(Mark one) | ||
[X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the quarterly period ended June 30, 2017 | ||
or | ||
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from____________________ to____________________ | ||
(Exact name of registrant as specified in its charter) | ||
Iowa | 42-1411715 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
5400 University Avenue, West Des Moines, Iowa | 50266-5997 | |
(Address of principal executive offices) | (Zip Code) | |
(515) 225-5400 | ||
(Registrant's telephone number, including area code) | ||
(Former name, former address and former fiscal year, if changed since last report) | ||
Large accelerated filer [ ] | Accelerated filer [X] | Non-accelerated filer [ ] | Smaller reporting company [ ] | Emerging growth company [ ] |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). [ ] Yes [X] No | ||
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: | ||
Title of each class | Outstanding at August 1, 2017 | |
Class A Common Stock, without par value | 24,918,085 | |
Class B Common Stock, without par value | 11,413 |
PART I. | FINANCIAL INFORMATION | |
Item 1. | Financial Statements (Unaudited) | |
Consolidated Balance Sheets | ||
Consolidated Statements of Operations | ||
Consolidated Statements of Comprehensive Income | ||
Consolidated Statements of Changes in Stockholders' Equity | ||
Consolidated Statements of Cash Flows | ||
Notes to Consolidated Financial Statements | ||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | |
Item 4. | Controls and Procedures | |
PART II. | OTHER INFORMATION | |
Item 1A. | Risk Factors | |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 6. | Exhibits | |
SIGNATURES |
June 30, 2017 | December 31, 2016 | ||||||
Assets | |||||||
Investments: | |||||||
Fixed maturities - available for sale, at fair value (amortized cost: 2017 - $6,727,792; 2016 - $6,661,711) | $ | 7,212,546 | $ | 7,008,790 | |||
Equity securities - available for sale, at fair value (cost: 2017 - $122,662; 2016 - $130,479) | 131,435 | 132,968 | |||||
Mortgage loans | 878,435 | 816,471 | |||||
Real estate | 1,543 | 1,955 | |||||
Policy loans | 188,630 | 188,254 | |||||
Short-term investments | 29,621 | 16,348 | |||||
Other investments | 12,693 | 9,874 | |||||
Total investments | 8,454,903 | 8,174,660 | |||||
Cash and cash equivalents | 43,809 | 33,583 | |||||
Securities and indebtedness of related parties | 133,153 | 137,422 | |||||
Accrued investment income | 77,711 | 78,437 | |||||
Amounts receivable from affiliates | 4,749 | 3,790 | |||||
Reinsurance recoverable | 106,596 | 105,290 | |||||
Deferred acquisition costs | 296,637 | 330,324 | |||||
Value of insurance in force acquired | 6,316 | 9,226 | |||||
Current income taxes recoverable | — | 4,309 | |||||
Other assets | 93,143 | 92,021 | |||||
Assets held in separate accounts | 625,971 | 597,072 | |||||
Total assets | $ | 9,842,988 | $ | 9,566,134 |
June 30, 2017 | December 31, 2016 | ||||||
Liabilities and stockholders' equity | |||||||
Liabilities: | |||||||
Future policy benefits: | |||||||
Interest sensitive products | $ | 5,174,178 | $ | 5,100,625 | |||
Traditional life insurance and accident and health products | 1,724,747 | 1,698,792 | |||||
Other policy claims and benefits | 37,535 | 43,395 | |||||
Supplementary contracts without life contingencies | 328,904 | 330,232 | |||||
Advance premiums and other deposits | 267,922 | 265,221 | |||||
Amounts payable to affiliates | 1,014 | 862 | |||||
Long-term debt payable to non-affiliates | 97,000 | 97,000 | |||||
Current income taxes payable | 7,500 | — | |||||
Deferred income taxes | 198,365 | 163,495 | |||||
Other liabilities | 128,983 | 81,182 | |||||
Liabilities related to separate accounts | 625,971 | 597,072 | |||||
Total liabilities | 8,592,119 | 8,377,876 | |||||
Stockholders' equity: | |||||||
FBL Financial Group, Inc. stockholders' equity: | |||||||
Preferred stock, without par value, at liquidation value - authorized 10,000,000 shares, issued and outstanding 5,000,000 Series B shares | 3,000 | 3,000 | |||||
Class A common stock, without par value - authorized 88,500,000 shares, issued and outstanding 24,917,155 shares in 2017 and 24,882,542 shares in 2016 | 153,343 | 152,903 | |||||
Class B common stock, without par value - authorized 1,500,000 shares, issued and outstanding 11,413 shares in 2017 and 2016 | 72 | 72 | |||||
Accumulated other comprehensive income | 212,357 | 149,555 | |||||
Retained earnings | 882,012 | 882,672 | |||||
Total FBL Financial Group, Inc. stockholders' equity | 1,250,784 | 1,188,202 | |||||
Noncontrolling interest | 85 | 56 | |||||
Total stockholders' equity | 1,250,869 | 1,188,258 | |||||
Total liabilities and stockholders' equity | $ | 9,842,988 | $ | 9,566,134 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues: | |||||||||||||||
Interest sensitive product charges | $ | 29,456 | $ | 29,027 | $ | 58,657 | $ | 57,138 | |||||||
Traditional life insurance premiums | 50,262 | 49,605 | 98,696 | 99,743 | |||||||||||
Net investment income | 103,908 | 100,722 | 204,902 | 199,107 | |||||||||||
Net realized capital gains (losses) on sales of investments | 921 | (2,269 | ) | 518 | (679 | ) | |||||||||
Total other-than-temporary impairment losses | — | (25 | ) | (66 | ) | (3,744 | ) | ||||||||
Non-credit portion in other comprehensive income | — | — | — | 1,522 | |||||||||||
Net impairment losses recognized in earnings | — | (25 | ) | (66 | ) | (2,222 | ) | ||||||||
Other income | 4,450 | 4,225 | 8,210 | 7,864 | |||||||||||
Total revenues | 188,997 | 181,285 | 370,917 | 360,951 | |||||||||||
Benefits and expenses: | |||||||||||||||
Interest sensitive product benefits | 58,251 | 58,559 | 121,011 | 112,978 | |||||||||||
Traditional life insurance benefits | 42,610 | 43,369 | 85,564 | 87,938 | |||||||||||
Policyholder dividends | 2,557 | 2,515 | 5,110 | 5,555 | |||||||||||
Underwriting, acquisition and insurance expenses | 36,341 | 38,938 | 70,694 | 76,652 | |||||||||||
Interest expense | 1,213 | 1,213 | 2,425 | 2,425 | |||||||||||
Other expenses | 4,740 | 4,435 | 8,891 | 8,793 | |||||||||||
Total benefits and expenses | 145,712 | 149,029 | 293,695 | 294,341 | |||||||||||
43,285 | 32,256 | 77,222 | 66,610 | ||||||||||||
Income taxes | (13,891 | ) | (10,477 | ) | (24,624 | ) | (21,546 | ) | |||||||
Equity income, net of related income taxes | 2,924 | 2,613 | 6,155 | 5,265 | |||||||||||
Net income | 32,318 | 24,392 | 58,753 | 50,329 | |||||||||||
Net income attributable to noncontrolling interest | (27 | ) | (12 | ) | (29 | ) | (3 | ) | |||||||
Net income attributable to FBL Financial Group, Inc. | $ | 32,291 | $ | 24,380 | $ | 58,724 | $ | 50,326 | |||||||
Earnings per common share | $ | 1.29 | $ | 0.97 | $ | 2.34 | $ | 2.01 | |||||||
Earnings per common share - assuming dilution | $ | 1.29 | $ | 0.97 | $ | 2.34 | $ | 2.01 | |||||||
Cash dividend per common share | $ | 0.44 | $ | 0.42 | $ | 0.88 | $ | 0.84 | |||||||
Special cash dividend per common share | $ | — | $ | — | $ | 1.50 | $ | 2.00 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 32,318 | $ | 24,392 | $ | 58,753 | $ | 50,329 | |||||||
Other comprehensive income (1) | |||||||||||||||
Change in net unrealized investment gains/losses | 46,570 | 90,055 | 62,431 | 162,258 | |||||||||||
Non-credit impairment losses | — | — | — | (952 | ) | ||||||||||
Change in underfunded status of postretirement benefit plans | 189 | 149 | 371 | 284 | |||||||||||
Total other comprehensive income, net of tax | 46,759 | 90,204 | 62,802 | 161,590 | |||||||||||
Total comprehensive income, net of tax | 79,077 | 114,596 | 121,555 | 211,919 | |||||||||||
Comprehensive income attributable to noncontrolling interest | (27 | ) | (12 | ) | (29 | ) | (3 | ) | |||||||
Total comprehensive income applicable to FBL Financial Group, Inc. | $ | 79,050 | $ | 114,584 | $ | 121,526 | $ | 211,916 |
(1) | Other comprehensive income is recorded net of deferred income taxes and other adjustments for assumed changes in deferred acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities. |
FBL Financial Group, Inc. Stockholders' Equity | |||||||||||||||||||||||
Series B Preferred Stock | Class A and Class B Common Stock | Accumulated Other Comprehensive Income | Retained Earnings | Non- controlling Interest | Total Stockholders' Equity | ||||||||||||||||||
Balance at January 1, 2016 | $ | 3,000 | $ | 149,320 | $ | 114,532 | $ | 867,574 | $ | 48 | $ | 1,134,474 | |||||||||||
Net income - six months ended June 30, 2016 | — | — | — | 50,326 | 3 | 50,329 | |||||||||||||||||
Other comprehensive income | — | — | 161,590 | — | — | 161,590 | |||||||||||||||||
Issuance of common stock under compensation plans | — | 2,314 | — | — | — | 2,314 | |||||||||||||||||
Purchase of common stock | — | (63 | ) | — | (523 | ) | — | (586 | ) | ||||||||||||||
Dividends on preferred stock | — | — | — | (75 | ) | — | (75 | ) | |||||||||||||||
Dividends on common stock | — | — | — | (70,550 | ) | — | (70,550 | ) | |||||||||||||||
Receipts related to noncontrolling interest | — | — | — | — | 12 | 12 | |||||||||||||||||
Balance at June 30, 2016 | $ | 3,000 | $ | 151,571 | $ | 276,122 | $ | 846,752 | $ | 63 | $ | 1,277,508 | |||||||||||
Balance at January 1, 2017 | $ | 3,000 | $ | 152,975 | $ | 149,555 | $ | 882,672 | $ | 56 | $ | 1,188,258 | |||||||||||
Net income - six months ended June 30, 2017 | — | — | — | 58,724 | 29 | 58,753 | |||||||||||||||||
Other comprehensive income | — | — | 62,802 | — | — | 62,802 | |||||||||||||||||
Issuance of common stock under compensation plans | — | 440 | — | — | — | 440 | |||||||||||||||||
Dividends on preferred stock | — | — | — | (75 | ) | — | (75 | ) | |||||||||||||||
Dividends on common stock | — | — | — | (59,309 | ) | — | (59,309 | ) | |||||||||||||||
Balance at June 30, 2017 | $ | 3,000 | $ | 153,415 | $ | 212,357 | $ | 882,012 | $ | 85 | $ | 1,250,869 |
Six months ended June 30, | |||||||
2017 | 2016 | ||||||
Operating activities | |||||||
Net income | $ | 58,753 | $ | 50,329 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Interest credited to account balances | 79,938 | 75,226 | |||||
Charges for mortality, surrenders and administration | (58,037 | ) | (55,579 | ) | |||
Net realized (gains) losses on investments | (452 | ) | 2,901 | ||||
Change in fair value of derivatives | (2,466 | ) | 2,800 | ||||
Increase in liabilities for life insurance and other future policy benefits | 43,282 | 44,169 | |||||
Deferral of acquisition costs | (21,908 | ) | (20,977 | ) | |||
Amortization of deferred acquisition costs and value of insurance in force | 16,565 | 22,379 | |||||
Change in reinsurance recoverable | (2,728 | ) | (1,880 | ) | |||
Provision for deferred income taxes | 1,054 | 1,993 | |||||
Other | 6,787 | (4,270 | ) | ||||
Net cash provided by operating activities | 120,788 | 117,091 | |||||
Investing activities | |||||||
Sales, maturities or repayments: | |||||||
Fixed maturities - available for sale | 293,162 | 289,644 | |||||
Equity securities - available for sale | 8,928 | 3,571 | |||||
Mortgage loans | 28,584 | 34,641 | |||||
Derivative instruments | 5,892 | 75 | |||||
Policy loans | 19,410 | 18,532 | |||||
Securities and indebtedness of related parties | 3,859 | 7,293 | |||||
Real estate | 717 | — | |||||
Other long-term investments | 14 | — | |||||
Acquisitions: | |||||||
Fixed maturities - available for sale | (294,258 | ) | (328,264 | ) | |||
Equity securities - available for sale | (1,102 | ) | (11,162 | ) | |||
Mortgage loans | (90,450 | ) | (61,125 | ) | |||
Derivative instruments | (4,557 | ) | (3,311 | ) | |||
Policy loans | (19,786 | ) | (20,187 | ) | |||
Securities and indebtedness of related parties | (6,859 | ) | (8,131 | ) | |||
Short-term investments, net change | (13,273 | ) | 5,694 | ||||
Purchases and disposals of property and equipment, net | (5,954 | ) | (5,831 | ) | |||
Net cash used in investing activities | (75,673 | ) | (78,561 | ) |
Six months ended June 30, | |||||||
2017 | 2016 | ||||||
Financing activities | |||||||
Contract holder account deposits | $ | 263,551 | $ | 319,337 | |||
Contract holder account withdrawals | (239,237 | ) | (177,676 | ) | |||
Dividends paid | (59,384 | ) | (70,625 | ) | |||
Repayments of debt | — | (15,000 | ) | ||||
Issuance or repurchase of common stock, net | 181 | 1,005 | |||||
Other financing activities | — | 484 | |||||
Net cash provided by (used in) financing activities | (34,889 | ) | 57,525 | ||||
Increase in cash and cash equivalents | 10,226 | 96,055 | |||||
Cash and cash equivalents at beginning of period | 33,583 | 29,490 | |||||
Cash and cash equivalents at end of period | $ | 43,809 | $ | 125,545 | |||
Supplemental disclosures of cash flow information | |||||||
Cash (paid) received during the period for: | |||||||
Interest | $ | (2,425 | ) | $ | (2,429 | ) | |
Income taxes | (3,602 | ) | (2,001 | ) |
Available-For-Sale Fixed Maturity and Equity Securities by Investment Category | |||||||||||||||||||
June 30, 2017 | |||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Non-credit losses on other-than-temporary impairments (1) | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Fixed maturities: | |||||||||||||||||||
Corporate (2) | $ | 3,483,707 | $ | 292,934 | $ | (24,045 | ) | $ | 3,752,596 | $ | (243 | ) | |||||||
Residential mortgage-backed | 410,628 | 35,783 | (1,729 | ) | 444,682 | 266 | |||||||||||||
Commercial mortgage-backed | 616,281 | 38,592 | (1,913 | ) | 652,960 | — | |||||||||||||
Other asset-backed | 790,178 | 15,712 | (3,890 | ) | 802,000 | 2,303 | |||||||||||||
United States Government and agencies | 26,583 | 1,716 | (25 | ) | 28,274 | — | |||||||||||||
State and political subdivisions | 1,400,415 | 134,139 | (2,520 | ) | 1,532,034 | — | |||||||||||||
Total fixed maturities | $ | 6,727,792 | $ | 518,876 | $ | (34,122 | ) | $ | 7,212,546 | $ | 2,326 | ||||||||
Equity securities: | |||||||||||||||||||
Non-redeemable preferred stocks | $ | 92,951 | $ | 8,956 | $ | (475 | ) | $ | 101,432 | ||||||||||
Common stocks | 29,711 | 292 | — | 30,003 | |||||||||||||||
Total equity securities | $ | 122,662 | $ | 9,248 | $ | (475 | ) | $ | 131,435 |
Available-For-Sale Fixed Maturity and Equity Securities by Investment Category | |||||||||||||||||||
December 31, 2016 | |||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Non-credit losses on other-than-temporary impairments (1) | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Fixed maturities: | |||||||||||||||||||
Corporate (2) | $ | 3,529,997 | $ | 228,601 | $ | (49,943 | ) | $ | 3,708,655 | $ | (1,082 | ) | |||||||
Residential mortgage-backed | 396,110 | 29,121 | (2,931 | ) | 422,300 | (983 | ) | ||||||||||||
Commercial mortgage-backed | 546,446 | 33,645 | (4,137 | ) | 575,954 | — | |||||||||||||
Other asset-backed | 771,570 | 8,846 | (9,766 | ) | 770,650 | 2,544 | |||||||||||||
United States Government and agencies | 30,575 | 1,629 | (132 | ) | 32,072 | — | |||||||||||||
State and political subdivisions | 1,387,013 | 119,298 | (7,152 | ) | 1,499,159 | — | |||||||||||||
Total fixed maturities | $ | 6,661,711 | $ | 421,140 | $ | (74,061 | ) | $ | 7,008,790 | $ | 479 | ||||||||
Equity securities: | |||||||||||||||||||
Non-redeemable preferred stocks | $ | 100,042 | $ | 4,050 | $ | (1,675 | ) | $ | 102,417 | ||||||||||
Common stocks | 30,437 | 114 | — | 30,551 | |||||||||||||||
Total equity securities | $ | 130,479 | $ | 4,164 | $ | (1,675 | ) | $ | 132,968 |
(1) | Non-credit losses, subsequent to the initial impairment measurement date, on other-than-temporary impairment (OTTI) losses are included in the gross unrealized gains and gross unrealized losses columns above. The non-credit loss component of OTTI losses for residential mortgage-backed and other asset-backed securities at June 30, 2017 and other asset-backed securities at December 31, 2016 were in an unrealized gain position due to increases in estimated fair value subsequent to initial recognition of non-credit losses on such securities. |
(2) | Corporate securities include hybrid preferred securities with a fair value of $24.3 million at June 30, 2017 and $23.3 million at December 31, 2016. Corporate securities also include redeemable preferred stock with a fair value of $26.2 million at June 30, 2017 and $24.5 million at December 31, 2016. |
Available-For-Sale Fixed Maturities by Maturity Date | |||||||
June 30, 2017 | |||||||
Amortized Cost | Fair Value | ||||||
(Dollars in thousands) | |||||||
Due in one year or less | $ | 173,479 | $ | 178,072 | |||
Due after one year through five years | 674,859 | 725,874 | |||||
Due after five years through ten years | 718,196 | 760,134 | |||||
Due after ten years | 3,344,171 | 3,648,824 | |||||
4,910,705 | 5,312,904 | ||||||
Mortgage-backed and other asset-backed | 1,817,087 | 1,899,642 | |||||
Total fixed maturities | $ | 6,727,792 | $ | 7,212,546 |
Net Unrealized Gains (Losses) on Investments in Accumulated Other Comprehensive Income | |||||||
June 30, 2017 | December 31, 2016 | ||||||
(Dollars in thousands) | |||||||
Net unrealized appreciation on: | |||||||
Fixed maturities - available for sale | $ | 484,754 | $ | 347,079 | |||
Equity securities - available for sale | 8,773 | 2,489 | |||||
493,527 | 349,568 | ||||||
Adjustments for assumed changes in amortization pattern of: | |||||||
Deferred acquisition costs | (137,017 | ) | (95,647 | ) | |||
Value of insurance in force acquired | (14,202 | ) | (12,382 | ) | |||
Unearned revenue reserve | 9,834 | 4,215 | |||||
Adjustments for assumed changes in policyholder liabilities | (14,137 | ) | (3,795 | ) | |||
Provision for deferred income taxes | (118,300 | ) | (84,684 | ) | |||
Net unrealized investment gains | $ | 219,705 | $ | 157,275 |
Fixed Maturity and Equity Securities with Unrealized Losses by Length of Time | |||||||||||||||||||||||||||
June 30, 2017 | |||||||||||||||||||||||||||
Less than one year | One year or more | Total | |||||||||||||||||||||||||
Description of Securities | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Percent of Total | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||
Corporate | $ | 264,992 | $ | (4,967 | ) | $ | 160,828 | $ | (19,078 | ) | $ | 425,820 | $ | (24,045 | ) | 70.4 | % | ||||||||||
Residential mortgage-backed | 31,007 | (733 | ) | 17,147 | (996 | ) | 48,154 | (1,729 | ) | 5.1 | |||||||||||||||||
Commercial mortgage-backed | 77,714 | (1,657 | ) | 6,869 | (256 | ) | 84,583 | (1,913 | ) | 5.6 | |||||||||||||||||
Other asset-backed | 206,033 | (2,107 | ) | 57,931 | (1,783 | ) | 263,964 | (3,890 | ) | 11.4 | |||||||||||||||||
United States Government and agencies | 6,699 | (25 | ) | — | — | 6,699 | (25 | ) | 0.1 | ||||||||||||||||||
State and political subdivisions | 72,395 | (2,520 | ) | — | — | 72,395 | (2,520 | ) | 7.4 | ||||||||||||||||||
Total fixed maturities | $ | 658,840 | $ | (12,009 | ) | $ | 242,775 | $ | (22,113 | ) | $ | 901,615 | $ | (34,122 | ) | 100.0 | % | ||||||||||
Equity securities: | |||||||||||||||||||||||||||
Non-redeemable preferred stocks | $ | — | $ | — | $ | 4,525 | $ | (475 | ) | $ | 4,525 | $ | (475 | ) | |||||||||||||
Total equity securities | $ | — | $ | — | $ | 4,525 | $ | (475 | ) | $ | 4,525 | $ | (475 | ) |
Fixed Maturity and Equity Securities with Unrealized Losses by Length of Time | |||||||||||||||||||||||||||
December 31, 2016 | |||||||||||||||||||||||||||
Less than one year | One year or more | Total | |||||||||||||||||||||||||
Description of Securities | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Percent of Total | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||
Corporate | $ | 742,626 | $ | (23,142 | ) | $ | 220,939 | $ | (26,801 | ) | $ | 963,565 | $ | (49,943 | ) | 67.3 | % | ||||||||||
Residential mortgage-backed | 51,873 | (1,014 | ) | 22,744 | (1,917 | ) | 74,617 | (2,931 | ) | 4.0 | |||||||||||||||||
Commercial mortgage-backed | 95,690 | (3,590 | ) | 6,610 | (547 | ) | 102,300 | (4,137 | ) | 5.6 | |||||||||||||||||
Other asset-backed | 371,829 | (5,810 | ) | 95,740 | (3,956 | ) | 467,569 | (9,766 | ) | 13.2 | |||||||||||||||||
United States Government and agencies | 6,438 | (132 | ) | — | — | 6,438 | (132 | ) | 0.2 | ||||||||||||||||||
State and political subdivisions | 150,052 | (7,152 | ) | — | — | 150,052 | (7,152 | ) | 9.7 | ||||||||||||||||||
Total fixed maturities | $ | 1,418,508 | $ | (40,840 | ) | $ | 346,033 | $ | (33,221 | ) | $ | 1,764,541 | $ | (74,061 | ) | 100.0 | % | ||||||||||
Equity securities: | |||||||||||||||||||||||||||
Non-redeemable preferred stocks | $ | 12,774 | $ | (150 | ) | $ | 13,438 | $ | (1,525 | ) | $ | 26,212 | $ | (1,675 | ) | ||||||||||||
Total equity securities | $ | 12,774 | $ | (150 | ) | $ | 13,438 | $ | (1,525 | ) | $ | 26,212 | $ | (1,675 | ) |
Credit Loss Component of Other-Than-Temporary Impairments on Fixed Maturities | |||||||
Six months ended June 30, | |||||||
2017 | 2016 | ||||||
(Dollars in thousands) | |||||||
Balance at beginning of period | $ | (14,500 | ) | $ | (11,498 | ) | |
Increases to previously impaired investments | — | (2,172 | ) | ||||
Reductions due to investments sold or paid down | 829 | 622 | |||||
Reduction for credit loss that no longer has a portion of the OTTI loss recognized in other comprehensive income | 587 | — | |||||
Balance at end of period | $ | (13,084 | ) | $ | (13,048 | ) |
Realized Gains (Losses) - Recorded in Income | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Realized gains (losses) on sales of investments | |||||||||||||||
Fixed maturities: | |||||||||||||||
Gross gains | $ | 1,081 | $ | 5,789 | $ | 1,205 | $ | 7,379 | |||||||
Gross losses | (414 | ) | (8,378 | ) | (941 | ) | (8,378 | ) | |||||||
Other long-term investments | 40 | — | 40 | — | |||||||||||
Real estate | 304 | — | 304 | — | |||||||||||
Equity investments | (90 | ) | — | (90 | ) | — | |||||||||
Securities and indebtedness of related parties | — | 320 | — | 320 | |||||||||||
921 | (2,269 | ) | 518 | (679 | ) | ||||||||||
Impairment losses recognized in earnings: | |||||||||||||||
Credit-related portion of fixed maturity losses (1) | — | — | — | (2,172 | ) | ||||||||||
Other credit-related (2) | — | (25 | ) | (66 | ) | (50 | ) | ||||||||
Net realized losses on investments recorded in income | $ | 921 | $ | (2,294 | ) | $ | 452 | $ | (2,901 | ) |
(1) | Amount represents the credit-related losses recognized for fixed maturities that were impaired through income but not written down to fair value. As discussed above, the non-credit portion of the losses have been recognized in other comprehensive income (loss). |
(2) | Amount represents credit-related losses for other investments and fixed maturities written down to fair value through income. |
Mortgage Loans by Collateral Type | ||||||||||||||
June 30, 2017 | December 31, 2016 | |||||||||||||
Collateral Type | Carrying Value | Percent of Total | Carrying Value | Percent of Total | ||||||||||
(Dollars in thousands) | ||||||||||||||
Office | $ | 379,495 | 43.2 | % | $ | 361,088 | 44.2 | % | ||||||
Retail | 287,522 | 32.7 | 240,602 | 29.5 | ||||||||||
Industrial | 153,176 | 17.5 | 154,005 | 18.9 | ||||||||||
Other | 58,242 | 6.6 | 60,776 | 7.4 | ||||||||||
Total | $ | 878,435 | 100.0 | % | $ | 816,471 | 100.0 | % |
Mortgage Loans by Geographic Location within the United States | ||||||||||||||
June 30, 2017 | December 31, 2016 | |||||||||||||
Region of the United States | Carrying Value | Percent of Total | Carrying Value | Percent of Total | ||||||||||
(Dollars in thousands) | ||||||||||||||
South Atlantic | $ | 259,992 | 29.6 | % | $ | 266,019 | 32.6 | % | ||||||
West North Central | 127,602 | 14.5 | 105,753 | 12.9 | ||||||||||
Pacific | 120,547 | 13.7 | 104,337 | 12.8 | ||||||||||
East North Central | 97,120 | 11.1 | 91,550 | 11.2 | ||||||||||
Mountain | 89,871 | 10.2 | 79,707 | 9.8 | ||||||||||
West South Central | 82,598 | 9.4 | 74,258 | 9.1 | ||||||||||
Other | 100,705 | 11.5 | 94,847 | 11.6 | ||||||||||
Total | $ | 878,435 | 100.0 | % | $ | 816,471 | 100.0 | % |
Mortgage Loans by Loan-to-Value Ratio | ||||||||||||||
June 30, 2017 | December 31, 2016 | |||||||||||||
Loan-to-Value Ratio | Carrying Value | Percent of Total | Carrying Value | Percent of Total | ||||||||||
(Dollars in thousands) | ||||||||||||||
0% - 50% | $ | 318,429 | 36.2 | % | $ | 274,953 | 33.7 | % | ||||||
51% - 60% | 215,223 | 24.5 | 210,555 | 25.8 | ||||||||||
61% - 70% | 258,571 | 29.5 | 233,216 | 28.5 | ||||||||||
71% - 80% | 56,244 | 6.4 | 67,607 | 8.3 | ||||||||||
81% - 90% | 29,968 | 3.4 | 30,140 | 3.7 | ||||||||||
Total | $ | 878,435 | 100.0 | % | $ | 816,471 | 100.0 | % |
Mortgage Loans by Year of Origination | ||||||||||||||
June 30, 2017 | December 31, 2016 | |||||||||||||
Year of Origination | Carrying Value | Percent of Total | Carrying Value | Percent of Total | ||||||||||
(Dollars in thousands) | ||||||||||||||
2017 | $ | 89,960 | 10.2 | % | $ | — | — | % | ||||||
2016 | 156,747 | 17.9 | 158,817 | 19.4 | ||||||||||
2015 | 147,319 | 16.8 | 149,302 | 18.3 | ||||||||||
2014 | 79,335 | 9.0 | 80,771 | 9.9 | ||||||||||
2013 | 68,530 | 7.8 | 69,887 | 8.6 | ||||||||||
2012 and prior | 336,544 | 38.3 | 357,694 | 43.8 | ||||||||||
Total | $ | 878,435 | 100.0 | % | $ | 816,471 | 100.0 | % |
Impaired Mortgage Loans | |||||||
June 30, 2017 | December 31, 2016 | ||||||
(Dollars in thousands) | |||||||
Unpaid principal balance | $ | 19,199 | $ | 21,459 | |||
Less: | |||||||
Related allowance | (615 | ) | (713 | ) | |||
Carrying value of impaired mortgage loans | $ | 18,584 | $ | 20,746 |
Allowance on Mortgage Loans | |||||||
Six months ended June 30, | |||||||
2017 | 2016 | ||||||
(Dollars in thousands) | |||||||
Balance at beginning of period | $ | 713 | $ | 851 | |||
Recoveries | (98 | ) | (7 | ) | |||
Balance at end of period | $ | 615 | $ | 844 |
LIHTC Equity Income (Loss), Net of Related Income Taxes | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Equity losses from LIHTC | $ | (2,938 | ) | $ | (2,508 | ) | $ | (4,743 | ) | $ | (4,047 | ) | ||||
Income tax benefits: | ||||||||||||||||
Tax benefits from equity losses | 1,028 | 878 | 1,660 | 1,416 | ||||||||||||
Investment tax credits | 3,568 | 3,552 | 7,097 | 7,002 | ||||||||||||
Equity income from LIHTC, net of related income tax benefits | $ | 1,658 | $ | 1,922 | $ | 4,014 | $ | 4,371 |
LIHTC Commitments by Year | |||
June 30, 2017 | |||
(Dollars in thousands) | |||
2017 | $ | 1,478 | |
2018 | 299 | ||
2019-2025 | 878 | ||
Total | $ | 2,655 |
VIE Investments by Category | |||||||||||||||
June 30, 2017 | December 31, 2016 | ||||||||||||||
Carrying Value | Maximum Exposure to Loss | Carrying Value | Maximum Exposure to Loss | ||||||||||||
(Dollars in thousands) | |||||||||||||||
LIHTC | $ | 87,647 | $ | 90,302 | $ | 91,255 | $ | 95,058 | |||||||
Investment companies | 20,912 | 47,704 | 23,379 | 45,569 | |||||||||||
Real estate limited partnerships | 11,303 | 23,755 | 10,790 | 14,558 | |||||||||||
Other | 807 | 2,055 | 429 | 2,034 | |||||||||||
Total | $ | 120,669 | $ | 163,816 | $ | 125,853 | $ | 157,219 |
Derivatives Instruments by Type | |||||||
June 30, 2017 | December 31, 2016 | ||||||
(Dollars in thousands) | |||||||
Assets | |||||||
Freestanding derivatives: | |||||||
Call options (reported in other investments) | $ | 11,790 | $ | 9,360 | |||
Embedded derivatives: | |||||||
Modified coinsurance (reported in reinsurance recoverable) | 2,151 | 3,411 | |||||
Interest-only security (reported in fixed maturities) | 2,672 | 3,374 | |||||
Total assets | $ | 16,613 | $ | 16,145 | |||
Liabilities | |||||||
Embedded derivatives: | |||||||
Indexed annuity and universal life products (reported in liability for future policy benefits) | $ | 22,295 | $ | 15,778 | |||
Modified coinsurance agreements (reported in other liabilities) | 276 | 114 | |||||
Total liabilities | $ | 22,571 | $ | 15,892 |
Derivative Income (Loss) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Call options | $ | 1,400 | $ | 304 | $ | 3,765 | $ | (111 | ) | ||||||
Change in fair value of embedded derivatives: | |||||||||||||||
Modified coinsurance agreements | (12 | ) | 666 | (1,422 | ) | 827 | |||||||||
Interest-only security | (174 | ) | (710 | ) | (195 | ) | (465 | ) | |||||||
Indexed annuity and universal life products | (91 | ) | (1,521 | ) | 318 | (2,689 | ) | ||||||||
Total income (loss) from derivatives | $ | 1,123 | $ | (1,261 | ) | $ | 2,466 | $ | (2,438 | ) |
Fair Values and Carrying Values | |||||||||||||||
June 30, 2017 | December 31, 2016 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Assets | |||||||||||||||
Fixed maturities - available for sale | $ | 7,212,546 | $ | 7,212,546 | $ | 7,008,790 | $ | 7,008,790 | |||||||
Equity securities - available for sale | 131,435 | 131,435 | 132,968 | 132,968 | |||||||||||
Mortgage loans | 878,435 | 904,209 | 816,471 | 840,337 | |||||||||||
Policy loans | 188,630 | 233,461 | 188,254 | 230,656 | |||||||||||
Other investments | 12,642 | 13,802 | 9,809 | 11,272 | |||||||||||
Cash, cash equivalents and short-term investments | 73,430 | 73,430 | 49,931 | 49,931 | |||||||||||
Reinsurance recoverable | 2,151 | 2,151 | 3,411 | 3,411 | |||||||||||
Assets held in separate accounts | 625,971 | 625,971 | 597,072 | 597,072 |
Fair Values and Carrying Values (continued) | |||||||||||||||
June 30, 2017 | December 31, 2016 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Liabilities | |||||||||||||||
Future policy benefits | $ | 4,096,486 | $ | 4,042,680 | $ | 4,044,148 | $ | 3,903,177 | |||||||
Supplementary contracts without life contingencies | 328,904 | 335,425 | 330,232 | 330,633 | |||||||||||
Advance premiums and other deposits | 260,025 | 260,025 | 257,171 | 257,171 | |||||||||||
Long-term debt | 97,000 | 76,940 | 97,000 | 67,599 | |||||||||||
Other liabilities | 276 | 276 | 114 | 114 | |||||||||||
Liabilities related to separate accounts | 625,971 | 623,191 | 597,072 | 593,760 |
• | Level 1 - Fair values are based on unadjusted quoted prices in active markets for identical assets or liabilities. |
• | Level 2 - Fair values are based on inputs, other than quoted prices from active markets, that are observable for the asset or liability, either directly or indirectly. |
• | Level 3 - Fair values are based on significant unobservable inputs for the asset or liability. |
• | We follow a “pricing waterfall” policy, which establishes the pricing source preference for a particular security or security type. The order of preference is based on our evaluation of the valuation methods used, the source's knowledge of the instrument and the reliability of the prices we have received from the source in the past. Our valuation policy dictates that fair values are initially sought from third party pricing services. If our review of the prices received from our preferred source indicates an inaccurate price, we will use an alternative source within the waterfall and document the decision. In the event that fair values are not available from one of our external pricing services or upon review of the fair values provided it is determined that they may not be reflective of market conditions, those securities are submitted to brokers familiar with the security to obtain non-binding price quotes. Broker quotes tend to be used in limited circumstances such as for newly issued, private placement corporate bonds and other instruments that are not widely traded. For those securities for which an externally provided fair value is not available, we use cash flow modeling techniques to estimate fair value. |
• | We evaluate third party pricing source estimation methodologies to assess whether they will provide a fair value that approximates a market exit price. |
• | We perform an overall analysis of portfolio fair value movement against general movements in interest rates and spreads. |
• | We compare period-to-period price trends to detect unexpected price fluctuations based on our knowledge of the market and the particular instrument. As fluctuations are noted, we will perform further research, which may include discussions with the original pricing source or other external sources to ensure we are in agreement with the valuation. |
• | We compare prices between different pricing sources for unusual disparity. |
• | We meet at least quarterly with our Investment Committee, the group that oversees our valuation process, to discuss valuation practices and observations during the pricing process. |
Valuation of our Financial Instruments Measured on a Recurring Basis by Hierarchy Levels | |||||||||||||||
June 30, 2017 | |||||||||||||||
Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Assets | |||||||||||||||
Fixed maturities: | |||||||||||||||
Corporate securities | $ | — | $ | 3,716,055 | $ | 36,541 | $ | 3,752,596 | |||||||
Residential mortgage-backed securities | — | 438,663 | 6,019 | 444,682 | |||||||||||
Commercial mortgage-backed securities | — | 574,236 | 78,724 | 652,960 | |||||||||||
Other asset-backed securities | — | 703,612 | 98,388 | 802,000 | |||||||||||
United States Government and agencies | 9,022 | 19,252 | — | 28,274 | |||||||||||
State and political subdivisions | — | 1,532,034 | — | 1,532,034 | |||||||||||
Total fixed maturities | 9,022 | 6,983,852 | 219,672 | 7,212,546 | |||||||||||
Non-redeemable preferred stocks | — | 93,907 | 7,525 | 101,432 | |||||||||||
Common stocks | 4,035 | 25,968 | — | 30,003 | |||||||||||
Other investments | — | 11,790 | — | 11,790 | |||||||||||
Cash, cash equivalents and short-term investments | 73,430 | — | — | 73,430 | |||||||||||
Reinsurance recoverable | — | 2,151 | — | 2,151 | |||||||||||
Assets held in separate accounts | 625,971 | — | — | 625,971 | |||||||||||
Total assets | $ | 712,458 | $ | 7,117,668 | $ | 227,197 | $ | 8,057,323 | |||||||
Liabilities | |||||||||||||||
Future policy benefits - indexed product embedded derivatives | $ | — | $ | — | $ | 22,295 | $ | 22,295 | |||||||
Other liabilities | — | 276 | — | 276 | |||||||||||
Total liabilities | $ | — | $ | 276 | $ | 22,295 | $ | 22,571 |
Valuation of our Financial Instruments Measured on a Recurring Basis by Hierarchy Levels | |||||||||||||||
December 31, 2016 | |||||||||||||||
Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Assets | |||||||||||||||
Fixed maturities: | |||||||||||||||
Corporate securities | $ | — | $ | 3,649,536 | $ | 59,119 | $ | 3,708,655 | |||||||
Residential mortgage-backed securities | — | 422,300 | — | 422,300 | |||||||||||
Commercial mortgage-backed securities | — | 494,520 | 81,434 | 575,954 | |||||||||||
Other asset-backed securities | — | 716,282 | 54,368 | 770,650 | |||||||||||
United States Government and agencies | 11,943 | 20,129 | — | 32,072 | |||||||||||
State and political subdivisions | — | 1,499,159 | — | 1,499,159 | |||||||||||
Total fixed maturities | 11,943 | 6,801,926 | 194,921 | 7,008,790 | |||||||||||
Non-redeemable preferred stocks | — | 95,006 | 7,411 | 102,417 | |||||||||||
Common stocks | 3,056 | 27,495 | — | 30,551 | |||||||||||
Other investments | — | 9,360 | — | 9,360 | |||||||||||
Cash, cash equivalents and short-term investments | 49,931 | — | — | 49,931 | |||||||||||
Reinsurance recoverable | — | 3,411 | — | 3,411 | |||||||||||
Assets held in separate accounts | 597,072 | — | — | 597,072 | |||||||||||
Total assets | $ | 662,002 | $ | 6,937,198 | $ | 202,332 | $ | 7,801,532 | |||||||
Liabilities | |||||||||||||||
Future policy benefits - indexed product embedded derivatives | $ | — | $ | — | $ | 15,778 | $ | 15,778 | |||||||
Other liabilities | — | 114 | — | 114 | |||||||||||
Total liabilities | $ | — | $ | 114 | $ | 15,778 | $ | 15,892 |
Level 3 Fixed Maturities by Valuation Source - Recurring Basis | |||||||||||
June 30, 2017 | |||||||||||
Third-party vendors | Priced internally | Total | |||||||||
(Dollars in thousands) | |||||||||||
Corporate securities | $ | 7,493 | $ | 29,048 | $ | 36,541 | |||||
Residential mortgage-backed securities | 6,019 | — | 6,019 | ||||||||
Commercial mortgage-backed securities | 78,724 | — | 78,724 | ||||||||
Other asset-backed securities | 88,086 | 10,302 | 98,388 | ||||||||
Total | $ | 180,322 | $ | 39,350 | $ | 219,672 | |||||
Percent of total | 82.1 | % | 17.9 | % | 100.0 | % |
December 31, 2016 | |||||||||||
Third-party vendors | Priced internally | Total | |||||||||
(Dollars in thousands) | |||||||||||
Corporate securities | $ | 17,684 | $ | 41,435 | $ | 59,119 | |||||
Commercial mortgage-backed securities | 81,434 | — | 81,434 | ||||||||
Other asset-backed securities | 39,308 | 15,060 | 54,368 | ||||||||
Total | $ | 138,426 | $ | 56,495 | $ | 194,921 | |||||
Percent of total | 71.0 | % | 29.0 | % | 100.0 | % |
Quantitative Information about Level 3 Fair Value Measurements - Recurring Basis | |||||||||
June 30, 2017 | |||||||||
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||||||
(Dollars in thousands) | |||||||||
Assets | |||||||||
Corporate securities | $ | 27,586 | Discounted cash flow | Credit spread | 0.87% - 6.21% (3.74%) | ||||
Commercial mortgage-backed | 73,002 | Discounted cash flow | Credit spread | 1.40% - 4.10% (2.50%) | |||||
Other asset-backed securities | 7,569 | Discounted cash flow | Credit spread | 1.51% - 4.63% (3.25%) | |||||
Non-redeemable preferred stocks | 7,525 | Discounted cash flow | Credit spread | 3.32% (3.32%) | |||||
Total assets | $ | 115,682 | |||||||
Liabilities | |||||||||
Future policy benefits - indexed product embedded derivatives | $ | 22,295 | Discounted cash flow | Credit risk Risk margin | 0.50% - 1.75% (1.10%) 0.15% - 0.40% (0.25%) |
December 31, 2016 | |||||||||
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||||||
(Dollars in thousands) | |||||||||
Assets | |||||||||
Corporate securities | $ | 47,398 | Discounted cash flow | Credit spread | 0.58% - 4.25% (2.81%) | ||||
Commercial mortgage-backed | 81,434 | Discounted cash flow | Credit spread | 1.10% - 4.15% (2.95%) | |||||
Other asset-backed securities | 6,461 | Discounted cash flow | Credit spread | 1.08% - 4.87% (3.45%) | |||||
Non-redeemable preferred stocks | 7,411 | Discounted cash flow | Credit spread | 4.05% (4.05%) | |||||
Total assets | $ | 142,704 | |||||||
Liabilities | |||||||||
Future policy benefits - indexed product embedded derivatives | $ | 15,778 | Discounted cash flow | Credit risk Risk margin | 0.80% - 2.00% (1.25%) 0.15% - 0.40% (0.25%) |
Level 3 Financial Instruments Changes in Fair Value - Recurring Basis | |||||||||||||||||||||||||||||||||||
June 30, 2017 | |||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses), net | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2016 | Purchases | Disposals | Included in net income | Included in other compre-hensive income | Transfers into Level 3 (1) | Transfers out of Level 3 (1) | Amort-ization included in net income | Balance, June 30, 2017 | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Corporate securities | $ | 59,119 | $ | — | $ | (3,311 | ) | $ | — | $ | (778 | ) | $ | 4,408 | $ | (22,877 | ) | $ | (20 | ) | $ | 36,541 | |||||||||||||
Residential mortgage-backed securities | — | 21,326 | — | — | (1 | ) | — | (15,307 | ) | 1 | 6,019 | ||||||||||||||||||||||||
Commercial mortgage-backed securities | 81,434 | 5,723 | (394 | ) | — | 6,547 | — | (14,544 | ) | (42 | ) | 78,724 | |||||||||||||||||||||||
Other asset-backed securities | 54,368 | 63,542 | (3,921 | ) | — | 269 | 10,959 | (26,817 | ) | (12 | ) | 98,388 | |||||||||||||||||||||||
Non-redeemable preferred stocks | 7,411 | — | — | — | 114 | — | — | — | 7,525 | ||||||||||||||||||||||||||
Total assets | $ | 202,332 | $ | 90,591 | $ | (7,626 | ) | $ | — | $ | 6,151 | $ | 15,367 | $ | (79,545 | ) | $ | (73 | ) | $ | 227,197 | ||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Future policy benefits - indexed product embedded derivatives | $ | 15,778 | $ | 3,566 | $ | (909 | ) | $ | 3,860 | $ | — | $ | — | $ | — | $ | — | $ | 22,295 |
June 30, 2016 | |||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses), net | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2015 | Purchases | Disposals | Included in net income | Included in other compre-hensive income | Transfers into Level 3 (1) | Transfers out of Level 3 (1) | Amort-ization included in net income | Balance, June 30, 2016 | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Corporate securities | $ | 49,076 | $ | 2,000 | $ | (3,673 | ) | $ | — | $ | (778 | ) | $ | 26,738 | $ | (9,124 | ) | $ | (31 | ) | $ | 64,208 | |||||||||||||
Residential mortgage-backed securities | 3,729 | — | (3,722 | ) | — | (137 | ) | — | — | 130 | — | ||||||||||||||||||||||||
Commercial mortgage-backed securities | 88,180 | 15,962 | (815 | ) | — | 6,259 | — | (16,418 | ) | 65 | 93,233 | ||||||||||||||||||||||||
Other asset-backed securities | 55,557 | 23,920 | (1,291 | ) | — | 410 | 13,698 | (40,276 | ) | 9 | 52,027 | ||||||||||||||||||||||||
United States Government and agencies | 8,726 | — | — | — | 563 | — | — | 4 | 9,293 | ||||||||||||||||||||||||||
State and political subdivisions | — | — | — | — | 108 | 2,393 | (2,501 | ) | — | — | |||||||||||||||||||||||||
Non-redeemable preferred stocks | 7,471 | — | — | — | (103 | ) | — | — | — | 7,368 | |||||||||||||||||||||||||
Total assets | $ | 212,739 | $ | 41,882 | $ | (9,501 | ) | $ | — | $ | 6,322 | $ | 42,829 | $ | (68,319 | ) | $ | 177 | $ | 226,129 | |||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Future policy benefits - indexed product embedded derivatives | $ | 9,374 | $ | 2,852 | $ | (469 | ) | $ | 1,343 | $ | — | $ | — | $ | — | $ | — | $ | 13,100 |
(1) | Transfers into Level 3 represent assets previously priced using an external pricing service with access to observable inputs no longer available and therefore, were priced using non-binding broker quotes. Transfers out of Level 3 include those assets that we are now able to obtain pricing from a third party pricing vendor that uses observable inputs. The fair values of newly issued securities often require additional estimation until a market is created, which is generally within a few months after issuance. Once a market is created, as was the case for the majority of the security transfers out of the Level 3 category above, Level 2 valuation sources become available. There were no transfers between Level 1 and Level 2 during the periods presented above. |
Valuation of our Financial Instruments Not Reported at Fair Value by Hierarchy Levels | |||||||||||||||
June 30, 2017 | |||||||||||||||
Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Assets | |||||||||||||||
Mortgage loans | $ | — | $ | — | $ | 904,209 | $ | 904,209 | |||||||
Policy loans | — | — | 233,461 | 233,461 | |||||||||||
Other investments | — | — | 2,012 | 2,012 | |||||||||||
Total assets | $ | — | $ | — | $ | 1,139,682 | $ | 1,139,682 | |||||||
Liabilities | |||||||||||||||
Future policy benefits | $ | — | $ | — | $ | 4,020,385 | $ | 4,020,385 | |||||||
Supplementary contracts without life contingencies | — | — | 335,425 | 335,425 | |||||||||||
Advance premiums and other deposits | — | — | 260,025 | 260,025 | |||||||||||
Long-term debt | — | — | 76,940 | 76,940 | |||||||||||
Liabilities related to separate accounts | — | — | 623,191 | 623,191 | |||||||||||
Total liabilities | $ | — | $ | — | $ | 5,315,966 | $ | 5,315,966 |
December 31, 2016 | |||||||||||||||
Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Assets | |||||||||||||||
Mortgage loans | $ | — | $ | — | $ | 840,337 | $ | 840,337 | |||||||
Policy loans | — | — | 230,656 | 230,656 | |||||||||||
Other investments | 1,912 | 1,912 | |||||||||||||
Total assets | $ | — | $ | — | $ | 1,072,905 | $ | 1,072,905 | |||||||
Liabilities | |||||||||||||||
Future policy benefits | $ | — | $ | — | $ | 3,887,399 | $ | 3,887,399 | |||||||
Supplementary contracts without life contingencies | — | — | 330,633 | 330,633 | |||||||||||
Advance premiums and other deposits | — | — | 257,171 | 257,171 | |||||||||||
Long-term debt | — | — | 67,599 | 67,599 | |||||||||||
Liabilities related to separate accounts | — | — | 593,760 | 593,760 | |||||||||||
Total liabilities | $ | — | $ | — | $ | 5,136,562 | $ | 5,136,562 |
Components of Net Periodic Pension Cost for FBL and Affiliates Combined - Multiemployer Plan | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Service cost | $ | 1,388 | $ | 1,448 | $ | 2,776 | $ | 2,896 | |||||||
Interest cost | 3,531 | 3,612 | 7,062 | 7,224 | |||||||||||
Expected return on assets | (4,796 | ) | (4,466 | ) | (9,592 | ) | (8,932 | ) | |||||||
Amortization of prior service cost | 33 | 36 | 66 | 72 | |||||||||||
Amortization of actuarial loss | 2,530 | 2,358 | 5,060 | 4,716 | |||||||||||
Net periodic pension cost | $ | 2,686 | $ | 2,988 | $ | 5,372 | $ | 5,976 | |||||||
FBL Financial Group, Inc. share of net periodic pension costs | $ | 851 | $ | 952 | $ | 1,702 | $ | 1,904 |
Components of Net Periodic Pension Cost for FBL and Affiliates Combined - Other Plans | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Service cost | $ | 109 | $ | 84 | $ | 218 | $ | 168 | |||||||
Interest cost | 251 | 241 | 502 | 482 | |||||||||||
Amortization of actuarial loss | 293 | 230 | 586 | 460 | |||||||||||
Net periodic pension cost | $ | 653 | $ | 555 | $ | 1,306 | $ | 1,110 | |||||||
FBL Financial Group, Inc. share of net periodic pension costs | $ | 388 | $ | 315 | $ | 776 | $ | 630 |
Reconciliation of Outstanding Common Stock | ||||||||||||||||||||
Class A | Class B | Total | ||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Outstanding at January 1, 2016 | 24,796,763 | $ | 149,248 | 11,413 | $ | 72 | 24,808,176 | $ | 149,320 | |||||||||||
Issuance of common stock under compensation plans | 62,821 | 2,314 | — | — | 62,821 | 2,314 | ||||||||||||||
Purchase of common stock | (10,322 | ) | (63 | ) | — | — | (10,322 | ) | (63 | ) | ||||||||||
Outstanding at June 30, 2016 | 24,849,262 | $ | 151,499 | 11,413 | $ | 72 | 24,860,675 | $ | 151,571 | |||||||||||
Outstanding at January 1, 2017 | 24,882,542 | $ | 152,903 | 11,413 | $ | 72 | 24,893,955 | $ | 152,975 | |||||||||||
Issuance of common stock under compensation plans | 34,613 | 440 | — | — | 34,613 | 440 | ||||||||||||||
Outstanding at June 30, 2017 | 24,917,155 | $ | 153,343 | 11,413 | $ | 72 | 24,928,568 | $ | 153,415 |
Accumulated Other Comprehensive Income, Net of Tax and Other Offsets | |||||||||||||||
Unrealized Net Investment Gains (Losses) on Available For Sale Securities (1) | Accumulated Non-Credit Impairment Losses | Underfunded Status of Postretirement Benefit Plans | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Balance at January 1, 2016 | $ | 120,787 | $ | (114 | ) | $ | (6,141 | ) | $ | 114,532 | |||||
Other comprehensive loss before reclassifications | 159,244 | 2,730 | — | 161,974 | |||||||||||
Reclassification adjustments | 284 | (952 | ) | 284 | (384 | ) | |||||||||
Balance at June 30, 2016 | $ | 280,315 | $ | 1,664 | $ | (5,857 | ) | $ | 276,122 | ||||||
Balance at January 1, 2017 | $ | 156,963 | $ | 311 | $ | (7,719 | ) | $ | 149,555 | ||||||
Other comprehensive income before reclassifications | 61,285 | 1,201 | — | 62,486 | |||||||||||
Reclassification adjustments | (55 | ) | — | 371 | 316 | ||||||||||
Balance at June 30, 2017 | $ | 218,193 | $ | 1,512 | $ | (7,348 | ) | $ | 212,357 |
(1) | Includes the impact of taxes, deferred acquisition costs, value of insurance in force acquired, unearned revenue reserves and policyholder liabilities. See Note 2 for further information. |
Accumulated Other Comprehensive Income Reclassification Adjustments | |||||||||||||||
Six months ended June 30, 2017 | |||||||||||||||
Unrealized Net Investment Gains (Losses) on Available For Sale Securities (1) | Accumulated Non-Credit Impairment Losses (1) | Underfunded Status of Postretirement Benefit Plans | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Realized capital gains on sales of investments | $ | (174 | ) | $ | — | $ | — | $ | (174 | ) | |||||
Adjustments for assumed changes in deferred policy acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities | 89 | — | — | 89 | |||||||||||
Other expenses - change in unrecognized postretirement items: | |||||||||||||||
Net actuarial loss | — | — | 571 | 571 | |||||||||||
Reclassifications before income taxes | (85 | ) | — | 571 | 486 | ||||||||||
Income taxes | 30 | — | (200 | ) | (170 | ) | |||||||||
Reclassification adjustments | $ | (55 | ) | $ | — | $ | 371 | $ | 316 |
Six months ended June 30, 2016 | |||||||||||||||
Unrealized Net Investment Gains (Losses) on Available For Sale Securities (1) | Accumulated Non-Credit Impairment Losses (1) | Underfunded Status of Postretirement Benefit Plans | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Realized capital losses on sales of investments | $ | 999 | $ | — | $ | — | $ | 999 | |||||||
Adjustments for assumed changes in deferred policy acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities | (562 | ) | 58 | — | (504 | ) | |||||||||
Other than temporary impairment losses | — | (1,522 | ) | — | (1,522 | ) | |||||||||
Other expenses - change in unrecognized postretirement items: | |||||||||||||||
Net actuarial loss | — | — | 437 | 437 | |||||||||||
Reclassifications before income taxes | 437 | (1,464 | ) | 437 | (590 | ) | |||||||||
Income taxes | (153 | ) | 512 | (153 | ) | 206 | |||||||||
Reclassification adjustments | $ | 284 | $ | (952 | ) | $ | 284 | $ | (384 | ) |
(1) | See Note 2 for further information. |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||
Numerator: | |||||||||||||||
Net income attributable to FBL Financial Group, Inc. | $ | 32,291 | $ | 24,380 | $ | 58,724 | $ | 50,326 | |||||||
Less: Dividends on Series B preferred stock | 37 | 37 | 75 | 75 | |||||||||||
Income available to common stockholders | $ | 32,254 | $ | 24,343 | $ | 58,649 | $ | 50,251 | |||||||
Denominator: | |||||||||||||||
Weighted average shares - basic | 25,031,312 | 24,987,878 | 25,033,307 | 24,969,727 | |||||||||||
Effect of dilutive securities - stock-based compensation | 19,663 | 42,566 | 20,777 | 50,358 | |||||||||||
Weighted average shares - diluted | 25,050,975 | 25,030,444 | 25,054,084 | 25,020,085 | |||||||||||
Earnings per common share | $ | 1.29 | $ | 0.97 | $ | 2.34 | $ | 2.01 | |||||||
Earnings per common share - assuming dilution: | $ | 1.29 | $ | 0.97 | $ | 2.34 | $ | 2.01 |
• | settlements or judgments arising from lawsuits, net of any recoveries from third parties, |
• | the cumulative effect of changes in accounting principles and |
• | discontinued operations. |
Reconciliation Between Net Income and Operating Income | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Net income attributable to FBL Financial Group, Inc. | $ | 32,291 | $ | 24,380 | $ | 58,724 | $ | 50,326 | |||||||
Operating income adjustments: | |||||||||||||||
Realized gains/losses on investments (1) | (788 | ) | 1,147 | (234 | ) | 1,544 | |||||||||
Change in net unrealized gains/losses on derivatives (1) | (686 | ) | 149 | (685 | ) | 124 | |||||||||
Operating income | $ | 30,817 | $ | 25,676 | $ | 57,805 | $ | 51,994 |
Financial Information Concerning our Operating Segments | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Pre-tax operating income: | |||||||||||||||
Annuity | $ | 18,174 | $ | 16,348 | $ | 34,595 | $ | 33,496 | |||||||
Life Insurance | 17,631 | 14,473 | 31,380 | 28,544 | |||||||||||
Corporate and Other | 4,195 | 1,972 | 8,357 | 4,461 | |||||||||||
Total pre-tax operating income | 40,000 | 32,793 | 74,332 | 66,501 | |||||||||||
Income taxes on operating income | (9,183 | ) | (7,117 | ) | (16,527 | ) | (14,507 | ) | |||||||
Operating income | $ | 30,817 | $ | 25,676 | $ | 57,805 | $ | 51,994 | |||||||
Operating revenues: | |||||||||||||||
Annuity | $ | 56,833 | $ | 53,954 | $ | 111,884 | $ | 106,133 | |||||||
Life Insurance | 107,068 | 104,724 | 211,211 | 208,327 | |||||||||||
Corporate and Other | 24,104 | 23,283 | 47,770 | 46,707 | |||||||||||
188,005 | 181,961 | 370,865 | 361,167 | ||||||||||||
Net realized gains/losses on investments (1) | 794 | (2,261 | ) | 313 | (2,868 | ) | |||||||||
Change in net unrealized gains/losses on derivatives (1) | 198 | 1,585 | (261 | ) | 2,652 | ||||||||||
Consolidated revenues | $ | 188,997 | $ | 181,285 | $ | 370,917 | $ | 360,951 |
(1) | Amounts are net of adjustments, as applicable, to amortization of unearned revenue reserves, deferred acquisition costs and value of insurance in force acquired, as well as changes in interest sensitive product reserves and income taxes attributable to these items. |
Equity Income (Loss) by Operating Segment | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Pre-tax equity income (loss): | |||||||||||||||
Life Insurance | $ | 1,289 | $ | — | $ | 2,455 | $ | — | |||||||
Corporate and Other | (2,279 | ) | (1,446 | ) | (3,903 | ) | (2,674 | ) | |||||||
Total pre-tax equity loss | (990 | ) | (1,446 | ) | (1,448 | ) | (2,674 | ) | |||||||
Income taxes | 3,914 | 4,059 | 7,603 | 7,939 | |||||||||||
Equity income, net of related income taxes | $ | 2,924 | $ | 2,613 | $ | 6,155 | $ | 5,265 |
Reconciliation of Traditional Life Insurance Premiums, Net of Reinsurance | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Traditional and universal life insurance premiums collected | $ | 75,162 | $ | 70,211 | $ | 148,735 | $ | 141,924 | |||||||
Premiums collected on interest sensitive products | (26,164 | ) | (21,173 | ) | (50,879 | ) | (42,209 | ) | |||||||
Traditional life insurance premiums collected | 48,998 | 49,038 | 97,856 | 99,715 | |||||||||||
Change in due premiums and other | 1,264 | 567 | 840 | 28 | |||||||||||
Traditional life insurance premiums as included in the Consolidated Statements of Operations | $ | 50,262 | $ | 49,605 | $ | 98,696 | $ | 99,743 |
Interest Sensitive Product Charges by Segment | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Annuity | |||||||||||||||
Surrender charges and other | $ | 1,202 | $ | 932 | $ | 2,337 | $ | 1,874 | |||||||
Life Insurance | |||||||||||||||
Administration charges | $ | 3,899 | $ | 3,583 | $ | 7,764 | $ | 7,087 | |||||||
Cost of insurance charges | 12,369 | 12,042 | 24,404 | 23,867 | |||||||||||
Surrender charges | 469 | 310 | 994 | 526 | |||||||||||
Amortization of policy initiation fees | 620 | 720 | 1,284 | 948 | |||||||||||
Total | $ | 17,357 | $ | 16,655 | $ | 34,446 | $ | 32,428 | |||||||
Corporate and Other | |||||||||||||||
Administration charges | $ | 1,377 | $ | 1,478 | $ | 2,802 | $ | 2,919 | |||||||
Cost of insurance charges | 7,269 | 7,433 | 14,594 | 14,949 | |||||||||||
Surrender charges | 27 | 47 | 79 | 73 | |||||||||||
Separate account charges | 2,027 | 1,993 | 4,029 | 3,971 | |||||||||||
Amortization of policy initiation fees | 197 | 489 | 370 | 924 | |||||||||||
Total | $ | 10,897 | $ | 11,440 | $ | 21,874 | $ | 22,836 | |||||||
Interest sensitive product charges as included in the Consolidated Statements of Operations | $ | 29,456 | $ | 29,027 | $ | 58,657 | $ | 57,138 |
• | Gross Domestic Product increased at an annual rate of 2.6% during the second quarter of 2017 based on recent estimates. |
• | U.S. unemployment was estimated to be 4.4% at the end of the second quarter of 2017. |
• | U.S. net farm income is forecast to decrease 8.7% and farm real estate values are forecast to decrease 0.3% during 2017 according to recent U.S. Department of Agriculture forecasts. |
• | The U.S. 10-year Treasury yield decreased during the second quarter of 2017 to 2.31% at June 30, 2017 from 2.40% at March 31, 2017. |
• | Continued uncertainty as to actions the United States government will take to address the national debt, including potential actions to change the tax advantages of life insurance. |
• | The ultimate resolution of the Department of Labor's new rules that expand our fiduciary responsibilities for sales of insurance products to be used in retirement plans. See Part II, Item 1A for further discussion. |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||
Net income attributable to FBL Financial Group, Inc. | $ | 32,291 | $ | 24,380 | 32 | % | $ | 58,724 | $ | 50,326 | 17 | % | |||||||||
Operating income adjustments: | |||||||||||||||||||||
Realized gains/losses on investments (1) | (788 | ) | 1,147 | (169 | )% | (234 | ) | 1,544 | (115 | )% | |||||||||||
Change in net unrealized gains/losses on derivatives (1) | (686 | ) | 149 | (560 | )% | (685 | ) | 124 | (652 | )% | |||||||||||
Operating income (2) | $ | 30,817 | $ | 25,676 | 20 | % | $ | 57,805 | $ | 51,994 | 11 | % | |||||||||
Pre-tax operating income: | |||||||||||||||||||||
Annuity segment | $ | 18,174 | $ | 16,348 | 11 | % | $ | 34,595 | $ | 33,496 | 3 | % | |||||||||
Life Insurance segment | 17,631 | 14,473 | 22 | % | 31,380 | 28,544 | 10 | % | |||||||||||||
Corporate and Other segment | 4,195 | 1,972 | 113 | % | 8,357 | 4,461 | 87 | % | |||||||||||||
Total pre-tax operating income | 40,000 | 32,793 | 22 | % | 74,332 | 66,501 | 12 | % | |||||||||||||
Income taxes on operating income | (9,183 | ) | (7,117 | ) | 29 | % | (16,527 | ) | (14,507 | ) | 14 | % | |||||||||
Operating income (2) | $ | 30,817 | $ | 25,676 | 20 | % | $ | 57,805 | $ | 51,994 | 11 | % | |||||||||
Earnings per common share - assuming dilution | $ | 1.29 | $ | 0.97 | 33 | % | $ | 2.34 | $ | 2.01 | 16 | % | |||||||||
Operating income per common share - assuming dilution (2) | 1.23 | 1.02 | 21 | % | 2.30 | 2.08 | 11 | % | |||||||||||||
Effective tax rate on operating income | 23 | % | 22 | % | 22 | % | 22 | % | |||||||||||||
Average invested assets, at amortized cost (3) | $ | 8,001,013 | $ | 7,647,041 | 5 | % | |||||||||||||||
Annualized yield on average invested assets (3) | 5.35 | % | 5.44 | % |
(1) | Amounts are net of adjustments, as applicable, to amortization of unearned revenue reserves, deferred acquisition costs and value of insurance in force acquired, as well as changes in interest sensitive product reserves and income taxes attributable to these items. |
(2) | Operating income is a non-GAAP measure of earnings, see Note 8 to our consolidated financial statements. |
(3) | Average invested assets and annualized yield including, beginning in 2017, investments held as securities and indebtedness of related parties; 2016 amounts have been adjusted for comparability. |
Annuity Segment | |||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||
Interest sensitive product charges | $ | 1,202 | $ | 932 | 29 | % | $ | 2,337 | $ | 1,874 | 25 | % | |||||||||
Net investment income | 55,631 | 53,022 | 5 | % | 109,547 | 104,259 | 5 | % | |||||||||||||
Total operating revenues | 56,833 | 53,954 | 5 | % | 111,884 | 106,133 | 5 | % | |||||||||||||
Benefits and expenses: | |||||||||||||||||||||
Interest sensitive product benefits | 29,865 | 27,591 | 8 | % | 59,743 | 54,077 | 10 | % | |||||||||||||
Underwriting, acquisition and insurance expenses: | |||||||||||||||||||||
Commissions net of deferrals | 483 | 523 | (8 | )% | 1,014 | 1,093 | (7 | )% | |||||||||||||
Amortization of deferred acquisition costs | 2,783 | 3,905 | (29 | )% | 5,311 | 6,243 | (15 | )% | |||||||||||||
Amortization of value of insurance in force | 170 | 372 | (54 | )% | 340 | 547 | (38 | )% | |||||||||||||
Other underwriting expenses | 5,358 | 5,215 | 3 | % | 10,881 | 10,677 | 2 | % | |||||||||||||
Total underwriting, acquisition and insurance expenses | 8,794 | 10,015 | (12 | )% | 17,546 | 18,560 | (5 | )% | |||||||||||||
Total benefits and expenses | 38,659 | 37,606 | 3 | % | 77,289 | 72,637 | 6 | % | |||||||||||||
Pre-tax operating income (1) | $ | 18,174 | $ | 16,348 | 11 | % | $ | 34,595 | $ | 33,496 | 3 | % |
Other data | |||||||||||||||||||||
Annuity premiums collected, direct (2) | $ | 76,539 | $ | 100,447 | (24 | )% | $ | 158,002 | $ | 186,122 | (15 | )% | |||||||||
Policy liabilities and accruals, end of period | 4,236,547 | 4,072,349 | 4 | % | |||||||||||||||||
Average invested assets, at amortized cost | 4,327,948 | 4,090,279 | 6 | % | |||||||||||||||||
Other investment-related income included in net investment income (3) | 2,515 | 3,064 | (18 | )% | 3,115 | 4,548 | (32 | )% | |||||||||||||
Average individual annuity account value | 3,009,171 | 2,837,274 | 6 | % | |||||||||||||||||
Earned spread on individual annuity products: | |||||||||||||||||||||
Weighted average yield on cash and invested assets | 5.20 | % | 5.34 | % | |||||||||||||||||
Weighted average interest crediting rate | 2.62 | % | 2.70 | % | |||||||||||||||||
Spread | 2.58 | % | 2.64 | % | |||||||||||||||||
Individual annuity withdrawal rate | 4.1 | % | 3.7 | % |
(1) | Pre-tax operating income is a non-GAAP measure of earnings, see Note 8 to our consolidated financial statements. |
(2) | Premiums collected is a non-GAAP measure of sales production, see Note 8 to our consolidated financial statements. |
(3) | Includes prepayment fee income and adjustments to the amortization of premium or discounts from changes in our payment speed assumptions. |
Impact of Unlocking on Pre-tax Operating Income | |||||||
Three months ended June 30, | Six months ended June 30, | ||||||
2016 | 2016 | ||||||
(Dollars in thousands) | |||||||
Amortization of deferred sales inducements reported in interest sensitive product benefits | $ | 1 | $ | 1 | |||
Amortization of deferred acquisition costs | (1,219 | ) | (1,219 | ) | |||
Amortization of value of insurance in force acquired | (194 | ) | (194 | ) | |||
Decrease to pre-tax operating income (1) | $ | (1,412 | ) | $ | (1,412 | ) |
(1) | Pre-tax operating income is a non-GAAP measure of earnings, see Note 8 to our consolidated financial statements. |
Life Insurance Segment | |||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||
Interest sensitive product charges and other income | $ | 17,370 | $ | 16,549 | 5 | % | $ | 34,310 | $ | 32,260 | 6 | % | |||||||||
Traditional life insurance premiums | 50,262 | 49,605 | 1 | % | 98,696 | 99,743 | (1 | )% | |||||||||||||
Net investment income | 39,436 | 38,570 | 2 | % | 78,205 | 76,324 | 2 | % | |||||||||||||
Total operating revenues | 107,068 | 104,724 | 2 | % | 211,211 | 208,327 | 1 | % | |||||||||||||
Benefits and expenses: | |||||||||||||||||||||
Interest sensitive product benefits: | |||||||||||||||||||||
Interest credited | 7,983 | 8,130 | (2 | )% | 16,170 | 16,396 | (1 | )% | |||||||||||||
Death benefits and other | 13,622 | 12,169 | 12 | % | 27,894 | 20,972 | 33 | % | |||||||||||||
Total interest sensitive product benefits | 21,605 | 20,299 | 6 | % | 44,064 | 37,368 | 18 | % | |||||||||||||
Traditional life insurance benefits: | |||||||||||||||||||||
Death benefits | 19,997 | 20,019 | — | % | 41,664 | 41,142 | 1 | % | |||||||||||||
Surrender and other benefits | 8,936 | 8,215 | 9 | % | 19,365 | 16,856 | 15 | % | |||||||||||||
Increase in traditional life future policy benefits | 13,678 | 15,160 | (10 | )% | 24,537 | 29,961 | (18 | )% | |||||||||||||
Total traditional life insurance benefits | 42,611 | 43,394 | (2 | )% | 85,566 | 87,959 | (3 | )% | |||||||||||||
Distributions to participating policyholders | 2,557 | 2,515 | 2 | % | 5,110 | 5,555 | (8 | )% | |||||||||||||
Underwriting, acquisition and insurance expenses: | |||||||||||||||||||||
Commission expense, net of deferrals | 4,874 | 4,338 | 12 | % | 9,777 | 8,808 | 11 | % | |||||||||||||
Amortization of deferred acquisition costs | 4,519 | 4,878 | (7 | )% | 8,430 | 10,102 | (17 | )% | |||||||||||||
Amortization of value of insurance in force | 375 | 377 | (1 | )% | 750 | 754 | (1 | )% | |||||||||||||
Other underwriting expenses | 14,185 | 14,450 | (2 | )% | 28,589 | 29,237 | (2 | )% | |||||||||||||
Total underwriting, acquisition and insurance expenses | 23,953 | 24,043 | — | % | 47,546 | 48,901 | (3 | )% | |||||||||||||
Total benefits and expenses | 90,726 | 90,251 | 1 | % | 182,286 | 179,783 | 1 | % | |||||||||||||
16,342 | 14,473 | 13 | % | 28,925 | 28,544 | 1 | % | ||||||||||||||
Equity income, before tax | 1,289 | — | N/A | 2,455 | — | N/A | |||||||||||||||
Pre-tax operating income (1) | $ | 17,631 | $ | 14,473 | 22 | % | $ | 31,380 | $ | 28,544 | 10 | % |
Life Insurance Segment - continued | |||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Other data | |||||||||||||||||||||
Life premiums collected, net of reinsurance (2) | $ | 75,162 | $ | 70,211 | 7 | % | $ | 148,735 | $ | 141,924 | 5 | % | |||||||||
Policy liabilities and accruals, end of period | 2,833,191 | 2,721,230 | 4 | % | |||||||||||||||||
Life insurance in force, end of period | 56,967,379 | 54,995,983 | 4 | % | |||||||||||||||||
Average invested assets, at amortized cost (3) | 2,900,290 | 2,790,979 | 4 | % | |||||||||||||||||
Other investment-related income included in net investment income (4) | 763 | 370 | 106 | % | 884 | 491 | 80 | % | |||||||||||||
Average interest sensitive life account value | 824,152 | 806,052 | 2 | % | |||||||||||||||||
Interest sensitive life insurance spread: | |||||||||||||||||||||
Weighted average yield on cash and invested assets (3) | 5.59 | % | 5.58 | % | |||||||||||||||||
Weighted average interest crediting rate | 3.77 | % | 3.80 | % | |||||||||||||||||
Spread | 1.82 | % | 1.78 | % | |||||||||||||||||
Life insurance lapse and surrender rates | 4.9 | % | 5.8 | % | |||||||||||||||||
Death benefits, net of reinsurance and reserves released | 21,292 | 17,753 | 20 | % | $ | 44,273 | $ | 36,455 | 21 | % |
(1) | Pre-tax operating income is a non-GAAP measure of earnings, see Note 8 to our consolidated financial statements. |
(2) | Premiums collected is a non-GAAP measure of sales production, see Note 8 to our consolidated financial statements. |
(3) | Average invested assets and weighted average yield including investments held as securities and indebtedness of related parties. |
(4) | Includes prepayment fee income and adjustments to the amortization of premium or discounts from changes in our payment speed assumptions. |
Impact of Unlocking on Pre-tax Operating Income | |||||||
Three months ended June 30, | Six months ended June 30, | ||||||
2016 | 2016 | ||||||
(Dollars in thousands) | |||||||
Amortization of unearned revenue reserve reported in interest sensitive product charges and other income | $ | 114 | $ | 114 | |||
Amortization of deferred sales inducements reported in interest sensitive product benefits | 3 | 3 | |||||
Amortization of deferred acquisition costs | (274 | ) | (274 | ) | |||
Changes in interest sensitive products reserves | (3,211 | ) | (3,211 | ) | |||
Decrease to pre-tax operating income (1) | $ | (3,368 | ) | $ | (3,368 | ) |
(1) | Pre-tax operating income is a non-GAAP measure of earnings, see Note 8 to our consolidated financial statements. |
Corporate and Other Segment | |||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||
Interest sensitive product charges | $ | 10,894 | $ | 11,425 | (5 | )% | $ | 21,872 | $ | 22,821 | (4 | )% | |||||||||
Net investment income | 8,643 | 7,545 | 15 | % | 17,411 | 15,872 | 10 | % | |||||||||||||
Other income | 4,567 | 4,313 | 6 | % | 8,487 | 8,014 | 6 | % | |||||||||||||
Total operating revenues | 24,104 | 23,283 | 4 | % | 47,770 | 46,707 | 2 | % | |||||||||||||
Benefits and expenses: | |||||||||||||||||||||
Interest sensitive product benefits | 7,894 | 9,145 | (14 | )% | 17,953 | 18,843 | (5 | )% | |||||||||||||
Underwriting, acquisition and insurance expenses: | |||||||||||||||||||||
Commission expense, net of deferrals | 812 | 822 | (1 | )% | 1,533 | 1,579 | (3 | )% | |||||||||||||
Amortization of deferred acquisition costs | 1,223 | 2,569 | (52 | )% | 1,860 | 4,557 | (59 | )% | |||||||||||||
Other underwriting expenses | 1,721 | 1,669 | 3 | % | 2,819 | 3,372 | (16 | )% | |||||||||||||
Total underwriting, acquisition and insurance expenses | 3,756 | 5,060 | (26 | )% | 6,212 | 9,508 | (35 | )% | |||||||||||||
Interest expense | 1,213 | 1,213 | — | % | 2,425 | 2,425 | — | % | |||||||||||||
Other expenses | 4,740 | 4,435 | 7 | % | 8,891 | 8,793 | 1 | % | |||||||||||||
Total benefits and expenses | 17,603 | 19,853 | (11 | )% | 35,481 | 39,569 | (10 | )% | |||||||||||||
6,501 | 3,430 | 90 | % | 12,289 | 7,138 | 72 | % | ||||||||||||||
Net income attributable to noncontrolling interest | (27 | ) | (12 | ) | 125 | % | (29 | ) | (3 | ) | 867 | % | |||||||||
Equity loss, before tax | (2,279 | ) | (1,446 | ) | 58 | % | (3,903 | ) | (2,674 | ) | 46 | % | |||||||||
Pre-tax operating income (1) | $ | 4,195 | $ | 1,972 | 113 | % | $ | 8,357 | $ | 4,461 | 87 | % |
Corporate and Other Segment - continued | |||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||
Other data | |||||||||||||||||||
Average invested assets, at amortized cost (2) | $ | 772,775 | $ | 785,782 | (2 | )% | |||||||||||||
Other investment-related income included in net investment income (3) | 117 | (289 | ) | (140 | )% | 467 | (286 | ) | (263 | )% | |||||||||
Average interest sensitive life account value | 362,195 | 348,827 | 4 | % | |||||||||||||||
Death benefits, net of reinsurance and reserves released | 4,679 | 5,914 | (21 | )% | 11,564 | 12,367 | (6 | )% | |||||||||||
Estimated impact on pre-tax income from separate account performance on amortization of deferred acquisition costs (1) | 330 | (96 | ) | (444 | )% | 1,261 | (696 | ) | (281 | )% |
(1) | Pre-tax operating income is a non-GAAP measure of earnings, see Note 8 to our consolidated financial statements. |
(2) | Average invested assets including, beginning in 2017, investments held as securities and indebtedness of related parties; the prior period amount has been adjusted for comparability. |
(3) | Includes prepayment fee income and adjustments to the amortization of premium or discounts from changes in our payment speed assumptions. |
Impact of Unlocking on Pre-tax Operating Income | |||||||
Three months ended June 30, | Six months ended June 30, | ||||||
2016 | 2016 | ||||||
(Dollars in thousands) | |||||||
Amortization of unearned revenue reserve reported in interest sensitive product charges | $ | 183 | $ | 183 | |||
Amortization of deferred sales inducements reported in interest sensitive product benefits | (13 | ) | (13 | ) | |||
Amortization of deferred acquisition costs | (1,037 | ) | (1,037 | ) | |||
Changes in certain product reserves reported in interest sensitive product benefits | (54 | ) | (54 | ) | |||
Increase (decrease) to pre-tax operating income (1) | $ | (921 | ) | $ | (921 | ) |
(1) | Pre-tax operating income is a non-GAAP measure of earnings, see Note 8 to our consolidated financial statements. |
Equity Income | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Equity income (loss): | |||||||||||||||
Low income housing tax credit partnerships | $ | (2,938 | ) | $ | (2,508 | ) | $ | (4,743 | ) | $ | (4,047 | ) | |||
Other equity method investments | 1,948 | 1,062 | 3,295 | 1,373 | |||||||||||
(990 | ) | (1,446 | ) | (1,448 | ) | (2,674 | ) | ||||||||
Income taxes: | |||||||||||||||
Taxes on equity income (loss) | 346 | 507 | 506 | 937 | |||||||||||
Investment tax credits | 3,568 | 3,552 | 7,097 | 7,002 | |||||||||||
Equity income, net of related income taxes | $ | 2,924 | $ | 2,613 | $ | 6,155 | $ | 5,265 |
Impact of Operating Income Adjustments on FBL Net Income | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Realized gains (losses) on investments | $ | 921 | $ | (2,294 | ) | $ | 452 | $ | (2,901 | ) | |||||
Change in net unrealized gains/losses on derivatives | 107 | 64 | 58 | (37 | ) | ||||||||||
Change in amortization of: | |||||||||||||||
Deferred acquisition costs | 349 | 202 | 614 | 334 | |||||||||||
Value of insurance in force acquired | — | — | — | 3 | |||||||||||
Unearned revenue reserve | (127 | ) | 33 | (139 | ) | 33 | |||||||||
Reserve change offset on interest sensitive products (1) | 1,018 | — | 428 | — | |||||||||||
Income tax offset | (794 | ) | 699 | (494 | ) | 900 | |||||||||
Net impact of operating income adjustments | $ | 1,474 | $ | (1,296 | ) | $ | 919 | $ | (1,668 | ) |
Impact of Operating Income Adjustments on FBL Net Income, continued | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Summary of adjustments noted above after offsets and income taxes: | |||||||||||||||
Net realized gains/losses on investments | $ | 788 | $ | (1,147 | ) | $ | 234 | $ | (1,544 | ) | |||||
Change in net unrealized gains/losses on derivatives | 686 | (149 | ) | 685 | (124 | ) | |||||||||
Net impact of operating income adjustments | $ | 1,474 | $ | (1,296 | ) | $ | 919 | $ | (1,668 | ) | |||||
Net impact per common share - basic | $ | 0.06 | $ | (0.05 | ) | $ | 0.04 | $ | (0.07 | ) | |||||
Net impact per common share - assuming dilution | $ | 0.06 | $ | (0.05 | ) | $ | 0.04 | $ | (0.07 | ) |
(1) | In the fourth quarter of 2016, we refined our calculation of operating income to include offsets relating to changes in interest sensitive product reserves; see Note 8 to our consolidated financial statements for additional details. These offsets, net of tax, not taken into account would have increased operating income in the second quarter of 2016 by less than $0.1 million and increased operating income for the six months ended June 30, 2016 by $0.1 million. |
Realized Gains (Losses) on Investments | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Realized gains (losses) on investments: | |||||||||||||||
Realized gains on sales | $ | 1,425 | $ | 6,108 | $ | 1,549 | $ | 7,698 | |||||||
Realized losses on sales | (504 | ) | (8,377 | ) | (1,031 | ) | (8,377 | ) | |||||||
Total other-than-temporary impairment charges | — | (25 | ) | (66 | ) | (3,744 | ) | ||||||||
Net realized investment gains (losses) | 921 | (2,294 | ) | 452 | (4,423 | ) | |||||||||
Non-credit losses included in other comprehensive income | — | — | — | 1,522 | |||||||||||
Total reported in statements of operations | $ | 921 | $ | (2,294 | ) | $ | 452 | $ | (2,901 | ) |
Investment Credit Impairment Losses Recognized in Net Income | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Residential mortgage-backed | $ | — | $ | — | $ | 66 | $ | 2,172 | |||||||
Other | — | 25 | — | 50 | |||||||||||
Total other-than-temporary impairment losses reported in net income | $ | — | $ | 25 | $ | 66 | $ | 2,222 |
Fixed Maturity Acquisitions Selected Information | ||||||||
Six months ended June 30, | ||||||||
2017 | 2016 | |||||||
(Dollars in thousands) | ||||||||
Cost of acquisitions: | ||||||||
Corporate | $ | 93,917 | $ | 144,739 | ||||
Mortgage- and asset-backed | 232,152 | 185,644 | ||||||
United States Government and agencies | 748 | 500 | ||||||
Tax-exempt municipals | 17,566 | 8,135 | ||||||
Taxable municipals | 11,715 | 15,750 | ||||||
Total | $ | 356,098 | $ | 354,768 | ||||
Effective annual yield | 4.03 | % | 4.37 | % | ||||
Credit quality | ||||||||
NAIC 1 designation | 67.9 | % | 63.0 | % | ||||
NAIC 2 designation | 32.1 | % | 37.0 | % | ||||
Weighted-average life in years | 13.0 | 12.0 |
Investment Portfolio Summary | |||||||||||||
June 30, 2017 | December 31, 2016 | ||||||||||||
Carrying Value | Percent | Carrying Value | Percent | ||||||||||
(Dollars in thousands) | |||||||||||||
Fixed maturities - available for sale: | |||||||||||||
Public | $ | 5,475,416 | 64.8 | % | $ | 5,320,670 | 65.2 | % | |||||
144A private placement | 1,498,696 | 17.7 | 1,442,589 | 17.6 | |||||||||
Private placement | 238,434 | 2.8 | 245,531 | 3.0 | |||||||||
Total fixed maturities - available for sale | 7,212,546 | 85.3 | 7,008,790 | 85.8 | |||||||||
Equity securities | 131,435 | 1.6 | 132,968 | 1.6 | |||||||||
Mortgage loans | 878,435 | 10.3 | 816,471 | 10.0 | |||||||||
Real estate | 1,543 | — | 1,955 | — | |||||||||
Policy loans | 188,630 | 2.2 | 188,254 | 2.3 | |||||||||
Short-term investments | 29,621 | 0.4 | 16,348 | 0.2 | |||||||||
Other investments | 12,693 | 0.2 | 9,874 | 0.1 | |||||||||
Total investments | $ | 8,454,903 | 100.0 | % | $ | 8,174,660 | 100.0 | % |
Credit Quality by NAIC Designation and Equivalent Rating | ||||||||||||||||
June 30, 2017 | December 31, 2016 | |||||||||||||||
NAIC Designation | Equivalent Rating (1) | Carrying Value | Percent | Carrying Value | Percent | |||||||||||
(Dollars in thousands) | ||||||||||||||||
1 | AAA, AA, A | $ | 4,612,495 | 63.9 | % | $ | 4,465,027 | 63.7 | % | |||||||
2 | BBB | 2,326,702 | 32.3 | 2,232,384 | 31.9 | |||||||||||
Total investment grade | 6,939,197 | 96.2 | 6,697,411 | 95.6 | ||||||||||||
3 | BB | 194,560 | 2.7 | 209,092 | 2.9 | |||||||||||
4 | B | 58,146 | 0.8 | 81,210 | 1.2 | |||||||||||
5 | CCC | 12,861 | 0.2 | 13,705 | 0.2 | |||||||||||
6 | In or near default | 7,782 | 0.1 | 7,372 | 0.1 | |||||||||||
Total below investment grade | 273,349 | 3.8 | 311,379 | 4.4 | ||||||||||||
Total fixed maturities - available for sale | $ | 7,212,546 | 100.0 | % | $ | 7,008,790 | 100.0 | % |
(1) | Equivalent ratings are based on those provided by nationally recognized rating agencies with some exceptions for certain residential mortgage, commercial mortgage- and asset-backed securities where they are based on the expected loss of the security rather than the probability of default. This may result in a final designation being higher or lower than the equivalent credit rating. |
Gross Unrealized Gains and Gross Unrealized Losses by Internal Industry Classification | |||||||||||||||||||
June 30, 2017 | |||||||||||||||||||
Total Carrying Value | Carrying Value of Securities with Gross Unrealized Gains | Gross Unrealized Gains | Carrying Value of Securities with Gross Unrealized Losses | Gross Unrealized Losses | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Corporate securities: | |||||||||||||||||||
Basic industrial | $ | 356,200 | $ | 306,159 | $ | 23,699 | $ | 50,041 | $ | (2,166 | ) | ||||||||
Capital goods | 293,544 | 273,875 | 22,357 | 19,669 | (1,517 | ) | |||||||||||||
Communications | 151,607 | 129,124 | 12,081 | 22,483 | (1,631 | ) | |||||||||||||
Consumer cyclical | 126,344 | 110,602 | 9,456 | 15,742 | (733 | ) | |||||||||||||
Consumer non-cyclical | 500,261 | 436,656 | 34,716 | 63,605 | (2,924 | ) | |||||||||||||
Energy | 473,493 | 374,360 | 27,768 | 99,133 | (9,509 | ) | |||||||||||||
Finance | 753,793 | 644,658 | 48,978 | 109,135 | (1,973 | ) | |||||||||||||
Transportation | 103,296 | 90,653 | 7,387 | 12,643 | (622 | ) | |||||||||||||
Utilities | 814,511 | 785,997 | 94,540 | 28,514 | (2,856 | ) | |||||||||||||
Other | 179,547 | 174,692 | 11,952 | 4,855 | (114 | ) | |||||||||||||
Total corporate securities | 3,752,596 | 3,326,776 | 292,934 | 425,820 | (24,045 | ) | |||||||||||||
Mortgage- and asset-backed securities | 1,899,642 | 1,502,941 | 90,087 | 396,701 | (7,532 | ) | |||||||||||||
United States Government and agencies | 28,274 | 21,575 | 1,716 | 6,699 | (25 | ) | |||||||||||||
State and political subdivisions | 1,532,034 | 1,459,639 | 134,139 | 72,395 | (2,520 | ) | |||||||||||||
Total | $ | 7,212,546 | $ | 6,310,931 | $ | 518,876 | $ | 901,615 | $ | (34,122 | ) |
December 31, 2016 | |||||||||||||||||||
Total Carrying Value | Carrying Value of Securities with Gross Unrealized Gains | Gross Unrealized Gains | Carrying Value of Securities with Gross Unrealized Losses | Gross Unrealized Losses | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Corporate securities: | |||||||||||||||||||
Basic industrial | $ | 342,832 | $ | 220,528 | $ | 15,557 | $ | 122,304 | $ | (6,904 | ) | ||||||||
Capital goods | 273,602 | 222,671 | 17,451 | 50,931 | (2,580 | ) | |||||||||||||
Communications | 148,355 | 114,397 | 9,923 | 33,958 | (2,819 | ) | |||||||||||||
Consumer cyclical | 132,492 | 110,335 | 8,387 | 22,157 | (602 | ) | |||||||||||||
Consumer non-cyclical | 477,132 | 309,320 | 22,128 | 167,812 | (8,181 | ) | |||||||||||||
Energy | 490,128 | 336,139 | 25,404 | 153,989 | (13,643 | ) | |||||||||||||
Finance | 753,213 | 529,277 | 34,925 | 223,936 | (6,672 | ) | |||||||||||||
Transportation | 109,228 | 95,944 | 6,215 | 13,284 | (1,929 | ) | |||||||||||||
Utilities | 802,346 | 667,397 | 80,459 | 134,949 | (5,489 | ) | |||||||||||||
Other | 179,327 | 139,082 | 8,152 | 40,245 | (1,124 | ) | |||||||||||||
Total corporate securities | 3,708,655 | 2,745,090 | 228,601 | 963,565 | (49,943 | ) | |||||||||||||
Mortgage- and asset-backed securities | 1,768,904 | 1,124,418 | 71,612 | 644,486 | (16,834 | ) | |||||||||||||
United States Government and agencies | 32,072 | 25,634 | 1,629 | 6,438 | (132 | ) | |||||||||||||
State and political subdivisions | 1,499,159 | 1,349,107 | 119,298 | 150,052 | (7,152 | ) | |||||||||||||
Total | $ | 7,008,790 | $ | 5,244,249 | $ | 421,140 | $ | 1,764,541 | $ | (74,061 | ) |
Gross Unrealized Gains and Gross Unrealized Losses by Energy Industry Classification | |||||||||||||||||||
June 30, 2017 | |||||||||||||||||||
Total Carrying Value | Carrying Value of Securities with Gross Unrealized Gains | Gross Unrealized Gains | Carrying Value of Securities with Gross Unrealized Losses | Gross Unrealized Losses | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Energy securities: | |||||||||||||||||||
Midstream | $ | 186,548 | $ | 146,053 | $ | 7,697 | $ | 40,495 | $ | (1,654 | ) | ||||||||
Oil field services | 40,093 | 24,441 | 2,104 | 15,652 | (5,956 | ) | |||||||||||||
Independent exploration & production | 123,733 | 93,803 | 7,362 | 29,930 | (1,410 | ) | |||||||||||||
Integrated energy | 79,055 | 73,469 | 7,213 | 5,586 | (159 | ) | |||||||||||||
Refiners | 44,064 | 36,594 | 3,392 | 7,470 | (330 | ) | |||||||||||||
Total | $ | 473,493 | $ | 374,360 | $ | 27,768 | $ | 99,133 | $ | (9,509 | ) |
December 31, 2016 | |||||||||||||||||||
Total Carrying Value | Carrying Value of Securities with Gross Unrealized Gains | Gross Unrealized Gains | Carrying Value of Securities with Gross Unrealized Losses | Gross Unrealized Losses | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Energy securities: | |||||||||||||||||||
Midstream | $ | 179,533 | $ | 112,683 | $ | 6,333 | $ | 66,850 | $ | (3,997 | ) | ||||||||
Oil field services | 54,898 | 27,135 | 2,181 | 27,763 | (5,648 | ) | |||||||||||||
Independent exploration & production | 128,329 | 98,242 | 8,092 | 30,087 | (2,477 | ) | |||||||||||||
Integrated energy | 84,319 | 64,107 | 5,759 | 20,212 | (494 | ) | |||||||||||||
Refiners | 43,049 | 33,972 | 3,039 | 9,077 | (1,027 | ) | |||||||||||||
Total | $ | 490,128 | $ | 336,139 | $ | 25,404 | $ | 153,989 | $ | (13,643 | ) |
Non-Sovereign European Debt Exposure | |||||||||||||||
June 30, 2017 | December 31, 2016 | ||||||||||||||
Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Italy | $ | 19,724 | $ | 21,558 | $ | 19,720 | $ | 20,769 | |||||||
Spain | 27,105 | 30,378 | 27,130 | 29,932 | |||||||||||
Ireland | 14,005 | 15,112 | 13,988 | 15,143 | |||||||||||
Subtotal | 60,834 | 67,048 | 60,838 | 65,844 | |||||||||||
United Kingdom | 149,364 | 157,076 | 151,724 | 154,865 | |||||||||||
Netherlands | 51,830 | 56,198 | 57,839 | 61,184 | |||||||||||
France | 32,051 | 36,026 | 32,052 | 34,698 | |||||||||||
Other countries | 91,054 | 97,066 | 95,047 | 99,494 | |||||||||||
Subtotal | 324,299 | 346,366 | 336,662 | 350,241 | |||||||||||
Total European exposure | $ | 385,133 | $ | 413,414 | $ | 397,500 | $ | 416,085 |
Credit Quality of Available-for-Sale Fixed Maturities with Unrealized Losses | ||||||||||||||||
June 30, 2017 | ||||||||||||||||
NAIC Designation | Equivalent Rating | Carrying Value of Securities with Gross Unrealized Losses | Percent of Total | Gross Unrealized Losses | Percent of Total | |||||||||||
(Dollars in thousands) | ||||||||||||||||
1 | AAA, AA, A | $ | 492,561 | 54.6 | % | $ | (9,707 | ) | 28.5 | % | ||||||
2 | BBB | 305,718 | 33.9 | (9,971 | ) | 29.2 | ||||||||||
Total investment grade | 798,279 | 88.5 | (19,678 | ) | 57.7 | |||||||||||
3 | BB | 62,070 | 6.9 | (5,506 | ) | 16.1 | ||||||||||
4 | B | 29,122 | 3.2 | (6,759 | ) | 19.8 | ||||||||||
5 | CCC | 4,394 | 0.5 | (1,876 | ) | 5.5 | ||||||||||
6 | In or near default | 7,750 | 0.9 | (303 | ) | 0.9 | ||||||||||
Total below investment grade | 103,336 | 11.5 | (14,444 | ) | 42.3 | |||||||||||
Total | $ | 901,615 | 100.0 | % | $ | (34,122 | ) | 100.0 | % |
December 31, 2016 | ||||||||||||||||
NAIC Designation | Equivalent Rating | Carrying Value of Securities with Gross Unrealized Losses | Percent of Total | Gross Unrealized Losses | Percent of Total | |||||||||||
(Dollars in thousands) | ||||||||||||||||
1 | AAA, AA, A | $ | 941,794 | 53.4 | % | $ | (27,615 | ) | 37.3 | % | ||||||
2 | BBB | 679,428 | 38.5 | (28,472 | ) | 38.4 | ||||||||||
Total investment grade | 1,621,222 | 91.9 | (56,087 | ) | 75.7 | |||||||||||
3 | BB | 77,750 | 4.4 | (7,658 | ) | 10.4 | ||||||||||
4 | B | 54,958 | 3.1 | (8,163 | ) | 11.0 | ||||||||||
5 | CCC | 3,270 | 0.2 | (1,461 | ) | 2.0 | ||||||||||
6 | In or near default | 7,341 | 0.4 | (692 | ) | 0.9 | ||||||||||
Total below investment grade | 143,319 | 8.1 | (17,974 | ) | 24.3 | |||||||||||
Total | $ | 1,764,541 | 100.0 | % | $ | (74,061 | ) | 100.0 | % |
Available-For-Sale Fixed Maturities with Unrealized Losses by Length of Time | |||||||||||||||
June 30, 2017 | |||||||||||||||
Amortized Cost | Gross Unrealized Losses | ||||||||||||||
Fair Value is Less than 75% of Cost | Fair Value is 75% or Greater than Cost | Fair Value is Less than 75% of Cost | Fair Value is 75% or Greater than Cost | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Three months or less | $ | — | $ | 201,951 | $ | — | $ | (1,732 | ) | ||||||
Greater than three months to six months | — | 22,195 | — | (458 | ) | ||||||||||
Greater than six months to nine months | — | 331,719 | — | (5,815 | ) | ||||||||||
Greater than nine months to twelve months | — | 114,984 | — | (4,004 | ) | ||||||||||
Greater than twelve months | 24,231 | 240,657 | (8,140 | ) | (13,973 | ) | |||||||||
Total | $ | 24,231 | $ | 911,506 | $ | (8,140 | ) | $ | (25,982 | ) |
Available-For-Sale Fixed Maturities with Unrealized Losses by Length of Time | |||||||||||||||
December 31, 2016 | |||||||||||||||
Amortized Cost | Gross Unrealized Losses | ||||||||||||||
Fair Value is Less than 75% of Cost | Fair Value is 75% or Greater than Cost | Fair Value is Less than 75% of Cost | Fair Value is 75% or Greater than Cost | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Three months or less | $ | — | $ | 1,218,024 | $ | — | $ | (30,040 | ) | ||||||
Greater than three months to six months | — | 218,857 | — | (10,522 | ) | ||||||||||
Greater than six months to nine months | — | 9,702 | — | (79 | ) | ||||||||||
Greater than nine months to twelve months | — | 12,765 | — | (199 | ) | ||||||||||
Greater than twelve months | 18,947 | 360,307 | (5,926 | ) | (27,295 | ) | |||||||||
Total | $ | 18,947 | $ | 1,819,655 | $ | (5,926 | ) | $ | (68,135 | ) |
Available-For-Sale Fixed Maturities with Unrealized Losses by Maturity Date | |||||||||||||||
June 30, 2017 | December 31, 2016 | ||||||||||||||
Carrying Value of Securities with Gross Unrealized Losses | Gross Unrealized Losses | Carrying Value of Securities with Gross Unrealized Losses | Gross Unrealized Losses | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Due in one year or less | $ | 1,236 | $ | (7 | ) | $ | 414 | $ | (104 | ) | |||||
Due after one year through five years | 15,541 | (1,901 | ) | 14,883 | (283 | ) | |||||||||
Due after five years through ten years | 111,859 | (2,856 | ) | 234,944 | (7,686 | ) | |||||||||
Due after ten years | 376,278 | (21,826 | ) | 869,814 | (49,154 | ) | |||||||||
504,914 | (26,590 | ) | 1,120,055 | (57,227 | ) | ||||||||||
Mortgage- and asset-backed | 396,701 | (7,532 | ) | 644,486 | (16,834 | ) | |||||||||
Total | $ | 901,615 | $ | (34,122 | ) | $ | 1,764,541 | $ | (74,061 | ) |
Mortgage- and Asset-Backed Securities by Collateral Type | |||||||||||||||||||||
June 30, 2017 | December 31, 2016 | ||||||||||||||||||||
Amortized Cost | Carrying Value | Percent of Fixed Maturities | Amortized Cost | Carrying Value | Percent of Fixed Maturities | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Government agency | $ | 181,178 | $ | 193,953 | 2.9 | % | $ | 190,016 | $ | 201,135 | 2.9 | % | |||||||||
Prime | 150,872 | 162,154 | 2.4 | 121,101 | 129,988 | 1.9 | |||||||||||||||
Alt-A | 105,524 | 119,687 | 1.8 | 114,625 | 125,363 | 1.8 | |||||||||||||||
Subprime | 138,290 | 143,239 | 2.1 | 129,504 | 127,529 | 1.8 | |||||||||||||||
Commercial mortgage | 616,281 | 652,960 | 9.7 | 546,446 | 575,954 | 8.2 | |||||||||||||||
Non-mortgage | 624,942 | 627,649 | 9.3 | 612,434 | 608,935 | 8.7 | |||||||||||||||
Total | $ | 1,817,087 | $ | 1,899,642 | 28.2 | % | $ | 1,714,126 | $ | 1,768,904 | 25.3 | % |
Residential Mortgage-Backed Securities by NAIC Designation and Origination Year | |||||||||||||||||||||||||||||||
June 30, 2017 | |||||||||||||||||||||||||||||||
2004 & Prior | 2005 to 2008 | 2009 & After | Total | ||||||||||||||||||||||||||||
NAIC Designation | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
1 | $ | 94,757 | $ | 98,289 | $ | 83,008 | $ | 103,948 | $ | 222,102 | $ | 231,692 | $ | 399,867 | $ | 433,929 | |||||||||||||||
2 | 779 | 786 | 906 | 915 | — | — | 1,685 | 1,701 | |||||||||||||||||||||||
3 | — | — | 5,172 | 5,727 | — | — | 5,172 | 5,727 | |||||||||||||||||||||||
4 | — | — | 3,893 | 3,314 | — | — | 3,893 | 3,314 | |||||||||||||||||||||||
5 | 11 | 11 | — | — | — | — | 11 | 11 | |||||||||||||||||||||||
Total | $ | 95,547 | $ | 99,086 | $ | 92,979 | $ | 113,904 | $ | 222,102 | $ | 231,692 | $ | 410,628 | $ | 444,682 |
December 31, 2016 | |||||||||||||||||||||||||||||||
2004 & Prior | 2005 to 2008 | 2009 & After | Total | ||||||||||||||||||||||||||||
NAIC Designation | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
1 | $ | 106,819 | $ | 110,696 | $ | 86,461 | $ | 102,877 | $ | 188,782 | $ | 195,947 | $ | 382,062 | $ | 409,520 | |||||||||||||||
2 | 1,026 | 1,032 | 3,515 | 3,444 | — | — | 4,541 | 4,476 | |||||||||||||||||||||||
3 | — | — | 5,397 | 4,686 | — | — | 5,397 | 4,686 | |||||||||||||||||||||||
4 | — | — | 4,098 | 3,607 | — | — | 4,098 | 3,607 | |||||||||||||||||||||||
5 | 12 | 11 | — | — | — | — | 12 | 11 | |||||||||||||||||||||||
Total | $ | 107,857 | $ | 111,739 | $ | 99,471 | $ | 114,614 | $ | 188,782 | $ | 195,947 | $ | 396,110 | $ | 422,300 |
Commercial Mortgage-Backed Securities by NAIC Designation and Origination Year | |||||||||||||||||||||||||||||||
June 30, 2017 | |||||||||||||||||||||||||||||||
2004 & Prior | 2005 to 2008 | 2009 & After | Total | ||||||||||||||||||||||||||||
NAIC Designation | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
1 | $ | 9,105 | $ | 9,917 | $ | 131,858 | $ | 145,487 | $ | 441,317 | $ | 460,153 | $ | 582,280 | $ | 615,557 | |||||||||||||||
2 | — | — | 26,001 | 28,943 | — | — | 26,001 | 28,943 | |||||||||||||||||||||||
3 | — | — | 8,000 | 8,460 | — | — | 8,000 | 8,460 | |||||||||||||||||||||||
Total (1) | $ | 9,105 | $ | 9,917 | $ | 165,859 | $ | 182,890 | $ | 441,317 | $ | 460,153 | $ | 616,281 | $ | 652,960 |
December 31, 2016 | |||||||||||||||||||||||||||||||
2004 & Prior | 2005 to 2008 | 2009 & After | Total | ||||||||||||||||||||||||||||
NAIC Designation | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
1 | $ | 9,330 | $ | 9,549 | $ | 133,036 | $ | 142,404 | $ | 364,936 | $ | 384,026 | $ | 507,302 | $ | 535,979 | |||||||||||||||
2 | — | — | 31,144 | 31,775 | — | — | 31,144 | 31,775 | |||||||||||||||||||||||
3 | — | — | 8,000 | 8,200 | — | — | 8,000 | 8,200 | |||||||||||||||||||||||
Total (1) | $ | 9,330 | $ | 9,549 | $ | 172,180 | $ | 182,379 | $ | 364,936 | $ | 384,026 | $ | 546,446 | $ | 575,954 |
(1) | The CMBS portfolio included government agency-backed securities with a carrying value of $451.1 million at June 30, 2017 and $387.4 million at December 31, 2016. |
Other Asset-Backed Securities by NAIC Designation and Origination Year | |||||||||||||||||||||||||||||||
June 30, 2017 | |||||||||||||||||||||||||||||||
2004 & Prior | 2005 to 2008 | 2009 & After | Total | ||||||||||||||||||||||||||||
NAIC Designation | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
1 | $ | 11,392 | $ | 11,002 | $ | 161,136 | $ | 170,670 | $ | 468,480 | $ | 470,132 | $ | 641,008 | $ | 651,804 | |||||||||||||||
2 | 1,836 | 1,946 | 5,122 | 5,197 | 108,157 | 109,685 | 115,115 | 116,828 | |||||||||||||||||||||||
3 | — | — | — | — | 19,408 | 19,032 | 19,408 | 19,032 | |||||||||||||||||||||||
4 | 194 | 186 | — | — | — | — | 194 | 186 | |||||||||||||||||||||||
5 | — | — | — | — | 6,400 | 6,400 | 6,400 | 6,400 | |||||||||||||||||||||||
6 | — | — | 8,053 | 7,750 | — | — | 8,053 | 7,750 | |||||||||||||||||||||||
Total | $ | 13,422 | $ | 13,134 | $ | 174,311 | $ | 183,617 | $ | 602,445 | $ | 605,249 | $ | 790,178 | $ | 802,000 |
Other Asset-Backed Securities by NAIC Designation and Origination Year | |||||||||||||||||||||||||||||||
December 31, 2016 | |||||||||||||||||||||||||||||||
2004 & Prior | 2005 to 2008 | 2009 & After | Total | ||||||||||||||||||||||||||||
NAIC Designation | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
1 | $ | 10,723 | $ | 10,258 | $ | 163,214 | $ | 166,553 | $ | 479,281 | $ | 476,630 | $ | 653,218 | $ | 653,441 | |||||||||||||||
2 | 1,951 | 2,100 | 5,441 | 5,519 | 70,001 | 69,670 | 77,393 | 77,289 | |||||||||||||||||||||||
3 | — | — | — | — | 25,084 | 24,743 | 25,084 | 24,743 | |||||||||||||||||||||||
4 | 192 | 189 | — | — | 1,250 | 1,247 | 1,442 | 1,436 | |||||||||||||||||||||||
5 | — | — | — | — | 6,400 | 6,400 | 6,400 | 6,400 | |||||||||||||||||||||||
6 | — | — | 8,033 | 7,341 | — | — | 8,033 | 7,341 | |||||||||||||||||||||||
Total | $ | 12,866 | $ | 12,547 | $ | 176,688 | $ | 179,413 | $ | 582,016 | $ | 578,690 | $ | 771,570 | $ | 770,650 |
31.1+ | Certification Pursuant to Exchange Act Rules 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
31.2+ | Certification Pursuant to Exchange Act Rules 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
32+ | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
101+# | Interactive Data Files formatted in XBRL (eXtensible Business Reporting Language) from FBL Financial Group, Inc.'s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017 as follows: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statement of Changes in Stockholders' Equity, (v) Consolidated Statements of Cash Flows and (vi) Notes to Financial Statements |
+ | Filed or furnished herewith |
* | Exhibit relates to a compensatory plan for management or directors. |
# | In accordance with Rule 402 of Regulation S-T, the XBRL related information in this report shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing. |
FBL FINANCIAL GROUP, INC. | ||
By | /s/ James P. Brannen | |
James P. Brannen | ||
Chief Executive Officer (Principal Executive Officer) | ||
By | /s/ Donald J. Seibel | |
Donald J. Seibel | ||
Chief Financial Officer and Treasurer (Principal Financial Officer) | ||
By | /s/ Anthony J. Aldridge | |
Anthony J. Aldridge | ||
Chief Accounting Officer (Principal Accounting Officer) |
I, James P. Brannen, certify that: | |||
1. | I have reviewed this report on Form 10-Q of FBL Financial Group, Inc.; | ||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||
3. | Based on my knowledge, the financial statements, and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | ||
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | ||
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | ||
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | ||
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By | /s/ James P. Brannen | ||
James P. Brannen | |||
Chief Executive Officer (Principal Executive Officer) |
I, Donald J. Seibel, certify that: | |||
1. | I have reviewed this report on Form 10-Q of FBL Financial Group, Inc.; | ||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||
3. | Based on my knowledge, the financial statements, and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | ||
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | ||
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | ||
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | ||
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By | /s/ Donald J. Seibel | ||
Donald J. Seibel | |||
Chief Financial Officer and Treasurer (Principal Financial Officer) |
(1 | ) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; | ||||
and | ||||||
(2 | ) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By | /s/ James P. Brannen | ||
James P. Brannen | |||
Chief Executive Officer (Principal Executive Officer) | |||
By | /s/ Donald J. Seibel | ||
Donald J. Seibel | |||
Chief Financial Officer and Treasurer (Principal Financial Officer) |
FXM$SOT6!UA>UXYX7M3-.&"<+&
M]W%9
Document and entity information Document - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Aug. 01, 2017 |
|
Document Information [Line Items] | ||
Entity Registrant Name | FBL FINANCIAL GROUP INC | |
Entity Central Index Key | 0001012771 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float | $ 595,276,142 | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 24,918,085 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 11,413 |
Consolidated Balance Sheet Parenthetical disclosure - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | $ 6,727,792 | $ 6,661,711 |
Available-for-sale Equity Securities, Amortized Cost Basis | $ 122,662 | $ 130,479 |
Common Stock, Shares, Outstanding | 24,928,568 | 24,893,955 |
Preferred Stock | ||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Outstanding | 5,000,000 | 5,000,000 |
Common Class A | ||
Common Stock, Shares Authorized | 88,500,000 | 88,500,000 |
Common Stock, Shares, Issued | 24,917,155 | 24,882,542 |
Common Stock, Shares, Outstanding | 24,917,155 | 24,882,542 |
Common Class B | ||
Common Stock, Shares Authorized | 1,500,000 | 1,500,000 |
Common Stock, Shares, Issued | 11,413 | 11,413 |
Common Stock, Shares, Outstanding | 11,413 | 11,413 |
Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||||
Net income | $ 32,318 | $ 24,392 | $ 58,753 | $ 50,329 | ||||
Change in net unrealized investment gains/losses | 46,570 | [1] | 90,055 | [1] | 62,431 | 162,258 | ||
Non-credit impairment losses | 0 | [1] | 0 | [1] | 0 | (952) | ||
Change in underfunded status of other postretirement benefit plans | 189 | [1] | 149 | [1] | 371 | 284 | ||
Total other comprehensive income, net of tax | [1] | 46,759 | 90,204 | 62,802 | 161,590 | |||
Comprehensive income | 79,077 | 114,596 | 121,555 | 211,919 | ||||
Comprehensive loss attributable to noncontrolling interest | (27) | (12) | (29) | (3) | ||||
Comprehensive income attributable to FBL Financial Group, Inc. | $ 79,050 | $ 114,584 | $ 121,526 | $ 211,916 | ||||
|
Consolidated Statements of Changes in Stockholder's Equity - USD ($) $ in Thousands |
Total |
Preferred Stock |
Common Stock |
Accumulated Other Comprehensive Income (Loss) |
Retained Earnings |
Noncontrolling Interest |
|||
---|---|---|---|---|---|---|---|---|---|
Balance at Dec. 31, 2015 | $ 1,134,474 | $ 3,000 | $ 149,320 | $ 114,532 | $ 867,574 | $ 48 | |||
Net income | 50,329 | 50,326 | 3 | ||||||
Other comprehensive income | 161,590 | [1] | 161,590 | ||||||
Issurance of common stock under compensation plans | 2,314 | 2,314 | |||||||
Purchase of common stock | (586) | (63) | (523) | ||||||
Dividends on preferred stock | (75) | (75) | |||||||
Dividends on common stock | (70,550) | (70,550) | |||||||
Receipts related to noncontrolling interest | 12 | 12 | |||||||
Balance at Jun. 30, 2016 | 1,277,508 | 3,000 | 151,571 | 276,122 | 846,752 | 63 | |||
Balance at Dec. 31, 2016 | 1,188,258 | 3,000 | 152,975 | 149,555 | 882,672 | 56 | |||
Net income | 58,753 | 58,724 | 29 | ||||||
Other comprehensive income | 62,802 | [1] | 62,802 | ||||||
Issurance of common stock under compensation plans | 440 | 440 | |||||||
Dividends on preferred stock | (75) | (75) | |||||||
Dividends on common stock | (59,309) | (59,309) | |||||||
Balance at Jun. 30, 2017 | $ 1,250,869 | $ 3,000 | $ 153,415 | $ 212,357 | $ 882,012 | $ 85 | |||
|
Significant Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2017 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements of FBL Financial Group, Inc. (we or the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. Our financial statements include all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of our financial position and results of operations. Operating results for the three- and six-month periods ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. We encourage you to refer to the notes to our consolidated financial statements included in Item 8 of our Form 10-K for the year ended December 31, 2016 for a complete description of our material accounting policies. Also included in the Form 10-K is a description of areas of judgments and estimates and other information necessary to understand our financial position and results of operations. Adoption of New Accounting Pronouncements In March 2016, the FASB issued guidance that impacts the accounting for share-based compensation, including the accounting for excess tax benefits and deficiencies, classification of excess tax benefits within the consolidated statement of cash flows, and the accounting for forfeitures. The new guidance, which we adopted prospectively on January 1, 2017, resulted in a federal income tax benefit of $0.5 million ($0.02 per basic and diluted common share) for the six months ended June 30, 2017 and $0.1 million ($0.01 per basic and diluted common share) for the quarter ended June 30, 2017. Prior year periods were not restated. Recent Accounting Pronouncements In January 2016, the FASB issued guidance that amends certain aspects of the recognition and measurement of financial instruments. The new guidance primarily affects the accounting for equity investments, the presentation and disclosure requirements for financial instruments and the methodology for assessing the need for a valuation allowance on deferred tax assets resulting from unrealized losses on available-for-sale fixed maturity securities. The guidance becomes effective for fiscal years beginning after December 15, 2017. The primary impact of this guidance on us will be in the recognition of gains or losses from changes in the fair value of our equity security investments through the statement of operations, rather than as unrealized gains or losses reflected in other comprehensive income. Additionally, there will no longer be a requirement to assess equity securities for other-than-temporary impairments, as such securities will be measured at fair value through net income. Note 2 provides further information as to our current level of unrealized gains or losses on these securities. In May 2014, the FASB issued guidance that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers, which supersedes most current revenue recognition guidance, including industry-specific guidance. Although insurance contracts are specifically excluded from the scope of this guidance, almost all entities will be affected to some extent by an increase in required disclosures. The new guidance is based on the principle that an entity should recognize revenue to reflect the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard, which becomes effective for fiscal years beginning after December 15, 2017; early adoption is not permitted. We currently expect the impact of this new guidance to be related to non-insurance contract revenues, primarily net commissions on products we broker, which are insignificant to the consolidated financial statements. In February 2016, the FASB issued a new lease accounting standard, which, for most lessees, will result in a gross-up of the balance sheet. Under the new standard, lessees will recognize the leased assets on the balance sheet and will recognize a corresponding liability for the present value of lease payments over the lease term. The new standard requires the application of judgment and estimates. Also, there are accounting policy elections that may be taken both at transition and for the accounting post-transition, including whether to adopt a short-term lease recognition exemption. The guidance becomes effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The new standard will be applied as of the beginning of the earliest comparative period presented in the financial statements (date of initial application). We are currently evaluating the impact of this guidance on our consolidated financial statements. In June 2016, the FASB issued guidance amending the accounting for the credit impairment of financial instruments. Under the new guidance, impairment losses will be estimated using an expected loss model under which a valuation allowance is established and adjusted over time. The valuation allowance will be based on the probability of loss over the life of the instrument, considering historical, current and forecasted information. The new guidance differs significantly from the incurred loss model used today, and will result in the earlier recognition of impairment losses. The new guidance may also increase the volatility of earnings to the extent actual results differ from the assumptions used in the establishment of the valuation allowance. The financial instruments for which we will be required to use the new model include but are not limited to, mortgage loans and reinsurance recoverables. Our available-for-sale fixed maturities will continue to apply the incurred loss model. However, rather than impairment losses resulting in a permanent reduction of carrying value as they do today, such losses will be in the form of a valuation allowance, which can be increased in the case of future credit losses or decreased should conditions improve. The guidance becomes effective for fiscal years beginning after December 15, 2019, with early adoption permitted on January 1, 2019. We are currently evaluating the impact of this new guidance on our consolidated financial statements, but expect that it will be material. |
Investment Operations |
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Investment Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Operations | Investment Operations Fixed Maturity and Equity Securities
Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Fixed maturities not due at a single maturity date have been included in the above table in the year of final contractual maturity.
Net unrealized investment gains and losses are recorded net of deferred income taxes and other adjustments for assumed changes in deferred acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities. Subsequent changes in the fair value of securities for which a previous non-credit OTTI loss was recognized in accumulated other comprehensive income, are reported along with changes in fair value for which no OTTI losses were previously recognized.
Fixed maturities in the above tables include 286 securities from 221 issuers at June 30, 2017 and 516 securities from 404 issuers at December 31, 2016. Unrealized losses decreased during the six months ended June 30, 2017 primarily due to a decrease in treasury rates as well as a general decrease in credit spreads. We do not consider securities to be OTTI when the market decline is attributable to factors such as interest rate movements, market volatility, liquidity, spread widening and credit quality when recovery of all amounts due under the contractual terms of the security is anticipated. Based on our intent not to sell or our belief that we will not be required to sell these securities before recovery of their amortized cost basis, we do not consider these investments to be OTTI at June 30, 2017. We will continue to monitor the investment portfolio for future changes in issuer facts and circumstances that could result in future impairments beyond those currently identified. Our largest unrealized loss was from an oil field service provider and totaled $2.6 million at June 30, 2017. As described more fully in Note 1 to our consolidated financial statements included in Item 8 of our Form 10-K for the year ended December 31, 2016, we perform a regular evaluation of all investment classes for impairment, including fixed maturity securities and equity securities, in order to evaluate whether such investments are OTTI.
The table above sets forth the amount of credit loss impairments on fixed maturities held by the Company as of the dates indicated for which a portion of the OTTI was recognized in other comprehensive income and corresponding changes in such amounts. Credit loss impairments with no portion of the loss recognized in other comprehensive income, such as securities for which OTTI was measured at fair value, are excluded from the table.
Proceeds from sales of fixed maturities totaled $85.1 million during the six months ended June 30, 2017 and $105.4 million during the six months ended June 30, 2016. Realized gains and losses on sales of investments are determined on the basis of specific identification. Mortgage Loans Our mortgage loan portfolio consists of commercial mortgage loans that we have originated. Our lending policies require that the loans be collateralized by the value of the related property, establish limits on the amount that can be loaned to one borrower and require diversification by geographic location and collateral type. We originate loans with an initial loan-to-value ratio that provides sufficient collateral to absorb losses should we be required to foreclose and take possession of the collateral. In order to identify impairment losses, management maintains and regularly reviews a watch list of mortgage loans that have heightened risk. These loans may include those with borrowers delinquent on contractual payments, borrowers experiencing financial difficulty, increases in rental real estate vacancies and significant declines in collateral value. We evaluate each of our mortgage loans individually and establish an estimated loss, if needed, for each impaired loan identified. An estimated loss is needed for loans for which we do not believe we will collect all amounts due according to the contractual terms of the respective loan agreements. Any loan delinquent on contractual payments is considered non-performing. At June 30, 2017 and December 31, 2016, there were no non-performing loans over 90 days past due on contractual payments. Mortgage loans are placed on non-accrual status if we have concerns regarding the collectability of future payments. Interest income on non-performing loans is generally recognized on a cash basis. Once mortgage loans are classified as nonaccrual loans, the resumption of the interest accrual would commence only after all past due interest has been collected or the mortgage loan has been restructured such that the collection of interest is considered likely. At June 30, 2017, we had committed to provide additional funding for mortgage loans totaling $35.8 million. These commitments arose in the normal course of business at terms that are comparable to similar investments.
The loan-to-value ratio is determined using the most recent appraised value. Appraisals are updated periodically when there is indication of a possible significant collateral decline or there are loan modifications or refinance requests.
Mortgage Loan Modifications Our commercial mortgage loan portfolio includes loans that have been modified. We assess loan modifications on a loan-by-loan basis to evaluate whether a troubled debt restructuring has occurred. Generally, the types of concessions include: reduction of the contractual interest rate to a below-market rate, extension of the maturity date and/or a reduction of accrued interest. The amount, timing and extent of the concession granted is considered in determining if an impairment loss is needed for the restructuring. There were no loan modifications during the six months ended June 30, 2017 or 2016. Low Income Housing Tax Credit Investments (LIHTC) We invest in non-guaranteed federal LIHTC, which are included in securities and indebtedness of related parties on the balance sheet. The carrying value of these investments totaled $87.6 million at June 30, 2017 and $91.3 million at December 31, 2016. There were no impairment losses recorded on these investments during the first six months of 2017 or 2016. We use the equity method of accounting for these investments and recorded the following in our consolidated statement of operations.
At June 30, 2017, we had committed to provide additional funds for limited partnerships and limited liability companies in which we invest. The amounts of these unfunded commitments totaled $43.1 million, including $2.7 million for LIHTC commitments, which are summarized by year in the following table.
Variable Interest Entities We evaluate our variable interest entity (VIE) investees to determine whether the level of our direct ownership interest, our rights to manage operations, or our obligation to provide ongoing financial support are such that we are the primary beneficiary of the entity, and would therefore be required to consolidate it for financial reporting purposes. After determining that VIE status exists, we review our involvement in the VIE to determine whether we have both the power to direct activities that most significantly impact the economic performance of the VIE, and the obligation to absorb losses or the rights to receive benefits that could be potentially significant to the VIE. This analysis includes a review of the purpose and design of the VIE as well as the role that we played in the formation of the entity and how that role could impact our ability to control the VIE. We also review the activities and decisions considered significant to the economic performance of the VIE and assess what power we have in directing those activities and decisions. Finally, we review the agreements in place to determine if there are any guarantees that would affect our maximum exposure to loss. We have reviewed the circumstances surrounding our investments in VIEs, which are classified as securities and indebtedness of related parties and consist of LIHTC, limited partnerships or limited liability companies accounted for under the equity method. In addition, we have reviewed the ownership interests in our VIEs and determined that we do not hold direct majority ownership or have other contractual rights (such as kick out rights) that give us effective control over these entities resulting in us having both the power to direct activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. The maximum loss exposure relative to our VIEs is limited to the carrying value and any unfunded commitments that exist for each particular VIE. We also have not provided additional support or other guarantees that was not previously contractually required (financial or otherwise) to any of the VIEs as of June 30, 2017 or December 31, 2016. Based on this analysis, none of our VIEs were required to be consolidated for any reporting periods presented in this Form 10-Q.
In addition, we make passive investments in the normal course of business in structured securities issued by VIEs for which we are not the investment manager. These structured securities include all of the residential mortgage-backed securities, commercial mortgage-backed securities and other asset-backed securities included in our fixed maturities. Our maximum exposure to loss on these securities is limited to our amortized cost in the investment. We have determined that we are not the primary beneficiary of these structured securities because we do not have the power to direct the activities that most significantly impact the entities' economic performance. Derivative Instruments Our primary derivative exposure relates to purchased call options, which provide an economic hedge to the embedded derivatives in our indexed annuity and universal life insurance products. We also have embedded derivatives within our modified coinsurance agreements as well as an interest-only fixed maturity investment. We do not apply hedge accounting to any of our derivative positions, and they are held at fair value.
Derivative income (loss) is reported in net investment income except for the change in fair value of the embedded derivatives on our indexed annuity and universal life products, which is reported in interest sensitive product benefits. We are exposed to credit losses in the event of nonperformance of the derivative counterparties. This credit risk is minimized by purchasing such agreements from financial institutions with high credit ratings (currently rated A- or better by nationally recognized statistical rating organizations). We have also entered into credit support agreements with the counterparties requiring them to post collateral when net exposures exceed pre-determined thresholds that vary by counterparty. The net amount of such exposure is essentially the market value less collateral held for such agreements with each counterparty. The call options are supported by securities collateral received of $7.2 million at June 30, 2017, which is held in a separate custodial account. Subject to certain constraints, we are permitted to sell or re-pledge this collateral, but do not have legal rights to the collateral; accordingly, it has not been recorded on our balance sheet. At June 30, 2017, none of the collateral had been sold or re-pledged. As of June 30, 2017, our net derivative exposure was $4.8 million. |
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Fair Values [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Values The carrying and estimated fair values of our financial instruments are as follows:
Fair value is based on an exit price, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As not all financial instruments are actively traded, various valuation methods may be used to estimate fair value. These methods rely on observable market data and where observable market data is not available, the best information available. Significant judgment may be required to interpret the data and select the assumptions used in the valuation estimates, particularly when observable market data is not available. In the discussion that follows, we have ranked our financial instruments by the level of judgment used in the determination of the fair values presented above. The levels are defined as follows:
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, a financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. From time to time there may be movements between levels as inputs become more or less observable, which may depend on several factors including the activity of the market for the specific security, the activity of the market for similar securities, the level of risk spreads and the source from which we obtain the information. Transfers into or out of any level are measured as of the beginning of the period. The following methods and assumptions were used in estimating the fair value of our financial instruments: Fixed maturities: Level 1 fixed maturities consist of U.S. Treasury issues that are actively traded, allowing us to use current market prices as an estimate of their fair value. Level 2 fixed maturities consist of corporate, mortgage- and asset-backed, United States Government agencies, state and political subdivisions and private placement corporate securities with observable market data, and in some circumstances recent trade activity. When quoted prices of identical assets in active markets are not available, our first priority is to obtain prices from third party pricing vendors. We have regular interaction with these vendors to ensure we understand their pricing methodologies and to confirm they are utilizing observable market information. Their methodologies vary by asset class and include inputs such as estimated cash flows, benchmark yields, reported trades, credit quality, industry events and economic events. Fixed maturities with validated prices from pricing services, which includes the majority of our public fixed maturities in all asset classes, are generally reflected in Level 2. Also included in Level 2 are private placement corporate bonds for which quoted market prices are not available, for which an internal model using substantially all observable inputs or a matrix pricing valuation approach is used. In the matrix approach, securities are grouped into pricing categories that vary by sector, rating and average life. Each pricing category is assigned a risk spread based on studies of observable public market data. The expected cash flows of the security are then discounted back at the current Treasury curve plus the appropriate risk spread. Level 3 fixed maturities include corporate, mortgage- and asset-backed, United States Government sponsored agencies, state and political subdivisions and private placement corporate securities for which there is little or no current market data available. We use external pricing sources, or if prices are not available we will estimate fair value internally. Fair values of private corporate investments in Level 3 are determined by reference to the public market, private transactions or valuations for comparable companies or assets in the relevant asset class when such amounts are available. For other securities where an exit price based on relevant observable inputs is not obtained, the fair value is determined using a matrix calculation. Fair values estimated through the use of matrix pricing methods rely on an estimate of credit spreads to a risk-free U.S. Treasury yield. Selecting the credit spread requires judgment based on an understanding of the security and may include a market liquidity premium. Our selection of comparable companies as well as the level of spread requires significant judgment. Increases in spreads used in our matrix models, or those used to value comparable companies, will result in a decrease in discounted cash flows used, and accordingly in the estimated fair value of the security. We obtain fixed maturity fair values from a variety of external independent pricing services, including brokers, with access to observable data including recent trade information, if available. In certain circumstances in which an external price is not available for a Level 3 security, we will internally estimate its fair value. Our process for evaluation and selection of the fair values includes:
Equity securities: Level 1 equity securities consist of listed common stocks and mutual funds that are actively traded, allowing us to use current market prices as an estimate of their fair value. Level 2 equity securities consist of common stock issued by the Federal Home Loan Bank of Des Moines (FHLB), with estimated fair value based on the current redemption value of the shares, and non-redeemable preferred stock. Estimated fair value for the non-redeemable preferred stock is obtained from external pricing sources using a matrix pricing approach. Level 3 equity securities consist of non-redeemable preferred stock for which no active market exists, and fair value estimates for these securities is based on the values of comparable securities that are actively traded. Increases in spreads used in our matrix models, or those used to value comparable companies, will result in a decrease in discounted cash flows used, and accordingly in the estimated fair value of the security. In the case where external pricing services are used for certain Level 1 and Level 2 equity securities, our review process is consistent with the process used to determine the fair value of fixed maturities discussed above. Mortgage loans: Mortgage loans are not measured at fair value on a recurring basis. Mortgage loans are a Level 3 measurement as there is no current market for the loans. The fair value of our mortgage loans is estimated internally using a matrix pricing approach. Along with specific loan terms, two key management assumptions are required including the risk rating of the loan (our current rating system is A-highest quality, B-moderate quality, C-low quality, W-watch or F-foreclosure) and estimated spreads for new loans over the U.S. Treasury yield curve. Spreads are updated quarterly and loans are reviewed and rated annually with quarterly adjustments should significant changes occur. Our determination of each loan's risk rating as well as selection of the credit spread requires significant judgment. A higher risk rating, as well as an increase in spreads, would result in a decrease in discounted cash flows used, and accordingly the fair value of the loan. Policy loans: Policy loans are not measured at fair value on a recurring basis. Policy loans are a Level 3 measurement as there is no current market since they are specifically tied to the underlying insurance policy. The loans are relatively risk free as they cannot exceed the cash surrender value of the insurance policy. Fair values are estimated by discounting expected cash flows using a risk-free interest rate based on the U.S. Treasury curve. An increase in the risk-free interest rate would result in a decrease in discounted cash flows used, and accordingly the fair value of the loan. Other investments: Level 2 other investments measured at fair value on a recurring basis include call options with fair values based on counterparty market prices adjusted for a credit component of the counterparty, net of collateral received. Level 3 other investments, which are not measured at fair value on a recurring basis, include a promissory note that is priced internally using a discounted cash flow based on our assessment of the credit risk of the borrower. Cash, cash equivalents and short-term investments: Level 1 cash, cash equivalents and short-term investments are highly liquid instruments for which historical cost approximates fair value. Reinsurance recoverable: Level 2 reinsurance recoverable includes embedded derivatives in our modified coinsurance contracts under which we cede or assume business. Fair values of these embedded derivatives are based on the difference between the fair value and the cost basis of the underlying fixed maturities, which are valued consistent with the discussion of fixed maturities above. Assets held in separate accounts: Level 1 assets held in separate accounts consist of mutual funds that are actively traded, allowing us to use current market prices as an estimate of their fair value. Future policy benefits, supplementary contracts without life contingencies and advance premiums and other deposits: Level 3 policy-related financial instruments of investment-type contracts are those not involving significant mortality or morbidity risks. No active market exists for these contracts and they are not measured at fair value on a recurring basis. Fair values for our insurance contracts, other than investment-type contracts, are not required to be disclosed. Fair values for our investment-type contracts with expected maturities, including deferred annuities, funding agreements and supplementary contracts, are determined using discounted cash flow valuation techniques based on current interest rates adjusted to reflect our credit risk and an additional provision for adverse deviation. For certain deposit liabilities with no defined maturities and no surrender charges, including pension-related deposit administration funds, advance premiums and other deposits, fair value is the account value or amount payable on demand. Significant judgment is required in selecting the assumptions used to estimate the fair values of these financial instruments. For contracts with known maturities, increases in current rates will result in a decrease in discounted cash flows and a decrease in the estimated fair value of the policy obligation. Indexed contracts include embedded derivatives that are measured at fair value on a recurring basis. These embedded derivatives are a Level 3 measurement. The fair value of the embedded derivatives is based on the discounted excess of projected account values (including a risk margin) over projected guaranteed account values. The key unobservable inputs required in the projection of future values that require management judgment include the risk margin as well as the credit risk of our company. Should the risk margin increase or the credit risk decrease, the discounted cash flows and the estimated fair value of the obligation will increase. Long-term debt: Long-term debt is not measured at fair value on a recurring basis. Long-term debt is a Level 3 measurement. The fair value of our outstanding debt is estimated using a discounted cash flow method based on the market's assessment or our current incremental borrowing rate for similar types of borrowing arrangements adjusted, as needed, to reflect our credit risk. Our selection of the credit spread requires significant judgment. A decrease in the spread will increase the estimated fair value of the outstanding debt. Other liabilities: Level 2 other liabilities include the embedded derivatives in our modified coinsurance contracts under which we cede business. Fair values for the embedded derivatives are based on the difference between the fair value and the cost basis of the underlying fixed maturities. Liabilities related to separate accounts: Separate account liabilities are not measured at fair value on a recurring basis. Level 3 separate account liabilities' fair value is based on the cash surrender value of the underlying contract, which is the cost we would incur to extinguish the liability.
The tables above exclude certain securities for which the fair value was based on non-binding broker quotes where we could not reasonably obtain the quantitative unobservable inputs.
Level 3 Financial Instruments Measured at Fair Value on a Nonrecurring Basis Certain assets are measured at fair value on a nonrecurring basis, generally mortgage loans or real estate that have been deemed to be impaired during the reporting period. There were no mortgage loans or real estate impaired to fair value during the six months ended June 30, 2017 or June 30, 2016. |
Defined Benefit Plan |
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Defined Benefit Plan | Defined Benefit Plan We participate with several affiliates and an unaffiliated organization in various defined benefit plans, including a multiemployer plan. Our share of net periodic pension cost for the plans is recorded as expense in our consolidated statements of operations.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings In the normal course of business, we may be involved in litigation in which damages are alleged that are substantially in excess of contractual policy benefits or certain other agreements. In recent years, companies in the life insurance and annuity business have faced litigation, including class action lawsuits, alleging improper product design, improper sales practices and similar claims. We are not aware of any claims threatened or pending against FBL Financial Group, Inc. or any of its subsidiaries for which a material loss is reasonably possible. |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note | Stockholders' Equity Share Repurchases Our Board of Directors approved a program to repurchase our Class A common stock. The repurchase program authorizes us to make repurchases in the open market or through privately negotiated transactions, with the timing and terms of the purchases to be determined by management based on market conditions. In connection with the Class A repurchase program, we made no repurchases during the six months ended June 30, 2017 and repurchased 10,322 shares for $0.6 million during the six months ended June 30, 2016. At June 30, 2017, $49.5 million remains available for repurchase under the repurchase program. Completion of this program is dependent on market conditions and other factors. There is no guarantee as to the exact timing of any repurchases or the number of shares that we will repurchase. The share repurchase program may be modified or terminated at any time without prior notice. Special Dividends In March 2017, the Board of Directors approved a special $1.50 per share cash dividend payable to Class A and Class B common shareholders totaling $37.4 million. In March 2016, the Board of Directors approved a special $2.00 per share cash dividend payable to Class A and Class B common shareholders totaling $49.7 million.
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Earnings per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings per Share Computation of Earnings per Common Share
There were no antidilutive stock options outstanding in either period presented. |
Segment Information |
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Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information We analyze operations by reviewing financial information regarding our primary products that are aggregated into the Annuity and Life Insurance product segments. In addition, our Corporate and Other segment includes various support operations, corporate capital and other product lines that are not currently underwritten by the Company. We use operating income (a non-GAAP measure), in addition to net income, to measure our performance. Operating income, for the periods presented, consists of net income adjusted to exclude the impact of realized gains and losses on investments and the change in net unrealized gains and losses on derivatives, which can fluctuate greatly from period to period. These fluctuations make it difficult to analyze core operating trends. In addition, for derivatives not designated as hedges, there is a mismatch between the valuation of the asset and liability when deriving net income (loss). Specifically, call options relating to our indexed business are one-year assets while the embedded derivatives in the indexed contracts represent the rights of the contract holder to receive index credits over the entire period the indexed annuities are expected to be in force. Operating income is not a measure used in financial statements prepared in accordance with GAAP, but is a common life insurance industry measure of performance. We use operating income for goal setting, determining short-term incentive compensation and evaluating performance on a basis comparable to that used by many in the investment community. We analyze our segment results based on pre-tax operating income. Accordingly, income taxes are not allocated to the segments. In addition, operating results are reported net of transactions between the segments. Operating income adjustments are net of amortization of unearned revenue reserves, deferred acquisition costs and value of insurance in force acquired, as well as changes in interest sensitive product reserves and income taxes attributable to these items. While not applicable for the periods reported herein, our operating income policy also calls for adjustments to net income relating to the following:
In the fourth quarter of 2016, due to changes in product offerings since the last amendment to our policy for calculating operating income, we refined our calculation of operating income to include offsets related to changes in interest sensitive product reserves. These offsets, net of tax, decreased operating income $0.7 million in the second quarter of 2017 and $0.3 million in the six months ended June 30, 2017. These offsets, net of tax, not taken into account in the computation of operating income for the second quarter of 2016 would have increased operating income by less than $0.1 million and increased operating income for the six months ended June 30, 2016 by $0.1 million.
Interest expense is attributable to the Corporate and Other segment. Expenditures for long-lived assets were not significant during the periods presented above. Goodwill at June 30, 2017 and December 31, 2016 was allocated among the segments as follows: Annuity ($3.9 million) and Life Insurance ($6.1 million). Prior to 2017, securities and indebtedness of related parties were attributable to the Corporate and Other segment. In 2017, we began to assign a portion of our investments held in securities and indebtedness of related parties to the Life Insurance segment. The following chart provides the related equity income (loss) by segment.
Premiums collected, which is not a measure used in financial statements prepared according to GAAP, includes premiums received on life insurance policies and deposits on annuities and universal life-type products. Premiums collected is a common life insurance industry measure of agent productivity. Net premiums collected totaled $165.9 million for the quarter ended June 30, 2017 and $186.9 million for the same period in 2016. Net premiums collected totaled $335.7 million for the six months ended June 30, 2017 and $360.1 million for the same period in 2016. Under GAAP, premiums on whole life and term life policies are recognized as revenues over the premium-paying period and reported in the Life Insurance segment. The following chart provides a reconciliation of life insurance premiums collected to those reported in the GAAP financial statements.
There is no comparable GAAP financial measure for premiums collected on annuities and universal life-type products. GAAP revenues for those interest sensitive and variable products consist of various policy charges and fees assessed on those contracts, as summarized in the chart below.
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Investment Operations (Tables) |
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Investment Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities [Table Text Block] |
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Investments Classified by Contractual Maturity Date [Table Text Block] |
Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Fixed maturities not due at a single maturity date have been included in the above table in the year of final contractual maturity. |
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Unrealized Gain (Loss) on Investments [Table Text Block] |
Net unrealized investment gains and losses are recorded net of deferred income taxes and other adjustments for assumed changes in deferred acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities. Subsequent changes in the fair value of securities for which a previous non-credit OTTI loss was recognized in accumulated other comprehensive income, are reported along with changes in fair value for which no OTTI losses were previously recognized. |
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Schedule of Unrealized Loss on Investments [Table Text Block] |
Fixed maturities in the above tables include 286 securities from 221 issuers at June 30, 2017 and 516 securities from 404 issuers at December 31, 2016. Unrealized losses decreased during the six months ended June 30, 2017 primarily due to a decrease in treasury rates as well as a general decrease in credit spreads. We do not consider securities to be OTTI when the market decline is attributable to factors such as interest rate movements, market volatility, liquidity, spread widening and credit quality when recovery of all amounts due under the contractual terms of the security is anticipated. Based on our intent not to sell or our belief that we will not be required to sell these securities before recovery of their amortized cost basis, we do not consider these investments to be OTTI at June 30, 2017. We will continue to monitor the investment portfolio for future changes in issuer facts and circumstances that could result in future impairments beyond those currently identified. Our largest unrealized loss was from an oil field service provider and totaled $2.6 million at June 30, 2017. |
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Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block] |
The table above sets forth the amount of credit loss impairments on fixed maturities held by the Company as of the dates indicated for which a portion of the OTTI was recognized in other comprehensive income and corresponding changes in such amounts. |
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Realized Gain (Loss) on Investments [Table Text Block] |
Proceeds from sales of fixed maturities totaled $85.1 million during the six months ended June 30, 2017 and $105.4 million during the six months ended June 30, 2016. Realized gains and losses on sales of investments are determined on the basis of specific identification. |
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Mortgage Loans by Colateral Type [Table Text Block] |
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Mortgage Loans by Geograpic Location [Table Text Block] |
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Mortgage Loans by loan to value ratio [Table Text Block] |
The loan-to-value ratio is determined using the most recent appraised value. Appraisals are updated periodically when there is indication of a possible significant collateral decline or there are loan modifications or refinance requests. |
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Mortgage loans by year of origination [Table Text Block] |
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Impaired Financing Receivables [Table Text Block] |
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Allowance for Credit Losses on Financing Receivables [Table Text Block] |
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Affordable Housing Program [Text Block] | We invest in non-guaranteed federal LIHTC, which are included in securities and indebtedness of related parties on the balance sheet. The carrying value of these investments totaled $87.6 million at June 30, 2017 and $91.3 million at December 31, 2016. There were no impairment losses recorded on these investments during the first six months of 2017 or 2016. We use the equity method of accounting for these investments and recorded the following in our consolidated statement of operations.
At June 30, 2017, we had committed to provide additional funds for limited partnerships and limited liability companies in which we invest. The amounts of these unfunded commitments totaled $43.1 million, including $2.7 million for LIHTC commitments, which are summarized by year in the following table.
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Schedule of Variable Interest Entities [Table Text Block] |
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Schedule of Derivative Instruments [Table Text Block] |
Derivative income (loss) is reported in net investment income except for the change in fair value of the embedded derivatives on our indexed annuity and universal life products, which is reported in interest sensitive product benefits. We are exposed to credit losses in the event of nonperformance of the derivative counterparties. This credit risk is minimized by purchasing such agreements from financial institutions with high credit ratings (currently rated A- or better by nationally recognized statistical rating organizations). We have also entered into credit support agreements with the counterparties requiring them to post collateral when net exposures exceed pre-determined thresholds that vary by counterparty. The net amount of such exposure is essentially the market value less collateral held for such agreements with each counterparty. The call options are supported by securities collateral received of $7.2 million at June 30, 2017, which is held in a separate custodial account. Subject to certain constraints, we are permitted to sell or re-pledge this collateral, but do not have legal rights to the collateral; accordingly, it has not been recorded on our balance sheet. At June 30, 2017, none of the collateral had been sold or re-pledged. As of June 30, 2017, our net derivative exposure was $4.8 million. |
Fair Values (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value, by Balance Sheet Grouping [Table Text Block] |
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Valuation of our Financial Instruments Measured on Recurring Basis by hierarchy levels [Table Text Block] |
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Level 3 fixed maturities on Measurement on Recurring Basis by Valuation Technique [Table Text Block] |
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Quantitative Information about Level 3 Fair Value Measurement Inputs [Text Block] |
The tables above exclude certain securities for which the fair value was based on non-binding broker quotes where we could not reasonably obtain the quantitative unobservable inputs. |
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Level 3 Financial Instruments Changes in Fair Value [Table Text Block] |
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Financial Instruments Not Reported at Value [Table Text Block] |
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Defined Benefit Plan (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Defined Benefit Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] |
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Stockholders Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock by Class [Table Text Block] |
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Schedule of Comprehensive Income (Loss) [Table Text Block] |
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Disclosure of Reclassification Amount [Text Block] |
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Earnings per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Computation of Earnings per Common Share
There were no antidilutive stock options outstanding in either period presented. |
Segment Information (Tables) |
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Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] |
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Reconciliation of Revenue from Segments to Consolidated [Table Text Block] |
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Schedule of Segment Reporting Information, by Segment [Table Text Block] | Interest expense is attributable to the Corporate and Other segment. Expenditures for long-lived assets were not significant during the periods presented above. Goodwill at June 30, 2017 and December 31, 2016 was allocated among the segments as follows: Annuity ($3.9 million) and Life Insurance ($6.1 million). Prior to 2017, securities and indebtedness of related parties were attributable to the Corporate and Other segment. In 2017, we began to assign a portion of our investments held in securities and indebtedness of related parties to the Life Insurance segment. The following chart provides the related equity income (loss) by segment.
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Reconciliation of Non-GAAP measures [Table Text Block] | Premiums collected, which is not a measure used in financial statements prepared according to GAAP, includes premiums received on life insurance policies and deposits on annuities and universal life-type products. Premiums collected is a common life insurance industry measure of agent productivity. Net premiums collected totaled $165.9 million for the quarter ended June 30, 2017 and $186.9 million for the same period in 2016. Net premiums collected totaled $335.7 million for the six months ended June 30, 2017 and $360.1 million for the same period in 2016. Under GAAP, premiums on whole life and term life policies are recognized as revenues over the premium-paying period and reported in the Life Insurance segment. The following chart provides a reconciliation of life insurance premiums collected to those reported in the GAAP financial statements.
There is no comparable GAAP financial measure for premiums collected on annuities and universal life-type products. GAAP revenues for those interest sensitive and variable products consist of various policy charges and fees assessed on those contracts, as summarized in the chart below.
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Significant Accounting Policies Recent accounting pronouncements (Details) - Cash-based restricted stock unit plan [Member] - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended |
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Jun. 30, 2017 |
Jun. 30, 2017 |
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New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 0.1 | $ 0.5 |
Earnings Per Share, Basic, Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 0.01 | $ 0.02 |
Earnings Per Share, Diluted, Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 0.01 | $ 0.02 |
Investment Operations Available-for-sale Fixed Maturities by Maturity Date (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
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Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Due in one year or less, amortized cost basis | $ 173,479 | |
Due after one year through five years, amortized cost basis | 674,859 | |
Due after five years through ten years, amortized cost basis | 718,196 | |
Due after ten years, amortized cost basis | 3,344,171 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis | 4,910,705 | |
Mortgage-backed and other asset-backed, amortized cost basis | 1,817,087 | |
Total fixed maturities, amortized cost basis | 6,727,792 | $ 6,661,711 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Due in one year or less, fair value | 178,072 | |
Due after one year through five years, fair value | 725,874 | |
Due after five years through ten years, fair value | 760,134 | |
Due after ten years, fair value | 3,648,824 | |
Total fixed maturities with maturity date, fair value | 5,312,904 | |
Mortgage-backed and other asset-backed, fair value | 1,899,642 | |
Total fixed maturities, fair value | $ 7,212,546 | $ 7,008,790 |
Investment Operations Net Unrealized Gains (Losses) on Investments in AOCI (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
Jun. 30, 2016 |
Dec. 31, 2015 |
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Net Unrealized Gains Losses [Line Items] | ||||||
Assumed changes in amortization of DAC | $ (137,017) | $ (95,647) | ||||
Assumed changes in amortization pattern of VIIF | (14,202) | (12,382) | ||||
Assumed changes in amortization pattern of URR | 9,834 | 4,215 | ||||
Assumed change in policyholder liability | (14,137) | (3,795) | ||||
Provision for deferred income taxes | (118,300) | (84,684) | ||||
Accumulated other comprehensive income | 212,357 | 149,555 | $ 276,122 | $ 114,532 | ||
Debt Securities [Member] | ||||||
Net Unrealized Gains Losses [Line Items] | ||||||
Unrealized appreciation on fixed maturities available for sale | 484,754 | 347,079 | ||||
Equity Securities [Member] | ||||||
Net Unrealized Gains Losses [Line Items] | ||||||
Unrealized appreciation on fixed maturities available for sale | 8,773 | 2,489 | ||||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||||
Net Unrealized Gains Losses [Line Items] | ||||||
Unrealized appreciation on fixed maturities available for sale | 493,527 | 349,568 | ||||
Accumulated other comprehensive income | [1] | $ 219,705 | $ 157,275 | |||
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Investment Operations Unrealized Losses by Length of Time (Details) $ in Thousands |
Jun. 30, 2017
USD ($)
issuers
securities
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Dec. 31, 2016
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issuers
securities
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---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | securities | 286 | 516 |
Available For Sale Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Issuers | issuers | 221 | 404 |
Corporate Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 264,992 | $ 742,626 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (4,967) | (23,142) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 160,828 | 220,939 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (19,078) | (26,801) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 425,820 | 963,565 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (24,045) | $ (49,943) |
percent of total | 70.40% | 67.30% |
Available for sale Securities Continuous Unrealized Loss Position Maximum Loss by issuer | $ 2,600 | |
Residential mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 31,007 | $ 51,873 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (733) | (1,014) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 17,147 | 22,744 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (996) | (1,917) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 48,154 | 74,617 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (1,729) | $ (2,931) |
percent of total | 5.10% | 4.00% |
Commercial mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 77,714 | $ 95,690 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1,657) | (3,590) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 6,869 | 6,610 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (256) | (547) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 84,583 | 102,300 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (1,913) | $ (4,137) |
percent of total | 5.60% | 5.60% |
Other asset backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 206,033 | $ 371,829 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (2,107) | (5,810) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 57,931 | 95,740 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1,783) | (3,956) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 263,964 | 467,569 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (3,890) | $ (9,766) |
percent of total | 11.40% | 13.20% |
United States Government and agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 6,699 | $ 6,438 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (25) | (132) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 6,699 | 6,438 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (25) | $ (132) |
percent of total | 0.10% | 0.20% |
State, municipal and other government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 72,395 | $ 150,052 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (2,520) | (7,152) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 72,395 | 150,052 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (2,520) | $ (7,152) |
percent of total | 7.40% | 9.70% |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 658,840 | $ 1,418,508 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (12,009) | (40,840) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 242,775 | 346,033 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (22,113) | (33,221) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 901,615 | 1,764,541 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (34,122) | $ (74,061) |
percent of total | 100.00% | 100.00% |
Non-redeemable preferred stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 0 | $ 12,774 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (150) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 4,525 | 13,438 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (475) | (1,525) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 4,525 | 26,212 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (475) | (1,675) |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 0 | 12,774 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (150) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 4,525 | 13,438 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (475) | (1,525) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 4,525 | 26,212 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (475) | $ (1,675) |
Investment Operations Credit loss component of Other-than-temporary Impairments on Fixed Maturities (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Balance at beginning of period | $ (14,500) | $ (11,498) |
Increases to previously impaired assets | 0 | (2,172) |
Reductions due to securities sold | 829 | 622 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Change in Status | 587 | 0 |
Balance at end of period | $ (13,084) | $ (13,048) |
Investment Operations Realized Gains (Losses) - Recorded in Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Gain (Loss) on Investments [Line Items] | ||||
Gain (Loss) on Disposition of Other Financial Assets | $ 40 | $ 0 | $ 40 | $ 0 |
Gains (Losses) on Sales of Other Real Estate | 304 | 0 | ||
Equity Method Investment, Realized Gain (Loss) on Disposal | (90) | 0 | (90) | 0 |
Net realized capital gains on sales of investments | 921 | (2,269) | 518 | (679) |
Net impairment loss recognized in earnings | 0 | (25) | (66) | (2,222) |
Realized gains (losses) on investments recorded in income | 921 | (2,294) | 452 | (2,901) |
Proceeds from Sale of Available-for-sale Securities | 85,100 | 105,400 | ||
Categories of Investments, Cost-method Investments [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Gains (Losses) on Sales of Other Real Estate | 304 | 0 | ||
Gains (Losses) on Sales of Other Assets | 0 | 320 | 0 | 320 |
Debt Securities [Member] | Categories of Investments, Marketable Securities, Available-for-sale Securities [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Gross gains - fixed maturities - available for sale | 1,081 | 5,789 | 1,205 | 7,379 |
Gross losses - fixed maturities - available for sale | (414) | (8,378) | (941) | (8,378) |
Credit related [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Net impairment loss recognized in earnings | 0 | 0 | 0 | (2,172) |
Other credit-related [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Net impairment loss recognized in earnings | $ 0 | $ (25) | $ (66) | $ (50) |
Investment Operations Mortgage Loans (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Mortgage Loans on Real Estate [Line Items] | ||
Contractual Obligation | $ 35,800 | |
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 878,435 | $ 816,471 |
Percentage of Mortgage Loans | 100.00% | 100.00% |
Year of origination 2017 [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 89,960 | |
Percentage of Mortgage Loans | 10.20% | |
Year of origination 2016 [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 156,747 | $ 158,817 |
Percentage of Mortgage Loans | 17.90% | 19.40% |
Year of origination 2015 [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 147,319 | $ 149,302 |
Percentage of Mortgage Loans | 16.80% | 18.30% |
Year of origination 2014 [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 79,335 | $ 80,771 |
Percentage of Mortgage Loans | 9.00% | 9.90% |
Year of origination 2013 [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 68,530 | $ 69,887 |
Percentage of Mortgage Loans | 7.80% | 8.60% |
Year of origination prior [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 336,544 | $ 357,694 |
Percentage of Mortgage Loans | 38.30% | 43.80% |
0% to 50% loan to value [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 318,429 | $ 274,953 |
Percentage of Mortgage Loans | 36.20% | 33.70% |
51% to 60% loan-to-value [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 215,223 | $ 210,555 |
Percentage of Mortgage Loans | 24.50% | 25.80% |
61% to 70% loan-to-value [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 258,571 | $ 233,216 |
Percentage of Mortgage Loans | 29.50% | 28.50% |
71% to 80% loan-to-value [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 56,244 | $ 67,607 |
Percentage of Mortgage Loans | 6.40% | 8.30% |
81% to 90% loan to value [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 29,968 | $ 30,140 |
Percentage of Mortgage Loans | 3.40% | 3.70% |
South Atlantic [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 259,992 | $ 266,019 |
Percentage of Mortgage Loans | 29.60% | 32.60% |
West North Central [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 127,602 | $ 105,753 |
Percentage of Mortgage Loans | 14.50% | 12.90% |
Pacific [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 120,547 | $ 104,337 |
Percentage of Mortgage Loans | 13.70% | 12.80% |
East North Central [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 97,120 | $ 91,550 |
Percentage of Mortgage Loans | 11.10% | 11.20% |
West South Central [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 82,598 | $ 74,258 |
Percentage of Mortgage Loans | 9.40% | 9.10% |
Mountain [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 89,871 | $ 79,707 |
Percentage of Mortgage Loans | 10.20% | 9.80% |
Other geographical locations [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 100,705 | $ 94,847 |
Percentage of Mortgage Loans | 11.50% | 11.60% |
Office [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 379,495 | $ 361,088 |
Percentage of Mortgage Loans | 43.20% | 44.20% |
Retail [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 287,522 | $ 240,602 |
Percentage of Mortgage Loans | 32.70% | 29.50% |
Industrial [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 153,176 | $ 154,005 |
Percentage of Mortgage Loans | 17.50% | 18.90% |
Other property type [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 58,242 | $ 60,776 |
Percentage of Mortgage Loans | 6.60% | 7.40% |
Investment Operations Impaired mortgage loans (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|---|---|
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, Unpaid Principal Balance | $ 19,199 | $ 21,459 | ||
Financing Receivable, Allowance for Credit Losses | (615) | (713) | $ (844) | $ (851) |
Impaired Financing Receivable, Recorded Investment | $ 18,584 | $ 20,746 |
Investment Operations Allowance on Mortgage Loans (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | $ 713 | $ 851 |
Charge offs | (98) | (7) |
Balance at end of period | $ 615 | $ 844 |
Investment Operations LIHTC Investments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
|
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investments | $ 133,153 | $ 133,153 | $ 137,422 | ||
Investment Tax Credit | 3,568 | $ 3,552 | 7,097 | $ 7,002 | |
Income (Loss) from Equity Method Investments | 2,924 | 2,613 | 6,155 | 5,265 | |
Affordable Housing Tax Credit Investments [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investments | 87,600 | 87,600 | $ 91,300 | ||
Income (Loss) from Affordable Housing Projects, Equity Method Investments | (2,938) | (2,508) | (4,743) | (4,047) | |
Tax impact of Income from Equity Method Investments | 1,028 | 878 | 1,660 | 1,416 | |
Income (Loss) from Equity Method Investments | $ 1,658 | $ 1,922 | $ 4,014 | $ 4,371 |
Investment Operations Other (Details) $ in Thousands |
Jun. 30, 2017
USD ($)
|
---|---|
Summary of Investment Holdings [Line Items] | |
Other Commitment | $ 43,100 |
Qualified Affordable Housing Project Investments, Commitment | 2,655 |
Affordable Housing Tax Credit Investments [Member] | |
Summary of Investment Holdings [Line Items] | |
Other Commitment, Due in Next Twelve Months | 1,478 |
Other Commitment, Due in Second Year | 299 |
Other Commitment, Due in Third Year | $ 878 |
Investment Operations Variable Interest Entities (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | $ 120,669 | $ 125,853 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 163,816 | 157,219 |
Low income housing tax credits [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 87,647 | 91,255 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 90,302 | 95,058 |
Investment companies [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 20,912 | 23,379 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 47,704 | 45,569 |
Real estate limited partnerships [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 11,303 | 10,790 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 23,755 | 14,558 |
Other VIE investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 807 | 429 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 2,055 | $ 2,034 |
Investment Operations Derivative instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
|
Derivatives, Fair Value [Line Items] | |||||
Derivative assets | $ 16,613 | $ 16,613 | $ 16,145 | ||
Derivative Liabilities | 22,571 | 22,571 | 15,892 | ||
Derivative, Gain (Loss) on Derivative, Net | 1,123 | $ (1,261) | 2,466 | $ (2,438) | |
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | 7,200 | 7,200 | |||
Net Derivative Exposure | 4,800 | 4,800 | |||
Investment Income [Member] | Equity Option [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | 1,400 | 304 | 3,765 | (111) | |
Investment Income [Member] | Embedded Derivative Financial Instruments - MODCO [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | (12) | 666 | (1,422) | 827 | |
Investment Income [Member] | Embedded Derivative Financial Instruments - Interest only Security [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | (174) | (710) | (195) | (465) | |
Insurance sensitive product charges [Member] | Embedded Derivative Financial Instruments [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | (91) | $ (1,521) | 318 | $ (2,689) | |
Other Investments [Member] | Equity Option [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative assets | 11,790 | 11,790 | 9,360 | ||
Reinsurance Recoverable [Member] | Embedded Derivative Financial Instruments [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative assets | 2,151 | 2,151 | 3,411 | ||
Available-for-sale Securities [Member] | Embedded Derivative Financial Instruments [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative assets | 2,672 | 2,672 | 3,374 | ||
Contract Holder Funds [Member] | Embedded Derivative Financial Instruments [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liabilities | 22,295 | 22,295 | 15,778 | ||
Other Liabilities [Member] | Embedded Derivative Financial Instruments [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liabilities | $ 276 | $ 276 | $ 114 |
Investment Operations Commitments (Details) $ in Millions |
Jun. 30, 2017
USD ($)
|
---|---|
Long-term Purchase Commitment [Line Items] | |
Other Commitment | $ 43.1 |
Fair Values Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale Securities, Debt Securities | $ 7,212,546 | $ 7,008,790 |
Available-for-sale Securities, Equity Securities | 131,435 | 132,968 |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 878,435 | 816,471 |
Policy loans | 188,630 | 188,254 |
Other investments | 16,613 | 16,145 |
Assets held in separate accounts | 625,971 | 597,072 |
Liabilities related to separate accounts | 625,971 | 597,072 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 878,435 | 816,471 |
Policy loans | 188,630 | 188,254 |
Other investments | 12,642 | 9,809 |
Cash and short-term investments | 73,430 | 49,931 |
Reinsurance recoverable | 2,151 | 3,411 |
Assets held in separate accounts | 625,971 | 597,072 |
Future policy benefits | 4,096,486 | 4,044,148 |
Supplemental contracts without life contingencies | 328,904 | 330,232 |
Advance premiums and other deposits | 260,025 | 257,171 |
Long-term debt | 97,000 | 97,000 |
Other liabilities | 276 | 114 |
Liabilities related to separate accounts | 625,971 | 597,072 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Debt Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale Securities, Debt Securities | 7,212,546 | 7,008,790 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale Securities, Equity Securities | 131,435 | 132,968 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 904,209 | 840,337 |
Policy loans | 233,461 | 230,656 |
Other investments | 13,802 | 11,272 |
Cash and short-term investments | 73,430 | 49,931 |
Reinsurance recoverable | 2,151 | 3,411 |
Assets held in separate accounts | 625,971 | 597,072 |
Future policy benefits | 4,042,680 | 3,903,177 |
Supplemental contracts without life contingencies | 335,425 | 330,633 |
Advance premiums and other deposits | 260,025 | 257,171 |
Long-term debt | 76,940 | 67,599 |
Other liabilities | 276 | 114 |
Liabilities related to separate accounts | 623,191 | 593,760 |
Estimate of Fair Value Measurement [Member] | Debt Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale Securities, Debt Securities | 7,212,546 | 7,008,790 |
Estimate of Fair Value Measurement [Member] | Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale Securities, Equity Securities | $ 131,435 | $ 132,968 |
Fair Values Valuation of Financial Instruments by Hierarchy Levels (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | $ 16,613 | $ 16,145 |
Assets held in separate accounts | 625,971 | 597,072 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 13,802 | 11,272 |
Cash and short-term investments | 73,430 | 49,931 |
Reinsurance recoverable | 2,151 | 3,411 |
Assets held in separate accounts | 625,971 | 597,072 |
Future policy benefits - index annuity embedded derivatives | 4,042,680 | 3,903,177 |
Other liabilities | 276 | 114 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 11,790 | 9,360 |
Cash and short-term investments | 73,430 | 49,931 |
Reinsurance recoverable | 2,151 | 3,411 |
Assets held in separate accounts | 625,971 | 597,072 |
Assets, Fair Value Disclosure | 8,057,323 | 7,801,532 |
Future policy benefits - index annuity embedded derivatives | 22,295 | 15,778 |
Other liabilities | 276 | 114 |
Total liabilities | 22,571 | 15,892 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Cash and short-term investments | 73,430 | 49,931 |
Reinsurance recoverable | 0 | 0 |
Assets held in separate accounts | 625,971 | 597,072 |
Future policy benefits - index annuity embedded derivatives | 0 | 0 |
Other liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 712,458 | 662,002 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 11,790 | 9,360 |
Cash and short-term investments | 0 | 0 |
Reinsurance recoverable | 2,151 | 3,411 |
Assets held in separate accounts | 0 | 0 |
Future policy benefits - index annuity embedded derivatives | 0 | 0 |
Other liabilities | 276 | 114 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 7,117,668 | 6,937,198 |
Total liabilities | 276 | 114 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Cash and short-term investments | 0 | 0 |
Reinsurance recoverable | 0 | 0 |
Assets held in separate accounts | 0 | 0 |
Future policy benefits - index annuity embedded derivatives | 22,295 | 15,778 |
Other liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 219,672 | 194,921 |
Assets, Fair Value Disclosure | 227,197 | 202,332 |
Total liabilities | 22,295 | 15,778 |
Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 7,212,546 | 7,008,790 |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 7,212,546 | 7,008,790 |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 9,022 | 11,943 |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 6,983,852 | 6,801,926 |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 219,672 | 194,921 |
Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 3,752,596 | 3,708,655 |
Corporate | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 3,752,596 | 3,708,655 |
Corporate | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Corporate | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 3,716,055 | 3,649,536 |
Corporate | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 36,541 | 59,119 |
Corporate | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 36,541 | 59,119 |
Residential mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 444,682 | 422,300 |
Residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 444,682 | 422,300 |
Residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 0 | 0 |
Residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 438,663 | 422,300 |
Residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 6,019 | 0 |
Residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 6,019 | |
Commercial mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 652,960 | 575,954 |
Commercial mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 652,960 | 575,954 |
Commercial mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 0 | 0 |
Commercial mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 574,236 | 494,520 |
Commercial mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 78,724 | 81,434 |
Commercial mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 78,724 | 81,434 |
Other asset backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 802,000 | 770,650 |
Other asset backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 802,000 | 770,650 |
Other asset backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 0 | 0 |
Other asset backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 703,612 | 716,282 |
Other asset backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available-for-sale | 98,388 | 54,368 |
Other asset backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 98,388 | 54,368 |
United States Government and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 28,274 | 32,072 |
United States Government and agencies | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 28,274 | 32,072 |
United States Government and agencies | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 9,022 | 11,943 |
United States Government and agencies | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 19,252 | 20,129 |
United States Government and agencies | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
State, municipal and other government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,532,034 | 1,499,159 |
State, municipal and other government [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,532,034 | 1,499,159 |
State, municipal and other government [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
State, municipal and other government [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,532,034 | 1,499,159 |
State, municipal and other government [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 30,003 | 30,551 |
Common Stock | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 30,003 | 30,551 |
Common Stock | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 4,035 | 3,056 |
Common Stock | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 25,968 | 27,495 |
Common Stock | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Non-redeemable preferred stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 101,432 | 102,417 |
Non-redeemable preferred stock [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 101,432 | 102,417 |
Non-redeemable preferred stock [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Non-redeemable preferred stock [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 93,907 | 95,006 |
Non-redeemable preferred stock [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 7,525 | $ 7,411 |
Fair Values Level 3 Fixed Maturitiies on a Recurring Basis by Valuation Source (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Corporate Securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 3,752,596 | $ 3,708,655 |
percent of total | 70.40% | 67.30% |
Corporate Securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 36,541 | $ 59,119 |
Residential mortgage-backed securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 444,682 | $ 422,300 |
percent of total | 5.10% | 4.00% |
Commercial mortgage-backed securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 652,960 | $ 575,954 |
percent of total | 5.60% | 5.60% |
Other asset backed securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 802,000 | $ 770,650 |
percent of total | 11.40% | 13.20% |
United States Government and agencies | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 28,274 | $ 32,072 |
percent of total | 0.10% | 0.20% |
United States Government and agencies | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 0 | $ 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, Fair Value Disclosure | 8,057,323 | 7,801,532 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, Fair Value Disclosure | 227,197 | 202,332 |
Available-for-sale securities | $ 219,672 | $ 194,921 |
percent of total | 100.00% | 100.00% |
Estimate of Fair Value Measurement [Member] | Corporate Securities | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 3,752,596 | $ 3,708,655 |
Estimate of Fair Value Measurement [Member] | Corporate Securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 36,541 | 59,119 |
Estimate of Fair Value Measurement [Member] | Residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 6,019 | |
Estimate of Fair Value Measurement [Member] | Commercial mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 78,724 | 81,434 |
Estimate of Fair Value Measurement [Member] | Other asset backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 98,388 | 54,368 |
Estimate of Fair Value Measurement [Member] | United States Government and agencies | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 28,274 | 32,072 |
Estimate of Fair Value Measurement [Member] | Third-party vendors [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 180,322 | $ 138,426 |
percent of total | 82.10% | 71.00% |
Estimate of Fair Value Measurement [Member] | Third-party vendors [Member] | Corporate Securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 7,493 | $ 17,684 |
Estimate of Fair Value Measurement [Member] | Third-party vendors [Member] | Residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 6,019 | |
Estimate of Fair Value Measurement [Member] | Third-party vendors [Member] | Commercial mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 78,724 | 81,434 |
Estimate of Fair Value Measurement [Member] | Third-party vendors [Member] | Other asset backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 88,086 | 39,308 |
Estimate of Fair Value Measurement [Member] | Priced internally [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 39,350 | $ 56,495 |
percent of total | 17.90% | 29.00% |
Estimate of Fair Value Measurement [Member] | Priced internally [Member] | Corporate Securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 29,048 | $ 41,435 |
Estimate of Fair Value Measurement [Member] | Priced internally [Member] | Residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 0 | |
Estimate of Fair Value Measurement [Member] | Priced internally [Member] | Commercial mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Priced internally [Member] | Other asset backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 10,302 | $ 15,060 |
Fair Values Quantitative Information about Unobservable Measurement Inputs (Details) - Fair Value, Measurements, Recurring [Member] - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2017 |
Dec. 31, 2016 |
|
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Future policy benefits - index annuity embedded derivatives | $ 22,295 | $ 15,778 |
Index Annuity Embedded Derivatives [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Future policy benefits - index annuity embedded derivatives | $ 22,295 | $ 15,778 |
Fair Value Measurements, Valuation Techniques | Discounted cash flow | Discounted cash flow |
Fair Value Measurements, Significant Assumptions | Credit risk Risk margin | Credit risk Risk margin |
Input range and weighted average | 0.50% - 1.75% (1.10%) 0.15% - 0.40% (0.25%) | 0.80% - 2.00% (1.25%) 0.15% - 0.40% (0.25%) |
Corporate Securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, Fair Value Disclosure | $ 27,586 | $ 47,398 |
Fair Value Measurements, Valuation Techniques | Discounted cash flow | Discounted cash flow |
Fair Value Measurements, Significant Assumptions | Credit spread | Credit spread |
Input range and weighted average | 0.87% - 6.21% (3.74%) | 0.58% - 4.25% (2.81%) |
Commercial mortgage-backed | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, Fair Value Disclosure | $ 73,002 | $ 81,434 |
Fair Value Measurements, Valuation Techniques | Discounted cash flow | Discounted cash flow |
Fair Value Measurements, Significant Assumptions | Credit spread | Credit spread |
Input range and weighted average | 1.40% - 4.10% (2.50%) | 1.10% - 4.15% (2.95%) |
Other asset backed securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, Fair Value Disclosure | $ 7,569 | $ 6,461 |
Fair Value Measurements, Valuation Techniques | Discounted cash flow | Discounted cash flow |
Fair Value Measurements, Significant Assumptions | Credit spread | Credit spread |
Input range and weighted average | 1.51% - 4.63% (3.25%) | 1.08% - 4.87% (3.45%) |
Non-redeemable preferred stock [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, Fair Value Disclosure | $ 7,525 | $ 7,411 |
Fair Value Measurements, Valuation Techniques | Discounted cash flow | Discounted cash flow |
Fair Value Measurements, Significant Assumptions | Credit spread | Credit spread |
Input range and weighted average | 3.32% (3.32%) | 4.05% (4.05%) |
Asset fair value by technique [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets, Fair Value Disclosure | $ 115,682 | $ 142,704 |
Fair Values Level 3 Financial Instruments Changes in Fair Value (Details) - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
|||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Asset Balance, beginning of period | $ 202,332 | $ 212,739 | ||||
Purchases | 90,591 | 41,882 | ||||
Disposals | (7,626) | (9,501) | ||||
Realized and unrealized gains (losses), net, included in net income | 0 | 0 | ||||
Realized and unrealized gains (losses), net, included in other comprehensive income | 6,151 | (6,322) | ||||
Transfers Into Level 3 | [1] | 15,367 | 42,829 | |||
Transfers out of Level 3 | [1] | (79,545) | (68,319) | |||
Amortization included in net income | (73) | 177 | ||||
Asset Balance, end of period | 227,197 | 226,129 | ||||
Corporate Securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Asset Balance, beginning of period | 59,119 | 49,076 | ||||
Purchases | 0 | 2,000 | ||||
Disposals | (3,311) | (3,673) | ||||
Realized and unrealized gains (losses), net, included in net income | 0 | 0 | ||||
Realized and unrealized gains (losses), net, included in other comprehensive income | (778) | 778 | ||||
Transfers Into Level 3 | 4,408 | 26,738 | ||||
Transfers out of Level 3 | (22,877) | (9,124) | ||||
Amortization included in net income | (20) | (31) | ||||
Asset Balance, end of period | 36,541 | 64,208 | ||||
Residential mortgage-backed securities [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Asset Balance, beginning of period | 0 | 3,729 | ||||
Purchases | 21,326 | 0 | ||||
Disposals | 0 | (3,722) | ||||
Realized and unrealized gains (losses), net, included in net income | 0 | 0 | ||||
Realized and unrealized gains (losses), net, included in other comprehensive income | (1) | (137) | ||||
Transfers Into Level 3 | 0 | [1] | 0 | |||
Transfers out of Level 3 | (15,307) | 0 | ||||
Amortization included in net income | 1 | 130 | ||||
Asset Balance, end of period | 6,019 | 0 | ||||
Commercial mortgage-backed securities [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Asset Balance, beginning of period | 81,434 | 88,180 | ||||
Purchases | 5,723 | 15,962 | ||||
Disposals | (394) | (815) | ||||
Realized and unrealized gains (losses), net, included in net income | 0 | 0 | ||||
Realized and unrealized gains (losses), net, included in other comprehensive income | 6,547 | (6,259) | ||||
Transfers Into Level 3 | 0 | 0 | ||||
Transfers out of Level 3 | (14,544) | (16,418) | ||||
Amortization included in net income | (42) | 65 | ||||
Asset Balance, end of period | 78,724 | 93,233 | ||||
Other asset backed securities [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Asset Balance, beginning of period | 54,368 | 55,557 | ||||
Purchases | 63,542 | 23,920 | ||||
Disposals | (3,921) | (1,291) | ||||
Realized and unrealized gains (losses), net, included in net income | 0 | 0 | ||||
Realized and unrealized gains (losses), net, included in other comprehensive income | 269 | (410) | ||||
Transfers Into Level 3 | 10,959 | 13,698 | ||||
Transfers out of Level 3 | (26,817) | (40,276) | ||||
Amortization included in net income | (12) | 9 | ||||
Asset Balance, end of period | 98,388 | 52,027 | ||||
United States Government and agencies | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Asset Balance, beginning of period | 8,726 | |||||
Purchases | 0 | |||||
Disposals | 0 | |||||
Realized and unrealized gains (losses), net, included in net income | 0 | |||||
Realized and unrealized gains (losses), net, included in other comprehensive income | (563) | |||||
Transfers Into Level 3 | 0 | |||||
Transfers out of Level 3 | 0 | |||||
Amortization included in net income | 4 | |||||
Asset Balance, end of period | 9,293 | |||||
State, municipal and other government [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Asset Balance, beginning of period | 0 | |||||
Purchases | 0 | |||||
Disposals | 0 | |||||
Realized and unrealized gains (losses), net, included in net income | 0 | |||||
Realized and unrealized gains (losses), net, included in other comprehensive income | (108) | |||||
Transfers Into Level 3 | 2,393 | |||||
Transfers out of Level 3 | (2,501) | |||||
Amortization included in net income | 0 | |||||
Asset Balance, end of period | 0 | |||||
Non-redeemable preferred stock [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Asset Balance, beginning of period | 7,411 | 7,471 | ||||
Purchases | 0 | 0 | ||||
Disposals | 0 | 0 | ||||
Realized and unrealized gains (losses), net, included in net income | 0 | 0 | ||||
Realized and unrealized gains (losses), net, included in other comprehensive income | 114 | (103) | ||||
Transfers Into Level 3 | 0 | 0 | ||||
Transfers out of Level 3 | 0 | 0 | ||||
Amortization included in net income | 0 | 0 | ||||
Asset Balance, end of period | 7,525 | 7,368 | ||||
Index Annuity Embedded Derivatives [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Liability balance, beginning of period | 15,778 | 9,374 | ||||
Purchases | 3,566 | 2,852 | ||||
Settlements | (909) | (469) | ||||
Realized and unrealized gains (losses), net, included in net income | 3,860 | (1,343) | ||||
Realized and unrealized gains (losses), net, included in other comprehensive income | 0 | 0 | ||||
Transfers Into Level 3 | [1] | 0 | 0 | |||
Transfers out of Level 3 | [1] | 0 | 0 | |||
Liability balance, end of period | $ 22,295 | $ 13,100 | ||||
|
Fair Values Valuation of Financial Instruments not reported at fair value (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | $ 878,435 | $ 816,471 |
Policy loans | 188,630 | 188,254 |
Other investments | 16,613 | 16,145 |
Liabilities related to separate accounts | 625,971 | 597,072 |
Portion at Other than Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 904,209 | 840,337 |
Policy loans | 233,461 | 230,656 |
Other investments | 2,012 | 1,912 |
Total assets | 1,139,682 | 1,072,905 |
Future policy benefits | 4,020,385 | 3,887,399 |
Supplemental contracts without life contingencies | 335,425 | 330,633 |
Advance premiums and other deposits | 260,025 | 257,171 |
Long-term debt | 76,940 | 67,599 |
Liabilities related to separate accounts | 623,191 | 593,760 |
Total liabilities | 5,315,966 | 5,136,562 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Other investments | 0 | 0 |
Future policy benefits | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Portion at Other than Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 | 0 |
Policy loans | 0 | 0 |
Other investments | 0 | |
Total assets | 0 | 0 |
Future policy benefits | 0 | 0 |
Supplemental contracts without life contingencies | 0 | 0 |
Advance premiums and other deposits | 0 | 0 |
Long-term debt | 0 | 0 |
Liabilities related to separate accounts | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Other investments | 11,790 | 9,360 |
Future policy benefits | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Portion at Other than Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 | 0 |
Policy loans | 0 | 0 |
Other investments | 0 | |
Total assets | 0 | 0 |
Future policy benefits | 0 | 0 |
Supplemental contracts without life contingencies | 0 | 0 |
Advance premiums and other deposits | 0 | 0 |
Long-term debt | 0 | 0 |
Liabilities related to separate accounts | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Other investments | 0 | 0 |
Future policy benefits | 22,295 | 15,778 |
Fair Value, Inputs, Level 3 [Member] | Portion at Other than Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 904,209 | 840,337 |
Policy loans | 233,461 | 230,656 |
Other investments | 2,012 | 1,912 |
Total assets | 1,139,682 | 1,072,905 |
Future policy benefits | 4,020,385 | 3,887,399 |
Supplemental contracts without life contingencies | 335,425 | 330,633 |
Advance premiums and other deposits | 260,025 | 257,171 |
Long-term debt | 76,940 | 67,599 |
Liabilities related to separate accounts | 623,191 | 593,760 |
Total liabilities | $ 5,315,966 | $ 5,136,562 |
Fair Values Level 3 Financial Instruments Measured at Fair Value on a nonrecurring basis (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | $ 878,435 | $ 816,471 |
Policy loans | 188,630 | 188,254 |
Other investments | 16,613 | 16,145 |
Liabilities related to separate accounts | 625,971 | 597,072 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Future policy benefits | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 11,790 | 9,360 |
Future policy benefits | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Future policy benefits | 22,295 | 15,778 |
Portion at Other than Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 904,209 | 840,337 |
Policy loans | 233,461 | 230,656 |
Other investments | 2,012 | 1,912 |
Total assets | 1,139,682 | 1,072,905 |
Future policy benefits | 4,020,385 | 3,887,399 |
Supplemental contracts without life contingencies | 335,425 | 330,633 |
Advance premiums and other deposits | 260,025 | 257,171 |
Long-term debt | 76,940 | 67,599 |
Liabilities related to separate accounts | 623,191 | 593,760 |
Total liabilities | 5,315,966 | 5,136,562 |
Portion at Other than Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 | 0 |
Policy loans | 0 | 0 |
Other investments | 0 | |
Total assets | 0 | 0 |
Future policy benefits | 0 | 0 |
Supplemental contracts without life contingencies | 0 | 0 |
Advance premiums and other deposits | 0 | 0 |
Long-term debt | 0 | 0 |
Liabilities related to separate accounts | 0 | 0 |
Total liabilities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 | 0 |
Policy loans | 0 | 0 |
Other investments | 0 | |
Total assets | 0 | 0 |
Future policy benefits | 0 | 0 |
Supplemental contracts without life contingencies | 0 | 0 |
Advance premiums and other deposits | 0 | 0 |
Long-term debt | 0 | 0 |
Liabilities related to separate accounts | 0 | 0 |
Total liabilities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 904,209 | 840,337 |
Policy loans | 233,461 | 230,656 |
Other investments | 2,012 | 1,912 |
Total assets | 1,139,682 | 1,072,905 |
Future policy benefits | 4,020,385 | 3,887,399 |
Supplemental contracts without life contingencies | 335,425 | 330,633 |
Advance premiums and other deposits | 260,025 | 257,171 |
Long-term debt | 76,940 | 67,599 |
Liabilities related to separate accounts | 623,191 | 593,760 |
Total liabilities | $ 5,315,966 | $ 5,136,562 |
Defined Benefit Plan (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
United States Pension Plan of US Entity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1,388 | $ 1,448 | $ 2,776 | $ 2,896 |
Interest cost | 3,531 | 3,612 | 7,062 | 7,224 |
Expected return on assets | (4,796) | (4,466) | (9,592) | (8,932) |
Amortization of prior service cost | 33 | 36 | 66 | 72 |
Amortization of actuarial loss | 2,530 | 2,358 | 5,060 | 4,716 |
Net periodic pension cost | 2,686 | 2,988 | 5,372 | 5,976 |
Net periodic pension cost individual entity share | 851 | 952 | 1,702 | 1,904 |
Other Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 109 | 84 | 218 | 168 |
Interest cost | 251 | 241 | 502 | 482 |
Amortization of actuarial loss | 293 | 230 | 586 | 460 |
Net periodic pension cost | 653 | 555 | 1,306 | 1,110 |
Net periodic pension cost individual entity share | $ 388 | $ 315 | $ 776 | $ 630 |
Stockholders Equity (Details) - USD ($) $ / shares in Units, $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Class of Stock [Line Items] | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 49,500 | |||
Common Stock Special Dividends Per Share Cash Paid | $ 1.50 | $ 2.00 | ||
Payment Of Special Cash Dividend | $ 37,400 | $ 49,700 | ||
Common Stock, Shares, Outstanding | 24,928,568 | 24,860,675 | 24,893,955 | 24,808,176 |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 34,613 | 62,821 | ||
Issurance of common stock under compensation plans | $ 440 | $ 2,314 | ||
Stock Repurchased During Period, Shares | (10,322) | |||
Stock Repurchased During Period, Value | $ (586) | |||
Common Class A | ||||
Class of Stock [Line Items] | ||||
Common Stock, Shares, Outstanding | 24,917,155 | 24,849,262 | 24,882,542 | 24,796,763 |
Common stock, without par value | $ 153,343 | $ 152,903 | ||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 34,613 | 62,821 | ||
Stock Repurchased During Period, Shares | (10,322) | |||
Stock Repurchased During Period, Value | $ (600) | |||
Common Class B | ||||
Class of Stock [Line Items] | ||||
Common Stock, Shares, Outstanding | 11,413 | 11,413 | 11,413 | 11,413 |
Common stock, without par value | $ 72 | $ 72 | ||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 0 | 0 | ||
Stock Repurchased During Period, Shares | 0 | |||
Common Stock | ||||
Class of Stock [Line Items] | ||||
Common stock, without par value | $ 153,415 | $ 151,571 | 152,975 | $ 149,320 |
Issurance of common stock under compensation plans | 440 | 2,314 | ||
Stock Repurchased During Period, Value | (63) | |||
Common Stock | Common Class A | ||||
Class of Stock [Line Items] | ||||
Common stock, without par value | 153,343 | 151,499 | 152,903 | 149,248 |
Issurance of common stock under compensation plans | 440 | 2,314 | ||
Stock Repurchased During Period, Value | (63) | |||
Common Stock | Common Class B | ||||
Class of Stock [Line Items] | ||||
Common stock, without par value | 72 | 72 | $ 72 | $ 72 |
Issurance of common stock under compensation plans | $ 0 | 0 | ||
Stock Repurchased During Period, Value | $ 0 |
Stockholders Equity Accumulated other comprehensive income (Details) - USD ($) $ in Thousands |
6 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||||||||
Accumulated other comprehensive income | $ 212,357 | $ 276,122 | $ 149,555 | $ 114,532 | ||||||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax | 62,486 | 161,974 | ||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 316 | (384) | ||||||||||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||||||||||
Accumulated other comprehensive income | 218,193 | 280,315 | 156,963 | [1] | 120,787 | [1] | ||||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax | [1] | 61,285 | 159,244 | |||||||||
Accumulated Other-than-Temporary Impairment [Member] | ||||||||||||
Accumulated other comprehensive income | 1,512 | 1,664 | 311 | (114) | ||||||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax | 1,201 | 2,730 | ||||||||||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||||||||
Accumulated other comprehensive income | (7,348) | (5,857) | $ (7,719) | $ (6,141) | ||||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax | 0 | 0 | ||||||||||
reclassifications out of accumulated other comprehensive income [Member] | ||||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 316 | (384) | ||||||||||
reclassifications out of accumulated other comprehensive income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | [1] | (55) | 284 | [2] | ||||||||
reclassifications out of accumulated other comprehensive income [Member] | Accumulated Other-than-Temporary Impairment [Member] | ||||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | [2] | 0 | (952) | |||||||||
reclassifications out of accumulated other comprehensive income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||||||||||||
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | $ 371 | $ 284 | ||||||||||
|
Stockholders Equity AOC I Reclassification Adjustments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
||||||||
Net realized capital gains on sales of investments | $ 921 | $ (2,269) | $ 518 | $ (679) | |||||||
Net impairment loss recognized in earnings | 0 | (25) | (66) | (2,222) | |||||||
Income available to common stockholders | 32,254 | 24,343 | 58,649 | 50,251 | |||||||
Income taxes | $ 13,891 | $ 10,477 | 24,624 | 21,546 | |||||||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 316 | (384) | |||||||||
reclassifications out of accumulated other comprehensive income [Member] | |||||||||||
Net realized capital gains on sales of investments | (174) | 999 | |||||||||
Change in offsets to unrealized on investments | 89 | (504) | |||||||||
Net impairment loss recognized in earnings | (1,522) | ||||||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | 571 | 437 | |||||||||
Income available to common stockholders | 486 | (590) | |||||||||
Income taxes | (170) | 206 | |||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 316 | (384) | |||||||||
reclassifications out of accumulated other comprehensive income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||||||||||
Net realized capital gains on sales of investments | (174) | 999 | |||||||||
Change in offsets to unrealized on investments | 89 | (562) | |||||||||
Net impairment loss recognized in earnings | [1] | 0 | |||||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | 0 | [2] | 0 | [1] | |||||||
Income available to common stockholders | (85) | [2] | 437 | [1] | |||||||
Income taxes | 30 | [2] | (153) | [1] | |||||||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | [2] | (55) | 284 | [1] | |||||||
reclassifications out of accumulated other comprehensive income [Member] | Accumulated Other-than-Temporary Impairment [Member] | |||||||||||
Net realized capital gains on sales of investments | [1] | 0 | 0 | ||||||||
Change in offsets to unrealized on investments | 0 | 58 | |||||||||
Net impairment loss recognized in earnings | (1,522) | ||||||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | [1] | 0 | 0 | ||||||||
Income available to common stockholders | [1] | 0 | (1,464) | ||||||||
Income taxes | [1] | 0 | 512 | ||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | [1] | 0 | (952) | ||||||||
reclassifications out of accumulated other comprehensive income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | |||||||||||
Net realized capital gains on sales of investments | 0 | 0 | |||||||||
Change in offsets to unrealized on investments | 0 | 0 | |||||||||
Net impairment loss recognized in earnings | 0 | ||||||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | 571 | 437 | |||||||||
Income available to common stockholders | 571 | 437 | |||||||||
Income taxes | (200) | (153) | |||||||||
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | $ 371 | $ 284 | |||||||||
|
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Numerator [Abstract] | ||||
Net income attributable to FBL Financial Group, Inc. | $ 32,291 | $ 24,380 | $ 58,724 | $ 50,326 |
Less: Dividends Series B preferred stock | (37) | (37) | (75) | (75) |
Income available to common stockholders | $ 32,254 | $ 24,343 | $ 58,649 | $ 50,251 |
Denominator [Abstract] | ||||
Weighted average shares - diluted | 25,050,975 | 25,030,444 | 25,054,084 | 25,020,085 |
Weighted average shares - basic | 25,031,312 | 24,987,878 | 25,033,307 | 24,969,727 |
Effect of dilutive securities - stock-based compensation | 19,663 | 42,566 | 20,777 | 50,358 |
Earnings per common share | $ 1.29 | $ 0.97 | $ 2.34 | $ 2.01 |
Earnings per common share - assuming dilution | $ 1.29 | $ 0.97 | $ 2.34 | $ 2.01 |
Segment Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
||||
Segment Reporting Information [Line Items] | |||||||
Premiums collected | $ 165,900 | $ 186,900 | $ 335,700 | $ 360,100 | |||
Operating Income offsets due to Interest Sensitive Product Reserves | 700 | 100 | 300 | 100 | |||
Net income attributable to FBL Financial Group, Inc. | 32,291 | 24,380 | 58,724 | 50,326 | |||
Realized gains/losses on investments (1) | (788) | 1,147 | (234) | 1,544 | |||
Change in net unrealized gains/losses on derivatives | (686) | 149 | (685) | 124 | |||
Operating Income (Loss) | 30,817 | 25,676 | 57,805 | 51,994 | |||
Pre-Tax Operating Income (Loss) | 40,000 | 32,793 | 74,332 | 66,501 | |||
Income tax on operating income | (9,183) | (7,117) | (16,527) | (14,507) | |||
Operating revenues | 188,005 | 181,961 | 370,865 | 361,167 | |||
Net realized gains (losses) on investments (1) | [1] | 794 | (2,261) | 313 | (2,868) | ||
Change in net unrealized gains/losses on derivatives (1) | [1] | 198 | 1,585 | (261) | 2,652 | ||
Consolidated revenues | 188,997 | 181,285 | 370,917 | 360,951 | |||
Pre-Tax on Equity Income (Loss) | (990) | (1,446) | (1,448) | (2,674) | |||
Income Tax on Equity Income | 3,914 | 4,059 | 7,603 | 7,939 | |||
Equity income, net of related income taxes | 2,924 | 2,613 | 6,155 | 5,265 | |||
Annuity Segment [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Pre-Tax Operating Income (Loss) | 18,174 | 16,348 | 34,595 | 33,496 | |||
Operating revenues | 56,833 | 53,954 | 111,884 | 106,133 | |||
Life Insurance Segment [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Premiums collected | 75,162 | 70,211 | 148,735 | 141,924 | |||
Pre-Tax Operating Income (Loss) | 17,631 | 14,473 | 31,380 | 28,544 | |||
Operating revenues | 107,068 | 104,724 | 211,211 | 208,327 | |||
Pre-Tax on Equity Income (Loss) | 1,289 | 0 | 2,455 | 0 | |||
Corporate and Other [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Pre-Tax Operating Income (Loss) | 4,195 | 1,972 | 8,357 | 4,461 | |||
Operating revenues | 24,104 | 23,283 | 47,770 | 46,707 | |||
Pre-Tax on Equity Income (Loss) | $ (2,279) | $ (1,446) | $ (3,903) | $ (2,674) | |||
|
Segment Information Reconciliation of non-GAAP measures Revenues (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Premiums collected | $ 165,900 | $ 186,900 | $ 335,700 | $ 360,100 |
Change in due premiums and other | 1,264 | 567 | 840 | 28 |
Traditional life insurance premiums | 50,262 | 49,605 | 98,696 | 99,743 |
Interest sensitive product charges | 29,456 | 29,027 | 58,657 | 57,138 |
Annuity Segment [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | 1,202 | 932 | 2,337 | 1,874 |
Life Insurance Segment [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Premiums collected | 75,162 | 70,211 | 148,735 | 141,924 |
Interest sensitive product charges | 17,357 | 16,655 | 34,446 | 32,428 |
Life Insurance Segment [Member] | Admiin charges [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | 3,899 | 3,583 | 7,764 | 7,087 |
Life Insurance Segment [Member] | Cost of insurance charges [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | 12,369 | 12,042 | 24,404 | 23,867 |
Life Insurance Segment [Member] | Surrender charges [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | 469 | 310 | 994 | 526 |
Life Insurance Segment [Member] | Amortization of policy initiation fees [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | 620 | 720 | 1,284 | 948 |
Corporate and Other [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | 10,897 | 11,440 | 21,874 | 22,836 |
Corporate and Other [Member] | Admiin charges [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | 1,377 | 1,478 | 2,802 | 2,919 |
Corporate and Other [Member] | Cost of insurance charges [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | 7,269 | 7,433 | 14,594 | 14,949 |
Corporate and Other [Member] | Surrender charges [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | 27 | 47 | 79 | 73 |
Corporate and Other [Member] | Separate account charges [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | 2,027 | 1,993 | 4,029 | 3,971 |
Corporate and Other [Member] | Amortization of policy initiation fees [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Interest sensitive product charges | 197 | 489 | 370 | 924 |
Life insurance - interest sensitive [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Premiums collected | 26,164 | 21,173 | 50,879 | 42,209 |
Life insurance - traditional [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Premiums collected | $ 48,998 | $ 49,038 | $ 97,856 | $ 99,715 |
Segment Information Goodwill by segment (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Annuity Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | $ 3.9 | $ 3.9 |
Life Insurance Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | $ 6.1 | $ 6.1 |
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