,770
Fixed maturity securities, Gross Unrealized Losses, Total	4,158	14,826
Other mortgage-backed securities
Fixed maturity securities, Fair Value
Fixed maturity securities, Fair Value, 12 Months or Less	349,600	640,691
Fixed maturity securities, Fair Value, More than 12 Months	126,297	229,106
Fixed maturity securities, Fair Value, Total	475,897	869,797
Fixed maturity securities, Gross Unrealized Losses
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less	3,985	10,470
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months	1,818	5,389
Fixed maturity securities, Gross Unrealized Losses, Total	5,803	15,859
Total Fixed Maturity Securities
Fixed maturity securities, Fair Value
Fixed maturity securities, Fair Value, 12 Months or Less	993,476	1,938,249
Fixed maturity securities, Fair Value, More than 12 Months	238,796	299,530
Fixed maturity securities, Fair Value, Total	1,232,272	2,237,779
Fixed maturity securities, Gross Unrealized Losses
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less	17,117	57,125
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months	7,265	13,285
Fixed maturity securities, Gross Unrealized Losses, Total	24,382	70,410
Equity securities
Fixed maturity securities, Fair Value
Fixed maturity securities, Fair Value, 12 Months or Less	10,547	56,676
Fixed maturity securities, Fair Value, More than 12 Months	2,192	7,956
Fixed maturity securities, Fair Value, Total	12,739	64,632
Fixed maturity securities, Gross Unrealized Losses
Fixed maturity securities, Gross Unrealized Losses, 12 Months or Less	692	4,567
Fixed maturity securities, Gross Unrealized Losses, More than 12 Months	716	1,007
Fixed maturity securities, Gross Unrealized Losses, Total	$ 1,408	$ 5,574

Investments - Rollforward of OT

Investments - Rollforward of OTTI Losses (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cumulative credit loss
Beginning of period	$ 13,703	$ 7,844
New credit losses	0	300
Increases to previously recognized credit losses	1,994	2,480
Gains related to securities sold or paid down during the period	(2)	0
End of period	$ 15,695	$ 10,624

Investments - Distribution of F

Investments - Distribution of Fixed Maturity Securities by Expected Maturity (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Percent of Total Fair Value
Due in 1 year or less, Percent of Total Fair Value	3.40%	3.90%
Due after 1 year through 5 years, Percent of Total Fair Value	27.50%	28.70%
Due after 5 years through 10 years, Percent of Total Fair Value	33.30%	35.20%
Due after 10 years through 20 years, Percent of Total Fair Value	23.30%	19.50%
Due after 20 years, Percent of Total Fair Value	12.50%	12.70%
Total, Percent of Total Fair Value	100.00%	100.00%
Fair Value
Due in 1 year or less, Fair Value	$ 256,527
Due after 1 year through 5 years, Fair Value	2,097,243
Due after 5 years through 10 years, Fair Value	2,540,303
Due after 10 years through 20 years, Fair Value	1,780,760
Due after 20 years, Fair Value	955,801
Total, Fair Value	7,630,634	$ 7,456,708
Amortized Cost
Due in 1 year or less, Amortized Cost	250,803
Due after 1 year through 5 years, Amortized Cost	1,998,498
Due after 5 years through 10 years, Amortized Cost	2,431,895
Due after 10 years through 20 years, Amortized Cost	1,654,259
Due after 20 years, Amortized Cost	858,942
Total, Amortized Cost	$ 7,194,397	$ 7,152,127
Average option-adjusted duration, in years	6 years	5 years 10 months 25 days

Investments - Summary of Procee

Investments - Summary of Proceeds and Gains (Losses) Realized on Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Proceeds received from sales of fixed maturities and equity securities
Proceeds received, Fixed maturity securities	$ 85,841	$ 94,706	$ 315,531	$ 351,739
Proceeds received, Equity securities	3,514	4,479	20,510	17,101
Fixed maturity securities
Proceeds received from sales of fixed maturities and equity securities
Gross gains realized	2,293	2,966	8,862	13,824
Gross losses realized	(181)	(102)	(1,558)	(1,542)
Equity securities
Proceeds received from sales of fixed maturities and equity securities
Gross gains realized	477	790	3,227	1,960
Gross losses realized	$ (293)	$ (21)	$ (721)	$ (862)

Investments - Reconciliation of

Investments - Reconciliation of Net Unrealized Investment Gains (Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			$ 1,293,982
Ending balance	$ 1,390,441	$ 1,444,084	1,390,441	$ 1,444,084
Net Unrealized Investment Gains and Losses on Fixed Maturity and Equity Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	243,510	329,653	175,738	175,167
Ending balance	255,718	337,291	255,718	337,291
Net Unrealized Investment Gains and Losses on Fixed Maturity and Equity Securities | Fixed maturity securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	270,834	371,456	197,978	198,714
Change in net unrealized investment gains and losses	10,133	20,827	83,547	188,912
Reclassification of net realized investment (gains) losses to net income	2,587	(11,072)	2,029	(6,415)
Ending balance	283,554	381,211	283,554	381,211
Net Unrealized Investment Gains and Losses on Fixed Maturity and Equity Securities | Equity securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	10,631	8,183	4,963	2,649
Change in net unrealized investment gains and losses	1,933	(2,052)	7,905	4,846
Reclassification of net realized investment (gains) losses to net income	(165)	2,211	(469)	847
Ending balance	$ 12,399	$ 8,342	$ 12,399	$ 8,342

Investments - Offsetting of Ass

Investments - Offsetting of Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Asset derivatives:
Net Amounts of Assets/Liabilities Presented in the Consolidated Balance Sheets	$ 10,431	$ 8,694
Free-standing derivatives
Asset derivatives:
Gross Amounts	10,431	8,694
Gross Amounts Offset in the Consolidated Balance Sheets	0	0
Net Amounts of Assets/Liabilities Presented in the Consolidated Balance Sheets	10,431	8,694
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments	0	0
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Received	10,954	8,824
Net Amount	$ (523)	$ (130)

Investments - Narrative (Detail

Investments - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Investment Holdings [Line Items]
Investment Grade Rate	92.00%
Fair value of issued securities	$ 7,630,634	$ 7,456,708
Federal Home Loan Bank Funding Agreements	575,000	575,000
Federal Home Loans Bank Of Chicago
Investment Holdings [Line Items]
Fair value of issued securities	620,558	620,489
Governmental Agencies as Required by Law in Various States
Investment Holdings [Line Items]
Fair value of issued securities	$ 18,133	$ 18,119

Fair Value of Financial Instr38

Fair Value of Financial Instruments - Financial Instruments Measured and Carried at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Carrying Amount
U.S. Government and federally sponsored agency obligations:
Investments	$ 7,923,341	$ 7,663,469
Financial Liabilities
Investment contract and life policy reserves, embedded derivatives	390	158
Other policyholder funds, embedded derivatives	72,986	59,393
Carrying Amount | Recurring
U.S. Government and federally sponsored agency obligations:
Investments	7,630,634	7,456,708
Carrying Amount | Short-term investments
U.S. Government and federally sponsored agency obligations:
Investments	111,488	44,918
Carrying Amount | Mortgage-backed securities
U.S. Government and federally sponsored agency obligations:
Investments	645,402	614,891
Carrying Amount | Other, including U.S. Treasury securities
U.S. Government and federally sponsored agency obligations:
Investments	671,020	467,143
Carrying Amount | Municipal bonds
U.S. Government and federally sponsored agency obligations:
Investments	1,842,204	1,769,397
Carrying Amount | Foreign government bonds
U.S. Government and federally sponsored agency obligations:
Investments	100,177	98,669
Carrying Amount | Corporate bonds
U.S. Government and federally sponsored agency obligations:
Investments	2,821,703	2,810,221
Carrying Amount | Other mortgage-backed securities
U.S. Government and federally sponsored agency obligations:
Investments	1,550,128	1,696,387
Carrying Amount | Equity securities
U.S. Government and federally sponsored agency obligations:
Investments	159,275	141,649
Carrying Amount | Other investments
U.S. Government and federally sponsored agency obligations:
Investments	21,944	20,194
Fair Value
U.S. Government and federally sponsored agency obligations:
Investments	7,923,341	7,663,469
Financial Liabilities
Investment contract and life policy reserves, embedded derivatives	390	158
Other policyholder funds, embedded derivatives	72,986	59,393
Fair Value | Recurring
U.S. Government and federally sponsored agency obligations:
Investments	7,630,634	7,456,708
Fair Value | Short-term investments
U.S. Government and federally sponsored agency obligations:
Investments	111,488	44,918
Fair Value | Mortgage-backed securities
U.S. Government and federally sponsored agency obligations:
Investments	645,402	614,891
Fair Value | Other, including U.S. Treasury securities
U.S. Government and federally sponsored agency obligations:
Investments	671,020	467,143
Fair Value | Municipal bonds
U.S. Government and federally sponsored agency obligations:
Investments	1,842,204	1,769,397
Fair Value | Foreign government bonds
U.S. Government and federally sponsored agency obligations:
Investments	100,177	98,669
Fair Value | Corporate bonds
U.S. Government and federally sponsored agency obligations:
Investments	2,821,703	2,810,221
Fair Value | Other mortgage-backed securities
U.S. Government and federally sponsored agency obligations:
Investments	1,550,128	1,696,387
Fair Value | Equity securities
U.S. Government and federally sponsored agency obligations:
Investments	159,275	141,649
Fair Value | Other investments
U.S. Government and federally sponsored agency obligations:
Investments	21,944	20,194
Fair Value | Level 1
U.S. Government and federally sponsored agency obligations:
Investments	243,322	169,962
Financial Liabilities
Investment contract and life policy reserves, embedded derivatives	0	0
Other policyholder funds, embedded derivatives	0	0
Fair Value | Level 1 | Recurring
U.S. Government and federally sponsored agency obligations:
Investments	28,282	27,163
Fair Value | Level 1 | Short-term investments
U.S. Government and federally sponsored agency obligations:
Investments	111,488	44,167
Fair Value | Level 1 | Mortgage-backed securities
U.S. Government and federally sponsored agency obligations:
Investments	0	0
Fair Value | Level 1 | Other, including U.S. Treasury securities
U.S. Government and federally sponsored agency obligations:
Investments	13,484	13,631
Fair Value | Level 1 | Municipal bonds
U.S. Government and federally sponsored agency obligations:
Investments	0	0
Fair Value | Level 1 | Foreign government bonds
U.S. Government and federally sponsored agency obligations:
Investments	0	0
Fair Value | Level 1 | Corporate bonds
U.S. Government and federally sponsored agency obligations:
Investments	14,798	13,532
Fair Value | Level 1 | Other mortgage-backed securities
U.S. Government and federally sponsored agency obligations:
Investments	0	0
Fair Value | Level 1 | Equity securities
U.S. Government and federally sponsored agency obligations:
Investments	103,552	98,632
Fair Value | Level 1 | Other investments
U.S. Government and federally sponsored agency obligations:
Investments	0	0
Fair Value | Level 2
U.S. Government and federally sponsored agency obligations:
Investments	7,414,938	7,281,403
Financial Liabilities
Investment contract and life policy reserves, embedded derivatives	390	158
Other policyholder funds, embedded derivatives	0	0
Fair Value | Level 2 | Recurring
U.S. Government and federally sponsored agency obligations:
Investments	7,337,277	7,218,198
Fair Value | Level 2 | Short-term investments
U.S. Government and federally sponsored agency obligations:
Investments	0	0
Fair Value | Level 2 | Mortgage-backed securities
U.S. Government and federally sponsored agency obligations:
Investments	642,110	611,476
Fair Value | Level 2 | Other, including U.S. Treasury securities
U.S. Government and federally sponsored agency obligations:
Investments	657,536	453,512
Fair Value | Level 2 | Municipal bonds
U.S. Government and federally sponsored agency obligations:
Investments	1,792,992	1,722,900
Fair Value | Level 2 | Foreign government bonds
U.S. Government and federally sponsored agency obligations:
Investments	100,177	98,669
Fair Value | Level 2 | Corporate bonds
U.S. Government and federally sponsored agency obligations:
Investments	2,712,660	2,736,498
Fair Value | Level 2 | Other mortgage-backed securities
U.S. Government and federally sponsored agency obligations:
Investments	1,431,802	1,595,143
Fair Value | Level 2 | Equity securities
U.S. Government and federally sponsored agency obligations:
Investments	55,717	43,011
Fair Value | Level 2 | Other investments
U.S. Government and federally sponsored agency obligations:
Investments	21,944	20,194
Fair Value | Level 3
U.S. Government and federally sponsored agency obligations:
Investments	265,081	212,104
Financial Liabilities
Investment contract and life policy reserves, embedded derivatives	0	0
Other policyholder funds, embedded derivatives	72,986	59,393
Fair Value | Level 3 | Recurring
U.S. Government and federally sponsored agency obligations:
Investments	265,075	211,347
Fair Value | Level 3 | Short-term investments
U.S. Government and federally sponsored agency obligations:
Investments	0	751
Fair Value | Level 3 | Mortgage-backed securities
U.S. Government and federally sponsored agency obligations:
Investments	3,292	3,415
Fair Value | Level 3 | Other, including U.S. Treasury securities
U.S. Government and federally sponsored agency obligations:
Investments	0	0
Fair Value | Level 3 | Municipal bonds
U.S. Government and federally sponsored agency obligations:
Investments	49,212	46,497
Fair Value | Level 3 | Foreign government bonds
U.S. Government and federally sponsored agency obligations:
Investments	0	0
Fair Value | Level 3 | Corporate bonds
U.S. Government and federally sponsored agency obligations:
Investments	94,245	60,191
Fair Value | Level 3 | Other mortgage-backed securities
U.S. Government and federally sponsored agency obligations:
Investments	118,326	101,244
Fair Value | Level 3 | Equity securities
U.S. Government and federally sponsored agency obligations:
Investments	6	6
Fair Value | Level 3 | Other investments
U.S. Government and federally sponsored agency obligations:
Investments	$ 0	$ 0

Fair Value of Financial Instr39

Fair Value of Financial Instruments - Rollforward of Instruments Measured on Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Financial Assets
Beginning balance	$ 246,505	$ 217,642	$ 212,104	$ 173,426
Transfers into Level 3	35,462	18,030	97,116	68,483
Transfers out of Level 3	(880)	(6,755)	(19,151)	(6,755)
Total gains or losses
Net realized investment gains (losses) included in net income related to financial assets	(161)	(55)	(1,875)	(712)
Net unrealized investment gains (losses) included in other comprehensive income	(187)	2,882	5,748	7,666
Purchases	0	0	0	0
Issuances	0	0	0	0
Sales	(1,999)	0	(1,999)	0
Settlements	0	0	0	0
Paydowns, maturities and distributions	(13,659)	(6,802)	(26,862)	(17,166)
Ending balance	265,081	224,942	265,081	224,942
Financial Liabilities
Beginning balance	67,995	47,706	59,393	39,021
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Total gains or losses
Net realized gains (losses) included in net income related to financial liabilities	2,587	68	6,133	2,066
Net unrealized investment gains (losses) included in other comprehensive income	0	0	0	0
Purchases	0	0	0	0
Issuances	3,752	6,710	10,538	15,194
Sales	0	0	0	0
Settlements	0	0	0	0
Paydowns, maturities and distributions	(1,348)	695	(3,078)	(1,102)
Ending balance	72,986	55,179	72,986	55,179
Short-term Investments
Financial Assets
Beginning balance	0	0	751	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	(751)	0
Total gains or losses
Net realized investment gains (losses) included in net income related to financial assets	0	0	0	0
Net unrealized investment gains (losses) included in other comprehensive income	0	0	0	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	0	0	0	0
Ending balance	0	0	0	0
Municipal bonds
Financial Assets
Beginning balance	49,123	47,647	46,497	30,379
Transfers into Level 3	0	0	5,214	14,751
Transfers out of Level 3	0	0	(5,557)	0
Total gains or losses
Net realized investment gains (losses) included in net income related to financial assets	0	0	0	0
Net unrealized investment gains (losses) included in other comprehensive income	382	(2,361)	3,540	420
Purchases	0	0	0	0
Issuances	0	0	0	0
Sales	0	0	0	0
Settlements	0	0	0	0
Paydowns, maturities and distributions	(293)	(120)	(482)	(384)
Ending balance	49,212	45,166	49,212	45,166
Corporate bonds
Financial Assets
Beginning balance	77,052	73,408	60,191	67,575
Transfers into Level 3	23,501	10,375	55,420	21,451
Transfers out of Level 3	1	(5,967)	(11,962)	(5,967)
Total gains or losses
Net realized investment gains (losses) included in net income related to financial assets	(1)	1	(1)	(656)
Net unrealized investment gains (losses) included in other comprehensive income	(192)	1,292	263	3,073
Purchases	0	0	0	0
Issuances	0	0	0	0
Sales	(1,999)	0	(1,999)	0
Settlements	0	0	0	0
Paydowns, maturities and distributions	(4,117)	(1,488)	(7,667)	(7,855)
Ending balance	94,245	77,621	94,245	77,621
Mortgage-Backed Securities
Financial Assets
Beginning balance	120,324	96,581	104,659	75,466
Transfers into Level 3	11,961	7,655	36,482	32,281
Transfers out of Level 3	(881)	(788)	(881)	(788)
Total gains or losses
Net realized investment gains (losses) included in net income related to financial assets	(160)	(56)	(1,874)	(56)
Net unrealized investment gains (losses) included in other comprehensive income	(377)	3,951	1,945	4,173
Purchases	0	0	0	0
Issuances	0	0	0	0
Sales	0	0	0	0
Settlements	0	0	0	0
Paydowns, maturities and distributions	(9,249)	(5,194)	(18,713)	(8,927)
Ending balance	121,618	102,149	121,618	102,149
Total Fixed Maturity Securities
Financial Assets
Beginning balance	246,499	217,636	211,347	173,420
Transfers into Level 3	35,462	18,030	97,116	68,483
Transfers out of Level 3	(880)	(6,755)	(18,400)	(6,755)
Total gains or losses
Net realized investment gains (losses) included in net income related to financial assets	(161)	(55)	(1,875)	(712)
Net unrealized investment gains (losses) included in other comprehensive income	(187)	2,882	5,748	7,666
Purchases	0	0	0	0
Issuances	0	0	0	0
Sales	(1,999)	0	(1,999)	0
Settlements	0	0	0	0
Paydowns, maturities and distributions	(13,659)	(6,802)	(26,862)	(17,166)
Ending balance	265,075	224,936	265,075	224,936
Equity securities
Financial Assets
Beginning balance	6	6	6	6
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Total gains or losses
Net realized investment gains (losses) included in net income related to financial assets	0	0	0	0
Net unrealized investment gains (losses) included in other comprehensive income	0	0	0	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	0	0	0	0
Ending balance	$ 6	$ 6	$ 6	$ 6

Fair Value of Financial Instr40

Fair Value of Financial Instruments - Financial Instrument Not Carried at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Level 1
Investments
Other investments	$ 0	$ 0
Financial Liabilities
Investment contract reserves	0	0
Life policy reserves, account values on life contracts	0	0
Other policyholder funds	0	0
Long-term debt	264,781	248,191
Level 2
Investments
Other investments	0	0
Financial Liabilities
Investment contract reserves	0	0
Life policy reserves, account values on life contracts	0	0
Other policyholder funds	575,579	575,253
Long-term debt	0	0
Level 3
Investments
Other investments	159,253	156,536
Financial Liabilities
Investment contract reserves	4,338,318	4,280,528
Life policy reserves, account values on life contracts	86,906	85,066
Other policyholder funds	68,804	74,304
Long-term debt	0	0
Carrying Amount
Investments
Other investments	154,630	151,965
Financial Liabilities
Investment contract reserves	4,428,989	4,360,456
Life policy reserves, account values on life contracts	81,520	79,591
Other policyholder funds	644,383	649,557
Long-term debt	247,403	247,209
Fair Value
Investments
Other investments	159,253	156,536
Financial Liabilities
Investment contract reserves	4,338,318	4,280,528
Life policy reserves, account values on life contracts	86,906	85,066
Other policyholder funds	644,383	649,557
Long-term debt	$ 264,781	$ 248,191

Fair Value of Financial Instr41

Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Fair Value of Financial Instruments (Textual) [Abstract]
Realized loss on impairment of securities			$ 1,874
Level 3
Fair Value of Financial Instruments (Textual) [Abstract]
Percentage of invested assets in total investment portfolio Level 3 recurring	3.30%		3.30%
Net realized investment losses	$ 2,587	$ 68	$ 6,133	$ 2,066

Derivative Instruments - Fair V

Derivative Instruments - Fair Value of Derivatives in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets
Derivative instruments, included in Short-term and other investments	$ 10,431	$ 8,694
Short-term and other investments
Assets
Derivative instruments, included in Short-term and other investments	10,431	8,694
Other policyholder funds
Liabilities
FIA - embedded derivatives, included in Other policyholder funds	72,986	59,393
Investment contract and life policy reserves
Liabilities
IUL - embedded derivatives, included in Investment contract and life policy reserves	$ 390	$ 158

Derivative Instruments - Fair43

Derivative Instruments - Fair Value of Derivatives Included in Consolidated Statements of Operations (Details) - Revenues - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Change in fair value of derivatives:
Net realized investment gains	$ 2,943	$ 562	$ 7,109	$ 422
Change in fair value of embedded derivatives:
Net realized investment losses	$ (2,702)	$ (76)	$ (6,363)	$ (2,077)

Derivative Instruments - Notion

Derivative Instruments - Notional and Fair Value Amounts of Derivative Instruments (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Derivative [Line Items]
Notional Amount	$ 241,300	$ 186,100
Fair Value	10,431	8,694
Bank of America, N.A.
Derivative [Line Items]
Notional Amount	74,400	38,500
Fair Value	2,466	1,934
Barclays Bank PLC
Derivative [Line Items]
Notional Amount	68,900	66,800
Fair Value	3,017	1,543
Citigroup Inc.
Derivative [Line Items]
Notional Amount	0	0
Fair Value	0	0
Credit Suisse International
Derivative [Line Items]
Notional Amount	29,100	65,200
Fair Value	2,041	4,281
Societe Generale
Derivative [Line Items]
Notional Amount	68,900	15,600
Fair Value	$ 2,907	$ 936
S&P | Bank of America, N.A.
Derivative [Line Items]
Credit Rating	A+
S&P | Barclays Bank PLC
Derivative [Line Items]
Credit Rating	A
S&P | Citigroup Inc.
Derivative [Line Items]
Credit Rating	BBB+
S&P | Credit Suisse International
Derivative [Line Items]
Credit Rating	A
S&P | Societe Generale
Derivative [Line Items]
Credit Rating	A

Derivative Instruments - Narrat

Derivative Instruments - Narrative (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Expected contract term	10 years
Maximum exposure	$ 250,000
Other liabilities
Derivatives, Fair Value [Line Items]
Fair value of collateral	$ 10,954,000	$ 8,824,000

Property and Casualty Unpaid 46

Property and Casualty Unpaid Claims and Claim Expenses - Summary of Reinsurance Reserve Balances (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Beginning Gross reserves			$ 329,888
Claims and claim expense payments for claims occurring during:
Ending Gross reserves	$ 341,784		341,784
Benefits, claims and settlement expenses	134,895	$ 135,710	444,870	$ 403,631
Property and Casualty segment
Segment Reporting Information [Line Items]
Beginning Gross reserves	329,831	320,961	307,757	301,569
Less: reinsurance recoverables	58,897	60,499	61,199	50,332
Net reserves, beginning of year	270,934	260,462	246,558	251,237
Incurred claims and claim expenses:
Claims occurring in the current period	115,393	116,709	386,945	351,270
Decrease in estimated reserves for claims occurring in prior years	(500)	(700)	(2,100)	(4,300)
Total claims and claim expenses incurred	114,893	116,009	384,845	346,970
Claims and claim expense payments for claims occurring during:
Current period	97,188	99,832	245,213	228,462
Prior periods	28,054	27,976	125,605	121,082
Total claims and claim expense payments	125,242	127,808	370,818	349,544
Net reserves, end of year	260,585	248,663	260,585	248,663
Plus: reinsurance recoverables	57,302	61,893	57,302	61,893
Ending Gross reserves	317,887	310,556	317,887	310,556
Life and Annuity segments
Claims and claim expense payments for claims occurring during:
Net reserves, end of year	23,897	22,231	23,897	22,231
Benefits, claims and settlement expenses	$ 20,002	$ 19,701	$ 60,025	$ 56,661

Property and Casualty Unpaid 47

Property and Casualty Unpaid Claims and Claim Expenses - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Insurance Loss Reserves [Abstract]
Favorable development of total reserves for property and casualty claims occurring in prior years	$ 2,100	$ 4,300

Debt - Summary of Indebtedness

Debt - Summary of Indebtedness (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Short-term debt:
Bank Credit Facility, expires July 30, 2019	$ 0	$ 0
Long-term debt:
Long-term debt	$ 247,403,000	247,209,000
Expiration date	Jul. 30, 2019
4.50% Senior Notes
Long-term debt:
Long-term debt	$ 247,403,000	247,209,000
Senior Notes 2025 | 4.50% Senior Notes
Long-term debt:
Unamortized discount	$ 561,000	603,000
Stated rate	4.50%
Face amount	$ 250,000,000
Maturity date	Dec. 1, 2025
Unamortized debt issuance costs	$ 2,036,000	$ 2,188,000

Reinsurance - Summary of Reinsu

Reinsurance - Summary of Reinsurance Activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Gross Amount
Premiums written and contract deposits, Gross Amount	$ 322,428	$ 356,155	$ 940,063	$ 960,945
Premiums and contract charges earned, Gross Amount	202,988	195,654	603,794	579,283
Benefits, claims and settlement expenses, Gross Amount	135,508	139,114	450,997	422,352
Ceded to Other Companies
Premiums written and contract deposits, Ceded to Other Companies	5,189	5,555	16,342	17,244
Premiums and contract charges earned, Ceded to Other Companies	5,216	5,584	16,415	17,305
Benefits, claims and settlement expenses, Ceded to Other Companies	1,831	4,642	8,899	21,748
Assumed from Other Companies
Premiums written and contract deposits, Assumed from Other Companies	1,116	934	2,980	2,881
Premiums and contract charges earned, Assumed from Other Companies	1,163	980	2,996	2,882
Benefits, claims and settlement expenses, Assumed from Other Companies	1,218	1,238	2,772	3,027
Net Amount
Premiums written and contract deposits, Net Amount	318,355	351,534	926,701	946,582
Premiums and contract charges earned, Net Amount	198,935	191,050	590,375	564,860
Benefits, claims and settlement expenses, Net Amount	$ 134,895	$ 135,710	$ 444,870	$ 403,631

Commitments - Narrative (Detail

Commitments - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Unfunded commitments to purchase investments	$ 111,265	$ 135,054

Segment Information - Summary o

Segment Information - Summary of Segment Activity (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)segment	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Segment Reporting Information [Line Items]
Reportable segments | segment			4
Operating segments | segment			3
Summarized financial information for these segments
Insurance premiums and contract charges earned	$ 198,935	$ 191,050	$ 590,375	$ 564,860
Net investment income	92,320	94,847	275,025	270,685
Net income (loss)	26,551	26,923	44,130	63,942
Assets	11,044,348		11,044,348		$ 10,576,824
Intersegment eliminations
Summarized financial information for these segments
Net investment income	(203)	(212)	(615)	(644)
Assets	(30,981)		(30,981)		(36,786)
Property and Casualty
Summarized financial information for these segments
Insurance premiums and contract charges earned	163,209	155,727	481,987	461,520
Property and Casualty | Operating segments
Summarized financial information for these segments
Net investment income	9,167	10,018	26,457	28,997
Net income (loss)	13,407	6,715	2,186	16,047
Assets	1,156,959		1,156,959		1,110,958
Retirement
Summarized financial information for these segments
Insurance premiums and contract charges earned	7,393	6,448	20,753	18,614
Retirement | Operating segments
Summarized financial information for these segments
Net investment income	64,340	66,174	192,921	186,950
Net income (loss)	13,603	15,732	36,933	39,348
Assets	7,793,727		7,793,727		7,449,777
Life
Summarized financial information for these segments
Insurance premiums and contract charges earned	28,333	28,875	87,635	84,726
Life | Operating segments
Summarized financial information for these segments
Net investment income	18,999	18,852	56,215	55,338
Net income (loss)	4,788	4,583	14,283	13,072
Assets	1,988,767		1,988,767		1,912,771
Corporate and Other
Summarized financial information for these segments
Net investment income	17	15	47	44
Net income (loss)	(5,247)	$ (107)	(9,272)	$ (4,525)
Assets	$ 135,876		$ 135,876		$ 140,104