Fair Values (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value, by Balance Sheet Grouping [Table Text Block]



Fair Values and Carrying Values

	June 30, 2015				December 31, 2014
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(Dollars in thousands)
Assets
Fixed maturities - available for sale	$	6,625,828	$	6,625,828	$	6,700,698	$	6,700,698
Equity securities - available for sale	121,759		121,759		112,623		112,623
Mortgage loans	689,048		724,019		629,296		667,913
Policy loans	183,656		227,635		182,502		230,070
Other investments	3,103		3,103		3,558		3,558
Cash, cash equivalents and short-term investments	81,259		81,259		125,217		125,217
Reinsurance recoverable	3,347		3,347		3,562		3,562
Assets held in separate accounts	676,045		676,045		683,033		683,033



Liabilities
Future policy benefits	$	3,679,717	$	3,645,165	$	3,563,558	$	3,666,960
Supplemental contracts without life contingencies	340,017		312,669		341,955		329,651
Advance premiums and other deposits	249,168		249,168		239,700		239,700
Long-term debt	97,000		71,547		97,000		69,772
Other liabilities	164		164		173		173
Liabilities related to separate accounts	676,045		670,691		683,033		677,040

Valuation of our Financial Instruments Measured on Recurring Basis by hierarchy levels [Table Text Block]



Valuation of our Financial Instruments Measured on a Recurring Basis by Hierarchy Levels

	June 30, 2015
	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
	(Dollars in thousands)
Assets
Corporate securities	$	—	$	3,518,446	$	74,445	$	3,592,891
Residential mortgage-backed securities	—		463,671		15,392		479,063
Commercial mortgage-backed securities	—		448,813		77,010		525,823
Other asset-backed securities	—		486,161		94,015		580,176
United States Government and agencies	15,832		16,541		8,803		41,176
State, municipal and other governments	—		1,406,699		—		1,406,699
Non-redeemable preferred stocks	—		82,666		7,754		90,420
Common stocks	4,643		26,696		—		31,339
Other investments	—		3,103		—		3,103
Cash, cash equivalents and short-term investments	81,259		—		—		81,259
Reinsurance recoverable	—		3,347		—		3,347
Assets held in separate accounts	676,045		—		—		676,045
Total assets	$	777,779	$	6,456,143	$	277,419	$	7,511,341

Liabilities
Future policy benefits - index annuity embedded derivatives	$	—	$	—	$	8,488	$	8,488
Other liabilities	—		164		—		164
Total liabilities	$	—	$	164	$	8,488	$	8,652



	December 31, 2014
	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
	(Dollars in thousands)
Assets
Corporate securities	$	—	$	3,602,667	$	64,239	$	3,666,906
Residential mortgage-backed securities	—		491,534		—		491,534
Commercial mortgage-backed securities	—		452,804		77,891		530,695
Other asset-backed securities	—		405,120		116,141		521,261
United States Government and agencies	15,170		18,569		9,065		42,804
State, municipal and other governments	—		1,447,498		—		1,447,498
Non-redeemable preferred stocks	—		76,987		8,054		85,041
Common stocks	3,501		24,081		—		27,582
Other investments	—		3,558		—		3,558
Cash, cash equivalents and short-term investments	125,217		—		—		125,217
Reinsurance recoverable	—		3,562		—		3,562
Assets held in separate accounts	683,033		—		—		683,033
Total assets	$	826,921	$	6,526,380	$	275,390	$	7,628,691

Liabilities
Future policy benefits - index annuity embedded derivatives	$	—	$	—	$	8,681	$	8,681
Other liabilities	—		173		—		173
Total liabilities	$	—	$	173	$	8,681	$	8,854

Level 3 fixed maturities on Measurement on Recurring Basis by Valuation Technique [Table Text Block]



Level 3 Fixed Maturities by Valuation Source - Recurring Basis

	June 30, 2015
	Third-party vendors			Priced internally			Total
	(Dollars in thousands)
Corporate securities	$	43,618		$	30,827		$	74,445
Residential mortgage-backed securities	15,392			—			15,392
Commercial mortgage-backed securities	77,010			—			77,010
Other asset-backed securities	73,278			20,737			94,015
United States Government and agencies	—			8,803			8,803
Total	$	209,298		$	60,367		$	269,665
Percent of total	77.6		%	22.4		%	100.0		%



	December 31, 2014
	Third-party vendors			Priced internally			Total
	(Dollars in thousands)
Corporate securities	$	40,095		$	24,144		$	64,239
Commercial mortgage-backed securities	77,891			—			77,891
Other asset-backed securities	95,271			20,870			116,141
United States Government and agencies	—			9,065			9,065
Total	$	213,257		$	54,079		$	267,336
Percent of total	79.8		%	20.2		%	100.0		%

Quantitative Information about Level 3 Fair Value Measurement Inputs [Text Block]



Quantitative Information about Level 3 Fair Value Measurements - Recurring Basis

	June 30, 2015
	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
	(Dollars in thousands)
Assets
Corporate securities	$	46,902	Discounted cash flow	Credit spread	0.99% - 8.61% (5.82%)
Commercial mortgage-backed	74,079		Discounted cash flow	Credit spread	1.70% - 3.75% (2.91%)
Other asset-backed securities	14,097		Discounted cash flow	Credit spread	1.08% - 5.98% (4.28%)
United States Government and agencies	8,803		Discounted cash flow	Credit spread	2.05% (2.05%)
Non-redeemable preferred stocks	7,754		Discounted cash flow	Credit spread	3.65% (3.65%)
Total Assets	$	151,635

Liabilities
Future policy benefits - index annuity embedded derivatives	$	8,488	Discounted cash flow	Credit risk Risk margin	0.80% - 2.05% (1.35%) 0.15% - 0.40% (0.25%)



Quantitative Information about Level 3 Fair Value Measurements - Recurring Basis

	December 31, 2014
	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
	(Dollars in thousands)
Assets
Corporate securities	$	41,491	Discounted cash flow	Credit spread	0.95% - 6.80% (4.92%)
Commercial mortgage-backed	77,891		Discounted cash flow	Credit spread	1.75% - 4.00% (2.89%)
Other asset-backed securities	26,937		Discounted cash flow	Credit spread	0.96% - 6.17% (4.31%)
United States Government and agencies	9,065		Discounted cash flow	Credit spread	1.80% (1.80%)
Non-redeemable preferred stocks	8,054		Discounted cash flow	Credit spread	3.34% (3.34%)
Total Assets	$	163,438

Liabilities
Future policy benefits - index annuity embedded derivatives	$	8,681	Discounted cash flow	Credit risk Risk margin	0.70% - 1.70% (1.10%) 0.15% - 0.40% (0.25%)

The tables above exclude certain securities for which the fair value was based on non-binding broker quotes where we could not reasonably obtain the quantitative unobservable inputs.

Level 3 Financial Instruments Changes in Fair Value [Table Text Block]



Level 3 Financial Instruments Changes in Fair Value - Recurring Basis

	June 30, 2015
								Realized and unrealized gains (losses), net
	Balance, December 31, 2014		Purchases		Disposals			Included in net income			Included in other compre-hensive income			Transfers into Level 3 (1)		Transfers out of Level 3 (1)			Amort-ization included in net income		Balance, June 30, 2015
	(Dollars in thousands)
Assets
Corporate securities	$	64,239	$	8,993	$	(8,008	)	$	—		$	(4,022	)	$	18,451	$	(5,302	)	$	94	$	74,445
Residential mortgage-backed securities	—		19,354		—			—			93			—		(4,055		)	—		15,392
Commercial mortgage-backed securities	77,891		3,126		(397		)	—			(3,660		)	—		—			50		77,010
Other asset-backed securities	116,141		37,290		(6,397		)	—			(253		)	—		(52,874		)	108		94,015
United States Government and agencies	9,065		—		—			—			(265		)	—		—			3		8,803
Non-redeemable preferred stocks	8,054		—		—			—			(300		)	—		—			—		7,754
Total Assets	$	275,390	$	68,763	$	(14,802	)	$	—		$	(8,407	)	$	18,451	$	(62,231	)	$	255	$	277,419

Liabilities
Future policy benefits - index annuity embedded derivatives	$	8,681	$	2,065	$	(435	)	$	(1,823	)	$	—		$	—	$	—		$	—	$	8,488
Total Liabilities	$	8,681	$	2,065	$	(435	)	$	(1,823	)	$	—		$	—	$	—		$	—	$	8,488



Level 3 Financial Instruments Changes in Fair Value - Recurring Basis

	June 30, 2014
								Realized and unrealized gains (losses), net
	Balance, December 31, 2013		Purchases		Disposals			Included in net income		Included in other compre-hensive income			Transfers into Level 3 (1)		Transfers out of Level 3 (1)			Amort-ization included in net income			Balance, June 30, 2014
	(Dollars in thousands)
Assets
Corporate securities	$	81,994	$	234	$	(9,342	)	$	—	$	521		$	13,623	$	(10,299	)	$	(16	)	$	76,715
Commercial mortgage-backed securities	71,712		—		(341		)	—		3,630			—		—			45			75,046
Other asset-backed securities	85,835		22,961		(7,567		)	—		(1		)	1,974		(14,107		)	540			89,635
United States Government and agencies	8,044		—		—			—		150			—		—			3			8,197
Non-redeemable preferred stocks	7,795		—		—			—		390			—		—			—			8,185
Total Assets	$	255,380	$	23,195	$	(17,250	)	$	—	$	4,690		$	15,597	$	(24,406	)	$	572		$	257,778

Liabilities
Future policy benefits - index annuity embedded derivatives	$	286	$	644	$	(13	)	$	14	$	—		$	—	$	—		$	—		$	931
Total Liabilities	$	286	$	644	$	(13	)	$	14	$	—		$	—	$	—		$	—		$	931

(1)

Transfers into Level 3 represent assets previously priced using an external pricing service with access to observable inputs no longer available and therefore, were priced using non-binding broker quotes. Transfers out of Level 3 include those assets that we are now able to obtain pricing from a third party pricing vendor that uses observable inputs. The fair values of newly issued securities often require additional estimation until a market is created, generally within a few months after issuance. Once a market is created, as was the case for the majority of the security transfers out of the Level 3 category above, Level 2 valuation sources become available. There were no transfers between Level 1 and Level 2 during the periods presented above.

Financial Instruments Not Reported at Value [Table Text Block]



Valuation of our Financial Instruments Not Reported at Fair Value by Hierarchy Levels

	June 30, 2015
	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
	(Dollars in thousands)
Assets
Mortgage loans	$	—	$	—	$	724,019	$	724,019
Policy loans	—		—		227,635		227,635
Total assets	$	—	$	—	$	951,654	$	951,654

Liabilities
Future policy benefits	$	—	$	—	$	3,636,677	$	3,636,677
Supplemental contracts without life contingencies	—		—		312,669		312,669
Advance premiums and other deposits	—		—		249,168		249,168
Long-term debt	—		—		71,547		71,547
Liabilities related to separate accounts	—		—		670,691		670,691
Total liabilities	$	—	$	—	$	4,940,752	$	4,940,752



Valuation of our Financial Instruments Not Reported at Fair Value by Hierarchy Levels

	December 31, 2014
	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
	(Dollars in thousands)
Assets
Mortgage loans	$	—	$	—	$	667,913	$	667,913
Policy loans	—		—		230,070		230,070
Total assets	$	—	$	—	$	897,983	$	897,983

Liabilities
Future policy benefits	$	—	$	—	$	3,658,279	$	3,658,279
Supplemental contracts without life contingencies	—		—		329,651		329,651
Advance premiums and other deposits	—		—		239,700		239,700
Long-term debt	—		—		69,772		69,772
Liabilities related to separate accounts	—		—		677,040		677,040
Total liabilities	$	—	$	—	$	4,974,442	$	4,974,442