10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2018

or

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-34257

________________________

UNITED FIRE GROUP, INC.

(Exact name of registrant as specified in its charter)

____________________________

Iowa	45-2302834
(State of Incorporation)	(IRS Employer Identification No.)

118 Second Avenue, S.E., Cedar Rapids, Iowa 52401

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (319) 399-5700

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES ☒NO ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YES ☒NO ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer☒	Accelerated filer ☐	Non-accelerated filer ☐	Smaller reporting company ☐
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐

NO ☒

As of May 7, 2018, 24,926,648 shares of common stock were outstanding.

United Fire Group, Inc.

Index to Quarterly Report on Form 10-Q

March 31, 2018

	Page
Forward-Looking Information	1
Part I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets as of March 31, 2018 (unaudited) and December 31, 2017	2
Consolidated Statements of Income and Comprehensive Income (unaudited) for the three-month periods ended March 31, 2018 and 2017	3
Consolidated Statement of Stockholders’ Equity (unaudited) for the three-month period ended March 31, 2018	4
Consolidated Statements of Cash Flows (unaudited) for the three-month periods ended March 31, 2018 and 2017	5
Notes to Unaudited Consolidated Financial Statements	6
Review Report of Independent Registered Public Accounting Firm	40
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	41
Item 3. Quantitative and Qualitative Disclosures About Market Risk	54
Item 4. Controls and Procedures	54
Part II. Other Information
Item 1. Legal Proceedings	55
Item 1A. Risk Factors	55
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	55
Item 3. Defaults Upon Senior Securities	55
Item 4. Mine Safety Disclosures	55
Item 5. Other Information	55
Item 6. Exhibits	56
Signatures	57

FORWARD-LOOKING INFORMATION

This report may contain forward-looking statements about our operations, anticipated performance and other similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), for forward-looking statements. The forward-looking statements are not historical facts and involve risks and uncertainties that could cause actual results to differ from those expected and/or projected. Such forward-looking statements are based on current expectations, estimates, forecasts and projections about United Fire Group, Inc. ("UFG," the "Registrant," the "Company," "we," "us," or "our"), the industry in which we operate, and beliefs and assumptions made by management. Words such as "expect(s)," "anticipate(s)," "intend(s)," "plan(s)," "believe(s)," "continue(s)," "seek(s)," "estimate(s)," "goal(s)," "target(s)," "forecast(s)," "project(s)," "predict(s)," "should," "could," "may," "will," "might," "hope," "can" and other words and terms of similar meaning or expression in connection with a discussion of future operations, financial performance or financial condition, are intended to identify forward-looking statements. See Part I, Item 1A "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2017 and Part II, Item 1A "Risk Factors" of this report for more information concerning factors that could cause actual results to differ materially from those in the forward-looking statements.

Risks and uncertainties that may affect the actual financial condition and results of the Company include, but are not limited to, the following:

• The frequency and severity of claims, including those related to catastrophe losses and the impact those claims have on our loss reserve adequacy; the occurrence of catastrophic events, including international events, significant severe weather conditions, climate change, acts of terrorism, acts of war and pandemics;

• The adequacy of our reserves for property and casualty insurance losses and loss settlement expenses;

• Geographic concentration risk in the property and casualty insurance business;

• The potential disruption of our operations and reputation due to unauthorized data access, cyber-attacks or cyber-terrorism and other security breaches;

• Developments in general economic conditions, domestic and global financial markets, interest rates and other-than-temporary impairment losses that could affect the performance of our investment portfolio;

• Our ability to effectively underwrite and adequately price insured risks;

• Changes in industry trends, an increase in competition and significant industry developments;

• Litigation or regulatory actions that could require us to pay significant damages, fines or penalties or change the way we do business;

• Lowering of one or more of the financial strength ratings of our operating subsidiaries or our issuer credit ratings and the adverse impact such action may have on our premium writings, policy retention, profitability and liquidity;

• Governmental actions, policies and regulations, including, but not limited to, domestic health care reform, financial services regulatory reform, corporate governance, new laws or regulations or court decisions interpreting existing laws and regulations or policy provisions; changes in laws, regulations and stock exchange requirements relating to corporate governance and the cost of compliance;

• Our relationship with and the financial strength of our reinsurers; and

• Competitive, legal, regulatory or tax changes that affect the distribution cost or demand for our products through our independent agent/agency distribution network.

These are representative of the risks, uncertainties, and assumptions that could cause actual outcomes and results to differ materially from what is expressed in forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report or as of the date they are made. Except as required under the federal securities laws and the rules and regulations of the Securities and Exchange Commission ("SEC"), we do not have any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

1

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

United Fire Group, Inc. Consolidated Balance Sheets
(In Thousands, Except Share Data)	March 31, 2018			December 31, 2017
	(unaudited)
ASSETS
Investments
Fixed maturities
Held-to-maturity, at amortized cost (fair value $150 in 2018 and $150 in 2017)	$	150		$	150
Available-for-sale, at fair value (amortized cost $1,577,448 in 2018 and $1,516,610 in 2017)	1,563,996			1,535,070
Trading securities, at fair value (amortized cost $13,229 in 2018 and $14,582 in 2017)	15,379			16,842
Equity securities at fair value (cost $65,481 in 2018 and $63,275 in 2017)	280,362			287,344
Other long-term investments	44,998			49,352
Short-term investments	175			175
	1,905,060			1,888,933
Cash and cash equivalents	316,852			95,562
Accrued investment income	15,083			13,841
Premiums receivable (net of allowance for doubtful accounts of $1,082 in 2018 and $1,255 in 2017)	339,007			328,513
Deferred policy acquisition costs	89,836			88,102
Property and equipment (primarily land and buildings, at cost, less accumulated depreciation of $52,693 in 2018 and $51,603 in 2017)	71,929			68,992
Reinsurance receivables and recoverables	63,506			63,194
Prepaid reinsurance premiums	4,002			3,749
Income taxes receivable	—			6,031
Goodwill and intangible assets	23,783			23,971
Other assets	16,306			16,409
Assets held for sale	—			1,586,134
TOTAL ASSETS	$	2,845,364		$	4,183,431
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Losses and loss settlement expenses	$	1,219,981		$	1,224,183
Unearned premiums	476,912			465,391
Accrued expenses and other liabilities	158,811			167,396
Income taxes payable	17,581			—
Deferred income taxes	1,386			5,953
Liabilities held for sale	—			1,347,135
TOTAL LIABILITIES	$	1,874,671		$	3,210,058
Stockholders’ Equity
Common stock, $0.001 par value; authorized 75,000,000 shares; 24,912,748 and 24,916,806 shares issued and outstanding in 2018 and 2017, respectively	$	25		$	25
Additional paid-in capital	194,504			196,334
Retained earnings	832,031			608,700
Accumulated other comprehensive income (loss), net of tax	(55,867		)	168,314
TOTAL STOCKHOLDERS’ EQUITY	$	970,693		$	973,373
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,845,364		$	4,183,431

The Notes to unaudited Consolidated Financial Statements are an integral part of these statements.

2

United Fire Group, Inc.

Consolidated Statements of Income and Comprehensive Income (Unaudited)

	Three Months Ended March 31,
(In Thousands, Except Share Data)	2018			2017
Revenues
Net premiums earned	$	245,167		$	236,444
Investment income, net of investment expenses	13,492			12,585
Net realized investment gains (losses) (includes reclassifications for net unrealized investment gains on available-for-sale securities of $37 in 2018 and $3,405 in 2017; previously included in accumulated other comprehensive income)	(7,864		)	2,249
Total revenues	$	250,795		$	251,278
Benefits, Losses and Expenses
Losses and loss settlement expenses	$	144,728		$	156,552
Amortization of deferred policy acquisition costs	49,639			50,461
Other underwriting expenses (includes reclassifications for employee benefit costs of $1,660 in 2018 and $1,352 in 2017; previously included in accumulated other comprehensive income)	34,855			21,259
Total benefits, losses and expenses	$	229,222		$	228,272
Income from continuing operations before income taxes	$	21,573		$	23,006
Federal income tax expense (includes reclassifications of $341 in 2018 and ($718) in 2017; previously included in accumulated other comprehensive income)	1,209			4,422
Income from continuing operations	$	20,364		$	18,584
Income (loss) from discontinued operations, net of taxes	(1,912		)	1,352
Gain on sale of discontinued operations, net of taxes	27,307			—
Net income	$	45,759		$	19,936
Other comprehensive income
Change in net unrealized appreciation on investments	$	(51,814	)	$	14,966
Change in liability for underfunded employee benefit plans	—			—
Other comprehensive income, before tax and reclassification adjustments	$	(51,814	)	$	14,966
Income tax effect	10,881			(5,238		)
Other comprehensive income, after tax, before reclassification adjustments	$	(40,933	)	$	9,728
Reclassification adjustment for net realized investment gains included in income	$	(37	)	$	(3,405	)
Reclassification adjustment for employee benefit costs included in expense	1,660			1,352
Total reclassification adjustments, before tax	$	1,623		$	(2,053	)
Income tax effect	(341		)	718
Total reclassification adjustments, after tax	$	1,282		$	(1,335	)
Comprehensive income	$	6,108		$	28,329
Diluted weighted average common shares outstanding	25,458,090			25,854,181
Earnings per common share from continuing operations:
Basic	$	0.82		$	0.73
Diluted	0.80			0.72
Earnings per common share:
Basic	$	1.84		$	0.78
Diluted	1.80			0.77

The Notes to unaudited Consolidated Financial Statements are an integral part of these statements.

3

United Fire Group, Inc.

Consolidated Statement of Stockholders’ Equity (Unaudited)

(In Thousands, Except Share Data)	Three Months Ended March 31, 2018
Common stock
Balance, beginning of year	$	25
Shares repurchased (120,372 shares)	—
Shares issued for stock-based awards (116,314 shares)	—
Balance, end of period	$	25
Additional paid-in capital
Balance, beginning of year	$	196,334
Compensation expense and related tax benefit for stock-based award grants	1,281
Shares repurchased	(5,404		)
Shares issued for stock-based awards	2,293
Balance, end of period	$	194,504
Retained earnings
Balance, beginning of year	$	608,700
Cumulative effect of change in accounting principle	191,244
Net unrealized investment depreciation of discontinued operations, sold	(6,714		)
Net income	45,759
Dividends on common stock ($0.28 per share)	(6,958		)
Balance, end of period	$	832,031
Accumulated other comprehensive income (loss), net of tax
Balance, beginning of year	$	168,314
Cumulative effect of change in accounting principle	(191,244		)
Change in net unrealized investment appreciation(1)	(34,248		)
Change in liability for underfunded employee benefit plans(2)	1,311
Balance, end of period	$	(55,867	)
Summary of changes
Balance, beginning of year	$	973,373
Net income	45,759
All other changes in stockholders’ equity accounts	(48,439		)
Balance, end of period	$	970,693

(1) The change in net unrealized appreciation is net of reclassification adjustments and income taxes.

(2) The change in liability for underfunded employee benefit plans is net of reclassification adjustments and income taxes.

The Notes to unaudited Consolidated Financial Statements are an integral part of these statements.

4

United Fire Group, Inc.

Consolidated Statements of Cash Flows (Unaudited)

	Three Months Ended March 31,
(In Thousands)	2018			2017
Cash Flows From Operating Activities
Net income	$	45,759		$	19,936
Less net income (loss) from discontinued operations, net of taxes	(1,912		)	1,352
Adjustments to reconcile net income to net cash provided by operating activities
Net accretion of bond premium	2,178			2,252
Depreciation and amortization	1,159			1,165
Stock-based compensation expense	1,281			1,044
Net realized investment (gains) losses	7,864			(2,249		)
Net cash flows from trading investments	383			(610		)
Deferred income tax benefit	(3,879		)	(975		)
Changes in:
Accrued investment income	(1,242		)	(1,329		)
Premiums receivable	(10,494		)	(18,226		)
Deferred policy acquisition costs	(1,734		)	(2,623		)
Reinsurance receivables	(312		)	(582		)
Prepaid reinsurance premiums	(253		)	(59		)
Income taxes receivable	6,031			4,751
Other assets	104			(341		)
Losses and loss settlement expenses	(4,202		)	16,823
Unearned premiums	11,521			23,231
Accrued expenses and other liabilities	(6,925		)	(9,065		)
Income taxes payable	17,581			—
Deferred income taxes	(14,039		)	2,526
Other, net	1,708			(1,504		)
Cash from operating activities - continuing operations	6,730			14,229
Cash from operating activities - discontinued operations	4,024			6,394
Cash from operating activities - gain on sale of discontinued operations	(34,851		)	—
Total adjustments	$	(24,097	)	$	20,623
Net cash provided by operating activities	$	23,574		$	39,207
Cash Flows From Investing Activities
Proceeds from sale of available-for-sale investments	$	—		$	1,096
Proceeds from call and maturity of available-for-sale investments	30,320			40,055
Proceeds from short-term and other investments	3,078			1,665
Proceeds from the sale of discontinued operations	276,055			—
Purchase of available-for-sale investments	(93,115		)	(80,097		)
Purchase of short-term and other investments	(676		)	(1,590		)
Net purchases and sales of property and equipment	(3,851		)	(1,392		)
Cash from investing activities - continuing operations	211,811			(40,263		)
Cash from investing activities - discontinued operations	14,343			12,035
Net cash provided by (used in) investing activities	$	226,154		$	(28,228	)
Cash Flows From Financing Activities
Payment of cash dividends	$	(6,960	)	$	(6,367	)
Repurchase of common stock	(5,404		)	(5,749		)
Issuance of common stock	2,293			1,244
Cash from financing activities - continuing operations	(10,071		)	(10,872		)
Cash from financing activities - discontinued operations	(11,547		)	(17,304		)
Net cash used in financing activities	$	(21,618	)	$	(28,176	)
Net Change in Cash and Cash Equivalents	$	228,110		$	(17,197	)
Less: increase in cash and cash equivalents - discontinued operations	(6,820		)	(1,125		)
Net increase (decrease) in cash and cash equivalents - continuing operations	221,290			(18,322		)
Cash and Cash Equivalents at Beginning of Period - Continuing Operations	95,562			89,194
Cash and Cash Equivalents at End of Period - Continuing Operations	$	316,852		$	70,872

The Notes to unaudited Consolidated Financial Statements are an integral part of these statements.

5

UNITED FIRE GROUP, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands, except share amounts or as otherwise noted)

NOTE 1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Nature of Business

United Fire Group, Inc. ("UFG," the "Registrant," the "Company," "we," "us," or "our") and its consolidated subsidiaries and affiliates are engaged in the business of writing property and casualty insurance through a network of independent agencies. Our insurance company subsidiaries are licensed as a property and casualty insurer in 46 states and the District of Columbia.

Discontinued Operations

We have historically reported our operations in two business segments: property and casualty insurance and life insurance. On September 18, 2017, the Company signed a definitive agreement to sell its subsidiary, United Life Insurance Company ("United Life"), to Kuvare US Holdings, Inc. ("Kuvare") and on March 30, 2018 the sale closed. As a result, our life insurance business, previously a separate segment, was considered held for sale and reported as discontinued operations in the Consolidated Balance Sheets, Consolidated Statements of Income and Comprehensive Income and Consolidated Statements of Cash Flows for all periods presented in this Form 10-Q (collectively, the "Consolidated Financial Statements"). Subsequent to the announcement of this sale, our continuing operations were reported as one business segment. All current and prior periods reflected in this Form 10-Q have been presented as continuing and discontinued operations, unless otherwise noted. For more information, refer to Note 11. Discontinued Operations.

Basis of Presentation

The unaudited consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial reporting and with the instructions to Form 10-Q and Regulation S-X promulgated by the SEC. Certain financial information that is included in our Annual Report on Form 10-K, including certain financial statement footnote disclosures, are not required by the rules and regulations of the SEC for interim financial reporting and have been condensed or omitted.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The financial statement categories that are most dependent on management estimates and assumptions include: investments; deferred policy acquisition costs; reinsurance receivables and recoverables; future policy benefits and losses, and loss settlement expenses; and pension and postretirement benefit obligations.

Certain prior year amounts have been reclassified to conform to the current year presentation.

Management of UFG believes the accompanying unaudited Consolidated Financial Statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. All significant intercompany transactions have been eliminated in consolidation. The results reported for the interim periods are not necessarily indicative of the results of operations that may be expected for the year. The unaudited Consolidated Financial Statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2017. The review report of Ernst & Young LLP as of March 31, 2018 and for the three-month periods ended March 31, 2018 and 2017 accompanies the unaudited Consolidated Financial Statements included in Part I, Item 1 "Financial Statements."

6

Cash and Cash Equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash, money market accounts, and non-negotiable certificates of deposit with original maturities of three months or less.

For the three-month periods ended March 31, 2018 and 2017, we made payments for income taxes for continuing operations totaling $19 and $9, respectively. We received a tax refund of $1,503 during the three-month period ended March 31, 2018. We did not receive a tax refund during the three-month period ended March 31, 2017.

For the three-month periods ended March 31, 2018 and 2017, we made no interest payments (excluding interest credited to policyholders’ accounts).

Deferred Policy Acquisition Costs ("DAC")

Certain costs associated with underwriting new business (primarily commissions, premium taxes and variable underwriting and policy issue expenses associated with successful acquisition efforts) are deferred. The following table is a summary of the components of DAC, including the related amortization recognized for the three-month period ended March 31, 2018.

	Continuing Operations			Discontinued Operations
	Property & Casualty Insurance			Life Insurance			Total
Recorded asset at beginning of period	$	88,102		$	71,151		$	159,253
Underwriting costs deferred	51,373			1,376			52,749
Amortization of deferred policy acquisition costs	(49,639		)	(1,895		)	(51,534		)
Ending unamortized deferred policy acquisition costs	$	89,836		$	70,632		$	160,468
Impact of unrealized gains and losses on available-for-sale securities	—			7,274			7,274
Sale of discontinued operations	—			(77,906		)	(77,906		)
Recorded asset at March 31, 2018	$	89,836		$	—		$	89,836

Property and casualty insurance policy acquisition costs deferred are amortized as premium revenue is recognized. The method followed in computing DAC limits the amount of such deferred costs to their estimated realizable value. This takes into account the premium to be earned, losses and loss settlement expenses expected to be incurred and certain other costs expected to be incurred as the premium is earned.

For traditional life insurance policies, DAC is amortized to income over the premium-paying period in proportion to the ratio of the expected annual premium revenue to the expected total premium revenue. Expected premium revenue and gross profits are based on the same mortality and withdrawal assumptions used in determining future policy benefits. These assumptions are not revised after policy issuance unless the recorded DAC asset is deemed to be unrecoverable from future expected profits.

For non-traditional life insurance policies, DAC is amortized over the anticipated terms in proportion to the ratio of the expected annual gross profits to the total expected gross profits. Changes in the amount or timing of expected gross profits result in adjustments to the cumulative amortization of these costs. The effect on amortization of DAC for revisions to estimated gross profits is reported in earnings in the period the estimated gross profits are revised.

The effect on DAC that results from the assumed realization of unrealized gains (losses) on investments allocated to non-traditional life insurance business is recognized with an offset to net unrealized investment appreciation as of the balance sheet date. The impact of unrealized gains and losses on available-for-sale securities decreased the DAC asset by $6,294 at December 31, 2017. There was no impact of unrealized gains and losses on available-for-sale

7

securities on the DAC asset at March 31, 2018 because the non-traditional life insurance business is part of discontinued operations, which was sold on March 30, 2018.

Income Taxes

The Tax Cuts and Jobs Act of 2017 (the "Tax Act") was enacted on December 22, 2017. The Tax Act significantly revised the U.S. corporate income tax laws including lowering the U.S. federal corporate tax rate from 35 percent to 21 percent, effective January 1, 2018.

In December 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118, which addresses how a company recognizes provisional amounts when a company does not have the necessary information available, prepared or analyzed in reasonable detail to complete its accounting for the effect of the changes in the Tax Act. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. As of March 31, 2018 we had not completed accounting for the tax effects of enactment of the Tax Act, however for certain items, we have made a reasonable estimate of the effects on our deferred tax balances. For other items where we could not make a reasonable estimate, we are still using existing accounting guidance and the provisions of the tax laws that were in place prior to the enactment. The Company will continue to refine this estimated provisional adjustment as we gain a more thorough understanding of the tax law and the Company will take future guidance into consideration when it becomes available.

Deferred tax assets and liabilities are established based on differences between the financial statement bases of assets and liabilities and the tax bases of those same assets and liabilities, using the currently enacted statutory tax rates. Deferred income tax expense is measured by the year-to-year change in the net deferred tax asset or liability, except for certain changes in deferred tax amounts that affect stockholders' equity and do not impact federal income tax expense.

We reported consolidated federal income tax expense from continuing and discontinued operations of $9,316 and $5,153 for the three-month periods ended March 31, 2018 and 2017, respectively. Our effective tax rate is different than the federal statutory rate of 21 percent, due principally to the effect of tax-exempt municipal bond interest income and non-taxable dividend income.

The Company performs a quarterly review of its tax positions and makes a determination of whether it is more likely than not that the tax position will be sustained upon examination. If, based on review, it appears not more likely than not that the positions will be sustained, the Company will calculate any unrecognized tax benefits and, if necessary, calculate and accrue any related interest and penalties. We did not recognize any liability for unrecognized tax benefits at March 31, 2018 or December 31, 2017. In addition, we have not accrued for interest and penalties related to unrecognized tax benefits. However, if interest and penalties would need to be accrued related to unrecognized tax benefits, such amounts would be recognized as a component of federal income tax expense.

With regard to the sale of our life insurance subsidiary, federal income taxes were allocated to continuing and discontinued operations in accordance with the Company’s tax allocation agreement and the terms of the definitive agreement related to the sale.

We file a consolidated federal income tax return. We also file income tax returns in various state jurisdictions. We are no longer subject to federal or state income tax examination for years before 2014.

Subsequent Events

In the preparation of the accompanying financial statements, the Company has evaluated all material subsequent events or transactions that occurred after the balance sheet date through the date on which the financial statements were issued for potential recognition or disclosure in the Company's financial statements. The Company concluded there are no material subsequent events or transactions that have occurred after the balance sheet date through the date on which the financial statements were issued.

8

Recently Issued Accounting Standards

Accounting Standards Adopted in 2018

Revenue Recognition

In May 2014, the FASB issued comprehensive new guidance on revenue recognition which supersedes nearly all existing revenue recognition guidance under GAAP. The new guidance requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard creates a five-step model that requires companies to exercise judgment when considering the terms of the contract(s) and all relevant facts and circumstances. Insurance contracts are not within the scope of this new guidance. The new guidance is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the guidance as of January 1, 2018. The adoption of the new guidance had no impact on the Company's reporting and disclosure of net premiums earned from insurance contracts, net investment income or net realized gains and losses, as these revenue streams are not within the scope of this new guidance. The remaining revenue streams are immaterial and not impacted by the new standard.

Financial Instruments

In January 2016, the FASB issued guidance updating certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments in this update supersede the guidance to classify equity securities with readily determinable fair values into different categories (for example, trading or available-for-sale) and require equity securities to be measured at fair value with changes in the fair value recognized through net income. The new guidance also simplifies the impairment process for equity investments without readily determinable fair values. The new guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted the new guidance as of January 1, 2018. The adoption of the new guidance resulted in a reclassification from accumulated other comprehensive income to retained earnings of $191.2 million after tax, which is equal to the amount of net unrealized gains and losses on available-for-sale equity securities on January 1, 2018. Also, in the three months ended March 31, 2018, the Company recognized $8.1 million after-tax of net realized investment losses in net income from the change in value of equity securities due to the adoption of this new accounting guidance.

Statement of Cash Flows - Classification of Certain Cash Receipts and Payments

In August 2016, the FASB issued an update that clarifies the classification of certain cash receipts and payments in the Statement of Cash Flows. The update addresses eight existing cash flow issues by clarifying the correct classification to establish uniformity in practice. The updated guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted the new guidance as of January 1, 2018. The adoption had no impact on the Company's financial position and results of operations.

Defined Benefit Retirement Plan Cost

In March 2017, the FASB issued guidance on the presentation of net periodic benefit costs of defined benefit retirement benefit plans in the Statements of Income. The new guidance requires the service cost component of net periodic benefit cost of defined benefit plans to be presented in the same line in the Statements of Income as other employee compensation expenses. Also, under the new guidance, the service cost component of the net periodic benefit costs will be the only portion of costs subject to be capitalized in assets. The new guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted the new guidance as of January 1, 2018. The adoption of the new guidance resulted in a change in the capitalization of deferred acquisition costs to only include the pension and post retirement service costs in place of the total net periodic benefit costs. The adoption had an immaterial impact on the Company's financial position and results of operations. Additionally, the adoption did not impact the Company's presentation in the Statements of Income as all

9

net periodic benefit costs and employee compensation expenses are included within the same category in the Statements of Income.

Share-Based Payments

In May 2017, the FASB issued new guidance which clarifies and addresses the diversity in practice when there is a change in the terms of a share-based payment award. The updated guidance clarifies when to use modification accounting when there is a change in the terms of a share-based payment and provides three conditions where modification accounting should not be applied. The new guidance is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the new guidance as of January 1, 2018. The adoption had no impact on the Company's financial position and results of operations.

Pending Adoption of Accounting Standards

Leases

In February 2016, the FASB issued guidance on the accounting for leases. The new guidance requires lessees to place a right-of-use asset and a lease liability, for all leases with terms greater than 12 months, on their balance sheets. The lease liability will be based on the present value of the future lease payments and the asset will be based on the liability. Expenses will be recognized on the income statement in a similar manner as previous methods. The new guidance is effective for annual periods beginning after December 15, 2018 and interim periods within those years. The Company will adopt the new guidance as of January 1, 2019. The Company has created an inventory of its operating leases and has calculated the undiscounted future minimum lease payments, which are disclosed in Note 13. Lease Commitments of the Company's Annual Report on Form 10-K for the year ended December 31, 2017. The undiscounted future minimum lease payments at December 31, 2017 is $22.5 million, which represents less than 1.0 percent of the Company's total assets at December 31, 2017. The Company is reviewing and updating its processes and controls under the new guidance. Management currently believes that the adoption will not have a significant impact on the Company's financial position and results of operations.

Financial Instruments - Credit Losses

In June 2016, the FASB issued new guidance on the measurement of credit losses for most financial instruments. The new guidance replaces the current incurred loss model for recognizing credit losses with an expected loss model for instruments measured at amortized cost and requires allowances to be recorded for available-for-sale debt securities rather than reduce the carrying amount. These allowances will be remeasured each reporting period. The new guidance is effective for annual periods beginning after December 15, 2020 and interim periods within those years. The Company will adopt the new guidance as of January 1, 2021 and is currently evaluating the impact on the Company's financial position, results of operations and key processes.

Income Taxes - Intra-entity Transfers

In October 2016, the FASB issued new guidance on the income tax treatment of intra-entity transfers. The new guidance replaces the current guidance which prohibits the recognition of current and deferred income taxes of intra-entity transfers until the asset is sold externally. Under the new guidance, the exemption is eliminated and income taxes will be recognized on transfers of intra-entity assets. The new guidance is effective for annual periods beginning after December 15, 2018 and interim periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2019 and is currently evaluating the impact on the Company's financial position and results of operations.

Goodwill

In January 2017, the FASB issued new guidance which simplifies the test for goodwill impairment. The new guidance eliminates the implied fair value calculation when measuring a goodwill impairment charge. Under the new guidance, impairment charges will be based on the excess of the carrying value over fair value of goodwill. The new guidance is effective for annual and interim periods beginning after December 15, 2019. The Company will

10

adopt the new guidance as of January 1, 2020 and it currently believes the adoption will have no impact on the Company's financial position and results of operations.

NOTE 2. SUMMARY OF INVESTMENTS

Fair Value of Investments

A reconciliation of the amortized cost (cost for equity securities) to fair value of investments in held-to-maturity and available-for-sale fixed maturity and equity securities, presented on a consolidated basis, including both continuing and discontinued operations as of March 31, 2018 and December 31, 2017, is as follows:

11

March 31, 2018
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities:
Bonds
Corporate bonds - financial services	$	150	$	—	$	—	$	150
Mortgage-backed securities	—		—		—		—
Total Held-to-Maturity Fixed Maturities	$	150	$	—	$	—	$	150
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	15,995	$	1	$	270	$	15,726
U.S. government agency	135,379		606		1,556		134,429
States, municipalities and political subdivisions
General obligations:
Midwest	105,376		1,019		1,060		105,335
Northeast	46,132		468		196		46,404
South	134,796		916		1,993		133,719
West	112,871		976		1,516		112,331
Special revenue:
Midwest	143,823		1,495		1,188		144,130
Northeast	64,020		481		1,443		63,058
South	250,757		1,707		4,404		248,060
West	149,928		1,294		2,757		148,465
Foreign bonds	10,826		156		—		10,982
Public utilities	48,024		249		632		47,641
Corporate bonds
Energy	22,516		157		228		22,445
Industrials	33,214		200		427		32,987
Consumer goods and services	31,044		217		291		30,970
Health care	12,170		93		37		12,226
Technology, media and telecommunications	15,447		74		265		15,256
Financial services	55,489		226		1,203		54,512
Mortgage-backed securities	8,763		71		152		8,682
Collateralized mortgage obligations
Government national mortgage association	74,000		280		2,086		72,194
Federal home loan mortgage corporation	56,578		73		1,822		54,829
Federal national mortgage association	47,104		142		1,100		46,146
Asset-backed securities	3,196		318		45		3,469
Total Available-for-Sale Fixed Maturities	$	1,577,448	$	11,219	$	24,671	$	1,563,996

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December 31, 2017
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities:
Bonds
Corporate bonds - financial services	$	150	$	—	$	—	$	150
Mortgage-backed securities	34		—		—		34
Total Held-to-Maturity Fixed Maturities	$	184	$	—	$	—	$	184
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	17,073	$	4	$	186	$	16,891
U.S. government agency	121,574		1,311		717		122,168
States, municipalities and political subdivisions
General obligations:
Midwest	107,689		2,446		439		109,696
Northeast	47,477		1,174		10		48,641
South	139,870		2,462		813		141,519
West	111,123		2,351		463		113,011
Special revenue:
Midwest	155,475		3,620		351		158,744
Northeast	79,028		1,351		619		79,760
South	260,145		5,218		1,851		263,512
West	156,576		2,929		1,198		158,307
Foreign bonds	51,361		1,441		49		52,753
Public utilities	206,028		3,386		270		209,144
Corporate bonds
Energy	93,191		1,972		110		95,053
Industrials	218,067		3,881		241		221,707
Consumer goods and services	183,253		3,498		494		186,257
Health care	74,125		1,312		29		75,408
Technology, media and telecommunications	146,853		2,376		250		148,979
Financial services	277,824		5,769		442		283,151
Mortgage-backed securities	13,828		101		238		13,691
Collateralized mortgage obligations
Government national mortgage association	157,836		1,921		2,274		157,483
Federal home loan mortgage corporation	201,320		1,879		4,047		199,152
Federal national mortgage association	104,903		1,703		1,174		105,432
Asset-backed securities	4,282		362		8		4,636
Total Available-for-Sale Fixed Maturities	$	2,928,901	$	52,467	$	16,273	$	2,965,095
Equity securities:
Common stocks

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Public utilities	$	6,394	$	16,075	$	30	$	22,439
Energy	6,514		8,171		120		14,565
Industrials	13,117		53,522		120		66,519
Consumer goods and services	10,110		15,742		164		25,688
Health care	7,763		32,340		—		40,103
Technology, media and telecommunications	6,067		11,556		115		17,508
Financial services	11,529		104,985		67		116,447
Nonredeemable preferred stocks	992		305		—		1,297
Total Available-for-Sale Equity Securities	$	62,486	$	242,696	$	616	$	304,566
Total Available-for-Sale Securities	$	2,991,387	$	295,163	$	16,889	$	3,269,661

The following table is a reconciliation of the amortized cost (cost for equity securities) to fair value of investments in held-to-maturity and available-for-sale fixed maturity and equity securities for continuing and discontinued operations by investment type at March 31, 2018 and December 31, 2017:

March 31, 2018
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities:
Continuing operations	$	150	$	—	$	—	$	150
Discontinued operations	—		—		—		—
Total Held-to-Maturity Fixed Maturities	$	150	$	—	$	—	150
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	$	1,577,448	$	11,219	$	24,671	$	1,563,996
Discontinued operations	—		—		—		—
Total Available-for-Sale Fixed Maturities	$	1,577,448	$	11,219	$	24,671	$	1,563,996

Note: The sale of our life insurance business was completed on March 30, 2018.

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December 31, 2017
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities:
Continuing operations	$	150	$	—	$	—	$	150
Discontinued operations	34		—		—		34
Total Held-to-Maturity Fixed Maturities	$	184	$	—	$	—	$	184
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	$	1,516,610	$	27,412	$	8,952	$	1,535,070
Discontinued operations	1,412,291		25,055		7,321		1,430,025
Total Available-for-Sale Fixed Maturities	2,928,901		52,467		16,273		2,965,095
Equity securities:
Continuing operations	$	57,387	$	224,065	$	539	$	280,913
Discontinued operations	5,099		18,631		77		23,653
Total Available-for-Sale Equity Securities	62,486		242,696		616		304,566
Total Available-for-Sale Securities	$	2,991,387	$	295,163	$	16,889	$	3,269,661

Maturities

The amortized cost and fair value of held-to-maturity, available-for-sale and trading fixed maturity securities at March 31, 2018, by contractual maturity, are shown in the following tables. The table below includes investments from continuing operations. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset-backed securities, mortgage-backed securities and collateralized mortgage obligations may be subject to prepayment risk and are therefore not categorized by contractual maturity.

Maturities
	Held-To-Maturity				Available-For-Sale				Trading
March 31, 2018	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	—	$	—	$	48,086	$	48,368	$	2,359	$	2,629
Due after one year through five years	150		150		187,837		189,107		8,750		10,497
Due after five years through 10 years	—		—		447,086		447,598		1,100		965
Due after 10 years	—		—		704,798		693,603		1,020		1,288
Asset-backed securities	—		—		3,196		3,469		—		—
Mortgage-backed securities	—		—		8,763		8,682		—		—
Collateralized mortgage obligations	—		—		177,682		173,169		—		—
	$	150	$	150	$	1,577,448	$	1,563,996	$	13,229	$	15,379

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Net Realized Investment Gains and Losses

Net realized gains on disposition of investments are computed using the specific identification method and are included in the computation of net income. A summary of the components of net realized investment gains (losses) is as follows:

	Three Months Ended March 31,
	2018			2017
Net realized investment gains (losses) from continuing operations:
Fixed maturities:
Available-for-sale	$	4		$	424
Trading securities
Change in fair value	(111		)	371
Sales	556			57
Equity securities
Change in fair value	(9,188		)	111
Sales	875			1,286
Total net realized investment gains (losses) from continuing operations	$	(7,864	)	$	2,249
Total net realized investment gains (losses) from discontinued operations	(1,057		)	1,705
Total net realized investment gains (losses)	$	(8,921	)	$	3,954

The proceeds and gross realized gains on the sale of available-for-sale fixed maturity securities from continuing operations are as follows:

	Three Months Ended March 31,
	2018		2017
Proceeds from sales	$	—	$	1,095
Gross realized gains	—		1,046
Gross realized losses	—		—

The proceeds and gross realized gains on the sale of available-for-sale fixed maturity securities from discontinued operations are as follows:

	Three Months Ended March 31,
	2018		2017
Proceeds from sales	$	—	$	3,964
Gross realized gains	—		1,254
Gross realized losses	—		(78		)

Note: The sale of our life insurance business was completed on March 30, 2018.

There were no sales of held-to-maturity securities during the three-month periods ended March 31, 2018 and 2017.

Our investment portfolio includes trading securities with embedded derivatives. These securities are primarily convertible securities which are recorded at fair value. Income or loss, including the change in the fair value of these trading securities, is recognized currently in earnings as a component of net realized investment gains. Our portfolio of trading securities had a fair value of $15,379 and $16,842 at March 31, 2018 and December 31, 2017, respectively.

Funding Commitment

Pursuant to an agreement with one of our limited liability partnership investments, we are contractually committed through December 31, 2023 to make capital contributions upon request of the partnership. Our remaining potential contractual obligation was $1,499 at March 31, 2018.

16

Unrealized Appreciation

A summary of the changes in net unrealized investment appreciation during the reporting period is as follows:

	Three Months Ended March 31,
	2018			2017
Change in net unrealized investment appreciation
Available-for-sale fixed maturities	$	(59,126	)	$	7,043
Available-for-sale equity securities	—			5,795
Deferred policy acquisition costs	7,274			(1,277		)
Income tax effect	10,890			(4,046		)
Net unrealized investment depreciation of discontinued operations, sold	6,714			—
Cumulative change in accounting principles	(191,244		)	—
Total change in net unrealized investment appreciation, net of tax	$	(225,492	)	$	7,515

We continually monitor the difference between our cost basis and the estimated fair value of our investments. Our accounting policy for impairment recognition requires other-than-temporary impairment ("OTTI") charges to be recorded when we determine that it is more likely than not that we will be unable to collect all amounts due according to the contractual terms of the fixed maturity security or that the anticipated recovery in fair value of the equity security will not occur in a reasonable amount of time. Impairment charges on investments are recorded based on the fair value of the investments at the measurement date or based on the value calculated using a discounted cash flow model. Credit-related impairments on fixed maturity securities that we do not plan to sell, and for which we are not more likely than not to be required to sell, are recognized in net income. Any non-credit related impairment is recognized as a component of other comprehensive income. Factors considered in evaluating whether a decline in value is other-than-temporary include: the length of time and the extent to which fair value has been less than cost; the financial condition and near-term prospects of the issuer; our intention to hold the investment; and the likelihood that we will be required to sell the investment.

The tables on the following pages summarize our fixed maturity and equity securities that were in an unrealized loss position on a consolidated basis, including both continuing and discontinued operations at March 31, 2018 and December 31, 2017. The securities are presented by the length of time they have been continuously in an unrealized loss position. It is possible that we could recognize OTTI charges in future periods on securities held at March 31, 2018, if future events or information cause us to determine that a decline in fair value is other-than-temporary.

We have evaluated the near-term prospects of the issuers of our fixed maturity securities in relation to the severity and duration of the unrealized loss and determined that these losses did not warrant the recognition of an OTTI charge at March 31, 2018 or at March 31, 2017. We have no intent to sell, and it is more likely than not that we will not be required to sell, these securities until the fair value recovers to at least equal our cost basis or the securities mature.

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March 31, 2018	Less than 12 months					12 months or longer					Total
Type of Investment	Number of Issues	Fair Value		Gross Unrealized Depreciation		Number of Issues	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	5	$	10,263	$	141	1	$	4,711	$	129	$	14,974	$	270
U.S. government agency	15	81,651		1,232		2	7,675		324		89,326		1,556
States, municipalities and political subdivisions
General obligations
Midwest	12	15,917		144		3	19,209		916		35,126		1,060
Northeast	4	13,214		94		1	3,546		102		16,760		196
South	18	38,686		466		11	28,716		1,527		67,402		1,993
West	13	31,285		406		8	25,021		1,110		56,306		1,516
Special revenue
Midwest	20	37,637		334		7	18,561		854		56,198		1,188
Northeast	4	12,466		162		11	27,722		1,281		40,188		1,443
South	24	50,787		866		27	67,940		3,538		118,727		4,404
West	16	30,075		331		21	52,243		2,426		82,318		2,757
Public utilities	13	33,171		632		—	—		—		33,171		632
Corporate bonds
Energy	5	10,567		228		—	—		—		10,567		228
Industrials	6	20,349		427		—	—		—		20,349		427
Consumer goods and services	5	15,823		291		—	—		—		15,823		291
Health care	2	3,694		37		—	—		—		3,694		37
Technology, media and telecommunications	3	9,745		265		—	—		—		9,745		265
Financial services	13	34,617		977		1	5,374		226		39,991		1,203
Mortgage-backed securities	16	2,828		70		10	2,123		82		4,951		152
Collateralized mortgage obligations
Government national mortgage association	20	47,898		1,351		6	12,087		735		59,985		2,086
Federal home loan mortgage corporation	13	35,124		1,050		4	12,590		772		47,714		1,822
Federal national mortgage association	13	33,515		722		1	6,963		378		40,478		1,100
Asset-backed securities	1	2,837		45		—	—		—		2,837		45
Total Available-for-Sale Fixed Maturities	241	$	572,149	$	10,271	114	$	294,481	$	14,400	$	866,630	$	24,671

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December 31, 2017	Less than 12 months					12 months or longer					Total
Type of Investment	Number of Issues	Fair Value		Gross Unrealized Depreciation		Number of Issues	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	5	$	10,370	$	67	2	$	5,765	$	119	$	16,135	$	186
U.S. government agency	11	64,842		390		5	19,372		327		84,214		717
States, municipalities and political subdivisions
General obligations
Midwest	2	2,177		8		3	19,729		431		21,906		439
Northeast	—	—		—		1	3,644		10		3,644		10
South	3	7,959		32		11	29,545		781		37,504		813
West	2	5,944		18		8	25,755		445		31,699		463
Special revenue
Midwest	2	3,486		15		7	19,130		336		22,616		351
Northeast	1	4,471		37		11	28,476		582		32,947		619
South	8	7,749		107		27	69,917		1,744		77,666		1,851
West	3	5,424		16		22	56,753		1,182		62,177		1,198
Foreign bonds	1	857		49		—	—		—		857		49
Public utilities	8	19,186		79		5	8,446		191		27,632		270
Corporate bonds
Energy	1	2,236		13		1	1,606		97		3,842		110
Industrials	10	27,773		146		2	4,275		95		32,048		241
Consumer goods and services	14	32,781		248		3	6,813		246		39,594		494
Health care	4	9,947		29		—	—		—		9,947		29
Technology, media and telecommunications	12	35,319		122		3	10,413		128		45,732		250
Financial services	22	50,144		256		4	11,389		186		61,533		442
Mortgage-backed securities	10	2,458		18		10	6,641		220		9,099		238
Collateralized mortgage obligations
Government national mortgage association	20	49,764		629		17	46,969		1,645		96,733		2,274
Federal home loan mortgage corporation	11	37,543		577		20	75,679		3,470		113,222		4,047
Federal national mortgage association	11	31,958		342		11	20,123		832		52,081		1,174
Asset-backed securities	1	992		8		—	—		—		992		8
Total Available-for-Sale Fixed Maturities	162	$	413,380	$	3,206	173	$	470,440	$	13,067	$	883,820	$	16,273
Equity securities:
Common stocks
Public utilities	—	$	—	$	—	1	$	278	$	30	$	278	$	30
Energy	2	528		120		—	—		—		528		120
Industrials	1	99		13		5	193		107		292		120
Consumer goods and services	—	—		—		2	151		164		151		164
Technology, media and telecommunications	2	466		95		1	4		20		470		115
Financial services	2	193		55		1	9		12		202		67
Total Available-for-Sale Equity Securities	7	$	1,286	$	283	10	$	635	$	333	$	1,921	$	616
Total Available-for-Sale Securities	169	$	414,666	$	3,489	183	$	471,075	$	13,400	$	885,741	$	16,889

19

The tables on the following pages are a reconciliation for continuing and discontinued operations of our total fixed maturity and equity securities that were in an unrealized loss position at March 31, 2018 and December 31, 2017. The sale of our life insurance business was completed on March 30, 2018. The securities are presented by the length of time they have been continuously in an unrealized loss position:

March 31, 2018	Less than 12 months					12 months or longer					Total
Type of Investment	Number of Issues	Fair Value		Gross Unrealized Depreciation		Number of Issues	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	241	$	572,149	$	10,271	114	$	294,481	$	14,400	$	866,630	$	24,671
Discontinued operations	—	—		—		—	—		—		—		—
Total Available-for-Sale Fixed Maturities	241	$	572,149	$	10,271	114	$	294,481	$	14,400	$	866,630	$	24,671

Note: The sale of our life insurance business was completed on March 30, 2018.

December 31, 2017	Less than 12 months					12 months or longer					Total
Type of Investment	Number of Issues	Fair Value		Gross Unrealized Depreciation		Number of Issues	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	88	$	232,489	$	1,791	112	$	302,815	$	7,161	$	535,304	$	8,952
Discontinued operations	74	180,891		1,415		61	167,625		5,906		348,516		7,321
Total Available-for-Sale Fixed Maturities	162	$	413,380	$	3,206	173	$	470,440	$	13,067	$	883,820	$	16,273
Equity securities:
Continuing operations	5	$	1,129	$	236	6	$	385	$	303	$	1,514	$	539
Discontinued operations	2	157		47		4	250		30		407		77
Total Available-for-Sale Equity Securities	7	$	1,286	$	283	10	$	635	$	333	$	1,921	$	616
Total Available-for-Sale Securities	169	$	414,666	$	3,489	183	$	471,075	$	13,400	$	885,741	$	16,889

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NOTE 3. FAIR VALUE OF FINANCIAL INSTRUMENTS

Current accounting guidance on fair value measurements includes the application of a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Our financial instruments that are recorded at fair value are categorized into a three-level hierarchy, which is based upon the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets (i.e., Level 1) and the lowest priority to unobservable inputs (i.e., Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the financial instrument.

Financial instruments recorded at fair value are categorized in the fair value hierarchy as follows:

• Level 1: Valuations are based on unadjusted quoted prices in active markets for identical financial instruments that we have the ability to access.

• Level 2: Valuations are based on quoted prices for similar financial instruments, other than quoted prices included in Level 1, in markets that are not active or on inputs that are observable either directly or indirectly for the full term of the financial instrument.

• Level 3: Valuations are based on pricing or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument.

We review our fair value hierarchy categorizations on a quarterly basis at which time the classification of certain financial instruments may change if the input observations have changed. Transfers between levels, if any, are recorded as of the beginning of the reporting period.

To determine the fair value of the majority of our investments, we utilize prices obtained from independent, nationally recognized pricing services. We obtain one price for each security. When the pricing services cannot provide a determination of fair value for a specific security, we obtain non-binding price quotes from broker-dealers with whom we have had several years experience and who have demonstrated knowledge of the subject security. We request and utilize one broker quote per security.

In order to determine the proper classification in the fair value hierarchy for each security where the price is obtained from an independent pricing service, we obtain and evaluate the vendors' pricing procedures and inputs used to price the security, which include unadjusted quoted market prices for identical securities, such as a New York Stock Exchange closing price, and quoted prices for identical securities in markets that are not active. For fixed maturity securities, an evaluation of interest rates and yield curves observable at commonly quoted intervals, volatility, prepayment speeds, credit risks and default rates may also be performed. We have determined that these processes and inputs result in fair values and classifications consistent with the applicable accounting guidance on fair value measurements.

When possible, we use quoted market prices to determine the fair value of fixed maturities, equity securities, trading securities and short-term investments. When quoted market prices do not exist, we base estimates of fair value on market information obtained from independent pricing services and brokers or on valuation techniques that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument. Our valuation techniques are discussed in more detail throughout this section.

The fair value of our mortgage loans is determined by modeling performed by us based on the stated principal and coupon payments provided for in the loan agreements. These cash flows are then discounted using an appropriate risk-adjusted discount rate to determine the security's fair value, which is a Level 3 fair value measurement.

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The fair value of our policy loans is equivalent to carrying value, which is a reasonable estimate of fair value and is classified as Level 2. We do not make policy loans for amounts in excess of the cash surrender value of the related policy. In all instances, the policy loans are fully collateralized by the related liability for future policy benefits for traditional insurance policies or by the policyholders' account balance for non-traditional policies.

Our other long-term investments consist primarily of our interests in limited liability partnerships that are recorded on the equity method of accounting. The fair value of the partnerships is obtained from the fund managers, which is based on the fair value of the underlying investments held in the partnerships. In management's opinion, these values represent a reasonable estimate of fair value. We have not adjusted the net asset value provided by the fund managers.

For cash and cash equivalents and accrued investment income, carrying value is a reasonable estimate of fair value due to the short-term nature of these financial instruments.

The Company formed a rabbi trust in 2014 to fund obligations under the United Fire & Casualty Company Supplemental Executive Retirement and Deferral Plan (the "Executive Retirement Plan"). Within the rabbi trust, corporate-owned life insurance ("COLI") policies are utilized as an investment vehicle and source of funding for the Company's Executive Retirement Plan. The COLI policies invest in mutual funds, which are priced daily by independent sources. As of March 31, 2018, the cash surrender value of the COLI policies was $4,404, which is equal to the fair value measured using Level 2 inputs, based on the underlying assets of the COLI policies, and is included in other assets in the Consolidated Balance Sheets.

Policy reserves are developed and recorded for deferred annuities, which is an interest-sensitive product, and income annuities. The fair value of the reserve liability for these annuity products is based upon an estimate of the discounted pretax cash flows that are forecast for the underlying business, which is a Level 3 fair value measurement. We base the discount rate on the current U.S. Treasury spot yield curve, which is then risk-adjusted for nonperformance risk and, for interest-sensitive business and market risk factors. The risk-adjusted discount rate is developed using interest rates that are available in the market and representative of the risks applicable to the underlying business.

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A summary of the carrying value and estimated fair value of our financial instruments from continuing operations at March 31, 2018 and December 31, 2017 is as follows:

	March 31, 2018				December 31, 2017
	Fair Value		Carrying Value		Fair Value		Carrying Value
Assets
Investments
Fixed maturities:
Held-to-maturity securities	$	150	$	150	$	150	$	150
Available-for-sale securities	1,563,996		1,563,996		1,535,070		1,535,070
Trading securities	15,379		15,379		16,842		16,842
Equity securities	280,362		280,362		287,344		287,344
Other long-term investments	44,998		44,998		49,352		49,352
Short-term investments	175		175		175		175
Cash and cash equivalents	316,852		316,852		95,562		95,562
Corporate-owned life insurance	4,404		4,404		4,029		4,029

A summary of the carrying value and estimated fair value of our financial instruments from discontinued operations at March 31, 2018 and December 31, 2017 is as follows:

	March 31, 2018				December 31, 2017
	Fair Value		Carrying Value		Fair Value		Carrying Value
Assets
Investments
Fixed maturities:
Held-to-maturity securities	$	—	$	—	$	34	$	34
Available-for-sale securities	—		—		1,430,025		1,430,025
Equity securities:
Available-for-sale securities	—		—		23,653		23,653
Mortgage loans	—		—		3,594		3,435
Policy loans	—		—		5,815		5,815
Other long-term investments	—		—		16,437		16,437
Cash and cash equivalents	—		—		15,851		15,851
Liabilities
Policy reserves
Annuity (accumulations) (1)	$	—	$	—	$	591,702	$	611,866
Annuity (benefit payments)	—		—		147,038		93,560

Note: The sale of our life insurance business was completed on March 30, 2018.

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The following tables present the categorization for our financial instruments measured at fair value on a recurring basis. The table includes financial instruments from both continuing and discontinued operations at March 31, 2018 and December 31, 2017:

March 31, 2018			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	15,726	$	—	$	15,726	$	—
U.S. government agency	134,429		—		134,429		—
States, municipalities and political subdivisions
General obligations
Midwest	105,335		—		105,335		—
Northeast	46,404		—		46,404		—
South	133,719		—		133,719		—
West	112,331		—		112,331		—
Special revenue
Midwest	144,130		—		144,130		—
Northeast	63,058		—		63,058		—
South	248,060		—		248,060		—
West	148,465		—		148,465		—
Foreign bonds	10,982		—		10,982		—
Public utilities	47,641		—		47,641		—
Corporate bonds
Energy	22,445		—		22,445		—
Industrials	32,987		—		32,987		—
Consumer goods and services	30,970		—		30,970		—
Health care	12,226		—		12,226		—
Technology, media and telecommunications	15,256		—		15,256		—
Financial services	54,512		—		54,412		100
Mortgage-backed securities	8,682		—		8,682		—
Collateralized mortgage obligations
Government national mortgage association	72,194		—		72,194		—
Federal home loan mortgage corporation	54,829		—		54,829		—
Federal national mortgage association	46,146		—		46,146		—
Asset-backed securities	3,469		—		2,837		632
Total Available-for-Sale Fixed Maturities	$	1,563,996	$	—	$	1,563,264	$	732
TRADING
Fixed maturities:
Bonds
Corporate bonds
Industrials	$	1,968	$	—	$	1,968	$	—
Consumer goods and services	1,846		—		1,846		—
Health care	3,739		—		3,739		—

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Technology, media and telecommunications	2,212		—		2,212		—
Financial services	2,133		—		2,133		—
Redeemable preferred stocks	3,481		3,481		—		—
Total Trading Securities	$	15,379	$	3,481	$	11,898	$	—
EQUITY SECURITIES
Common stocks
Public utilities	$	15,095	$	15,095	$	—	$	—
Energy	12,782		12,782		—		—
Industrials	58,724		58,724		—		—
Consumer goods and services	24,414		24,414		—		—
Health care	39,025		39,025		—		—
Technology, media and telecommunications	14,410		14,410		—		—
Financial services	111,761		111,761		—		—
Nonredeemable preferred stocks	4,151		3,331		—		820
Total Equity Securities	$	280,362	$	279,542	$	—	$	820
Short-Term Investments	$	175	$	175	$	—	$	—
Money Market Accounts	$	285,804	$	285,804	$	—	$	—
Corporate-Owned Life Insurance	$	4,404	$	—	$	4,404	$	—
Total Assets Measured at Fair Value	$	2,150,120	$	569,002	$	1,579,566	$	1,552

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December 31, 2017			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	16,891	$	—	$	16,891	$	—
U.S. government agency	122,168		—		122,168		—
States, municipalities and political subdivisions
General obligations
Midwest	109,696		—		109,696		—
Northeast	48,641		—		48,641		—
South	141,519		—		141,519		—
West	113,011		—		113,011		—
Special revenue
Midwest	158,744		—		158,744		—
Northeast	79,760		—		79,760		—
South	263,512		—		263,512		—
West	158,307		—		158,307		—
Foreign bonds	52,753		—		52,753		—
Public utilities	209,144		—		209,144		—
Corporate bonds
Energy	95,053		—		95,053		—
Industrials	221,707		—		221,707		—
Consumer goods and services	186,257		—		185,589		668
Health care	75,408		—		75,408		—
Technology, media and telecommunications	148,979		—		148,979		—
Financial services	283,151		—		275,474		7,677
Mortgage-backed securities	13,691		—		13,691		—
Collateralized mortgage obligations
Government national mortgage association	157,483		—		157,483		—
Federal home loan mortgage corporation	199,152		—		199,152		—
Federal national mortgage association	105,432		—		105,432		—
Asset-backed securities	4,636		—		3,989		647
Total Available-for-Sale Fixed Maturities	$	2,965,095	$	—	$	2,956,103	$	8,992
Equity securities:
Common stocks
Public utilities	$	22,439	$	22,439	$	—	$	—
Energy	14,565		14,565		—		—
Industrials	66,519		66,517		2		—
Consumer goods and services	25,688		25,688		—		—
Health care	40,103		40,103		—		—
Technology, media and telecommunications	17,508		17,508		—		—
Financial services	116,447		116,447		—		—

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Nonredeemable preferred stocks	1,297		415		—		882
Total Available-for-Sale Equity Securities	$	304,566	$	303,682	$	2	$	882
Total Available-for-Sale Securities	$	3,269,661	$	303,682	$	2,956,105	$	9,874
TRADING
Fixed maturities:
Bonds
Corporate bonds
Industrials	$	2,220	$	—	$	2,220	$	—
Consumer goods and services	1,535		—		1,535		—
Health care	3,741		—		3,741		—
Technology, media and telecommunications	1,221		—		1,221		—
Financial services	5,566		—		5,566		—
Redeemable preferred stocks	2,559		2,559		—		—
Equity securities:
Public utilities	874		874		—		—
Energy	190		190		—		—
Industrials	989		989		—		—
Consumer goods and services	1,314		1,314		—		—
Health care	325		325		—		—
Financial services	198		198		—		—
Nonredeemable preferred stocks	2,541		2,541		—		—
Total Trading Securities	$	23,273	$	8,990	$	14,283	$	—
Short-Term Investments	$	175	$	175	$	—	$	—
Money Market Accounts	$	16,824	$	16,824	$	—	$	—
Corporate-Owned Life Insurance	$	4,029	$	—	$	4,029	$	—
Total Assets Measured at Fair Value	$	3,313,962	$	329,671	$	2,974,417	$	9,874

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The following tables are a reconciliation for both continuing and discontinued operations of the presentation of the categorization for our financial instruments measured at fair value on a recurring basis at March 31, 2018 and December 31, 2017:

March 31, 2018			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	$	1,563,996	$	—	$	1,563,264	$	732
Discontinued operations	—		—		—		—
Total Available-for-Sale Fixed Maturities	$	1,563,996	$	—	$	1,563,264	$	732
TRADING
Fixed maturities:
Continuing operations	$	15,379	$	3,481	$	11,898	$	—
Discontinued operations	—		—		—		—
Total Trading Securities	$	15,379	$	3,481	$	11,898	$	—
EQUITY SECURITIES
Continuing operations	$	280,362	$	279,542	$	—	$	820
Discontinued operations	—		—		—		—
Total Equity Securities	$	280,362	$	279,542	$	—	$	820
SHORT-TERM INVESTMENTS
Continuing operations	$	175	$	175	$	—	$	—
Discontinued operations	—		—		—		$	—
Short-Term Investments	$	175	$	175	$	—	$	—
MONEY MARKET ACCOUNTS
Continuing operations	$	285,804	$	285,804	$	—	$	—
Discontinued operations	—		—		—		—
Money Market Accounts	$	285,804	$	285,804	$	—	$	—
CORPORATE-OWNED LIFE INSURANCE
Continuing operations	$	4,404	$	—	$	4,404	$	—
Discontinued operations	—		—		—		—
Corporate-Owned Life Insurance	$	4,404	$	—	$	4,404	$	—
Total Assets Measured at Fair Value	$	2,150,120	$	569,002	$	1,579,566	$	1,552

Note: The sale of our life insurance business was completed on March 30, 2018.

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December 31, 2017			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	$	1,535,070	$	—	$	1,534,323	$	747
Discontinued operations	1,430,025		—		1,421,780		8,245
Total Available-for-Sale Fixed Maturities	$	2,965,095	$	—	$	2,956,103	$	8,992
Equity securities:
Continuing operations	$	280,913	$	280,031	$	—	$	882
Discontinued operations	23,653		23,651		2		—
Total Equity Securities	$	304,566	$	303,682	$	2	$	882
Total Available-for-Sale Securities	$	3,269,661	$	303,682	$	2,956,105	$	9,874
TRADING
Fixed maturities:
Continuing operations	$	16,842	$	2,559	$	14,283	$	—
Discontinued operations	—		—		—		—
Equity securities:
Continuing operations	6,431		6,431		—		—
Discontinued operations	—		—		—		—
Total Trading Securities	$	23,273	$	8,990	$	14,283	$	—
SHORT-TERM INVESTMENTS
Continuing operations	$	175	$	175	$	—	$	—
Discontinued operations	—		—		—		—
Short-Term Investments	$	175	$	175	$	—	$	—
MONEY MARKET ACCOUNTS
Continuing operations	$	6,147	$	6,147	$	—	$	—
Discontinued operations	10,677		10,677		—		—
Money Market Accounts	$	16,824	$	16,824	$	—	$	—
CORPORATE-OWNED LIFE INSURANCE
Continuing operations	$	4,029	$	—	$	4,029	$	—
Discontinued operations	—		—		—		—
Corporate-Owned Life Insurance	$	4,029	$	—	$	4,029	$	—
Total Assets Measured at Fair Value	$	3,313,962	$	329,671	$	2,974,417	$	9,874

The fair value of securities that are categorized as Level 1 is based on quoted market prices that are readily and regularly available.

We use a market-based approach for valuing all of our Level 2 securities and submit them primarily to a third-party valuation service provider. Any of these securities not valued by this service provider are submitted to another third-party valuation service provider. Both service providers use a market approach to find pricing of similar financial instruments. The market inputs our service providers normally seek to value our securities include the following, listed in approximate order of priority: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. The method and inputs for these securities classified as Level 2 are the same regardless of industry category, credit quality, duration, geographical concentration or economic characteristics. For our mortgage-backed securities,

29

collateralized mortgage obligations and asset-backed securities, our service providers use additional market inputs to value these securities, including the following: new issue data, periodic payment information, monthly payment information, collateral performance and real estate analysis from third parties. Our service providers prioritize inputs based on market conditions, and not all inputs listed are available for use in the valuation process for each security on any given day.

At least annually, we review the methodologies and assumptions used by our valuation service providers and verify that they are reasonable and representative of the fair value of the underlying securities held in the investment portfolio. We validate the prices obtained from independent pricing services and brokers prior to their use for reporting purposes by evaluating their reasonableness on a monthly basis. Our validation process includes a review for unusual fluctuations. Unusual fluctuations outside of our expectations are independently corroborated with additional third-party sources that use similar valuation techniques as discussed above. In addition, we also randomly select securities and independently corroborate the valuations obtained from our third-party valuation service providers. In our opinion, the pricing obtained at March 31, 2018 and December 31, 2017 was reasonable.

For the three-month period ended March 31, 2018, the change in our available-for-sale securities categorized as Level 1 and Level 2 is the result of investment purchases that were made using funds held in our money market accounts, disposals and the change in unrealized gains on both fixed maturities and equity securities. During the three-month period ended March 31, 2018, there were no securities transferred between Level 1 and Level 2.

Securities categorized as Level 3 include holdings in certain private placement fixed maturity and equity securities for which an active market does not currently exist. The fair value of our Level 3 private placement securities is determined by management relying on pricing received from our independent pricing services and brokers consistent with the process to estimate fair value for Level 2 securities. However, securities are categorized as Level 3 if these quotes cannot be corroborated by other market observable data due to the unobservable nature of the brokers’ valuation processes. If pricing cannot be obtained from these sources, which occurs on a limited basis, management will perform a discounted cash flow analysis, using an appropriate risk-adjusted discount rate, on the underlying security to estimate fair value. During the three-month period ended March 31, 2018, there were no securities transferred in or out of Level 3.

The following table provides a summary of the changes in fair value of our Level 3 securities from continuing operations for the three-month period ended March 31, 2018:

	States, municipalities and political subdivisions		Corporate bonds		Asset-backed securities			Equities			Total
Balance at January 1, 2018	$	—	$	100	$	647		$	882		$	1,629
Net unrealized gains (losses)(1)	—				(15		)	(62		)	(77		)
Balance at March 31, 2018	$	—	$	100	$	632		$	820		$	1,552

(1) Net unrealized gains (losses) are recorded as a component of comprehensive income.

The fixed maturities reported as disposals relate to the receipt of principal on calls or sinking fund bonds, in accordance with the indentures.

NOTE 4. RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES

Property insurance indemnifies an insured with an interest in physical property for loss of, or damage to, such property or the loss of its income-producing abilities. Casualty insurance primarily covers liability for damage to property of, or injury to, a person or entity other than the insured. In most cases, casualty insurance also obligates the insurance company to provide a defense for the insured in litigation, arising out of events covered by the policy.

Liabilities for losses and loss settlement expenses reflect management's best estimates at a given point in time of what we expect to pay for claims that have been reported and those that have been incurred but not reported

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("IBNR"), based on known facts, circumstances, and historical trends. Because property and casualty insurance reserves are estimates of the unpaid portions of incurred losses that have been reported to us, as well as losses that have been incurred but not reported, the establishment of appropriate reserves, including reserves for catastrophes, is an inherently uncertain and complex process. The ultimate cost of losses and related loss settlement expenses may vary materially from recorded amounts. We regularly update our reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims. Changes in prior year reserve estimates, which may be material, are reported as a component of losses and loss settlement expenses incurred in the period such changes are determined.

The determination of reserves (particularly those relating to liability lines of insurance that have relatively longer lag in claim reporting) requires significant work to reasonably project expected future claim reporting and payment patterns. If, during the course of our regular monitoring of reserves, we determine that coverages previously written are incurring higher than expected losses, we will take action that may include, among other things, increasing the related reserves. Any adjustments we make to reserves are reflected in operating results in the year in which we make those adjustments. We engage an independent actuary, Regnier Consulting Group, Inc., to render an opinion as to the reasonableness of our statutory reserves annually. The actuarial opinion is filed in those states where we are licensed.

On a quarterly basis, UFG's internal actuary performs a detailed actuarial review of IBNR reserves. This review includes a comparison of results from the most recent analysis of reserves completed by both our internal and external actuaries. Senior management meets with our internal actuary to review, on a regular and quarterly basis, the adequacy of carried reserves based on results from this actuarial analysis. There are two fundamental types or sources of IBNR reserves. We record IBNR reserves for "normal" types of claims and also specific IBNR reserves related to unique circumstances or events. A major hurricane is an example of an event that might necessitate establishing specific IBNR reserves because an analysis of existing historical data would not provide an appropriate estimate.

We do not discount loss reserves based on the time value of money. 

The following table provides an analysis of changes in our property and casualty losses and loss settlement expense reserves at March 31, 2018 and December 31, 2017 (net of reinsurance amounts):

	March 31, 2018			December 31, 2017
Gross liability for losses and loss settlement expenses at beginning of year	$	1,224,183		$	1,123,896
Ceded losses and loss settlement expenses	(59,871		)	(59,794		)
Net liability for losses and loss settlement expenses at beginning of year	$	1,164,312		$	1,064,102
Losses and loss settlement expenses incurred for claims occurring during
Current year	$	182,783		$	779,966
Prior years	(38,055		)	(54,253		)
Total incurred	$	144,728		$	725,713
Losses and loss settlement expense payments for claims occurring during
Current year	$	44,734		$	311,972
Prior years	104,319			313,531
Total paid	$	149,053		$	625,503
Net liability for losses and loss settlement expenses at end of year	$	1,159,987		$	1,164,312
Ceded loss and loss settlement expenses	59,994			59,871
Gross liability for losses and loss settlement expenses at end of period	$	1,219,981		$	1,224,183

There are a multitude of factors that can impact loss reserve development. Those factors include, but are not limited to: historical data, the potential impact of various loss reserve development factors and trends including historical

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loss experience, legislative enactments, judicial decisions, legal developments in imposition of damages, experience with alternative dispute resolution, results of our medical bill review process, the potential impact of salvage and subrogation and changes and trends in general economic conditions, including the effects of inflation. All of these factors influence our estimates of required reserves and for long tail lines these factors can change over the course of the settlement of the claim. However, there is no precise method for evaluating the specific monetary impact of any individual factor on the development of reserves.

The significant drivers of the favorable reserve development in 2018 were our commercial liability, commercial automobile and commercial fire and allied lines of business. For each of these lines, reductions in loss IBNR were approximately equal to claim payments and reductions in reserves for reported claims were similar to the favorable loss development. Much of the favorable development continues to come from loss adjustment expense and is attributed to our continued litigation management efforts. About half of our total favorable development is attributable to loss adjustment expense. Assumed reinsurance exhibited adverse development which provided a partial offset to the favorable development. Assumed reinsurance was adversely affected by the combination of paid losses and increases in reserves for reported claims which were greater than reductions in reserves for claims incurred but not reported.

The significant drivers of the favorable reserve development in 2017 were our commercial liability and workers compensation lines of business. Much of the favorable commercial liability development came from loss adjustment expense and is attributed to our continued litigation management efforts combined with some favorable development coming from decreases in reserves, which were more than sufficient to pay claims as they closed. Workers compensation favorable development was due to the combined effects of decreases in claim reserves along with favorable changes affecting loss adjustment expense. Our personal lines also contributed favorable development. The lines that experienced adverse development during the year, which partially offset the favorable development mentioned earlier, were assumed reinsurance and commercial automobile. The adverse development for assumed reinsurance is due to increases in prior year reserves for unpaid claims while the adverse development for commercial automobile is due to paid losses which were greater than reductions in reported loss reserves and reserves for claims incurred but not reported. No other single line of business contributed a significant portion of the total development.

Generally, we base reserves for each claim on the estimated ultimate exposure for that claim. We believe that it is appropriate and reasonable to establish a best estimate for reserves within a range of reasonable estimates, especially when we are reserving for claims for bodily injury, disabilities and similar claims, for which settlements and verdicts can vary widely. Our reserving philosophy may result in favorable reserve development in future years that will decrease losses and loss settlement expenses for prior year claims in the year of adjustment. We realize that this philosophy, coupled with what we believe to be aggressive and successful claims management and loss settlement practices, has resulted in year-to-year redundancies in reserves. We believe our approach produces recorded reserves that are reasonably consistent as to their relative position within a range of reasonable reserves from year-to-year. However, conditions and trends that have affected the reserve development for a given year do change. Therefore, such development cannot be used to project future reserve redundancies or deficiencies.

We are not aware of any significant contingent liabilities related to environmental issues. Because of the type of property coverage we write, we have potential exposure to environmental pollution, mold and asbestos claims. Our underwriters are aware of these exposures and use riders or endorsements to limit exposure.

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NOTE 5. EMPLOYEE BENEFITS

Net Periodic Benefit Cost

The components of the net periodic benefit cost for our pension and postretirement benefit plans are as follows:

	Pension Plan						Postretirement Benefit Plan
Three Months Ended March 31,	2018			2017			2018			2017
Net periodic benefit cost
Service cost	$	2,175		$	1,714		$	749		$	505
Interest cost	1,875			1,765			502			482
Expected return on plan assets	(2,625		)	(2,412		)	—			—
Amortization of prior service credit	—			—			(1,352		)	(1,352		)
Amortization of net loss	1,071			890			589			461
Net periodic benefit cost	$	2,496		$	1,957		$	488		$	96

Employer Contributions

We previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2017 that we expected to contribute $6,400 to the pension plan in 2018. For the three-month period ended March 31, 2018, we contributed $1,600 to the pension plan.

NOTE 6. STOCK-BASED COMPENSATION

Non-qualified Employee Stock Award Plan

The United Fire Group, Inc. 2008 Stock Plan (the "2008 Stock Plan") authorized the issuance of restricted and unrestricted stock awards, restricted stock units, stock appreciation rights, incentive stock options, and non-qualified stock options for up to 1,900,000 shares of UFG common stock to employees. In May 2014, the Registrant's shareholders approved an additional 1,500,000 shares of UFG common stock issuable at any time and from time to time pursuant to the 2008 Stock Plan, among other amendments, and renamed such plan as the United Fire Group, Inc. Stock Plan (as amended, the "Stock Plan"). At March 31, 2018, there were 855,781 authorized shares remaining available for future issuance. The Stock Plan is administered by the Board of Directors, which determines those employees who will receive awards, when awards will be granted, and the terms and conditions of the awards. The Board of Directors may also take any action it deems necessary and appropriate for the administration of the Stock Plan. Pursuant to the Stock Plan, the Board of Directors may, at its sole discretion, grant awards to our employees who are in positions of substantial responsibility with UFG.

Options granted pursuant to the Stock Plan are granted to buy shares of UFG's common stock at the market value of the stock on the date of grant. All outstanding option awards have graded vesting over 3 years or 5 years from the grant date, unless the Board of Directors authorizes acceleration of vesting. Performance stock units cliff-vest after 3 years and the certification of performance results by UFG’s Compensation Committee. To the extent not exercised, vested option awards accumulate and are exercisable by the awardee, in whole or in part, in any subsequent year included in the option period, but not later than 10 years from the grant date. Restricted and unrestricted stock awards granted pursuant to the Stock Plan are granted at the market value of UFG's common stock on the date of the grant. Restricted stock units fully vest after 3 years or 5 years from the date of issuance, unless accelerated upon the approval of the Board of Directors, at which time UFG common stock will be issued to the awardee.

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The activity in the Stock Plan is displayed in the following table:

Authorized Shares Available for Future Award Grants	Three Months Ended March 31, 2018		From Inception to March 31, 2018
Beginning balance	996,828		1,900,000
Additional shares authorized	—		1,500,000
Number of awards granted	(153,209	)	(3,025,180	)
Number of awards forfeited or expired	12,162		480,961
Ending balance	855,781		855,781
Number of option awards exercised	89,057		1,174,952
Number of unrestricted stock awards granted	—		8,470
Number of restricted stock awards vested	19,658		57,826

Non-qualified Non-employee Director Stock Option and Restricted Stock Plan

The United Fire Group, Inc. 2005 Non-qualified Non-employee Director Stock Option and Restricted Stock Plan (the "Director Plan") authorizes the issuance of restricted stock awards and non-qualified stock options to purchase shares of UFG's common stock to non-employee directors. At March 31, 2018, we had 61,813 authorized shares available for future issuance.

The Board of Directors has the authority to determine which non-employee directors receive awards, when options and restricted stock shall be granted, the option price, the option expiration date, the date of grant, the vesting schedule of options or whether the options shall be immediately vested, the terms and conditions of options and restricted stock (other than those terms and conditions set forth in the plan) and the number of shares of common stock to be issued pursuant to an option agreement or restricted stock agreement (subject to limits set forth in the plan). The Board of Directors may also take any action it deems necessary and appropriate for the administration of the Director Plan.

The activity in the Director Plan is displayed in the following table:

Authorized Shares Available for Future Award Grants	Three Months Ended March 31, 2018	From Inception to March 31, 2018
Beginning balance	61,813	300,000
Number of awards granted	—	(262,190	)
Number of awards forfeited or expired	—	24,003
Ending balance	61,813	61,813
Number of option awards exercised	7,599	96,880
Number of restricted stock awards vested	—	54,272

Stock-Based Compensation Expense

For the three-month periods ended March 31, 2018 and 2017, we recognized stock-based compensation expense of $1,281 and $1,044, respectively. Stock-based compensation expense is recognized over the vesting period of the stock options.

As of March 31, 2018, we had $10,458 in stock-based compensation expense that has yet to be recognized through our results of operations. We expect this compensation to be recognized over the remainder of 2018 and subsequent years according to the table below, except with respect to awards that are accelerated by the Board of Directors, in which case we will recognize any remaining compensation expense in the period in which the awards are accelerated.

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2018	$	3,614
2019	3,856
2020	2,397
2021	552
2022	39
Total	$	10,458

NOTE 7. SEGMENT INFORMATION

On September 19, 2017, the Company announced that it had agreed to sell its subsidiary, United Life, to Kuvare. The sale closed on March 30, 2018. As a result, our life insurance business has been considered held for sale and reported as discontinued operations in the Consolidated Financial Statements and all comparable prior periods have been presented to conform to the current period presentation. For more information, refer to Note 11. Discontinued Operations.

Prior to the announcement to sell United Life, we had two reportable business segments in our operations: property and casualty insurance and life insurance. The property and casualty insurance segment has six domestic locations from which it conducts its business. The life insurance segment operated from our home office in Cedar Rapids, Iowa. Because all of our insurance is sold domestically, we have no revenues from foreign operations.

After the announcement of United Life, our continuing operations, the property and casualty insurance business, was reported as one reportable segment. The property and casualty insurance business profit or loss is consistent with consolidated reporting as disclosed on the Consolidated Statements of Income and Comprehensive Income. We analyze the property and casualty insurance business results based on profitability (i.e., loss ratios), expenses and return on equity. The Company's property and casualty insurance business was determined using a management approach to make decisions on operating matters, including allocating resources, assessing performance, determining which products to market and sell, determining distribution networks with insurance agents and monitoring the regulatory environment. The property and casualty insurance business products have similar economic characteristics and use a similar marketing and distribution strategy with our independent agents. The property and casualty insurance business geographic concentration did not change after the announcement of the sale of the life insurance business. We will continue to evaluate our continuing operations on the basis of both statutory accounting principles prescribed or permitted by our states of domicile and GAAP.

NOTE 8. EARNINGS PER COMMON SHARE

Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share gives effect to all dilutive common shares outstanding during the reporting period. The dilutive shares we consider in our diluted earnings per share calculation relate to our outstanding stock options, restricted stock awards and restricted stock unit awards.

We determine the dilutive effect of our outstanding stock options using the "treasury stock" method. Under this method, we assume the exercise of all of the outstanding stock options whose exercise price is less than the weighted-average market value of our common stock during the reporting period. This method also assumes that the proceeds from the hypothetical stock option exercises are used to repurchase shares of our common stock at the weighted-average market value of the stock during the reporting period. The net of the assumed stock options exercised and assumed common shares repurchased represents the number of dilutive common shares, which we add to the denominator of the earnings per share calculation.

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The components of basic and diluted earnings per share were as follows for the three-month periods ended March 31, 2018 and 2017:

	Three Months Ended March 31,
(In Thousands, Except Share Data)	2018						2017
	Basic			Diluted			Basic		Diluted
Net income from continuing operations	$	20,364		$	20,364		$	18,584	$	18,584
Weighted-average common shares outstanding	24,915,772			24,915,772			25,443,101		25,443,101
Add dilutive effect of restricted stock unit awards	—			290,083			—		248,717
Add dilutive effect of stock options	—			252,235			—		162,363
Weighted-average common shares outstanding	24,915,772			25,458,090			25,443,101		25,854,181
Earnings per common share from continuing operations	$	0.82		$	0.80		$	0.73	$	0.72
Earnings per common share from discontinued operations	(0.08		)	(0.07		)	0.05		0.05
Gain on sale of discontinued operations, net of taxes	1.10			1.07			—		—
Earnings per common share	$	1.84		$	1.80		$	0.78	$	0.77
Awards excluded from diluted earnings per share calculation(1)	—			—			—		—

(1) Outstanding awards that are not "in-the-money" are excluded from the diluted earnings per share calculation because the effect of including them would have been anti-dilutive.

NOTE 9. CREDIT FACILITY

On February 2, 2016, the Company, as borrower, entered into a Credit Agreement (the "Credit Agreement") by and among the Company, with the lenders from time to time party thereto and KeyBank National Association ("Key Bank"), as administrative agent, swingline lender and letter of credit issuer. The Credit Agreement provides for a $50,000four-year unsecured revolving credit facility that includes a $20,000 letter of credit subfacility and a swingline subfacility in the amount up to $5,000. The Credit Agreement allows the Company to increase the aggregate amount of the commitments thereunder by up to $100,000, provided that no event of default has occurred and is continuing and certain other conditions are satisfied.

The Credit Agreement is available for the Company's general corporate purposes, including liquidity, acquisitions and working capital. All unpaid principal and accrued interest under the Credit Agreement is due and payable in full at maturity on February 2, 2020. Based on the type of loan, advances under the Credit Agreement would bear interest on either the London interbank offered rate ("LIBOR") or a base rate plus, in each case, a calculated margin amount.

The unused commitments under the Credit Agreement will be subject to a commitment fee that will be calculated at a per annum rate. The applicable margins for borrowings under the Credit Agreement and the commitment fee thereunder will be determined by reference to a pricing grid based on the Company’s issuer credit rating by A.M. Best Company, Inc.

The Credit Agreement contains customary representations, conditions to borrowing, covenants and events of default, including certain covenants that limit or restrict, subject to certain exceptions, the ability of the Company and its subsidiaries to sell or transfer assets, enter into a merger or consolidate with another company, create liens, impose restrictions on subsidiary dividends, enter into sale-leaseback transactions, make investments or acquisitions, enter into certain reinsurance agreements, pay dividends during any period of default, enter into transactions with affiliates, change the nature of its business, or incur indebtedness. The Credit Agreement also includes financial covenants that require the Company to (i) maintain a minimum consolidated net worth, (ii) maintain a minimum consolidated statutory surplus and (iii) not exceed a 0.35 to 1.0 debt to total capitalization ratio.

There was no outstanding balance on the Credit Agreement at March 31, 2018 and 2017, respectively. For the three-month periods ended March 31, 2018 and 2017, we did not incur any interest expense related to either credit facility. We were in compliance with all covenants of the Credit Agreement at March 31, 2018.

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NOTE 10. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table shows the changes in the components of our accumulated other comprehensive income (loss), net of tax, for the three-month period ended March 31, 2018:

				Liability for
	Net unrealized			underfunded
	appreciation			employee
	on investments			benefit costs(1)			Total
Balance as of January 1, 2018	$	214,865		$	(46,551	)	$	168,314
Cumulative effect of change in accounting principle	(191,244		)	—			(191,244		)
Change in accumulated other comprehensive income before reclassifications	(34,219		)	—			(34,219		)
Reclassification adjustments from accumulated other comprehensive income (loss)	(29		)	1,311			1,282
Balance as of March 31, 2018	$	(10,627	)	$	(45,240	)	$	(55,867	)

(1) The preparation of financial statements in conformity with GAAP requires us to make various estimates and assumptions that affect the reporting of net periodic benefit cost, plan assets and plan obligations for each plan at the date of the financial statements. Actual results could differ from these estimates. One significant estimate relates to the calculation of the benefit obligation for each plan. We annually establish the discount rate, which is an estimate of the interest rate at which these benefits could be effectively settled, that is used to determine the present value of the respective plan's benefit obligations as of December 31.

NOTE 11. DISCONTINUED OPERATIONS

On September 18, 2017, we signed a definitive agreement to sell our subsidiary, United Life, to Kuvare for $280,000 in cash, less a $21 adjustment as set forth in the definitive agreement, for a net amount of $279,979. The sale closed on March 30, 2018 and we reported an after-tax gain on the sale of discontinued operations of $27,307. Our life insurance business (previously reported as a separate segment) was considered held for sale and reported as discontinued operations and its financial position, results of operations and cash flows were reported separately for all periods presented, unless otherwise noted.

UFG has agreed to provide services to Kuvare through a transition services agreement ("TSA"). The TSA ensures a seamless transfer of the business between UFG and Kuvare. The TSA includes, among other considerations, accounting management, human resources, legal and information technology services, from the closing date for up to 24 months.

The assets and liabilities associated with discontinued operations prior to the closing of the sale have been presented separately in our Consolidated Balance Sheets. The major assets and liability categories were as follows as of the dates indicated:

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Discontinued Operations
Balance Sheets
(In Thousands, Except Share Data)	March 31, 2018		December 31, 2017
	(unaudited)
Assets
Investments
Fixed maturities
Held-to-maturity, at amortized cost (fair value $0 in 2018 and $34 in 2017)	$	—	$	34
Available-for-sale, at fair value (amortized cost $0 in 2018 and $1,412,291 in 2017)	—		1,430,025
Equity Securities at fair value (cost $0 in 2018 and $5,099 in 2017)	—		23,653
Mortgage loans	—		3,435
Policy loans	—		5,815
Other long-term investments	—		16,437
	—		1,479,399
Cash and cash equivalents	—		15,851
Deferred policy acquisition costs	—		71,151
Other assets	—		19,733
Total assets held for sale	$	—	$	1,586,134
Liabilities
Future policy benefits and losses	$	—	$	1,320,401
Deferred income taxes	—		18,716
Accrued expenses and other liabilities	—		8,018
Total liabilities held for sale	$	—	$	1,347,135

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Summary operating results of discontinued operations were as follows for the periods indicated:

Discontinued Operations
Statements of Income (Unaudited)
	Three Months Ended March 31,
(In Thousands, Except Share Data)	2018			2017
Revenues
Net premiums earned	$	13,003		$	17,428
Investment income, net of investment expenses	12,663			12,450
Net realized investment gains (losses)	(1,057		)	1,705
Other income	146			198
Total revenues	$	24,755		$	31,781
Benefits, Losses and Expenses
Losses and loss settlement expenses	$	10,823		$	11,071
Increase in liability for future policy benefits	5,023			8,579
Amortization of deferred policy acquisition costs	1,895			1,673
Other underwriting expenses	3,864			3,631
Interest on policyholders’ accounts	4,499			4,744
Total benefits, losses and expenses	$	26,104		$	29,698
Income (loss) from discontinued operations before income taxes	$	(1,349	)	$	2,083
Federal income tax expense	563			731
Net income (loss) from discontinued operations	$	(1,912	)	$	1,352
Earnings per common share from discontinued operations:
Basic	$	(0.08	)	$	0.05
Diluted	(0.07		)	0.05

The Company's Consolidated Statement of Cash Flows presents operating, investing and financing cash flows of the discontinued operations separately. The Company's cash management and financial management of both continued and discontinued operations is consolidated as a centralized corporate function in our Finance Department.

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Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors of United Fire Group, Inc.

Results of Review of Interim Financial Statements

We have reviewed the accompanying consolidated balance sheet of United Fire Group, Inc. (the "Company") as of March 31, 2018, and the related consolidated statements of income, comprehensive income, and cash flows for the three-month periods ended March 31, 2018 and 2017, the consolidated statement of stockholders' equity for the three-month period ended March 31, 2018, and the related notes (collectively referred to as the “consolidated interim financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial statements for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2017, and the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows for the year then ended, and the related notes and schedules (not presented herein); and in our report dated February 28, 2018, we expressed an unqualified audit opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2017 is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

These financial statements are the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the SEC and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Ernst & Young LLP  

Ernst & Young LLP 

Des Moines, Iowa

May 9, 2018

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ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with Part I, Item 1 "Financial Statements."

CRITICAL ACCOUNTING POLICIES

Critical accounting policies are defined as those that are representative of significant judgments and uncertainties and that potentially may result in materially different results under different assumptions and conditions. We base our discussion and analysis of our financial condition and results of operations on the amounts reported in our Consolidated Financial Statements, which we have prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). As we prepare these Consolidated Financial Statements, we must make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses for the reporting period. We evaluate our estimates on an ongoing basis. We base our estimates on historical experience and on other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from those estimates. Our critical accounting policies are more fully described in our Management's Discussion and Analysis of Financial Condition and Results of Operations presented in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2017. There have been no changes in our critical accounting policies from December 31, 2017.

INTRODUCTION

The purpose of this Management's Discussion and Analysis is to provide an understanding of our results of operations and consolidated financial position. Our Management's Discussion and Analysis should be read in conjunction with our consolidated financial statements and related notes, including those in Item II, Part 8 of our Annual Report on Form 10-K for the year ended December 31, 2017. Our Consolidated Financial Statements are prepared on the basis of GAAP. We also prepare financial statements for each of our insurance company subsidiaries based on statutory accounting principles and file them with insurance regulatory authorities in the states where they do business.

When we provide information on a statutory or other basis, we label it as such, otherwise all other data is presented in accordance with GAAP.

BUSINESS OVERVIEW

Founded in 1946 as United Fire & Casualty Company, United Fire Group, Inc. ("UFG," the "Registrant," the "Company," "we," "us," or "our") and its consolidated insurance subsidiaries provide insurance protection for individuals and businesses through several regional offices. Our property and casualty insurance company subsidiaries are licensed in 46states plus the District of Columbia and are represented by approximately 1,150 independent agencies.

Our primary sources of revenue are premiums and investment income. Major categories of expenses include losses and loss settlement expenses, future policy benefits, underwriting and other operating expenses and interest on policyholders' accounts.

Discontinued Operations

On September 18, 2017, the Company signed a definitive agreement to sell its subsidiary, United Life Insurance Company, to Kuvare US Holdings, Inc. ("Kuvare"). The sale closed on March 30, 2018. Our life insurance business has been considered held for sale and accounted for as discontinued operations in the Consolidated Balance Sheets, Consolidated Statements of Income and Comprehensive Income and Consolidated Statements of Cash Flows. All periods presented have been revised to show results from continuing and discontinued operations, unless otherwise noted. For more information, refer to Part I, Item 1, Note 11. "Discontinued Operations."

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Reportable Segments

Prior to the announcement of the sale of our life insurance business, we have historically reported our operations in two business segments, each with a wide range of products:

• property and casualty insurance, which includes commercial lines insurance, personal lines insurance, surety bonds and assumed reinsurance; and

• life insurance, which includes deferred and immediate annuities, universal life products and traditional life (primarily single premium whole life) insurance products.

We manage these business segments separately, as they generally do not share the same customer base, and each has different products, pricing, and expense structures.

Subsequent to the announcement of the sale of our life insurance business on September 19, 2017, we operate and report one business segment, which contains our continuing operations. Our life insurance business has been considered held for sale and is reported as discontinued operations for all periods presented in this Form 10-Q, unless otherwise noted. For more information, refer to Part I, Item 1, Note 7. "Segment Information."

Pooling Arrangement

All of our property and casualty insurance subsidiaries are members of an intercompany reinsurance pooling arrangement. The Company's pooling arrangement permits the participating companies to rely on the capacity of the entire pool's capital and surplus, rather than being limited to policy exposures of a size commensurate with each participant’s own surplus level.

Geographic Concentration

For the three-month period ended March 31, 2018, approximately 48.4 percent of our property and casualty premiums were written in Texas, Iowa, California, Missouri and Colorado.

Profit Factors

Our profitability is influenced by many factors, including price, competition, economic conditions, investment returns, interest rates, catastrophic events and other natural disasters, man-made disasters, state regulations, court decisions, and changes in the law. To manage these risks and uncertainties, we seek to achieve consistent profitability through strong agency relationships, exceptional customer service, fair and prompt claims handling, disciplined underwriting, superior loss control services, prudent management of our investments, appropriate matching of assets and liabilities, effective use of ceded reinsurance and effective and efficient use of technology.

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FINANCIAL HIGHLIGHTS

	Three Months Ended March 31,
(In Thousands)	2018			2017			%
Revenues
Net premiums earned	$	245,167		$	236,444		3.7	%
Investment income, net of investment expenses	13,492			12,585			7.2
Net realized investment gains (losses)
Change in the value of equity securities	(8,313		)	111			NM
All other net realized gains	449			2,138			(79.0	)
Net realized investment gains	(7,864		)	2,249			NM
Total revenues	$	250,795		$	251,278		(0.2	)%
Benefits, Losses and Expenses
Losses and loss settlement expenses	$	144,728		$	156,552		(7.6	)%
Amortization of deferred policy acquisition costs	49,639			50,461			(1.6	)
Other underwriting expenses	34,855			21,259			64.0
Total benefits, losses and expenses	$	229,222		$	228,272		0.4	%
Income from continuing operations before income taxes	$	21,573		$	23,006		(6.2	)%
Federal income tax expense	1,209			4,422			(72.7	)
Net income from continuing operations	$	20,364		$	18,584		9.6	%
Income (loss) from discontinued operations, net of tax	(1,912		)	1,352			(241.4	)%
Gain on sale discontinued operations, net of tax	27,307			—			NM
Net income	$	45,759		$	19,936		129.5	%
GAAP Ratios:
Net loss ratio (without catastrophes)	57.6		%	62.1		%	(7.2	)%
Catastrophes - effect on net loss ratio	1.4			4.1			(65.9	)%
Net loss ratio(1)	59.0		%	66.2		%	(10.9	)%
Expense ratio(2)	34.5			30.3			13.9	%
Combined ratio(3)	93.5		%	96.5		%	(3.1	)%

(1) The net loss ratio is calculated by dividing the sum of losses and loss settlement expenses by net premiums earned. We use the net loss ratio as a measure of the overall underwriting profitability of the insurance business we write and to assess the adequacy of our pricing. Our net loss ratio is meaningful in evaluating our financial results as reported in our unaudited Consolidated Financial Statements.

(2) The expense ratio is calculated by dividing nondeferred underwriting expenses and amortization of deferred policy acquisition costs by net premiums earned. The expense ratio measures a company's operational efficiency in producing, underwriting and administering its insurance business.

(3) The combined ratio is a commonly used financial measure of property and casualty underwriting performance. A combined ratio below 100.0 percent generally indicates a profitable book of business. The combined ratio is the sum of the net loss ratio and the underwriting expense ratio.

NM = Not meaningful

The following is a summary of our financial performance from continuing operations for the three-month period ended March 31, 2018:

RESULTS OF OPERATIONS

For the three-month period ended March 31, 2018, the net income from continuing operations was $20.4 million compared to net income from continuing operations of $18.6 million for the same period of 2017. This increase was driven by higher net premiums earned from organic growth and geographical expansion, a decrease in losses and loss settlement expenses from a decrease in catastrophe losses and an increase in prior year favorable reserve

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development primarily on our other liability, commercial automobile and commercial fire and allied lines of business. These were all partially offset by: realized investment losses, primarily on equity securities, due to the adoption of new accounting guidance on January 1, 2018 which requires changes in the value of equity securities to be recognized in net income rather than accumulated other comprehensive income within shareholders equity; an increase in expenses primarily from investments in upgrading our underwriting technology platforms; and the acceleration of the amortization of our deferred acquisition costs in our commercial and personal automobile lines of business due to lower than expected profitability in these lines.

Net premiums earned increased to $245.2 million compared to $236.4 million for the same period of 2017 from continued organic growth and geographical expansion.

Losses and loss settlement expenses decreased by $11.8 million during the three-month period ended March 31, 2018 compared to the same period of 2017, and the net loss ratio decreased by 7.2 percentage points during the three-month period ended March 31, 2018 compared to the same period of 2017. This decrease was driven by a decrease in catastrophe losses and an increase in prior year favorable reserve development primarily on our other liability, commercial automobile and commercial fire and allied lines of business. Pre-tax catastrophe losses for the three-month period ended March 31, 2018 were $3.4 million compared to $9.7 million in the same period of 2017.

Investment income increased slightly by $0.9 million during the three-month period ended March 31, 2018, compared to the same period of 2017. The increase in the three-month period ended March 31, 2018 was primarily driven by an increase in invested assets and the change in the valuation of our investments in limited liability partnerships and not due to a change in our investment philosophy. The valuation of these investments in limited liability partnerships varies from period to period due to current equity market conditions, specifically related to financial institutions.

The combined ratio decreased 3.0 percentage points to 93.5 percent, for the three-month period ended March 31, 2018, compared to 96.5 percent for the same period of 2017. The decrease in the combined ratio in the three-month period ended March 31, 2018, as compared to the same period of 2017, was primarily attributable to a decrease in the net loss ratio partially offset by an increase in underwriting expenses. The decrease in net loss ratio was primarily driven by a decrease in catastrophe losses and an increase in prior year favorable reserve development primarily on our other liability, commercial automobile and commercial fire and allied lines of business.

The net loss ratio, a component of the combined ratio, decreased by 7.2 percentage points to 59.0 percent in the three-month period ended March 31, 2018, as compared to the same period of 2017. The decrease in net loss ratio was primarily driven by a decrease in catastrophe losses and an increase in prior year favorable reserve development primarily on our other liability, commercial automobile and commercial fire and allied lines of business.

The expense ratio, a component of the combined ratio, was 34.5 percent for the three-month period ended March 31, 2018, an increase of 4.2 percentage points as compared with the same period of 2017. The increase in the three-month period ended March 31, 2018 was due to two items: first, continued investment in our multi-year project to upgrade our technology platforms to enhance core underwriting decisions and productivity, and second, acceleration of the amortizaion of deferred acquisition costs in our commercial and personal automobile lines of business due to lower than expected profitability in these lines.

On March 30, 2018 the sale of United Life closed, resulting in a gain on sale of discontinued operations after-tax of $27,307.

For a detailed discussion of our investment results, refer to the "Investment Portfolio" section below.

Reserve Development

For many liability claims, significant periods of time, ranging up to several years, and for certain construction defect claims, more than a decade, may elapse between the occurrence of the loss, the reporting of the loss to us and the settlement or other disposition of the claim. As a result, loss experience in the more recent accident years for the long-tail liability coverages has limited statistical credibility in our reserving process because a relatively

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small proportion of losses in these accident years are reported claims and an even smaller proportion are paid losses. In addition, long-tail liability claims are more susceptible to litigation and can be significantly affected by changing contract interpretations and the legal environment. Consequently, the estimation of loss reserves for long-tail coverages is more complex and subject to a higher degree of variability. Reserves for these long-tail coverages represent a significant portion of our overall carried reserves.

When establishing reserves and monitoring reserve adequacy, we analyze historical data and consider the potential impact of various loss development factors and trends including historical loss experience, legislative enactments, judicial decisions, legal developments in imposition of damages, experience with alternative dispute resolution, results of our medical bill review process, the potential impact of salvage and subrogation and changes and trends in general economic conditions, including the effects of inflation. All of these factors influence our estimates of required reserves and for long-tail lines these factors can change over the course of the settlement of the claim. However, there is no precise method for evaluating the specific dollar impact of any individual factor on the development of reserves.

Our reserving philosophy is to reserve claims to their ultimate expected loss amount as soon as practicable after information about a claim becomes available. This approach tends to produce, on average, prudently conservative case reserves, which we expect to result in some level of favorable development over the course of settlement.

2018 Development

The property and casualty insurance business experienced $38.1 million of favorable development in our net reserves for prior accident years for the three-month period ended March 31, 2018. Three lines combined to provide the majority of favorable development while one line developed adversely. The three largest contributors to favorable development were commercial liability with $14.9 million of favorable development, commercial automobile with $13.9 million of favorable development and commercial fire and allied with $7.8 million of favorable development. Additional favorable development also came from workers compensation with $4.0 million of favorable development. The favorable development is attributable to reductions in reserves for reported claims as well as reductions in required reserves for incurred but not reported claims along with reductions in reserves for loss adjustment expense. Reserve reductions were more than sufficient to offset claim payments and loss adjustment expense payments. Loss adjustment expense payments continue to benefit from successful management of litigation expenses. The only line which partially offset to the favorable development was assumed reinsurance with $4.6 million of adverse development. Adverse development for assumed reinsurance is attributable to the combination of paid loss and the emergence of additional reserves for reported claims which were greater than reductions in prior year IBNR.

2017 Development

The property and casualty insurance business experienced $24.9 million of favorable development in our net reserves for prior accident years for the three-month period ended March 31, 2017. Two lines combined to provide the majority of favorable development while two lines developed adversely. The two largest contributors to favorable development were commercial liability, with $25.7 million of favorable development, and workers' compensation with $4.0 million of favorable development, in the three-month period ended March 31, 2017. The favorable development is also attributable to reductions in reserves for reported claims and reductions in required reserves for incurred but not reported claims along with reductions in reserves for loss adjustment expense. Reserve reductions were more than sufficient to offset claim payments and loss adjustment expense payments. Loss adjustment expense payments continue to benefit from successful management of litigation expenses. The two lines that provided a partial offset to the favorable development were assumed reinsurance with $6.1 million of adverse development and commercial fire with $2.5 million of adverse development. Adverse development for assumed reinsurance is primarily attributable to the emergence of additional reserves for reported claims. The adverse development for commercial fire was due to the emergence of 2016 accident year paid losses.

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Development amounts can vary significantly from quarter-to-quarter and year-to-year depending on a number of factors, including the number of claims settled and the settlement terms, and are subject to reallocation between accident years and lines of business. At March 31, 2018, our total reserves were within our actuarial estimates.

The following table displays our net premiums earned, net losses and loss settlement expenses and net loss ratio from continuing operations by line of business:

Three Months Ended March 31,	2018								2017
				Net Losses							Net Losses
				and Loss							and Loss
	Net			Settlement			Net		Net		Settlement			Net
(In Thousands, Except Ratios)	Premiums			Expenses			Loss		Premiums		Expenses			Loss
Unaudited	Earned			Incurred			Ratio		Earned		Incurred			Ratio
Commercial lines
Other liability	$	75,593		$	25,303		33.5	%	$	74,080	$	17,789		24.0	%
Fire and allied lines	57,399			34,229			59.6		55,519		44,123			79.5
Automobile	66,694			53,947			80.9		57,721		58,976			102.2
Workers' compensation	23,341			12,060			51.7		24,483		16,396			67.0
Fidelity and surety	5,473			658			12.0		5,897		208			3.5
Miscellaneous	425			184			43.3		378		57			15.1
Total commercial lines	$	228,925		$	126,381		55.2	%	$	218,078	$	137,549		63.1	%
Personal lines
Fire and allied lines	$	10,438		$	7,401		70.9	%	$	10,788	$	6,374		59.1	%
Automobile	7,009			5,757			82.1		6,479		6,230			96.2
Miscellaneous	295			(105		)	(35.6	)	279		(70		)	(25.1	)
Total personal lines	$	17,742		$	13,053		73.6	%	$	17,546	$	12,534		71.4	%
Reinsurance assumed	$	(1,500	)	$	5,294		NM		$	820	$	6,469		NM
Total	$	245,167		$	144,728		59.0	%	$	236,444	$	156,552		66.2	%

NM = Not meaningful

Below are explanations regarding significant changes in the net loss ratios by line of business:

• Other liability - The net loss ratio deteriorated 9.5 percentage points in the three-month period ended March 31, 2018, compared to the same period of 2017. This deterioration is attributable to a reduction in incurred but not reported ("IBNR") loss reserves that occurred during the three month period ended March 31, 2017 which provided a benefit in 2017 compared to no IBNR reserve reduction during the first quarter of 2018. This was offset by an increase in prior year favorable reserve development. Paid loss and paid loss adjustment expense were comparable for first quarter 2018 compared to same period of 2017 and the change in reserves for reported claims was more favorable in first quarter 2018 compared to the same period of 2017.

• Commercial fire and allied lines - The net loss ratio improved 19.9 percentage points in the three-month period ended March 31, 2018, compared to the same period of 2017. This improvement is primarily attributable to favorable prior year reserve development and a decrease in catastrophe losses in the first quarter of 2018 compared to the same period in 2017.

• Commercial automobile - The net loss ratio improved 21.3 percentage points in the three-month period ended March 31, 2018, compared to the same period of 2017. This improvement is primarily attributable to a decrease in severity and frequency of losses and favorable prior year reserve development.

• Workers' compensation - The net loss ratio improved 15.3 percentage points in the three-month period ended March 31, 2018, compared to the same period of 2017. The improvement was primarily due to a

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decrease in frequency and severity of losses and reported claims in 2018 as compared to 2017 along with prior year favorable reserve development.

• Personal fire and allied lines - The net loss ratio deteriorated 11.8 percentage points in the three-month period ended March 31, 2018, compared to the same period of 2017. The deterioration is attributable to an increase in frequency of losses and claims from first quarter non-catastrophic weather events during 2018 as compared to the same period of 2017

• Personal automobile - The net loss ratio improved 14.1 percentage points in the three-month period ended March 31, 2018, respectively, compared to the same period of 2017. This improvement is attributable to both a reduction in paid loss and a decrease in reported claims in 2018 as compared to 2017.

• Reinsurance assumed - The net loss ratio deteriorated in the three-month period ended March 31, 2018 compared to the same period of 2017. Net premiums earned were negative in the three-month period ended March 31, 2018 due to return of premiums from favorable prior year experience. Net losses decreased in the first quarter of 2018 as compared to the same period in 2017 primarily due to a decrease in frequency of losses and claims.

Financial Condition

Our stockholders' equity decreased to $970.7 million at March 31, 2018, from $973.4 million at December 31, 2017. The decrease was attributable to a decrease in net unrealized investment gains of $34.2 million, net of tax, during the first three months of 2018, shareholder dividends of $7.0 million and share repurchases of $5.4 million, partially offset by net income of $45.8 million, which includes a $27.3 million gain on the sale of discontinued operations.

At March 31, 2018, the book value per share of our common stock was $38.96. During the three-month period ended March 31, 2018, 120,372 shares of common stock were repurchased under our share repurchase program at a total cost of $5.4 million and an average share price of $44.90. Under our share repurchase program, which is scheduled to expire on August 31, 2018, we were authorized to repurchase an additional 2,116,200 shares of our common stock as of March 31, 2018.

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Discontinued Operations Results

	Three Months Ended March 31,
(In Thousands)	2018			2017
Revenues
Net premiums earned	$	13,003		$	17,428
Investment income, net of investment expenses	12,663			12,450
Net realized investment gains (losses)	(1,057		)	1,705
Other income	146			198
Total revenues	$	24,755		$	31,781
Benefits, Losses and Expenses
Losses and loss settlement expenses	$	10,823		$	11,071
Increase in liability for future policy benefits	5,023			8,579
Amortization of deferred policy acquisition costs	1,895			1,673
Other underwriting expenses	3,864			3,631
Interest on policyholders' accounts	4,499			4,744
Total benefits, losses and expenses	$	26,104		$	29,698
Income (loss) from discontinued operations, before income taxes	$	(1,349	)	$	2,083

Our discontinued operations had a loss before income taxes of $1.3 million for the three-month period ended March 31, 2018, compared to income before income taxes of $2.1 million for the same period of 2017. The decrease in net income during the first quarter of 2018 was primarily due to a decrease in net premiums earned and realized investment losses compared to realized investment gains in the first quarter of 2017. The realized investment losses are primarily due to the change in the value of equity securities, which are now required to be recognized in the income statement due to the change in accounting principles adopted on January 1, 2018 as previously discussed.

Investment Portfolio

Our invested assets from continuing operations totaled $1.9 billion at March 31, 2018, compared to $1.9 billion at December 31, 2017, an increase of $16.1 million. At March 31, 2018, fixed maturity securities and equity securities made up 82.9 percent and 14.7 percent of the value of our investment portfolio, respectively. Because the primary purpose of our investment portfolio is to fund future claims payments, we use a conservative investment philosophy, investing in a diversified portfolio of high-quality, intermediate-term taxable corporate bonds, taxable U.S. government bonds and tax-exempt U.S. municipal bonds. Our overall investment strategy is to keep our cash on hand low in the current interest rate environment. If additional cash is needed, we can borrow funds available under our revolving credit facility.

Composition

We develop our investment strategies based on a number of factors, including estimated duration of reserve liabilities, short- and long-term liquidity needs, projected tax status, general economic conditions, expected rates of inflation, regulatory requirements, interest rates and credit quality of assets. We administer our investment portfolio based on investment guidelines approved by management and the investment committee of our Board of Directors that comply with applicable statutory regulations.

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The composition of our investment portfolio at March 31, 2018 is presented at carrying value in the following table:

	Total
			Percent
(In Thousands, Except Ratios)			of Total
Fixed maturities (1)
Held-to-maturity	$	150	—	%
Available-for-sale	1,563,996		82.1
Trading securities	15,379		0.8
Equity securities	280,362		14.7
Other long-term investments	44,998		2.4
Short-term investments	175		—
Total	$	1,905,060	100.0	%

(1) Available-for-sale securities and trading fixed maturities are carried at fair value. Held-to-maturity fixed maturities are carried at amortized cost.

At both March 31, 2018 and December 31, 2017, we classified $1.6 billion or 99.0 percent and $1.5 billion or 98.9 percent, respectively, of our fixed maturities portfolio as available-for-sale. We classify our remaining fixed maturities as held-to-maturity or trading. We record held-to-maturity securities at amortized cost. We record available-for-sale fixed maturity securities at fair value, with any changes in fair value recognized in accumulated other comprehensive income. We record trading securities, primarily convertible redeemable preferred debt securities, at fair value, with any changes in fair value recognized in earnings.

As of March 31, 2018 and December 31, 2017, we did not have direct exposure to investments in subprime mortgages or other credit enhancement vehicles.

Credit Quality

The table below shows the composition of fixed maturity securities held in our available-for-sale, held-to-maturity and trading security portfolios, by credit rating for both continuing and discontinued operations at March 31, 2018 and December 31, 2017. Information contained in the table is generally based upon the issued credit ratings provided by Moody's, unless the rating is unavailable, in which case we obtain credit ratings from Standard & Poor's.

(In Thousands, Except Ratios)	March 31, 2018				December 31, 2017
Rating	Carrying Value		% of Total		Carrying Value		% of Total
AAA	$	590,813	37.4	%	$	885,000	29.7	%
AA	738,716		46.8		839,210		28.0
A	137,332		8.7		616,787		20.7
Baa/BBB	101,565		6.4		585,968		19.6
Other/Not Rated	11,099		0.7		55,156		1.9
	$	1,579,525	100.0	%	$	2,982,121	100.0	%

Duration

Our investment portfolio is invested primarily in fixed maturity securities whose fair value is susceptible to market risk, specifically interest rate changes. Duration is a measurement used to quantify our inherent interest rate risk and analyze our ability to match our invested assets to our reserve liabilities. If our invested assets and reserve liabilities have similar durations, then any change in interest rates will have an equal effect on these accounts. The primary purpose for matching invested assets and reserve liabilities is liquidity. With appropriate matching, our investments will mature when cash is needed, preventing the need to liquidate other assets prematurely. Mismatches in the duration of assets and liabilities can cause significant fluctuations in our results of operations.

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Investment Results

We invest the premiums received from our policyholders and annuitants in order to generate investment income, which is an important component of our revenues and profitability. The amount of investment income that we are able to generate is affected by many factors, some of which are beyond our control. Some of these factors are volatility in the financial markets, economic growth, inflation, interest rates, world political conditions, terrorist attacks or threats of terrorism, adverse events affecting other companies in our industry or the industries in which we invest and other unpredictable national or world events. Our net investment income from continuing operations increased by 7.2 percent in the three-month period ended March 31, 2018, compared with the same period of 2017. The increase in the three-month period ended March 31, 2018 was primarily due to an increase in invested assets and changes in value of our investments in limited liability partnerships as compared to the same period in 2017. We are maintaining our investment philosophy of purchasing fixed income investments rated investment grade or better.

We hold certain investments in limited liability partnerships that are recorded on the equity method of accounting, with changes in value of these investments recorded in investment income. In the three-month period ended March 31, 2018, the change in value of our investments in limited liability partnerships resulted in investment income of $1.4 million as compared to an increase of $1.1 million in investment income in the same period of 2017. This resulted in an increase of $0.3 million in investment income in the three-month period ended March 31, 2018.

Our net realized investment losses from continuing operations was $7.9 million during the three-month period ended March 31, 2018, as compared with net realized investment gains of $2.2 million in the same period of 2017. $9.2 million of the net loss between such quarterly periods is the result the change in the value of equity securities which are now required to be recognized in net income rather the accumulated other comprehensive income due to the change in accounting principles adopted on January 1, 2018.

We regularly monitor the difference between our cost basis and the estimated fair value of our investments. Our accounting policy for impairment recognition requires other-than-temporary impairment charges to be recorded when we determine that it is more likely than not that we will be unable to collect all amounts due according to the contractual terms of the fixed maturity security or that the anticipated recovery in fair value of the equity security will not occur in a reasonable amount of time. Impairment charges on investments are recorded based on the fair value of the investments at the measurement date. Factors considered in evaluating whether a decline in value is other-than-temporary include: the length of time and the extent to which fair value has been less than cost; the financial condition and near-term prospects of the issuer; our intention to hold the investment; and the likelihood that we will be required to sell the investment.

Changes in unrealized gains and losses on available-for-sale securities do not affect net income and earnings per share but do impact comprehensive income, stockholders' equity and book value per share. We believe that any unrealized losses on our available-for-sale securities at March 31, 2018 are temporary based upon our current analysis of the issuers of the securities that we hold and current market conditions. It is possible that we could recognize impairment charges in future periods on securities that we own at March 31, 2018 if future events and information cause us to determine that a decline in value is other-than-temporary. However, we endeavor to invest in high quality assets to provide protection from future credit quality issues and corresponding other-than-temporary impairment write-downs. In the three-month periods ended March 31, 2018 and 2017, there were no other-than-temporary impairment write-downs.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity measures our ability to generate sufficient cash flows to meet our short- and long-term cash obligations. Our cash inflows are primarily a result of the receipt of premiums, annuity deposits, reinsurance recoveries, sales or maturities of investments, and investment income. Cash provided from these sources is used to fund the payment of losses and loss settlement expenses, policyholder benefits under life insurance contracts, annuity withdrawals, the purchase of investments, operating expenses, dividends, pension plan contributions, and in recent years, common stock repurchases.

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We monitor our capital adequacy to support our business on a regular basis. The future capital requirements of our business will depend on many factors, including our ability to write new business successfully and to establish premium rates and reserves at levels sufficient to cover losses. Our ability to underwrite is largely dependent upon the quality of our claims paying and financial strength ratings as evaluated by independent rating agencies. In particular, we require (1) sufficient capital to maintain our financial strength ratings, as issued by various rating agencies, at a level considered necessary by management to enable our insurance company subsidiaries to compete and (2) sufficient capital to enable our insurance company subsidiaries to meet the capital adequacy tests performed by regulatory agencies in the United States.

Cash outflows may be variable because of the uncertainty regarding settlement dates for losses. In addition, the timing and amount of individual catastrophe losses are inherently unpredictable and could increase our liquidity requirements. The timing and amount of reinsurance recoveries may be affected by reinsurer solvency and reinsurance coverage disputes.

Historically, we have generated substantial cash inflows from operations. It is our policy to invest the cash generated from operations in securities with maturities that, in the aggregate, correlate to the anticipated timing of payments for losses and loss settlement expenses and future policyholder benefits of the underlying insurance policies, and annuity withdrawals. The majority of our assets are invested in available-for-sale fixed maturity securities.

The following table displays a consolidated summary of cash sources and uses in the first quarter of 2018 and 2017 from continuing and discontinued operations:

Cash Flow Summary	Three Months Ended March 31,
(In Thousands)	2018			2017
Cash provided by (used in)
Operating activities	$	23,574		$	39,207
Investing activities	226,154			(28,228		)
Financing activities	(21,618		)	(28,176		)
Net increase (decrease) in cash and cash equivalents	$	228,110		$	(17,197	)

In the Consolidated Statement of Cash Flows, cash flows from discontinued operations are shown in separate lines in each of the operating, investing and financing sections of the Cash Flow Statement. Our cash flows from continuing operations were sufficient to meet our current liquidity needs for the three-month periods ended March 31, 2018 and 2017 and we anticipate they will be sufficient to meet our future liquidity needs.

Operating Activities

Net cash flows provided by continuing operations totaled $23.6 million and $39.2 million for the three-month periods ended March 31, 2018 and 2017, respectively. Cash flows from discontinued operations provided by operating activities totaled $4.0 million and $6.4 million for the three-month periods ended March 31, 2018 and 2017, respectively.

Investing Activities

Cash in excess of operating requirements is generally invested in fixed maturity securities and equity securities. Fixed maturities provide regular interest payments and allow us to match the duration of our liabilities. Equity securities provide dividend income, potential dividend income growth and potential appreciation. For further discussion of our investments, including our philosophy and our strategy for our portfolio, see the "Investment Portfolio" section of this item.

In addition to investment income, possible sales of investments and proceeds from calls or maturities of fixed maturity securities also can provide liquidity. During the next five years, $239.9 million, or 15.2 percent, of our fixed maturity portfolio will mature.

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We invest funds required for short-term cash needs primarily in money market accounts, which are classified as cash equivalents. At March 31, 2018, our cash and cash equivalents included $285.8 million related to these money market accounts, compared to $16.8 million at December 31, 2017.

Net cash flows provided by investing activities were $226.2 million and $28.2 million for the three-month periods ended March 31, 2018 and 2017, respectively. For the three-month periods ended March 31, 2018 and 2017, we had cash inflows from scheduled and unscheduled investment maturities, redemptions, prepayments, and sales of investments, from continuing operations of $33.4 million and $42.8 million, respectively. We also had net cash inflows from the sale of discontinued operations of $276.1 million for the three-month period ended March 31, 2018.

Our cash outflows for investment purchases from continuing operationswere $93.8 million for the three-month period ended March 31, 2018, compared to $81.7 million for the same period of 2017.

Financing Activities

Net cash flows used in financing activities from continuing operations was $10.1 million for the three-month period ended March 31, 2018 which changed slightly compared to $10.9 million for the three-month period ended March 31, 2017.

Credit Facilities

On February 2, 2016, the Company, as borrower, entered into a Credit Agreement by and among the Company, with the lenders from time to time party thereto and KeyBank National Association, as administrative agent, swingline lender and letter of credit issuer. As of March 31, 2018 and 2017, there were no balances outstanding under this credit agreement. For further discussion of our credit agreement, refer to Part I, Item 1, Note 9. "Credit Facility" to the unaudited Consolidated Financial Statements.

Dividends

Dividends paid to shareholders totaled $7.0 million and $6.4 million in the three-month periods ended March 31, 2018 and 2017, respectively. Our practice has been to pay quarterly cash dividends, which we have paid every quarter since March 1968.

Payments of any future dividends and the amounts of such dividends, however, will depend upon factors such as net income, financial condition, capital requirements, and general business conditions. We will only pay dividends if declared by our Board of Directors out of legally available funds.

As a holding company with no independent operations of its own, we rely on dividends received from our insurance company subsidiaries in order to pay dividends to its common shareholders. Dividends payable by our insurance subsidiaries are governed by the laws in the states in which they are domiciled, and if applicable, commercially domiciled. In all cases, these state laws permit the payment of dividends only from earned surplus arising from business operations. For example, under Iowa law, the maximum dividend or distribution that may be paid within a 12-month period without prior approval of the Iowa Insurance Commissioner is generally restricted to the greater of 10 percent of statutory surplus as of the preceding December 31, or net income of the preceding calendar year on a statutory basis, not greater than earned statutory surplus. Other states in which our insurance company subsidiaries are domiciled may impose similar restrictions on dividends and distributions. Based on these restrictions, at March 31, 2018, UFG's sole direct insurance company subsidiary, United Fire & Casualty Company, was able to make a maximum of $35.7 million in dividend payments without prior regulatory approval. These restrictions will not have a material impact in meeting the cash obligations of UFG.

Stockholders' Equity

Stockholders' equity decreased 0.3 percent to $970.7 million at March 31, 2018, from $973.4 million at December 31, 2017. The decrease was primarily attributed to a decrease in net unrealized investment gains of $34.2 million, net of tax, during the first three months of 2018, shareholder dividends of $7.0 million and share

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repurchases of $5.4 million, partially offset by net income of $45.8 million, which includes $27.3 million of gain on the sale of discontinued operations. At March 31, 2018, the book value per share of our common stock was $38.96compared to $39.06 at December 31, 2017.

OFF BALANCE SHEET ARRANGEMENTS

Funding Commitments

Pursuant to an agreement with one of our limited liability partnership investments, we are contractually committed through December 31, 2023, to make capital contributions upon request of the partnership. Our remaining potential contractual obligation was $1.5 million at March 31, 2018.

MEASUREMENT OF RESULTS

Management evaluates our operations by monitoring key measures of growth and profitability. The following section provides further explanation of the key measures management uses to evaluate our results.

Catastrophe losses is a commonly used financial measure that uses the designations of the Insurance Services Office (ISO) and are reported with losses and loss settlement expense amounts net of reinsurance recoverables, unless specified otherwise. According to the ISO, a catastrophe loss is defined as a single unpredictable incident or series of closely related incidents that result in $25.0 million or more in U.S. industry-wide direct insured losses to property and that affect a significant number of insureds and insurers ("ISO catastrophe"). In addition to ISO catastrophes, we also include as catastrophes those events ("non-ISO catastrophes"), which may include U.S. or international losses that we believe are, or will be, material to our operations, either in amount or in number of claims made. Management, at times, may determine for comparison purposes that it is more meaningful to exclude extraordinary catastrophe losses and resulting litigation. The frequency and severity of catastrophic losses we experience in any year affect our results of operations and financial position. In analyzing the underwriting performance of our property and casualty insurance segment, we evaluate performance both including and excluding catastrophe losses. Portions of our catastrophe losses may be recoverable under our catastrophe reinsurance agreements. We include a discussion of the impact of catastrophes because we believe it is meaningful for investors to understand the variability in our periodic earnings.

	Three Months Ended March 31,
(In Thousands)	2018			2017
ISO catastrophes	$	3,438		$	9,738
Non-ISO catastrophes (1)	(77		)	(13		)
Total catastrophes	$	3,361		$	9,725

(1) This number includes international assumed losses.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We have exposure to market risk arising from potential losses in our investment portfolio due to adverse changes in interest rates and market prices. However, we have the ability to hold fixed maturity investments to maturity. Our investment guidelines define the overall framework for managing our market and other investment risks, including accountability and controls. In addition, each of our subsidiaries has specific investment policies that delineate the investment limits and strategies that are appropriate given each entity's liquidity, surplus, product, and regulatory requirements. We respond to market risk by managing the character of investment purchases.

It is our philosophy that we do not utilize financial hedges or derivative financial instruments to manage risks, nor do we enter into any swap, forward or option contracts, but attempt to mitigate our exposure through active portfolio management. In addition, we place the majority of our investments in high-quality, liquid securities and limit the amount of credit exposure to any one issuer. At March 31, 2018, we did not have direct exposure to investments in sub-prime mortgages or other credit-enhancement exposures.

While our primary market risk exposure is to changes in interest rates, we do have limited exposure to changes in equity prices and limited exposure to foreign currency exchange rates.

There have been no material changes in our market risk or market risk factors from what we reported in our Annual Report on Form 10-K for the year ended December 31, 2017.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures, as of the end of the period covered by this report, were designed and functioning effectively to provide reasonable assurance that the information required to be disclosed by us in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. We believe that a control system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the control system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.

Changes in Internal Control Over Financial Reporting

Our management, including our Chief Executive Officer and Chief Financial Officer, has evaluated our internal control over financial reporting to determine whether any changes occurred during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Based on this evaluation, no such change in our internal control over financial reporting occurred during the fiscal quarter to which this report relates.

54

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In the normal course of its business, the Company is a party to a variety of legal proceedings. While the final outcome of these legal proceedings cannot be predicted with certainty, management believes all of the proceedings pending as of March 31, 2018 to be ordinary and routine and does not expect these legal proceedings to have a material adverse effect on the Company's financial position or results of operations.

ITEM 1A. RISK FACTORS

Our business is subject to a number of risks, including those identified in Part I, Item 1A "Risk Factors" in our 2017 Annual Report on Form 10-K filed with the SEC on February 28, 2018, that could have a material effect on our business, results of operations, financial condition, and/or liquidity and that could cause our operating results to vary significantly from period to period. The risks described in the above mentioned report are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial could also have a material effect on our business, results of operations, financial condition and/or liquidity.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Under our share repurchase program, first announced in August 2007, we may purchase UFG common stock from time to time on the open market or through privately negotiated transactions. The amount and timing of any purchases will be at our discretion and will depend upon a number of factors, including the share price, general economic and market conditions, and corporate and regulatory requirements.

The following table provides information with respect to purchases of shares of common stock made by or on our behalf or by any "affiliated purchaser," as defined in Rule 10b-18(a)(3) under the Exchange Act, during the three-month period ended March 31, 2018:

				Total Number of Shares	Maximum Number of
	Total			Purchased as a Part of	Shares that may yet be
	Number of	Average Price		Publicly Announced	Purchased Under the
Period	Shares Purchased	Paid per Share		Plans or Programs	Plans or Programs(1)
1/1/2018 - 1/31/2018	—	$	—	—	2,236,572
2/1/2018 - 2/28/2018	115,372	44.89		115,372	2,121,200
3/1/2018 - 3/31/2018	5,000	44.98		5,000	2,116,200
Total	120,372	$	44.90	120,372	2,116,200

(1) Our share repurchase program was originally announced in August 2007. In August 2016, our Board of Directors authorized the repurchase of up to an additional 1,500,000 shares of common stock through the end of August 2018. This is in addition to the 1,528,886 shares of common stock remaining under its previous authorizations. As of March 31, 2018 we remained authorized to repurchase 2,116,200 shares of common stock.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

None.

ITEM 5. OTHER INFORMATION

None.

55

ITEM 6. EXHIBIT INDEX

Exhibit number	Exhibit description	Furnished herewith	Filed herewith
31.1	Certification of Randy A. Ramlo pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.		X
31.2	Certification of Dawn M. Jaffray pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.		X
32.1	Certification of Randy A. Ramlo pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	X
32.2	Certification of Dawn M. Jaffray pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	X
101.1	The following financial information from United Fire Group, Inc.'s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 formatted in XBRL: (i) Consolidated Balance Sheets at March 31, 2018 (unaudited) and December 31, 2017; (ii) Consolidated Statements of Income and Comprehensive Income (unaudited) for the three months ended March 31, 2018 and 2017; (iii) Consolidated Statement of Stockholders’ Equity (unaudited) for the three months ended March 31, 2018; (iv) Consolidated Statements of Cash Flows (unaudited) for the three months ended March 31, 2018 and 2017; and (v) Notes to Unaudited Consolidated Financial Statements, tagged as a block of text.		X

56

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

UNITED FIRE GROUP, INC.
(Registrant)
/s/ Randy A. Ramlo	/s/ Dawn M. Jaffray
Randy A. Ramlo	Dawn M. Jaffray
President, Chief Executive Officer,	Senior Vice President, Chief Financial Officer and
Director and Principal Executive Officer	Principal Accounting Officer
May 9, 2018	May 9, 2018
(Date)	(Date)

57

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Randy A. Ramlo, certify that:

1. I have reviewed this quarterly report on Form 10-Q of United Fire 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 Consolidated 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 U.S. 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 (the registrant's fourth fiscal quarter in the case of an annual report) 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.

Date:	May 9, 2018
		/s/ Randy A. Ramlo
		Randy A. Ramlo
		Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Dawn M. Jaffray, certify that:

1. I have reviewed this quarterly report on Form 10-Q of United Fire 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 Consolidated 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 U.S. 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 (the registrant's fourth fiscal quarter in the case of an annual report) 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.

Date:	May 9, 2018
		/s/ Dawn M. Jaffray
		Dawn M. Jaffray
		Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of United Fire Group, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Randy A. Ramlo, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or Section 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.

Date:	May 9, 2018
		/s/ Randy A. Ramlo
		Randy A. Ramlo
		Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to United Fire Group, Inc. and will be retained by United Fire Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of United Fire Group, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Dawn M. Jaffray, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or Section 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.

Date:	May 9, 2018
		/s/ Dawn M. Jaffray
		Dawn M. Jaffray
		Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to United Fire Group, Inc. and will be retained by United Fire Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 07, 2018
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Trading Symbol	UFCS
Entity Registrant Name	UNITED FIRE GROUP INC
Entity Central Index Key	0000101199
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		24,926,648

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fixed maturities
Held-to-maturity, at amortized cost (fair value $150 in 2018 and $150 in 2017)	$ 150	$ 150
Available-for-sale, at fair value (amortized cost $1,577,448 in 2018 and $1,516,610 in 2017)	1,563,996	1,535,070
Trading securities, at fair value (amortized cost $13,229 in 2018 and $14,582 in 2017)	15,379	16,842
Equity securities at fair value (cost $65,481 in 2018 and $63,275 in 2017)	280,362	287,344
Other long-term investments	44,998	49,352
Short-term investments	175	175
Total investments	1,905,060	1,888,933
Cash and cash equivalents	316,852	95,562
Accrued investment income	15,083	13,841
Premiums receivable (net of allowance for doubtful accounts of $1,082 in 2018 and $1,255 in 2017)	339,007	328,513
Deferred policy acquisition costs	89,836	88,102
Property and equipment (primarily land and buildings, at cost, less accumulated depreciation of $52,693 in 2018 and $51,988 in 2017)	71,929	68,992
Reinsurance receivables and recoverables	63,506	63,194
Prepaid reinsurance premiums	4,002	3,749
Income taxes receivable	0	6,031
Goodwill and intangible assets	23,783	23,971
Other assets	16,306	16,409
Assets held for sale	0	1,586,134
TOTAL ASSETS	2,845,364	4,183,431
Liabilities
Losses and loss settlement expenses	1,219,981	1,224,183
Unearned premiums	476,912	465,391
Accrued expenses and other liabilities	158,811	167,396
Income taxes payable	17,581	0
Deferred income taxes	1,386	5,953
Liabilities held for sale	0	1,347,135
TOTAL LIABILITIES	1,874,671	3,210,058
Stockholders’ Equity
Common stock, $0.001 par value; authorized 75,000,000 shares; 24,912,748 and 24,916,806 shares issued and outstanding in 2018 and 2017, respectively	25	25
Additional paid-in capital	194,504	196,334
Retained earnings	832,031	608,700
Accumulated other comprehensive income, net of tax	(55,867)	168,314
TOTAL STOCKHOLDERS’ EQUITY	970,693	973,373
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 2,845,364	$ 4,183,431

XML

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Fixed maturities, held-to-maturity securities, fair value	$ 150	$ 150
Fixed maturities, available-for-sale securities, amortized cost	1,577,448	1,516,610
Fixed maturities, trading securities, amortized cost	13,229	14,582
Equity securities, amortized cost	65,481	63,275
Allowance for doubtful accounts	1,082	1,255
Property and equipment accumulated depreciation	$ 52,693	$ 51,603
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	75,000,000	75,000,000
Common stock, shares issued (in shares)	24,912,748	24,916,806
Common stock, shares outstanding (in shares)	24,912,748	24,916,806

XML

Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues
Net premiums earned	$ 245,167	$ 236,444
Investment income, net of investment expenses	13,492	12,585
Net realized investment gains (losses) (includes reclassifications for net unrealized investment gains on available-for-sale securities of $37 in 2018 and $3,405 in 2017; previously included in accumulated other comprehensive income)	(7,864)	2,249
Total revenues	250,795	251,278
Benefits, Losses and Expenses
Losses and loss settlement expenses	144,728	156,552
Amortization of deferred policy acquisition costs	49,639	50,461
Other underwriting expenses (includes reclassifications for employee benefit costs of $1,660 in 2018 and $1,352 in 2017; previously included in accumulated other comprehensive income)	34,855	21,259
Total benefits, losses and expenses	229,222	228,272
Income from continuing operations before income taxes	21,573	23,006
Federal income tax expense (includes reclassifications of $341 in 2018 and ($718) in 2017; previously included in accumulated other comprehensive income)	1,209	4,422
Income from continuing operations	20,364	18,584
Income (loss) from discontinued operations, net of taxes	(1,912)	1,352
Gain on sale of discontinued operations, net of taxes	27,307	0
Net income	45,759	19,936
Other comprehensive income
Change in net unrealized appreciation on investments	(51,814)	14,966
Change in liability for underfunded employee benefit plans	0	0
Other comprehensive income, before tax and reclassification adjustments	(51,814)	14,966
Income tax effect	10,881	(5,238)
Other comprehensive income, after tax, before reclassification adjustments	(40,933)	9,728
Reclassification adjustment for net realized investment gains included in income	(37)	(3,405)
Reclassification adjustment for employee benefit costs included in expense	1,660	1,352
Total reclassification adjustments, before tax	1,623	(2,053)
Income tax effect	(341)	718
Total reclassification adjustments, after tax	1,282	(1,335)
Comprehensive income	$ 6,108	$ 28,329
Diluted weighted average common shares outstanding (in shares)	25,458,090	25,854,181
Earnings per common share from continuing operations:
Basic (in dollars per share)	$ 0.82	$ 0.73
Diluted (in dollars per share)	0.80	0.72
Earnings per common share:
Basic (in dollars per share)	1.84	0.78
Diluted (in dollars per share)	$ 1.80	$ 0.77

XML

Consolidated Statements of Income and Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Reclassifications for net unrealized gains on available-for-sale securities	$ 37	$ 3,405
Reclassification adjustment for employee benefit costs included in expense	1,660	1,352
Reclassifications adjustments - tax	$ 341	$ (718)

XML

Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands		Total	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive income (loss), net of tax
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of change in accounting principle		$ (191,244)			$ 191,244	$ (191,244)
Balance, beginning of year at Dec. 31, 2017		973,373	$ 25	$ 196,334	608,700	168,314
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares repurchased			0	(5,404)
Shares issued for stock-based awards			0	2,293
Compensation expense and related tax benefit for stock-based award grants				1,281
Net income		45,759			45,759
Dividends on common stock ($0.28 per share)					(6,958)
Change in net unrealized investment appreciation and depreciation of discontinued operations, sold					(6,714)	(34,248)	[1]
Change in liability for underfunded employee benefit plans	[2]					1,311
All other changes in stockholders’ equity accounts		(48,439)
Balance, end of period at Mar. 31, 2018		$ 970,693	$ 25	$ 194,504	$ 832,031	$ (55,867)

[1] The change in net unrealized appreciation is net of reclassification adjustments and income taxes.

[2] The change in liability for underfunded employee benefit plans is net of reclassification adjustments and income taxes.

XML

Consolidated Statement of Stockholders' Equity (Unaudited) (Parentheticals)	3 Months Ended
	Mar. 31, 2018 $ / shares shares
Statement of Stockholders' Equity [Abstract]
Shares repurchased (in shares)	120,372
Shares issued for stock-based awards (in shares)	116,314
Dividends on common stock, per share (in dollars per share) | $ / shares	$ 0.28

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash Flows From Operating Activities
Net income	$ 45,759	$ 19,936
Less net income (loss) from discontinued operations, net of taxes	(1,912)	1,352
Adjustments to reconcile net income to net cash provided by operating activities
Net accretion of bond premium	2,178	2,252
Depreciation and amortization	1,159	1,165
Stock-based compensation expense	1,281	1,044
Net realized investment (gains) losses	7,864	(2,249)
Net cash flows from trading investments	383	(610)
Deferred income tax benefit	(3,879)	(975)
Changes in:
Accrued investment income	(1,242)	(1,329)
Premiums receivable	(10,494)	(18,226)
Deferred policy acquisition costs	(1,734)	(2,623)
Reinsurance receivables	(312)	(582)
Prepaid reinsurance premiums	(253)	(59)
Income taxes receivable	6,031	4,751
Other assets	104	(341)
Losses and loss settlement expenses	(4,202)	16,823
Unearned premiums	11,521	23,231
Accrued expenses and other liabilities	(6,925)	(9,065)
Income taxes payable	17,581	0
Deferred income taxes	(14,039)	2,526
Other, net	1,708	(1,504)
Cash from operating activities - continuing operations	6,730	14,229
Cash from operating activities - discontinued operations	4,024	6,394
Cash from operating activities - gain on sale of discontinued operations	(34,851)	0
Total adjustments	(24,097)	20,623
Net cash provided by operating activities	23,574	39,207
Cash Flows From Investing Activities
Proceeds from sale of available-for-sale investments	0	1,096
Proceeds from call and maturity of available-for-sale investments	30,320	40,055
Proceeds from short-term and other investments	3,078	1,665
Proceeds from the sale of discontinued operations	276,055	0
Purchase of available-for-sale investments	(93,115)	(80,097)
Purchase of short-term and other investments	(676)	(1,590)
Net purchases and sales of property and equipment	(3,851)	(1,392)
Cash from investing activities - continuing operations	211,811	(40,263)
Cash from investing activities - discontinued operations	14,343	12,035
Net cash provided by (used in) investing activities	226,154	(28,228)
Cash Flows From Financing Activities
Payment of cash dividends	(6,960)	(6,367)
Repurchase of common stock	(5,404)	(5,749)
Issuance of common stock	2,293	1,244
Cash from financing activities - continuing operations	(10,071)	(10,872)
Cash from financing activities - discontinued operations	(11,547)	(17,304)
Net cash used in financing activities	(21,618)	(28,176)
Net Change in Cash and Cash Equivalents	228,110	(17,197)
Less: increase in cash and cash equivalents - discontinued operations	(6,820)	(1,125)
Net increase (decrease) in cash and cash equivalents - continuing operations	221,290	(18,322)
Cash and Cash Equivalents at Beginning of Period - Continuing Operations	95,562	89,194
Cash and Cash Equivalents at End of Period - Continuing Operations	$ 316,852	$ 70,872

XML

Nature of Operations and Basis of Presentation

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations and Basis of Presentation

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Nature of Business

United Fire Group, Inc. ("UFG," the "Registrant," the "Company," "we," "us," or "our") and its consolidated subsidiaries and affiliates are engaged in the business of writing property and casualty insurance through a network of independent agencies. Our insurance company subsidiaries are licensed as a property and casualty insurer in 46 states and the District of Columbia.

Discontinued Operations

We have historically reported our operations in two business segments: property and casualty insurance and life insurance. On September 18, 2017, the Company signed a definitive agreement to sell its subsidiary, United Life Insurance Company ("United Life"), to Kuvare US Holdings, Inc. ("Kuvare") and on March 30, 2018 the sale closed. As a result, our life insurance business, previously a separate segment, was considered held for sale and reported as discontinued operations in the Consolidated Balance Sheets, Consolidated Statements of Income and Comprehensive Income and Consolidated Statements of Cash Flows for all periods presented in this Form 10-Q (collectively, the "Consolidated Financial Statements"). Subsequent to the announcement of this sale, our continuing operations were reported as one business segment. All current and prior periods reflected in this Form 10-Q have been presented as continuing and discontinued operations, unless otherwise noted. For more information, refer to Note 11. Discontinued Operations.

Basis of Presentation

The unaudited consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial reporting and with the instructions to Form 10-Q and Regulation S-X promulgated by the SEC. Certain financial information that is included in our Annual Report on Form 10-K, including certain financial statement footnote disclosures, are not required by the rules and regulations of the SEC for interim financial reporting and have been condensed or omitted.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The financial statement categories that are most dependent on management estimates and assumptions include: investments; deferred policy acquisition costs; reinsurance receivables and recoverables; future policy benefits and losses, and loss settlement expenses; and pension and postretirement benefit obligations.

Certain prior year amounts have been reclassified to conform to the current year presentation.

Management of UFG believes the accompanying unaudited Consolidated Financial Statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. All significant intercompany transactions have been eliminated in consolidation. The results reported for the interim periods are not necessarily indicative of the results of operations that may be expected for the year. The unaudited Consolidated Financial Statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2017. The review report of Ernst & Young LLP as of March 31, 2018 and for the three-month periods ended March 31, 2018 and 2017 accompanies the unaudited Consolidated Financial Statements included in Part I, Item 1 "Financial Statements."

Cash and Cash Equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash, money market accounts, and non-negotiable certificates of deposit with original maturities of three months or less.

For the three-month periods ended March 31, 2018 and 2017, we made payments for income taxes for continuing operations totaling $19 and $9, respectively. We received a tax refund of $1,503 during the three-month period ended March 31, 2018. We did not receive a tax refund during the three-month period ended March 31, 2017.

For the three-month periods ended March 31, 2018 and 2017, we made no interest payments (excluding interest credited to policyholders’ accounts).

Deferred Policy Acquisition Costs ("DAC")

Certain costs associated with underwriting new business (primarily commissions, premium taxes and variable underwriting and policy issue expenses associated with successful acquisition efforts) are deferred. The following table is a summary of the components of DAC, including the related amortization recognized for the three-month period ended March 31, 2018.

	Continuing Operations			Discontinued Operations
	Property & Casualty Insurance			Life Insurance			Total
Recorded asset at beginning of period	$	88,102		$	71,151		$	159,253
Underwriting costs deferred	51,373			1,376			52,749
Amortization of deferred policy acquisition costs	(49,639		)	(1,895		)	(51,534		)
Ending unamortized deferred policy acquisition costs	$	89,836		$	70,632		$	160,468
Impact of unrealized gains and losses on available-for-sale securities	—			7,274			7,274
Sale of discontinued operations	—			(77,906		)	(77,906		)
Recorded asset at March 31, 2018	$	89,836		$	—		$	89,836

Property and casualty insurance policy acquisition costs deferred are amortized as premium revenue is recognized. The method followed in computing DAC limits the amount of such deferred costs to their estimated realizable value. This takes into account the premium to be earned, losses and loss settlement expenses expected to be incurred and certain other costs expected to be incurred as the premium is earned.

For traditional life insurance policies, DAC is amortized to income over the premium-paying period in proportion to the ratio of the expected annual premium revenue to the expected total premium revenue. Expected premium revenue and gross profits are based on the same mortality and withdrawal assumptions used in determining future policy benefits. These assumptions are not revised after policy issuance unless the recorded DAC asset is deemed to be unrecoverable from future expected profits.

For non-traditional life insurance policies, DAC is amortized over the anticipated terms in proportion to the ratio of the expected annual gross profits to the total expected gross profits. Changes in the amount or timing of expected gross profits result in adjustments to the cumulative amortization of these costs. The effect on amortization of DAC for revisions to estimated gross profits is reported in earnings in the period the estimated gross profits are revised.

The effect on DAC that results from the assumed realization of unrealized gains (losses) on investments allocated to non-traditional life insurance business is recognized with an offset to net unrealized investment appreciation as of the balance sheet date. The impact of unrealized gains and losses on available-for-sale securities decreased the DAC asset by $6,294 at December 31, 2017. There was no impact of unrealized gains and losses on available-for-sale securities on the DAC asset at March 31, 2018 because the non-traditional life insurance business is part of discontinued operations, which was sold on March 30, 2018.

Income Taxes

The Tax Cuts and Jobs Act of 2017 (the "Tax Act") was enacted on December 22, 2017. The Tax Act significantly revised the U.S. corporate income tax laws including lowering the U.S. federal corporate tax rate from 35 percent to 21 percent, effective January 1, 2018.

In December 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118, which addresses how a company recognizes provisional amounts when a company does not have the necessary information available, prepared or analyzed in reasonable detail to complete its accounting for the effect of the changes in the Tax Act. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. As of March 31, 2018 we had not completed accounting for the tax effects of enactment of the Tax Act, however for certain items, we have made a reasonable estimate of the effects on our deferred tax balances. For other items where we could not make a reasonable estimate, we are still using existing accounting guidance and the provisions of the tax laws that were in place prior to the enactment. The Company will continue to refine this estimated provisional adjustment as we gain a more thorough understanding of the tax law and the Company will take future guidance into consideration when it becomes available.

Deferred tax assets and liabilities are established based on differences between the financial statement bases of assets and liabilities and the tax bases of those same assets and liabilities, using the currently enacted statutory tax rates. Deferred income tax expense is measured by the year-to-year change in the net deferred tax asset or liability, except for certain changes in deferred tax amounts that affect stockholders' equity and do not impact federal income tax expense.

We reported consolidated federal income tax expense from continuing and discontinued operations of $9,316 and $5,153 for the three-month periods ended March 31, 2018 and 2017, respectively. Our effective tax rate is different than the federal statutory rate of 21 percent, due principally to the effect of tax-exempt municipal bond interest income and non-taxable dividend income.

The Company performs a quarterly review of its tax positions and makes a determination of whether it is more likely than not that the tax position will be sustained upon examination. If, based on review, it appears not more likely than not that the positions will be sustained, the Company will calculate any unrecognized tax benefits and, if necessary, calculate and accrue any related interest and penalties. We did not recognize any liability for unrecognized tax benefits at March 31, 2018 or December 31, 2017. In addition, we have not accrued for interest and penalties related to unrecognized tax benefits. However, if interest and penalties would need to be accrued related to unrecognized tax benefits, such amounts would be recognized as a component of federal income tax expense.

With regard to the sale of our life insurance subsidiary, federal income taxes were allocated to continuing and discontinued operations in accordance with the Company’s tax allocation agreement and the terms of the definitive agreement related to the sale.

We file a consolidated federal income tax return. We also file income tax returns in various state jurisdictions. We are no longer subject to federal or state income tax examination for years before 2014.

Subsequent Events

In the preparation of the accompanying financial statements, the Company has evaluated all material subsequent events or transactions that occurred after the balance sheet date through the date on which the financial statements were issued for potential recognition or disclosure in the Company's financial statements. The Company concluded there are no material subsequent events or transactions that have occurred after the balance sheet date through the date on which the financial statements were issued.

Recently Issued Accounting Standards

Accounting Standards Adopted in 2018

Revenue Recognition

In May 2014, the FASB issued comprehensive new guidance on revenue recognition which supersedes nearly all existing revenue recognition guidance under GAAP. The new guidance requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard creates a five-step model that requires companies to exercise judgment when considering the terms of the contract(s) and all relevant facts and circumstances. Insurance contracts are not within the scope of this new guidance. The new guidance is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the guidance as of January 1, 2018. The adoption of the new guidance had no impact on the Company's reporting and disclosure of net premiums earned from insurance contracts, net investment income or net realized gains and losses, as these revenue streams are not within the scope of this new guidance. The remaining revenue streams are immaterial and not impacted by the new standard.

Financial Instruments

In January 2016, the FASB issued guidance updating certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments in this update supersede the guidance to classify equity securities with readily determinable fair values into different categories (for example, trading or available-for-sale) and require equity securities to be measured at fair value with changes in the fair value recognized through net income. The new guidance also simplifies the impairment process for equity investments without readily determinable fair values. The new guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted the new guidance as of January 1, 2018. The adoption of the new guidance resulted in a reclassification from accumulated other comprehensive income to retained earnings of $191.2 million after tax, which is equal to the amount of net unrealized gains and losses on available-for-sale equity securities on January 1, 2018. Also, in the three months ended March 31, 2018, the Company recognized $8.1 million after-tax of net realized investment losses in net income from the change in value of equity securities due to the adoption of this new accounting guidance.

Statement of Cash Flows - Classification of Certain Cash Receipts and Payments

In August 2016, the FASB issued an update that clarifies the classification of certain cash receipts and payments in the Statement of Cash Flows. The update addresses eight existing cash flow issues by clarifying the correct classification to establish uniformity in practice. The updated guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted the new guidance as of January 1, 2018. The adoption had no impact on the Company's financial position and results of operations.

Defined Benefit Retirement Plan Cost

In March 2017, the FASB issued guidance on the presentation of net periodic benefit costs of defined benefit retirement benefit plans in the Statements of Income. The new guidance requires the service cost component of net periodic benefit cost of defined benefit plans to be presented in the same line in the Statements of Income as other employee compensation expenses. Also, under the new guidance, the service cost component of the net periodic benefit costs will be the only portion of costs subject to be capitalized in assets. The new guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted the new guidance as of January 1, 2018. The adoption of the new guidance resulted in a change in the capitalization of deferred acquisition costs to only include the pension and post retirement service costs in place of the total net periodic benefit costs. The adoption had an immaterial impact on the Company's financial position and results of operations. Additionally, the adoption did not impact the Company's presentation in the Statements of Income as all net periodic benefit costs and employee compensation expenses are included within the same category in the Statements of Income.

Share-Based Payments

In May 2017, the FASB issued new guidance which clarifies and addresses the diversity in practice when there is a change in the terms of a share-based payment award. The updated guidance clarifies when to use modification accounting when there is a change in the terms of a share-based payment and provides three conditions where modification accounting should not be applied. The new guidance is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the new guidance as of January 1, 2018. The adoption had no impact on the Company's financial position and results of operations.

Pending Adoption of Accounting Standards

Leases

In February 2016, the FASB issued guidance on the accounting for leases. The new guidance requires lessees to place a right-of-use asset and a lease liability, for all leases with terms greater than 12 months, on their balance sheets. The lease liability will be based on the present value of the future lease payments and the asset will be based on the liability. Expenses will be recognized on the income statement in a similar manner as previous methods. The new guidance is effective for annual periods beginning after December 15, 2018 and interim periods within those years. The Company will adopt the new guidance as of January 1, 2019. The Company has created an inventory of its operating leases and has calculated the undiscounted future minimum lease payments, which are disclosed in Note 13. Lease Commitments of the Company's Annual Report on Form 10-K for the year ended December 31, 2017. The undiscounted future minimum lease payments at December 31, 2017 is $22.5 million, which represents less than 1.0 percent of the Company's total assets at December 31, 2017. The Company is reviewing and updating its processes and controls under the new guidance. Management currently believes that the adoption will not have a significant impact on the Company's financial position and results of operations.

Financial Instruments - Credit Losses

In June 2016, the FASB issued new guidance on the measurement of credit losses for most financial instruments. The new guidance replaces the current incurred loss model for recognizing credit losses with an expected loss model for instruments measured at amortized cost and requires allowances to be recorded for available-for-sale debt securities rather than reduce the carrying amount. These allowances will be remeasured each reporting period. The new guidance is effective for annual periods beginning after December 15, 2020 and interim periods within those years. The Company will adopt the new guidance as of January 1, 2021 and is currently evaluating the impact on the Company's financial position, results of operations and key processes.

Income Taxes - Intra-entity Transfers

In October 2016, the FASB issued new guidance on the income tax treatment of intra-entity transfers. The new guidance replaces the current guidance which prohibits the recognition of current and deferred income taxes of intra-entity transfers until the asset is sold externally. Under the new guidance, the exemption is eliminated and income taxes will be recognized on transfers of intra-entity assets. The new guidance is effective for annual periods beginning after December 15, 2018 and interim periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2019 and is currently evaluating the impact on the Company's financial position and results of operations.

Goodwill

In January 2017, the FASB issued new guidance which simplifies the test for goodwill impairment. The new guidance eliminates the implied fair value calculation when measuring a goodwill impairment charge. Under the new guidance, impairment charges will be based on the excess of the carrying value over fair value of goodwill. The new guidance is effective for annual and interim periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2020 and it currently believes the adoption will have no impact on the Company's financial position and results of operations.

XML

Summary of Investments

3 Months Ended

Mar. 31, 2018

Investments [Abstract]

Summary of Investments

SUMMARY OF INVESTMENTS

Fair Value of Investments

A reconciliation of the amortized cost (cost for equity securities) to fair value of investments in held-to-maturity and available-for-sale fixed maturity and equity securities, presented on a consolidated basis, including both continuing and discontinued operations as of March 31, 2018 and December 31, 2017, is as follows:

March 31, 2018
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities:
Bonds
Corporate bonds - financial services	$	150	$	—	$	—	$	150
Mortgage-backed securities	—		—		—		—
Total Held-to-Maturity Fixed Maturities	$	150	$	—	$	—	$	150
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	15,995	$	1	$	270	$	15,726
U.S. government agency	135,379		606		1,556		134,429
States, municipalities and political subdivisions
General obligations:
Midwest	105,376		1,019		1,060		105,335
Northeast	46,132		468		196		46,404
South	134,796		916		1,993		133,719
West	112,871		976		1,516		112,331
Special revenue:
Midwest	143,823		1,495		1,188		144,130
Northeast	64,020		481		1,443		63,058
South	250,757		1,707		4,404		248,060
West	149,928		1,294		2,757		148,465
Foreign bonds	10,826		156		—		10,982
Public utilities	48,024		249		632		47,641
Corporate bonds
Energy	22,516		157		228		22,445
Industrials	33,214		200		427		32,987
Consumer goods and services	31,044		217		291		30,970
Health care	12,170		93		37		12,226
Technology, media and telecommunications	15,447		74		265		15,256
Financial services	55,489		226		1,203		54,512
Mortgage-backed securities	8,763		71		152		8,682
Collateralized mortgage obligations
Government national mortgage association	74,000		280		2,086		72,194
Federal home loan mortgage corporation	56,578		73		1,822		54,829
Federal national mortgage association	47,104		142		1,100		46,146
Asset-backed securities	3,196		318		45		3,469
Total Available-for-Sale Fixed Maturities	$	1,577,448	$	11,219	$	24,671	$	1,563,996

December 31, 2017
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities:
Bonds
Corporate bonds - financial services	$	150	$	—	$	—	$	150
Mortgage-backed securities	34		—		—		34
Total Held-to-Maturity Fixed Maturities	$	184	$	—	$	—	$	184
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	17,073	$	4	$	186	$	16,891
U.S. government agency	121,574		1,311		717		122,168
States, municipalities and political subdivisions
General obligations:
Midwest	107,689		2,446		439		109,696
Northeast	47,477		1,174		10		48,641
South	139,870		2,462		813		141,519
West	111,123		2,351		463		113,011
Special revenue:
Midwest	155,475		3,620		351		158,744
Northeast	79,028		1,351		619		79,760
South	260,145		5,218		1,851		263,512
West	156,576		2,929		1,198		158,307
Foreign bonds	51,361		1,441		49		52,753
Public utilities	206,028		3,386		270		209,144
Corporate bonds
Energy	93,191		1,972		110		95,053
Industrials	218,067		3,881		241		221,707
Consumer goods and services	183,253		3,498		494		186,257
Health care	74,125		1,312		29		75,408
Technology, media and telecommunications	146,853		2,376		250		148,979
Financial services	277,824		5,769		442		283,151
Mortgage-backed securities	13,828		101		238		13,691
Collateralized mortgage obligations
Government national mortgage association	157,836		1,921		2,274		157,483
Federal home loan mortgage corporation	201,320		1,879		4,047		199,152
Federal national mortgage association	104,903		1,703		1,174		105,432
Asset-backed securities	4,282		362		8		4,636
Total Available-for-Sale Fixed Maturities	$	2,928,901	$	52,467	$	16,273	$	2,965,095
Equity securities:
Common stocks

Public utilities	$	6,394	$	16,075	$	30	$	22,439
Energy	6,514		8,171		120		14,565
Industrials	13,117		53,522		120		66,519
Consumer goods and services	10,110		15,742		164		25,688
Health care	7,763		32,340		—		40,103
Technology, media and telecommunications	6,067		11,556		115		17,508
Financial services	11,529		104,985		67		116,447
Nonredeemable preferred stocks	992		305		—		1,297
Total Available-for-Sale Equity Securities	$	62,486	$	242,696	$	616	$	304,566
Total Available-for-Sale Securities	$	2,991,387	$	295,163	$	16,889	$	3,269,661

The following table is a reconciliation of the amortized cost (cost for equity securities) to fair value of investments in held-to-maturity and available-for-sale fixed maturity and equity securities for continuing and discontinued operations by investment type at March 31, 2018 and December 31, 2017:

March 31, 2018
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities:
Continuing operations	$	150	$	—	$	—	$	150
Discontinued operations	—		—		—		—
Total Held-to-Maturity Fixed Maturities	$	150	$	—	$	—	150
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	$	1,577,448	$	11,219	$	24,671	$	1,563,996
Discontinued operations	—		—		—		—
Total Available-for-Sale Fixed Maturities	$	1,577,448	$	11,219	$	24,671	$	1,563,996

Note: The sale of our life insurance business was completed on March 30, 2018.

December 31, 2017
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities:
Continuing operations	$	150	$	—	$	—	$	150
Discontinued operations	34		—		—		34
Total Held-to-Maturity Fixed Maturities	$	184	$	—	$	—	$	184
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	$	1,516,610	$	27,412	$	8,952	$	1,535,070
Discontinued operations	1,412,291		25,055		7,321		1,430,025
Total Available-for-Sale Fixed Maturities	2,928,901		52,467		16,273		2,965,095
Equity securities:
Continuing operations	$	57,387	$	224,065	$	539	$	280,913
Discontinued operations	5,099		18,631		77		23,653
Total Available-for-Sale Equity Securities	62,486		242,696		616		304,566
Total Available-for-Sale Securities	$	2,991,387	$	295,163	$	16,889	$	3,269,661

Maturities

The amortized cost and fair value of held-to-maturity, available-for-sale and trading fixed maturity securities at March 31, 2018, by contractual maturity, are shown in the following tables. The table below includes investments from continuing operations. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset-backed securities, mortgage-backed securities and collateralized mortgage obligations may be subject to prepayment risk and are therefore not categorized by contractual maturity.

Maturities
	Held-To-Maturity				Available-For-Sale				Trading
March 31, 2018	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	—	$	—	$	48,086	$	48,368	$	2,359	$	2,629
Due after one year through five years	150		150		187,837		189,107		8,750		10,497
Due after five years through 10 years	—		—		447,086		447,598		1,100		965
Due after 10 years	—		—		704,798		693,603		1,020		1,288
Asset-backed securities	—		—		3,196		3,469		—		—
Mortgage-backed securities	—		—		8,763		8,682		—		—
Collateralized mortgage obligations	—		—		177,682		173,169		—		—
	$	150	$	150	$	1,577,448	$	1,563,996	$	13,229	$	15,379

Net Realized Investment Gains and Losses

Net realized gains on disposition of investments are computed using the specific identification method and are included in the computation of net income. A summary of the components of net realized investment gains (losses) is as follows:

	Three Months Ended March 31,
	2018			2017
Net realized investment gains (losses) from continuing operations:
Fixed maturities:
Available-for-sale	$	4		$	424
Trading securities
Change in fair value	(111		)	371
Sales	556			57
Equity securities
Change in fair value	(9,188		)	111
Sales	875			1,286
Total net realized investment gains (losses) from continuing operations	$	(7,864	)	$	2,249
Total net realized investment gains (losses) from discontinued operations	(1,057		)	1,705
Total net realized investment gains (losses)	$	(8,921	)	$	3,954

The proceeds and gross realized gains on the sale of available-for-sale fixed maturity securities from continuing operations are as follows:

	Three Months Ended March 31,
	2018		2017
Proceeds from sales	$	—	$	1,095
Gross realized gains	—		1,046
Gross realized losses	—		—

The proceeds and gross realized gains on the sale of available-for-sale fixed maturity securities from discontinued operations are as follows:

	Three Months Ended March 31,
	2018		2017
Proceeds from sales	$	—	$	3,964
Gross realized gains	—		1,254
Gross realized losses	—		(78		)

Note: The sale of our life insurance business was completed on March 30, 2018.

There were no sales of held-to-maturity securities during the three-month periods ended March 31, 2018 and 2017.

Our investment portfolio includes trading securities with embedded derivatives. These securities are primarily convertible securities which are recorded at fair value. Income or loss, including the change in the fair value of these trading securities, is recognized currently in earnings as a component of net realized investment gains. Our portfolio of trading securities had a fair value of $15,379 and $16,842 at March 31, 2018 and December 31, 2017, respectively.

Funding Commitment

Pursuant to an agreement with one of our limited liability partnership investments, we are contractually committed through December 31, 2023 to make capital contributions upon request of the partnership. Our remaining potential contractual obligation was $1,499 at March 31, 2018.

Unrealized Appreciation

A summary of the changes in net unrealized investment appreciation during the reporting period is as follows:

	Three Months Ended March 31,
	2018			2017
Change in net unrealized investment appreciation
Available-for-sale fixed maturities	$	(59,126	)	$	7,043
Available-for-sale equity securities	—			5,795
Deferred policy acquisition costs	7,274			(1,277		)
Income tax effect	10,890			(4,046		)
Net unrealized investment depreciation of discontinued operations, sold	6,714			—
Cumulative change in accounting principles	(191,244		)	—
Total change in net unrealized investment appreciation, net of tax	$	(225,492	)	$	7,515

We continually monitor the difference between our cost basis and the estimated fair value of our investments. Our accounting policy for impairment recognition requires other-than-temporary impairment ("OTTI") charges to be recorded when we determine that it is more likely than not that we will be unable to collect all amounts due according to the contractual terms of the fixed maturity security or that the anticipated recovery in fair value of the equity security will not occur in a reasonable amount of time. Impairment charges on investments are recorded based on the fair value of the investments at the measurement date or based on the value calculated using a discounted cash flow model. Credit-related impairments on fixed maturity securities that we do not plan to sell, and for which we are not more likely than not to be required to sell, are recognized in net income. Any non-credit related impairment is recognized as a component of other comprehensive income. Factors considered in evaluating whether a decline in value is other-than-temporary include: the length of time and the extent to which fair value has been less than cost; the financial condition and near-term prospects of the issuer; our intention to hold the investment; and the likelihood that we will be required to sell the investment.

The tables on the following pages summarize our fixed maturity and equity securities that were in an unrealized loss position on a consolidated basis, including both continuing and discontinued operations at March 31, 2018 and December 31, 2017. The securities are presented by the length of time they have been continuously in an unrealized loss position. It is possible that we could recognize OTTI charges in future periods on securities held at March 31, 2018, if future events or information cause us to determine that a decline in fair value is other-than-temporary.

We have evaluated the near-term prospects of the issuers of our fixed maturity securities in relation to the severity and duration of the unrealized loss and determined that these losses did not warrant the recognition of an OTTI charge at March 31, 2018 or at March 31, 2017. We have no intent to sell, and it is more likely than not that we will not be required to sell, these securities until the fair value recovers to at least equal our cost basis or the securities mature.

March 31, 2018	Less than 12 months					12 months or longer					Total
Type of Investment	Number of Issues	Fair Value		Gross Unrealized Depreciation		Number of Issues	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	5	$	10,263	$	141	1	$	4,711	$	129	$	14,974	$	270
U.S. government agency	15	81,651		1,232		2	7,675		324		89,326		1,556
States, municipalities and political subdivisions
General obligations
Midwest	12	15,917		144		3	19,209		916		35,126		1,060
Northeast	4	13,214		94		1	3,546		102		16,760		196
South	18	38,686		466		11	28,716		1,527		67,402		1,993
West	13	31,285		406		8	25,021		1,110		56,306		1,516
Special revenue
Midwest	20	37,637		334		7	18,561		854		56,198		1,188
Northeast	4	12,466		162		11	27,722		1,281		40,188		1,443
South	24	50,787		866		27	67,940		3,538		118,727		4,404
West	16	30,075		331		21	52,243		2,426		82,318		2,757
Public utilities	13	33,171		632		—	—		—		33,171		632
Corporate bonds
Energy	5	10,567		228		—	—		—		10,567		228
Industrials	6	20,349		427		—	—		—		20,349		427
Consumer goods and services	5	15,823		291		—	—		—		15,823		291
Health care	2	3,694		37		—	—		—		3,694		37
Technology, media and telecommunications	3	9,745		265		—	—		—		9,745		265
Financial services	13	34,617		977		1	5,374		226		39,991		1,203
Mortgage-backed securities	16	2,828		70		10	2,123		82		4,951		152
Collateralized mortgage obligations
Government national mortgage association	20	47,898		1,351		6	12,087		735		59,985		2,086
Federal home loan mortgage corporation	13	35,124		1,050		4	12,590		772		47,714		1,822
Federal national mortgage association	13	33,515		722		1	6,963		378		40,478		1,100
Asset-backed securities	1	2,837		45		—	—		—		2,837		45
Total Available-for-Sale Fixed Maturities	241	$	572,149	$	10,271	114	$	294,481	$	14,400	$	866,630	$	24,671

December 31, 2017	Less than 12 months					12 months or longer					Total
Type of Investment	Number of Issues	Fair Value		Gross Unrealized Depreciation		Number of Issues	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	5	$	10,370	$	67	2	$	5,765	$	119	$	16,135	$	186
U.S. government agency	11	64,842		390		5	19,372		327		84,214		717
States, municipalities and political subdivisions
General obligations
Midwest	2	2,177		8		3	19,729		431		21,906		439
Northeast	—	—		—		1	3,644		10		3,644		10
South	3	7,959		32		11	29,545		781		37,504		813
West	2	5,944		18		8	25,755		445		31,699		463
Special revenue
Midwest	2	3,486		15		7	19,130		336		22,616		351
Northeast	1	4,471		37		11	28,476		582		32,947		619
South	8	7,749		107		27	69,917		1,744		77,666		1,851
West	3	5,424		16		22	56,753		1,182		62,177		1,198
Foreign bonds	1	857		49		—	—		—		857		49
Public utilities	8	19,186		79		5	8,446		191		27,632		270
Corporate bonds
Energy	1	2,236		13		1	1,606		97		3,842		110
Industrials	10	27,773		146		2	4,275		95		32,048		241
Consumer goods and services	14	32,781		248		3	6,813		246		39,594		494
Health care	4	9,947		29		—	—		—		9,947		29
Technology, media and telecommunications	12	35,319		122		3	10,413		128		45,732		250
Financial services	22	50,144		256		4	11,389		186		61,533		442
Mortgage-backed securities	10	2,458		18		10	6,641		220		9,099		238
Collateralized mortgage obligations
Government national mortgage association	20	49,764		629		17	46,969		1,645		96,733		2,274
Federal home loan mortgage corporation	11	37,543		577		20	75,679		3,470		113,222		4,047
Federal national mortgage association	11	31,958		342		11	20,123		832		52,081		1,174
Asset-backed securities	1	992		8		—	—		—		992		8
Total Available-for-Sale Fixed Maturities	162	$	413,380	$	3,206	173	$	470,440	$	13,067	$	883,820	$	16,273
Equity securities:
Common stocks
Public utilities	—	$	—	$	—	1	$	278	$	30	$	278	$	30
Energy	2	528		120		—	—		—		528		120
Industrials	1	99		13		5	193		107		292		120
Consumer goods and services	—	—		—		2	151		164		151		164
Technology, media and telecommunications	2	466		95		1	4		20		470		115
Financial services	2	193		55		1	9		12		202		67
Total Available-for-Sale Equity Securities	7	$	1,286	$	283	10	$	635	$	333	$	1,921	$	616
Total Available-for-Sale Securities	169	$	414,666	$	3,489	183	$	471,075	$	13,400	$	885,741	$	16,889

The tables on the following pages are a reconciliation for continuing and discontinued operations of our total fixed maturity and equity securities that were in an unrealized loss position at March 31, 2018 and December 31, 2017. The sale of our life insurance business was completed on March 30, 2018. The securities are presented by the length of time they have been continuously in an unrealized loss position:

March 31, 2018	Less than 12 months					12 months or longer					Total
Type of Investment	Number of Issues	Fair Value		Gross Unrealized Depreciation		Number of Issues	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	241	$	572,149	$	10,271	114	$	294,481	$	14,400	$	866,630	$	24,671
Discontinued operations	—	—		—		—	—		—		—		—
Total Available-for-Sale Fixed Maturities	241	$	572,149	$	10,271	114	$	294,481	$	14,400	$	866,630	$	24,671

Note: The sale of our life insurance business was completed on March 30, 2018.

December 31, 2017	Less than 12 months					12 months or longer					Total
Type of Investment	Number of Issues	Fair Value		Gross Unrealized Depreciation		Number of Issues	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	88	$	232,489	$	1,791	112	$	302,815	$	7,161	$	535,304	$	8,952
Discontinued operations	74	180,891		1,415		61	167,625		5,906		348,516		7,321
Total Available-for-Sale Fixed Maturities	162	$	413,380	$	3,206	173	$	470,440	$	13,067	$	883,820	$	16,273
Equity securities:
Continuing operations	5	$	1,129	$	236	6	$	385	$	303	$	1,514	$	539
Discontinued operations	2	157		47		4	250		30		407		77
Total Available-for-Sale Equity Securities	7	$	1,286	$	283	10	$	635	$	333	$	1,921	$	616
Total Available-for-Sale Securities	169	$	414,666	$	3,489	183	$	471,075	$	13,400	$	885,741	$	16,889

XML

Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

FAIR VALUE OF FINANCIAL INSTRUMENTS

Current accounting guidance on fair value measurements includes the application of a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Our financial instruments that are recorded at fair value are categorized into a three-level hierarchy, which is based upon the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets (i.e., Level 1) and the lowest priority to unobservable inputs (i.e., Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the financial instrument.

Financial instruments recorded at fair value are categorized in the fair value hierarchy as follows:

• Level 1: Valuations are based on unadjusted quoted prices in active markets for identical financial instruments that we have the ability to access.

• Level 2: Valuations are based on quoted prices for similar financial instruments, other than quoted prices included in Level 1, in markets that are not active or on inputs that are observable either directly or indirectly for the full term of the financial instrument.

• Level 3: Valuations are based on pricing or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument.

We review our fair value hierarchy categorizations on a quarterly basis at which time the classification of certain financial instruments may change if the input observations have changed. Transfers between levels, if any, are recorded as of the beginning of the reporting period.

To determine the fair value of the majority of our investments, we utilize prices obtained from independent, nationally recognized pricing services. We obtain one price for each security. When the pricing services cannot provide a determination of fair value for a specific security, we obtain non-binding price quotes from broker-dealers with whom we have had several years experience and who have demonstrated knowledge of the subject security. We request and utilize one broker quote per security.

In order to determine the proper classification in the fair value hierarchy for each security where the price is obtained from an independent pricing service, we obtain and evaluate the vendors' pricing procedures and inputs used to price the security, which include unadjusted quoted market prices for identical securities, such as a New York Stock Exchange closing price, and quoted prices for identical securities in markets that are not active. For fixed maturity securities, an evaluation of interest rates and yield curves observable at commonly quoted intervals, volatility, prepayment speeds, credit risks and default rates may also be performed. We have determined that these processes and inputs result in fair values and classifications consistent with the applicable accounting guidance on fair value measurements.

When possible, we use quoted market prices to determine the fair value of fixed maturities, equity securities, trading securities and short-term investments. When quoted market prices do not exist, we base estimates of fair value on market information obtained from independent pricing services and brokers or on valuation techniques that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument. Our valuation techniques are discussed in more detail throughout this section.

The fair value of our mortgage loans is determined by modeling performed by us based on the stated principal and coupon payments provided for in the loan agreements. These cash flows are then discounted using an appropriate risk-adjusted discount rate to determine the security's fair value, which is a Level 3 fair value measurement.

The fair value of our policy loans is equivalent to carrying value, which is a reasonable estimate of fair value and is classified as Level 2. We do not make policy loans for amounts in excess of the cash surrender value of the related policy. In all instances, the policy loans are fully collateralized by the related liability for future policy benefits for traditional insurance policies or by the policyholders' account balance for non-traditional policies.

Our other long-term investments consist primarily of our interests in limited liability partnerships that are recorded on the equity method of accounting. The fair value of the partnerships is obtained from the fund managers, which is based on the fair value of the underlying investments held in the partnerships. In management's opinion, these values represent a reasonable estimate of fair value. We have not adjusted the net asset value provided by the fund managers.

For cash and cash equivalents and accrued investment income, carrying value is a reasonable estimate of fair value due to the short-term nature of these financial instruments.

The Company formed a rabbi trust in 2014 to fund obligations under the United Fire & Casualty Company Supplemental Executive Retirement and Deferral Plan (the "Executive Retirement Plan"). Within the rabbi trust, corporate-owned life insurance ("COLI") policies are utilized as an investment vehicle and source of funding for the Company's Executive Retirement Plan. The COLI policies invest in mutual funds, which are priced daily by independent sources. As of March 31, 2018, the cash surrender value of the COLI policies was $4,404, which is equal to the fair value measured using Level 2 inputs, based on the underlying assets of the COLI policies, and is included in other assets in the Consolidated Balance Sheets.

Policy reserves are developed and recorded for deferred annuities, which is an interest-sensitive product, and income annuities. The fair value of the reserve liability for these annuity products is based upon an estimate of the discounted pretax cash flows that are forecast for the underlying business, which is a Level 3 fair value measurement. We base the discount rate on the current U.S. Treasury spot yield curve, which is then risk-adjusted for nonperformance risk and, for interest-sensitive business and market risk factors. The risk-adjusted discount rate is developed using interest rates that are available in the market and representative of the risks applicable to the underlying business.

A summary of the carrying value and estimated fair value of our financial instruments from continuing operations at March 31, 2018 and December 31, 2017 is as follows:

	March 31, 2018				December 31, 2017
	Fair Value		Carrying Value		Fair Value		Carrying Value
Assets
Investments
Fixed maturities:
Held-to-maturity securities	$	150	$	150	$	150	$	150
Available-for-sale securities	1,563,996		1,563,996		1,535,070		1,535,070
Trading securities	15,379		15,379		16,842		16,842
Equity securities	280,362		280,362		287,344		287,344
Other long-term investments	44,998		44,998		49,352		49,352
Short-term investments	175		175		175		175
Cash and cash equivalents	316,852		316,852		95,562		95,562
Corporate-owned life insurance	4,404		4,404		4,029		4,029

A summary of the carrying value and estimated fair value of our financial instruments from discontinued operations at March 31, 2018 and December 31, 2017 is as follows:

	March 31, 2018				December 31, 2017
	Fair Value		Carrying Value		Fair Value		Carrying Value
Assets
Investments
Fixed maturities:
Held-to-maturity securities	$	—	$	—	$	34	$	34
Available-for-sale securities	—		—		1,430,025		1,430,025
Equity securities:
Available-for-sale securities	—		—		23,653		23,653
Mortgage loans	—		—		3,594		3,435
Policy loans	—		—		5,815		5,815
Other long-term investments	—		—		16,437		16,437
Cash and cash equivalents	—		—		15,851		15,851
Liabilities
Policy reserves
Annuity (accumulations) (1)	$	—	$	—	$	591,702	$	611,866
Annuity (benefit payments)	—		—		147,038		93,560

Note: The sale of our life insurance business was completed on March 30, 2018.

The following tables present the categorization for our financial instruments measured at fair value on a recurring basis. The table includes financial instruments from both continuing and discontinued operations at March 31, 2018 and December 31, 2017:

March 31, 2018			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	15,726	$	—	$	15,726	$	—
U.S. government agency	134,429		—		134,429		—
States, municipalities and political subdivisions
General obligations
Midwest	105,335		—		105,335		—
Northeast	46,404		—		46,404		—
South	133,719		—		133,719		—
West	112,331		—		112,331		—
Special revenue
Midwest	144,130		—		144,130		—
Northeast	63,058		—		63,058		—
South	248,060		—		248,060		—
West	148,465		—		148,465		—
Foreign bonds	10,982		—		10,982		—
Public utilities	47,641		—		47,641		—
Corporate bonds
Energy	22,445		—		22,445		—
Industrials	32,987		—		32,987		—
Consumer goods and services	30,970		—		30,970		—
Health care	12,226		—		12,226		—
Technology, media and telecommunications	15,256		—		15,256		—
Financial services	54,512		—		54,412		100
Mortgage-backed securities	8,682		—		8,682		—
Collateralized mortgage obligations
Government national mortgage association	72,194		—		72,194		—
Federal home loan mortgage corporation	54,829		—		54,829		—
Federal national mortgage association	46,146		—		46,146		—
Asset-backed securities	3,469		—		2,837		632
Total Available-for-Sale Fixed Maturities	$	1,563,996	$	—	$	1,563,264	$	732
TRADING
Fixed maturities:
Bonds
Corporate bonds
Industrials	$	1,968	$	—	$	1,968	$	—
Consumer goods and services	1,846		—		1,846		—
Health care	3,739		—		3,739		—

Technology, media and telecommunications	2,212		—		2,212		—
Financial services	2,133		—		2,133		—
Redeemable preferred stocks	3,481		3,481		—		—
Total Trading Securities	$	15,379	$	3,481	$	11,898	$	—
EQUITY SECURITIES
Common stocks
Public utilities	$	15,095	$	15,095	$	—	$	—
Energy	12,782		12,782		—		—
Industrials	58,724		58,724		—		—
Consumer goods and services	24,414		24,414		—		—
Health care	39,025		39,025		—		—
Technology, media and telecommunications	14,410		14,410		—		—
Financial services	111,761		111,761		—		—
Nonredeemable preferred stocks	4,151		3,331		—		820
Total Equity Securities	$	280,362	$	279,542	$	—	$	820
Short-Term Investments	$	175	$	175	$	—	$	—
Money Market Accounts	$	285,804	$	285,804	$	—	$	—
Corporate-Owned Life Insurance	$	4,404	$	—	$	4,404	$	—
Total Assets Measured at Fair Value	$	2,150,120	$	569,002	$	1,579,566	$	1,552

December 31, 2017			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	16,891	$	—	$	16,891	$	—
U.S. government agency	122,168		—		122,168		—
States, municipalities and political subdivisions
General obligations
Midwest	109,696		—		109,696		—
Northeast	48,641		—		48,641		—
South	141,519		—		141,519		—
West	113,011		—		113,011		—
Special revenue
Midwest	158,744		—		158,744		—
Northeast	79,760		—		79,760		—
South	263,512		—		263,512		—
West	158,307		—		158,307		—
Foreign bonds	52,753		—		52,753		—
Public utilities	209,144		—		209,144		—
Corporate bonds
Energy	95,053		—		95,053		—
Industrials	221,707		—		221,707		—
Consumer goods and services	186,257		—		185,589		668
Health care	75,408		—		75,408		—
Technology, media and telecommunications	148,979		—		148,979		—
Financial services	283,151		—		275,474		7,677
Mortgage-backed securities	13,691		—		13,691		—
Collateralized mortgage obligations
Government national mortgage association	157,483		—		157,483		—
Federal home loan mortgage corporation	199,152		—		199,152		—
Federal national mortgage association	105,432		—		105,432		—
Asset-backed securities	4,636		—		3,989		647
Total Available-for-Sale Fixed Maturities	$	2,965,095	$	—	$	2,956,103	$	8,992
Equity securities:
Common stocks
Public utilities	$	22,439	$	22,439	$	—	$	—
Energy	14,565		14,565		—		—
Industrials	66,519		66,517		2		—
Consumer goods and services	25,688		25,688		—		—
Health care	40,103		40,103		—		—
Technology, media and telecommunications	17,508		17,508		—		—
Financial services	116,447		116,447		—		—

Nonredeemable preferred stocks	1,297		415		—		882
Total Available-for-Sale Equity Securities	$	304,566	$	303,682	$	2	$	882
Total Available-for-Sale Securities	$	3,269,661	$	303,682	$	2,956,105	$	9,874
TRADING
Fixed maturities:
Bonds
Corporate bonds
Industrials	$	2,220	$	—	$	2,220	$	—
Consumer goods and services	1,535		—		1,535		—
Health care	3,741		—		3,741		—
Technology, media and telecommunications	1,221		—		1,221		—
Financial services	5,566		—		5,566		—
Redeemable preferred stocks	2,559		2,559		—		—
Equity securities:
Public utilities	874		874		—		—
Energy	190		190		—		—
Industrials	989		989		—		—
Consumer goods and services	1,314		1,314		—		—
Health care	325		325		—		—
Financial services	198		198		—		—
Nonredeemable preferred stocks	2,541		2,541		—		—
Total Trading Securities	$	23,273	$	8,990	$	14,283	$	—
Short-Term Investments	$	175	$	175	$	—	$	—
Money Market Accounts	$	16,824	$	16,824	$	—	$	—
Corporate-Owned Life Insurance	$	4,029	$	—	$	4,029	$	—
Total Assets Measured at Fair Value	$	3,313,962	$	329,671	$	2,974,417	$	9,874

The following tables are a reconciliation for both continuing and discontinued operations of the presentation of the categorization for our financial instruments measured at fair value on a recurring basis at March 31, 2018 and December 31, 2017:

March 31, 2018			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	$	1,563,996	$	—	$	1,563,264	$	732
Discontinued operations	—		—		—		—
Total Available-for-Sale Fixed Maturities	$	1,563,996	$	—	$	1,563,264	$	732
TRADING
Fixed maturities:
Continuing operations	$	15,379	$	3,481	$	11,898	$	—
Discontinued operations	—		—		—		—
Total Trading Securities	$	15,379	$	3,481	$	11,898	$	—
EQUITY SECURITIES
Continuing operations	$	280,362	$	279,542	$	—	$	820
Discontinued operations	—		—		—		—
Total Equity Securities	$	280,362	$	279,542	$	—	$	820
SHORT-TERM INVESTMENTS
Continuing operations	$	175	$	175	$	—	$	—
Discontinued operations	—		—		—		$	—
Short-Term Investments	$	175	$	175	$	—	$	—
MONEY MARKET ACCOUNTS
Continuing operations	$	285,804	$	285,804	$	—	$	—
Discontinued operations	—		—		—		—
Money Market Accounts	$	285,804	$	285,804	$	—	$	—
CORPORATE-OWNED LIFE INSURANCE
Continuing operations	$	4,404	$	—	$	4,404	$	—
Discontinued operations	—		—		—		—
Corporate-Owned Life Insurance	$	4,404	$	—	$	4,404	$	—
Total Assets Measured at Fair Value	$	2,150,120	$	569,002	$	1,579,566	$	1,552

Note: The sale of our life insurance business was completed on March 30, 2018.

December 31, 2017			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	$	1,535,070	$	—	$	1,534,323	$	747
Discontinued operations	1,430,025		—		1,421,780		8,245
Total Available-for-Sale Fixed Maturities	$	2,965,095	$	—	$	2,956,103	$	8,992
Equity securities:
Continuing operations	$	280,913	$	280,031	$	—	$	882
Discontinued operations	23,653		23,651		2		—
Total Equity Securities	$	304,566	$	303,682	$	2	$	882
Total Available-for-Sale Securities	$	3,269,661	$	303,682	$	2,956,105	$	9,874
TRADING
Fixed maturities:
Continuing operations	$	16,842	$	2,559	$	14,283	$	—
Discontinued operations	—		—		—		—
Equity securities:
Continuing operations	6,431		6,431		—		—
Discontinued operations	—		—		—		—
Total Trading Securities	$	23,273	$	8,990	$	14,283	$	—
SHORT-TERM INVESTMENTS
Continuing operations	$	175	$	175	$	—	$	—
Discontinued operations	—		—		—		—
Short-Term Investments	$	175	$	175	$	—	$	—
MONEY MARKET ACCOUNTS
Continuing operations	$	6,147	$	6,147	$	—	$	—
Discontinued operations	10,677		10,677		—		—
Money Market Accounts	$	16,824	$	16,824	$	—	$	—
CORPORATE-OWNED LIFE INSURANCE
Continuing operations	$	4,029	$	—	$	4,029	$	—
Discontinued operations	—		—		—		—
Corporate-Owned Life Insurance	$	4,029	$	—	$	4,029	$	—
Total Assets Measured at Fair Value	$	3,313,962	$	329,671	$	2,974,417	$	9,874

The fair value of securities that are categorized as Level 1 is based on quoted market prices that are readily and regularly available.

We use a market-based approach for valuing all of our Level 2 securities and submit them primarily to a third-party valuation service provider. Any of these securities not valued by this service provider are submitted to another third-party valuation service provider. Both service providers use a market approach to find pricing of similar financial instruments. The market inputs our service providers normally seek to value our securities include the following, listed in approximate order of priority: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. The method and inputs for these securities classified as Level 2 are the same regardless of industry category, credit quality, duration, geographical concentration or economic characteristics. For our mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, our service providers use additional market inputs to value these securities, including the following: new issue data, periodic payment information, monthly payment information, collateral performance and real estate analysis from third parties. Our service providers prioritize inputs based on market conditions, and not all inputs listed are available for use in the valuation process for each security on any given day.

At least annually, we review the methodologies and assumptions used by our valuation service providers and verify that they are reasonable and representative of the fair value of the underlying securities held in the investment portfolio. We validate the prices obtained from independent pricing services and brokers prior to their use for reporting purposes by evaluating their reasonableness on a monthly basis. Our validation process includes a review for unusual fluctuations. Unusual fluctuations outside of our expectations are independently corroborated with additional third-party sources that use similar valuation techniques as discussed above. In addition, we also randomly select securities and independently corroborate the valuations obtained from our third-party valuation service providers. In our opinion, the pricing obtained at March 31, 2018 and December 31, 2017 was reasonable.

For the three-month period ended March 31, 2018, the change in our available-for-sale securities categorized as Level 1 and Level 2 is the result of investment purchases that were made using funds held in our money market accounts, disposals and the change in unrealized gains on both fixed maturities and equity securities. During the three-month period ended March 31, 2018, there were no securities transferred between Level 1 and Level 2.

Securities categorized as Level 3 include holdings in certain private placement fixed maturity and equity securities for which an active market does not currently exist. The fair value of our Level 3 private placement securities is determined by management relying on pricing received from our independent pricing services and brokers consistent with the process to estimate fair value for Level 2 securities. However, securities are categorized as Level 3 if these quotes cannot be corroborated by other market observable data due to the unobservable nature of the brokers’ valuation processes. If pricing cannot be obtained from these sources, which occurs on a limited basis, management will perform a discounted cash flow analysis, using an appropriate risk-adjusted discount rate, on the underlying security to estimate fair value. During the three-month period ended March 31, 2018, there were no securities transferred in or out of Level 3.

The following table provides a summary of the changes in fair value of our Level 3 securities from continuing operations for the three-month period ended March 31, 2018:

	States, municipalities and political subdivisions		Corporate bonds		Asset-backed securities			Equities			Total
Balance at January 1, 2018	$	—	$	100	$	647		$	882		$	1,629
Net unrealized gains (losses)(1)	—				(15		)	(62		)	(77		)
Balance at March 31, 2018	$	—	$	100	$	632		$	820		$	1,552

(1) Net unrealized gains (losses) are recorded as a component of comprehensive income.

The fixed maturities reported as disposals relate to the receipt of principal on calls or sinking fund bonds, in accordance with the indentures.

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Reserves for Losses and Loss Settlement Expenses

3 Months Ended

Mar. 31, 2018

Insurance Loss Reserves [Abstract]

Reserves for Losses and Loss Settlement Expenses

RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES

Property insurance indemnifies an insured with an interest in physical property for loss of, or damage to, such property or the loss of its income-producing abilities. Casualty insurance primarily covers liability for damage to property of, or injury to, a person or entity other than the insured. In most cases, casualty insurance also obligates the insurance company to provide a defense for the insured in litigation, arising out of events covered by the policy.

Liabilities for losses and loss settlement expenses reflect management's best estimates at a given point in time of what we expect to pay for claims that have been reported and those that have been incurred but not reported ("IBNR"), based on known facts, circumstances, and historical trends. Because property and casualty insurance reserves are estimates of the unpaid portions of incurred losses that have been reported to us, as well as losses that have been incurred but not reported, the establishment of appropriate reserves, including reserves for catastrophes, is an inherently uncertain and complex process. The ultimate cost of losses and related loss settlement expenses may vary materially from recorded amounts. We regularly update our reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims. Changes in prior year reserve estimates, which may be material, are reported as a component of losses and loss settlement expenses incurred in the period such changes are determined.

The determination of reserves (particularly those relating to liability lines of insurance that have relatively longer lag in claim reporting) requires significant work to reasonably project expected future claim reporting and payment patterns. If, during the course of our regular monitoring of reserves, we determine that coverages previously written are incurring higher than expected losses, we will take action that may include, among other things, increasing the related reserves. Any adjustments we make to reserves are reflected in operating results in the year in which we make those adjustments. We engage an independent actuary, Regnier Consulting Group, Inc., to render an opinion as to the reasonableness of our statutory reserves annually. The actuarial opinion is filed in those states where we are licensed.

On a quarterly basis, UFG's internal actuary performs a detailed actuarial review of IBNR reserves. This review includes a comparison of results from the most recent analysis of reserves completed by both our internal and external actuaries. Senior management meets with our internal actuary to review, on a regular and quarterly basis, the adequacy of carried reserves based on results from this actuarial analysis. There are two fundamental types or sources of IBNR reserves. We record IBNR reserves for "normal" types of claims and also specific IBNR reserves related to unique circumstances or events. A major hurricane is an example of an event that might necessitate establishing specific IBNR reserves because an analysis of existing historical data would not provide an appropriate estimate.

We do not discount loss reserves based on the time value of money. 

The following table provides an analysis of changes in our property and casualty losses and loss settlement expense reserves at March 31, 2018 and December 31, 2017 (net of reinsurance amounts):

	March 31, 2018			December 31, 2017
Gross liability for losses and loss settlement expenses at beginning of year	$	1,224,183		$	1,123,896
Ceded losses and loss settlement expenses	(59,871		)	(59,794		)
Net liability for losses and loss settlement expenses at beginning of year	$	1,164,312		$	1,064,102
Losses and loss settlement expenses incurred for claims occurring during
Current year	$	182,783		$	779,966
Prior years	(38,055		)	(54,253		)
Total incurred	$	144,728		$	725,713
Losses and loss settlement expense payments for claims occurring during
Current year	$	44,734		$	311,972
Prior years	104,319			313,531
Total paid	$	149,053		$	625,503
Net liability for losses and loss settlement expenses at end of year	$	1,159,987		$	1,164,312
Ceded loss and loss settlement expenses	59,994			59,871
Gross liability for losses and loss settlement expenses at end of period	$	1,219,981		$	1,224,183

There are a multitude of factors that can impact loss reserve development. Those factors include, but are not limited to: historical data, the potential impact of various loss reserve development factors and trends including historical loss experience, legislative enactments, judicial decisions, legal developments in imposition of damages, experience with alternative dispute resolution, results of our medical bill review process, the potential impact of salvage and subrogation and changes and trends in general economic conditions, including the effects of inflation. All of these factors influence our estimates of required reserves and for long tail lines these factors can change over the course of the settlement of the claim. However, there is no precise method for evaluating the specific monetary impact of any individual factor on the development of reserves.

The significant drivers of the favorable reserve development in 2018 were our commercial liability, commercial automobile and commercial fire and allied lines of business. For each of these lines, reductions in loss IBNR were approximately equal to claim payments and reductions in reserves for reported claims were similar to the favorable loss development. Much of the favorable development continues to come from loss adjustment expense and is attributed to our continued litigation management efforts. About half of our total favorable development is attributable to loss adjustment expense. Assumed reinsurance exhibited adverse development which provided a partial offset to the favorable development. Assumed reinsurance was adversely affected by the combination of paid losses and increases in reserves for reported claims which were greater than reductions in reserves for claims incurred but not reported.

The significant drivers of the favorable reserve development in 2017 were our commercial liability and workers compensation lines of business. Much of the favorable commercial liability development came from loss adjustment expense and is attributed to our continued litigation management efforts combined with some favorable development coming from decreases in reserves, which were more than sufficient to pay claims as they closed. Workers compensation favorable development was due to the combined effects of decreases in claim reserves along with favorable changes affecting loss adjustment expense. Our personal lines also contributed favorable development. The lines that experienced adverse development during the year, which partially offset the favorable development mentioned earlier, were assumed reinsurance and commercial automobile. The adverse development for assumed reinsurance is due to increases in prior year reserves for unpaid claims while the adverse development for commercial automobile is due to paid losses which were greater than reductions in reported loss reserves and reserves for claims incurred but not reported. No other single line of business contributed a significant portion of the total development.

Generally, we base reserves for each claim on the estimated ultimate exposure for that claim. We believe that it is appropriate and reasonable to establish a best estimate for reserves within a range of reasonable estimates, especially when we are reserving for claims for bodily injury, disabilities and similar claims, for which settlements and verdicts can vary widely. Our reserving philosophy may result in favorable reserve development in future years that will decrease losses and loss settlement expenses for prior year claims in the year of adjustment. We realize that this philosophy, coupled with what we believe to be aggressive and successful claims management and loss settlement practices, has resulted in year-to-year redundancies in reserves. We believe our approach produces recorded reserves that are reasonably consistent as to their relative position within a range of reasonable reserves from year-to-year. However, conditions and trends that have affected the reserve development for a given year do change. Therefore, such development cannot be used to project future reserve redundancies or deficiencies.

We are not aware of any significant contingent liabilities related to environmental issues. Because of the type of property coverage we write, we have potential exposure to environmental pollution, mold and asbestos claims. Our underwriters are aware of these exposures and use riders or endorsements to limit exposure.

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Employee Benefits

3 Months Ended

Mar. 31, 2018

Retirement Benefits [Abstract]

Employee Benefits

EMPLOYEE BENEFITS

Net Periodic Benefit Cost

The components of the net periodic benefit cost for our pension and postretirement benefit plans are as follows:

	Pension Plan						Postretirement Benefit Plan
Three Months Ended March 31,	2018			2017			2018			2017
Net periodic benefit cost
Service cost	$	2,175		$	1,714		$	749		$	505
Interest cost	1,875			1,765			502			482
Expected return on plan assets	(2,625		)	(2,412		)	—			—
Amortization of prior service credit	—			—			(1,352		)	(1,352		)
Amortization of net loss	1,071			890			589			461
Net periodic benefit cost	$	2,496		$	1,957		$	488		$	96

Employer Contributions

We previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2017 that we expected to contribute $6,400 to the pension plan in 2018. For the three-month period ended March 31, 2018, we contributed $1,600 to the pension plan.

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2018

Share-based Compensation [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

Non-qualified Employee Stock Award Plan

The United Fire Group, Inc. 2008 Stock Plan (the "2008 Stock Plan") authorized the issuance of restricted and unrestricted stock awards, restricted stock units, stock appreciation rights, incentive stock options, and non-qualified stock options for up to 1,900,000 shares of UFG common stock to employees. In May 2014, the Registrant's shareholders approved an additional 1,500,000 shares of UFG common stock issuable at any time and from time to time pursuant to the 2008 Stock Plan, among other amendments, and renamed such plan as the United Fire Group, Inc. Stock Plan (as amended, the "Stock Plan"). At March 31, 2018, there were 855,781 authorized shares remaining available for future issuance. The Stock Plan is administered by the Board of Directors, which determines those employees who will receive awards, when awards will be granted, and the terms and conditions of the awards. The Board of Directors may also take any action it deems necessary and appropriate for the administration of the Stock Plan. Pursuant to the Stock Plan, the Board of Directors may, at its sole discretion, grant awards to our employees who are in positions of substantial responsibility with UFG.

Options granted pursuant to the Stock Plan are granted to buy shares of UFG's common stock at the market value of the stock on the date of grant. All outstanding option awards have graded vesting over 3 years or 5 years from the grant date, unless the Board of Directors authorizes acceleration of vesting. Performance stock units cliff-vest after 3 years and the certification of performance results by UFG’s Compensation Committee. To the extent not exercised, vested option awards accumulate and are exercisable by the awardee, in whole or in part, in any subsequent year included in the option period, but not later than 10 years from the grant date. Restricted and unrestricted stock awards granted pursuant to the Stock Plan are granted at the market value of UFG's common stock on the date of the grant. Restricted stock units fully vest after 3 years or 5 years from the date of issuance, unless accelerated upon the approval of the Board of Directors, at which time UFG common stock will be issued to the awardee.

The activity in the Stock Plan is displayed in the following table:

Authorized Shares Available for Future Award Grants	Three Months Ended March 31, 2018		From Inception to March 31, 2018
Beginning balance	996,828		1,900,000
Additional shares authorized	—		1,500,000
Number of awards granted	(153,209	)	(3,025,180	)
Number of awards forfeited or expired	12,162		480,961
Ending balance	855,781		855,781
Number of option awards exercised	89,057		1,174,952
Number of unrestricted stock awards granted	—		8,470
Number of restricted stock awards vested	19,658		57,826

Non-qualified Non-employee Director Stock Option and Restricted Stock Plan

The United Fire Group, Inc. 2005 Non-qualified Non-employee Director Stock Option and Restricted Stock Plan (the "Director Plan") authorizes the issuance of restricted stock awards and non-qualified stock options to purchase shares of UFG's common stock to non-employee directors. At March 31, 2018, we had 61,813 authorized shares available for future issuance.

The Board of Directors has the authority to determine which non-employee directors receive awards, when options and restricted stock shall be granted, the option price, the option expiration date, the date of grant, the vesting schedule of options or whether the options shall be immediately vested, the terms and conditions of options and restricted stock (other than those terms and conditions set forth in the plan) and the number of shares of common stock to be issued pursuant to an option agreement or restricted stock agreement (subject to limits set forth in the plan). The Board of Directors may also take any action it deems necessary and appropriate for the administration of the Director Plan.

The activity in the Director Plan is displayed in the following table:

Authorized Shares Available for Future Award Grants	Three Months Ended March 31, 2018	From Inception to March 31, 2018
Beginning balance	61,813	300,000
Number of awards granted	—	(262,190	)
Number of awards forfeited or expired	—	24,003
Ending balance	61,813	61,813
Number of option awards exercised	7,599	96,880
Number of restricted stock awards vested	—	54,272

Stock-Based Compensation Expense

For the three-month periods ended March 31, 2018 and 2017, we recognized stock-based compensation expense of $1,281 and $1,044, respectively. Stock-based compensation expense is recognized over the vesting period of the stock options.

As of March 31, 2018, we had $10,458 in stock-based compensation expense that has yet to be recognized through our results of operations. We expect this compensation to be recognized over the remainder of 2018 and subsequent years according to the table below, except with respect to awards that are accelerated by the Board of Directors, in which case we will recognize any remaining compensation expense in the period in which the awards are accelerated.

2018	$	3,614
2019	3,856
2020	2,397
2021	552
2022	39
Total	$	10,458

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Segment Information

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

On September 19, 2017, the Company announced that it had agreed to sell its subsidiary, United Life, to Kuvare. The sale closed on March 30, 2018. As a result, our life insurance business has been considered held for sale and reported as discontinued operations in the Consolidated Financial Statements and all comparable prior periods have been presented to conform to the current period presentation. For more information, refer to Note 11. Discontinued Operations.

Prior to the announcement to sell United Life, we had two reportable business segments in our operations: property and casualty insurance and life insurance. The property and casualty insurance segment has six domestic locations from which it conducts its business. The life insurance segment operated from our home office in Cedar Rapids, Iowa. Because all of our insurance is sold domestically, we have no revenues from foreign operations.

After the announcement of United Life, our continuing operations, the property and casualty insurance business, was reported as one reportable segment. The property and casualty insurance business profit or loss is consistent with consolidated reporting as disclosed on the Consolidated Statements of Income and Comprehensive Income. We analyze the property and casualty insurance business results based on profitability (i.e., loss ratios), expenses and return on equity. The Company's property and casualty insurance business was determined using a management approach to make decisions on operating matters, including allocating resources, assessing performance, determining which products to market and sell, determining distribution networks with insurance agents and monitoring the regulatory environment. The property and casualty insurance business products have similar economic characteristics and use a similar marketing and distribution strategy with our independent agents. The property and casualty insurance business geographic concentration did not change after the announcement of the sale of the life insurance business. We will continue to evaluate our continuing operations on the basis of both statutory accounting principles prescribed or permitted by our states of domicile and GAAP.

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Earnings Per Common Share

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Earnings Per Common Share

EARNINGS PER COMMON SHARE

Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share gives effect to all dilutive common shares outstanding during the reporting period. The dilutive shares we consider in our diluted earnings per share calculation relate to our outstanding stock options, restricted stock awards and restricted stock unit awards.

We determine the dilutive effect of our outstanding stock options using the "treasury stock" method. Under this method, we assume the exercise of all of the outstanding stock options whose exercise price is less than the weighted-average market value of our common stock during the reporting period. This method also assumes that the proceeds from the hypothetical stock option exercises are used to repurchase shares of our common stock at the weighted-average market value of the stock during the reporting period. The net of the assumed stock options exercised and assumed common shares repurchased represents the number of dilutive common shares, which we add to the denominator of the earnings per share calculation.

The components of basic and diluted earnings per share were as follows for the three-month periods ended March 31, 2018 and 2017:

	Three Months Ended March 31,
(In Thousands, Except Share Data)	2018						2017
	Basic			Diluted			Basic		Diluted
Net income from continuing operations	$	20,364		$	20,364		$	18,584	$	18,584
Weighted-average common shares outstanding	24,915,772			24,915,772			25,443,101		25,443,101
Add dilutive effect of restricted stock unit awards	—			290,083			—		248,717
Add dilutive effect of stock options	—			252,235			—		162,363
Weighted-average common shares outstanding	24,915,772			25,458,090			25,443,101		25,854,181
Earnings per common share from continuing operations	$	0.82		$	0.80		$	0.73	$	0.72
Earnings per common share from discontinued operations	(0.08		)	(0.07		)	0.05		0.05
Gain on sale of discontinued operations, net of taxes	1.10			1.07			—		—
Earnings per common share	$	1.84		$	1.80		$	0.78	$	0.77
Awards excluded from diluted earnings per share calculation(1)	—			—			—		—

(1) Outstanding awards that are not "in-the-money" are excluded from the diluted earnings per share calculation because the effect of including them would have been anti-dilutive.

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Credit Facility

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Credit Facility

CREDIT FACILITY

On February 2, 2016, the Company, as borrower, entered into a Credit Agreement (the "Credit Agreement") by and among the Company, with the lenders from time to time party thereto and KeyBank National Association ("Key Bank"), as administrative agent, swingline lender and letter of credit issuer. The Credit Agreement provides for a $50,000four-year unsecured revolving credit facility that includes a $20,000 letter of credit subfacility and a swingline subfacility in the amount up to $5,000. The Credit Agreement allows the Company to increase the aggregate amount of the commitments thereunder by up to $100,000, provided that no event of default has occurred and is continuing and certain other conditions are satisfied.

The Credit Agreement is available for the Company's general corporate purposes, including liquidity, acquisitions and working capital. All unpaid principal and accrued interest under the Credit Agreement is due and payable in full at maturity on February 2, 2020. Based on the type of loan, advances under the Credit Agreement would bear interest on either the London interbank offered rate ("LIBOR") or a base rate plus, in each case, a calculated margin amount.

The unused commitments under the Credit Agreement will be subject to a commitment fee that will be calculated at a per annum rate. The applicable margins for borrowings under the Credit Agreement and the commitment fee thereunder will be determined by reference to a pricing grid based on the Company’s issuer credit rating by A.M. Best Company, Inc.

The Credit Agreement contains customary representations, conditions to borrowing, covenants and events of default, including certain covenants that limit or restrict, subject to certain exceptions, the ability of the Company and its subsidiaries to sell or transfer assets, enter into a merger or consolidate with another company, create liens, impose restrictions on subsidiary dividends, enter into sale-leaseback transactions, make investments or acquisitions, enter into certain reinsurance agreements, pay dividends during any period of default, enter into transactions with affiliates, change the nature of its business, or incur indebtedness. The Credit Agreement also includes financial covenants that require the Company to (i) maintain a minimum consolidated net worth, (ii) maintain a minimum consolidated statutory surplus and (iii) not exceed a 0.35 to 1.0 debt to total capitalization ratio.

There was no outstanding balance on the Credit Agreement at March 31, 2018 and 2017, respectively. For the three-month periods ended March 31, 2018 and 2017, we did not incur any interest expense related to either credit facility. We were in compliance with all covenants of the Credit Agreement at March 31, 2018.

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Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2018

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table shows the changes in the components of our accumulated other comprehensive income (loss), net of tax, for the three-month period ended March 31, 2018:

				Liability for
	Net unrealized			underfunded
	appreciation			employee
	on investments			benefit costs(1)			Total
Balance as of January 1, 2018	$	214,865		$	(46,551	)	$	168,314
Cumulative effect of change in accounting principle	(191,244		)	—			(191,244		)
Change in accumulated other comprehensive income before reclassifications	(34,219		)	—			(34,219		)
Reclassification adjustments from accumulated other comprehensive income (loss)	(29		)	1,311			1,282
Balance as of March 31, 2018	$	(10,627	)	$	(45,240	)	$	(55,867	)

(1) The preparation of financial statements in conformity with GAAP requires us to make various estimates and assumptions that affect the reporting of net periodic benefit cost, plan assets and plan obligations for each plan at the date of the financial statements. Actual results could differ from these estimates. One significant estimate relates to the calculation of the benefit obligation for each plan. We annually establish the discount rate, which is an estimate of the interest rate at which these benefits could be effectively settled, that is used to determine the present value of the respective plan's benefit obligations as of December 31.

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Discontinued Operations

3 Months Ended

Mar. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

On September 18, 2017, we signed a definitive agreement to sell our subsidiary, United Life, to Kuvare for $280,000 in cash, less a $21 adjustment as set forth in the definitive agreement, for a net amount of $279,979. The sale closed on March 30, 2018 and we reported an after-tax gain on the sale of discontinued operations of $27,307. Our life insurance business (previously reported as a separate segment) was considered held for sale and reported as discontinued operations and its financial position, results of operations and cash flows were reported separately for all periods presented, unless otherwise noted.

UFG has agreed to provide services to Kuvare through a transition services agreement ("TSA"). The TSA ensures a seamless transfer of the business between UFG and Kuvare. The TSA includes, among other considerations, accounting management, human resources, legal and information technology services, from the closing date for up to 24 months.

The assets and liabilities associated with discontinued operations prior to the closing of the sale have been presented separately in our Consolidated Balance Sheets. The major assets and liability categories were as follows as of the dates indicated:

Discontinued Operations
Balance Sheets
(In Thousands, Except Share Data)	March 31, 2018		December 31, 2017
	(unaudited)
Assets
Investments
Fixed maturities
Held-to-maturity, at amortized cost (fair value $0 in 2018 and $34 in 2017)	$	—	$	34
Available-for-sale, at fair value (amortized cost $0 in 2018 and $1,412,291 in 2017)	—		1,430,025
Equity Securities at fair value (cost $0 in 2018 and $5,099 in 2017)	—		23,653
Mortgage loans	—		3,435
Policy loans	—		5,815
Other long-term investments	—		16,437
	—		1,479,399
Cash and cash equivalents	—		15,851
Deferred policy acquisition costs	—		71,151
Other assets	—		19,733
Total assets held for sale	$	—	$	1,586,134
Liabilities
Future policy benefits and losses	$	—	$	1,320,401
Deferred income taxes	—		18,716
Accrued expenses and other liabilities	—		8,018
Total liabilities held for sale	$	—	$	1,347,135

Summary operating results of discontinued operations were as follows for the periods indicated:

Discontinued Operations
Statements of Income (Unaudited)
	Three Months Ended March 31,
(In Thousands, Except Share Data)	2018			2017
Revenues
Net premiums earned	$	13,003		$	17,428
Investment income, net of investment expenses	12,663			12,450
Net realized investment gains (losses)	(1,057		)	1,705
Other income	146			198
Total revenues	$	24,755		$	31,781
Benefits, Losses and Expenses
Losses and loss settlement expenses	$	10,823		$	11,071
Increase in liability for future policy benefits	5,023			8,579
Amortization of deferred policy acquisition costs	1,895			1,673
Other underwriting expenses	3,864			3,631
Interest on policyholders’ accounts	4,499			4,744
Total benefits, losses and expenses	$	26,104		$	29,698
Income (loss) from discontinued operations before income taxes	$	(1,349	)	$	2,083
Federal income tax expense	563			731
Net income (loss) from discontinued operations	$	(1,912	)	$	1,352
Earnings per common share from discontinued operations:
Basic	$	(0.08	)	$	0.05
Diluted	(0.07		)	0.05

The Company's Consolidated Statement of Cash Flows presents operating, investing and financing cash flows of the discontinued operations separately. The Company's cash management and financial management of both continued and discontinued operations is consolidated as a centralized corporate function in our Finance Department.

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Nature of Operations and Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Discontinued Operations

Discontinued Operations

We have historically reported our operations in two business segments: property and casualty insurance and life insurance. On September 18, 2017, the Company signed a definitive agreement to sell its subsidiary, United Life Insurance Company ("United Life"), to Kuvare US Holdings, Inc. ("Kuvare") and on March 30, 2018 the sale closed. As a result, our life insurance business, previously a separate segment, was considered held for sale and reported as discontinued operations in the Consolidated Balance Sheets, Consolidated Statements of Income and Comprehensive Income and Consolidated Statements of Cash Flows for all periods presented in this Form 10-Q (collectively, the "Consolidated Financial Statements"). Subsequent to the announcement of this sale, our continuing operations were reported as one business segment. All current and prior periods reflected in this Form 10-Q have been presented as continuing and discontinued operations, unless otherwise noted.

Basis of Presentation

Basis of Presentation

The unaudited consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial reporting and with the instructions to Form 10-Q and Regulation S-X promulgated by the SEC. Certain financial information that is included in our Annual Report on Form 10-K, including certain financial statement footnote disclosures, are not required by the rules and regulations of the SEC for interim financial reporting and have been condensed or omitted.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The financial statement categories that are most dependent on management estimates and assumptions include: investments; deferred policy acquisition costs; reinsurance receivables and recoverables; future policy benefits and losses, and loss settlement expenses; and pension and postretirement benefit obligations.

Reclassification

Certain prior year amounts have been reclassified to conform to the current year presentation.

Cash and Cash Equivalents

Cash and Cash Equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash, money market accounts, and non-negotiable certificates of deposit with original maturities of three months or less.

Deferred Policy Acquisition Costs (DAC)

Deferred Policy Acquisition Costs ("DAC")

Certain costs associated with underwriting new business (primarily commissions, premium taxes and variable underwriting and policy issue expenses associated with successful acquisition efforts) are deferred. The following table is a summary of the components of DAC, including the related amortization recognized for the three-month period ended March 31, 2018.

	Continuing Operations			Discontinued Operations
	Property & Casualty Insurance			Life Insurance			Total
Recorded asset at beginning of period	$	88,102		$	71,151		$	159,253
Underwriting costs deferred	51,373			1,376			52,749
Amortization of deferred policy acquisition costs	(49,639		)	(1,895		)	(51,534		)
Ending unamortized deferred policy acquisition costs	$	89,836		$	70,632		$	160,468
Impact of unrealized gains and losses on available-for-sale securities	—			7,274			7,274
Sale of discontinued operations	—			(77,906		)	(77,906		)
Recorded asset at March 31, 2018	$	89,836		$	—		$	89,836

Property and casualty insurance policy acquisition costs deferred are amortized as premium revenue is recognized. The method followed in computing DAC limits the amount of such deferred costs to their estimated realizable value. This takes into account the premium to be earned, losses and loss settlement expenses expected to be incurred and certain other costs expected to be incurred as the premium is earned.

For traditional life insurance policies, DAC is amortized to income over the premium-paying period in proportion to the ratio of the expected annual premium revenue to the expected total premium revenue. Expected premium revenue and gross profits are based on the same mortality and withdrawal assumptions used in determining future policy benefits. These assumptions are not revised after policy issuance unless the recorded DAC asset is deemed to be unrecoverable from future expected profits.

For non-traditional life insurance policies, DAC is amortized over the anticipated terms in proportion to the ratio of the expected annual gross profits to the total expected gross profits. Changes in the amount or timing of expected gross profits result in adjustments to the cumulative amortization of these costs. The effect on amortization of DAC for revisions to estimated gross profits is reported in earnings in the period the estimated gross profits are revised.

The effect on DAC that results from the assumed realization of unrealized gains (losses) on investments allocated to non-traditional life insurance business is recognized with an offset to net unrealized investment appreciation as of the balance sheet date.

Income Taxes

Income Taxes

The Tax Cuts and Jobs Act of 2017 (the "Tax Act") was enacted on December 22, 2017. The Tax Act significantly revised the U.S. corporate income tax laws including lowering the U.S. federal corporate tax rate from 35 percent to 21 percent, effective January 1, 2018.

In December 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118, which addresses how a company recognizes provisional amounts when a company does not have the necessary information available, prepared or analyzed in reasonable detail to complete its accounting for the effect of the changes in the Tax Act. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. As of March 31, 2018 we had not completed accounting for the tax effects of enactment of the Tax Act, however for certain items, we have made a reasonable estimate of the effects on our deferred tax balances. For other items where we could not make a reasonable estimate, we are still using existing accounting guidance and the provisions of the tax laws that were in place prior to the enactment. The Company will continue to refine this estimated provisional adjustment as we gain a more thorough understanding of the tax law and the Company will take future guidance into consideration when it becomes available.

Deferred tax assets and liabilities are established based on differences between the financial statement bases of assets and liabilities and the tax bases of those same assets and liabilities, using the currently enacted statutory tax rates. Deferred income tax expense is measured by the year-to-year change in the net deferred tax asset or liability, except for certain changes in deferred tax amounts that affect stockholders' equity and do not impact federal income tax expense.

We reported consolidated federal income tax expense from continuing and discontinued operations of $9,316 and $5,153 for the three-month periods ended March 31, 2018 and 2017, respectively. Our effective tax rate is different than the federal statutory rate of 21 percent, due principally to the effect of tax-exempt municipal bond interest income and non-taxable dividend income.

The Company performs a quarterly review of its tax positions and makes a determination of whether it is more likely than not that the tax position will be sustained upon examination. If, based on review, it appears not more likely than not that the positions will be sustained, the Company will calculate any unrecognized tax benefits and, if necessary, calculate and accrue any related interest and penalties. We did not recognize any liability for unrecognized tax benefits at March 31, 2018 or December 31, 2017. In addition, we have not accrued for interest and penalties related to unrecognized tax benefits. However, if interest and penalties would need to be accrued related to unrecognized tax benefits, such amounts would be recognized as a component of federal income tax expense.

With regard to the sale of our life insurance subsidiary, federal income taxes were allocated to continuing and discontinued operations in accordance with the Company’s tax allocation agreement and the terms of the definitive agreement related to the sale.

We file a consolidated federal income tax return. We also file income tax returns in various state jurisdictions. We are no longer subject to federal or state income tax examination for years before 2014.

Subsequent Events

Subsequent Events

In the preparation of the accompanying financial statements, the Company has evaluated all material subsequent events or transactions that occurred after the balance sheet date through the date on which the financial statements were issued for potential recognition or disclosure in the Company's financial statements.

Recently Issued Accounting Standards

Recently Issued Accounting Standards

Accounting Standards Adopted in 2018

Revenue Recognition

In May 2014, the FASB issued comprehensive new guidance on revenue recognition which supersedes nearly all existing revenue recognition guidance under GAAP. The new guidance requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard creates a five-step model that requires companies to exercise judgment when considering the terms of the contract(s) and all relevant facts and circumstances. Insurance contracts are not within the scope of this new guidance. The new guidance is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the guidance as of January 1, 2018. The adoption of the new guidance had no impact on the Company's reporting and disclosure of net premiums earned from insurance contracts, net investment income or net realized gains and losses, as these revenue streams are not within the scope of this new guidance. The remaining revenue streams are immaterial and not impacted by the new standard.

Financial Instruments

In January 2016, the FASB issued guidance updating certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments in this update supersede the guidance to classify equity securities with readily determinable fair values into different categories (for example, trading or available-for-sale) and require equity securities to be measured at fair value with changes in the fair value recognized through net income. The new guidance also simplifies the impairment process for equity investments without readily determinable fair values. The new guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted the new guidance as of January 1, 2018. The adoption of the new guidance resulted in a reclassification from accumulated other comprehensive income to retained earnings of $191.2 million after tax, which is equal to the amount of net unrealized gains and losses on available-for-sale equity securities on January 1, 2018. Also, in the three months ended March 31, 2018, the Company recognized $8.1 million after-tax of net realized investment losses in net income from the change in value of equity securities due to the adoption of this new accounting guidance.

Statement of Cash Flows - Classification of Certain Cash Receipts and Payments

In August 2016, the FASB issued an update that clarifies the classification of certain cash receipts and payments in the Statement of Cash Flows. The update addresses eight existing cash flow issues by clarifying the correct classification to establish uniformity in practice. The updated guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted the new guidance as of January 1, 2018. The adoption had no impact on the Company's financial position and results of operations.

Defined Benefit Retirement Plan Cost

In March 2017, the FASB issued guidance on the presentation of net periodic benefit costs of defined benefit retirement benefit plans in the Statements of Income. The new guidance requires the service cost component of net periodic benefit cost of defined benefit plans to be presented in the same line in the Statements of Income as other employee compensation expenses. Also, under the new guidance, the service cost component of the net periodic benefit costs will be the only portion of costs subject to be capitalized in assets. The new guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted the new guidance as of January 1, 2018. The adoption of the new guidance resulted in a change in the capitalization of deferred acquisition costs to only include the pension and post retirement service costs in place of the total net periodic benefit costs. The adoption had an immaterial impact on the Company's financial position and results of operations. Additionally, the adoption did not impact the Company's presentation in the Statements of Income as all net periodic benefit costs and employee compensation expenses are included within the same category in the Statements of Income.

Share-Based Payments

In May 2017, the FASB issued new guidance which clarifies and addresses the diversity in practice when there is a change in the terms of a share-based payment award. The updated guidance clarifies when to use modification accounting when there is a change in the terms of a share-based payment and provides three conditions where modification accounting should not be applied. The new guidance is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the new guidance as of January 1, 2018. The adoption had no impact on the Company's financial position and results of operations.

Pending Adoption of Accounting Standards

Leases

In February 2016, the FASB issued guidance on the accounting for leases. The new guidance requires lessees to place a right-of-use asset and a lease liability, for all leases with terms greater than 12 months, on their balance sheets. The lease liability will be based on the present value of the future lease payments and the asset will be based on the liability. Expenses will be recognized on the income statement in a similar manner as previous methods. The new guidance is effective for annual periods beginning after December 15, 2018 and interim periods within those years. The Company will adopt the new guidance as of January 1, 2019. The Company has created an inventory of its operating leases and has calculated the undiscounted future minimum lease payments, which are disclosed in Note 13. Lease Commitments of the Company's Annual Report on Form 10-K for the year ended December 31, 2017. The undiscounted future minimum lease payments at December 31, 2017 is $22.5 million, which represents less than 1.0 percent of the Company's total assets at December 31, 2017. The Company is reviewing and updating its processes and controls under the new guidance. Management currently believes that the adoption will not have a significant impact on the Company's financial position and results of operations.

Financial Instruments - Credit Losses

In June 2016, the FASB issued new guidance on the measurement of credit losses for most financial instruments. The new guidance replaces the current incurred loss model for recognizing credit losses with an expected loss model for instruments measured at amortized cost and requires allowances to be recorded for available-for-sale debt securities rather than reduce the carrying amount. These allowances will be remeasured each reporting period. The new guidance is effective for annual periods beginning after December 15, 2020 and interim periods within those years. The Company will adopt the new guidance as of January 1, 2021 and is currently evaluating the impact on the Company's financial position, results of operations and key processes.

Income Taxes - Intra-entity Transfers

In October 2016, the FASB issued new guidance on the income tax treatment of intra-entity transfers. The new guidance replaces the current guidance which prohibits the recognition of current and deferred income taxes of intra-entity transfers until the asset is sold externally. Under the new guidance, the exemption is eliminated and income taxes will be recognized on transfers of intra-entity assets. The new guidance is effective for annual periods beginning after December 15, 2018 and interim periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2019 and is currently evaluating the impact on the Company's financial position and results of operations.

Goodwill

In January 2017, the FASB issued new guidance which simplifies the test for goodwill impairment. The new guidance eliminates the implied fair value calculation when measuring a goodwill impairment charge. Under the new guidance, impairment charges will be based on the excess of the carrying value over fair value of goodwill. The new guidance is effective for annual and interim periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2020 and it currently believes the adoption will have no impact on the Company's financial position and results of operations.

Fair Value Measurement

Current accounting guidance on fair value measurements includes the application of a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Our financial instruments that are recorded at fair value are categorized into a three-level hierarchy, which is based upon the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets (i.e., Level 1) and the lowest priority to unobservable inputs (i.e., Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the financial instrument.

Financial instruments recorded at fair value are categorized in the fair value hierarchy as follows:

• Level 1: Valuations are based on unadjusted quoted prices in active markets for identical financial instruments that we have the ability to access.

• Level 2: Valuations are based on quoted prices for similar financial instruments, other than quoted prices included in Level 1, in markets that are not active or on inputs that are observable either directly or indirectly for the full term of the financial instrument.

• Level 3: Valuations are based on pricing or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument.

We review our fair value hierarchy categorizations on a quarterly basis at which time the classification of certain financial instruments may change if the input observations have changed. Transfers between levels, if any, are recorded as of the beginning of the reporting period.

To determine the fair value of the majority of our investments, we utilize prices obtained from independent, nationally recognized pricing services. We obtain one price for each security. When the pricing services cannot provide a determination of fair value for a specific security, we obtain non-binding price quotes from broker-dealers with whom we have had several years experience and who have demonstrated knowledge of the subject security. We request and utilize one broker quote per security.

In order to determine the proper classification in the fair value hierarchy for each security where the price is obtained from an independent pricing service, we obtain and evaluate the vendors' pricing procedures and inputs used to price the security, which include unadjusted quoted market prices for identical securities, such as a New York Stock Exchange closing price, and quoted prices for identical securities in markets that are not active. For fixed maturity securities, an evaluation of interest rates and yield curves observable at commonly quoted intervals, volatility, prepayment speeds, credit risks and default rates may also be performed. We have determined that these processes and inputs result in fair values and classifications consistent with the applicable accounting guidance on fair value measurements.

When possible, we use quoted market prices to determine the fair value of fixed maturities, equity securities, trading securities and short-term investments. When quoted market prices do not exist, we base estimates of fair value on market information obtained from independent pricing services and brokers or on valuation techniques that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument. Our valuation techniques are discussed in more detail throughout this section.

The fair value of our mortgage loans is determined by modeling performed by us based on the stated principal and coupon payments provided for in the loan agreements. These cash flows are then discounted using an appropriate risk-adjusted discount rate to determine the security's fair value, which is a Level 3 fair value measurement.

The fair value of our policy loans is equivalent to carrying value, which is a reasonable estimate of fair value and is classified as Level 2. We do not make policy loans for amounts in excess of the cash surrender value of the related policy. In all instances, the policy loans are fully collateralized by the related liability for future policy benefits for traditional insurance policies or by the policyholders' account balance for non-traditional policies.

Our other long-term investments consist primarily of our interests in limited liability partnerships that are recorded on the equity method of accounting. The fair value of the partnerships is obtained from the fund managers, which is based on the fair value of the underlying investments held in the partnerships. In management's opinion, these values represent a reasonable estimate of fair value. We have not adjusted the net asset value provided by the fund managers.

For cash and cash equivalents and accrued investment income, carrying value is a reasonable estimate of fair value due to the short-term nature of these financial instruments.

The Company formed a rabbi trust in 2014 to fund obligations under the United Fire & Casualty Company Supplemental Executive Retirement and Deferral Plan (the "Executive Retirement Plan"). Within the rabbi trust, corporate-owned life insurance ("COLI") policies are utilized as an investment vehicle and source of funding for the Company's Executive Retirement Plan. The COLI policies invest in mutual funds, which are priced daily by independent sources. As of March 31, 2018, the cash surrender value of the COLI policies was $4,404, which is equal to the fair value measured using Level 2 inputs, based on the underlying assets of the COLI policies, and is included in other assets in the Consolidated Balance Sheets.

Policy reserves are developed and recorded for deferred annuities, which is an interest-sensitive product, and income annuities. The fair value of the reserve liability for these annuity products is based upon an estimate of the discounted pretax cash flows that are forecast for the underlying business, which is a Level 3 fair value measurement. We base the discount rate on the current U.S. Treasury spot yield curve, which is then risk-adjusted for nonperformance risk and, for interest-sensitive business and market risk factors. The risk-adjusted discount rate is developed using interest rates that are available in the market and representative of the risks applicable to the underlying business.

The fair value of securities that are categorized as Level 1 is based on quoted market prices that are readily and regularly available.

We use a market-based approach for valuing all of our Level 2 securities and submit them primarily to a third-party valuation service provider. Any of these securities not valued by this service provider are submitted to another third-party valuation service provider. Both service providers use a market approach to find pricing of similar financial instruments. The market inputs our service providers normally seek to value our securities include the following, listed in approximate order of priority: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. The method and inputs for these securities classified as Level 2 are the same regardless of industry category, credit quality, duration, geographical concentration or economic characteristics. For our mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, our service providers use additional market inputs to value these securities, including the following: new issue data, periodic payment information, monthly payment information, collateral performance and real estate analysis from third parties. Our service providers prioritize inputs based on market conditions, and not all inputs listed are available for use in the valuation process for each security on any given day.

At least annually, we review the methodologies and assumptions used by our valuation service providers and verify that they are reasonable and representative of the fair value of the underlying securities held in the investment portfolio. We validate the prices obtained from independent pricing services and brokers prior to their use for reporting purposes by evaluating their reasonableness on a monthly basis. Our validation process includes a review for unusual fluctuations. Unusual fluctuations outside of our expectations are independently corroborated with additional third-party sources that use similar valuation techniques as discussed above. In addition, we also randomly select securities and independently corroborate the valuations obtained from our third-party valuation service providers. In our opinion, the pricing obtained at March 31, 2018 and December 31, 2017 was reasonable.

For the three-month period ended March 31, 2018, the change in our available-for-sale securities categorized as Level 1 and Level 2 is the result of investment purchases that were made using funds held in our money market accounts, disposals and the change in unrealized gains on both fixed maturities and equity securities. During the three-month period ended March 31, 2018, there were no securities transferred between Level 1 and Level 2.

Securities categorized as Level 3 include holdings in certain private placement fixed maturity and equity securities for which an active market does not currently exist. The fair value of our Level 3 private placement securities is determined by management relying on pricing received from our independent pricing services and brokers consistent with the process to estimate fair value for Level 2 securities. However, securities are categorized as Level 3 if these quotes cannot be corroborated by other market observable data due to the unobservable nature of the brokers’ valuation processes. If pricing cannot be obtained from these sources, which occurs on a limited basis, management will perform a discounted cash flow analysis, using an appropriate risk-adjusted discount rate, on the underlying security to estimate fair value. During the three-month period ended March 31, 2018, there were no securities transferred in or out of Level 3.

Segment Information

Prior to the announcement to sell United Life, we had two reportable business segments in our operations: property and casualty insurance and life insurance. The property and casualty insurance segment has six domestic locations from which it conducts its business. The life insurance segment operated from our home office in Cedar Rapids, Iowa. Because all of our insurance is sold domestically, we have no revenues from foreign operations.

After the announcement of United Life, our continuing operations, the property and casualty insurance business, was reported as one reportable segment. The property and casualty insurance business profit or loss is consistent with consolidated reporting as disclosed on the Consolidated Statements of Income and Comprehensive Income. We analyze the property and casualty insurance business results based on profitability (i.e., loss ratios), expenses and return on equity. The Company's property and casualty insurance business was determined using a management approach to make decisions on operating matters, including allocating resources, assessing performance, determining which products to market and sell, determining distribution networks with insurance agents and monitoring the regulatory environment. The property and casualty insurance business products have similar economic characteristics and use a similar marketing and distribution strategy with our independent agents. The property and casualty insurance business geographic concentration did not change after the announcement of the sale of the life insurance business. We will continue to evaluate our continuing operations on the basis of both statutory accounting principles prescribed or permitted by our states of domicile and GAAP.

Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share gives effect to all dilutive common shares outstanding during the reporting period. The dilutive shares we consider in our diluted earnings per share calculation relate to our outstanding stock options, restricted stock awards and restricted stock unit awards.

We determine the dilutive effect of our outstanding stock options using the "treasury stock" method. Under this method, we assume the exercise of all of the outstanding stock options whose exercise price is less than the weighted-average market value of our common stock during the reporting period. This method also assumes that the proceeds from the hypothetical stock option exercises are used to repurchase shares of our common stock at the weighted-average market value of the stock during the reporting period. The net of the assumed stock options exercised and assumed common shares repurchased represents the number of dilutive common shares, which we add to the denominator of the earnings per share calculation.

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Nature of Operations and Basis of Presentation (Tables)

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Components of Deferred Acquisition Costs

The following table is a summary of the components of DAC, including the related amortization recognized for the three-month period ended March 31, 2018.

	Continuing Operations			Discontinued Operations
	Property & Casualty Insurance			Life Insurance			Total
Recorded asset at beginning of period	$	88,102		$	71,151		$	159,253
Underwriting costs deferred	51,373			1,376			52,749
Amortization of deferred policy acquisition costs	(49,639		)	(1,895		)	(51,534		)
Ending unamortized deferred policy acquisition costs	$	89,836		$	70,632		$	160,468
Impact of unrealized gains and losses on available-for-sale securities	—			7,274			7,274
Sale of discontinued operations	—			(77,906		)	(77,906		)
Recorded asset at March 31, 2018	$	89,836		$	—		$	89,836

XML

Summary of Investments (Tables)

3 Months Ended

Mar. 31, 2018

Investments [Abstract]

Fair Value of Investments

A reconciliation of the amortized cost (cost for equity securities) to fair value of investments in held-to-maturity and available-for-sale fixed maturity and equity securities, presented on a consolidated basis, including both continuing and discontinued operations as of March 31, 2018 and December 31, 2017, is as follows:

March 31, 2018
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities:
Bonds
Corporate bonds - financial services	$	150	$	—	$	—	$	150
Mortgage-backed securities	—		—		—		—
Total Held-to-Maturity Fixed Maturities	$	150	$	—	$	—	$	150
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	15,995	$	1	$	270	$	15,726
U.S. government agency	135,379		606		1,556		134,429
States, municipalities and political subdivisions
General obligations:
Midwest	105,376		1,019		1,060		105,335
Northeast	46,132		468		196		46,404
South	134,796		916		1,993		133,719
West	112,871		976		1,516		112,331
Special revenue:
Midwest	143,823		1,495		1,188		144,130
Northeast	64,020		481		1,443		63,058
South	250,757		1,707		4,404		248,060
West	149,928		1,294		2,757		148,465
Foreign bonds	10,826		156		—		10,982
Public utilities	48,024		249		632		47,641
Corporate bonds
Energy	22,516		157		228		22,445
Industrials	33,214		200		427		32,987
Consumer goods and services	31,044		217		291		30,970
Health care	12,170		93		37		12,226
Technology, media and telecommunications	15,447		74		265		15,256
Financial services	55,489		226		1,203		54,512
Mortgage-backed securities	8,763		71		152		8,682
Collateralized mortgage obligations
Government national mortgage association	74,000		280		2,086		72,194
Federal home loan mortgage corporation	56,578		73		1,822		54,829
Federal national mortgage association	47,104		142		1,100		46,146
Asset-backed securities	3,196		318		45		3,469
Total Available-for-Sale Fixed Maturities	$	1,577,448	$	11,219	$	24,671	$	1,563,996

December 31, 2017
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities:
Bonds
Corporate bonds - financial services	$	150	$	—	$	—	$	150
Mortgage-backed securities	34		—		—		34
Total Held-to-Maturity Fixed Maturities	$	184	$	—	$	—	$	184
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	17,073	$	4	$	186	$	16,891
U.S. government agency	121,574		1,311		717		122,168
States, municipalities and political subdivisions
General obligations:
Midwest	107,689		2,446		439		109,696
Northeast	47,477		1,174		10		48,641
South	139,870		2,462		813		141,519
West	111,123		2,351		463		113,011
Special revenue:
Midwest	155,475		3,620		351		158,744
Northeast	79,028		1,351		619		79,760
South	260,145		5,218		1,851		263,512
West	156,576		2,929		1,198		158,307
Foreign bonds	51,361		1,441		49		52,753
Public utilities	206,028		3,386		270		209,144
Corporate bonds
Energy	93,191		1,972		110		95,053
Industrials	218,067		3,881		241		221,707
Consumer goods and services	183,253		3,498		494		186,257
Health care	74,125		1,312		29		75,408
Technology, media and telecommunications	146,853		2,376		250		148,979
Financial services	277,824		5,769		442		283,151
Mortgage-backed securities	13,828		101		238		13,691
Collateralized mortgage obligations
Government national mortgage association	157,836		1,921		2,274		157,483
Federal home loan mortgage corporation	201,320		1,879		4,047		199,152
Federal national mortgage association	104,903		1,703		1,174		105,432
Asset-backed securities	4,282		362		8		4,636
Total Available-for-Sale Fixed Maturities	$	2,928,901	$	52,467	$	16,273	$	2,965,095
Equity securities:
Common stocks

Public utilities	$	6,394	$	16,075	$	30	$	22,439
Energy	6,514		8,171		120		14,565
Industrials	13,117		53,522		120		66,519
Consumer goods and services	10,110		15,742		164		25,688
Health care	7,763		32,340		—		40,103
Technology, media and telecommunications	6,067		11,556		115		17,508
Financial services	11,529		104,985		67		116,447
Nonredeemable preferred stocks	992		305		—		1,297
Total Available-for-Sale Equity Securities	$	62,486	$	242,696	$	616	$	304,566
Total Available-for-Sale Securities	$	2,991,387	$	295,163	$	16,889	$	3,269,661

The following table is a reconciliation of the amortized cost (cost for equity securities) to fair value of investments in held-to-maturity and available-for-sale fixed maturity and equity securities for continuing and discontinued operations by investment type at March 31, 2018 and December 31, 2017:

March 31, 2018
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities:
Continuing operations	$	150	$	—	$	—	$	150
Discontinued operations	—		—		—		—
Total Held-to-Maturity Fixed Maturities	$	150	$	—	$	—	150
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	$	1,577,448	$	11,219	$	24,671	$	1,563,996
Discontinued operations	—		—		—		—
Total Available-for-Sale Fixed Maturities	$	1,577,448	$	11,219	$	24,671	$	1,563,996

Note: The sale of our life insurance business was completed on March 30, 2018.

December 31, 2017
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
HELD-TO-MATURITY
Fixed maturities:
Continuing operations	$	150	$	—	$	—	$	150
Discontinued operations	34		—		—		34
Total Held-to-Maturity Fixed Maturities	$	184	$	—	$	—	$	184
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	$	1,516,610	$	27,412	$	8,952	$	1,535,070
Discontinued operations	1,412,291		25,055		7,321		1,430,025
Total Available-for-Sale Fixed Maturities	2,928,901		52,467		16,273		2,965,095
Equity securities:
Continuing operations	$	57,387	$	224,065	$	539	$	280,913
Discontinued operations	5,099		18,631		77		23,653
Total Available-for-Sale Equity Securities	62,486		242,696		616		304,566
Total Available-for-Sale Securities	$	2,991,387	$	295,163	$	16,889	$	3,269,661

Maturities

The amortized cost and fair value of held-to-maturity, available-for-sale and trading fixed maturity securities at March 31, 2018, by contractual maturity, are shown in the following tables. The table below includes investments from continuing operations. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset-backed securities, mortgage-backed securities and collateralized mortgage obligations may be subject to prepayment risk and are therefore not categorized by contractual maturity.

Maturities
	Held-To-Maturity				Available-For-Sale				Trading
March 31, 2018	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	—	$	—	$	48,086	$	48,368	$	2,359	$	2,629
Due after one year through five years	150		150		187,837		189,107		8,750		10,497
Due after five years through 10 years	—		—		447,086		447,598		1,100		965
Due after 10 years	—		—		704,798		693,603		1,020		1,288
Asset-backed securities	—		—		3,196		3,469		—		—
Mortgage-backed securities	—		—		8,763		8,682		—		—
Collateralized mortgage obligations	—		—		177,682		173,169		—		—
	$	150	$	150	$	1,577,448	$	1,563,996	$	13,229	$	15,379

Net Realized Investment Gains and Losses

A summary of the components of net realized investment gains (losses) is as follows:

	Three Months Ended March 31,
	2018			2017
Net realized investment gains (losses) from continuing operations:
Fixed maturities:
Available-for-sale	$	4		$	424
Trading securities
Change in fair value	(111		)	371
Sales	556			57
Equity securities
Change in fair value	(9,188		)	111
Sales	875			1,286
Total net realized investment gains (losses) from continuing operations	$	(7,864	)	$	2,249
Total net realized investment gains (losses) from discontinued operations	(1,057		)	1,705
Total net realized investment gains (losses)	$	(8,921	)	$	3,954

Proceeds and Gross Realized Gains and Losses

The proceeds and gross realized gains on the sale of available-for-sale fixed maturity securities from continuing operations are as follows:

	Three Months Ended March 31,
	2018		2017
Proceeds from sales	$	—	$	1,095
Gross realized gains	—		1,046
Gross realized losses	—		—

The proceeds and gross realized gains on the sale of available-for-sale fixed maturity securities from discontinued operations are as follows:

	Three Months Ended March 31,
	2018		2017
Proceeds from sales	$	—	$	3,964
Gross realized gains	—		1,254
Gross realized losses	—		(78		)

Note: The sale of our life insurance business was completed on March 30, 2018.

Unrealized Investment Appreciation

A summary of the changes in net unrealized investment appreciation during the reporting period is as follows:

	Three Months Ended March 31,
	2018			2017
Change in net unrealized investment appreciation
Available-for-sale fixed maturities	$	(59,126	)	$	7,043
Available-for-sale equity securities	—			5,795
Deferred policy acquisition costs	7,274			(1,277		)
Income tax effect	10,890			(4,046		)
Net unrealized investment depreciation of discontinued operations, sold	6,714			—
Cumulative change in accounting principles	(191,244		)	—
Total change in net unrealized investment appreciation, net of tax	$	(225,492	)	$	7,515

Investments in Unrealized Loss Position

March 31, 2018	Less than 12 months					12 months or longer					Total
Type of Investment	Number of Issues	Fair Value		Gross Unrealized Depreciation		Number of Issues	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	5	$	10,263	$	141	1	$	4,711	$	129	$	14,974	$	270
U.S. government agency	15	81,651		1,232		2	7,675		324		89,326		1,556
States, municipalities and political subdivisions
General obligations
Midwest	12	15,917		144		3	19,209		916		35,126		1,060
Northeast	4	13,214		94		1	3,546		102		16,760		196
South	18	38,686		466		11	28,716		1,527		67,402		1,993
West	13	31,285		406		8	25,021		1,110		56,306		1,516
Special revenue
Midwest	20	37,637		334		7	18,561		854		56,198		1,188
Northeast	4	12,466		162		11	27,722		1,281		40,188		1,443
South	24	50,787		866		27	67,940		3,538		118,727		4,404
West	16	30,075		331		21	52,243		2,426		82,318		2,757
Public utilities	13	33,171		632		—	—		—		33,171		632
Corporate bonds
Energy	5	10,567		228		—	—		—		10,567		228
Industrials	6	20,349		427		—	—		—		20,349		427
Consumer goods and services	5	15,823		291		—	—		—		15,823		291
Health care	2	3,694		37		—	—		—		3,694		37
Technology, media and telecommunications	3	9,745		265		—	—		—		9,745		265
Financial services	13	34,617		977		1	5,374		226		39,991		1,203
Mortgage-backed securities	16	2,828		70		10	2,123		82		4,951		152
Collateralized mortgage obligations
Government national mortgage association	20	47,898		1,351		6	12,087		735		59,985		2,086
Federal home loan mortgage corporation	13	35,124		1,050		4	12,590		772		47,714		1,822
Federal national mortgage association	13	33,515		722		1	6,963		378		40,478		1,100
Asset-backed securities	1	2,837		45		—	—		—		2,837		45
Total Available-for-Sale Fixed Maturities	241	$	572,149	$	10,271	114	$	294,481	$	14,400	$	866,630	$	24,671

December 31, 2017	Less than 12 months					12 months or longer					Total
Type of Investment	Number of Issues	Fair Value		Gross Unrealized Depreciation		Number of Issues	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	5	$	10,370	$	67	2	$	5,765	$	119	$	16,135	$	186
U.S. government agency	11	64,842		390		5	19,372		327		84,214		717
States, municipalities and political subdivisions
General obligations
Midwest	2	2,177		8		3	19,729		431		21,906		439
Northeast	—	—		—		1	3,644		10		3,644		10
South	3	7,959		32		11	29,545		781		37,504		813
West	2	5,944		18		8	25,755		445		31,699		463
Special revenue
Midwest	2	3,486		15		7	19,130		336		22,616		351
Northeast	1	4,471		37		11	28,476		582		32,947		619
South	8	7,749		107		27	69,917		1,744		77,666		1,851
West	3	5,424		16		22	56,753		1,182		62,177		1,198
Foreign bonds	1	857		49		—	—		—		857		49
Public utilities	8	19,186		79		5	8,446		191		27,632		270
Corporate bonds
Energy	1	2,236		13		1	1,606		97		3,842		110
Industrials	10	27,773		146		2	4,275		95		32,048		241
Consumer goods and services	14	32,781		248		3	6,813		246		39,594		494
Health care	4	9,947		29		—	—		—		9,947		29
Technology, media and telecommunications	12	35,319		122		3	10,413		128		45,732		250
Financial services	22	50,144		256		4	11,389		186		61,533		442
Mortgage-backed securities	10	2,458		18		10	6,641		220		9,099		238
Collateralized mortgage obligations
Government national mortgage association	20	49,764		629		17	46,969		1,645		96,733		2,274
Federal home loan mortgage corporation	11	37,543		577		20	75,679		3,470		113,222		4,047
Federal national mortgage association	11	31,958		342		11	20,123		832		52,081		1,174
Asset-backed securities	1	992		8		—	—		—		992		8
Total Available-for-Sale Fixed Maturities	162	$	413,380	$	3,206	173	$	470,440	$	13,067	$	883,820	$	16,273
Equity securities:
Common stocks
Public utilities	—	$	—	$	—	1	$	278	$	30	$	278	$	30
Energy	2	528		120		—	—		—		528		120
Industrials	1	99		13		5	193		107		292		120
Consumer goods and services	—	—		—		2	151		164		151		164
Technology, media and telecommunications	2	466		95		1	4		20		470		115
Financial services	2	193		55		1	9		12		202		67
Total Available-for-Sale Equity Securities	7	$	1,286	$	283	10	$	635	$	333	$	1,921	$	616
Total Available-for-Sale Securities	169	$	414,666	$	3,489	183	$	471,075	$	13,400	$	885,741	$	16,889

The tables on the following pages are a reconciliation for continuing and discontinued operations of our total fixed maturity and equity securities that were in an unrealized loss position at March 31, 2018 and December 31, 2017. The sale of our life insurance business was completed on March 30, 2018. The securities are presented by the length of time they have been continuously in an unrealized loss position:

March 31, 2018	Less than 12 months					12 months or longer					Total
Type of Investment	Number of Issues	Fair Value		Gross Unrealized Depreciation		Number of Issues	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	241	$	572,149	$	10,271	114	$	294,481	$	14,400	$	866,630	$	24,671
Discontinued operations	—	—		—		—	—		—		—		—
Total Available-for-Sale Fixed Maturities	241	$	572,149	$	10,271	114	$	294,481	$	14,400	$	866,630	$	24,671

Note: The sale of our life insurance business was completed on March 30, 2018.

December 31, 2017	Less than 12 months					12 months or longer					Total
Type of Investment	Number of Issues	Fair Value		Gross Unrealized Depreciation		Number of Issues	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	88	$	232,489	$	1,791	112	$	302,815	$	7,161	$	535,304	$	8,952
Discontinued operations	74	180,891		1,415		61	167,625		5,906		348,516		7,321
Total Available-for-Sale Fixed Maturities	162	$	413,380	$	3,206	173	$	470,440	$	13,067	$	883,820	$	16,273
Equity securities:
Continuing operations	5	$	1,129	$	236	6	$	385	$	303	$	1,514	$	539
Discontinued operations	2	157		47		4	250		30		407		77
Total Available-for-Sale Equity Securities	7	$	1,286	$	283	10	$	635	$	333	$	1,921	$	616
Total Available-for-Sale Securities	169	$	414,666	$	3,489	183	$	471,075	$	13,400	$	885,741	$	16,889

XML

Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2018

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 from continuing operations at March 31, 2018 and December 31, 2017 is as follows:

	March 31, 2018				December 31, 2017
	Fair Value		Carrying Value		Fair Value		Carrying Value
Assets
Investments
Fixed maturities:
Held-to-maturity securities	$	150	$	150	$	150	$	150
Available-for-sale securities	1,563,996		1,563,996		1,535,070		1,535,070
Trading securities	15,379		15,379		16,842		16,842
Equity securities	280,362		280,362		287,344		287,344
Other long-term investments	44,998		44,998		49,352		49,352
Short-term investments	175		175		175		175
Cash and cash equivalents	316,852		316,852		95,562		95,562
Corporate-owned life insurance	4,404		4,404		4,029		4,029

A summary of the carrying value and estimated fair value of our financial instruments from discontinued operations at March 31, 2018 and December 31, 2017 is as follows:

	March 31, 2018				December 31, 2017
	Fair Value		Carrying Value		Fair Value		Carrying Value
Assets
Investments
Fixed maturities:
Held-to-maturity securities	$	—	$	—	$	34	$	34
Available-for-sale securities	—		—		1,430,025		1,430,025
Equity securities:
Available-for-sale securities	—		—		23,653		23,653
Mortgage loans	—		—		3,594		3,435
Policy loans	—		—		5,815		5,815
Other long-term investments	—		—		16,437		16,437
Cash and cash equivalents	—		—		15,851		15,851
Liabilities
Policy reserves
Annuity (accumulations) (1)	$	—	$	—	$	591,702	$	611,866
Annuity (benefit payments)	—		—		147,038		93,560

Note: The sale of our life insurance business was completed on March 30, 2018.

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. The table includes financial instruments from both continuing and discontinued operations at March 31, 2018 and December 31, 2017:

March 31, 2018			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	15,726	$	—	$	15,726	$	—
U.S. government agency	134,429		—		134,429		—
States, municipalities and political subdivisions
General obligations
Midwest	105,335		—		105,335		—
Northeast	46,404		—		46,404		—
South	133,719		—		133,719		—
West	112,331		—		112,331		—
Special revenue
Midwest	144,130		—		144,130		—
Northeast	63,058		—		63,058		—
South	248,060		—		248,060		—
West	148,465		—		148,465		—
Foreign bonds	10,982		—		10,982		—
Public utilities	47,641		—		47,641		—
Corporate bonds
Energy	22,445		—		22,445		—
Industrials	32,987		—		32,987		—
Consumer goods and services	30,970		—		30,970		—
Health care	12,226		—		12,226		—
Technology, media and telecommunications	15,256		—		15,256		—
Financial services	54,512		—		54,412		100
Mortgage-backed securities	8,682		—		8,682		—
Collateralized mortgage obligations
Government national mortgage association	72,194		—		72,194		—
Federal home loan mortgage corporation	54,829		—		54,829		—
Federal national mortgage association	46,146		—		46,146		—
Asset-backed securities	3,469		—		2,837		632
Total Available-for-Sale Fixed Maturities	$	1,563,996	$	—	$	1,563,264	$	732
TRADING
Fixed maturities:
Bonds
Corporate bonds
Industrials	$	1,968	$	—	$	1,968	$	—
Consumer goods and services	1,846		—		1,846		—
Health care	3,739		—		3,739		—

Technology, media and telecommunications	2,212		—		2,212		—
Financial services	2,133		—		2,133		—
Redeemable preferred stocks	3,481		3,481		—		—
Total Trading Securities	$	15,379	$	3,481	$	11,898	$	—
EQUITY SECURITIES
Common stocks
Public utilities	$	15,095	$	15,095	$	—	$	—
Energy	12,782		12,782		—		—
Industrials	58,724		58,724		—		—
Consumer goods and services	24,414		24,414		—		—
Health care	39,025		39,025		—		—
Technology, media and telecommunications	14,410		14,410		—		—
Financial services	111,761		111,761		—		—
Nonredeemable preferred stocks	4,151		3,331		—		820
Total Equity Securities	$	280,362	$	279,542	$	—	$	820
Short-Term Investments	$	175	$	175	$	—	$	—
Money Market Accounts	$	285,804	$	285,804	$	—	$	—
Corporate-Owned Life Insurance	$	4,404	$	—	$	4,404	$	—
Total Assets Measured at Fair Value	$	2,150,120	$	569,002	$	1,579,566	$	1,552

December 31, 2017			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	16,891	$	—	$	16,891	$	—
U.S. government agency	122,168		—		122,168		—
States, municipalities and political subdivisions
General obligations
Midwest	109,696		—		109,696		—
Northeast	48,641		—		48,641		—
South	141,519		—		141,519		—
West	113,011		—		113,011		—
Special revenue
Midwest	158,744		—		158,744		—
Northeast	79,760		—		79,760		—
South	263,512		—		263,512		—
West	158,307		—		158,307		—
Foreign bonds	52,753		—		52,753		—
Public utilities	209,144		—		209,144		—
Corporate bonds
Energy	95,053		—		95,053		—
Industrials	221,707		—		221,707		—
Consumer goods and services	186,257		—		185,589		668
Health care	75,408		—		75,408		—
Technology, media and telecommunications	148,979		—		148,979		—
Financial services	283,151		—		275,474		7,677
Mortgage-backed securities	13,691		—		13,691		—
Collateralized mortgage obligations
Government national mortgage association	157,483		—		157,483		—
Federal home loan mortgage corporation	199,152		—		199,152		—
Federal national mortgage association	105,432		—		105,432		—
Asset-backed securities	4,636		—		3,989		647
Total Available-for-Sale Fixed Maturities	$	2,965,095	$	—	$	2,956,103	$	8,992
Equity securities:
Common stocks
Public utilities	$	22,439	$	22,439	$	—	$	—
Energy	14,565		14,565		—		—
Industrials	66,519		66,517		2		—
Consumer goods and services	25,688		25,688		—		—
Health care	40,103		40,103		—		—
Technology, media and telecommunications	17,508		17,508		—		—
Financial services	116,447		116,447		—		—

Nonredeemable preferred stocks	1,297		415		—		882
Total Available-for-Sale Equity Securities	$	304,566	$	303,682	$	2	$	882
Total Available-for-Sale Securities	$	3,269,661	$	303,682	$	2,956,105	$	9,874
TRADING
Fixed maturities:
Bonds
Corporate bonds
Industrials	$	2,220	$	—	$	2,220	$	—
Consumer goods and services	1,535		—		1,535		—
Health care	3,741		—		3,741		—
Technology, media and telecommunications	1,221		—		1,221		—
Financial services	5,566		—		5,566		—
Redeemable preferred stocks	2,559		2,559		—		—
Equity securities:
Public utilities	874		874		—		—
Energy	190		190		—		—
Industrials	989		989		—		—
Consumer goods and services	1,314		1,314		—		—
Health care	325		325		—		—
Financial services	198		198		—		—
Nonredeemable preferred stocks	2,541		2,541		—		—
Total Trading Securities	$	23,273	$	8,990	$	14,283	$	—
Short-Term Investments	$	175	$	175	$	—	$	—
Money Market Accounts	$	16,824	$	16,824	$	—	$	—
Corporate-Owned Life Insurance	$	4,029	$	—	$	4,029	$	—
Total Assets Measured at Fair Value	$	3,313,962	$	329,671	$	2,974,417	$	9,874

The following tables are a reconciliation for both continuing and discontinued operations of the presentation of the categorization for our financial instruments measured at fair value on a recurring basis at March 31, 2018 and December 31, 2017:

March 31, 2018			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	$	1,563,996	$	—	$	1,563,264	$	732
Discontinued operations	—		—		—		—
Total Available-for-Sale Fixed Maturities	$	1,563,996	$	—	$	1,563,264	$	732
TRADING
Fixed maturities:
Continuing operations	$	15,379	$	3,481	$	11,898	$	—
Discontinued operations	—		—		—		—
Total Trading Securities	$	15,379	$	3,481	$	11,898	$	—
EQUITY SECURITIES
Continuing operations	$	280,362	$	279,542	$	—	$	820
Discontinued operations	—		—		—		—
Total Equity Securities	$	280,362	$	279,542	$	—	$	820
SHORT-TERM INVESTMENTS
Continuing operations	$	175	$	175	$	—	$	—
Discontinued operations	—		—		—		$	—
Short-Term Investments	$	175	$	175	$	—	$	—
MONEY MARKET ACCOUNTS
Continuing operations	$	285,804	$	285,804	$	—	$	—
Discontinued operations	—		—		—		—
Money Market Accounts	$	285,804	$	285,804	$	—	$	—
CORPORATE-OWNED LIFE INSURANCE
Continuing operations	$	4,404	$	—	$	4,404	$	—
Discontinued operations	—		—		—		—
Corporate-Owned Life Insurance	$	4,404	$	—	$	4,404	$	—
Total Assets Measured at Fair Value	$	2,150,120	$	569,002	$	1,579,566	$	1,552

Note: The sale of our life insurance business was completed on March 30, 2018.

December 31, 2017			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	$	1,535,070	$	—	$	1,534,323	$	747
Discontinued operations	1,430,025		—		1,421,780		8,245
Total Available-for-Sale Fixed Maturities	$	2,965,095	$	—	$	2,956,103	$	8,992
Equity securities:
Continuing operations	$	280,913	$	280,031	$	—	$	882
Discontinued operations	23,653		23,651		2		—
Total Equity Securities	$	304,566	$	303,682	$	2	$	882
Total Available-for-Sale Securities	$	3,269,661	$	303,682	$	2,956,105	$	9,874
TRADING
Fixed maturities:
Continuing operations	$	16,842	$	2,559	$	14,283	$	—
Discontinued operations	—		—		—		—
Equity securities:
Continuing operations	6,431		6,431		—		—
Discontinued operations	—		—		—		—
Total Trading Securities	$	23,273	$	8,990	$	14,283	$	—
SHORT-TERM INVESTMENTS
Continuing operations	$	175	$	175	$	—	$	—
Discontinued operations	—		—		—		—
Short-Term Investments	$	175	$	175	$	—	$	—
MONEY MARKET ACCOUNTS
Continuing operations	$	6,147	$	6,147	$	—	$	—
Discontinued operations	10,677		10,677		—		—
Money Market Accounts	$	16,824	$	16,824	$	—	$	—
CORPORATE-OWNED LIFE INSURANCE
Continuing operations	$	4,029	$	—	$	4,029	$	—
Discontinued operations	—		—		—		—
Corporate-Owned Life Insurance	$	4,029	$	—	$	4,029	$	—
Total Assets Measured at Fair Value	$	3,313,962	$	329,671	$	2,974,417	$	9,874

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 from continuing operations for the three-month period ended March 31, 2018:

	States, municipalities and political subdivisions		Corporate bonds		Asset-backed securities			Equities			Total
Balance at January 1, 2018	$	—	$	100	$	647		$	882		$	1,629
Net unrealized gains (losses)(1)	—				(15		)	(62		)	(77		)
Balance at March 31, 2018	$	—	$	100	$	632		$	820		$	1,552

(1) Net unrealized gains (losses) are recorded as a component of comprehensive income.

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Reserves for Losses and Loss Settlement Expenses (Tables)

3 Months Ended

Mar. 31, 2018

Insurance Loss Reserves [Abstract]

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

The following table provides an analysis of changes in our property and casualty losses and loss settlement expense reserves at March 31, 2018 and December 31, 2017 (net of reinsurance amounts):

	March 31, 2018			December 31, 2017
Gross liability for losses and loss settlement expenses at beginning of year	$	1,224,183		$	1,123,896
Ceded losses and loss settlement expenses	(59,871		)	(59,794		)
Net liability for losses and loss settlement expenses at beginning of year	$	1,164,312		$	1,064,102
Losses and loss settlement expenses incurred for claims occurring during
Current year	$	182,783		$	779,966
Prior years	(38,055		)	(54,253		)
Total incurred	$	144,728		$	725,713
Losses and loss settlement expense payments for claims occurring during
Current year	$	44,734		$	311,972
Prior years	104,319			313,531
Total paid	$	149,053		$	625,503
Net liability for losses and loss settlement expenses at end of year	$	1,159,987		$	1,164,312
Ceded loss and loss settlement expenses	59,994			59,871
Gross liability for losses and loss settlement expenses at end of period	$	1,219,981		$	1,224,183

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Employee Benefits (Tables)

3 Months Ended

Mar. 31, 2018

Retirement Benefits [Abstract]

Net Periodic Benefit Cost

The components of the net periodic benefit cost for our pension and postretirement benefit plans are as follows:

	Pension Plan						Postretirement Benefit Plan
Three Months Ended March 31,	2018			2017			2018			2017
Net periodic benefit cost
Service cost	$	2,175		$	1,714		$	749		$	505
Interest cost	1,875			1,765			502			482
Expected return on plan assets	(2,625		)	(2,412		)	—			—
Amortization of prior service credit	—			—			(1,352		)	(1,352		)
Amortization of net loss	1,071			890			589			461
Net periodic benefit cost	$	2,496		$	1,957		$	488		$	96

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Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2018

Share-based Compensation [Abstract]

Activity in Stock Award Plans

The activity in the Stock Plan is displayed in the following table:

Authorized Shares Available for Future Award Grants	Three Months Ended March 31, 2018		From Inception to March 31, 2018
Beginning balance	996,828		1,900,000
Additional shares authorized	—		1,500,000
Number of awards granted	(153,209	)	(3,025,180	)
Number of awards forfeited or expired	12,162		480,961
Ending balance	855,781		855,781
Number of option awards exercised	89,057		1,174,952
Number of unrestricted stock awards granted	—		8,470
Number of restricted stock awards vested	19,658		57,826

The activity in the Director Plan is displayed in the following table:

Authorized Shares Available for Future Award Grants	Three Months Ended March 31, 2018	From Inception to March 31, 2018
Beginning balance	61,813	300,000
Number of awards granted	—	(262,190	)
Number of awards forfeited or expired	—	24,003
Ending balance	61,813	61,813
Number of option awards exercised	7,599	96,880
Number of restricted stock awards vested	—	54,272

Remaining Stock-Based Compensation Expense

We expect this compensation to be recognized over the remainder of 2018 and subsequent years according to the table below, except with respect to awards that are accelerated by the Board of Directors, in which case we will recognize any remaining compensation expense in the period in which the awards are accelerated.

2018	$	3,614
2019	3,856
2020	2,397
2021	552
2022	39
Total	$	10,458

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Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Components of Basic and Diluted Earnings Per Share

The components of basic and diluted earnings per share were as follows for the three-month periods ended March 31, 2018 and 2017:

	Three Months Ended March 31,
(In Thousands, Except Share Data)	2018						2017
	Basic			Diluted			Basic		Diluted
Net income from continuing operations	$	20,364		$	20,364		$	18,584	$	18,584
Weighted-average common shares outstanding	24,915,772			24,915,772			25,443,101		25,443,101
Add dilutive effect of restricted stock unit awards	—			290,083			—		248,717
Add dilutive effect of stock options	—			252,235			—		162,363
Weighted-average common shares outstanding	24,915,772			25,458,090			25,443,101		25,854,181
Earnings per common share from continuing operations	$	0.82		$	0.80		$	0.73	$	0.72
Earnings per common share from discontinued operations	(0.08		)	(0.07		)	0.05		0.05
Gain on sale of discontinued operations, net of taxes	1.10			1.07			—		—
Earnings per common share	$	1.84		$	1.80		$	0.78	$	0.77
Awards excluded from diluted earnings per share calculation(1)	—			—			—		—

(1) Outstanding awards that are not "in-the-money" are excluded from the diluted earnings per share calculation because the effect of including them would have been anti-dilutive.

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Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2018

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table shows the changes in the components of our accumulated other comprehensive income (loss), net of tax, for the three-month period ended March 31, 2018:

				Liability for
	Net unrealized			underfunded
	appreciation			employee
	on investments			benefit costs(1)			Total
Balance as of January 1, 2018	$	214,865		$	(46,551	)	$	168,314
Cumulative effect of change in accounting principle	(191,244		)	—			(191,244		)
Change in accumulated other comprehensive income before reclassifications	(34,219		)	—			(34,219		)
Reclassification adjustments from accumulated other comprehensive income (loss)	(29		)	1,311			1,282
Balance as of March 31, 2018	$	(10,627	)	$	(45,240	)	$	(55,867	)

(1) The preparation of financial statements in conformity with GAAP requires us to make various estimates and assumptions that affect the reporting of net periodic benefit cost, plan assets and plan obligations for each plan at the date of the financial statements. Actual results could differ from these estimates. One significant estimate relates to the calculation of the benefit obligation for each plan. We annually establish the discount rate, which is an estimate of the interest rate at which these benefits could be effectively settled, that is used to determine the present value of the respective plan's benefit obligations as of December 31.

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Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

The major assets and liability categories were as follows as of the dates indicated:

Discontinued Operations
Balance Sheets
(In Thousands, Except Share Data)	March 31, 2018		December 31, 2017
	(unaudited)
Assets
Investments
Fixed maturities
Held-to-maturity, at amortized cost (fair value $0 in 2018 and $34 in 2017)	$	—	$	34
Available-for-sale, at fair value (amortized cost $0 in 2018 and $1,412,291 in 2017)	—		1,430,025
Equity Securities at fair value (cost $0 in 2018 and $5,099 in 2017)	—		23,653
Mortgage loans	—		3,435
Policy loans	—		5,815
Other long-term investments	—		16,437
	—		1,479,399
Cash and cash equivalents	—		15,851
Deferred policy acquisition costs	—		71,151
Other assets	—		19,733
Total assets held for sale	$	—	$	1,586,134
Liabilities
Future policy benefits and losses	$	—	$	1,320,401
Deferred income taxes	—		18,716
Accrued expenses and other liabilities	—		8,018
Total liabilities held for sale	$	—	$	1,347,135

Summary operating results of discontinued operations were as follows for the periods indicated:

Discontinued Operations
Statements of Income (Unaudited)
	Three Months Ended March 31,
(In Thousands, Except Share Data)	2018			2017
Revenues
Net premiums earned	$	13,003		$	17,428
Investment income, net of investment expenses	12,663			12,450
Net realized investment gains (losses)	(1,057		)	1,705
Other income	146			198
Total revenues	$	24,755		$	31,781
Benefits, Losses and Expenses
Losses and loss settlement expenses	$	10,823		$	11,071
Increase in liability for future policy benefits	5,023			8,579
Amortization of deferred policy acquisition costs	1,895			1,673
Other underwriting expenses	3,864			3,631
Interest on policyholders’ accounts	4,499			4,744
Total benefits, losses and expenses	$	26,104		$	29,698
Income (loss) from discontinued operations before income taxes	$	(1,349	)	$	2,083
Federal income tax expense	563			731
Net income (loss) from discontinued operations	$	(1,912	)	$	1,352
Earnings per common share from discontinued operations:
Basic	$	(0.08	)	$	0.05
Diluted	(0.07		)	0.05

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Nature of Operations and Basis of Presentation (Narrative) (Details)		3 Months Ended
	Sep. 17, 2017 segment	Mar. 31, 2018 USD ($) segment state	Mar. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)
Segment Reporting Information [Line Items]
Number of business segments | segment	2	1
Payment for income taxes		$ 19,000	$ 9,000
Federal tax refund received		1,503,000	0
Interest payments		0	0
Decrease in DAC asset related to assumed realization of unrealized gains (losses)		0		$ 6,294,000
Federal income tax expense (benefit)		1,209,000	4,422,000
Liability for unrecognized tax benefits		0		0
Accumulated other comprehensive income, net of tax		(55,867,000)		168,314,000
Retained earnings		$ 832,031,000		608,700,000
Future minimum lease payments due				$ 22,500,000
Future minimum payments due as a percentage of total assets				1.00%
Property and Casualty Insurance
Segment Reporting Information [Line Items]
Number of states in which we are licensed as insurer | state		46
Continuing and Discontinuing Operations
Segment Reporting Information [Line Items]
Federal income tax expense (benefit)		$ 9,316,000	$ 5,153,000
Accounting Standards Update 2016-01
Segment Reporting Information [Line Items]
Accumulated other comprehensive income, net of tax				$ (191,200,000)
Net realized investment losses		$ 8,100,000
Retained earnings				$ 191,200,000

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Nature of Operations and Basis of Presentation (Deferred Policy Acquisition Costs) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Recorded asset at beginning of period	$ 88,102
Impact of unrealized gains and losses on available-for-sale securities	7,274	$ (1,277)
Recorded asset at end of period	89,836
Property and Casualty Insurance
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Recorded asset at beginning of period	88,102
Underwriting costs deferred	51,373
Amortization of deferred policy acquisition costs	(49,639)
Ending unamortized deferred policy acquisition costs	89,836
Impact of unrealized gains and losses on available-for-sale securities	0
Sale of discontinued operations	0
Recorded asset at end of period	89,836
Discontinued Operations | Life Insurance
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Recorded asset at beginning of period	71,151
Underwriting costs deferred	1,376
Amortization of deferred policy acquisition costs	(1,895)
Ending unamortized deferred policy acquisition costs	70,632
Impact of unrealized gains and losses on available-for-sale securities	7,274
Sale of discontinued operations	(77,906)
Recorded asset at end of period	0
Continuing and Discontinuing Operations
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Recorded asset at beginning of period	159,253
Underwriting costs deferred	52,749
Amortization of deferred policy acquisition costs	(51,534)
Ending unamortized deferred policy acquisition costs	160,468
Impact of unrealized gains and losses on available-for-sale securities	7,274
Sale of discontinued operations	(77,906)
Recorded asset at end of period	$ 89,836

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Summary of Investments (Fair Value of Investments) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
HELD-TO-MATURITY
Amortized Cost	$ 150	$ 150
Gross Unrealized Appreciation	0	0
Gross Unrealized Depreciation	0	0
Fair Value	150	150
Fixed maturities:
Amortized Cost	1,577,448	1,516,610
Gross Unrealized Appreciation	11,219	27,412
Gross Unrealized Depreciation	24,671	8,952
Fair Value	1,563,996	1,535,070
Equity securities:
Cost or Amortized Cost		57,387
Gross Unrealized Appreciation		224,065
Gross Unrealized Depreciation		539
Fair Value		280,913
Discontinued Operations
HELD-TO-MATURITY
Amortized Cost	0	34
Gross Unrealized Appreciation	0	0
Gross Unrealized Depreciation	0	0
Fair Value	0	34
Fixed maturities:
Amortized Cost	0	1,412,291
Gross Unrealized Appreciation	0	25,055
Gross Unrealized Depreciation	0	7,321
Fair Value	0	1,430,025
Equity securities:
Cost or Amortized Cost		5,099
Gross Unrealized Appreciation		18,631
Gross Unrealized Depreciation		77
Fair Value		23,653
Continuing and Discontinuing Operations
HELD-TO-MATURITY
Amortized Cost	150	184
Gross Unrealized Appreciation	0	0
Gross Unrealized Depreciation	0	0
Fair Value	150	184
Fixed maturities:
Amortized Cost	1,577,448	2,928,901
Gross Unrealized Appreciation	11,219	52,467
Gross Unrealized Depreciation	24,671	16,273
Fair Value	1,563,996	2,965,095
Equity securities:
Cost or Amortized Cost		62,486
Gross Unrealized Appreciation		242,696
Gross Unrealized Depreciation		616
Fair Value		304,566
Amortized Cost		2,991,387
Gross Unrealized Appreciation		295,163
Gross Unrealized Depreciation		16,889
Available-for-sale securities, fair value		3,269,661
Corporate bonds | Energy | Continuing and Discontinuing Operations
Fixed maturities:
Amortized Cost	22,516	93,191
Gross Unrealized Appreciation	157	1,972
Gross Unrealized Depreciation	228	110
Fair Value	22,445	95,053
Corporate bonds | Industrials | Continuing and Discontinuing Operations
Fixed maturities:
Amortized Cost	33,214	218,067
Gross Unrealized Appreciation	200	3,881
Gross Unrealized Depreciation	427	241
Fair Value	32,987	221,707
Corporate bonds | Consumer goods and services | Continuing and Discontinuing Operations
Fixed maturities:
Amortized Cost	31,044	183,253
Gross Unrealized Appreciation	217	3,498
Gross Unrealized Depreciation	291	494
Fair Value	30,970	186,257
Corporate bonds | Health care | Continuing and Discontinuing Operations
Fixed maturities:
Amortized Cost	12,170	74,125
Gross Unrealized Appreciation	93	1,312
Gross Unrealized Depreciation	37	29
Fair Value	12,226	75,408
Corporate bonds | Technology, media and telecommunications | Continuing and Discontinuing Operations
Fixed maturities:
Amortized Cost	15,447	146,853
Gross Unrealized Appreciation	74	2,376
Gross Unrealized Depreciation	265	250
Fair Value	15,256	148,979
Corporate bonds | Financial services | Continuing and Discontinuing Operations
HELD-TO-MATURITY
Amortized Cost	150	150
Gross Unrealized Appreciation	0	0
Gross Unrealized Depreciation	0	0
Fair Value	150	150
Fixed maturities:
Amortized Cost	55,489	277,824
Gross Unrealized Appreciation	226	5,769
Gross Unrealized Depreciation	1,203	442
Fair Value	54,512	283,151
Mortgage-backed securities | Continuing and Discontinuing Operations
HELD-TO-MATURITY
Amortized Cost	0	34
Gross Unrealized Appreciation	0	0
Gross Unrealized Depreciation	0	0
Fair Value	0	34
Fixed maturities:
Amortized Cost	8,763	13,828
Gross Unrealized Appreciation	71	101
Gross Unrealized Depreciation	152	238
Fair Value	8,682	13,691
U.S. Treasury | Continuing and Discontinuing Operations
Fixed maturities:
Amortized Cost	15,995	17,073
Gross Unrealized Appreciation	1	4
Gross Unrealized Depreciation	270	186
Fair Value	15,726	16,891
U.S. government agency | Continuing and Discontinuing Operations
Fixed maturities:
Amortized Cost	135,379	121,574
Gross Unrealized Appreciation	606	1,311
Gross Unrealized Depreciation	1,556	717
Fair Value	134,429	122,168
States, municipalities and political subdivisions | General obligations: | Midwest | Continuing and Discontinuing Operations
Fixed maturities:
Amortized Cost	105,376	107,689
Gross Unrealized Appreciation	1,019	2,446
Gross Unrealized Depreciation	1,060	439
Fair Value	105,335	109,696
States, municipalities and political subdivisions | General obligations: | Northeast | Continuing and Discontinuing Operations
Fixed maturities:
Amortized Cost	46,132	47,477
Gross Unrealized Appreciation	468	1,174
Gross Unrealized Depreciation	196	10
Fair Value	46,404	48,641
States, municipalities and political subdivisions | General obligations: | South | Continuing and Discontinuing Operations
Fixed maturities:
Amortized Cost	134,796	139,870
Gross Unrealized Appreciation	916	2,462
Gross Unrealized Depreciation	1,993	813
Fair Value	133,719	141,519
States, municipalities and political subdivisions | General obligations: | West | Continuing and Discontinuing Operations
Fixed maturities:
Amortized Cost	112,871	111,123
Gross Unrealized Appreciation	976	2,351
Gross Unrealized Depreciation	1,516	463
Fair Value	112,331	113,011
States, municipalities and political subdivisions | Special revenue: | Midwest | Continuing and Discontinuing Operations
Fixed maturities:
Amortized Cost	143,823	155,475
Gross Unrealized Appreciation	1,495	3,620
Gross Unrealized Depreciation	1,188	351
Fair Value	144,130	158,744
States, municipalities and political subdivisions | Special revenue: | Northeast | Continuing and Discontinuing Operations
Fixed maturities:
Amortized Cost	64,020	79,028
Gross Unrealized Appreciation	481	1,351
Gross Unrealized Depreciation	1,443	619
Fair Value	63,058	79,760
States, municipalities and political subdivisions | Special revenue: | South | Continuing and Discontinuing Operations
Fixed maturities:
Amortized Cost	250,757	260,145
Gross Unrealized Appreciation	1,707	5,218
Gross Unrealized Depreciation	4,404	1,851
Fair Value	248,060	263,512
States, municipalities and political subdivisions | Special revenue: | West | Continuing and Discontinuing Operations
Fixed maturities:
Amortized Cost	149,928	156,576
Gross Unrealized Appreciation	1,294	2,929
Gross Unrealized Depreciation	2,757	1,198
Fair Value	148,465	158,307
Foreign bonds | Continuing and Discontinuing Operations
Fixed maturities:
Amortized Cost	10,826	51,361
Gross Unrealized Appreciation	156	1,441
Gross Unrealized Depreciation	0	49
Fair Value	10,982	52,753
Public utilities | Continuing and Discontinuing Operations
Fixed maturities:
Amortized Cost	48,024	206,028
Gross Unrealized Appreciation	249	3,386
Gross Unrealized Depreciation	632	270
Fair Value	47,641	209,144
Government national mortgage association | Continuing and Discontinuing Operations
Fixed maturities:
Amortized Cost	74,000	157,836
Gross Unrealized Appreciation	280	1,921
Gross Unrealized Depreciation	2,086	2,274
Fair Value	72,194	157,483
Federal home loan mortgage corporation | Continuing and Discontinuing Operations
Fixed maturities:
Amortized Cost	56,578	201,320
Gross Unrealized Appreciation	73	1,879
Gross Unrealized Depreciation	1,822	4,047
Fair Value	54,829	199,152
Federal national mortgage association | Continuing and Discontinuing Operations
Fixed maturities:
Amortized Cost	47,104	104,903
Gross Unrealized Appreciation	142	1,703
Gross Unrealized Depreciation	1,100	1,174
Fair Value	46,146	105,432
Asset-backed securities | Continuing and Discontinuing Operations
Fixed maturities:
Amortized Cost	3,196	4,282
Gross Unrealized Appreciation	318	362
Gross Unrealized Depreciation	45	8
Fair Value	$ 3,469	4,636
Common stocks | Public utilities | Continuing and Discontinuing Operations
Equity securities:
Cost or Amortized Cost		6,394
Gross Unrealized Appreciation		16,075
Gross Unrealized Depreciation		30
Fair Value		22,439
Common stocks | Energy | Continuing and Discontinuing Operations
Equity securities:
Cost or Amortized Cost		6,514
Gross Unrealized Appreciation		8,171
Gross Unrealized Depreciation		120
Fair Value		14,565
Common stocks | Industrials | Continuing and Discontinuing Operations
Equity securities:
Cost or Amortized Cost		13,117
Gross Unrealized Appreciation		53,522
Gross Unrealized Depreciation		120
Fair Value		66,519
Common stocks | Consumer goods and services | Continuing and Discontinuing Operations
Equity securities:
Cost or Amortized Cost		10,110
Gross Unrealized Appreciation		15,742
Gross Unrealized Depreciation		164
Fair Value		25,688
Common stocks | Health care | Continuing and Discontinuing Operations
Equity securities:
Cost or Amortized Cost		7,763
Gross Unrealized Appreciation		32,340
Gross Unrealized Depreciation		0
Fair Value		40,103
Common stocks | Technology, media and telecommunications | Continuing and Discontinuing Operations
Equity securities:
Cost or Amortized Cost		6,067
Gross Unrealized Appreciation		11,556
Gross Unrealized Depreciation		115
Fair Value		17,508
Common stocks | Financial services | Continuing and Discontinuing Operations
Equity securities:
Cost or Amortized Cost		11,529
Gross Unrealized Appreciation		104,985
Gross Unrealized Depreciation		67
Fair Value		116,447
Nonredeemable preferred stocks | Continuing and Discontinuing Operations
Equity securities:
Cost or Amortized Cost		992
Gross Unrealized Appreciation		305
Gross Unrealized Depreciation		0
Fair Value		$ 1,297

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Summary of Investments (Maturities) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Held-To-Maturity, Amortized Cost
Due in one year or less	$ 0
Due after one year through five years	150
Due after five years through 10 years	0
Due after 10 years	0
Amortized Cost	150	$ 150
Held-To-Maturity, Fair Value
Due in one year or less	0
Due after one year through five years	150
Due after five years through 10 years	0
Due after 10 years	0
Fair Value	150	150
Available-For-Sale, Amortized Cost
Due in one year or less	48,086
Due after one year through five years	187,837
Due after five years through 10 years	447,086
Due after 10 years	704,798
Amortized Cost	1,577,448	1,516,610
Available-For-Sale, Fair Value
Due in one year or less	48,368
Due after one year through five years	189,107
Due after five years through 10 years	447,598
Due after 10 years	693,603
Fair Value	1,563,996	1,535,070
Trading, Amortized Cost
Due in one year or less	2,359
Due after one year through five years	8,750
Due after five years through 10 years	1,100
Due after 10 years	1,020
Amortized Cost	13,229	14,582
Trading, Fair Value
Due in one year or less	2,629
Due after one year through five years	10,497
Due after five years through 10 years	965
Due after 10 years	1,288
Fair Value	15,379	$ 16,842
Asset-backed securities
Held-To-Maturity, Amortized Cost
Securities not categorized by contractual maturity	0
Held-To-Maturity, Fair Value
Securities not categorized by contractual maturity	0
Available-For-Sale, Amortized Cost
Securities not categorized by contractual maturity	3,196
Available-For-Sale, Fair Value
Securities not categorized by contractual maturity	3,469
Mortgage-backed securities
Held-To-Maturity, Amortized Cost
Securities not categorized by contractual maturity	0
Held-To-Maturity, Fair Value
Securities not categorized by contractual maturity	0
Available-For-Sale, Amortized Cost
Securities not categorized by contractual maturity	8,763
Available-For-Sale, Fair Value
Securities not categorized by contractual maturity	8,682
Collateralized mortgage obligations
Held-To-Maturity, Amortized Cost
Securities not categorized by contractual maturity	0
Held-To-Maturity, Fair Value
Securities not categorized by contractual maturity	0
Available-For-Sale, Amortized Cost
Securities not categorized by contractual maturity	177,682
Available-For-Sale, Fair Value
Securities not categorized by contractual maturity	$ 173,169

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Summary of Investments (Net Realized Investment Gains and Losses and Proceeds) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Gain (Loss) on Investments [Line Items]
Net realized investment gains (losses)	$ (7,864)	$ 2,249
Available-for-sale Securities [Abstract]
Proceeds from sales	0	1,095
Gross realized gains	0	1,046
Gross realized losses	0	0
Discontinued Operations
Gain (Loss) on Investments [Line Items]
Net realized investment gains (losses)	(1,057)	1,705
Available-for-sale Securities [Abstract]
Proceeds from sales	0	3,964
Gross realized gains	0	1,254
Gross realized losses	0	(78)
Continuing and Discontinuing Operations
Gain (Loss) on Investments [Line Items]
Net realized investment gains (losses)	(8,921)	3,954
Fixed maturities: | Available-for-sale
Gain (Loss) on Investments [Line Items]
Net realized investment gains (losses)	4	424
Fixed maturities: | Change in fair value
Gain (Loss) on Investments [Line Items]
Net realized investment gains (losses)	(111)	371
Fixed maturities: | Sales
Gain (Loss) on Investments [Line Items]
Net realized investment gains (losses)	556	57
Equity securities: | Change in fair value
Gain (Loss) on Investments [Line Items]
Net realized investment gains (losses)	(9,188)	111
Equity securities: | Sales
Gain (Loss) on Investments [Line Items]
Net realized investment gains (losses)	$ 875	$ 1,286

XML

Summary of Investments (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Investments [Abstract]
Sale of held-to-maturity securities	$ 0	$ 0
Trading securities	15,379,000		$ 16,842,000
Remaining potential contractual obligation	$ 1,499,000

XML

Summary of Investments (Unrealized Appreciation) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
Change in net unrealized investment appreciation
Available-for-sale fixed maturities	$ (59,126)	$ 7,043
Available-for-sale equity securities	0	5,795
Deferred policy acquisition costs	7,274	(1,277)
Income tax effect	10,890	(4,046)
Net unrealized investment depreciation of discontinued operations, sold	6,714	0
Cumulative change in accounting principles			$ (191,244)	$ 0
Total change in net unrealized investment appreciation, net of tax	$ (225,492)	$ 7,515

XML

Summary of Investments (Investments in Unrealized Loss Position) (Details) $ in Thousands	Mar. 31, 2018 USD ($) issue	Dec. 31, 2017 USD ($) issue
Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue		169
12 months or longer | issue		183
Fair Value
Less than 12 months		$ 414,666
12 months or longer		471,075
Total		885,741
Gross Unrealized Depreciation
Less than 12 months		3,489
12 months or longer		13,400
Total		$ 16,889
U.S. Treasury | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	5	5
12 months or longer | issue	1	2
Fair Value
Less than 12 months	$ 10,263	$ 10,370
12 months or longer	4,711	5,765
Total	14,974	16,135
Gross Unrealized Depreciation
Less than 12 months	141	67
12 months or longer	129	119
Total	$ 270	$ 186
U.S. government agency | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	15	11
12 months or longer | issue	2	5
Fair Value
Less than 12 months	$ 81,651	$ 64,842
12 months or longer	7,675	19,372
Total	89,326	84,214
Gross Unrealized Depreciation
Less than 12 months	1,232	390
12 months or longer	324	327
Total	$ 1,556	$ 717
Fixed Maturities
Number of Issues
Less than 12 months | issue	241	88
12 months or longer | issue	114	112
Fair Value
Less than 12 months	$ 572,149	$ 232,489
12 months or longer	294,481	302,815
Total	866,630	535,304
Gross Unrealized Depreciation
Less than 12 months	10,271	1,791
12 months or longer	14,400	7,161
Total	$ 24,671	$ 8,952
Fixed Maturities | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	241	162
12 months or longer | issue	114	173
Fair Value
Less than 12 months	$ 572,149	$ 413,380
12 months or longer	294,481	470,440
Total	866,630	883,820
Gross Unrealized Depreciation
Less than 12 months	10,271	3,206
12 months or longer	14,400	13,067
Total	$ 24,671	$ 16,273
Fixed Maturities | Discontinued Operations
Number of Issues
Less than 12 months | issue	0	74
12 months or longer | issue	0	61
Fair Value
Less than 12 months	$ 0	$ 180,891
12 months or longer	0	167,625
Total	0	348,516
Gross Unrealized Depreciation
Less than 12 months	0	1,415
12 months or longer	0	5,906
Total	$ 0	$ 7,321
States, municipalities and political subdivisions | General obligations: | Midwest | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	12	2
12 months or longer | issue	3	3
Fair Value
Less than 12 months	$ 15,917	$ 2,177
12 months or longer	19,209	19,729
Total	35,126	21,906
Gross Unrealized Depreciation
Less than 12 months	144	8
12 months or longer	916	431
Total	$ 1,060	$ 439
States, municipalities and political subdivisions | General obligations: | Northeast | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	4	0
12 months or longer | issue	1	1
Fair Value
Less than 12 months	$ 13,214	$ 0
12 months or longer	3,546	3,644
Total	16,760	3,644
Gross Unrealized Depreciation
Less than 12 months	94	0
12 months or longer	102	10
Total	$ 196	$ 10
States, municipalities and political subdivisions | General obligations: | South | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	18	3
12 months or longer | issue	11	11
Fair Value
Less than 12 months	$ 38,686	$ 7,959
12 months or longer	28,716	29,545
Total	67,402	37,504
Gross Unrealized Depreciation
Less than 12 months	466	32
12 months or longer	1,527	781
Total	$ 1,993	$ 813
States, municipalities and political subdivisions | General obligations: | West | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	13	2
12 months or longer | issue	8	8
Fair Value
Less than 12 months	$ 31,285	$ 5,944
12 months or longer	25,021	25,755
Total	56,306	31,699
Gross Unrealized Depreciation
Less than 12 months	406	18
12 months or longer	1,110	445
Total	$ 1,516	$ 463
States, municipalities and political subdivisions | Special revenue: | Midwest | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	20	2
12 months or longer | issue	7	7
Fair Value
Less than 12 months	$ 37,637	$ 3,486
12 months or longer	18,561	19,130
Total	56,198	22,616
Gross Unrealized Depreciation
Less than 12 months	334	15
12 months or longer	854	336
Total	$ 1,188	$ 351
States, municipalities and political subdivisions | Special revenue: | Northeast | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	4	1
12 months or longer | issue	11	11
Fair Value
Less than 12 months	$ 12,466	$ 4,471
12 months or longer	27,722	28,476
Total	40,188	32,947
Gross Unrealized Depreciation
Less than 12 months	162	37
12 months or longer	1,281	582
Total	$ 1,443	$ 619
States, municipalities and political subdivisions | Special revenue: | South | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	24	8
12 months or longer | issue	27	27
Fair Value
Less than 12 months	$ 50,787	$ 7,749
12 months or longer	67,940	69,917
Total	118,727	77,666
Gross Unrealized Depreciation
Less than 12 months	866	107
12 months or longer	3,538	1,744
Total	$ 4,404	$ 1,851
States, municipalities and political subdivisions | Special revenue: | West | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	16	3
12 months or longer | issue	21	22
Fair Value
Less than 12 months	$ 30,075	$ 5,424
12 months or longer	52,243	56,753
Total	82,318	62,177
Gross Unrealized Depreciation
Less than 12 months	331	16
12 months or longer	2,426	1,182
Total	$ 2,757	$ 1,198
Foreign bonds
Number of Issues
Less than 12 months | issue		1
12 months or longer | issue		0
Fair Value
Less than 12 months		$ 857
12 months or longer		0
Total		857
Gross Unrealized Depreciation
Less than 12 months		49
12 months or longer		0
Total		$ 49
Public utilities | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	13	8
12 months or longer | issue	0	5
Fair Value
Less than 12 months	$ 33,171	$ 19,186
12 months or longer	0	8,446
Total	33,171	27,632
Gross Unrealized Depreciation
Less than 12 months	632	79
12 months or longer	0	191
Total	$ 632	$ 270
Corporate bonds | Energy | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	5	1
12 months or longer | issue	0	1
Fair Value
Less than 12 months	$ 10,567	$ 2,236
12 months or longer	0	1,606
Total	10,567	3,842
Gross Unrealized Depreciation
Less than 12 months	228	13
12 months or longer	0	97
Total	$ 228	$ 110
Corporate bonds | Industrials | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	6	10
12 months or longer | issue	0	2
Fair Value
Less than 12 months	$ 20,349	$ 27,773
12 months or longer	0	4,275
Total	20,349	32,048
Gross Unrealized Depreciation
Less than 12 months	427	146
12 months or longer	0	95
Total	$ 427	$ 241
Corporate bonds | Consumer goods and services | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	5	14
12 months or longer | issue	0	3
Fair Value
Less than 12 months	$ 15,823	$ 32,781
12 months or longer	0	6,813
Total	15,823	39,594
Gross Unrealized Depreciation
Less than 12 months	291	248
12 months or longer	0	246
Total	$ 291	$ 494
Corporate bonds | Health care | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	2	4
12 months or longer | issue	0	0
Fair Value
Less than 12 months	$ 3,694	$ 9,947
12 months or longer	0	0
Total	3,694	9,947
Gross Unrealized Depreciation
Less than 12 months	37	29
12 months or longer	0	0
Total	$ 37	$ 29
Corporate bonds | Technology, media and telecommunications | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	3	12
12 months or longer | issue	0	3
Fair Value
Less than 12 months	$ 9,745	$ 35,319
12 months or longer	0	10,413
Total	9,745	45,732
Gross Unrealized Depreciation
Less than 12 months	265	122
12 months or longer	0	128
Total	$ 265	$ 250
Corporate bonds | Financial services | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	13	22
12 months or longer | issue	1	4
Fair Value
Less than 12 months	$ 34,617	$ 50,144
12 months or longer	5,374	11,389
Total	39,991	61,533
Gross Unrealized Depreciation
Less than 12 months	977	256
12 months or longer	226	186
Total	$ 1,203	$ 442
Mortgage-backed securities | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	16	10
12 months or longer | issue	10	10
Fair Value
Less than 12 months	$ 2,828	$ 2,458
12 months or longer	2,123	6,641
Total	4,951	9,099
Gross Unrealized Depreciation
Less than 12 months	70	18
12 months or longer	82	220
Total	$ 152	$ 238
Government national mortgage association | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	20	20
12 months or longer | issue	6	17
Fair Value
Less than 12 months	$ 47,898	$ 49,764
12 months or longer	12,087	46,969
Total	59,985	96,733
Gross Unrealized Depreciation
Less than 12 months	1,351	629
12 months or longer	735	1,645
Total	$ 2,086	$ 2,274
Federal home loan mortgage corporation | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	13	11
12 months or longer | issue	4	20
Fair Value
Less than 12 months	$ 35,124	$ 37,543
12 months or longer	12,590	75,679
Total	47,714	113,222
Gross Unrealized Depreciation
Less than 12 months	1,050	577
12 months or longer	772	3,470
Total	$ 1,822	$ 4,047
Federal national mortgage association | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	13	11
12 months or longer | issue	1	11
Fair Value
Less than 12 months	$ 33,515	$ 31,958
12 months or longer	6,963	20,123
Total	40,478	52,081
Gross Unrealized Depreciation
Less than 12 months	722	342
12 months or longer	378	832
Total	$ 1,100	$ 1,174
Asset-backed securities | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue	1	1
12 months or longer | issue	0	0
Fair Value
Less than 12 months	$ 2,837	$ 992
12 months or longer	0	0
Total	2,837	992
Gross Unrealized Depreciation
Less than 12 months	45	8
12 months or longer	0	0
Total	$ 45	$ 8
Common stocks | Public utilities | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue		0
12 months or longer | issue		1
Fair Value
Less than 12 months		$ 0
12 months or longer		278
Total		278
Gross Unrealized Depreciation
Less than 12 months		0
12 months or longer		30
Total		$ 30
Common stocks | Energy | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue		2
12 months or longer | issue		0
Fair Value
Less than 12 months		$ 528
12 months or longer		0
Total		528
Gross Unrealized Depreciation
Less than 12 months		120
12 months or longer		0
Total		$ 120
Common stocks | Industrials | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue		1
12 months or longer | issue		5
Fair Value
Less than 12 months		$ 99
12 months or longer		193
Total		292
Gross Unrealized Depreciation
Less than 12 months		13
12 months or longer		107
Total		$ 120
Common stocks | Consumer goods and services | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue		0
12 months or longer | issue		2
Fair Value
Less than 12 months		$ 0
12 months or longer		151
Total		151
Gross Unrealized Depreciation
Less than 12 months		0
12 months or longer		164
Total		$ 164
Common stocks | Technology, media and telecommunications | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue		2
12 months or longer | issue		1
Fair Value
Less than 12 months		$ 466
12 months or longer		4
Total		470
Gross Unrealized Depreciation
Less than 12 months		95
12 months or longer		20
Total		$ 115
Common stocks | Financial services | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue		2
12 months or longer | issue		1
Fair Value
Less than 12 months		$ 193
12 months or longer		9
Total		202
Gross Unrealized Depreciation
Less than 12 months		55
12 months or longer		12
Total		$ 67
Equity securities:
Number of Issues
Less than 12 months | issue		5
12 months or longer | issue		6
Fair Value
Less than 12 months		$ 1,129
12 months or longer		385
Total		1,514
Gross Unrealized Depreciation
Less than 12 months		236
12 months or longer		303
Total		$ 539
Equity securities: | Continuing and Discontinuing Operations
Number of Issues
Less than 12 months | issue		7
12 months or longer | issue		10
Fair Value
Less than 12 months		$ 1,286
12 months or longer		635
Total		1,921
Gross Unrealized Depreciation
Less than 12 months		283
12 months or longer		333
Total		$ 616
Equity securities: | Discontinued Operations
Number of Issues
Less than 12 months | issue		2
12 months or longer | issue		4
Fair Value
Less than 12 months		$ 157
12 months or longer		250
Total		407
Gross Unrealized Depreciation
Less than 12 months		47
12 months or longer		30
Total		$ 77

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Fair Value of Financial Instruments (Narrative) (Details) $ in Thousands	Mar. 31, 2018 USD ($)
Rabbi Trust | Other Assets | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash surrender value	$ 4,404

XML

Fair Value of Financial Instruments (Carrying Value and Estimated Fair Value) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Investments
Held-to-maturity securities	$ 150	$ 150
Available-for-sale, debt securities	1,563,996	1,535,070
Available-for-sale, equity securities		280,913
Trading securities	15,379	16,842
Equity securities	280,362	287,344
Discontinued Operations
Investments
Held-to-maturity securities	0	34
Available-for-sale, debt securities	0	1,430,025
Available-for-sale, equity securities		23,653
Fair Value
Investments
Held-to-maturity securities	150	150
Available-for-sale, debt securities	1,563,996	1,535,070
Trading securities	15,379	16,842
Equity securities	280,362	287,344
Other long-term investments	44,998	49,352
Short-term investments	175	175
Cash and cash equivalents	316,852	95,562
Corporate-owned life insurance	4,404	4,029
Fair Value | Discontinued Operations
Investments
Held-to-maturity securities	0	34
Available-for-sale, debt securities	0	1,430,025
Available-for-sale, equity securities	0	23,653
Mortgage loans	0	3,594
Policy loans	0	5,815
Other long-term investments	0	16,437
Cash and cash equivalents	0	15,851
Policy reserves
Annuity (accumulations)	0	591,702
Annuity (benefit payments)	0	147,038
Carrying Value
Investments
Held-to-maturity securities	150	150
Available-for-sale, debt securities	1,563,996	1,535,070
Trading securities	15,379	16,842
Equity securities	280,362	287,344
Other long-term investments	44,998	49,352
Short-term investments	175	175
Cash and cash equivalents	316,852	95,562
Corporate-owned life insurance	4,404	4,029
Carrying Value | Discontinued Operations
Investments
Held-to-maturity securities	0	34
Available-for-sale, debt securities	0	1,430,025
Available-for-sale, equity securities	0	23,653
Mortgage loans	0	3,435
Policy loans	0	5,815
Other long-term investments	0	16,437
Cash and cash equivalents	0	15,851
Policy reserves
Annuity (accumulations)	0	611,866
Annuity (benefit payments)	$ 0	$ 93,560

XML

Fair Value of Financial Instruments (Financial Instruments Measured at Fair Value) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	$ 1,563,996	$ 1,535,070
Available-for-sale, equity securities		280,913
Trading securities	15,379	16,842
Equity securities	280,362	287,344
Discontinued Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	1,430,025
Available-for-sale, equity securities		23,653
Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	1,563,996	2,965,095
Available-for-sale, equity securities		304,566
Available-for-sale securities, fair value		3,269,661
U.S. Treasury | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	15,726	16,891
U.S. government agency | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	134,429	122,168
States, municipalities and political subdivisions | General obligations: | Midwest | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	105,335	109,696
States, municipalities and political subdivisions | General obligations: | Northeast | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	46,404	48,641
States, municipalities and political subdivisions | General obligations: | South | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	133,719	141,519
States, municipalities and political subdivisions | General obligations: | West | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	112,331	113,011
States, municipalities and political subdivisions | Special revenue: | Midwest | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	144,130	158,744
States, municipalities and political subdivisions | Special revenue: | Northeast | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	63,058	79,760
States, municipalities and political subdivisions | Special revenue: | South | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	248,060	263,512
States, municipalities and political subdivisions | Special revenue: | West | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	148,465	158,307
Foreign bonds | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	10,982	52,753
Public utilities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	47,641	209,144
Corporate bonds | Energy | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	22,445	95,053
Corporate bonds | Industrials | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	32,987	221,707
Corporate bonds | Consumer goods and services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	30,970	186,257
Corporate bonds | Health care | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	12,226	75,408
Corporate bonds | Technology, media and telecommunications | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	15,256	148,979
Corporate bonds | Financial services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	54,512	283,151
Mortgage-backed securities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	8,682	13,691
Government national mortgage association | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	72,194	157,483
Federal home loan mortgage corporation | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	54,829	199,152
Federal national mortgage association | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	46,146	105,432
Asset-backed securities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	3,469	4,636
Common stocks | Public utilities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		22,439
Common stocks | Energy | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		14,565
Common stocks | Industrials | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		66,519
Common stocks | Consumer goods and services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		25,688
Common stocks | Health care | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		40,103
Common stocks | Technology, media and telecommunications | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		17,508
Common stocks | Financial services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		116,447
Nonredeemable preferred stocks | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		1,297
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-Term Investments	175	175
Money Market Accounts	285,804	6,147
Corporate-Owned Life Insurance	4,404	4,029
Recurring | Discontinued Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-Term Investments	0	0
Money Market Accounts	0	10,677
Corporate-Owned Life Insurance	0	0
Recurring | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	1,563,996
Available-for-sale securities, fair value		3,269,661
Trading securities	15,379	23,273
Equity securities	280,362
Short-Term Investments	175	175
Money Market Accounts	285,804	16,824
Corporate-Owned Life Insurance	4,404	4,029
Total Assets Measured at Fair Value	2,150,120	3,313,962
Recurring | U.S. Treasury | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	15,726	16,891
Recurring | U.S. government agency | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	134,429	122,168
Recurring | States, municipalities and political subdivisions | General obligations: | Midwest | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	105,335	109,696
Recurring | States, municipalities and political subdivisions | General obligations: | Northeast | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	46,404	48,641
Recurring | States, municipalities and political subdivisions | General obligations: | South | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	133,719	141,519
Recurring | States, municipalities and political subdivisions | General obligations: | West | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	112,331	113,011
Recurring | States, municipalities and political subdivisions | Special revenue: | Midwest | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	144,130	158,744
Recurring | States, municipalities and political subdivisions | Special revenue: | Northeast | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	63,058	79,760
Recurring | States, municipalities and political subdivisions | Special revenue: | South | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	248,060	263,512
Recurring | States, municipalities and political subdivisions | Special revenue: | West | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	148,465	158,307
Recurring | Foreign bonds | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	10,982	52,753
Recurring | Public utilities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	47,641	209,144
Recurring | Corporate bonds | Energy | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	22,445	95,053
Recurring | Corporate bonds | Industrials | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	32,987	221,707
Trading securities	1,968	2,220
Recurring | Corporate bonds | Consumer goods and services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	30,970	186,257
Trading securities	1,846	1,535
Recurring | Corporate bonds | Health care | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	12,226	75,408
Trading securities	3,739	3,741
Recurring | Corporate bonds | Technology, media and telecommunications | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	15,256	148,979
Trading securities	2,212	1,221
Recurring | Corporate bonds | Financial services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	54,512	283,151
Trading securities	2,133	5,566
Recurring | Mortgage-backed securities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	8,682	13,691
Recurring | Government national mortgage association | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	72,194	157,483
Recurring | Federal home loan mortgage corporation | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	54,829	199,152
Recurring | Federal national mortgage association | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	46,146	105,432
Recurring | Asset-backed securities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	3,469	4,636
Recurring | Fixed Maturities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	1,563,996	1,535,070
Trading securities	15,379	16,842
Recurring | Fixed Maturities | Discontinued Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	1,430,025
Trading securities	0	0
Recurring | Fixed Maturities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities		2,965,095
Recurring | Common stocks | Public utilities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		22,439
Equity securities	15,095
Recurring | Common stocks | Energy | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		14,565
Equity securities	12,782
Recurring | Common stocks | Industrials | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		66,519
Equity securities	58,724
Recurring | Common stocks | Consumer goods and services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		25,688
Equity securities	24,414
Recurring | Common stocks | Health care | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		40,103
Equity securities	39,025
Recurring | Common stocks | Technology, media and telecommunications | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		17,508
Equity securities	14,410
Recurring | Common stocks | Financial services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		116,447
Equity securities	111,761
Recurring | Nonredeemable preferred stocks | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		1,297
Trading securities		2,541
Equity securities	4,151
Recurring | Equity securities:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		280,913
Trading securities		6,431
Equity securities	280,362
Recurring | Equity securities: | Discontinued Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		23,653
Trading securities		0
Equity securities	0
Recurring | Equity securities: | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		304,566
Recurring | Equity securities: | Public utilities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		874
Recurring | Equity securities: | Energy | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		190
Recurring | Equity securities: | Industrials | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		989
Recurring | Equity securities: | Consumer goods and services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		1,314
Recurring | Equity securities: | Health care | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		325
Recurring | Equity securities: | Financial services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		198
Recurring | Redeemable preferred stocks | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities	3,481	2,559
Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-Term Investments	175	175
Money Market Accounts	285,804	6,147
Corporate-Owned Life Insurance	0	0
Recurring | Level 1 | Discontinued Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-Term Investments	0	0
Money Market Accounts	0	10,677
Corporate-Owned Life Insurance	0	0
Recurring | Level 1 | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0
Available-for-sale securities, fair value		303,682
Trading securities	3,481	8,990
Equity securities	279,542
Short-Term Investments	175	175
Money Market Accounts	285,804	16,824
Corporate-Owned Life Insurance	0	0
Total Assets Measured at Fair Value	569,002	329,671
Recurring | Level 1 | U.S. Treasury | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 1 | U.S. government agency | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 1 | States, municipalities and political subdivisions | General obligations: | Midwest | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 1 | States, municipalities and political subdivisions | General obligations: | Northeast | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 1 | States, municipalities and political subdivisions | General obligations: | South | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 1 | States, municipalities and political subdivisions | General obligations: | West | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 1 | States, municipalities and political subdivisions | Special revenue: | Midwest | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 1 | States, municipalities and political subdivisions | Special revenue: | Northeast | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 1 | States, municipalities and political subdivisions | Special revenue: | South | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 1 | States, municipalities and political subdivisions | Special revenue: | West | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 1 | Foreign bonds | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 1 | Public utilities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 1 | Corporate bonds | Energy | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 1 | Corporate bonds | Industrials | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Trading securities	0	0
Recurring | Level 1 | Corporate bonds | Consumer goods and services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Trading securities	0	0
Recurring | Level 1 | Corporate bonds | Health care | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Trading securities	0	0
Recurring | Level 1 | Corporate bonds | Technology, media and telecommunications | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Trading securities	0	0
Recurring | Level 1 | Corporate bonds | Financial services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Trading securities	0	0
Recurring | Level 1 | Mortgage-backed securities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 1 | Government national mortgage association | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 1 | Federal home loan mortgage corporation | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 1 | Federal national mortgage association | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 1 | Asset-backed securities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 1 | Fixed Maturities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Trading securities	3,481	2,559
Recurring | Level 1 | Fixed Maturities | Discontinued Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Trading securities	0	0
Recurring | Level 1 | Fixed Maturities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities		0
Recurring | Level 1 | Common stocks | Public utilities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		22,439
Equity securities	15,095
Recurring | Level 1 | Common stocks | Energy | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		14,565
Equity securities	12,782
Recurring | Level 1 | Common stocks | Industrials | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		66,517
Equity securities	58,724
Recurring | Level 1 | Common stocks | Consumer goods and services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		25,688
Equity securities	24,414
Recurring | Level 1 | Common stocks | Health care | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		40,103
Equity securities	39,025
Recurring | Level 1 | Common stocks | Technology, media and telecommunications | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		17,508
Equity securities	14,410
Recurring | Level 1 | Common stocks | Financial services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		116,447
Equity securities	111,761
Recurring | Level 1 | Nonredeemable preferred stocks | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		415
Trading securities		2,541
Equity securities	3,331
Recurring | Level 1 | Equity securities:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		280,031
Trading securities		6,431
Equity securities	279,542
Recurring | Level 1 | Equity securities: | Discontinued Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		23,651
Trading securities		0
Equity securities	0
Recurring | Level 1 | Equity securities: | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		303,682
Recurring | Level 1 | Equity securities: | Public utilities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		874
Recurring | Level 1 | Equity securities: | Energy | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		190
Recurring | Level 1 | Equity securities: | Industrials | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		989
Recurring | Level 1 | Equity securities: | Consumer goods and services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		1,314
Recurring | Level 1 | Equity securities: | Health care | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		325
Recurring | Level 1 | Equity securities: | Financial services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		198
Recurring | Level 1 | Redeemable preferred stocks | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities	3,481	2,559
Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-Term Investments	0	0
Money Market Accounts	0	0
Corporate-Owned Life Insurance	4,404	4,029
Recurring | Level 2 | Discontinued Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-Term Investments	0	0
Money Market Accounts	0	0
Corporate-Owned Life Insurance	0	0
Recurring | Level 2 | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	1,563,264
Available-for-sale securities, fair value		2,956,105
Trading securities	11,898	14,283
Equity securities	0
Short-Term Investments	0	0
Money Market Accounts	0	0
Corporate-Owned Life Insurance	4,404	4,029
Total Assets Measured at Fair Value	1,579,566	2,974,417
Recurring | Level 2 | U.S. Treasury | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	15,726	16,891
Recurring | Level 2 | U.S. government agency | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	134,429	122,168
Recurring | Level 2 | States, municipalities and political subdivisions | General obligations: | Midwest | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	105,335	109,696
Recurring | Level 2 | States, municipalities and political subdivisions | General obligations: | Northeast | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	46,404	48,641
Recurring | Level 2 | States, municipalities and political subdivisions | General obligations: | South | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	133,719	141,519
Recurring | Level 2 | States, municipalities and political subdivisions | General obligations: | West | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	112,331	113,011
Recurring | Level 2 | States, municipalities and political subdivisions | Special revenue: | Midwest | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	144,130	158,744
Recurring | Level 2 | States, municipalities and political subdivisions | Special revenue: | Northeast | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	63,058	79,760
Recurring | Level 2 | States, municipalities and political subdivisions | Special revenue: | South | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	248,060	263,512
Recurring | Level 2 | States, municipalities and political subdivisions | Special revenue: | West | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	148,465	158,307
Recurring | Level 2 | Foreign bonds | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	10,982	52,753
Recurring | Level 2 | Public utilities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	47,641	209,144
Recurring | Level 2 | Corporate bonds | Energy | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	22,445	95,053
Recurring | Level 2 | Corporate bonds | Industrials | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	32,987	221,707
Trading securities	1,968	2,220
Recurring | Level 2 | Corporate bonds | Consumer goods and services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	30,970	185,589
Trading securities	1,846	1,535
Recurring | Level 2 | Corporate bonds | Health care | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	12,226	75,408
Trading securities	3,739	3,741
Recurring | Level 2 | Corporate bonds | Technology, media and telecommunications | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	15,256	148,979
Trading securities	2,212	1,221
Recurring | Level 2 | Corporate bonds | Financial services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	54,412	275,474
Trading securities	2,133	5,566
Recurring | Level 2 | Mortgage-backed securities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	8,682	13,691
Recurring | Level 2 | Government national mortgage association | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	72,194	157,483
Recurring | Level 2 | Federal home loan mortgage corporation | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	54,829	199,152
Recurring | Level 2 | Federal national mortgage association | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	46,146	105,432
Recurring | Level 2 | Asset-backed securities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	2,837	3,989
Recurring | Level 2 | Fixed Maturities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	1,563,264	1,534,323
Trading securities	11,898	14,283
Recurring | Level 2 | Fixed Maturities | Discontinued Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	1,421,780
Trading securities	0	0
Recurring | Level 2 | Fixed Maturities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities		2,956,103
Recurring | Level 2 | Common stocks | Public utilities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		0
Equity securities	0
Recurring | Level 2 | Common stocks | Energy | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		0
Equity securities	0
Recurring | Level 2 | Common stocks | Industrials | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		2
Equity securities	0
Recurring | Level 2 | Common stocks | Consumer goods and services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		0
Equity securities	0
Recurring | Level 2 | Common stocks | Health care | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		0
Equity securities	0
Recurring | Level 2 | Common stocks | Technology, media and telecommunications | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		0
Equity securities	0
Recurring | Level 2 | Common stocks | Financial services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		0
Equity securities	0
Recurring | Level 2 | Nonredeemable preferred stocks | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		0
Trading securities		0
Equity securities	0
Recurring | Level 2 | Equity securities:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		0
Trading securities		0
Equity securities	0
Recurring | Level 2 | Equity securities: | Discontinued Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		2
Trading securities		0
Equity securities	0
Recurring | Level 2 | Equity securities: | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		2
Recurring | Level 2 | Equity securities: | Public utilities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		0
Recurring | Level 2 | Equity securities: | Energy | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		0
Recurring | Level 2 | Equity securities: | Industrials | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		0
Recurring | Level 2 | Equity securities: | Consumer goods and services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		0
Recurring | Level 2 | Equity securities: | Health care | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		0
Recurring | Level 2 | Equity securities: | Financial services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		0
Recurring | Level 2 | Redeemable preferred stocks | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities	0	0
Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-Term Investments	0	0
Money Market Accounts	0	0
Corporate-Owned Life Insurance	0	0
Recurring | Level 3 | Discontinued Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-Term Investments	0	0
Money Market Accounts	0	0
Corporate-Owned Life Insurance	0	0
Recurring | Level 3 | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	732
Available-for-sale securities, fair value		9,874
Trading securities	0	0
Equity securities	820
Short-Term Investments	0	0
Money Market Accounts	0	0
Corporate-Owned Life Insurance	0	0
Total Assets Measured at Fair Value	1,552	9,874
Recurring | Level 3 | U.S. Treasury | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 3 | U.S. government agency | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 3 | States, municipalities and political subdivisions | General obligations: | Midwest | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 3 | States, municipalities and political subdivisions | General obligations: | Northeast | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 3 | States, municipalities and political subdivisions | General obligations: | South | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 3 | States, municipalities and political subdivisions | General obligations: | West | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 3 | States, municipalities and political subdivisions | Special revenue: | Midwest | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 3 | States, municipalities and political subdivisions | Special revenue: | Northeast | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 3 | States, municipalities and political subdivisions | Special revenue: | South | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 3 | States, municipalities and political subdivisions | Special revenue: | West | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 3 | Foreign bonds | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 3 | Public utilities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 3 | Corporate bonds | Energy | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 3 | Corporate bonds | Industrials | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Trading securities	0	0
Recurring | Level 3 | Corporate bonds | Consumer goods and services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	668
Trading securities	0	0
Recurring | Level 3 | Corporate bonds | Health care | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Trading securities	0	0
Recurring | Level 3 | Corporate bonds | Technology, media and telecommunications | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Trading securities	0	0
Recurring | Level 3 | Corporate bonds | Financial services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	100	7,677
Trading securities	0	0
Recurring | Level 3 | Mortgage-backed securities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 3 | Government national mortgage association | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 3 | Federal home loan mortgage corporation | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 3 | Federal national mortgage association | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	0
Recurring | Level 3 | Asset-backed securities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	632	647
Recurring | Level 3 | Fixed Maturities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	732	747
Trading securities	0	0
Recurring | Level 3 | Fixed Maturities | Discontinued Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities	0	8,245
Trading securities	0	0
Recurring | Level 3 | Fixed Maturities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, debt securities		8,992
Recurring | Level 3 | Common stocks | Public utilities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		0
Equity securities	0
Recurring | Level 3 | Common stocks | Energy | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		0
Equity securities	0
Recurring | Level 3 | Common stocks | Industrials | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		0
Equity securities	0
Recurring | Level 3 | Common stocks | Consumer goods and services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		0
Equity securities	0
Recurring | Level 3 | Common stocks | Health care | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		0
Equity securities	0
Recurring | Level 3 | Common stocks | Technology, media and telecommunications | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		0
Equity securities	0
Recurring | Level 3 | Common stocks | Financial services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		0
Equity securities	0
Recurring | Level 3 | Nonredeemable preferred stocks | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		882
Trading securities		0
Equity securities	820
Recurring | Level 3 | Equity securities:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		882
Trading securities		0
Equity securities	820
Recurring | Level 3 | Equity securities: | Discontinued Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		0
Trading securities		0
Equity securities	0
Recurring | Level 3 | Equity securities: | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale, equity securities		882
Recurring | Level 3 | Equity securities: | Public utilities | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		0
Recurring | Level 3 | Equity securities: | Energy | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		0
Recurring | Level 3 | Equity securities: | Industrials | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		0
Recurring | Level 3 | Equity securities: | Consumer goods and services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		0
Recurring | Level 3 | Equity securities: | Health care | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		0
Recurring | Level 3 | Equity securities: | Financial services | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		0
Recurring | Level 3 | Redeemable preferred stocks | Continuing and Discontinuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities	$ 0	$ 0

XML

Fair Value of Financial Instruments (Level 3 Securities) (Details) - Recurring $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	$ 1,629
Net unrealized gains (losses)	(77)
Ending Balance	1,552
States, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	0
Net unrealized gains (losses)	0
Ending Balance	0
Corporate bonds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	100
Net unrealized gains (losses)
Ending Balance	100
Asset-backed securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	647
Net unrealized gains (losses)	(15)
Ending Balance	632
Equities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	882
Net unrealized gains (losses)	(62)
Ending Balance	$ 820

XML

Reserves for Losses and Loss Settlement Expenses (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Insurance Loss Reserves [Abstract]
Gross liability for losses and loss settlement expenses at beginning of year	$ 1,224,183	$ 1,123,896
Ceded losses and loss settlement expenses	(59,871)	(59,794)
Net liability for losses and loss settlement expenses at beginning of year	1,164,312	1,064,102
Losses and loss settlement expenses incurred for claims occurring during
Current year	182,783	779,966
Prior years	(38,055)	(54,253)
Total incurred	144,728	725,713
Losses and loss settlement expense payments for claims occurring during
Current year	44,734	311,972
Prior years	104,319	313,531
Total paid	149,053	625,503
Net liability for losses and loss settlement expenses at end of year	1,159,987	1,164,312
Ceded loss and loss settlement expenses	59,994	59,871
Gross liability for losses and loss settlement expenses at end of period	$ 1,219,981	$ 1,224,183

XML

Employee Benefits (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Pension Plan
Net periodic benefit cost
Service cost	$ 2,175	$ 1,714
Interest cost	1,875	1,765
Expected return on plan assets	(2,625)	(2,412)
Amortization of prior service credit	0	0
Amortization of net loss	1,071	890
Net periodic benefit cost	2,496	1,957
Estimated 2018 pension plan contribution, disclosed in prior year 10K			$ 6,400
Contribution by employer	1,600
Postretirement Benefit Plan
Net periodic benefit cost
Service cost	749	505
Interest cost	502	482
Expected return on plan assets	0	0
Amortization of prior service credit	(1,352)	(1,352)
Amortization of net loss	589	461
Net periodic benefit cost	$ 488	$ 96

XML

Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		111 Months Ended
	May 31, 2014	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2008	Dec. 31, 2004
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 1,281	$ 1,044
Stock-based compensation expense to be recognized through results of operations		$ 10,458		$ 10,458
Employee Stock Award Plan-2008
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for issuance (in shares)		855,781		855,781	996,828	1,900,000
Additional shares authorized (in shares)	1,500,000	0		1,500,000
Employee Stock Award Plan-2008 | Restricted Stock Awards | Share-based Compensation Award, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
Employee Stock Award Plan-2008 | Restricted Stock Awards | Share-based Compensation Award, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		5 years
Employee Stock Award Plan-2008 | Options Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period		10 years
Director Plan - 2005
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for issuance (in shares)		61,813		61,813	61,813		300,000

XML

Stock-Based Compensation (Activity in the Stock Plan) (Details) - shares	1 Months Ended	3 Months Ended	111 Months Ended	159 Months Ended
	May 31, 2014	Mar. 31, 2018	Mar. 31, 2018	Mar. 31, 2018
Employee Stock Award Plan-2008
Authorized Shares Available for Future Award Grants
Beginning balance (in shares)		996,828	1,900,000
Additional shares authorized (in shares)	1,500,000	0	1,500,000
Number of awards granted (in shares)		(153,209)	(3,025,180)
Number of awards forfeited or expired (in shares)		12,162	480,961
Ending balance (in shares)		855,781	855,781	855,781
Employee Stock Award Plan-2008 | Options Awards
Authorized Shares Available for Future Award Grants
Number of option awards exercised (in shares)		89,057	1,174,952
Employee Stock Award Plan-2008 | Unrestricted Stock Awards
Authorized Shares Available for Future Award Grants
Number of awards granted (in shares)		0	(8,470)
Employee Stock Award Plan-2008 | Restricted Stock Awards
Authorized Shares Available for Future Award Grants
Number of restricted stock awards vested (in shares)		19,658	57,826
Director Plan - 2005
Authorized Shares Available for Future Award Grants
Beginning balance (in shares)		61,813		300,000
Number of awards granted (in shares)		0		(262,190)
Number of awards forfeited or expired (in shares)		0		24,003
Ending balance (in shares)		61,813	61,813	61,813
Director Plan - 2005 | Options Awards
Authorized Shares Available for Future Award Grants
Number of option awards exercised (in shares)		7,599		96,880
Number of restricted stock awards vested (in shares)		0		54,272

XML

Stock-Based Compensation (Stock-based Compensation Expense) (Details) $ in Thousands	Mar. 31, 2018 USD ($)
Share-based Compensation [Abstract]
2018	$ 3,614
2019	3,856
2020	2,397
2021	552
2022	39
Total	$ 10,458

XML

Segment Information (Details)		3 Months Ended
	Sep. 17, 2017 segment	Mar. 31, 2018 segment location
Segment Reporting Information [Line Items]
Number of business segments | segment	2	1
Property and Casualty Insurance
Segment Reporting Information [Line Items]
Number of domestic locations | location		6

XML

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Basic and Diluted Earnings per Share [Line Items]
Net income from continuing operations	$ 20,364	$ 18,584
Weighted-average common shares outstanding (in shares)	24,915,772	25,443,101
Weighted-average common shares for EPS calculation (in shares)	25,458,090	25,854,181
Earnings (loss) per common share from continuing operations, basic (in dollars per share)	$ 0.82	$ 0.73
Earnings (loss) per common share from continuing operations, diluted (in dollars per share)	0.80	0.72
Earnings per common share from discontinued operations, basic (in dollars per share)	(0.08)	0.05
Earnings per common share from discontinued operations, diluted (in dollars per share)	(0.07)	0.05
Gain on sale of discontinued operations, net of taxes, basic (in dollars per share)	1.10	0.00
Gain on sale of discontinued operations, net of taxes, diluted (in dollars per share)	1.07	0.00
Earnings (loss) per common share, basic (in dollars per share)	1.84	0.78
Earnings (loss) per common share, diluted (in dollars per share)	$ 1.80	$ 0.77
Awards excluded from diluted earnings per share calculation (in shares)	0	0
Restricted Stock Unit Awards
Basic and Diluted Earnings per Share [Line Items]
Add dilutive effect of share-based awards outstanding (in shares)	290,083	248,717
Stock Options
Basic and Diluted Earnings per Share [Line Items]
Add dilutive effect of share-based awards outstanding (in shares)	252,235	162,363

XML

Credit Facility (Details)		3 Months Ended
	Feb. 02, 2016 USD ($)	Mar. 31, 2018 USD ($)	Mar. 31, 2017 USD ($)
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 100,000,000
Debt covenant, maximum debt to total capitalization ratio	0.35
Outstanding balance on credit facility		$ 0	$ 0
Interest expense incurred		$ 0	$ 0
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 50,000,000
Credit agreement term	4 years
Letter of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 20,000,000
Swing Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 5,000,000

XML

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of year	$ 973,373
Cumulative effect of change in accounting principle		$ (191,244)	$ 0
Change in accumulated other comprehensive income before reclassifications	(34,219)
Reclassification adjustments from accumulated other comprehensive income (loss)	1,282
Balance, end of period	970,693
Net unrealized appreciation on investments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of year	214,865
Cumulative effect of change in accounting principle		(191,244)
Change in accumulated other comprehensive income before reclassifications	(34,219)
Reclassification adjustments from accumulated other comprehensive income (loss)	(29)
Balance, end of period	(10,627)
Liability for underfunded employee benefit costs
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of year	(46,551)
Cumulative effect of change in accounting principle		0
Change in accumulated other comprehensive income before reclassifications	0
Reclassification adjustments from accumulated other comprehensive income (loss)	1,311
Balance, end of period	(45,240)
Total
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of year	168,314
Cumulative effect of change in accounting principle		$ (191,244)
Balance, end of period	$ (55,867)

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Discontinued Operations Narrative (Details) - USD ($) $ in Thousands			3 Months Ended
	Mar. 30, 2018	Sep. 18, 2017	Mar. 31, 2018	Mar. 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of discontinued operations, net of taxes			$ 27,307	$ 0
United Life | Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal group, cash consideration	$ 280,000
Disposal group, adjustment to consideration	21
Proceeds from disposal of subsidiary	279,979
Gain on sale of discontinued operations, net of taxes	$ 27,307
Transition services agreement duration		24 months

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Discontinued Operations Balance Sheets (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fixed maturities
Total assets held for sale	$ 0	$ 1,586,134
Liabilities
Total liabilities held for sale	0	1,347,135
United Life | Discontinued Operations, Disposed of by Sale
Fixed maturities
Held-to-maturity, at amortized cost (fair value $0 in 2018 and $34 in 2017)	0	34
Fixed maturities, held-to-maturity securities, fair value	0	34
Available-for-sale, at fair value (amortized cost $0 in 2018 and $1,412,291 in 2017)	0	1,430,025
Fixed maturities, available-for-sale securities, amortized cost	0	1,412,291
Equity Securities at fair value (cost $0 in 2018 and $5,099 in 2017)	0	23,653
Equity securities, amortized cost	0	5,099
Mortgage loans	0	3,435
Policy loans	0	5,815
Other long-term investments	0	16,437
Total investments	0	1,479,399
Cash and cash equivalents	0	15,851
Deferred policy acquisition costs	0	71,151
Other assets	0	19,733
Total assets held for sale	0	1,586,134
Liabilities
Future policy benefits and losses	0	1,320,401
Deferred income taxes	0	18,716
Accrued expenses and other liabilities	0	8,018
Total liabilities held for sale	$ 0	$ 1,347,135

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Discontinued Operations Statements of Income (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Benefits, Losses and Expenses
Income from discontinued operations, net of taxes	$ (1,912)	$ 1,352
Earnings per common share from discontinued operations:
Basic (in dollars per share)	$ (0.08)	$ 0.05
Diluted (in dollars per share)	$ (0.07)	$ 0.05
United Life | Discontinued Operations, Disposed of by Sale
Revenues
Net premiums earned	$ 13,003	$ 17,428
Investment income, net of investment expenses	12,663	12,450
Net realized investment gains (losses)	(1,057)	1,705
Other income	146	198
Total revenues	24,755	31,781
Benefits, Losses and Expenses
Losses and loss settlement expenses	10,823	11,071
Increase in liability for future policy benefits	5,023	8,579
Amortization of deferred policy acquisition costs	1,895	1,673
Other underwriting expenses	3,864	3,631
Interest on policyholders’ accounts	4,499	4,744
Total benefits, losses and expenses	26,104	29,698
Income (loss) from discontinued operations before income taxes	(1,349)	2,083
Federal income tax expense	563	731
Income from discontinued operations, net of taxes	$ (1,912)	$ 1,352
Earnings per common share from discontinued operations:
Basic (in dollars per share)	$ (0.08)	$ 0.05
Diluted (in dollars per share)	$ (0.07)	$ 0.05