FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2015

Carrying Value and Estimated Fair Value of Financial Instruments

A summary of the carrying value and estimated fair value of our financial instruments at December 31, 2015 and 2014 is as follows:



	December 31, 2015				December 31, 2014
	Fair Value		Carrying Value		Fair Value		Carrying Value
Assets
Investments
Fixed maturities:
Held-to-maturity securities	$	675	$	672	$	404	$	397
Available-for-sale securities	2,824,961		2,824,961		2,843,079		2,843,079
Trading securities	12,622		12,622		16,862		16,862
Equity securities:
Available-for-sale securities	236,247		236,247		245,843		245,843
Trading securities	4,353		4,353		4,066		4,066
Mortgage loans	4,237		3,961		4,559		4,199
Policy loans	5,618		5,618		5,916		5,916
Other long-term investments	54,151		54,151		50,424		50,424
Short-term investments	175		175		175		175
Cash and cash equivalents	106,449		106,449		90,574		90,574
Corporate-owned life insurance	1,716		1,716		918		918
Liabilities
Policy reserves
Annuity (accumulations) ⁽¹⁾	$	707,190	$	744,931	$	865,802	$	863,606
Annuity (benefit payments)	131,899		95,467		176,592		99,121

(1) Annuity accumulations represent deferred annuity contracts that are currently earning interest.

Financial Instruments Measured at Fair Value on Recurring Basis

The following tables present the categorization for our financial instruments measured at fair value on a recurring basis in our Consolidated Balance Sheets at December 31, 2015 and 2014:



			Fair Value Measurements
Description	December 31, 2015		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities
Bonds
U.S. Treasury	$	21,649	$	—	$	21,649	$	—
U.S. government agency	233,030		—		233,030		—
States, municipalities and political subdivisions
General obligations
Midwest	165,456		—		165,456		—
Northeast	58,445		—		58,445		—
South	128,789		—		128,789		—
West	106,814		—		106,814		—
Special revenue
Midwest	157,706		—		157,363		343
Northeast	24,599		—		24,599		—
South	148,437		—		148,437		—
West	82,041		—		82,041		—
Foreign bonds	82,528		—		82,528		—
Public utilities	215,683		—		215,683		—
Corporate bonds
Energy	113,119		—		113,119		—
Industrials	224,255		—		224,255		—
Consumer goods and services	174,597		—		173,364		1,233
Health care	93,509		—		93,509		—
Technology, media and telecommunications	142,400		—		142,400		—
Financial services	263,485		—		253,823		9,662
Mortgage-backed securities	16,738		—		16,738		—
Collateralized mortgage obligations	366,015		—		366,015		—
Asset-backed securities	5,666		—		4,630		1,036
Total Available-For-Sale Fixed Maturities	$	2,824,961	$	—	$	2,812,687	$	12,274
Equity securities
Common stocks
Public utilities	$	19,060	$	19,060	$	—	$	—
Energy	11,211		11,211		—		—
Industrials	44,810		44,810		—		—
Consumer goods and services	23,315		23,315		—		—
Health care	28,217		28,217		—		—
Technology, media and telecommunications	13,364		13,364		—		—
Financial services	95,694		91,588		128		3,978
Nonredeemable preferred stocks	576		576		—		—
Total Available-for-Sale Equity Securities	$	236,247	$	232,141	$	128	$	3,978



Total Available-for-Sale Securities	$	3,061,208	$	232,141	$	2,812,815	$	16,252
TRADING
Fixed maturities
Bonds
Corporate bonds
Industrials	$	3,558	$	—	$	3,558	$	—
Consumer goods and services	118		—		118		—
Health care	2,032		—		2,032		—
Technology, media and telecommunications	335		—		335		—
Financial services	4,094		—		4,094		—
Redeemable preferred stocks	2,485		2,485		—		—
Equity securities
Energy	267		267		—		—
Industrials	986		986		—		—
Consumer goods and services	942		942		—		—
Health care	304		304		—		—
Financial Services	229		229		—		—
Nonredeemable preferred stocks	1,625		1,625		—		—
Total Trading Securities	$	16,975	$	6,838	$	10,137	$	—
Short-Term Investments	$	175	$	175	$	—	$	—
Money Market Accounts	$	20,805	$	20,805	$	—	$	—
Corporate-Owned Life Insurance	$	1,716	$	—	$	1,716	$	—
Total Assets Measured at Fair Value	$	3,100,879	$	259,959	$	2,824,668	$	16,252



			Fair Value Measurements
Description	December 31, 2014		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities
Bonds
U.S. Treasury	$	25,972	$	—	$	25,972	$	—
U.S. government agency	351,672		—		351,672		—
States, municipalities and political subdivisions
General obligations
Midwest	185,920		—		185,920		—
Northeast	61,154		—		61,154		—
South	126,220		—		126,220		—
West	78,433		—		78,433		—
Special revenue
Midwest	131,402		—		130,883		519
Northeast	12,631		—		12,631		—
South	111,222		—		111,222		—
West	71,303		—		71,303		—
Foreign bonds	140,173		—		140,173		—
Public utilities	212,357		—		212,357		—
Corporate bonds
Energy	137,133		—		137,133		—
Industrials	215,475		—		215,475		—
Consumer goods and services	177,001		—		175,682		1,319
Health care	89,035		—		89,035		—
Technology, media and telecommunications	134,529		—		134,529		—
Financial services	223,582		—		212,589		10,993
Mortgage-backed securities	17,558		—		17,558		—
Collateralized mortgage obligations	337,289		—		337,289		—
Asset-backed securities	3,018		—		1,406		1,612
Total Available-For-Sale Fixed Maturities	$	2,843,079	$	—	$	2,828,636	$	14,443
Equity securities
Common stocks
Public utilities	$	20,290	$	20,290	$	—	$	—
Energy	13,717		13,717		—		—
Industrials	45,459		45,458		1		—
Consumer goods and services	23,314		23,314		—		—
Health care	30,356		30,356		—		—
Technology, media and telecommunications	13,995		13,995		—		—
Financial services	93,663		89,719		72		3,872
Nonredeemable preferred stocks	5,049		558		4,491		—
Total Available-for-Sale Equity Securities	$	245,843	$	237,407	$	4,564	$	3,872
Total Available-for-Sale Securities	$	3,088,922	$	237,407	$	2,833,200	$	18,315



TRADING
Fixed maturities
Bonds
Corporate bonds
Industrials	$	3,352	$	—	$	3,352	$	—
Health care	2,425		—		2,425		—
Technology, media and telecommunications	338		—		338		—
Financial services	5,997		—		5,997		—
Redeemable preferred stocks	4,750		4,750		—		—
Equity securities
Energy	411		411		—		—
Consumer goods and services	1,034		1,034		—		—
Health care	327		327		—		—
Technology, media and telecommunications	411		411
Nonredeemable preferred stocks	1,883		1,883		—		—
Total Trading Securities	$	20,928	$	8,816	$	12,112	$	—
Short-Term Investments	$	175	$	175	$	—	$	—
Money Market Accounts	$	28,095	$	28,095	$	—	$	—
Corporate-Owned Life Insurance	$	918	$	—	$	918	$	—
Total Assets Measured at Fair Value	$	3,139,038	$	274,493	$	2,846,230	$	18,315

Summary of Changes in Fair Value of Level 3 Securities

The following table provides a summary of the changes in fair value of our Level 3 securities for 2015:



	States, municipalities and political subdivisions			Corporate bonds			Asset-backed securities			Equities			Total
Balance at January 1, 2015	$	519		$	12,312		$	1,612		$	3,872		$	18,315
Realized gains (losses) ⁽¹⁾	—			(142		)	—			—			(142		)
Unrealized gains (losses) ⁽¹⁾	(26		)	—			(39		)	—			(65		)
Purchases	—			100			—			121			221
Disposals	(150		)	(1,375		)	(537		)	(15		)	(2,077		)
Balance at December 31, 2015	$	343		$	10,895		$	1,036		$	3,978		$	16,252

(1) Realized gains (losses) are recorded as a component of earnings, whereas unrealized gains (losses) are recorded as a component of comprehensive income.

The following table provides a summary of the changes in fair value of our Level 3 securities for 2014:



	States, municipalities and political subdivisions			Corporate bonds			Asset-backed securities			Equities			Total
Balance at January 1, 2014	$	698		$	13,480		$	2,029		$	3,781		$	19,988
Realized gains (losses) ⁽¹⁾	—			11			—			(56		)	(45		)
Unrealized gains (losses) ⁽¹⁾	(34		)	(85		)	50			47			(22		)
Purchases	—			4			—			144			148
Disposals	(145		)	(1,098		)	(467		)	(44		)	(1,754		)
Balance at December 31, 2014	$	519		$	12,312		$	1,612		$	3,872		$	18,315

(1) Realized gains (losses) are recorded as a component of earnings, whereas unrealized gains (losses) are recorded as a component of comprehensive income.