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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2016
Fair Value Disclosures [Abstract]  
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, 2016 and 2015 is as follows:
 
December 31, 2016
 
December 31, 2015
 
Fair Value
 
Carrying Value
 
Fair Value
 
Carrying Value
Assets
 
 
 
 
 
 
 
Investments
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
Held-to-maturity securities
$
199

 
$
198

 
$
675

 
$
672

Available-for-sale securities
2,898,126

 
2,898,126

 
2,824,961

 
2,824,961

Trading securities
14,390

 
14,390

 
12,622

 
12,622

Equity securities:
 
 
 
 
 
 
 
Available-for-sale securities
270,416

 
270,416

 
236,247

 
236,247

Trading securities
5,644

 
5,644

 
4,353

 
4,353

Mortgage loans
3,895

 
3,706

 
4,237

 
3,961

Policy loans
5,366

 
5,366

 
5,618

 
5,618

Other long-term investments
67,639

 
67,639

 
54,151

 
54,151

Short-term investments
175

 
175

 
175

 
175

Cash and cash equivalents
110,853

 
110,853

 
106,449

 
106,449

Corporate-owned life insurance
2,592

 
2,592

 
1,716

 
1,716

Liabilities
 
 
 
 
 
 
 
Policy reserves
 
 
 
 
 
 
 
Annuity (accumulations) (1)
$
646,764

 
$
666,711

 
$
707,190

 
$
744,931

Annuity (benefit payments)
144,283

 
95,129

 
131,899

 
95,467

(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, 2016 and 2015:
 
 
 
Fair Value Measurements
Description
December 31, 2016
 
Level 1
 
Level 2
 
Level 3
AVAILABLE-FOR-SALE
 
 
 
 
 
 
 
Fixed maturities
 
 
 
 
 
 
 
Bonds
 
 
 
 
 
 
 
U.S. Treasury
$
23,195

 
$
—

 
$
23,195

 
$
—

U.S. government agency
77,597

 
—

 
77,597

 
—

States, municipalities and political subdivisions
 
 
 
 
 
 
 
General obligations
 
 
 
 
 
 
 
   Midwest
144,143

 
—

 
144,143

 
—

   Northeast
58,409

 
—

 
58,409

 
—

   South
128,369

 
—

 
128,369

 
—

   West
113,731

 
—

 
113,731

 
—

Special revenue
 
 
 
 
 
 
 
   Midwest
168,310

 
—

 
168,142

 
168

   Northeast
68,065

 
—

 
68,065

 
—

   South
239,187

 
—

 
239,187

 
—

   West
131,744

 
—

 
131,744

 
—

Foreign bonds
65,234

 
—

 
65,234

 
—

Public utilities
215,674

 
—

 
215,674

 
—

Corporate bonds
 
 
 
 
 
 
 
Energy
108,860

 
—

 
108,860

 
—

Industrials
229,903

 
—

 
229,903

 
—

Consumer goods and services
181,687

 
—

 
180,590

 
1,097

Health care
83,123

 
—

 
83,123

 
—

Technology, media and telecommunications
144,612

 
—

 
144,612

 
—

Financial services
273,951

 
—

 
265,154

 
8,797

Mortgage-backed securities
17,248

 
—

 
17,248

 
—

Collateralized mortgage obligations
 
 
 
 
 
 
 
Government national mortgage association
144,460

 
—

 
144,460

 
—

Federal home loan mortgage corporation
174,458

 
—

 
174,458

 
—

Federal national mortgage association
101,896

 
—

 
101,896

 
—

Asset-backed securities
4,270

 
—

 
3,821

 
449

Total Available-For-Sale Fixed Maturities
$
2,898,126

 
$
—

 
$
2,887,615

 
$
10,511

Equity securities
 
 
 
 
 
 
 
Common stocks
 
 
 
 
 
 
 
Public utilities
$
19,671

 
$
19,671

 
$
—

 
$
—

Energy
15,047

 
15,047

 
—

 
—

Industrials
51,794

 
51,794

 
—

 
—

Consumer goods and services
24,117

 
24,117

 
—

 
—

Health care
27,420

 
27,420

 
—

 
—

Technology, media and telecommunications
15,369

 
15,369

 
—

 
—

Financial services
115,950

 
111,958

 
—

 
3,992

Nonredeemable preferred stocks
1,048

 
453

 
—

 
595

Total Available-for-Sale Equity Securities
$
270,416

 
$
265,829

 
$
—

 
$
4,587

Total Available-for-Sale Securities
$
3,168,542

 
$
265,829

 
$
2,887,615

 
$
15,098

TRADING
 
 
 
 
 
 
 
Fixed maturities
 
 
 
 
 
 
 
Bonds
 
 
 
 
 
 
 
Corporate bonds
 
 
 
 
 
 
 
Industrials
$
3,919

 
$
—

 
$
3,919

 
$
—

Consumer goods and services
127

 
—

 
127

 
—

Health care
3,410

 
—

 
3,410

 
—

Technology, media and telecommunications
787

 
—

 
787

 
—

Financial services
4,842

 
—

 
4,842

 
—

Redeemable preferred stocks
1,305

 
1,305

 
—

 
—

Equity securities
 
 
 
 
 
 
 
Public utilities
613

 
613

 
—

 
—

Energy
286

 
286

 
—

 
—

Industrials
877

 
877

 
—

 
—

Consumer goods and services
1,202

 
1,202

 
—

 
—

Health care
339

 
339

 
—

 
—

     Financial Services
206

 
206

 
—

 
—

Nonredeemable preferred stocks
2,121

 
2,121

 
—

 
—

Total Trading Securities
$
20,034

 
$
6,949

 
$
13,085

 
$
—

Short-Term Investments
$
175

 
$
175

 
$
—

 
$
—

Money Market Accounts
$
16,802

 
$
16,802

 
$
—

 
$
—

Corporate-Owned Life Insurance
$
2,592

 
$
—

 
$
2,592

 
$
—

Total Assets Measured at Fair Value
$
3,208,145

 
$
289,755

 
$
2,903,292

 
$
15,098


 
 
 
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
 
 
 
 
 
 
 
Government national mortgage association
119,626

 
—

 
119,626

 
—

Federal home loan mortgage corporation
138,909

 
—

 
138,909

 
—

Federal national mortgage association
107,480

 
—

 
107,480

 
—

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
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 2016:
 
States, municipalities and political subdivisions
 
Corporate bonds
 
Asset-backed securities
 
Equities
 
Total
Balance at January 1, 2016
$
343

 
$
10,895

 
$
1,036

 
$
3,978

 
$
16,252

Unrealized gains (losses) (1)
(15
)
 
134

 
(39
)
 
—

 
80

Purchases
—

 
—

 
—

 
727

 
727

Disposals
(160
)
 
(1,135
)
 
(548
)
 
(118
)
 
(1,961
)
Balance at December 31, 2016
$
168

 
$
9,894

 
$
449

 
$
4,587

 
$
15,098


(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 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.